RATING
S&P Global Ratings (“S&P”) has assigned its rating of “___” to all of the 2022A Bonds. Such rating reflects only the view of S&P. Any explanation of the significance of such rating may only be obtained from S&P. The information set forth on such website is not incorporated by reference herein.
Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that such rating will continue for any given period of time or that any of them will not be revised downward or withdrawn entirely by the rating agency, if in the judgment of the rating agency circumstances so warrant. Any such downward revision, suspension or withdrawal of such rating may have an adverse effect on the market price of the 2022A Bonds.
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42 UNDERWRITING
Raymond James & Associates, Inc. (the “Underwriter”) has agreed, subject to certain customary conditions precedent to closing, to purchase the 2022A Bonds from the Authority at a price eq ual to $__________ (which equals the principal amount of the 2022A Bonds, less an underwriting discount of $__________).
The Underwriter intends to offer the 2022A Bonds to the public initially at the prices set forth on the inside cover page of this Offi cial Statement, plus accrued interest from the dated date of the 2022A Bonds to their date of delivery, which prices may subsequently change without any requirement of prior notice. The Underwriter reserves the right to join with dealers and other underwriters in offering the 2022A Bonds to the public. In connection with the offering of the 2022A Bonds, the Underwriter may over allot or effect transactions that stabilize or maintain the market price of the 2022A Bonds at levels above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time.
CONTINUING DISCLOSURE
The Authority has determined that no financial or operating data concerning the Authority is material to any decision to purchase, hold or sell the 2022A Bonds and the Authority will not provide any such information.
The City has covenanted for the benefit of the holders and beneficial owners of the 2022A Bonds pursuant to a Continuing Disclosure Agreement, dated the date of issuance of the 2022A Bonds (the “Continuing Disclosure Agreement”), by and between the City and ____________, as dissemination agent, to provide certain financial information and operating data relating to the City (the “Annual Re port”) no later than March 31 following the end of each fiscal year, commencing with the report for Fiscal Year 2021- 22, and to provide notices of the occurrence of certain enumerated events through the EMMA System. The specific nature of the information to be contained in the Annual Report and the enumerated events is set forth in APPENDIX D – “FORM OF CONTINUING DISCLOSURE AGREEMENT.”
TAX MATTERS
State Income Tax
In the opinion of Bond Counsel, under existing law interest on the 2022A Bonds is exempt from personal income taxes of the State. Except as stated in the immediately preceding sentence, Bond Counsel will express no opinion as to any federal or state t ax consequence of the receipt of interest on, or the ownership or disposition of, the 2022A Bonds. A copy of the form of opinion of Bond Counsel relating to the 2022A Bonds is included in Appendix E.
Federal Income Tax Considerations
The following is a ge neral summary of certain United States federal income tax consequences of the purchase and ownership of the 2022A Bonds. The discussion is based upon the laws, Treasury Regulations, rulings and decisions now in effect, all of which are subject to change (p ossibly, with retroactive effect) or possibly differing interpretations. No assurances can be given that future changes in the law will not alter the conclusions reached herein.
The discussion below does not purport to deal with United States federal income tax consequences applicable to all categories of investors. Further, the discussion below does not discuss all aspects of federal income taxation that may be relevant to a particular investor in the 2022A Bonds in light of the investor’s particular circumstances or to certain types of investors subject to special treatment under federal income tax laws (including insurance companies, tax exempt organizations, financial institutions, broker -dealers,
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43 and persons who have hedged the risk of owning the 2022A Bonds). The discussion below is limited to certain issues relating to initial investors who will hold the 2022A Bonds as “capital assets” within the meaning of section 1221 of the Internal Revenue Code of 1986, as amended (the “Code”), and acquire such 2022A Bonds for investment and not as a dealer or fo r resale. The discussion below addresses certain federal income tax consequences applicable to beneficial owners of the 2022A Bonds who are United States persons within the meaning of section 7701(a)(30) o f the Code (“United States persons”) and, except as discussed below, does not address any consequence to persons other than United States persons.
Prospective investors should note that no rulings have been or will be sought from the Internal Revenue Service (the “IRS”) with respect to any of the United States federal income tax consequences discussed below, and no assurance can be given that the IRS will not take contrary positions.
ALL PROSPECTIVE INVESTORS SHOULD CONSULT THEIR OWN TAX ADVISORS IN
DETERMINING THE FEDERAL, STATE, LOCAL, FOREIGN AND ANY OTHER TAX
CONSEQUENCES TO THEM FROM THE PURCHASE, OWNERSHIP AND DISPOSITION OF THE 2022A BONDS.
Stated Interest on the 2022A Bonds. The stated interest on the 2022A Bonds will be included in the gross income, as defined in section 61 of the Code, of the beneficial owners thereof and will be subject to United States federal income taxation when received or accrued, depending on the tax accounting method applicable to the beneficial owners thereof.
Medicare Contribution Tax. Pursuant to Section 1411 of the Code, as enacted by the Health Care and Education Reconciliation Act of 2010, an additional tax is imposed on individuals beginning January 1, 2013. The additional tax is 3.8% of the lesser of (i) net investment income (defined as gross income from interest, dividends, net gain from disposition of property not used in a trade or business, and certain other listed items of gross income), or (ii) the excess of “modified adjusted gross income” of the individual over $200,000 for unmarried individuals ($250,000 for married couples filing a joint return and a surviving spouse). Holders of the 2022A Bonds should consult with their own tax advisors concerning this additional tax, as it may apply to interest earned on the 2022A Bonds as well as gain on the sale of a 2022A Bond.
Disposition of 2022A Bonds and Treatment of Market Discount. A beneficial owner of 2022A Bonds will generally recognize gain or loss on the redemption, sale or exchange of 2022A Bonds equal to the difference between the redemption or sales price (exclusive of the amount paid for accrued interest) and the beneficial owner’s adjusted tax basis in the 2022A Bonds. Generally, the beneficial owner’s adjusted tax basis in the 2022A Bonds will be the beneficial owner’s initial cost, increased by the original issue discount (if any) previously included in the beneficial owner’s income to the date of disposition. Any gain or loss generally will be capital gain or loss and will be long-term or short-term, depending on the beneficial owner’s holding period for the 2022A Bonds.
Under current law, a purchaser of a 2022A Bond who did not purchase that 2022A Bond in the initial public offering (a “subsequent purchas er”) generally will be required, on the disposition (or earlier partial principal payment) of such 2022A Bond, to recognize as ordinary income a portion of the gain (or partial principal payment), if any, to the extent of the accrued “market discount.” In general, market discount is the amount by which the price paid for such 2022A Bond by a subsequent purchaser is less than the sum of the Issue Price and the amount of original issue discount previously accrued on the 2022A Bonds. The Code also limits the deductibility of interest incurred by a subsequent purchaser on funds borrowed to acquire 2022A Bonds with market discount. As an alternative to the inclusion of market discount in income upon disposition, a subsequent purchaser may elect to include market discount in income currently as it accrues on all market discount instruments acquired by the subsequent purchaser in that taxable year or thereafter, in which case the interest deferral rule will not apply. The recharacterization of gain as ordinary income on a subsequent disposition of such 2022A Bonds could have a material effect on the market value of such 2022A Bonds.
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44 Legal Defeasance. If the Authority elects to defease the 2022A Bonds by depositing in escrow sufficient cash and/or obligations to pay when due outstanding 2022A Bonds (a “legal defeasance”), under current tax law, a beneficial owner of 2022A Bonds may be deemed to have sold or exchanged its 2022A Bonds. In the event of such a legal defeasance, a beneficial owner of 2022A Bonds generall y would recognize gain or loss in the manner described above. Ownership of the 2022A Bonds after a deemed sale or exchange as a result of a legal defeasance may have tax consequences different from those described above, and each beneficial owner should co nsult its own tax advisor regarding the consequences to such beneficial owner of a legal defeasance of the 2022A Bonds.
Backup Withholding. Under section 3406 of the Code, a beneficial owner of the 2022A Bonds who is a United States person may, under cert ain circumstances, be subject to “backup withholding” on payments of current or accrued interest on the 2022A Bonds or with respect to proceeds received from a disposition of the 2022A Bonds. This withholding applies if such beneficial owner of 2022A Bonds: (i) fails to furnish to the payor such beneficial owner’s social security number or other taxpayer identification number (“TIN”); (ii) furnishes the payor an incorrect TIN; (iii) fails to properly report interest, dividends, or other “reportable payments” as defined in the Code; or (iv) under certain circumstances, fails to provide the payor with a certified statement, signed under penalty of perjury, that the TIN provided to the payor is correct and that such beneficial owner is not subject to backup withholding.
Backup withholding will not apply, however, with respect to payments made to certain beneficial owners of the 2022A Bonds. Beneficial owners of the 2022A Bonds should consult their own tax advisors regarding their qualification for exemption from backup withholding and the procedures for obtaining such exemption.
Withholding on Payments to Nonresident Alien Individuals and Foreign Corporations. Under sections 1441 and 1442 of the Code, nonresident alien individuals and foreign corporations are generally subject to withholding at the rate of 30% on periodic income items arising from sources within the United States, provided such income is not effectively c onnected with the conduct of a United States trade or business. Assuming the interest received by the beneficial owners of the 2022A Bonds is not treated as effectively connected income within the meaning of section 864 of the Code, such interest will be subject to 30% withholding, or any lower rate specified in an income tax treaty, unless such income is treated as “portfolio interest.” Interest will be treated as portfolio interest if: (i) the beneficial owner provides a statement to the payor certifyin g, under penalties of perjury, that such beneficial owner is not a United States person and providing the name and address of such beneficial owner; (ii) such interest is treated as not effectively connected with the beneficial owner’s United States trade or business; (iii) interest payments are not made to a person within a foreign country that the IRS has included on a list of countries having provisions inadequate to prevent United States tax evasion; (iv) interest payable with respect to the 2022A Bonds is not deemed contingent interest within the meaning of the portfolio debt provision; (v) such beneficial owner is not a controlled foreign corporation, within the meaning of section 957 of the Code; and (vi) such beneficial owner is not a bank receiving interest on the 2022A Bonds pursuant to a loan agreement entered into in the ordinary course of the bank’s trade or business.
Assuming payments on the 2022A Bonds are treated as portfolio interest within the meaning of sections 871 and 881 of the Code, the n no withholding under section 1441 and 1442 of the Code and no backup withholding under section 3406 of the Code is required with respect to beneficial owners or intermediaries who have furnished Form W-8BEN, Form W-8BEN-E, Form W-8EXP or Form W-8IMY, as applicable, provided the payor does not have actual knowledge or reason to know that such person is a United States person.
Foreign Account Tax Compliance Act. Sections 1471 through 1474 of the Code impose a 30% withholding tax on certain types of payments made to a foreign financial institution, unless the foreign financial institution enters into an agreement with the U.S. Treasury to, among other things, under take to identify accounts held by certain United States persons or U.S. -owned entities, annually report certain
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45 information about such accounts, and withhold 30% on payments to account holders whose actions prevent it from complying with these and other reporting requirements, or unless the foreign financial institution is otherwise e xempt from those requirements. In addition, the Foreign Account Tax Compliance Act (“FATCA”) imposes a 30% withholding tax on the same types of payments to a non-financial foreign entity unless the entity certifies that it does not have any substantial U.S. owners or the entity furnishes identifying information regarding each s ubstantial United States owner. Failure to comply with the additional certification, information reporting and other specified requirements imposed under FATCA could result in the 30% withholding tax being imposed on payments of interest and principal under the 2022A Bonds and sales proceeds of 2022A Bonds held by or through a foreign entity. Prospective i nvestors should consult their own tax advisors regarding FATCA and its effect on them.
Reporting of Interest Payments. Subject to certain exceptions, the stated interest on the 2022A Bonds will be reported to the IRS. Such information will be filed each year with the IRS on Form 1099 - INT (or other appropriate reporting form) which will reflect the name, address, and taxpayer identification number of the owner. A copy of such Form 1099 -INT will be sent to each beneficial owner of a 2022A Bond for federal income tax purposes.
The preceding discussion of certain United States federal income tax consequences is for general information only and is not tax advice. Accordingly, each investor should consult its own tax advisor as to particular tax consequences to it of purchasing, owning, and disposing of the 2022A Bonds, including the applicability and effect of any state, local, or foreign tax law, and of any proposed change of applicable law.
ERISA CONSIDERATIONS
The Employee Retirement Income Security Act of 1974, as amended (“ERISA”), imposes certain restrictions on employee pension and welfare benefit plans subject to ERISA (“ERISA Plans”) regarding prohibited transactions, and also imposes certain obligations on those persons who are fiduciaries with respect to ERISA Plans. Section 4975 of the Code imposes similar prohibited transaction restrictions on (i) tax-qualified retirement plans described in Section 401(a) and 403(a) of the Code, which are exempt from tax under section 501(a) of the Code and which a re not governmental and church plans as defined herein (“Qualified Retirement Plans”), and (ii) Individual Retirement Accounts described in Section 408(b) of the Code (“Tax-Favored Plans”). Certain employee benefit plans, such as governmental plans (as defined in Section 3(32) of ERISA), and, if no election has been made under Section 410(d) of the Code, church plans (as defined in Section 3(33) of ERISA), are not subject to ERISA requirements. Additionally, such governmental and non -electing church plans are not subject to the requirements of Section 4975 of the Code. Although assets of such governmental or non -electing church plans may be invested in the 2022A Bonds without regard to the ERISA and Code considerations described below, any such investment may be subject to provisions of applicable federal and state law that are, to a material extent, similar to the requirements of ERISA and Section 4975 of the Code (“Similar Law”).
In addition to the imposition of general fiduciary obligations, including t hose of investment prudence and diversification and the requirement that a plan’s investment be made in accordance with the documents governing the plan, Section 406 of ERISA and Section 4975 of the Code prohibit a broad range of transactions involving ass ets of ERISA Plans and Tax -Favored Plans and entities whose underlying assets include plan assets by reason of ERISA Plans or Tax -Favored Plans investing in such entities (collectively, “Benefit Plans”) and persons who have certain specified relationships to the Benefit Plans (such persons are referred to as “Parties in Interest” or “Disqualified Persons”), unless a statutory or administrative exemption is available. Certain Parties in Interest (or Disqualified Persons) that participate in a prohibited transaction may be subject to a penalty (or an excise tax) imposed pursuant to Section 502(i) of ERISA (or Section 4975 of the Code) unless a statutory or administrative class exemption is available.
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46 Certain transactions involving the purchase, holding or tr ansfer of the 2022A Bonds might be deemed to constitute prohibited transactions under ERISA and the Code if assets of the City were deemed to be assets of a Benefit Plan. Under final regulations issued by the United States Department of Labor (the “Plan Assets Regulation”), the assets of the City would be treated as plan assets of a Benefit Plan for the purposes of ERISA and the Code if the Benefit Plan acquires an “equity interest” in the City and none of the exceptions contained in the Plan Assets Regula tion is applicable. An equity interest is defined under the Plan Assets Regulation as an interest in an entity other than an instrument which is treated as indebtedness under applicable local law and which has no substantial equity features. Although the re can be no assurances in this regard, it appears that the 2022A Bonds should be treated as debt without substantial equity features for purposes of the Plan Assets Regulation. However, without regard to whether the 2022A Bonds are treated as an equity interest for such purposes, the acquisition or holding of the 2022A Bonds by or on behalf of a Benefit Plan could be considered to give rise to a prohibited transaction if the City, any Underwriter, or any of their respective affiliates, is or becomes a Party in Interest or a Disqualified Person with respect to such Benefit Plan. The fiduciary of a Benefit Plan that proposes to purchase and hold any 2022A Bonds should consider, among other things, whether such purchase and holding may involve (i) the direct or indirect extension of credit to a Party in Interest, (ii) the sale or exchange of any property between a Benefit Plan and a Party in Interest, and (iii) the transfer to, or use by or for the benefit of, a Party in Interest, of any Benefit Plan assets.
Certain exemptions from the prohibited transaction rules could be applicable depending on the type and circumstances of the plan fiduciary making the decision to acquire a 2022A Bond. Included among these exemptions are: Prohibited Transaction Class Exemption (“PTCE”) 75-1, relating to certain broker- dealer transactions, PTCE 96-23, regarding transactions effected by “in-house asset managers;” PTCE 90- 1, regarding investments by insurance company pooled separate accounts; PTCE 95 -60, regarding transactions effected by “insurance company general accounts;” PTCE 91 -38, regarding investments by bank collective investment funds; and PTCE 84 -14, regarding transactions effected by “qualifie d professional asset managers.” In addition, Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code generally provide for a statutory exemption from the prohibitions of Section 406(a) of ERISA and Section 4975 of the Code for certain transactions between Benefit Plans and persons who are Parties in Interest solely by reason of providing services to such Benefit Plans or who are persons affiliated with such service providers, provided generally that such persons are not fiduciaries with respect to “plan assets” of any Benefit Plan involved in the transaction and that certain other conditions are satisfied.
By its acceptance of a 2022A Bond, each purchaser will be deemed to have represented and warranted that either (i) the purchase and holding of such 2022A Bond does not constitute a prohibited transaction under ERISA, Secti on 4975 of the Code or Similar Law, or (ii) the purchase and holding of such 2022A Bonds is exempt from the prohibited transaction restrictions of ERISA, Section 4975 of the Code or Similar Law pursuant to a statutory or administrative class exemption.
Any Benefit Plan fiduciary considering whether to purchase 2022A Bonds on behalf of an ERISA Plan should consult with its counsel regarding the applicability of the fiduciary responsibility and prohibited transaction provisions of ERISA and the Code to such i nvestment and the availability of any of the exemptions referred to above. In addition, persons responsible for considering the purchase of the 2022A Bonds by a governmental plan or non -electing church plan should consult with its counsel regarding the applicability of any Similar Law to such an investment.
LITIGATION
There is no controversy of any nature now pending against the City or the Authority or, to the knowledge of their respective officers threatened, seeking to restrain or enjoin the sale, execution, issuance or delivery of the 2022A Bonds or in any way contesting or affecting the validity of the 2022A Bonds or any proceedings of the City or the Authority taken with respect to the sale, execution, issuance or delivery thereof or the pledge or application of any moneys or security provided for the payment of the 2022A Bonds
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47 or the use of the 2022A Bond proceeds or contesting the corporate existence of the City or the Authority, or the title of the officers thereof to their respective offices. [There are a number of lawsuits and claims pending against the City for which the City is either self-insured or insured in varying degrees by commercial insurance, or which in the aggregate, if determined adversely to the City, could have a material adverse impact on the City’s finances in the future. However, the City does not expect any such suits or claims to have a material adverse effect on the City’s ability to make 2022A Base Rental Payments under the Lease.]
FINANCIAL STATEMENTS
The City’s financial statements for the Fiscal Year ended June 30, 2021, included in APPENDIX B hereto, have been audited by Lance, Soll & Lunghard , LLP (the “Auditor”) . The Auditor was not requested to consent to the inclusion of its report in APPENDIX B and it has not undertaken to update its report or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in the Official Statement, and no opinion is expressed by the Auditor with respect to any event subsequent to the date of its report.
APPROVAL OF LEGAL PROCEEDINGS
The issuance of the 2022A Bonds is subject to the approving opinion of Norton Rose Fulbright US LLP, Los Angeles, California, Bond Counsel to the Authority, to be delivered in substantially the form set forth in APPENDIX E. Norton Rose Fulbright US LLP in its role as Bond Counsel has undertaken no responsibility to the owners of the 2022A Bonds or any other party for the accuracy, completeness or fairness of this Official Statement or any other offering material related to the 2022A Bonds, and expresses no opinion to the Owners with respect thereto. Certain legal matters also will be passed upon for the City and the Authority by the City Attorney and for the Underwriter by its counsel Stradling Yocca Carlson & Rauth, Newport Beach, California.
EXECUTION AND DELIVERY
The execution and delivery of this Official Statement has been authorized by the Authority and the City.
CITY OF CATHEDRAL CITY PUBLIC
FINANCING AUTHORITY
By:
Chief Financial Officer
CITY OF CATHEDRAL CITY, CALIFORNIA
By:
Administrative Services Director
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APPENDIX A
SELECTED DEMOGRAPHIC AND FINANCIAL INFORMATION RELATING TO THE CITY
OF CATHEDRAL CITY AND RIVERSIDE COUNTY
The following information relating to the City of Cathedral City, California (the “City”) is provided for informational purposes only. The 2022A Bonds (as defined in the front part of this Official Statement) are payable solely as described in this Official Statement and are not payable or secured by a pledge of the faith and credit or taxing power of the City.
COVID 19 Pandemic
The economic and demographic data contained in this appendix are the latest available, but are as of dates and for periods before the economic impact of the COVID 19 pandemic and measures instituted to slow it. Accordingly, they are not indicative of the c urrent financial condition or future prospects of the City, the County or the region or of expected revenues to the General Fund . See “RISK FACTORS – COVID 19 Pandemic” in the forepart of this Official Statement.
General
The City. The City is located in Riverside County (the “County”) in the Coachella Valley 115 miles southeast of downtown Los Angeles. The City was incorporated in 1981 and covers approximately 22 square miles and had an estimated population of 53,580 as of January 2020. The City is bordered by the City of Palm Springs to the west, the City of Rancho Mirage to the south and east, and an unincorporated area of the County to the north and northeast.
The County. The County was organized in 1893 from territory in San Bernardino and San Diego Counties and encompasses 7,177 square miles. The County is bordered on the north by San Bernardino County, on the east by the State of Arizona, on the south by San Diego and Imperial Counties and on the west by Orange and San Bernardino Counties. The County is the fourth largest county (by area) in the state and stretches 185 miles from the Arizona border to within 20 miles of the Pacific Ocean. There are 28 incorporated cities in the County.
Population
The following table shows population estimates for the City, the County and the State of California for the past five years.
CITY OF CATHEDRAL CITY, RIVERSIDE COUNTY
POPULATION ESTIMATES
Year
(January 1)
City of
Cathedral City
Riverside
County
State of
California
2016 52,576 2,343,785 39,131,307
2017 52,868 2,376,580 39,398,702
2018 53,104 2,400,762 39,586,646
2019 53,320 2,422,146 39,695,376
2020 53,580 2,442,304 39,782,870
2021
____________________
Source: State of California Department of Finance, Demographic Research Unit.
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Principal Employers
The table below lists the principal employers for the City for 2021.
CITY OF CATHEDRAL CITY
PRINCIPAL EMPLOYERS
Employer Employee Range(1)
Percentage of Total City
Employment
1. Desert Princess Homeowners 250 - 499 1.08% - 2.15%
2. Doubletree-Golf Resort 250 - 499 1.08% - 2.15
3. Target 250 - 499 1.08% - 2.15
4. Cathedral City High School 100 - 249 0.43% - 1.07
5. City of Cathedral City 100 - 249 0.43% - 1.07
6. CA Developmental Services 100 - 249 0.43% - 1.07
7. Honda of the Desert 100 - 249 0.43% - 1.07
8. Jessup Auto Plaza 100 - 249 0.43% - 1.07
9. Nellie N. Coffman Middle School 100 - 249 0.43% - 1.07
10. Stater Bros. Markets (Ramon) 100 - 249 0.43% - 1.07
11. Stater Bros. Markets (Vista Chino) 100 - 249 0.43% - 1.07
12. Toyota of the Desert 100 - 249 0.43% - 1.07
Totals 1,650 - 5,988 6.73% - 15.26%
____________________
(1) Total employees by employer are presented as a range as specific employer totals are not available. In addition, the percentage of total city employment is also presented as a range.
Source: U.S. Department of Labor, Bureau of Labor Statistics; State of California, Employment Development Department, Labor Market Info (information provided by Infogroup).
Commercial Activity
A summary of the significant categories of historic taxable sales within the City during the past five available years is sho wn in the following table. 2021 taxable transaction figures for the City are not yet available.
CITY OF CATHEDRAL CITY
Taxable Transactions
(dollars in thousands)
Category 2016 2017 2018 2019 2020
Motor Vehicle and Parts Dealers $411,220 $419,757 $431,381 $438,361 Home Furnishings and Appliance Stores 12,580 11,680 9,489 6,504 Bldg. Materials and Gardening Equipment 13,608 13,158 13,372 11,670 Food and Beverage Stores 36,793 38,275 38,864 40,359
Gasoline Stations 70,616 70,486 81,609 81,826
Clothing and Accessories Stores 10,404 8,519 4,090 2,192 General Merchandise Stores 29,300 31,240 33,103 31,795
Food Services and Drinking Places 70,015 75,103 79,833 86,679 Other Retail 27,973 32,873 42,596 43,610
All Other Outlets 107,692 108,481 114,593 124,519
Total(1) $790,202 $809,572 $848,930 $867,514
____________________
Source: State of California, Board of Equalization.
(1) Totals may not add-up due to rounding.
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Construction Trends
Provided below are the building permits and valuations for the County for calendar years 2016 through 2020. 2021 figures not yet available.
COUNTY OF RIVERSIDE
New Construction
(dollars in thousands) (1) (2)
2016 2017 2018 2019 2020
Permit Valuation
New Single-family $1,526,768 $1,670,541 $2,200,021 $1,834,822 New Multi-family 106,292 109,309 232,707 282,465
Res. Alternations/Additions 126,475 123,567 125,354 158,118 Total Residential $1,759,535 $1,903,417 $2,558,081 $2,275,405
New Commercial $ 540,447 $ 522,769 $ 703,977 $ 312,035 New Industrial 59,439 410,275 529,326 493,872
New Other 374,917 136,935 410,606 179,861
Com. Alterations/Additions 371,216 363,711 315,771 300,087 Total Nonresidential $1,346,020 $1,433,691 $1,959,680 $1,285,856
TOTAL $3,105,554 $3,337,108 $4,517,761 $3,561,261
New Dwelling Units
Single Family 5,662 6,265 7,540 6,563
Multiple Family 1,039 1,070 1,628 1,798
TOTAL 6,701 7,335 9,168 8,361
____________________
(1) Includes churches and religious buildings, hospitals and institutional buildings, schools and educational buildings, resident ial garages, public works and utilities buildings and other non-residential buildings and structures. (2) Totals may not add-up due to rounding.
Source: Construction Industry Research Board.
Transportation
The City is located along Interstate 10 and parallels State Route 111. Interstate 10 is the principal transportation artery for the County. Local public transit within t he City and the County of Riverside is provided by Sunline Transit. Greyhound service is available from Palm Springs. Air passenger and cargo service is available at Palm Springs Regional Airport which is two miles west of the City. This airport affords travelers the services of all major airlines. Bermuda Dunes, a private airport, is located eight miles northeast of the City.
Rail service is available on the Union Pacific main line and Amtrak passenger rail service is available in Indio and Palm Spri ngs, California. There is truck transportation and shipping services from the City to Los Angeles, San Francisco, San Diego and Phoenix. Other transportation services include rail and truck shipping services and passenger rail service to Indio and Palm Springs.
Utilities
Natural gas, electricity and telephone service in the City are provided by Southern California Gas Company, Southern California Edison and Verizon Incorporated. Coachella Valley Water District and Desert Water Agency provide water and sewer service to the City.
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Community Information
Public Safety. The City provides police services to its residents through its Police Department.
The Cathedral City Fire Department provides residents and visitors with emergency response, disaster preparedness, fire prevention, code enforcement and paramedic ambulance services as well as public education on relevant safety topics.
Education. The City currently has seven primary/middle schools (six public and one private) and two high schools (one public and one private). Secondary education is available to students at seven colleges and universities offering bachelors, masters and doctoral programs, including the University of California-Riverside and the University of California-San Diego, and their branch campuses located within a 10 mile radius of the City. The closest college, the College of the Desert, is a fully accredited community college bestowing various associate degrees. The college works with local business providing contract education and a comprehensive array of training and management programs for students.
Healthcare. The Coachella Valley offers a variety of health centers and services ranging from pediatric to geriatric medicine. Health care is available through the Eisenhower Medical Ce nter located five miles away in Rancho Mirage, the Desert Regional Medical Center, a 393 -bed acute care facility and trauma center, located 6 miles away in Palm Springs and the John F. Kennedy Memorial Hospital located approximately 18 miles away in Indio, California. The Desert Regional Medical Center offers an array of specialty services to residents, including the International Heart Institute of Palm Springs, the Comprehensive Cancer Centers of the Desert, Women and Infant Center, home health and hospice services, the Arthritis Institute, the Health Key Plus senior program and others programs. Also available is the Betty Ford Center for the treatment of chemical dependency, the Barbara Sinatra Children's Center and the Annenberg Center for Health Sciences.
Library. The City’s 20,000 square foot library opened in 1996. The library serves the community as a reference center providing basic business, legal and medical information as well as general reference materials. The library provides a Spanish language collection and a host of exhibits, historical collections, art, and computer services (including free access to the Internet and word processing). In addition to these resources, the library provides study rooms, a community room, an adult literacy program and a story room.
Recreation. The City, through its Community Partnerships, assists in offering a variety of programs to adults and children. There are over 22 acres of parks for leisure and recreational use. The City has several golf courses, including the Cimarron Golf Resort, the Cathedral Canyon Golf and Tennis Club, The Desert Princess Country Club and Date Palm Country Club. The City’s Town Square is the venue for numerous outdoor festivals, concerts and arts and crafts show. Other entertainment activities are available at the old Hollywood style Mary Pickford Theater, host of the annual Festival of Festivals, the Civic Center and the six-story IMAX Theater complex.
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APPENDIX B
AUDITED FINANCIAL STATEMENTS OF THE CITY OF CATHEDRAL CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2021
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APPENDIX E
FORM OF OPINION OF BOND COUNSEL
___________, 2022
Cathedral City Pubic Financing Authority
Cathedral City, California
City of Cathedral City
Cathedral City, California
$[Par Amount]
Cathedral City Public Financing Authority
Lease Revenue Bonds, 2022 Series A
(Federally Taxable)
Ladies and Gentlemen:
We have acted as Bond Counsel to the Cathedral City Public Financing Authority (the “Authority”) in connection with the issuance by the Authority of its $[Par Amount] Lease Revenue Bonds, 2022 Series A (Federally Taxable) (the “Bonds”). The Bond s are being issued under the provisions of the Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4 of Chapter 5 of Division 7 of Title 1 (commencing with Section 6584) and Sections 53570 et seq. and 53580 et seq. of the California Government Code (collectively, the “Bond Law”), and pursuant to an Indenture, dated as of April 1, 2022 (the “Indenture”), by and between the Authority and The Bank of New York Mellon Trust Company, N.A. , as trustee (the “Trustee”).
The Bonds are limited obligations of the Authority secured under the Indenture by a pledge of Revenues and certain other moneys held under the Indenture. The Revenues consist of (i) all 2022A Base Rental Payments payable by the City pursuant to the Lease Agreement, dated as of April 1, 2022 (the “Lease”), by and between the Authority, as lessor, and the City, as lessee (including prepayments), (ii) any proceeds of Bonds deposited with the Trustee and all moneys on de posit in the funds and accounts established under the Indenture, (iii) inve stment income with respect to such moneys held by the Trustee and (iv) any insurance proceeds or condemnation awards received by or payable to the Trustee relating to the 2022A Base Rental Payments.
The City has leased certain real property and improvement s (the “Leased Property”) to the Authority pursuant to the Site Lease, dated as of April 1, 2022 (the “Site Lease”), by and betw een the City and the Authority. Pursuant to the Assignment Agreement, dated as of April 1, 2022 (the “Assignment Agreement”), by and between the Authority and the Trustee, the Authority has assigned to the Trustee, for the benefit of the Owners, certain of the Authority’s rights under the Site Lease and the Lease, including the right to receive 2022A Base Rental Payments under the Lease.
As Bond Counsel, we have reviewed relevant portions of the Bond Law, the Indenture, the Site Lease, the Lease, the Assignment Agreement and certifications of the Authority, the City, the Trustee and others, opinions of counsel to the Authority, the City and the Trustee, and such other documents, opinions and
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instruments as we deemed necessary to render the opinions set forth herein. Capitalized terms used and not otherwise defined herein shall have the meanings ascribed thereto in the Indenture.
Based upon the foregoing, we are of the opinion that:
1. The Bonds constitute valid and binding limited obligations of the Authority as provided in the Indenture, and are entitled to the benefits of the Indenture.
2. The Indenture has been duly and validly authorized, executed and delivered by the Authority and, assuming the enforceability thereof against the Trustee, constitutes the legally valid and binding obligation of the Authority, enforceable against the Authority in acco rdance with its terms. The Indenture creates a valid pledge, to secure the payment of principal of and interest on the Bonds, of the Revenues and certain other amounts held by the Trustee in certain funds and accounts established pursuant to the Indenture , subject to the provisions of the Indenture permitting the application thereof for other purposes and on the terms and conditions set forth therein.
3. The Lease and Site Lease have been duly and validly authorized, executed and delivered by the Authority and the City and constitute the legally valid and binding obligations of the Authority and the City, enforceable against the Authority and the City in accordance with their terms.
4. The Assignment Agreement has been duly and validly authorized, executed and delivered by the Authority and, assuming the enforceability thereof against the Trustee, constitutes the legally valid and binding obligation of the Authority, enforceable against the Authority in accordance with its terms.
5. Interest on the Bonds is exempt from personal income taxes of the State of California under present state law.
The opinions expressed in paragraphs 1, 2, 3 and 4 above are qualified to the extent the enforceability of the Bonds, the Indenture, the Lease, the Site Lease an d the Assignment Agreement may be limited by applicable bankruptcy, insolvency, debt adjustment, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors’ rights generally or as to the availability of any particular remedy. The enforceability of the Bonds, the Indenture, the Lease, the Site Lease and the Assignment Agreement is subject to the effect of general principles of equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing, to the possible unavailability of specific performance or injunctive relief, regardless of whether considered in a proceeding in equity or at law, and to the limitations on legal remedies against governmental entities in the State of California.
No opinion is expressed herein on the accuracy, completeness or fairness of the Official Statement or other offering material relating to the Bonds.
Our opinions are based on existing law of the State of California, which is subject to change. Such opinions are further based on our knowledge of facts as of the date hereof. We assume no duty to update or supplement our opinions to reflect any facts or circumstances that may thereafter come to our attention or to reflect any changes in any law that may thereafter occur or become effective. Moreover, our opinions are not a guarantee of result and are not binding on the State of California; rather, such opinions represent our legal judgment based upon our review of existing law that we deem relevant to such opinions and in reliance upon the representations and covenants referenced above.
Respectfully submitted,
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APPENDIX F
BOOK-ENTRY SYSTEM
The information in this section concerning DTC and DTC’s book -entry only system has been obtained from sources that each of the Authority and the City believes to be reliable, but the Authority and the City take no responsibility for the completeness or accuracy thereof. The following description of the procedures and record keeping with respect to beneficial ownership interests in the 2022A Bonds, payment of principal, premium, if any, and interest on the 2022A Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the 2022A Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC.
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the 2022A Bonds. The 2022A Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nomi nee) or such other name as may be requested by an authorized representative of DTC. One fully -registered 2022A Bond will be issued for each annual maturity of the 2022A Bonds, each in the aggregate principal amount of such maturity, and will be deposited through the facilities of DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Res erve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.6 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Acc ess to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has an S&P Global Ratings rating of “AA+.” The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information set forth on such website is not incorporated herein by reference.
Purchases of 2022A Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the 2022A Bonds on DTC’s records. The ownership interest of each actual purchaser of each 2022A Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase.
Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owne r entered into the transaction. Transfers of ownership interests in the 2022A Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive 2022A Bonds representing the ir
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ownership interests in 2022A Bonds, except in the event that use of the book -entry system for the 2022A Bonds is discontinued.
To facilitate subsequent transfers, all 2022A Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of 2022A Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership.
DTC has no knowledge of the actual Beneficial Owners of the 2022A Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such 2022A Bonds are credited, which may or may not be the Beneficial Owner s. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participant s, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of 2022A Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the 2022A Bonds, such as prepayments, tenders, defaults, and proposed amendments to the 2022A Bond documents. For example, Beneficial Owners of 2022A Bonds may wish to ascertain that the nominee holding the 2022A Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar a nd request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the 2022A Bonds within a maturity are being prepaid, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to 2022A Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Authority as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts 2022A Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the 2022A Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Authority, the City or the Trustee, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Parti cipants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Particip ant and not of DTC, the Trustee, the Authority or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Authority or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
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A 2022A Bond Owner shall give notice to elect to have its 2022A Bonds purchased or tendered, through its Participant, to the Trustee, and shall effect delivery of such 2022A Bonds by causing the Direct Participant to transfer the Participant’s interest in the 2022A Bonds, on DTC’s records, to the Trustee. The requirement for physical delivery of 2022A Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the 2022A Bonds are transferred by Direct Participants on DTC’s records and followed by a book -entry credit of tendered 2022A Bonds to the Trustee’s DTC account.
DTC may discontinue providing its services as depository with respect to the 2022A Bonds at any time by giving reasonable notice to the Authority or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, physical certificates are required to be printed and delivered.
The Authority may decide to discontinue use of the system of book -entry only transfers through DTC (or a successor securities depository). In that event, 2022A Bonds will be printed and delivered to DTC.
THE TRUSTEE, AS LONG AS A BOOK-ENTRY ONLY SYSTEM IS USED FOR THE 2022A
BONDS, WILL SEND ANY NOTICE OF REDEMPTION OR OTHER NOTICES TO OWNERS ONLY TO DTC. ANY FAILURE OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC
PARTICIPANT TO NOTIFY ANY BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT
OR EFFECT WILL NOT AFFECT THE VALIDITY OF SUFFICIENCY OF THE PROCEEDINGS RELATING TO THE REDEMPTION OF THE 2022A BONDS CALLED FOR REDEMPTION OR OF ANY OTHER ACTION PREMISED ON SUCH NOTICE.
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Staff Report
City Council
Item No. 6.D
Meeting Date: March 23, 2022
From: John Corella, Director of Engineering/Public Works Title: Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects within the Century Park Neighborhood, Ram on Road east of Date Palm Drive and Corral Road east of
Cathedral Canyon.
City Council
RECOMMENDATION:
Approve a contract with Petrochem Materials Innovation, LLC. for $944,045 to supply and apply Type II Rubber Emulsion Aggregate Slurry (REAS) in the C entury Park Neighborhood, on Ramon Road east of Date Palm Drive to Da Vall Drive City limits, and on Corral Road east of Cathedral Canyon Drive including traffic control, crack sealing and striping; and, approve a fifteen percent (15%) contingency in the a mount of $141,608 for unforeseeable construction costs, making the total encumbrance $1,085,653; and, authorize the City Manager to execute the required contract documents.
BACKGROUND:
Since 2015, the City of Cathedral City has used Type II, Rubberized Emulsion Aggregate Slurry (REAS) as its primary pavement maintenance surface treatment to preserve the asphalt on public streets because of its durability and longevity. As part of the City’s multi -year Pavement Management Program, REAS is the primary surface application used to preserve five to seven -year-old streets and an integral surface application to prolong older streets that will need reconstruction in the five to seven years.
In addition, The City has been able to “piggyback” and secure the low est prices available for REAS b y contracting with Petrochem Materials Innovation (PMI) and receiving the same prices as the City of Los Angeles’ multi -year bid pricing structure contract. The benefits of piggybacking on this contract ha ve allowed our City to receive the same unit price per gallon for PMI’s material and equipment as the City of Los Angeles; thereby, providing significant savings for Cathedral City.
DISCUSSION:
Staff is proposing to REAS Century Park Neighborhood streets, Ramon Road east of Date Palm Drive and Corral Road east of Cathedral Canyon . Maps of the REAS
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application areas are attached to this Staff Report.
The scope of REAS work in the Century Park Neighborhood will include roads within AD 2001-01, as well as the roads outside of AD 2001 -01 within the same neighborhood .
Crack sealing will precede the REAS application work and the street striping (includes markings) will occur subsequent the REAS application work. This work is budgeted in the FY 2021 -22 Capital Improvement Progra m (CIP) as a combination of available AD 2001-01 funds (to be used only within AD 2001 -01) and SB 1 /RMRA funding. Please note that the i nternal streets in the area bounded by 30 th Avenue, Da Vall Drive, McCallum Way and Santoro Drive that are not receivin g a REAS application will be reconstructed, and this will be presented to the City Council for approval at a later date.
The REAS work on Ramon Road will extend from Ramon Road east to the City’s City limits on both north and south sides of the street med ian. Again, crack sealing will precede the REAS application work and the street striping (includes markings) replacement will occur subsequent the REAS application work. This work is listed in the FY 2021 -22 CIP and is proposed to be funded from the City ’s Maintenance of Effort (MOE) funding from the City’s General Fund as an obligation to continue to receive SB 1/RMRA funding.
The REAS work on Corral Road will extend from Cathedral Canyon east to Date Palm Drive and cover the entire street. Again, crack sealing will precede the REAS application work and the striping (includes markings) replacement will occur subsequent the REAS application work. This work also is listed in the FY 2021 -22 CIP and is also proposed to be funded from the City’s Maintenance of Effort (MOE) funding from the City’s General Fund as an obligation to continue to receive SB 1/RMRA funding.
PMI has evaluated the condition of the proposed streets with City Staff and has determined the REAS application will have an average spread ratio of approximately ten (10) square feet per gallon. Based on this evaluation and subsequent calculations, PMI prepared a cost estimate that includes the price of the slurry, machinery, and labor. The cost estimate also includes traffic control, crack sealing and striping replacement.
PMI cost estimate includes the coordination of traffic control to reduce any vehicular and pedestrian inconveniences throughout the duration of this Project. Each resident and business along the route impacted by this work will receive a Construction Notice from PMI prior to the commencement of the work.
Staff has already informed the City’s local utilities regarding this scope of work. Burrtec and Sunline Transit have also been contacted by Staff to coordinate their tras h and bus schedules, respectively, to accommodate the work being completed. PMI will also confirm with the above utilities and service providers on the exact dates of when the work will occur.
Staff requests City Council approve a contract with Petrochem Materials Innovation, LLC. for $944 ,045 to supply and apply Type II Rubber Emulsion Aggregate Slurry (REAS) in the Century Park Neighborhood, on Ramon Road east of Date Palm Drive to Da Vall Drive City limits, and Corral Road east of Cathedral Canyon Driv e including traffic control, crack sealing and striping; and, approve a fifteen percent (15%)
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contingency in the amount of $141,608 for unforeseeable construction costs, making the total encumbrance $1,085 ,653 and authorize the City Manager to execute the required contract documents.
ENVIRONMENTAL ANALYSIS:
No environmental impact. All slurry is Categorically Exempt as it involves work on existing streets and is listed as a Class 1 Exemption under CEQA Guidelines §15301(c).
FISCAL IMPACT:
For FY 2021-22, the City allocated $300,000 in the Biennial Budget for the work within the Century Park area AD 2001-01. This is listed as Century Park Neighborhood Street Rehabilitation Project 349 -100-150-156-8800-8802 in the CIP using AD 2001 -01 available funds. Staff is proposing to use $203,633 of this for REAS in the AD 2001 -01 area and include a 15% contingency of $30,545 for a total cost of $234,178.
For FY 2021-22, the City allocated $1,100,000 in the Biennial Budget for the work within the Century Park area streets outside the AD 2001 -01 area and bounded by 30 th Avenue, Da Vall Drive, Santoro Drive and McCallum Way. This Project is listed the Century Park Neighborhood Street Rehabilitation Project 248 -100-150-156-8800-8802 in the CIP using SB1/RMRA funding. Staff is proposing to use $337,944 of this for REAS in this area and include a 15% contingency of $50,692 for a total cost of $388,636.
The total cost request for REAS in the Century Park area and AD 2001-01 is $622,814.
Note: At a later date Staff wi ll be presenting a contract for the reconstruction of the specific streets within the above cited Century Park area that require more extensive road repair work.
For FY 2021-22, the City allocated $290,000 in the Biennial Budget for the REAS work on Ramo n Road from Date Palm Drive to the east City limits at Da Vall Drive. This Project is listed as Ramon E/O Date Palm REAS Project 100 -100-150-156-8800-8802 in the CIP using Maintenance of Effort (MOE) General Funds. The estimated cost for this work is $ 299,956. Staff is proposing to use all the available $ 290,000 and supplement the difference of $ 9,956 from the CIP Unidentified MOE Project 100 -100- 150-156-8800-8802 which is budgeted at $200,000.
For FY 2021 -22, the City allocated $95,000 in the Biennia l Budget for the REAS work on Coral Road between Cathedral Canyon and Date Palm Drive. This Project is listed as Corral Road REAS Project 100 -100-150-156-8800-8802 in the CIP using Maintenance of Effort (MOE) General Funds. The estimated cost for this wor k is $102,512. Staff is proposing to use all the available $95,000 and supplement the difference of $7,512 from the CIP Unidentified MOE Project 100 -100-150-156-8800- 8802, which is budgeted at $200,000.
For both the Ramon Road and Corral Road REAS Pro jects, Staff is also proposing a 15% contingency of $ 60,370 for unforeseeable construction costs based on the total combined estimated cost of $462,838.
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The following table summarizes the budgeted expenditures for this Project:
Project Fund Estimated
Amount
15%
Contingency
Total
AD 2001-01
REAS
FY 2021-22
Fund 349
$203,633 $30,545
$234,178
Century Park
REAS (various
streets outside
AD 2001-01)
FY 2021-22
RMRA, Fund
248
$337,944 $50,692 $388,636
Ramon Road
REAS (East of
Date Palm Drive
to Da Vall Drive)
FY 2021-22
Gen Fund,
Fund 100
$299,956 $44,994 $344,950
Corral Road
REAS
FY 2021-22
Gen Fund,
Fund 100
$102,512 $15,377
$117,889
TOTAL $141,608 $1,085,653
ATTACHMENTS:
Vicinity Map
Item 3149 Attachment
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AGREEMENT
THIS CONTRACT, by and between the CITY OF CATHEDRAL CITY, a municipal corporation, herein referred to as "City,” and Petrochem Materials Innovation (PMI), LLC, herein referred to as, "Contractor."
W I T N E S S E T H:
In consideration of their mutual covenants, the parties hereto agree as follows:
1. Contractor shall furnish all necessary labor, material, equipment, transportation and services to supply and install Type II Rubberized Emulsion Aggregate Slurry (REAS) delivered from an approved Central Plant for the Pavement Management Program of Phase V programmed streets, including traffic control and striping, thermoplastic stop bars, legends and crosswalks in accordance with Attachments A thru J, in the City of Cathedral City, California.
2. Contractor shall comply with all Federal, State, County, and Cathedral City Municipal Code, which are, as amended from time to time, incorporated herein by reference.
3. All work shall be done in a manner satisfactory to the City Engineer.
4. Contractor shall commence work after the execution of this agreement and purchase order and agrees to have all work completed within the specified 15 working days.
5. In consideration of said work, City agrees to pay Contractor such sums as shall be approved by the City Engineer at lump sums and/or unit prices stated in the Contractor's proposal, attached hereto, in the amount of Nine Hundred Forty-Four Thousand Forty Dollars and /100 ($944,0. ). All payments shall be subject to approval by the Director of Engineering/ Public Works.
6. The Contractor shall not knowingly pay less than the higher of the Federal minimum wage rate or the general prevailing rate for per diem wages, as determined by the State of California Department of Industrial Relations and referred to in the Invitation to Bid, to any workman employed for the work to be performed under this contract; and the Contractor shall forfeit as a penalty to the City the sum of Twenty- Five Dollars ($25.00) for each calendar day, or fraction thereof, for such workman paid by him or by any subcontractor under him in violation of this provision (Sections 1770-1777, Labor Code of California).
7. Contractor agrees to indemnify, hold harmless, release and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, the City, its City Council, and each member thereof, and its officers, employees, commission members and representatives, from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney's fees and costs of litigation) which in whole or in part are claimed to result from or to arise out of the usage or operation, including the malfunctioning of, or, any injury caused by, any product purchased herein; or any acts, errors or omissions (including, without limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agents in connection with the performance of this Contract.
This agreement to indemnify includes, but is not limited to, personal injury (including death at any time) and damage to property (including, but without limitation, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Contractor and its employees or agents, and members of the general public).
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8. Except as otherwise required, Contractor shall concurrently with the execution of this contract, furnish the City satisfactory evidence of insurance of the kinds and in the amounts on Attachment B. This insurance shall be kept in full force and effect by Contractor during this entire contract and all premiums thereon shall be promptly paid by it. Each policy shall further state that it cannot be canceled without 30 days’ unconditional written notice to the City and shall name the City and the County of Riverside as additional insured. Contractor shall furnish evidence of having in effect, and shall maintain Workers Compensation Insurance coverage of not less than the statutory amount or otherwise show a certificate of self-insurance, in accordance with the Workers Compensation laws of the State of California.
Failure to maintain the required amounts and types of coverage throughout the duration of this Contract shall constitute a material breach of this Contract.
9. Contractor shall forfeit as a penalty to City $25.00 for each laborer, workman, or mechanic employed in the execution of this Contract by said Contractor, or any subcontractor under it, upon any of the work herein mentioned, for each calendar day during which such laborer, workman, or mechanic is required or permitted to work at other than a rate of pay provided by law for more than 8 hours in any one calendar day and 40 hours in any one calendar week, in violation of the provisions of Sections 1810-1815 of the Labor Code of the State of California.
10. In accepting this Contract, Contractor certifies that in the conduct of its business it does not deny the right of any individual to seek, obtain and hold employment without discrimination because of race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex or age as provided in the California Fair Employment Practice Act (Government Code Sections 12900, et seq.) Contractor agrees that a finding by the State Fair Employment Practices Commission that Contractor has engaged during the term of this Contract in any unlawful employment practice shall be deemed a breach of this Contract and Contractor shall pay to City $500.00 liquidated damages for each such breach committed under this contract.
11. This Contract shall not be assignable by Contractor without the written consent of City.
12. Contractor shall notify the City Engineer (in writing) forthwith when the Contract is deemed completed.
13. In accepting this Contract, Contractor certifies that no member or officer of the firm or corporation is an officer or employee of the City except to the extent permitted by law.
14. Contractor certifies that it is the holder of any necessary California State Contractor's License and authorized to undertake the above work.
15. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract.
16. To ensure proper performance of this Contract, the full five percent (5%)
17. The Contractor shall maintain and preserve all such records for a period of at least four years after termination of the contract.
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects)
18. The Contractor shall maintain all such records in the City of Cathedral City. If not, the Contractor shall, upon request, promptly deliver the records to the City or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than at City offices including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead.
19. The further terms, conditions, and covenants of the Contract are set forth in Attachments A thru H, each of which is by this reference made a part hereof.
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) IN WITNESS, WHEREOF, the parties have executed this Agreement as of the dates stated below. "CITY"
CITY OF CATHEDRAL CITY,
a California municipal corporation
By: ________________________ Dated: _____________________________ Charles P. McClendon, City Manager
ATTEST:
Dated: _____________________________
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
Dated: _____________________________
Eric S. Vail, City Attorney
“CONTRACTOR”
Dated: _____________________ By: __________________________________ Name: Leland Pace
Title: Chief Executive Officer (CEO)
Dated: _____________________ By: __________________________________ Name: Frank B. Hoffman
Title: Chief Financial Officer (CFO)
"CONTRACTOR"
(If corporation, affix seal)
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects)
ATTACHMENT A
WORKERS' COMPENSATION INSURANCE CERTIFICATE
In accordance with California Labor Code Section 1861, prior to commencement of work on the Contract, the Contractor shall sign and file with the City the following certification:
"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."
__________________________________________________
Signature
__________________________________________________
Title
__________________________________________________
Date
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects)
ATTACHMENT B
LIABILITY AND INSURANCE REQUIREMENTS
1.0 INDEMNIFICATION
The Contractor shall indemnify, hold harmless and assume the defense of the City of Cathedral City (City), its elected officials, officers, agents, employees, commission members and representatives, from all damages, costs, or expenses in law or equity that may at any time arise to cause damages to property, or of personal injury received by reason of or in the course of performing work, which may be occasioned by any willful or negligent act or omission of the Contractor, any of the Contractor's employees, or any of its subcontractors arising out of work under this Contract.
The City does not, and shall not, waive any rights that it may have against Contractor, any of the Contractor’s employees, or any of its subcontractors under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Contract. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense described herein. The City shall not be liable for any accident, loss, or damage to the work prior to its completion and acceptance.
2.0 INSURANCE REQUIREMENTS
2.1 General
The Contractor shall provide evidence of all the insurance required by Paragraph 1340-2.0, INSURANCE REQUIREMENTS, and shall submit coverage verification for review and approval by the City upon execution of the Contract.
The Contractor shall not commence work, until such insurance has been approved by the City. The Contractor shall not allow any subcontractors to commence work on its subcontract until all similar insurance required of the subcontractor has been obtained and verified by Contractor. Such insurance shall remain in full force and effect at all times during the prosecution of the Work and until the final completion and acceptance thereof.
2.2 Commercial General Liability Policy
The Contractor shall maintain during the life of the Contract, a Commercial General Liability Policy, on an occurrence basis, with a minimum limit of not less than Two Million Dollars ($2,000,000) combined single limit for bodily injury and property damage for any one occurrence and a Four Million Dollar ($4,000,000) annual project aggregate, for all of the following:
a. Premises Operations, including Explosion, Collapse and Underground (X, C, and U) Coverage.
b. Completed Operations/Products, including X, C, and U Coverage. c. Independent Contractors.
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) d. Blanket Contractual.
e. Deductible shall not exceed One Thousand Dollars ($1,000).
2.3 Commercial Business Auto Policy
The Contractor shall maintain during the life of this Contract a Commercial Business Auto Policy, on an occurrence basis, with a minimum amount of not less than Two Million Dollars ($2,000,000) combined single limit for bodily injury and property damage, providing at least all of the following coverage:
a. Coverage shall be applicable to any and all leased, owned, hired, or non-owned vehicles used in pursuit of any of the activities associated with this Contract. b. Any and all mobile equipment, including cranes, which is not covered under said Commercial Business Auto Policy shall have said coverage provided for under the Commercial General Liability Policy.
c. Deductible shall not exceed One Thousand Dollars ($1,000).
2.4 Workers' Compensation Insurance
The Contractor shall maintain during the life of the Contract, Worker's Compensation and Employers' Liability insurance providing coverage for any and all employees of Contractor:
a. The required policy shall provide coverage for Workers' Compensation (Coverage A). b. This policy shall provide coverage for One Million Dollars ($1,000,000) Employers' Liability (Coverage B).
2.5 Endorsements
All of the following endorsements are required to be made a part of the policies described in this Section hereof:
a. "The City, City employees and officers, the City Engineer, its consultants, elected officials, agents are hereby added as additional insured insofar as Work done under this Contract is concerned."
b. "This policy shall be considered primary insurance as respects any other valid and collectible insurance, including self-insured retention, the City may possess, and any other insurance the City does possess shall be considered excess insurance only." c. "This insurance shall act for each insured, and additional insured, as though a separate policy had been written for each. This, however, will not act to increase the limit of liability of the insuring company.
d. “Thirty (30) days prior written notice of cancellation shall be given to the City. Such notice shall be sent to:
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) John A. Corella, P.E.,
City of Cathedral City
68-700 Avenida Lalo Guerrero Cathedral City, CA 92234
2.6 Change in Terms
The Contractor shall provide immediate written notice to the City of any change in terms and conditions and/or reduction in the coverage of any nature to the insurance policies. The notice shall be sent to the above stated location, identified in Section 2.5, Endorsements. The Contractor shall be obligated to pay any extra premium for maintaining the insurance requirements specified here.
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects)
ATTACHMENT C
PMI CERTIFICATE OF LIABILITY INSURANCE
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) ANY PROPRIETOR/PARTNER/EXECUTIVEOFFICER/MEMBER EXCLUDED?
INSR ADDL SUBRLTR INSD WVD
PRODUCER CONTACTNAME:
FAXPHONE (A/C, No):(A/C, No, Ext):
E-MAILADDRESS:
INSURER A :
INSURED INSURER B :
INSURER C :
INSURER D :
INSURER E :
INSURER F :
POLICY NUMBER POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITS (MM/DD/YYYY) (MM/DD/YYYY)
AUTOMOBILE LIABILITY
UMBRELLA LIAB
EXCESS LIAB
WORKERS COMPENSATIONAND EMPLOYERS' LIABILITY
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
AUTHORIZED REPRESENTATIVE
EACH OCCURRENCE $
DAMAGE TO RENTEDCLAIMS-MADE OCCUR $PREMISES (Ea occurrence) MED EXP (Any one person) $
PERSONAL & ADV INJURY $
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $
PRO-POLICY LOC PRODUCTS - COMP/OP AGGJECT
OTHER: $
COMBINED SINGLE LIMIT$(Ea accident)
ANY AUTO BODILY INJURY (Per person) $
OWNED SCHEDULED BODILY INJURY (Per accident) $AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $AUTOS ONLY AUTOS ONLY (Per accident) $
OCCUR EACH OCCURRENCE
CLAIMS-MADE AGGREGATE $
DED RETENTION $
PER OTH-STATUTE ER
E.L. EACH ACCIDENT
E.L. DISEASE - EA EMPLOYEE $If yes, describe under E.L. DISEASE - POLICY LIMITDESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGE NAIC #
COMMERCIAL GENERAL LIABILITY
Y / N
N / A(Mandatory in NH)
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED INACCORDANCE WITH THE POLICY PROVISIONS.
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement onthis certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
CERTIFICATE HOLDER CANCELLATION
© 1988-2015 ACORD CORPORATION. All rights reserved.ACORD 25 (2016/03)
CERTIFICATE OF LIABILITY INSURANCE
DATE (MM/DD/YYYY)
$
$
$
$
$
The ACORD name and logo are registered marks of ACORD
9/30/2021
License # 0C36861
44520
Petrochem Materials Innovation, LLC
6168 Innovation Way
Carlsbad, CA 92009
16535
A 1,000,000
X GLO-083773 10/1/2021 10/1/2022 50,000
1,000,000
2,000,000
2,000,000
1,000,000B
BAP106300403 10/1/2021 10/1/2022
5,000,000A
SEO-115448 10/1/2021 10/1/2022 5,000,000
B
WC106300303 10/1/2021 10/1/2022 1,000,000Y 1,000,000
1,000,000
This certificate only applies to the operations for which our Insured actually performs work and is referenced by written contract between the certificate holder and our Insured. The City, City employees and officers, the City Engineer, its consultants, elected officials, agents are named additional insured(GL)per written contract. Coverage is primary and non contributory.
City of Cathedral City and City Urban Revitalization
Corp (CURC)
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
PETRMAN-01 DLI
San Diego-Alliant Insurance Services, Inc.701 B St 6th FlSan Diego, CA 92101 Brian Guzman
[email protected]
Crum & Forster Specialty Insurance Company
Zurich American Insurance Company
X
X
X
X
X
X X
X
X
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) Policy Number: GLO-083773
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) Policy Number: GLO-083773
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) Policy Number:GLO-083773 6.D.b
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects)
ATTACHMENT D
CATHEDRAL CITY COST ESTIMATE
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) City of Cathedral City
Century Park
Summary of Estimate Charges
Type II Central Mix REAS
Quote no:22-21 QTYU/MUnit PriceDaysTotal*Material REAS Type II 100,351 GAL $2.267$226,793.26*FrieghtRountrip 300Miles ($3/mile)11,100Miles$3.00$33,300.002 Applicator Trucks ($252/hr)8hr/day 112 HR $252.00 $28,224.006 Service Haul Truck 42 EA $200.00 $8,400.00Tanker Rental 37 EA $200.00 $7,400.00Slurry Box 7 EA $250.00 $1,750.00Slurry Pump 7 EA $500.00 $3,500.00Posting and Notifying (2men/8hr/day) 112 HR $95.00 $10,640.00Cover manholes (2men/8hr/day) 112 HR $95.00 $10,640.002 Drivers & Pumper= (3) $95/hour/person(8hrs/day) 168 HR $95.00 $15,960.00Crew/Labor = (4) Operator & 3 Squeegees 224 HR $95.00 $21,280.00Per Diem ($150/per (12pp) 84 HR $150.00 $12,600.00Supervior 7 DAY $1,000.00 $7,000.00Sweeping 64 HR $200.00 $12,800.00Traffic Control 7 DAY $1,500.00 $10,500.00Door Hangers 1 EA $600.00 $600.00Cracksealing - Road Works 1 LS $82,883.00 $82,883.00Striping - Cal-Stripe 1 LS $24,548.00 $24,548.00$518,818.26Sales Tax* 8.75% $22,758.16Subtotal:Total Estimated Charges ( Included sales Tax)$541,576.42 Prices Includes: Type II Central Mix REAS, Transportation of Material, equipment and labor for application of material, -striping to existing configuration, covering manholes, water valve, posting and notifying, Traffic control, sweeping.
Prices Exclude: Any required prep work on the asphalt surface, any electronic message and arrow board, no traffic control plan, no permit, no bonds.
and the application for open business credit agreement entered into by and between Petrochem Materials Innovation, LLC. and customer. If terms and conditions are not attached, please call our office.
Name: Vicki Nguyen Signature: Date: 3/10/2022
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) City of Cathedral City
Corral Rd
Summary of Estimate Charges
Type II Central Mix REAS
Quote no:22-22 QTYU/MUnit PriceDaysTotal*Material REAS Type II 9,649 GAL $2.263$21,806.74*FrieghtRountrip 300Miles ($3/mile)1,500Miles$3.00$4,500.001 Applicator Trucks ($252/hr)8hr/day 24 HR $252.00 $6,048.004 Service Haul Truck 12 EA $200.00 $2,400.00Tanker Rental 5 EA $200.00 $1,000.00Slurry Box 3 EA $250.00 $750.00Slurry Pump 3 EA $500.00 $1,500.00Posting and Notifying (1man) 24 HR $95.00 $2,280.00Cover manholes (2men) 48 HR $95.00 $4,560.001 Drivers & Pumper= (2) $95/hour/person(8hrs/day) 48 HR $95.00 $4,560.00Crew/Labor = (4) Operator & 3 Squeegees 96 HR $95.00 $9,120.00Per Diem ($150/per (10pp) 30 HR $150.00 $4,500.00Supervior 3 DAY $1,000.00 $3,000.00Sweeping 32 HR $200.00 $6,400.00Traffic Control Equipment - Topnbarricades 3 DAY $1,500.00 $4,500.00Cracksealing - Road Works 1 LS $10,213.00 $10,213.00Striping - Cal-Stripe 1 LS $13,072.00 $13,072.00$100,209.74Sales Tax* 8.75% $2,301.84Subtotal:Total Estimated Charges ( Included sales Tax)$102,511.58
Prices Includes: Type II Central Mix REAS, Transportation of Material, equipment and labor for application of -striping to existing configuration, covering manholes, water valve, posting and notifying, Traffic control, sweeping, message and arrow board Prices Exclude: Any required prep work on the asphalt surface, no traffic control plan, no permit, no bonds.
and the application for open business credit agreement entered into by and between Petrochem Materials Innovation, LLC. and customer. If terms and conditions are not attached, please call our office.
Name: Vicki Nguyen Signature: Date: 3/2/2022
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects) City of Cathedral City
Ramon Rd.
Summary of Estimate Charges
Type II Central Mix REAS
Quote no:22-23 QTYU/MUnit PriceDaysTotal*Material REAS Type II 40,724 GAL $2.265$92,036.24*FrieghtRountrip 300Miles ($3/mile)4,500Miles$3.00$13,500.001 Applicator Trucks ($252/hr)8hr/day 80 HR $252.00 $20,160.004 Service Haul Truck 25 EA $200.00 $5,000.00Tanker Rental 15 EA $200.00 $3,000.00Slurry Box 5 EA $250.00 $1,250.00Slurry Pump 5 EA $500.00 $2,500.00Posting and Notifying (1man) 40 HR $95.00 $3,800.00Cover Manholes (2men) 80 HR $95.00 $7,600.002 Drivers & Pumper= (3) $95/hour/person(8hrs/day) 120 HR $95.00 $11,400.00Crew/Labor = (4) Operator & 3 Squeegees 160 HR $95.00 $15,200.00Per Diem ($150/per (11pp) 55 HR $150.00 $8,250.00Supervior 5 DAY $1,000.00 $5,000.00Sweeping 48 HR $200.00 $9,600.00Traffic Control Equipment - Topnbarricades 5 DAY $1,500.00 $7,500.00Cracksealing - Road Works 1 LS $46,440.00 $46,440.00Striping - Cal-Stripe 1 LS $38,485.00 $38,485.00$290,721.24Sales Tax* 8.75% $9,234.42Subtotal:Total Estimated Charges ( Included sales Tax)$299,955.66
Prices Includes: Type II Central Mix REAS, Transportation of Material, equipment and labor for application of material, -striping to existing configuration, covering manholes, water valve, posting and notifying, Traffic control, sweeping, message and arrow board Prices Exclude: Any required prep work on the asphalt surface, no traffic control plan, no permit, no bonds.
and the application for open business credit agreement entered into by and between Petrochem Materials Innovation, LLC. and customer. If terms and conditions are not attached, please call our office.
Name: Vicki Nguyen Signature: Date: 3/2/2022
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects)
ATTACHMENT E
PMI'S REPRESENTATIONS AND WARRANTIES
PMI hereby makes the following representations, warranties and acknowledgments, and agrees that such representations, warranties and acknowledgments shall be true as of the Effective Date:
a. PMI has the full right, power and authority to enter into this Agreement and to sell Central Mix and rent the Equipment to the City, and to take all actions required of PMI by the terms of this Agreement.
b. All the documents executed by PMI pursuant to this Agreement will be duly authorized, executed and delivered by PMI and will be legal, valid and binding obligations of PMI enforceable against PMI in accordance with their respective terms, and will not violate any provisions of any agreement to which PMI is a party or to which it is subject. c. PMI has manufactured the Central Mix and has centrally mixed the Central Mix in accordance with Sections 203-5.5 and 203-5.5 .3, respectively, of the Greenbook. d. PMI has good and marketable title to the Type II Central Mix, which is to be sold and transferred to the City free and clear of all liens, security agreements, encumbrances, claims, demands, and charges of every kind and nature whatsoever. e. The Central Mix and Equipment are free from all defects and are of good quality and fit for the purposes and uses intended herein.
f. PMI possesses the ability to deliver approximately 74,500 gallons of Type II Central Mix daily to Cathedral City, California, during the term of this Agreement. g. The Equipment has been maintained in substantial accordance with the specifications of the Equipment manufacturers, or has otherwise been maintained in a manner to enable PMI to complete the Project.
h. PMI has inspected the Equipment and the Equipment is or will be in good and operable condition as of November 12, 2018, sufficient to enable PMI to complete the Project on a timely basis.
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Attachment: Item 3149 Attachment (3149 : Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects)
PRODUCT AND DELIVERY WARRANTIES
a. PMI hereby warrants that the Type II Central Mix product (sometimes hereinafter, "Product") will not Fail (as defined hereinafter) for five (5) years from the date of application (hereinafter, "Useful Life"), provided all persons involved in the installation of the Product substantially follow the guidelines, instructions, recommendations and best practices published and/or provided by PMI. The City hereby grants PMI and its representatives, in consultation with the City's inspector, the right to inspect, observe, monitor, provide instructions and recommend corrective actions to the City and any person installing the Product on all applications of the Product, including, without limitation, compliance with the guidelines and best practices for the application of the Product. The granting of this right to PMI and its representatives does not impose any additional duty on PMI or its representatives in addition to those duties outlined in this Agreement.
b. Should the Product Fail, PMI shall, at its election, and within thirty (30) days after determination of Failure, either repair or pay for the material cost of the Product to repair those areas of the Product covered by this warranty that Fail during its Useful Life, as well as for labor and other incidental costs (hereinafter, "Labor and Incidental Costs"), including, but not limited to, any affected striping, markings, and reflective pavement markers; provided, however, that such Failure shall occur within one (1) year from the date of Product application. For any Failure that occurs thereafter but during the Useful Life, PMI shall only be responsible for the repair or payment for the material cost of the Product, which shall also occur within thirty (30) days after determination of Product Failure. For purposes of this Agreement, whether the Product has Failed must be evaluated using the Slurry Seal Survey Procedures set forth in Exhibit "D" ("SSSP"), attached hereto and incorporated herein by this reference. The term "Fail," "Fails," "Failure" or "Failed" shall mean that, prior to the expiration of the Useful Life, more than ten percent (10%) of the native asphalt for any street segment (as defined in Exhibit "D") becomes uncovered (i.e., no longer covered by the Product), and such uncovering does not arise out of conditions outside of PMI's control, including, but not limited to, subgrade conditions, improper subbase and/or compaction, cracks, earthquakes, over watering, frequent sprinkler overspray, standing or ponding water, heavy truck or equipment traffic, corrosive or acid materials that may leak or spill on the Product, or a Force Majeure event, as defined below.
c. Provided PMI and the City mutually agree, either Steve Marvin, of LaBelle Marvin, or Steve Escobar, of Asphalt Pavement and Recycling Technology, shall make the exclusive determination of whether the Product "Failed" during its Useful Life and, if so, identify the areas and the square footage of Failure that "Failed." If PMI elects not to perform the repair itself, then PMI shall pay one hundred percent (100%) of the Product material cost for the percentage of "Failed" square footage, and for any related Labor and Incidental Costs to the extent there may be any Labor and Incidental Costs during the first year of the Product's Useful Life. If Steve Marvin or Steve Escobar are unavailable to make the determination of whether the Product "Failed," an independent engineer approved by both the City and PMI with qualifications and experience as extensive as Steve Marvin's or Steve Escobar's shall be used. This warranty only applies to the Project that is the subject of this Agreement and no other location. If the evaluator concludes the Product Failed, PMI will bear the cost of the evaluation. If the evaluator concludes the Product did not Fail, the City will bear the cost of the evaluation. d. This warranty shall be ineffective unless the City provides PMI written notice of any problems, defects or perceived Failures of the Product within thirty (30) days of the City's discovery of the problem, defect or perceived Failure. PMI shall be given the opportunity to inspect, investigate, test, repair and remediate any alleged problems, defects or failures in connection with the Product prior to any
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repair by the City, and, repair without notice shall void and waive this warranty. Inspection, investigation, testing, repair and remediation by PMI shall not operate as an admission of liability by PMI. e. Subject to Sections 21b and 21f hereof, regardless of whether any remedy set forth herein fails of its essential purpose, in no event shall PMI be liable to City for any special, consequential, incidental, exemplary, punitive, indirect or similar damages, including loss of profits, Joss of use, or personal injury, in connection with any Failed Product, even if PMI has been advised of the possibility of such damages.
f. Notwithstanding anything else to the contrary herein, in the event PMI should fail to deliver the entirety of any per diem amount of Type II Central Mix as required by the City in accordance with Section 2 of this Agreement, or, in the event of a delay due to any portion of the Type II Central Mix being deemed by the City to be unusable for the timely completion of the Project through sample testing or otherwise, PMI shall be responsible and shall immediately pay for any and all direct or indirect damages of whatever character, nature or kind, in connection therewith, in accordance with the method of calculation of damages from delays set forth in Section 25 of the General Provisions, which is expressly incorporated herein by this reference with the same force and effect as though set forth at length herein, and which provisions are part of the City's contract with Contractor for the Project; provided, however, that PMI shall not be held responsible for delays if such delays are as a result of any Act of God (hereinafter, "Force Majeure"), which includes fire, flood, earthquake, storm, hurricane or other natural disaster, war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption or failure of electricity or telephone service . In the event of any delay, PMI shall immediately notify the City in writing of the delay and the estimated extent of the delay, and the cause of the delay. The term of this Agreement, including the Rental Term, may be extended by the City in the City's sole discretion in the event of a Force Majeure delay but in no event shall PMI be considered in breach of this Agreement or any warranty as a result of any such Force Majeure delay.
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ATTACHMENT F
PMI MASTER TERMS AND CONDITIONS
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1. Binding Agreement. The following terms and conditions constitute a binding agreement stomer
provided by Company to Customer and shall be deemed to be incorporated in all invoices, purchase orders, price quotations and shipping confirmations. Company and Customer are sometimes hereinafter For purposes of this
ixers,
vehicles and tools. Nothing contained in any purchase order, memoranda or other writing submitted by Customer to Company shall modify, amend or supersede this Agreement or any portion thereof. istent, in conflict with or create any ambiguity
or conditions shall not constitute acceptance or approval by Company.
2. Quotations and Pricing. All price quotations provided by Company to Customer shall only be valid for the duration and project specified in the written quotation provided by Company. Company reserves the right in its sole and absolute discretion to decline to quote or sell to Customer. Company shall not be liable for any refusal to quote Customer or rejection of any offer to purchase by Customer. Any request for quotation by Customer shall constitute a representation that Customer is solvent. All requests for quotation shall specify the name and address of the project where the goods and Equipment will be used, name and address of the original contractor, name and address of the public agency and any other information reasonably requested by Company to enable Company to serve a Preliminary Notice or Stop obligate Company to provide any future quotations to Customer. Company reserves the right to require Customer to adhere to quality control measures imposed by Company in its sole and absolute discretion as a condition of accepting any offer to purchase by Customer and/or delivering goods and/or renting Equipment to the Customer. The parties agree that the foregoing provision is reasonable based on the need to maintain the quality of the goods, their application, the reputation of the brand and to maintain public safety. Customer shall be free to resell the goods purchased from Company at any price selected by Customer. The Equipment identified in any price quotation is subject to availability. Unless expressly provided in any price quotation, the prices in the quotation do not include an operator(s). The prices set forth in any price quotation will be charged from the time the it is returned, without proration for partial days and without regard as to whether the Equipment is actually used unless specifically provided otherwise in the applicable price quotation.
3. Delivery and Risk of Loss.
a. If the Company delivers the goods, delivery shall take place and all risk of loss shall pass when the Customer or its representative pick up the goods, delivery and all risk of loss shall pass when the goods goods to its customers pro rata in the event the Company experiences a shortage of goods. All claims for defective goods shall be made within ten (10) calendar days of delivery. Failure to make a claim within that time shall operate as unequivocal acceptance and waiver of all claims. b. Delivery of the Equipment from Company to Customer shall take place when the Equipment facilities, as applicable, in the same condition as when the Equipment left, ordinary wear and tear
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it is returned back inside the gate at
in the Equipment leased or rented by Company to Cust
which solidify, break, or become stuck as a result of the failure of the Customer to follow the operating instructions for the Equipment. Customer shall operate the Equipment in compliance with all applicable laws, ordinances and regulations. Customer shall be solely responsible for all fines and violations arising or operation of the Equipment. Customer is only obtaining the right to use the Equipment specified in the applicable price quotation and shall obtain no ownership interest in the Equipment.
4. Payment Terms. rental of Equipment are cash on
goods, applicable freight and insurance charges and Equipment rental charges will be invoiced as of the date of delivery. Company reserves the right to suspend credit, change credit terms or deny credit in its sole discretion at any time with or without notice to Customer. Company reserves the right to require from Customer adequate assurances of performance before delivery of goods or rental of Equipment.
Company reserves the right to suspend performance until Company receives adequate assurances satisfactory to Company. Company shall have the right to take possession of the Equipment and/or goods if Customer fails to make timely payment within forty eight (48) hours of the time that Customer is deemed to have received written notice of failure to make payment. Payment by Customer to Company shall not be contingent upon Customer receiving payment from any third party. Customer shall pay all sales, use and excise taxes. Interest at eighteen percent (18%) per annum shall accrue on all past due payments. immediately due and payable irrespective of prior negotiated terms. Company may withhold delivery or waives any liability of Company for any refusal to deliver goods or rent Equipment for accounts in arrears.
Customer authorizes Company to obtain credit information on Customer on an ongoing basis and authorizes the release of all credit information on Customer to Company.
5. Equipment.
a. Company requires that each third-
on the proper use of the Equipment and acknowledge that the user understands all such requirements in
b. The f
as when it left. If the Equipment is returned with less fuel than facility, the Customer will be responsible for paying the cost of the fuel to bring the fuel level back to the
c. Customer shall be responsible for maintaining the Equipment inside and outside in a clean manner. Customer will be charged for the cost of cleaning the Equipment if it is not returned to Company in at least as clean a condition as when it left the Company facility. No smoking is allowed in or around any of the Equipment.
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e. Customer shall notify Company of any operating problems or any required repairs to the Equipment so that Company can make any required repairs. An authorized representative of the Customer will be required
start of the work day is in good operating condition free from any operating problems or required repairs, and (ii)
was returned in good operating condition free from any operating problems or required repairs. The Customer is responsible for promptly notifying Company in writing of any operating problems or required repairs so that any operating problems or required repairs can be promptly handled. Company shall not be responsible for any damages or delays as a result of operating problems or required repairs if the Customer does not promptly notify Company. Customer shall be responsible for all damages to the Equipment while the Equipment is in the possession, custody or control of the Customer.
6. Insurance Requirements For Equipment Rental.
a. Coverage. Customer shall procure and maintain at its own expense comprehensive general liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss or damage resulting from the use or operation of the Equipment by Customer or its officers, employees, servants, volunteers, agents and independent contractors. Customer shall further procure and maintain at its own expense commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, covering the Equipment that names Company as the loss payee. Said policies of insurance shall have deductibles of One Thousand Dollars ($1,000) or less. b. Workers Compensation Insurance. Customer shall procure and maintain at its own expense, during the term of this Agreement, workers' compensation insurance, providing coverage as required by the California State Workers' Compensation Law.
c. Additional Named Insured. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers' Compensation coverage, shall bear an endorsement whereby it is provided that, Company and its officers, directors, shareholders, members, managers, employees, agents, representatives and lessors are named as an additional insured.
d. Proof of Insurance Coverage; Certificates. Customer shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Agreement and furnish to Company certificates of said insurance on or before delivery or use of the Equipment by the Customer. Each policy required herein must be endorsed to provide that the policy shall not be cancelled or reduced in coverage unless the insurer has provided Company with thirty (30) days prior written notice of cancellation or reduction in coverage. All insurance policies required to be provided by Customer or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to Company. The insurance provisions of this Agreement shall terms of this Agreement. Company shall have the right to terminate this Agreement immediately and take possession of the Equipment if the Customer fails at any time to provide and maintain the required insurance or certificates.
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7. Trademarks and Intellectual Property. Customer shall not make any use of the Flex Seal® or other Company trademarks, service marks or symbols unless Customer has submitted such proposed use to licensor shall be the exclusive
owner of the Flex Seal® trademarks, service marks, symbols, trade secrets, confidential information, know how, copyrights and patents together with all Improvements (as defined hereinafter) to any of the foregoing and
Customer shall not challenge such exclusive ownership or make any unauthorized use. For purposes of enhancements, betterments, ideas and discoveries (whether or not patentable) conceived or reduced to practice (actually or constructively), either solely or jointly with others.
8. Disclaimer of Warranties. Customer shall be solely responsible for determining whether the goods and Equipment are appropriate for any project or application or whether the goods must be modified to make them suitable for any project or application. Company makes no representation or warranty that the goods or Equipment will be suitable for any particular project or application. It shall be application. Company shall have no liability for any mix designs used by Customer.
COMPANY HEREBY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR
IMPLIED, AS TO THE GOODS AND EQUIPMENT, INCLUDING BUT NOT LIMITED TO, ANY
IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE AND WARRANTY OF MERCHANTABILITY.
COMPANY HAS NO CONTROL OVER THE MATERIAL SUPPLIERS SELECTED BY BUYER OR THE MATERIALS PURCHASED FROM THIRD PARTIES. COMPANY SHALL HAVE NO
LIABILITY FOR ANY MATERIALS PURCHASED BY BUYER FROM ANY THIRD PARTIES. BUYER SHALL BE SOLELY RESPONSIBLE FOR VERIFYING THAT ALL
MATERIALS OBTAINED BY BUYER FROM THIRD PARTIES ARE COMPATIBLE WITH ANY MATERIALS PURCHASED BY BUYER FROM COMPANY. BUYER SHALL BE
ACCOUNT FOR VARIATIONS IN THE MATERIALS PURCHASED BY BUYER FROM THIRD PARTIES. COMPANY SHALL NOT BE LIABLE FOR ANY CALIBRATION OR OTHER ASSISTANCE THAT MAY BE PROVIDED TO BUYER BY COMPANY.
9. Limitation of Liability. Company shall not be liable under any circumstances for any special, consequential, incidental, punitive or exemplary damages arising out of or in any way connected with this Agreement to sell goods or rent Equipment to the Customer, including damages for loss of use, lost profits, or damages paid to third parties even if Company has been advised of the possibility of such damages. invoice price paid or incurred by Customer for the goods and/or Equipment that are the subject of any dispute or claim for damages. Customer shall report all alleged problems with the goods and Equipment to Company immediately. Company shall have no liability for any problems which are not reported immediately. No legal action shall be brought by Customer against the Company for any claim with respect to any goods sold or Equipment rented by Company to Customer more than one (1) year after delivery of such goods or Equipment to the Customer. It is agreed that any cause of action with respect to such goods or Equipment shall accrue as the date of delivery of such goods or Equipment.
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10. Relationship of the Parties.
same or similar goods to third parties. The relationship of the Parties shall be that of purchaser and vendor and/or lessor and lesser, as applicable, and nothing contained in this Agreement shall be construed to create a joint venture, association, agency, partnership or franchise relationship.
11. Termination. Either Party may terminate this Agreement on thirty (30) calendar day written notice. Any such termination shall not affect any accepted orders or the duty of Customer to make payment.
12. Indemnification. Customer shall indemnify, defend, and hold harmless Company and its officers, directors, shareholders, partners, members, managers, agents, employees, attorneys, successors, and permitted assigns with respect to any and all claims, demands, liabilities, judgments, awards, liens, losses, damages, or
manner related to (i) any use of the goods purchased or Equipment rented from Company; or (ii) the failure of Customer to observe or perform the covenants and agreements of Customer under this the
termination of this Agreement for any reason.
13. Further Assurances. Each of the Parties hereto agrees to execute and deliver any and all additional papers and documents, and to do any and all acts reasonably necessary in connection with performance of its obligations hereunder to carry out the intent of the Parties hereto.
14. Entire Agreement. This Agreement and the documents expressly referenced herein, shall constitute the entire Agreement between the Parties hereto with respect to the subject matter hereof, and shall supersede all prior and contemporaneous agreements, representations and negotiations of the Parties concerning the subject matter hereof and the terms applicable thereto.
15. Amendment. This Agreement may not be supplemented, modified or amended in any manner, except by an instrument in writing stating that it is a supplement, modification or amendment of this Agreement and signed by each of the Parties hereto.
16. Waiver. No waiver of any of the provisions of this Agreement shall be deemed or constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver.
No waiver shall be binding unless executed in writing by the Party making the waiver.
17. Successors and Assigns. All terms and provisions contained herein shall inure to the benefit of and shall be binding on each of the Parties hereto and their respective directors, officers, shareholders, partners, members, managers, employees, agents, heirs, representatives, successors and permitted assigns and each of them.
18. Applicable Law. This Agreement shall be deemed to have been entered into, and shall be construed and interpreted, in accordance with the laws of the State of California without reference to
19. Severability. In the event that any provisions hereof are deemed to be illegal or unenforceable, such a determination shall not affect the validity or enforceability of the remaining provisions hereof, all of which shall remain in full force.
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20. Form. As used in this Agreement, the masculine, feminine and neuter gender, and singular and plural number shall be deemed to include the other and others whenever the context so indicates. All captions used in this Agreement are for convenience only and shall not be construed in interpreting this Agreement.
21. Time is of The Essence. Time is of the essence for this Agreement and all of the terms, provisions, covenants and conditions hereof.
22. Parties In Interest. Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the Parties to it and their respective successors and permitted assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any Party to this Agreement, nor shall any provision give any third persons any right of subrogation or action over or against any Party to this Agreement.
23. Remedies. In addition to any other available remedies, either Party, upon an appropriate showing, shall be entitled to equitable relief including, but not limited to, injunction and specific performance in the event of a
breach or threatened breach of this Agreement. No remedy conferred by any specific provision of this Agreement 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 given hereunder, or now or hereinafter existing at law, in equity, by
statute or otherwise. The election of one or more remedies by a Party shall not constitute a waiver of the right to pursue other available remedies.
24. The prevailing party in any arbitration or legal action arising out of this
25. Nonassignability. This Agreement may not be assigned by either Party without the express written consent of each of the Parties. For purposes of this Agreement, the prohibition on assignment shall also apply to licenses, sublicenses and subcontractors.
26. Interpretation. This Agreement is in all respects intended by each Party hereto to be deemed and construed to have been jointly prepared by the parties and the parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against either of them.
27. Force Majeure. Company shall not be responsible for any delays or failure to perform for any reason including, but not limited to, fire, flood, strikes, lockouts, accidents, war, terrorist acts, insurrection, Acts of God, inclement weather, delays in transportation, Equipment failure, shortage of Equipment, governmental interference or regulation
28. Waiver. No waiver shall be binding, unless executed in writing by the Party making the waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. Failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement.
29. Captions and Headings. The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.
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30. Notices. All notices required or permitted under this Agreement shall be in writing, shall be sent given (i) when delivered personally; (ii) three (3) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iii) one day after deposit with a commercial overnight carrier with verification of receipt.
Petrochem Materials Innovation, LLC
6168 Innovation Way
Carlsbad, CA 92009
City of Cathedral City
Any correctly addressed notice that is refused, unclaimed, or undeliverable because of any act or omission of the Party to be notified will be deemed effective as of the first date that the notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger, or overnight delivery service.
A Party may change its address for purposes of receiving notices by giving notice of said change of address in the manner provided for herein.
31. Arbitration. Any and all controversies, claims and disputes arising out of or relating to this Agreement, or the breach thereof, shall be settled by binding arbitration in the County of San Diego, State of California, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. The arbitrator shall be an attorney admitted to practice law in the State of California with at least fifteen (15) years of business law experience. The award rendered by the arbitrator shall be final and non-appealable and may be entered as a final judgment in any court having jurisdiction thereof. The award of the arbitrator shall be in the form of findings of fact and conclusions of law and shall set forth in detail the legal and factual basis of the decision.
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ATTACHMENT G
CITY OF LOS ANGELES CONTRACT 59680
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ATTACHMENT H
MAPS OF PROGRAMMED STREETS
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Cathedral City Page 1 of 3 Printed on 4/18/2022
Staff Report
City Council
Item No. 6.E
Meeting Date: March 23, 2022
From: John Corella, Director of Engineering/Public Works Title: Riverside County Transportation Commission (RCTC) Senate Bill 821 (SB 821) Grant Funding Agreement for the Cathedra l Canyon Drive Sidewalk Gap Closure
City Council
RECOMMENDATION:
Approve an Agreement with Riverside County Transportation Commission (RCTC) for Funding, under Senate Bill 821 (SB 821) Bicycle and Pedestrian Facilities Program, for installing sidewalks, ADA curb ramps and widening bicycle lanes on Cathedral Canyon Drive between Canyon Shore Drive and Dinah Shore Drive; and, authorize the City Manager to execute the Agreement.
BACKGROUND:
Cathedral Canyon Drive is a 4 -lane divided modified secondary hi ghway (64’ curb -to- curb) with a 10 foot right of way on each side per the City’s General Plan . There are no sidewalks or curb ramps on either side of the street , and a majority of the right -of-way has existing landscaping. Cathedral Canyon Drive from Canyo n Shores Drive to Dinah Shore Drive is predominantly residential, but no homes front the street. There are three schools within the 3/4 -mile project segment vicinity: Cathedral City Elementary School, Cathedral City High School and Mayfield College. There are an estimated 2,745 students enrolled in these schools. Bicycles and vehicular traffic currently share the road along Cathedral Canyon Drive from Canyon Shores Drive to Dinah Shore Drive, which has striping for a 5-foot Class II bike lane. For bicyclists this is not optimal and presents an exposed mode of travel with the adjacent vehicular traffic driving at posted speeds of 45 MPH with the 85th percentile speeds averaging 49 MPH.
The average daily traffic (ADT) on Cathedral Canyon north of Canyon Shor es Drive to Dinah Shore is 16,722 vehicles per day.
The City proposes to install an estimated 6,700 linear feet of sidewalk, ADA compliant curb ramps, and upgraded bike lanes on Cathedral Canyon Drive from Canyon Shores Drive to Dinah Shore Drive on both sides.
On the west side of Cathedral Canyon Drive, the improvements will include a 5 -foot sidewalk, and the widening of the currently existing 5-foot Class II bike lane to 7 -foot
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Class II bike lane (a 5-foot riding lane with a 2-foot buffer). On the east side of the street will be a n 8-foot sidewalk to accommodate the installation of a Class I (shared -use) bicycle/pedestrian path. Both walking pedestrians and bicycl ists will be able to use the Class I bicycle path. The improvements will also include a Hig h Intensity Activated Crosswalk (HAWK) signal at Calle Trujillo , which will provide a protected pedestrian crossing alternative to traditional traffic signals.
The addition of sidewalks and ADA compliant curb ramps will allow a safer path of travel and fill the void of missing walkways north of Canyon Shore Drive. This will provide pedestrians a continuous walking path from Canyon Shore Drive to Dinah Shore Drive.
Upgrading the bike lanes will encourage bicyclists to use the dedicated lanes and provide ample space for pedestrians and motorists to share the road. The goal of these improvements is to provide a safer, viable, and continuous pathway for pedestrians and bicyclists from Canyon Shores Drive to Dinah Shore Drive to access local schools, parks, and businesses. These goals are consistent with the focus of the SB 821 Grant Program.
DISCUSSION:
In April 2019 , the City submitted a SB 821 Grant application for a Project to construct sidewalks, curb ramps, and widen bike lanes along Cathedral Canyon D rive between Canyon Shores Drive and Dinah Shore Drive to the Riverside County Transportation Commission (RCTC) . In July 2019 , the City was advised by RCTC that the City’s proposed Project did not make the “initial cut” for the Grant.
This same Project was resurrected in December 2019 with the City’s participation in CVAG’s 2019 Bicycle and Pedestrian Safety Program - ATP Cycle 5 Preparation Grant.
This Grant consists of three (3) downtown linking ATP Projects on Cathedral Canyon Drive, Date Palm Drive a nd East Palm Canyon Drive of the Project . The design and right of way acquisition portion of the CVAG Grant is currently nearing completion.
In late December 2019 , Staff was informed by RCTC Staff that the two of the three Projects originally submitted for the 2019 SB 821 Grant, Cathedral Canyon Sidewalk Gap Closure being one of these, were being recommended for “second cut” SB821 Grant funding as a result of available funding. In January 20 20, RCTC confirmed the award of the Grant to the City.
The C ity Staff reviewed this opportunity, in conjunction with the design work that the CVAG ATP Cycle 5 Grant is currently funding on Cathedral Canyon Drive and concluded that this 2019 SB 821 Grant should be utilized as a supplement for the ATP Cycle 5 Grant improvements funding to further improve pedestrian connectivity throughout the proposed Project limits. These improvements included the addition of a HAWK (High Intensity Activated Crosswalk) and an overall supplement to the overall ATP Grant funding budget for construction . RCTC Staff concurred that this supplemental use of the 2019 SB 821 Grant was still in conformance with the Grant requirements and supported the effort to merge the Grants.
Before the City Council today is the RCTC Agreement for Fundin g under the 2019 SB821 Bicycle and Pedestrian Facilities Program (Agreement). RCTC and the City’s
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commitments under the Agreement are as follows:
• Participation is 75% RCTC/25% City.
• Original Project estimate $451,000.00.
• RCTC’s share of the participation for the Project is $338,400.00*. • The SB821 grant will be used as a supplement for the larger ATP Cycle 5 Grant.
As such, the City’s 25% match will be covered by the ATP Grant. • Eligible costs are for construction and related engineering. • The City has 24 months to complete the Project.
• If project costs increase, RCTC may approve an increase in proportional funding. • If project costs decrease, RCTC will reduce participation by proportional amount.
*Based on original Project estimate.
City Staff and Consult ants are finalizing the plans for the ATP Cycle 5 Grant and approval of this 2019 SB 821 Grant Agreement is required in order to confirm this additional funding through RCTC. Once the design and right of way components for the Grants are completed, the Pr oject will be offered for bids. When bids are received, these will be evaluated and if acceptable, the construction of the Project will be presented to City Council for approval.
Staff is requesting that the City Council approve an Agreement with Rivers ide County Transportation Commission for Funding Under Senate Bill 821 (SB 821) Bicycle and Pedestrian Facilities Program for installing sidewalks, ADA curb ramps and widening bicycle lanes on Cathedral Canyon Drive between Canyon Shore Drive and Dinah Shore Drive; and, authorize the City Manager to execute the Agreement.
FISCAL IMPACT:
No funding is required to execute and/or participate in this Agreement.
The total Project cost estimate for this 2019 SB 821 Grant work was estimated at $451,000.00. The Grant award is for $338,400 (75%) thus leaving a $112,600 (25%) 2019 SB 821 Grant participation amount.
The ATP Cycle 5 Grant award is $4,383,000 based on a $5,556,000 overall Project estimate thus leaving a $1,173,000 ATP Cycle 5 (21.11%) Grant participation amount
The City’s participation in the design costs with CVAG and all other costs incurred for this Project, e.g., consultant s support, right of way cost, etc., will count as leveraging toward both grant participation amounts.
ATTACHMENTS:
RCTC Agreement
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17336.00005\34820017.1
AGREEMENT No. 20-62-054-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR FUNDING UNDER SB 821 BICYCLE AND
PEDESTRIAN FACILITIES PROGRAM
(Transportation Development Act Article 3; Senate Bill 821) This Funding Agreement (“AGREEMENT”) is entered into as of ______________, 2022 (“Effective Date”), by and between the RIVERSIDE COUNTY TRANSPORTATION COMMISSION (“RCTC”) and the CITY OF CATHEDRAL CITY (“RECIPIENT”). RCTC and RECIPIENT may be referred to herein individually as a “Party” and collectively as the “Parties.”
RECITALS
A. RCTC is a county transportation commission created and existing pursuant to California Public Utilities Code Sections 130053 and 130053.5.
B. Under RCTC’s SB 821 Bicycle and Pedestrian Facilities Program (“PROGRAM”), cities and counties in the County of Riverside are notified of the availability of PROGRAM funding and a call for projects (“CALL FOR PROJECTS”) is anticipated to be issued biennially by RCTC.
C. On February 4, 2019, a CALL FOR PROJECTS was published by RCTC seeking applications for FY 2019/20 PROGRAM funding, which applications were reviewed in accordance with the applicable evaluation criteria included in the CALL FOR PROJECTS.
D. Based on the application attached as Attachment 1 and incorporated herein by this reference, RECIPIENT has been selected to receive PROGRAM funding for its proposed Cathedral Canyon Drive Sidewalk Gap Closure (“PROJECT”).
E. In conjunction with its application to RCTC, RECIPIENT was competing for Active Transportation Program (“ATP”) funds to use as its funding match for the PROJECT.
Therefore the Parties delayed entering into the AGREEMENT until the ATP funds were secured by RECIPIENT.
F. Funding for the PROJECT shall be provided pursuant to the terms contained in this AGREEMENT and pursuant to applicable PROGRAM policies adopted by RCTC, which are attached hereto and incorporated herein as Attachment 2.
NOW, THEREFORE, in consideration of the preceding recitals and the mutual covenants and consideration contained herein, the Parties mutually agree as follows:
1. Incorporation of Recitals. The Parties acknowledge and agree that the above recitals are true and correct, and hereby incorporate those recitals by this reference into the AGREEMENT.
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2. RCTC Funding Amount. RCTC hereby agrees to distribute to the RECIPIENT, on the terms and conditions set forth herein, a sum not to exceed Three Hundred and Thirty Eight Thousand Four Hundred Dollars ($338,400), to be used exclusively for reimbursing the RECIPIENT for eligible expenses as described herein (“FUNDING AMOUNT”). RECIPIENT acknowledges and agrees that the FUNDING AMOUNT may be less than the actual and final cost of the PROJECT, which final costs are the sole responsibility of RECIPIENT, and RCTC will not contribute PROGRAM funds in excess of the maximum authorized in this Section 2 unless otherwise mutually agreed to in writing by the PARTIES. In the event the FUNDING AMOUNT is not fully utilized by RECIPIENT for the PROJECT, the unused FUNDING AMOUNT must be returned to RCTC within ninety (90) ninety days of a written request by RCTC unless RECIPIENT can demonstrate in writing, subject to written approval by RCTC in its sole discretion, the following: (i) valid reason for why PROJECT costs were significantly lower than the estimate included in RECIPIENT’s attached application for funding, and (ii) written proposal for how any unused FUNDING AMOUNT will be used for a proposal to support the PROJECT or other use that supports the goals and requirements of the PROGRAM.
2.1 Eligible Project Costs. Reimbursement for PROJECT costs (“REIMBURSEMENT”) may only include those items expressly allowed for under Article 3 of the Transportation Development Act (California Public Utilities Code section 99200 et seq.), which provides that funding shall be allocated for the construction, including related engineering expenses, of facilities based on the PROGRAM policies adopted by RCTC, provided that such items are included in the scope of work included in the application, attached as Attachment 1 (“SCOPE OF WORK”). All PROJECT costs not included in the SCOPE OF WORK and not expressly permitted under Article 3 of the Transportation Development Act and the PROGRAM policies shall be considered ineligible for REIMBURSEMENT. In the event the SCOPE OF WORK needs to be amended, RECIPIENT shall submit a letter requesting such amendment, the reasons for the requested change and confirmation that costs associated with the proposed amendment are eligible for PROGRAM reimbursement for written approval by RCTC, which approval is subject to RCTC’s discretion.
In the event of any ambiguity between this AGREEMENT, PROGRAM policies, and applicable law, the following order of precedence will govern: (1) Applicable law; (2) PROGRAM policies; (3) this AGREEMENT. In the case of any conflict between this Agreement and any of its attachments, the body of this Agreement shall govern.
2.2 Timing for Project Completion. In accordance with the PROGRAM policies attached hereto as Attachment 2, RECIPIENT has until January 31, 2024 to complete the PROJECT, unless otherwise agreed to in writing by the PARTIES. If the PROJECT is not completed by January 31, 2024, RCTC shall have the sole discretion to delete the PROJECT from the PROGRAM and reprogram the funding for future approved PROGRAM projects.
RECIPIENT will not be reimbursed until the PROJECT is accepted as complete in writing by RCTC following the submission of the PROGRAM funding claim form (“CLAIM FORM”) attached hereto and incorporated herein as Attachment 3. In the event additional time is needed for the completion of the PROJECT, RECIPIENT may submit a letter to RCTC requesting an extension of time to complete the PROJECT with an explanation of why the PROJECT cannot be
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completed under the existing schedule for completion included as Attachment 1, attached hereto and incorporated herein. Before and after PROJECT photographs must be included with the CLAIM FORM upon PROJECT completion, as well as copies of paid invoices and any other backup requested for repayment and audit purposes.
2.3 Increases in Project Funding. The FUNDING AMOUNT may, at RCTC’s sole discretion, be augmented with additional PROGRAM funds and local agency match funds proportionate to the amounts included in Section 3 if there is a FUNDING AMOUNT balance and the RECIPIENT provides justification as to the reason for the funding increase. Any such increase in the FUNDING AMOUNT must be approved in writing by RCTC’s Executive Director and RCTC shall be under no obligation whatsoever to approve any increase in the FUNDING AMOUNT. No such increased funding shall be expended to pay for any PROJECT work already completed.
2.4 Cost Savings. In the event that bids or proposals for the PROJECT are lower than anticipated, or there are cost savings for any other reason, the FUNDING AMOUNT shall be reduced through an amendment to the AGREEMENT mutually agreed to in writing by the Parties. RECIPIENT shall inform RCTC of any cost savings and any cost savings shall be returned to RCTC or may be reprogrammed with written approval by RCTC for other RECIPIENT projects that align with the PROGRAM. No PROGRAM funding may be used for projects not approved by RCTC. If RECIPIENT provides a local match commitment and there are cost savings on the PROJECT, RCTC will still be reimbursed at the matching ratio as presented in the Project application despite such cost savings in accordance with PROGRAM policies.
2.5 No Funding for Temporary Improvements. Only segments or components of the PROJECT that are intended to form part of or be integrated into the PROJECT may be funded by PROGRAM funds. No improvement(s) which is/are temporary in nature, including but not limited to temporary lanes, curbs, or drainage facilities, shall be funded with PROGRAM funds except as needed for staged construction of the PROJECT.
2.6 Review and Reimbursement by RCTC. Upon receipt of the final detailed invoice from the RECIPIENT clearly documenting work completed and corresponding costs, RCTC may request additional documentation or explanation of the SCOPE OF WORK costs for which reimbursement is sought. Undisputed amounts shall be paid by RCTC to the RECIPIENT within thirty (30) days. In the event that RCTC disputes the eligibility of the RECIPIENT for reimbursement of all or a portion of an invoiced amount, the Parties shall meet and confer in an attempt to resolve the dispute. Additional details concerning the procedure for the RECIPIENT’s submittal of invoices to RCTC and RCTC’s consideration and payment of submitted invoices are set forth in Attachment 3.
2.7 Recipient’s Funding Obligation to Complete the Work. In the event that the PROGRAM funds allocated to the SCOPE OF WORK represent less than the total cost of the PROJECT, RECIPIENT shall be solely responsible for providing such additional funds as may be required to complete the PROJECT. RCTC has no obligation with respect to the safety of any SCOPE OF WORK performed at a PROJECT site. Further, RCTC shall not be liable for any
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action of RECIPIENT or its contractors relating to the condemnation of property undertaken by RECIPIENT or construction related to the PROJECT.
2.8 Recipient’s Obligation to Repay Program Funds to RCTC. In the event it is determined, whether through a post-completion audit or otherwise, the PROJECT was not completed in accordance with the PROGRAM requirements or this AGREEMENT, RECIPIENT agrees that any PROGRAM funds distributed to RECIPIENT for the PROJECT shall be repaid in full to RCTC. The Parties shall enter into good faith negotiations to establish a reasonable repayment schedule and repayment mechanism which may include, but is not limited to, withholding of Measure A Local Streets and Roads revenues, if applicable. RECIPIENT acknowledges and agrees that RCTC shall have the right to withhold any Measure A Local Streets and Roads revenues due to RECIPIENT, in an amount not to exceed the total of the PROGRAM funds distributed to RECIPIENT, and/or initiate legal action to compel repayment, if the RECIPIENT fails to repay RCTC within a reasonable time period not to exceed one hundred eighty (180) days, including any good faith negotiations, from receipt of written notification from RCTC that repayment is required due to failure to comply with the PROGRAM policies or this AGREEMENT.
2.9 Records Retention and Audits. RECIPIENT shall retain all PROJECT records in an organized manner for a minimum of three (3) years following completion of the PROJECT. PROJECT records shall be made available for inspection by RCTC upon request. If a post PROJECT audit or review indicates that RCTC has provided reimbursement to the RECIPIENT in an amount in excess of the maximum PROGRAM provided for in this Section 2, or has provided reimbursement of ineligible PROJECT costs, the RECIPIENT shall reimburse RCTC for the excess or ineligible payments within thirty (30) days of notification by RCTC. This Section 2.9 does not supersede any rights or remedies provided to RCTC under Section 2.8 or applicable law.
3. Recipient’s Local Match Contribution. RECIPIENT shall provide at least One Hundred and Twelve Thousand Six Hundred Dollars ($112,600) of funding toward the SCOPE OF WORK, as indicated in RECIPIENT’S application attached as Attachment 1 and submitted to RCTC in response to its CALL FOR PROJECTS. RECIPIENT costs related to (i) preparation and administration costs related to invoices, billings and payments; (ii) any RECIPIENT fees attributed to the processing of the SCOPE OF WORK; and (iii) expenses for items not included within the attached SCOPE OF WORK shall be borne solely by the RECIPIENT and shall not qualify towards RECIPIENT’s local match requirement in this Section 3.
4. Term: The term of this AGREEMENT shall be from the date first herein above written until:
(i) the date RCTC formally accepts the PROJECT as complete, pursuant to Section 2.2; (ii) termination of this AGREEMENT pursuant to Section 14; or (iii) RECIPIENT has fully satisfied its obligations under this AGREEMENT. All applicable indemnification and insurance provisions of this AGREEMENT shall remain in effect following the termination of this AGREEMENT.
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5. Recipient Responsibilities. RECIPIENT shall be responsible for all aspects of the PROJECT, in compliance with all applicable state and federal laws, including: (i) development and approval of plans, specifications and engineer’s estimate in accordance with all applicable laws, regulations and building codes; obtaining any necessary environmental clearances; right of way acquisition; and, obtaining all permits required by impacted agencies prior to commencement of the PROJECT; (ii) all aspects of procurement, contracting, and administration of the contracts and claims for the PROJECT; (iii) all construction management of any construction activities undertaken in connection with the PROJECT, including surveying and materials testing; and, (iv) development of a budget for the PROJECT and SCOPE OF WORK prior to award of any contract for the PROJECT, taking into consideration available funding, including PROGRAM funds.
6. Indemnification. RECIPIENT shall defend, indemnify and hold RCTC, its officials, governing board members, officers, employees, agents, and consultants free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property, persons or government funding agency, including wrongful death, to the extent arising out of or incident to any intentional or negligent acts, errors or omissions of the RECIPIENT, its officials, officers, employees, agents, and consultants related to a breach of this AGREEMENT or any act or omission arising out of the activities governed by this AGREEMENT. RECIPIENT’S obligation to indemnify includes without limitation the payment of all consequential damages and reasonable attorneys’ fees, expert witness fees and other related costs and expenses of defense. RECIPIENT shall defend, at its own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against RCTC, its officials, officers, employees, agents, and consultants in connection with this AGREEMENT. RECIPIENT shall pay and satisfy any judgment, award or decree that may be rendered against RCTC, its officials, officers, employees, agents, and consultants in any such suits, actions or other legal proceedings, including any settlement. RECIPIENT’s obligation to indemnify shall not be restricted to insurance proceeds.
7. Expenditure of Funds by Recipient Prior to Execution of Agreement. RECIPIENT commenced the Project on or about November 18, 2019, and costs incurred following such date are eligible for reimbursement under this AGREEMENT, provided they otherwise meet the requirements herein, and provided that this AGREEMENT is executed no later than June 1, 2022.
8. Compliance with Applicable Laws and Insurance. RECIPIENT agrees to comply with all applicable laws and regulations, including public contracting laws, requirements for any local state or federal funding used, and records retention and performance reporting requirements concerning the SCOPE OF WORK and PROJECT, which applicable laws and regulations shall be passed on to contractors by RECIPIENT as applicable. RECIPIENT shall have the responsibility of making sure the appropriate amounts of insurance are included in all applicable agreements for the construction of the PROJECT and RCTC shall be named as an Additional Insured on all insurance certificates obtained for the completion of the PROJECT.
PROJECT insurance funds shall be looked to first for the repayment of any claims determined to have merit.
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9. Representatives of the Parties. RCTC’s Executive Director, or his or her designee, shall serve as RCTC’s representative and shall have the authority to act on behalf of RCTC for all purposes under this AGREEMENT. RECIPIENT’s representative shall be the individual identified in the Project application as RECIPIENT’S representative to RCTC. RECIPIENT’S representative, or designee, shall have the authority to act on behalf of RECIPIENT for all purposes under this AGREEMENT and shall coordinate all activities with RCTC concerning the SCOPE OF WORK under the RECIPIENT’s responsibility. RECIPIENT shall work closely and cooperate fully with RCTC’s representative and any other agencies which may have jurisdiction over or an interest in the PROJECT.
10. Monitoring of Progress by RCTC. RECIPIENT shall allow RCTC’s designated representative, or designee, to inspect or review the progress of the work at any reasonable time with prior written notice by RCTC. RCTC may request that the RECIPIENT provide RCTC with progress reports concerning the status of the SCOPE OF WORK and PROJECT completion.
11. Binding on Successors in Interest. Each and every provision of this AGREEMENT shall be binding and inure to the benefit of the successors in interest of the Parties. Due to the specific obligations contemplated herein, this AGREEMENT may not be assigned by any Party hereto except with the prior written consent of the other Party.
12. Independent Contractors. Any person or entities retained by RECIPIENT or any contractor shall be retained on an independent contractor basis and shall not be employees of RCTC. Any personnel performing services on the PROJECT shall at all times be under the exclusive direction and control of the RECIPIENT or contractor, whichever is applicable. The RECIPIENT or contractor shall pay all wages, salaries and other amounts due such personnel in connection with their performance of services on the SCOPE OF WORK and as required by law. The RECIPIENT or contractor shall be responsible for all reports and obligations concerning such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance and workers’ compensation insurance.
13. Conflicts of Interest. For the term of this AGREEMENT, no member, officer or employee of RECIPIENT or RCTC, during the term of his or her service with RECIPIENT or RCTC, as the case may be, shall have any direct interest in this AGREEMENT, or obtain any present or anticipated material benefit arising therefrom.
14. Termination. This AGREEMENT may be terminated for cause or convenience as further specified below.
14.1 Termination for Convenience. Either RCTC or RECIPIENT may, by written notice to the other party, terminate this AGREEMENT, in whole or in part, for convenience by giving thirty (30) days' written notice to the other party of such termination and specifying the effective date thereof.
14.2 Effect of Termination for Convenience. In the event that RECIPIENT terminates this AGREEMENT for convenience, RECIPIENT shall, within one hundred eighty
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(180) days, repay to RCTC in full all PROGRAM funds provided to RECIPIENT under this AGREEMENT. In the event that RCTC terminates this AGREEMENT for convenience, RCTC shall, within ninety (90) days, distribute to the RECIPIENT PROGRAM funds in an amount equal to the aggregate total of all unpaid invoices which have been received from RECIPIENT regarding the SCOPE OF WORK for the PROJECT at the time of the notice of termination; provided, however, that RCTC shall be entitled to exercise its rights under Section 2.6, including but not limited to conducting a review of the invoices and requesting additional information from RECIPIENT. This AGREEMENT shall terminate upon receipt by the non-terminating party of the amounts due it under this Section 14.
14.3 Termination for Cause. Either RCTC or RECIPIENT may, by written notice to the other party, terminate this AGREEMENT, in whole or in part, in response to a material breach hereof by the other Party, by giving written notice to the other Party of such termination and specifying the effective date thereof. The written notice shall provide a thirty (30) day period to cure any alleged breach. During the thirty (30) day cure period, the Parties shall discuss, in good faith, the manner in which the breach can be cured.
14.4 Effect of Termination for Cause. In the event that RECIPIENT terminates this AGREEMENT in response to RCTC's uncured material breach hereof, RCTC shall, within ninety (90) days, distribute to the RECIPIENT PROGRAM funds in an amount equal to the aggregate total of all unpaid invoices which have been received from RECIPIENT regarding the SCOPE OF WORK for the PROJECT at the time of the notice of termination. In the event that RCTC terminates this AGREEMENT in response to the RECIPIENT's uncured material breach hereof, the RECIPIENT shall, within one hundred eighty (180) days, repay to RCTC in full all PROGRAM funds provided to RECIPIENT under this AGREEMENT. Notwithstanding termination of this AGREEMENT by RCTC pursuant to this Section 14.4, RCTC shall be entitled to exercise its rights under Section 2.6, including but not limited to conducting a review of the invoices and requesting additional information. This AGREEMENT shall terminate upon receipt by the terminating Party of the amounts due it under this Section 14.4.
14.5 No Program Funding. In the event that RCTC determines there are inadequate PROGRAM funds for whatever reason, RCTC shall have the ability to immediately terminate the AGREEMENT with written notice to RECIPIENT. In the event that RCTC terminates this AGREEMENT under this Section 14.5, RCTC shall, within ninety (90) days, distribute to the RECIPIENT PROGRAM funds in an amount equal to the aggregate total of all unpaid invoices which have been received from RECIPIENT regarding the SCOPE OF WORK for the PROJECT at the time of the notice of termination; provided, however, that RCTC shall be entitled to exercise its rights under Section 2.6, including but not limited to conducting a review of the invoices and requesting additional information from RECIPIENT.
14.6 Cumulative Remedies. The rights and remedies of the Parties provided in this Section 14 are in addition to any other rights and remedies provided by law or under this AGREEMENT.
15. Notice. All notices hereunder shall be in writing and shall be effective upon receipt by the other Party. All notices and communications, including invoices, between the Parties to this
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AGREEMENT shall be addressed as set forth below and provided by any of the following methods (i) personally delivered; (ii) sent by electronic mail, with a subject line clearly identifying this AGREEMENT, read receipt requested, and a cc: provided to the identified staff; (iii) sent by first-class mail, return receipt requested; or (iv) sent by overnight express delivery service with postage or other charges fully prepaid. Notwithstanding the foregoing, notices of dispute or termination sent by electronic mail must be followed by hard copy mailed notice to be effective.
TO RCTC: TO RECIPIENT:
Anne Mayer
Executive Director
RCTC
4080 Lemon Street, 3rd Floor
Riverside, California 92501
Phone: (951) 787-7141
e-mail: [email protected]
cc: [email protected]
John Corella
Director of Public Works
Cathedral City
68700 Avenida Lalo Guerrero
Cathedral City, Ca 92234
(760) 770-0327
[email protected]
Any party may update its address and contact information by providing written notice of the new information to the other Parties in accordance with this Section 15.
16. Prevailing Wages. RECIPIENT and any other person or entity hired to perform services on the SCOPE OF WORK are alerted to the requirements of California Labor Code Sections 1770 et seq., which require the payment of prevailing wages where the SCOPE OF WORK or any portion thereof is determined to be a “public work,” as defined therein. RECIPIENT shall ensure compliance with applicable prevailing wage requirements by any person or entity hired to perform the SCOPE OF WORK or any portion thereof falling within the definition of “public work.” RECIPIENT shall defend, indemnify, and hold harmless RCTC, its officers, employees, consultants, and agents from any claim or liability, including without limitation reasonable attorneys’ fees, arising from any failure or alleged failure to comply with California Labor Code Sections 1770 et seq. on the PROJECT.
17. Equal Opportunity Employment. The Parties represent that they are equal opportunity employers and they shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, sexual orientation, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
18. Entire Agreement. This AGREEMENT embodies the entire understanding and agreement between the Parties pertaining to the matters described herein and supersedes and cancels all prior oral or written agreements between the Parties with respect to these matters. Each Party acknowledges that no Party, agent or representative of the other Party has made any promise, representation or warranty, express or implied, not expressly contained in this AGREEMENT,
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that induced the other Party to sign this document. Modifications to this AGREEMENT shall be in the form of a written amendment executed by authorized representatives of the Parties to be bound.
19. Governing Law and Severability. This AGREEMENT shall be governed by, and be construed in accordance with, the laws of the State of California. If any portion of this AGREEMENT is found to be unenforceable by a court of law with appropriate jurisdiction, the remainder of the AGREEMENT shall be severable and survive as binding on the Parties.
20. Attorneys’ Fees. If any legal action is initiated for the enforcement/interpretation of this AGREEMENT, or because of any alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this AGREEMENT, the successful or prevailing party shall be entitled to recover reasonable attorneys’ fees, witness fees and other costs incurred in that action or proceeding, in addition to any other relief to which it may be entitled as determined by a court of law or appointed decider under alternative legal proceedings.
21. No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
22. Section Headings and Interpretation. The section headings contained herein are for convenience only and shall not affect in any way the interpretation of any of the provisions contained herein. The AGREEMENT shall not be interpreted as being drafted by any Party or its counsel.
23. No Waiver. Failure of RCTC to insist on any one occasion upon strict compliance with any of the terms, covenants or conditions in this AGREEMENT shall not be deemed a waiver of such term, covenant or condition, nor shall any waiver or relinquishment of any rights or powers hereunder at any one time or more times be deemed a waiver or relinquishment of such other right or power provided under applicable law.
24. Time of Essence. Time is of the essence for each and every provision of this AGREEMENT.
25. Counterparts. This AGREEMENT may be executed in any number of counterparts, each of which shall be deemed to be an original, but all which together will constitute but one agreement.
26. Form of Signatures. A manually signed copy of this Agreement which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Agreement for all purposes. This Agreement may be signed using an electronic signature.
[SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE
TO
AGREEMENT NO. 20-62-054-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR FUNDING UNDER SB 821 BICYCLE AND PEDESTRIAN
FACILITIES PROGRAM
IN WITNESS WHEREOF, the Parties have caused this AGREEMENT to be signed by their duly authorized representatives as of the Effective Date.
RCTC
By:____________________________
Name: _____Anne Mayer__________
Title: ____Executive Director_______
RECIPIENT
CITY OF CATHEDRAL CITY
By:____________________________
Name: _________________________
Title: __________________________
APPROVED AS TO FORM
Best Best & Krieger LLP
By: _________________________
Title: General Counsel
APPROVED AS TO FORM
By: _____________________________
Name: ___________________________
Title: ____________________________
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Attachment 1
ATTACHMENT 1
(RECIPIENT APPLICATION FOR FUNDING)
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Attachment: RCTC Agreement (3137 : RCTC SB 821 Grant Funding Agreement for the Cathedral Canyon Drive Sidewalk Gap Closure) FY19/20 SB 821 Bicycle and Pedestrian Facilities Program
BIENNIAL CALL FOR PROJECTS APPLICATION
VIII. PROJECT BUDGET AND SCHEDULE
The project budget and local match may only encompass the pedestrian or bicycle facility project; no additional maintenance, street projects, etc. expenses should be included.
Total Estimated Project Cost $_______________________ ( 100 % ) Local Match* Committed: $______________ ( %) SB 821 Funds Requested: $______________ ( %) *Supporting documentation of proposed match must be included.
Breakdown of Estimated Project Cost (must add up t above):
Engineering/Administration $______________
Right-of-Way $______________
Construction $______________
Other (specify): ____________________________ $______________ Estimated project start date (Mo/Yr): _______________
Estimated project end date (Mo/Yr): _____________
IX. Summary of All Projects Submitted for SB 821 Funding Consideration Please provide a complete list of projects your agency is submitting for Projects, including this application. It is highly recommended for agencies to create one comprehensive summary table and provide the table for every application.
Project Name Total
Estimated
Project Cost
Local
Match $
Local
Match
%
SB 821 Funds
Requested $
SB 821
Funds
Requested
%
1. 2.
3. 4.
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Attachment 2
ATTACHMENT 2
(PROGRAM POLICIES)
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 BICYCLE
AND PEDESTRIAN FACILITIES PROGRAM ADOPTED POLICIES
Transportation Development Act Policies
1. Up to five (5) percent of Article 3 apportionment can be used to supplement other funding sources used for bicycle and safety education programs; the allocation cannot be used to fully fund the salary of a person working on these programs.
2. Article 3 money shall be allocated for the construction, including related engineering expenses, of the facilities, or for bicycle safety education programs.
3. Money may be allocated for the maintenance of bicycling trails, which are closed to motorized traffic.
4. Facilities provided for the use of bicycles may include projects that serve the needs of commuting bicyclists, including, but not limited to, new trails serving major transportation corridors, secure bicycle parking at employment centers, park and ride lots, and transit terminals where other funds are available.
5. Within thirty (30) days after receiving a request for a review from any city or county, the transportation-planning agency shall review its allocations.
6. Up to twenty (20) percent of the amount available each year to a city or county may be allocated to restripe Class II bicycle lanes.
7. A portion of each city’s allocation may also be used to develop comprehensive bicycle and pedestrian plans. Plans must emphasize bike/pedestrian facilities that support utilitarian bike/pedestrian travel rather than solely recreational activities; a maximum of one entire allocation per five (5) years may be used for plan development.
8. Allowable maintenance activities for the local funds are limited to maintenance and repairs of Class I off-street bicycle facilities only.
RCTC Policies
1. The SB 821 Call for Projects will occur on a biennial basis, with a release date of the
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Attachment 2
first Monday of every other February and a close date of the last Thursday of every other April, beginning in 2015.
2. If a project cannot be fully funded, RCTC may recommend partial funding for award. To handle tiebreakers, RCTC will use, in terms of priority, the safety question first then construction readiness.
3. Agencies awarded funds will not be reimbursed for any project cost overruns.
4. Agencies being awarded an allocation will be reimbursed in arrears only upon submitting adequate proof of satisfactory project completion. Claims need to include: the claim form, copies of paid invoices, a copy of the Notice of Completion (NOC), and photographs of the completed project.
5. The allocated amount represents the maximum amount eligible for reimbursement.
For projects completed under the allocated amount, the agency will be reimbursed at the matching ratio as presented in the application.
6. An agency will have thirty-six (36) months from the time of the allocation to complete the project. There will be no time extensions granted unless the reason for the delay can be demonstrated. Where substantial progress or a compelling reason for delay can be shown, the agency may be granted administrative extensions in twelve-month increments at the discretion of the Executive Director.
7. Any programmed and unused Article 3 Program funds will be forfeited unless that agency can a) utilize the unused funds to complete projects that are the same or similar in scope and/or are contiguous to the approved project or b) apply the funds to a project previously submitted under an Article 3 call for projects and approved by the Commission, subject to Executive Director approval.
8. Design and construction of facilities must conform to the general design criteria for non-motorized facilities as outlined in the Caltrans Highway Design Manual.
9. Temporary facilities, projects in the bid process, or projects that are under construction will not be funded.
10. The SB 821 evaluation committee will be comprised of a minimum of five evaluators representing a wide range of interests; such as: accessibility, bicycling, Coachella Valley, public transit, and the region. Staff, consultants, and other representatives from agencies submitting project proposals will not be eligible to participate on the evaluation committee that year.
11. Following each call, staff will monitor the equity of allocations to Coachella Valley versus Western Riverside County; the allocation should be relative to what the Coachella Valley’s share would have been if distributed on a per capita basis (the percentage of funds applied for should also be taken into consideration). If the allocation is often found to be inequitable to the Coachella Valley, staff will recommend adoption of a new policy to correct the imbalance.
12. Certain costs at times associated with bicycle/pedestrian projects are not eligible when the benefit provided is not the exclusive use of bicyclists/pedestrians, such as: curb and
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Attachment: RCTC Agreement (3137 : RCTC SB 821 Grant Funding Agreement for the Cathedral Canyon Drive Sidewalk Gap Closure) 17336.00005\34820017.1
Attachment 2
gutter as part of roadway drainage system, driveway ramps installed across sidewalks, and where roadway design standards require a roadway shoulder width that is at least as wide as a standard bike lane.
13. For each Call for Projects, a city is eligible to submit up to three (3) applications, and the County of Riverside is eligible to submit up to two (2) applications per Supervisorial District.
14. Each application is limited to a maximum request of ten (10) percent of the current Call for Projects programming capacity.
15. Total award to one jurisdiction is limited to twenty (20) percent of current Call for Project’s programming capacity.
16. Awarded agencies can commence reimbursable project activities on July1 of the Call for Project fiscal year cycle. E.g.: for FY 19/20 Call for Projects, reimbursable work starts on July 1, 2019.
17. Awarded agencies have until June 1 of the Call for Project fiscal year cycle to execute the Memorandum of Understanding (MOU) with RCTC. E.g.: for FY 19/20 Call for Projects, MOUs must be executed by June 1, 2022.
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Attachment 3
ATTACHMENT 3
TDA ARTICLE 3 BICYCLE AND PEDESTRIAN FACILITIES
NON-TRANSIT CLAIM FORM
CLAIMANT: _________________________________________________ COUNTY: _Riverside__ ADDRESS: ___________________________________________________________________ CONTACT PERSON: TITLE: _____________________________ I verify that the information on this Claim Form is true and accurate to the best of my knowledge.
Signed: Date: ________________________ PROJECT NAME: ______________________________________________________________ PROJECT AWARDED IN FY:
START DATE (Mo/Yr): _____________________________________ COMPLETED DATE (Mo/Yr): ________________________________ TDA ARTICLE 3 REVENUES AND EXPENSES OF CLAIMANT:
Total Project Cost $_______________________ ( 100 % ) Local Match Spent: $_______________________ ( %) SB 821 Funds Spent: $_______________________ ( %) Breakdown of Project Cost (must add up to “Total Project Cost” above):
Administration $___________________
PA/ED $___________________
PS&E $___________________
Right-of-Way $___________________
Construction $___________________
Other (specify): ____________________________ $___________________ Other (specify): ____________________________ $___________________ Supporting Document Checklist:
o Notice of Completion
o Before and After pictures of project site
o Paid Invoices
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ASSURANCE OF MAINTENANCE
SB 821 SIDEWALK/BIKEWAY FACILITIES
WHEREAS, THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION HAS ALLOCATED $_____________ TO THE CITY/COUNTY OF __________________________ FOR THE IMPROVEMENT OF THE _______________________________________________ SIDEWALK/BIKEWAY PROJECT; AND,
WHEREAS, THIS INVESTMENT OF PUBLIC FUNDS CAN BE FULLY REALIZED IF
THIS FACILITY IS MAINTAINED TO ADEQUATE OPERATING STANDARDS FOR USE BY COMMUTER AND RECREATIONAL PEDESTRIANS/BICYCLISTS;
THEREFORE, THE CITY/COUNTY OF ______________________________ ASSURES THAT THIS FACILITY WILL BE MAINTAINED AT ADEQUATE OPERATING STANDARDS.
SIGNED:______________________________
TITLE:_______________________________
DATE:_______________________________
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Staff Report
City Council
Item No. 6.F
Meeting Date: March 23, 2022
From: John Corella, Director of Engineering/Public Works Title: Resolution adopting the City's FY 2022 -23 RMRA (SB -1) Projects.
City Council
RECOMMENDATION:
Approve a resolutio n adopting the City’s FY 2022 -23 Capital Improvement Program (CIP) Projects funded by Senate Bill 1 (SB -1): The Road Repair and Accountability Act of 2017.
BACKGROUND:
Prior to SB -1, cities and counties across the state delayed and even cancelled road improvement projects due to lack of funding; neglecting basic maintenance and repairs to their local streets. The 2016 California Statewide Local Streets and Roads Needs Assessment found that the condition of these local streets, on average, were “at risk” or degraded to failing infrastructure.
On April 28, 2017, Governor Brown signed SB -1 known as the Road Repair and Accountability Act of 2017 to address basic road maintenance, rehabilitation and critical needs for both state highways and local streets a nd roads known as the Local Streets and Roads Program (LSR). SB -1 generates funds through increases on a per gallon fuel excise taxes, increases on diesel fuel sales taxes, vehicle registration fees and provides for inflationary adjustments on future tax rates.
Various portions of the funds generated are deposited into the Road Maintenance and Rehabilitation Account (RMRA). A percentage of the RMRA funding will be apportioned to Cathedral City by formula for road maintenance, rehabilitation and critical s afety projects.
The RMRA requires that all projects be included in the City Capital Improvement Plan.
On September 13, 2017, the City Council approved Resolution No. 2017 - 43 adding the proposed RMRA projects to the City’s five-year CIP.
DISCUSSION:
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In FY 2020-2021, the City used RMRA (SB -1) funding to reconstruct the pavement on residential streets in the Whispering Palms Neighborhood which included the reconstruction of nine (9) residential streets located between Ramon Road and 33 rd Avenue. This area was listed as Project 1 on last years adopted Resolution No. 2021-07 and titled Whispering Palms Neighborhood Street Pavement Rehabilitation.
Landau Boulevard and McCallum Way Intersection Traffic Signal Construction For the required FY 202 2-23 RMRA reporting, the City is proposing the design and construction of the Landau Boulevard and McCallum Way Intersection Traffic Signal Construction Project. This will be designated at Proposed Project 1 on the attached Resolution.
Project 1 proposes to reconst ruct and improve the intersection at Landau Blvd. and McCallum Way adjacent to Mt. San Jacinto High School located on the intersection’s northeast corner. This intersection receives significant pedestrian traffic from the adjacent communities and local sc hool students and residents. This intersection was also the location of a 2015 pedestrian fatality. The proposed Project will convert an existing four-way intersection into a signalized intersection, upgrade and/or recondition ADA ramps, and intersection repaving extending north and south on Landau Boulevard.
This Project is in the attached resolution and designated as Landau Boulevard and McCallum Way Intersection Traffic Signal Construction (Project 1).
The City Council has already authorized a Task Ord er for the City’s On -Call Traffic Consultant, Webb and Associates to start the design of Project 1. The Project 1 schedule is to complete the design in FY 202 1-22 and construct the Project in early 2023 (FY 2022-23) after Project 2 (described below) is completed.
The past RMRA budget for the Landau Boulevard and McCallum Way Intersection Traffic Signal Construction was listed at $400,000. This estimated cost was established in 2017 for initial budgeting purposes. After an initial evaluation of the int ersection equipment and paving requirements, Staff is proposing to increase the Project’s budget to $600,000. Once the design of Project 1 is completed, the consultant will be providing a construction cost estimate for Project 1. The FY 2022-23 RMRA Resolution attached to this Staff Report will list the estimated cost for Project 1 as $600,000.
Century Park Neighborhood Street Pavement Rehabilitation For the required FY 2022 -23 RMRA reporting, the City is proposing the Century Park Neighborhood Street Pavement Rehabilitation Project. This will be designated as Proposed Project 2 on the attached Resolution.
Project 2 proposes a combination of street reconstruction on specified streets and the application of Rubberized Emulsion Aggregate Slurry (REAS) on other streets within the internal street system of the Century Park area, bound by Avenue 30 to the north, McCallum Way to the south, Santoro Drive to the west and Da Vall Drive to the east.
There will be REAS application to the streets exclusively wit hin Assessment District 2001-01 (AD 2001-01) streets west of Santoro Drive as well.
Staff will be bringing a contract for the REAS portion of this work to the City Council this same Council Meeting, March 23, 2022. The remaining street reconstruction, within the
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Project 2 area, will be performed by a separate contract and brought before the City Council for approval in April. All this work in the Project 2 area will take place between April and July 2022.
The past RMRA budgets for the Century Park Ne ighborhood Street Pavement Rehabilitation Project was listed at an estimated cost of $1,400,000. Within the City’s FY 2021 -22 Capital Improvement Program (CIP), th e $1,400,000, is broken into two funding sources, $1,100,000 from RMRA funding and $300,000 from AD 2001 -01.
Again, this estimated cost was established in 2017 for initial budgeting purposes. After Staff’s evaluation of the overall paving requirements, Staff is proposing to increase the Project’s reporting budget to $1,700,000. This will incre ase the RMRA portion of the City’s CIP budget to $1,400,000 and the AD 2001 -01 budget will remain the same at $300,000.
La Pasada Neighborhood Street Pavement Rehabilitation
For the required FY 2022 -23 RMRA reporting, the City is proposing the La Pas ada Neighborhood Street Pavement Rehabilitation Project. This will be designated as Proposed Project 3 on the attached Resolution. Design will start at the end of FY 2022 - 23 or early FY 2023-24.
Project 3 proposes a combination of street reconstruction on specified streets and the application of REAS on other streets within the internal street system of the La Pasada area, north of Vista Chino and east and west of Avenida Maravilla. Streets include Santiago Road, Posada Road, Madrid Road, Riviera Road, A venida Maravilla, San Martin Street, Calle Prado, La Medera Road, and Tangelo Street. Project 3 will begin after the completion of Projects 1 and 2.
The past RMRA budgets for the La Pasada Neighborhood Street Pavement Rehabilitation Project was listed at an estimated cost of $650,000. Again, this estimated cost was established in 2017 for initial budgeting purposes. The FY 2022 -23 RMRA Resolution attached to this Staff Report will list the estimated cost for Project 3, as $800,000.
Summary
Project 1 , P roject 2, and Project 3 are included in the original five -year RMRA as established by Resolution No. 2017 -43 on September 13, 2017 , thus amending the City’s CIP. To receive RMRA funding, all Proposed Projects must be included in the City’s CIP budget whic h is adopted biennially by the City Council during a regularly scheduled meeting. All the Proposed Projects are included in the City’s FY 2021-22 and FY 2022-23 CIP budget. In addition, the City Council must approve a Resolution every year that lists the Proposed Projects the City will be completing within that fiscal year.
Once the Resolution is approved, the City will submit an approved copy of this Resolution to the California Transportation Commission (CTC) as required by the Local Streets and Roads Program (LSR).
FISCAL IMPACT:
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The recommended action will have no immediate fiscal impact for confirming the Proposed Projects described in the attached Resolution, as each Project will be brought separately to the City Council for SB1 CIP funding approval.
Note: The City is required to maintain its existing commitment of local funds for Capital Improvements to remain eligible for RMRA funding apportionment . This means that the City will need to spend no less than the annual average of its General Fun d expenditures, as determined during the 2009-10, 2010-11, and 2011-12 fiscal years for streets, road and highway purposes from the City’s General Fund (or Maintenance of Effort (MOE) amount) of approximately $900,000 annually to be eligible in the Program .
If the City meets its MOE commitment, the City will receive approximately $900,000 annually in RMRA/SB1 funding. The required MOE funding is included in the City’s proposed FY 2021–22 and FY 2022–23 Biennial CIP Budget.
ATTACHMENTS:
CC Reso 2022-XX
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RESOLUTION NO. 2022- 16
RESOLUTION ADOPTING A LIST OF PROJECTS FOR
FISCAL YEAR 2022-23 FUNDED BY SB 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017
W
HEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi -modal transportation funding shortfalls statewide; and
W
HEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of Cathedral City (“CITY”) are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and W
HEREAS, the CITY must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
W
HEREAS, t he CITY, will receive an estimated $ 900,000 in RMRA funding in Fiscal Year 2022-23 from SB 1; and
W
HEREAS, this is the sixth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
W
HEREAS, the CITY has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and W
HEREAS, the CITY used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high- priority and cost - effective projects that also meet the community’s priorities for transportation investment; and
W
HEREAS, the funding from SB 1 will help the C ITY maintain and rehabilitate streets throughout the CITY this year and in the future; and
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Attachment: CC Reso 2022-XX (3150 : Resolution adopting the City's FY 2022-23 RMRA (SB-1) Projects.) WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the CITY’s st reets and roads are in a poor condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good condition” condition; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-e dge technology, materials and practices, w ill have significant positive co-benefits statewide.
NO
W, THEREFORE IT IS HEREBY RES OLVED, O RDERED AND FOUND by the C ity Council of the City of Cathedral City, State of California, as follows:
1. The foregoing recitals are true and correct.
2. T
he following Proposed Project will be funded in-part or solely with fiscal year 2022-23 Road Maintenance and Rehabilitation Account revenues:
Proposed Project 1: Landau Boulevard and McCallum Way Intersection Traffic Signal Construction
Description: The Proposed Pr oject will convert an existing four-w ay intersection into a signalized intersection and pavement improvements north and south bou
nd on Landau Boulevard. This intersection is located at the southwest corner o
f Mt. San Jacinto High School, wh ich gets significant pedestrian traffic from students. This intersection was also the location of a 2015 pedestrian fatality.
Location:
Intersection of Landau Boulevard and McCallum Way
Estimated Useful Life: Twenty (20) years
Project Start: Spring 2022
Project Completion: Spring 2023
Estimated Cost: $600,000.00
Proposed Project 2: Century Park Neighborhood Street Pavement Rehabilitation Description
: The Century Park Neighborhood includes rehabilitation and/or reconditioning
of various residential streets within the Century Park Neighborhood area.
Location:
The Century Park Neighborhood is bound between Avenue 30 to the north, McCallum Way to the south, Date Palm Drive to the west, and Da Vall Drive to
the east.
Estimated Useful Life: Twenty (20) years
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Attachment: CC Reso 2022-XX (3150 : Resolution adopting the City's FY 2022-23 RMRA (SB-1) Projects.) Project Start: Spring 2022
Project Completion: Summer 2022
Estimated Cost: $1,700,000.00
3. The following previously proposed and adopted Project may utilize fiscal year 2022-23 Road Maintenance and Rehabilitation Account rev enues in its delivery.
With the relisti
ng of this Proposed Project in the adopted fiscal year resolution, t
he City is reaffirming to the public and the State our intent to fund this project w
ith Road Maintenance and Rehabilitation Account revenues:
Proposed Project 3: La Pasada Neighborhood Street Pavement Rehabilitation The streets to be selected for rehabilitation and REAS will be based on the latest PCI.
Description: The La Pasada Neighborhood includes rehabilitation and/or reconditioning of various residential streets within the La Pasada Neighborhood area.
Location: The La Pasada Neighborhood is north of Vista Chino and east and west of
Avenida Maravilla. Streets include Santiago Road, Posada Road, Madrid Road, Riviera Road,
Avenida Maravilla, San Martin Street, Calle Prado, La Medera Road, and Tangelo Street.
E
stimated Useful Life: Twenty (20) years
Project
Completion: Summer 2024
Estimated Cost: $8 00,000 .00
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Attachment: CC Reso 2022-XX (3150 : Resolution adopting the City's FY 2022-23 RMRA (SB-1) Projects.) PASSED AND ADOPTED by the City Council of the City of Cathedral City, State of California this 23rd day of March 2022, by the following vote:
Ayes: Councilmembers Gregory, Ross and Carnevale;Mayor Pro Tem Lamb an Mayor Gutierrez Noes: None
Absent: None
Abstain: None
______
________________________________
Ernesto M. Gutierrez, Mayor
AT
TEST:
______
_____________________________
Tracey R. Hermosillo, City Clerk
APP
ROVED AS TO FORM:
______
_____________________________
Eric S. Vail, City Attorney
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Staff Report
City Council
Item No. 6.G
Meeting Date: March 23, 2022
From: Charles McClendon, City Manager
Title: Continuation of Teleconference Meetings
City Council
RECOMMENDATION:
To adopt a resolution authorizing the City Council and Commiss ions to meet via teleconference pursuant to Assembly Bill (AB) 361.
BACKGROUND:
Throughout the pandemic, City Council and Commission meetings have been conducted pursuant to the Governor’s Executive Order N -29-20 and N -08-21 suspending certain provisions of the Brown Act and permitting the use of teleconferencing for members of the legislative body and the public. Those Executive Orders expired on September 30, 2021.
In their place the Governor signed AB 361, which went into effect on October 1, 2021.
AB 361 amended the Brown Act to permit members of a legislative body to teleconference into a meeting during a state of emergency proclaimed by the Governor.
Teleconferencing by members of the body under AB 361 can be done without having to comply with the requirement that the agenda list the location where members will be teleconferencing from, posting an agenda at that location, and allowing members of the public to attend the meeting from the teleconference location.
To teleconference under AB 361, the City Council must make findings that either:
a) State or local officials are imposing or recommending measures to promote social distancing, or
b) “As a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.”
Pursuant to AB 361, the City Council must reconsider the circumstances every 30 days and make new findings to support the need to continue to teleconference under AB 361.
On October 13, 2021 , the City Council adopted Resolution 2021 -30 and has subsequently adopted a Resolution every 30 days , pursuant to AB 361, all which included a finding that there was an imminent risk to the health and safety of those
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attending Council and Commission meetings to support teleconferencing under AB 361.
In all Resolutions, the findings were based on the high case rates and test positivity rates in Riverside County.
DISCUSSION:
Staff has prepared a Resolution for the Council to consider, which includes a finding that there is an imminent risk to the health and s afety of those attending Council and Commission meetings based on the high case rates and test positivity rates in Riverside County, should they wish to continue to teleconference under AB 361.
Meetings held via teleconferencing under AB 361 must comply with certain requirements.
1. Public Must be able to Directly Address The Body in Real Time . The public must have the opportunity to address the Council or Commission directly and in real time. In other words, the City cannot require public comments to be submitted in advance of the meeting or via email or other written medium.
2. Notice Language on Agenda. The agenda must include notice of the means by which members of the public may access the meeting and provide public comment. This must include a call -in or internet -based option. The agency is not required to allow the public to attend in person, but may choose to do so. The agency can use an internet-based service option that requires users to register.
3. Disruption in Phone or Internet Service. If there is a disruption in the meeting broadcast, or a disruption within the agency's control that prevents call -in or internet-based public comment, the meeting must be stopped (recessed or adjourned) until the issue is resolved.
4. Time for Public Comment . A "reasonable time" for each speaker to make a public comment before the body moves on to the next item on the agenda. The period to register to speak on an item must be kept open during the public comments period for each item.
FISCAL IMPACT:
As the Ci ty is already utilizing teleconferencing for its Council and Commission meetings, no additional cost is anticipated.
ATTACHMENTS:
Teleconference Meetings 03232022
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RESOLUTION NO. 2022-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY , A UTHORIZING THE CITY COUNCIL AND
COMMISSIONS TO IMPLEMENT TELECONFERENCE
ACCESSIBILITY FOR CONDUCTING PUBLIC MEETINGS PURSUANT
TO AB 361
WHEREAS, on March 4, 2020, the Governor of California proclaimed a State of Emergency to exist in California as a result of the threat of novel coronavirus disease 2019 (COVID-19); and
WHEREAS, on March 12, 2020, the Governor of California executed Executive Order N- 25-20 which suspended and modified specified provisions in the Ralph M. Brown Act (Government Code Section § 54950 et seq.) and authorized local legislative bodies to hold public meet ings via teleconferencing and to make public meeting accessible telephonically or otherwise electronically to all members of the public seeking to observe and address the local legislative body; and
WHEREAS, on March 17, 2020, the Governor of California executed Executive Order N- 29-20 which superseded and replaced the provisions of Executive Order N-25-20 related to the Brown Act and teleconferencing; and
WHEREAS, on June 11, 2021, the Governor of California executed Executive Order N - 08-21 which extende d the provisions of Executive Order N -29-20 concerning teleconference accommodations for public meetings through September 30, 2021; and
WHEREAS, on September 16, 2021, the Governor of California signed into law Assembly Bill 361 amending Government Code § 54953 and permitting members of a legislative body to teleconference into a meeting without having to comply with the requirements of subdivision (b)(3) Government Code § 54953 during a proclaimed state of emergency if a) State or local officials are im posing or recommending measures to promote social distancing, or b) the body finds that “as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees;” and
WHEREAS, AB 361 imposes requirements to ensure members of the public are able to attend and participate in public meetings of a legislative body conducted via teleconference, including:
• Notice of the means by which members of the public may access the meeting and offer public comment, including an opportunity for all persons to attend via a call - in option or an internet-based service option;
• The legislative body shall take no further act ion on agenda items when there is a disruption which prevents the public agency from broadcasting the meeting, or in
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the event of a disruption within the local agency’s control which prevents members of the public from offering public comments, until public access is restored;
• Prohibits the legislative body from requiring public comments to be submitted in advance of the meeting and specifies that the legislative body must provide an opportunity for members of the public to address the legislative body and offer comments in real time;
• Prohibits the legislative body from closing the public comment period until the public comment period has elapsed or until a reasonable amount of time has elapsed; and
WHEREAS, on October 13, 2021 , the City Council adopted Resolution 2021 -30, on November 10, 2021, the City Council adopted Resolution 2021 -33 and on December 8, 2021, the City Council adopted Resolution 2021 -37 and on January 12, 202 2, the City Council adopted Resolution 2022-01 and on January 26, 2022, the City Council adopted Resolution 2022 -06, and on February 23, 2022, the City Council adopted Resolution 2022-13, all finding that requiring in person attendance to participate in Council and Commission meetings would present imminent risks to the health or safety of attendees based upon the guidance of the Centers for Disease Control and Prevention (CDC), California Department of Public Health (CDPH), and/or County of Riverside, as applicable and given the higher prevalence of COVID-19 in Riverside County than in other parts of the State. Teleconferencing will provide increased meaningful participation options for both members of the legislative body and members of the public in a manner that protects the health and safety of the attendees, their families and other close contacts.
WHEREAS, pursuant to Government Code § 54953(e)(3), a legislative body that holds a meeting via teleconference pursuant to AB 361 must reconsider the circumstances of the state of emergency and make findings every 30 days to continue to meet via teleconference.
THEREFORE, BE IT RESOLVED by the City Council of the City of Cathedral City , California, as follows:
SECTION 1. The City Council hereby declares that the recitals set forth above are true and correct, and incorporated into this resolution as findings of the City Council.
SECTION 2. The City of Cathedral City continues to follow safety measures in response to COVID -19 as ordered or recommended by the Centers for Disease Control and Prevention (CDC), California Department of Public Health ( CDPH), and/or County of Riverside, as applicable . Based upon that guidance, in pe rson attendance indoors at public meetings continues to present a n imminent risk to the health and safety of attendees and those attendees have close contact with after attending a meeting in person. The City Council desires to ensure that all persons desi ring to attend public meetings may do so in a manner that protects the health and safety of the attendees, their families, and other close contacts. As of March 16, 2022, data from CDPH shows that Riverside County has a daily new COVID-19 case rate of 5.0 new cases per 100,000
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in population (seven-day average) and a COVID-19 test positivity rate of 2.1% (seven day rate), which is in-line with the statewide data of 7.2 new cases per 100,000 in population (seven day average) and a 1.4% test positivity rate (seven day rate). Given the fact that Riverside County has a high transmission rate , requiring in person attendance to participate in Council and Commission meetings would present imminent risks to the health or safety of attendees. T eleconferencing will provide increased meaningful participation options for both members of the legislative body and members of the public in a manner that protects the health and safety of the attendees, their families, and other close contacts.
SECTION 3. The City Council hereby declares that pursuant to the findings in Sections 1 and 2, the City Council and all other City legislative bodies subject to the Brown Act are authorized to utilize teleconferencing to conduct public meetings pursuant to AB 361 and Government Code § 54953, as amended thereby.
SECTION 4. The City staff is directed to agendize for Council consideration no less than every 30 days consideration of the need to continue with teleconferenced meetings as allowed by AB 361.
SECTION 5. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Resolution is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have adopted this Resolution and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional.
SECTION 6. This Resolution shall become effective immediately upon adoption.
PASSED, APPROVED AND ADOPTED, at a meeting of the City Council of the City of Cathedral City, California, on this 23rd day of March, 2022.
Ernesto Gutierrez, Mayor
ATTEST:
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
Eric S. Vail, City Attorney
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF CATHEDRAL CITY )
I, Tracey R. Hermosillo, City Clerk of the City of Cathedral City, California, hereby certify that Resolution No. 2022- was adopted by the City Council of the City of Cathedral City at a regular meeting held on the 23rd day of February, 2022, and that the same was adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________
TRACEY R. HERMOSILLO, CITY CLERK
CITY OF CATHEDRAL CITY
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Staff Report
City Council
Item No. 6.H
Meeting Date: March 23, 2022
From: Charles McClendon, City Manager
Title: Update on Emergency Actions Related to COVID-19
City Council
RECOMMENDATION:
Update on Status of Emergency Proclamation. Possible action to continue or rescind Resolution 2020-06.
Update on Emergency Actions taken by City, County, State of Federal Agencies.
Possible consideration of additional measures to be taken. Council may add items not listed on the agenda pursuant to Government Code section 54954.2 by majority vote.
6.H
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Staff Report
City Council
Meeting Date: March 23, 2022
From: Eric Vail, City Attorney
Title: Public Employee Performance Evaluation Pursuant to Government Code Section 54957 (B) and Conference with
Labor Negotiators Pursuant to Government Code 54957.6
Agency Representative: Mayor and City Attorney
Unrepresented Employee: City Manager
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