Agenda packet — Coachella City Council, February 11, 2026 (part 2 of 2)

Item 14.
80237.00857\44655897.1
Exhibit “J”
coverages. The Excess policy (or policies) shall not require the exhaustion of the underlying limits only through the actual payment by the underlying insurers.

This insurance will name the City as additional insured for ongoing and completed operations on a primary and non-contributory basis.

5. Professional Liability (Errors and Omissions)
If Provider provide engineering, design, supervision of interconnection systems, technical performance modeling, or similar Professional or Technical Services, Provider shall maintain Professional Liability insurance covering negligent acts, errors, and omissions arising out of such Professional Services in an amount not less than $10,000,000 Per Claim and Aggregate.

If Provider retain Subcontractors to provide Professional Services, Subcontractors shall be required to maintain Professional Liability coverage in an amount not less than $5,000,000 Per Claim and Aggregate.

This represents the minimum limit required and shall not be construed as confirmation that such limits are adequate to cover the risk.

All required Professional Liability coverage shall be maintained in force throughout the life of the contract and for a period of four (4) years following completion of services. The retroactive date of the Professional Liability policy must predate the beginning of any services provided under the contract and shall not be advanced during the period of time coverage is required to be maintained.

6. Pollution Liability
Provider shall maintain Pollution Liability in an amount not less than $10,000,000 Per Occurrence and $10,000,000 Aggregate.

If any Subcontractors retained by Provider perform remediation of hazardous material, or if their operations create an exposure to hazardous materials as those terms are defined in federal, state, or local law (including but not limited to battery storage chemicals, herbicides, and transformer oils) such parties shall maintain in force for the full period of this contract insurance covering losses caused by pollution incidents arising from the operations of such parties. This insurance shall apply to bodily injury, property damage, including loss of use of damaged property or of property that has not been physically injured, cleanup costs, and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims. The policy of insurance affording these required coverages shall be written in an amount of at least $5,000,000 Per Occurrence and $5,000,000 Aggregate.

The City shall be included as an additional insured, on a primary and non-contributory basis.

If Provider or Subcontractors, regardless of tier, haul hazardous material (including without limitation, waste) their Commercial Auto policy must include MCS 90 and ISO endorsement CA 99 48 or equivalent coverage.

7. Cyber Liability
Provider shall maintain Cyber Liability covering losses and claims arising from or related to unauthorized access to, or use of, Project data, SCADA systems, communications networks, monitoring platforms, or other IT systems; Data Breach; Network Security Failures; Cyber Extortion; and Business Interruption or Extra Expense resulting from a Cyber Incident. Coverage shall include third-party liability, regulatory actions, incident response costs, forensic investigation, data restoration, system restoration, and breach notification expenses. The limits maintained shall be no less than $5,000,000 Per Claim and Aggregate.

8. Property Insurance (All-Risk)

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Item 14.
80237.00857\44655897.1
Exhibit “J”
Beginning on the Utility Operations Date and continuing for the duration of the Operating Term, as defined in the agreement, the Provider shall procure and maintain Property Insurance covering all related infrastructure, equipment, facilities, and improvements owned by the CMU in connection with the NMU.

Coverage shall be written on an “all-risk” basis including coverage for physical loss or damage caused by Windstorm, Hail, Flood, Earthquake, Collapse, Theft, Vandalism, and Equipment Breakdown (including electrical arcing, mechanical breakdown, and transformer failure), to the extent commercially available and affordable. Pursuant to Section 9 of the Agreement, the City will be responsible to provide wildfire coverage for the assets of the CMU. In addition, Property Insurance shall include: Business Interruption, Electrical Generation Interruption, and/or Loss of Income in amounts sufficient to cover loss of revenue, operating margin, and fixed expenses during the period of restoration; Extra Expense coverage to minimize interruption or expedited repair costs; coverage for Renewable Energy Equipment (as applicable) including but not limited to photovoltaic modules, trackers, inverters, transformers, communications equipment, SCADA systems, battery-energy storage components, and interconnection facilities owned by the Operating Entity; and Utility Service Interruption coverage to the extent commercially available and affordable.

Property Insurance shall be maintained for the full replacement cost. Unless otherwise agreed, replacement cost valuation shall be based on: the current replacement cost of solar generating equipment and balance of plant (i.e. non-panel infrastructure) at the time of loss, and the full replacement cost of batteries or other energy storage equipment (if applicable).

The City shall be named as a Loss Payee, but only to the extent of their insurable interest in the Property.

If required by Loan or Finance Agreement, Lender shall be included as Loss Payee or Mortgagee pursuant to such agreement.

9. Equipment
Provider and Subcontractors are responsible for insuring their own tools, vehicles, drones, test equipment, SCADA laptops, and personal property. The City is not responsible for such equipment or property.

II. ADDITIONAL PROVISIONS AND CONDITIONS

1. Waiver of Subrogation
Nothing in this Section shall modify or expand the scope of indemnity, except to allocate responsibility between the Parties and their insurers consistent with the risk allocation set forth in this Agreement.

2. Cancellation of Insurance
If the insurance company elects to cancel or non-renew coverage for any reason other than nonpayment of premium Provider’ insurer or insurer’s representative will provide 30 days notice of such cancellation or nonrenewal.

3. Evidence of Insurance
Prior to commencement of services, Provider shall furnish the City with a Certificate of Insurance, executed by a duly authorized representative of each insurer, showing compliance with the insurance requirements set forth herein. Copies of all required endorsements shall be submitted with the Certificate of Insurance. If requested by the City, Provider shall furnish copies of policies for each coverage required.

4. Failure to Maintain Insurance
Failure to maintain the required insurance may result in termination of this contract at the City’s option.

5. Lower Tier Insurance

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Item 14.
80237.00857\44655897.1
Exhibit “J”
With the exception of Property Insurance, Provider shall require all Subcontractors to maintain insurance consistent with these requirements and shall be responsible for ensuring compliance.

6. Continuation of Coverage
All policies, coverages, and limits required by this agreement shall be maintained for a period of at least four (4) years following completion of services unless specified elsewhere in this Exhibit.

7. No Representation of Coverage Adequacy
Exhibit K shall not be construed as a representation or guarantee that such coverage and limits are adequate to protect the City, Provider, or any other party providing services in accordance with this Agreement, nor shall the requirement of such coverage and limits be deemed as a limitation of liability.

III. BOND AND FINANCIAL SECURITY REQUIREMENTS
The Provider may be required to maintain security requirements that may be satisfied with insurance or surety bonds. The Provider may also require surety bonds securing the Provider’ obligations by subcontractors, vendors and suppliers.

IV. CHANGES
The Parties acknowledge that insurance markets, statutory requirements, utility standards, and project risk profiles may change over time. The requirements applicable to the Operational Phase are therefore subject to adjustment in accordance with this Section. No Party shall be required to procure or maintain insurance coverage, bonds, or financial instruments beyond what is commercially reasonable, available, and customary for comparable public-private utility projects.

Accordingly, the Parties shall, in good faith, review the requirements for the Operational Phase set forth in this Exhibit K and may amend such requirements upon mutual written agreement. Any amendment shall be reasonably and proportionately based upon: (a) a material change in the scope or nature of the Work, (b) a change in applicable law, regulation, code, or binding industry standard, (c) a change in the commercial availability, terms, or pricing of the relevant insurance coverage, or (d) prevailing prudent practices within the utility, construction, or renewable-energy space.

The City shall have no unilateral right to increase the required limits or impose new obligations on the Provider or its Subcontractors, except as expressly allowed in this Section.

If any required coverage becomes commercially unavailable, the Parties shall work in good faith to agree on a commercially reasonable substitute.

V. OPTION TO USE ALTERNATIVE INSURANCE PROGRAMS
Provider may, in lieu of one or more of the insurance policies otherwise required under this Agreement, satisfy such requirements through the use of a project-specific insurance program, a master project insurance program, or any other consolidated or alternative insurance arrangement (collectively, an “Alternative Insurance Program”), provided that the coverage afforded by such Alternative Insurance Program is substantially equivalent to, or more comprehensive than, the coverage required under this Agreement, as determined by City in its reasonable discretion.

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Item 14.

STAFF REPORT
2/11/2026
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, P.E., Public Works Director/City Engineer SUBJECT: Amendment #1 with the following consultants for On Call Engineering Services Project No. 082522: AKEL Engineering Group, Inc., BSE Engineering Inc, Dudek, Heptagon Seven, Kimley-Horn, Michael Baker International, SVA Architects Inc., TKE Engineering Inc.

STAFF RECOMMENDATION:

Authorize City Manager to execute Amendment #1 with the following consultants for On Call Engineering Services Project No. 082522: AKEL Engineering Group, Inc., BSE Engineering Inc, Dudek, Heptagon Seven, Kimley-Horn, Michael Baker International, SVA Architects Inc., TKE Engineering Inc.

EXECUTIVE SUMMARY:

Staff published a Request for Qualifications for On Call Engineering Services Project 082522 in August 2022. Staff received a total of 21 responses. The responses were reviewed and scored by staff in the following departments: engineering, grants, public works and utilities. City Council authorized professional service agreements with 8 selected consultants in January 2023 for a three year term. These firms were: AKEL Engineering Group, Inc., BSE Engineering Inc, Dudek, Heptagon Seven, Kimley-Horn, Michael Baker International, SVA Architects Inc., TKE Engineering Inc. City staff and the consultants now desire to amend these on-call agreements for an additional one year term.

All agreements are for a one (1) year term with a not to exceed amount of $200,000 annually.

Award of these agreements will allow all city departments to use the services provided by these firms and eliminate delays in the execution of budgeted projects/operational needs/grant submittal needs that arise.

FISCAL IMPACT:

No fiscal impact. Task orders will be issued to currently budgeted projects.

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Item 15.

ATTACHMENTS:

1. Amendment #1 – AKEL Engineering Group, Inc.

2. Amendment #1 – BSE Engineering Inc.

3. Amendment #1 – Dudek

4. Amendment #1 – Heptagon Seven

5. Amendment #1 – Kimley-Horn

6. Amendment #1 – Michael Baker International

7. Amendment #1 – SVA Architects Inc.

8. Amendment #1 – TKE Engineering Inc.

Page 179 ends

Item 15.

FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF COACHELLA
AND BSE ENGINEERING INC.

THIS FIRST AMENDMENT ("Amendment") is made and entered into as of February 11,2026 by and between the City of Coachella ("City”) and BSE Engineering Inc. ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. RECITALS. This Amendment is made with the respect to the following facts and purposes:
a. On or about January 25th, 2023 the City and Consultant entered into that certain agreement entitled "City of Coachella Professional Services Agreement" between the City and Consultant to provide On-Call Engineering Services Project 082522, in the amount of not to exceed $200,000 annually.
b. The parties now desire to amend the Agreement as set forth in this Amendment.

2. AMENDMENT.

3.1.2 Term. Section 3.1.2 of the Agreement is hereby amended to go into effect on January 2, 2026 contingent upon approval by City, and Consultant shall commence work after notification to proceed by City’s Agreement Administrator. The Agreement shall end on January 1, 2027 unless extended by Agreement Amendment.

3.3 Allowable Costs and Payments. Section 3.3.1 of the Agreement is hereby amended to increase the compensation, including authorized reimbursements, for all services rendered under this Agreement as set forth in EXHIBIT “A” attached hereto and incorporated herein by reference.

The method of payment in Sections 3.3.1.A and B of the Agreement are hereby amended to actual cost plus a ten percent (10%) fixed fee. City will reimburse Consultant for actual costs (including labor costs, employee benefits, travel, equipment rental costs, overhead and other direct costs; plus ten percent fixed fee) incurred by Consultant in performance of the work. The total authorized compensation for the Amendment No. 1 is in the amount not to exceed Two Hundred Thousand Dollars and Zero Cents ($200,000.00).

The amended total compensation shall not exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00) without written approval of the City’s representative.

Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

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Item 15.

3.4 Continuing Effect of Agreement. Except as amended by this Amendment, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term "Agreement" appears in the Agreement, itshall mean the Agreement as amended by this Amendment.

3.5 Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment.

3.6 Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

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Item 15.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

CITY OF COACHELLA BSE ENGINEERING INC.

By: By:
____________________________ _____________________ ____ William B. Pattison Jr. Chief Operations Officer
City Manager Name
Approved as to Form: By:

Best Best & Krieger LLP Chief Financial Officer
City Attorney Name
Attest:
___________________________
Angela Zepeda
City Clerk

Page 182 ends

Item 15.

FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF COACHELLA
AND AKEL ENGINEERING GROUP INC.

THIS FIRST AMENDMENT ("Amendment") is made and entered into as of Febr uary 11,2026 by and between the City of Coachella ("City”) and Akel Engineering Group Inc. ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

2. AMENDMENT.

The amended total compensation shall not exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00) without written approval of the City’s representative.

Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

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Item 15.

3.6 Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

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Item 15.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

CITY OF COACHELLA AKEL ENGINEERING GROUP INC.

By: By:
____________________________ _____________________ ____ William B. Pattison Jr. Chief Operations Officer
City Manager Name
Approved as to Form: By:

Best Best & Krieger LLP Chief Financial Officer
City Attorney Name
Attest:
___________________________
Angela Zepeda
City Clerk

Page 185 ends

Item 15.

LABOR RATES

PERSONNEL
Technical Staff
GIS Technician $146 $150
Senior GIS Technician $176 $181

EXPENSES
Category
Subconsultant / Other Direct Costs Cost plus 5%
Notes:

1. Software usage costs are included in hourly rates shown.

2. AKEL Billing Rates are subject to an annual increase at the end of the fiscal year, to reflect labor rates and related cost adjustments.

Professional Services
Current Rates
July 1, 2025 to
June 30, 2026
Effective
July 1, 2026 to
June 30, 2027
Engineering Assistant $135 $139
Assistant Engineer $170 $175
Associate Engineer $199 $205
Senior Engineer $221 $228
Principal Engineer $269 $277
Senior Principal Engineer $298 $307
Support Staff
Administrative $116 $119

ATTACHMENT A

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Item 15.

FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF COACHELLA

AND DUDEK
THIS FIRST AMENDMENT ("Amendment") is made and entered into as of February 11,2026 by and between the City of Coachella ("City”) and Dudek ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

2. AMENDMENT.

The amended total compensation shall not exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00) without written approval of the City’s representative.

Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

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Item 15.

3.6 Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

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Item 15.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

CITY OF COACHELLA DUDEK
By: By:
____________________________ _____________________ ____ William B. Pattison Jr. Chief Operations Officer
City Manager Name
Approved as to Form: By:

Best Best & Krieger LLP Chief Financial Officer
City Attorney Name
Attest:
___________________________
Angela Zepeda
City Clerk

Page 189 ends

Item 15.

DUDEK 2026 Standard Schedule of Charges
Engineering Services
Project Director........................................................................$350.00/hr Principal Engineer lll................................................................$330.00/hr Principal Engineer II ................................................................$310.00/hr Principal Engineer I .................................................................$300.00/hr Program Manager....................................................................$285.00/hr Senior Project Manager ..........................................................$285.00/hr Project Manager......................................................................$275.00/hr Senior Engineer III....................................................................$270.00/hr Senior Engineer II.....................................................................$260.00/hr Senior Engineer I......................................................................$250.00/hr Project Engineer IV/Technician IV .........................................$240.00/hr Project Engineer llI/Technician III..........................................$230.00/hr Project Engineer lI/Technician II............................................$215.00/hr Project Engineer I/Technician I..............................................$200.00/hr 3D Production Manager..........................................................$225.00/hr Senior Designer II.....................................................................$220.00/hr Senior Designer I......................................................................$210.00/hr Designer...................................................................................$195.00/hr Assistant Designer...................................................................$190.00/hr CADD Operator III.....................................................................$210.00/hr CADD Operator II......................................................................$205.00/hr CADD Operator I.......................................................................$165.00/hr CADD Drafter............................................................................$185.00/hr CADD Technician .....................................................................$135.00/hr Project Coordinator II ..............................................................$165.00/hr Project Coordinator I ...............................................................$135.00/hr Engineering Assistant..............................................................$130.00/hr Environmental Services
Senior Project Director............................................................$375.00/hr Project Director........................................................................$350.00/hr Senior Specialist V...................................................................$290.00/hr Senior Specialist IV..................................................................$275.00/hr Senior Specialist III..................................................................$260.00/hr Senior Specialist II...................................................................$245.00/hr Senior Specialist I....................................................................$230.00/hr Specialist V...............................................................................$220.00/hr Specialist IV..............................................................................$205.00/hr Specialist III..............................................................................$195.00/hr Specialist II...............................................................................$185.00/hr Specialist I................................................................................$175.00/hr Analyst V...................................................................................$165.00/hr Analyst IV..................................................................................$155.00/hr Analyst III ..................................................................................$145.00/hr Analyst II ...................................................................................$135.00/hr Analyst I ....................................................................................$115.00/hr Technician IV............................................................................$105.00/hr Technician III............................................................................$95.00/hr Technician II.............................................................................$85.00/hr Technician I..............................................................................$75.00/hr Project Coordinator II ..............................................................$165.00/hr Project Coordinator I ...............................................................$135.00/hr Mapping and Surveying Services
UAS Pilot...................................................................................$180.00/hr Survey Lead .............................................................................$310.00/hr Survey Manager.......................................................................$270.00/hr Survey Crew Chief....................................................................$205.00/hr Survey Rod Person..................................................................$155.00/hr Survey Mapping Technician ...................................................$145.00/hr Construction Management Services
Principal Manager ...................................................................$225.00/hr Senior Construction Manager ................................................$195.00/hr Senior Project Manager ..........................................................$190.00/hr Construction Manager ............................................................$190.00/hr Project Manager/Construction Management.......................$180.00/hr Resident Engineer...................................................................$175.00/hr Construction Engineer.............................................................$180.00/hr On-site Owner’s Representative.............................................$165.00/hr Prevailing Wage Inspector......................................................$165.00/hr Construction Inspector............................................................$155.00/hr Administrator/Labor Compliance...........................................$130.00/hr Hydrogeology/HazWaste Services
Project Director........................................................................ $350.00/hr Principal Hydrogeologist/Engineer III .................................... $330.00/hr Principal Hydrogeologist/Engineer II ..................................... $320.00/hr Principal Hydrogeologist/Engineer I ...................................... $310.00/hr Senior Hydrogeologist V/Engineer V...................................... $285.00/hr Senior Hydrogeologist IV/Engineer IV.................................... $275.00/hr Senior Hydrogeologist III/Engineer III.................................... $265.00/hr Senior Hydrogeologist II/Engineer II...................................... $255.00/hr Senior Hydrogeologist I/Engineer I........................................ $245.00/hr Project Hydrogeologist V/Engineer V..................................... $235.00/hr Project Hydrogeologist IV/Engineer IV................................... $225.00/hr Project Hydrogeologist III/Engineer III ................................... $215.00/hr Project Hydrogeologist II/Engineer II ..................................... $205.00/hr Project Hydrogeologist I/Engineer I ....................................... $195.00/hr Hydrogeologist/Engineering Assistant .................................. $150.00/hr HazMat Field Technician ........................................................ $140.00/hr District Management & Operations
District General Manager ....................................................... $225.00/hr District Engineer...................................................................... $230.00/hr Operations Manager............................................................... $170.00/hr District Secretary/Accountant................................................ $155.00/hr Collections System Manager.................................................. $155.00/hr Grade V Operator .................................................................... $145.00/hr Grade IV Operator ................................................................... $130.00/hr Grade III Operator.................................................................... $120.00/hr Grade II Operator..................................................................... $100.00/hr Grade I Operator...................................................................... $95.00/hr Operator in Training ................................................................ $85.00/hr Collection Maintenance Worker............................................. $90.00/hr Project Delivery Services
Technology Specialist II .......................................................... $245.00/hr Technology Specialist I ........................................................... $190.00/hr GIS Analyst V............................................................................ $220.00/hr GIS Analyst IV........................................................................... $200.00/hr GIS Analyst III........................................................................... $185.00/hr GIS Analyst II............................................................................ $145.00/hr GIS Analyst I............................................................................. $130.00/hr Creative Services IV ................................................................ $190.00/hr Creative Services III................................................................. $165.00/hr Creative Services II.................................................................. $150.00/hr Creative Services I................................................................... $135.00/hr Technical Editor lV................................................................... $190.00/hr Technical Editor lll ................................................................... $165.00/hr Technical Editor ll.................................................................... $155.00/hr Technical Editor l..................................................................... $135.00/hr Publications Specialist lV........................................................ $140.00/hr Publications Specialist lll........................................................ $130.00/hr Publications Specialist ll......................................................... $120.00/hr Publications Specialist l.......................................................... $110.00/hr Clerical Administration............................................................ $100.00/hr Expert Witness – Court appearances, depositions, and interrogatories as expert witness will be billed at 2.00 times normal rates.

Emergency and Holidays – Minimum charge of two hours will be billed at 1.75 times the normal rate.

Material and Outside Services – Subcontractors, rental of special equipment, special reproductions and blueprinting, outside data processing and computer services, etc., are charged at 1.15 times the direct cost.

Travel Expenses – Mileage at current IRS allowable rates. Per diem where overnight stay is involved is charged at cost
Invoices, Late Charges – All fees will be billed to Client monthly and shall be due and payable upon receipt. Invoices are delinquent if not paid within 30 days from the date of the invoice. Client agrees to pay interest at a 10% annual rate for amounts unpaid greater than 30 days after the date of the invoice.

Annual Increases – Unless identified otherwise, these standard rates will increase in line with the CPI-U for the nearest urban area per the Department of Labor Statistics to where the work is being completed) or by 3% annually, whichever is higher.

Prevailing Wage – The rates listed above assume prevailing wage rates do not apply.

If this assumption is incorrect Dudek reserves the right to adjust its rates accordingly.

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Item 15.

FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF COACHELLA

AND HEPTAGON SEVEN
THIS FIRST AMENDMENT ("Amendment") is made and entered into as of February 11,2026 by and between the City of Coachella ("City”) and Heptagon Seven ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

2. AMENDMENT.

The amended total compensation shall not exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00) without written approval of the City’s representative.

Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

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Item 15.

3.6 Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

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Item 15.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

CITY OF COACHELLA HEPTAGON SEVEN
By: By:
____________________________ _____________________ ____ William B. Pattison Jr. Chief Operations Officer
City Manager Name
Approved as to Form: By:

Best Best & Krieger LLP Chief Financial Officer
City Attorney Name
Attest:
___________________________
Angela Zepeda
City Clerk

Page 193 ends

Item 15.

ATTACHMENT A

COMPENSATION
Section D. Cost Proposal
For projects with a well-defined scope of work, Heptagon Seven prefers to provide Lump Sum amounts per work order tasks, providing back up of work hours per task. For those instances where the scope of work is not well-defined or as directed by City Staff, Heptagon Seven will provide services at the request of the Client on an hourly basis, based on the following breakdown. To the extent possible with each requested task where applicable, Consultant will provide an anticipated hourly estimate for each requested service prior to initiating said service. • Project Manager
• Project Engineer
• Principal Landscape Architect
• Project Manager (LA)
• Graphic Specialist (LA)
• CAD Designer (LA)
• Principal Surveyor
• Designer/ Survey Analyst
• 2 Man Survey Crew
• Administrative Assistant
$200 I hour
$175 / hour
$150 / hour
$110 / hour
$110 / hour
$95 I hour
$200 I hour
$135 / hour
$295 I hour (Prevailing Wage rate)
$90 I hour
Due to the possible length of this On Call Engineering, the Heptagon Seven Team's Hourly Rates are reviewed on an annual basis and adjusted for cost of living and employee wage increases. Therefore, we request the ability to revisit the above noted rates on a yearly basis.

The final annual rates will be negotiated with the City and updated only upon City approval.

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Item 15.

FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF COACHELLA
AND TKE ENGINEERING INC.

THIS FIRST AMENDMENT ("Amendment") is made and entered into as of February 11,2026 by and between the City of Coachella ("City”) and TKE Engineering Inc. ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

2. AMENDMENT.

The amended total compensation shall not exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00) without written approval of the City’s representative.

Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

Page 195 ends

Item 15.

3.6 Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

Page 196 ends

Item 15.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

CITY OF COACHELLA TKE ENGINEERING INC.

By: By:
____________________________ _____________________ ____ William B. Pattison Jr. Chief Operations Officer
City Manager Name
Approved as to Form: By:

Best Best & Krieger LLP Chief Financial Officer
City Attorney Name
Attest:
___________________________
Angela Zepeda
City Clerk

Page 197 ends

Item 15.

Revised June 2025

RATE SCHEDULE
2025-2026
HOURLY
RATE
Principal in Charge.. .......... .......... .......... ...................... .......... .......... .......... $190.00 Project Manager/Construction Manager/Licensed Surveyor ..... .......... .......... $180.00 Traffic Engineer (TE).......... .......... .......... ...................... .......... .......... .......... $190.00 Senior Engineer/Project Engineer (PE)/Senior Plan Checker.... .......... .......... $170.00 Assistant Project Manager/Associate Engineer.............. .......... .......... .......... $160.00 Assistant Engineer/Plan Checker/Designer.................... .......... .......... .......... $150.00 AutoCAD Technician.......... .......... .......... ...................... .......... .......... .......... $140.00 Engineering Technician...... .......... .......... ...................... .......... .......... .......... $110.00 Clerical ........ .......... ......... .......... .......... ...................... .......... .......... .......... $ 95.00 Forensic Engineering ......... .......... .......... ...................... .......... .......... .......... $305.00 Expert Witness Testimony .......... .......... ...................... .......... .......... .......... $405.00

SURVEYING SERVICES
2-Man Survey Crew (Prevailing Wage).... ...................... .......... .......... .......... $265.00

DEVELOPMENT SERVICES
Managing Director... .......... .......... .......... ...................... .......... .......... .......... $190.00 Senior Project Manager ..... .......... .......... ...................... .......... .......... .......... $140.00 Project Manager...... .......... .......... .......... ...................... .......... .......... .......... $110.00

CONSTRUCTION SERVICES
Senior Construction Inspector (Prevailing Wage) ........... .......... .......... .......... $140.00 Construction Inspector (Prevailing Wage) ...................... .......... .......... .......... $135.00

REIMBURSABLE COSTS
In-house Reproduction ...... .......... .......... ...................... .......... .......... .......... Cost Printing and Materials ........ .......... .......... ...................... .......... .......... .......... Cost + 10% Express Mail/Courier/Next Day Service .. ...................... .......... .......... .......... Cost + 10% Special Subconsultant Services ... .......... ...................... .......... .......... .......... Cost + 10%

ATTACHMENT A

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Item 15.

FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF COACHELLA

AND MICHAEL BAKER INTERNATIONAL
THIS FIRST AMENDMENT ("Amendment") is made and entered into as of February 11,2026 by and between the City of Coachella ("City”) and Michael Baker International ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

2. AMENDMENT.

The amended total compensation shall not exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00) without written approval of the City’s representative.

Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

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Item 15.

3.6 Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

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Item 15.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

CITY OF COACHELLA MICHAEL BAKER INTERNATIONAL
By: By:
____________________________ _____________________ ____ William B. Pattison Jr. Chief Operations Officer
City Manager Name
Approved as to Form: By:

Best Best & Krieger LLP Chief Financial Officer
City Attorney Name
Attest:
___________________________
Angela Zepeda
City Clerk

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Item 15.

FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF COACHELLA

AND KIMLEY-HORN
THIS FIRST AMENDMENT ("Amendment") is made and entered into as of February 11,2026 by and between the City of Coachella ("City”) and Kimley-Horn ("Consultant").

In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

2. AMENDMENT.

The amended total compensation shall not exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00) without written approval of the City’s representative.

Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

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Item 15.

3.6 Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

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Item 15.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

CITY OF COACHELLA KIMLEY-HORN
By: By:
____________________________ _____________________ ____ William B. Pattison Jr. Chief Operations Officer
City Manager Name
Approved as to Form: By:

Best Best & Krieger LLP Chief Financial Officer
City Attorney Name
Attest:
___________________________
Angela Zepeda
City Clerk

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Item 15.

Hourly Labor Rate Schedule
Classification Rate
Analyst I $145 - $175
Analyst II $185 - $220
Professional $215 - $250
Senior Professional I $265 - $345
Senior Professional II $360 - $430
Senior Technical Support $130 - $310
Technical Support $105 - $180
Support Staff $95 - $160
BR00PUSTD.A.001
Effective through June 30, 2026. Subject to annual adjustment thereafter.

Other Direct Costs: Outside Printing/Reproduction, Deliver Services/USPS, Misc.

Field Equipment/Supplies, and Travel Expenses will be billed at cost plus 10% markup or per the contract. Mileage will be billed at the Federal Rate.

Sub-Consultants will be billed at 10% mark-up or per the Contract.

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Item 15.

FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF COACHELLA
AND SVA ARCHITECTS INC.

THIS FIRST AMENDMENT ("Amendment") is made and entered into as of February 11,2026 by and between the City of Coachella ("City”) and SVA Architects Inc. ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

2. AMENDMENT.

The amended total compensation shall not exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00) without written approval of the City’s representative.

Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

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Item 15.

3.6 Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

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Item 15.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

CITY OF COACHELLA SVA ARCHITECTS INC.

By: By:
____________________________ _____________________ ____ William B. Pattison Jr. Chief Operations Officer
City Manager Name
Approved as to Form: By:

Best Best & Krieger LLP Chief Financial Officer
City Attorney Name
Attest:
___________________________
Angela Zepeda
City Clerk

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Item 15.

Hourly Billing Rate Breakdown
SVA ARCHITECTS, INC.

Position Hourly Billing Rate
Partner $275
Principal $250
Sr. Project Architect / Manager $215
Sr. Designer / Planner $215
Project Architect / Manager $195
Designer / Planner $195
Job Captain $175
Intermediate Technical Designer $140
Junior Technical Designer $115
Administrative Staff $85

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Item 15.

CITY OF COACHELLA

E C O N O M I C D E V E L O P M E N T D E P A R T M E N T

REQUEST FOR PROPOSALS

LEASE OF BUILDING LOCATED AT
1258 SIXTH STREET COACHELLA, CA 92236
Solicitation Issued: December 18, 2025
Key Dates
▪ RFP Release Date: December 18, 2025
▪ Site Visit: January 6, 2026 from 10:00 AM – 11:00 AM
▪ Proposals Due: January 29, 2026 by 4:00 PM PST
▪ Review of Proposals: January 30 – February 5, 2026
▪ City Council Consideration: February 25, 2026

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Item 16.
1 CITY OF COACHELLA

E C O N O M I C D E V E L O P M E N T D E P A R T M E N T

REQUEST FOR PROPOSALS

LEASE OF BUILDING LOCATED AT
1258 SIXTH STREET COACHELLA, CA 92236

RFP RESPONSE CERTIFICATION COVER FORM
Instruction: To fulfill your RFP response, this form must be completed, printed, signed and included with your submission.

FIRM/PROPOSER NAME:

ADDRESS:

CITY, STATE, ZIP
EMAIL:

TELEPHONE:

WEBSITE or SOCIAL MEDIA HANDLE:

AUTHORIZED PERSON NAME (TYPE
NAME)
AUTHORIZED SIGNATURE:

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Item 16.
2 Table of Contents
Section Page
I. Introduction 3
II. Invitation to Propose 3
III. Building Description 4
IV. Goals/Objectives 4
V. Proposal Requirements 6
VI. Lease Terms and Economic Development Incentives 8
VII. Instructions and Schedule for Submitting of Proposals 8 VIII. RFP Inquiries 9
IX. Public Records 9
X. Evaluation Process and Selection Criteria 10
Exhibit “A” – Site Map 11
Exhibit “B” – Site Pictures 12
Exhibit “C” – Lease Agreement Template 14

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Item 16.
3 I. Introduction
The City of Coachella is known as the “City of Eternal Sunshine” and the “Gateway to the Salton Sea”, and along with its largely young, rural and family oriented demographics makes it one of the most appealing and up-and-coming areas in Southern California and the County of Riverside. The City of Coachella was incorporated on December 13, 1946. According to the 2010 U.S. Census and Southern California Association of Governments (SCAG), the City of Coachella has a population of over 46,000 people with forecasting numbers that indicate a population of 135,000 by 2035, making it the 2nd largest city in the Coachella Valley. The City has over 29 square miles of mix use zoning opportunities, such as agriculture, commercial retail, industrial and housing. This culturally rich and family oriented City has a median age of 24.5 years old with an average family size of

4.57/household.

II. Invitation to Propose
The City of Coachella is pleased to offer an exciting economic development opportunity for a well‐qualified business entity to operate within the 722 square foot former Chamber of Commerce building located at 1258 Sixth Street in the Downtown Pueblo Viejo District (APN: 778-110-003-7).

Qualified proposals must demonstrate experience, and knowledge of restaurant/retail business operations—including financing, marketing, design, leasing, management and oversight. It is further expected that proposals will be based on a thorough understanding of existing and future business market conditions and trends and that final proposals will contain realistic financial projections.

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Item 16.
4 III. Building Description
The existing 722 square foot building is on 0.14 acres (6,098 square feet) and is in the CG (Commercial General) Zone, please see site map and site pictures (Exhibit “A” and “B”). The project site has existing separate utility connections.

IV. Goals/Objectives
The goals/objective of this Request for Proposals (RFP) is to award a long term lease to tenant who will accomplish the following:
• Provide a unique destination restaurant and/or related retail operation with a distinctive menu/experience that will cater to visitors of the Downtown Pueblo Viejo District and draw people to the area for a memorable experience;
• Develop a creative façade and tenant improvement design that utilizes the current amenities of the City Hall campus;
• Maximize foot traffic through featured menu items, service, ambiance, and special events marketing;

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Item 16.
5 • Assess, provide, and install all necessary furnishings and equipment in order to create an attractive and inviting destination;
• Implement quality marketing and advertising campaign; and • Work in a collaborative effort with the City to incorporate to the vision of a walkable and sustainable Downtown Pueblo Viejo District and ensure an optimum experience for those going to the new City Library, expanded Senior Center, City Hall, new County DPSS Building, new Palm View Elementary and the surrounding community.

Furthermore, the proposed restaurant/retail development will promote public enjoyment, provide job opportunities for local residents, and complement the Downtown Pueblo Viejo Implementation Plan (”Plan). (Please note the Plan is available on the website - https://www.coachella.org/departments/pueblo-viejorevitalization-plan) Eligible Projects:
• Restaurant/Café/Deli – (Diverse Food Menu Preferred)
• Bar/Saloon
• Retail Store (Non-Cannabis)
• Business/Sales Tax Generating Incubator
• Art Gallery
Ineligible Projects:
• Visitor Center
• Non-Profit Organization
• Church
• Dispensary

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Item 16.
6 V. Proposal Requirements
Interested parties shall submit written proposals that contain the following essential elements:

A. Conceptual: Please describe in detail the business concept being proposed and how it will fit into the Downtown Pueblo Viejo District and compliment the culture and quality of life. Provide preliminary plans, sections, diagrams and elevations in sufficient detail showing the manner in which proposer plans to develop the premises as follows:
• Floor plans of space showing proposed uses, layout, circulation and utilities.
• Proposed integration with the Downtown Pueblo Viejo District Design Guidelines, on City website
https://www.coachella.org/departments/pueblo-viejo-revitalization-plan. • One or more architectural rendering(s) of business indicating layout of space, general color scheme, style of furniture, fixtures, materials to be used for flooring, walls and lighting.
• For all products, please include quality grade, brand names and anticipated costs.

B. Business Plan, Marketing and Customer Service: Please describe the business and marketing plan proposed for use in operations, with an emphasis on measures designed to obtain maximum patronage during peak and non‐peak periods. Please include any market study analysis or Pro Forma statements that will illustrate the viability, sustainability and importance of proposed business:
• Describe customer service objectives for the business, specifically employee training and retention programs to support and meet objectives.
• Menu (if applicable): include a copy of the proposed menu for the restaurant Menu: include a copy of the proposed menu for the restaurant food/beverage and any associated merchandise being proposed, which includes non‐alcoholic and alcoholic beverages indicating as applicable portion size, suggested price, and name brands.

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Item 16.
7 • Hours: provide proposed days and hours of operation for the proposed business.

C. Project Team (Proposer): Please describe a brief history and experience of the proposer and their team:
• Operational: submit sufficient information to allow the City to evaluate the management structure and operating program of the proposed business concept.
• Business operations: describe current business operations. Please note that City staff may elect to perform a site visit to review/confirm current business conditions
• Minimum Qualifications: provide evidence that the proposer has experience in business administration and be able to show progressive quality management of similar types of business for the past five (5) years.
• References: provide references to evidence the minimum experience requirements, including the name of the operation, address, contact person, telephone number, and annual gross sales generated.
• Management Structure: describe the management structure to be employed in the operation of the business. Please include a job description for the on‐site manager, include the number of employees and a proposed daily schedule to deliver good customer service during the proposed hours of operation.
• Insurance Coverage: provide evidence that the proposer has the ability to obtain the necessary insurance required for the operation of the proposed business. Acceptable evidence includes letters from the proposer’s insurance company dated no earlier than two weeks before the submittal deadline date and signed by an officer of the insurance and security provider.

D. Capital Investment: Please provide the cost for interior construction, finishes, furnishings, fixtures, trade equipment, and architectural and engineering fees and the proposed method of financing, such as small business loan, micro-loan, saving account, etc. The applicant will be responsible for ALL tenant improvements and obtaining all the necessary permits. Please note that the City has pre-existing utility connections that

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Item 16.
8 will be changed to the new tenant once the Lease Agreement has been executed.

VI. Lease Terms and Economic Development Incentives
Multiple City incentives will be available to the selected restaurant/retail space operator which include, but are not limited to:
• Fast Track Permitting Assistance/Ombudsman Service: The City’s Economic Development team will assist with expediting the permit approval process and will monitor the permit application through the development review and approval process. Furthermore, the Economic Development team will provide personalized ombudsman assistance which simplifies the process of navigating City departments and processes. All tenant improvement application and inspection fees will be waived.
• City will subsidize the lease rate with potential tenant until the full cost of their tenant improvements has been recovered – 3 years maximum. • Lease Rate will be $2.00/square foot after cost of tenant improvements have been recovered or 3 years have passed, which ever one if first. • Lease Term – 3 years maximum (with an opportunity to renew).

VII. Instructions and Schedule for Submitting of Proposals The City shall not be liable for any expenses incurred by any proposer in relation to the preparation or submittal of Proposals. Expenses include, but are not limited to, expenses by proposer in: preparing a Proposal or related information in response to RFP; negotiations with City on any matter related to this RFP; and costs associated with interviews, meetings, travel or presentations. Additionally, City shall not be liable for expenses incurred as a result of City’s rejection of any Proposals made in response to this RFP.

Proposals are due by 4:00 PM on January 29, 2026. This time and date is fixed and extensions will not be granted. The City does not recognize the U. S. Postal Service, its postmarks or any other organization as its agent for purposes of dating

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Item 16.
9 the Proposal. All Proposals received after the deadline shown will be rejected and will not receive further consideration. Furthermore, the City reserves the right to reject any and all Proposals and to waive information and minor irregularities in any Proposal received. Proposal packets received will be the property of the City.

Below is the anticipated schedule:
▪ RFP Release Date: December 18, 2025
▪ Site Visit: January 6, 2026 from 10:00 AM – 11:00 AM
▪ Proposals Due: January 29, 2026 by 4:00 PM PST
▪ Review of Proposals: January 30 – February 5, 2026
▪ City Council Consideration: February 25, 2026
Mail, hand‐deliver or e-mail Proposal to:

City of Coachella
Economic Development Department
53462 Enterprise Way, Coachella, CA 92236
Attn: Celina Jimenez, Director of Economic Development
E-mail: [email protected]
Tel. (760) 262-6263
VIII. Public Records
All proposals submitted in response to this RFP become property of the City and under the Public Records Act (Government Code § 6250 et. seq.) are public records, and as such may be subject to public review at least ten (10) days before selection and award.

If a proposer claims a privilege against public disclosure for trade secret or other proprietary information, such information must be clearly identified in the Proposal. Personal information should be labeled as confidential and will remain so. Note under California law, a price proposal to a public agency is not a trade secret.

IX. Evaluation Process and Selection Criteria
The City will conduct the selection process. The City is the final decision‐maker regarding this selection, and it reserves the right to reject any or all responses or to terminate development negotiations at any time. The City reserves the right to request clarification or additional information from individual respondents and to request some or all respondents to make presentations to City staff, community

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Item 16.
10 groups, or others.

As part of the evaluation process, the City expects to interview some, but not necessarily all, of the parties submitting proposals.

The intent of the RFP step of this selection process is to identify qualified parties interested in operating and maintaining a full‐service business and related amenities within the Downtown Pueblo Viejo District. The selection of a qualified proposer will be based generally upon his/her experience in the retail/restaurant business industry and ability to demonstrate progressive quality business management practices for over a five (5) year period, including the quality of the proposed business and capacity to carry out the business development in a carefully and coordinated manner with the full collaboration of the City.

The proposal will be evaluated based upon the following criteria:

Selection Criteria – Chamber of Commerce Building Proposed Business Score:

Benefit of Proposed Business to the Downtown Pueblo Viejo District
30 Strength of Business Team and Management Experience 25 Financial Strength & Capital Accessibility 20
Quality of Proposed Business Plan 15
Conceptual Rendering and Floor Plan 10
TOTAL: 100

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Item 16.
11 Exhibit “A”
Site Map

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Item 16.
12 Outside:

Exhibit “B”
Site Pictures

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Item 16.
13 Inside:

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Item 16.
14 Exhibit “C”
Lease Agreement Template - DRAFT

LEASE AGREEMENT

BETWEEN THE CITY OF COACHELLA AND

LESSEE FOR RETAIL SPACE
THIS LEASE AGREEMENT (the "Lease") is made as of [month] [day], 202_ by and between THE CITY OF COACHELLA, a California municipal corporation (the "Lessor"), and ENTITY NAME, a private entity (the "Lessee"), with reference to the following facts:

RECITALS
A. The City owns a 722 square foot, Chamber of Commerce building, located at 1258 Sixth Street, Coachella, CA 92236, which is described in Exhibit “A” (the “Leased Premises”); and
B. Lessee desires to lease all 722 square feet in the Leased Premises from the City for retail space and programming use; and
C. Lessee will be responsible for all tenant improvements and utility services; and D. Lessee is eligible for all Economic Development Incentives provided in Section 5 of this agreement as approved by the City Council at their meeting of DATE; and E. Lessor will not be liable or responsible for any damage or injury occurring on the Leased Premises; and
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

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Item 16.
15 AGREEMENT

1. Recitals. Lessor and Lessee acknowledge the Recitals set forth above which are incorporated herein by this reference together with the Exhibits attached hereto.

2. Leasehold. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental and upon the conditions set forth herein. Lessee accepts the Premises, including the appurtenant improvements, structures, and facilities, if any, in "AS IS" condition.

3. Premises. The Premises described in Exhibit "A" amounts to an area of approximately 722 square feet. Upon execution of this Lease, Lessor grants to Lessee the right to survey the Premises (the "Survey") and such Survey, if performed, shall replace Exhibit "B" as the description of the Premise

4. Term of Lease.
a) The original term of the Lease shall be for a three (3) year period commencing on Month XX, 202_ and terminating on Month XX, 202__ (the "Term"). b) During the Term of this Lease, Lessee shall pay to Lessor as rent the sum of $$ per month, once all the costs of the tenant improvements have been recovered by the Lessee. In no event will the City cover costs of tenant improvements in excess of total rents.
c) The annual rent will be paid by the Lessee to the Lessor in advance of the 27th day of each month and continuing throughout the term of this Lease. d) Where to Pay Rent. All rent shall be paid to Lessor at the address specified below in Section 19.

5. Economic Development Incentives.
a) Fast Track Permitting Assistance/Ombudsman Service: The City’s Economic Development team will assist with expediting the permit approval process and will monitor the permit application through the development review and approval process. Furthermore, the Economic Development team will provide personalized ombudsman assistance which simplifies the process of navigating City departments and processes.
b) All tenant improvement application and inspection fees will be waived.

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Item 16.
16 c) City will subsidize the lease rate with Lessee until the full cost of their tenant improvements has been recovered – three (3) years maximum. d) Lease Rate will be $2.00/square foot after cost of tenant improvements have been recovered.
e) Lease Term – 3 years maximum (with an opportunity to renew).

6. Utilities, Maintenance and Insurance.
a) Utilities. Lessee shall make all arrangements for and shall pay for all utilities and services furnished to the Premises or used by Lessee on the Premises, including, without limitation: electricity, water, sewer, internet and trash removal services.

Lessee shall pay for any and all charges for establishment or connection of utility services to the Premises.
b) Maintenance. Lessor shall provide all maintenance and repairs, at Lessor’s sole cost and expense, to keep the Premises in good order and condition, including, without limitation, weed abatement, fencing, all improvements existing at the commencement of this Lease, and any improvements approved by the Lessor to be constructed and/or installed by the Lessee during the term of this Lease. c) Insurance. All insurance carried by Lessee shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only. Lessee shall carry and maintain, during the entire term hereof, at Lessee's sole cost and expense, the following types of insurance in the amounts specified and in the form provided for in this section:
i. Public Liability and Property Damage. Broad-form comprehensive public liability insurance with limits of not less than One Million Dollars ($1,000,000) per person and One Million Dollars ($1,000,000) each occurrence, insuring against any and all liability of Lessee with respect to the Premises or arising out of the maintenance, use or occupancy thereof, and property damage liability insurance with a limit of not less than One Million Dollars ($1,000,000) each accident, or One Million Dollars ($1,000,000) combined single limit.
ii. Property Insurance. Lessee shall obtain and maintain in force a policy or policies of insurance in the name of Lessee, with any loss payable to Lessee, and any lender of Lessor insuring against loss or damage to the improvements on the Premises, including, without limitation, any

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Item 16.
17 improvements installed or constructed by Lessee. The amount of such insurance shall be equal to the full insurable replacement cost of such improvements, as the same shall exist from time to time, or the amount required by any lender of Lessor, but in no event more than the commercially reasonable and available insurance value thereof. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct loss or physical damage (except the perils of flood and earthquake unless required by a lender of Lessor). If such insurance coverage has a deductible clause, the deductible amount shall not exceed 'the amount permitted by a lender of Lessor. In the event any casualty results in damage to the improvements on the Premises which are the property of Lessor (and not constructed or installed by Lessee in accordance with the provisions hereof), Lessee shall either (i) use the proceeds of insurance to cause the restoration of such property of Lessor or (ii) pay or cause payment to Lessor or any lender of Lessor in an amount of the proportionate share of insurance proceeds attributable to damage to such property of Lessor.
iii. Delivery of Certificate of Insurance. Lessee shall deliver to Lessor certificates of insurance evidencing the insurance procured by Lessee, which certificates shall name Lessor as an additional insured together with any lender of Lessor. The Certificates of Insurance shall be delivered by Lessee to Lessor at the time of the execution of the Lease and shall be monitored regularly.
iv. Notice of Cancellation. All insurance p o l i c i e s s h a l l contain a provision that such policies shall not be canceled or terminated without thirty (30) days' prior notice from the insurance company to Lessor.

Lessee agrees that on or before thirty (30) days prior to expiration of any insurance policy, Lessee will deliver to Lessor written notification in the form of a receipt or other similar document from the applicable insurance company that said policy or policies have been renewed, or deliver certificates of coverage from another good and solvent insurance company for such coverage.

7. Use. Lessee shall use and occupy the Premises for purposes of retail space and programming use. Lessee shall not use the Premises for the purposes of storing, manufacturing or selling any inherently dangerous substance, chemical, thing, or device.

8. Hazardous Substances and Hazardous Materials.
a) Defined. For purposes of this Lease, the term "Hazardous Substances" shall be as defined in the Comprehensive Environmental Response, Compensation,

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Item 16.
18 and Liability Act, 42 U.S.C. §§ 9601 et seq., and any regulations promulgated pursuant thereto, and as used to define "Hazardous Wastes" in the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., and any regulations promulgated thereto, or as may be identified or defined by any federal, state or local law or regulation.
b) Prohibition and Indemnity. Lessee shall not (either with or without negligence) cause or permit the use, storage, generation, escape, disposal or release of any Hazardous Substances or Hazardous Wastes in any manner not sanctioned by law. In all events, Lessee shall indemnify and hold Lessor harmless from any and all claims, damages, fines, judgments, penalties, costs, liabilities or losses (including, without limitation, any and all sums paid for settlement of claims, attorneys' fees, and consultants' and experts' fees) (collectively "Claims") from the presence or release of any Hazardous Substances or Hazardous Wastes on the Premises if caused by Lessee or persons acting under Lessee. The foregoing indemnity shall apply regardless of whether or not any such Claims are contributed to by the negligence or fault of the indemnified party, by the violation of any law, statute or regulation by the indemnified party, and even if the indemnified party is strictly liable therefore. However, in the event of such contributory negligence or other fault of the indemnified party, then the indemnified party shall not be indemnified hereunder in the proportion that the indemnified party’s negligence or other fault caused any such Claims. Lessee shall execute such affidavits, representations or other documents from time to time as Lessor may reasonably request concerning Lessee's best knowledge and belief as to the presence of Hazardous Substances or Hazardous Wastes on the Premises. This paragraph shall survive the termination of this Lease.

9. Improvements.
a) Consent of Lessor. Lessee shall not construct or make any installations, additions, improvements or alterations in or to the Premises, without the prior written consent of Lessor.
b) Lessee to Pay Improvement Cost. All installations, additions, improvements, or alterations constructed or made to the Premises, with the consent of Lessor, shall be made at the sole cost and expense of Lessee. Any tenant improvement designs must be approved by the City and undergo the tenant improvement permit process through the Development Services Department.
c) Removal of Improvements. All installations, additions, improvements, or alterations constructed or made to the Premises by Lessee shall remain Lessee's

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Item 16.
19 personal property and, notwithstanding principles of law applicable to real property improvements, Lessee's installations, additions, improvements or alternations shall not be deemed improvements to Lessor's Premises and may be removed from the Premises by Lessee upon termination of this Lease in the sole discretion of Lessee.

Notwithstanding the foregoing, upon termination of this Lease, Lessor may require Lessee to remove some or all of Lessee's installations, additions, improvements and alterations, at Lessee's sole cost and expense. Further, upon termination of this Lease and following removal of Lessee's property, the Premises shall be restored to a condition reasonably satisfactory to Lessor, at Lessee's expense. Any of Lessee’s property, as aforesaid, not removed from the Premises upon termination of this Lease shall become the property of Lessor. d) Mechanic’s Liens. Lessee agrees to pay promptly for all labor or materials furnished for any work of construction, improvements, alterations, additions, repairs or maintenance performed by Lessee in connection with the Premises, and to keep and to hold the Premises free, clear, and harmless of and from all liens that could arise by reason of any such work.

10. Termination. Within ninety (90) days prior to expiration of the Term, either Lessor or Lessee may terminate this Lease, without cause, by serving the other party with thirty (30) days' prior written notice of such termination (a "Notice of Termination"). Upon termination of this Lease, Lessee shall return the Premises in good condition and repair to the reasonable satisfaction or Lessor.

11. Signs. Lessee shall not install any signs on the Premises without the prior written consent of Lessor. Lessor has the option to authorize a billboard to be installed on the Premises during the term of the Lease.

12. Lessor’s Consent Required. Lessee shall not assign, mortgage, or hypothecate this Lease in whole or in part, nor sublet all or any part of the Premises, without the prior written consent of Lessor in each instance, which consent may be granted or denied in Lessor's sole discretion.

13. Assignment and Subleasing. Lessee shall not assign, mortgage, or hypothecate this Lease in whole or in part, nor sublet all or any part of the Premises, without the prior written consent of Lessor in each instance, which consent may be granted or denied in Lessor's sole discretion. This prohibition against assigning or subletting shall be construed to include a prohibition against any assignment or subletting by operation of law. In the event that Lessor's written consent is granted, Lessee shall pay all expenses in connection with such assignment and Lessee shall remain primarily

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Item 16.
20 obligated to Lessor for performance of all provisions of this Lease.

14. Use of Premises by City. The Premises will be used for as retail space and programming for the Lessee.

15. Entry and Inspection. Lessee shall permit Lessor or Lessor’s agents to· enter upon the Premises at reasonable times and upon reasonable notice, for the purpose of inspecting the same.

16. Indemnification. To the extent permitted by law, Lessor shall not be liable for any damage or injury to Lessee, or any other person, or to any property, occurring on the Premises or any part thereof in connection with this Lease, unless caused by the gross negligence or willful misconduct of Lessor. Lessee agrees to indemnify and hold Lessor harmless from any claims for damages which arise in connection with any such occurrence. Lessor agrees to indemnify and hold Lessee harmless from any claims for damages which arise from the gross negligence or willful misconduct of Lessor in connection with the Premises or this Lease. Said indemnifications shall include indemnity from any reasonable costs or fees which the indemnified party may incur in defending any such claim. The provisions of this Section shall survive termination of this Lease.

17. Lessor's Remedies on Default. If Lessee defaults in the payment of rent or defaults in the performance of any of the other covenants or conditions hereof, Lessor may give Lessee notice of such default and if Lessee does not cure any such default within thirty (30) days after the giving of such notice (or if the default is of a nature that it cannot be completely cured within such period, if Lessee does not commence such cure within such thirty (30) days and thereafter proceed with reasonable diligence and in good faith to cure such default), then Lessor may terminate this Lease on not less than thirty (30) days' notice to Lessee. On the date specified in such notice, the term of this Lease shall terminate and Lessee shall then quit and surrender the Premises to Lessor, without extinguishing Lessee’s liability. If this Lease shall have been so terminated by Lessor, Lessor may at any time thereafter resume possession of the Premises by any lawful means and remove Lessee or other occupants and their effects.

18. Waiver. No Failure to Lessor to enforce any term hereof shall be deemed to be a waiver.

19. Notices. Any notice, request, demand, or other communication which either party may or is required to give, shall be in writing and shall be delivered in person or sent to the address set forth herein below by registered or certified mail, return receipt requested with postage prepaid, by commercial overnight courier, with written verification of receipt, or by telecopy. A notice shall be deemed given: (a) w h e n delivered by personal

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delivery (as evidenced by the receipt); (b) three (3) days after deposit in the mail if sent by registered or certified mail; (c) one (1) business day after having been sent by commercial overnight courier as evidenced by the written verification of receipt or (d) on the date of confirmation if telecopies. Either party may change its address for receiving notice by written notice given to the other in accordance with the provisions of this Notices section.

To Lessee:

To Lessor:

City of Coachella
53462 Enterprise Way
Coachella, CA 92236
Attn: Celina Jimenez,
Director of Economic Development
E-mail: [email protected]

20. No Agency/Employment. In performing the terms of this Lease, the Lessor and Lessee each remain an autonomous and separate entity, solely responsible for its own actions and those of its officers, employees, agents and volunteers. No relationship of employment, agency, partnership or joint venture is to be created by or implied from this Lease.

21. Heirs, Assigns, Successors. This Lease is binding upon and inures to the benefit of the heirs, assigns and successors in interest to the parties.

22. Time of Essence. Time is of the essence of this Lease.

23. Entire Agreement. This instrument constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties.

24. Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of California.

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IN WITNESS WHEREOF, the parties have executed this Lease as of the date first written above:

LESSEE:

LESS EE
California Private Entity
By:

Name, Position
LESSOR:

THE CITY OF COACHELLA
California Municipal Corporation
By:

Name City Manager
Attest:

By:

Angela M. Zepeda
City Clerk - City of Coachella
Approved as to Form:

By:

Best, Best & Krieger LLP
City Attorney

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Item 16.

El Tranvía Expansión Proposal
Submitted by:

El Tranvía Restaurant
1258 6th Street (Proposed Expansion Site)
Coachella, CA 92236
Date: November 2025
To Whom It May Concern,
On behalf of El Tranvía Restaurant, I am pleased to submit this proposal for the expansion of our business into the adjacent property located at 1258 6th Street, Coachella, CA 92236. This location, directly behind our current restaurant, provides a valuable opportunity to enhance our offerings and further contribute to the growth and revitalization of the Downtown Pueblo Viejo District.

Project Overview:

El Tranvía has proudly served the Coachella community for over 15 years, offering authentic cuisine, friendly service, and a family-oriented atmosphere. Over the years, our restaurant has evolved alongside the city—most recently adding a new patio space in 2024 that has become a popular gathering spot for locals and visitors. With the recent acquisition of our liquor license and expanded food service authorization, we are now ready to take the next step in our growth by developing the property behind the restaurant. This project aims to create a family-friendly, culturally inspired dining and entertainment space that enriches downtown Coachella’s nightlife while remaining true to the spirit of Pueblo Viejo.

Integration into the Pueblo Viejo District:

The Pueblo Viejo District is the cultural heart of Coachella—a place where art, heritage, and community come together. The El Tranvía expansion will complement the district’s identity through traditional Mexican architectural elements, rustic materials, and lush greenery. It will celebrate Coachella’s culture with live music, local art displays, and themed family nights highlighting the region’s traditions. The project will enhance the district’s quality of life by offering a safe, welcoming environment for families to gather after hours and contribute to a vibrant downtown corridor.

Business Plan Summary Concept:

A rustic, family-friendly extension of El Tranvía offering casual dining, small events, and cultural entertainment in a natural, open-air setting. Services and Operations: Full-service dining and beverage program, weekend entertainment, and private event hosting. Hours of Operation:

Extended evening hours while maintaining a safe, family-oriented atmosphere. Staffing: The expansion will create approximately 8–12 new local jobs.

Marketing and Customer Service Strategy:

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El Tranvía will strengthen its presence through social media, and community partnerships. Our team will collaborate with the City of Coachella and nearby businesses to promote Pueblo Viejo as a dining and cultural destination. Customer service will continue to reflect our long-standing values of hospitality, respect, and consistency.

Project Team Owners:

Oscar Ventura & Jose A. Cabrera General Manager: Experienced in restaurant operations and community engagement. Design & Construction Partner: To be selected, specializing in culturally aligned architecture. Community & Event Coordinator: To oversee family and cultural programming.

Capital Investment:

El Tranvía is prepared to make a capital investment of approximately $50,000 toward property renovation, permitting, and design of the new space. Funding will be sourced through business reserves and private investment, demonstrating our commitment to Coachella’s economic growth and sustainable development.

Conclusion:

This expansion represents a meaningful next step for both El Tranvía and the Coachella community. By reimagining the property at 1258 6th Street, we aim to create a safe, beautiful, and engaging space that complements the ongoing growth of Downtown Pueblo Viejo.

Sincerely,
Oscar Ventura & Jose A. Cabrera
Owners, El Tranvía Restaurant
1221 6th Street, Coachella, CA 92236
Phone: 760-619-6550
Email: [email protected]

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ElTranvia
Inc.2.0
Email: [email protected]
El Tranvia
Inc.

TRANSFORMING SPACES, CREATING DREAMS

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Item 16.

P
rojectOverview
ElTranvia
Inc.

Formorethan15years,ElTranvíahasproudlyservedtheCoachella communitywithauthenticMexicancuisine,warmhospitality,anda welcoming,familyorientedenvironment.Overtime,ourrestauranthas evolvedalongsidethecity—mostrecentlywiththeadditionofanew patiospacein2024,whichhasbecomeafavoritegatheringspotfor bothresidentsandvisitors.

Withtherecentacquisitionofourliquorlicenseandexpandedfood serviceauthorization,wearereadytotakethenextstepinourgrowth.

Theproposedprojectwilltransformthepropertybehindourrestaurant intoafamilyfriendly,culturallyinspireddiningandentertainment space.ThisexpansionwillenhancedowntownCoachella’snightlife andcommunityvibrancywhilestayingtruetotheheritageandspiritof PuebloViejo.

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I
ntegrationinto
thePuebloViejo
District
ElTranvia
Inc.

ThePuebloViejoDistrictservesastheculturalheartof
Coachella—aplacewhereart,heritage,andcommunity
cometogether.TheElTranvíaexpansionwillcomplement
thedistrict’sidentitythroughtraditionalMexican
architecturaldesign,theuseofrusticnaturalmaterials,and
lushlandscapingthatevokesaninviting,timelessaesthetic.

ThenewspacewillcelebrateCoachella’sculturalidentityby
incorporatinglivemusicperformances,localartdisplays,
andfamilyorientedthemedeventsthathighlightthe
region’straditions.Theprojectaimstoenrichthedistrict’s
qualityoflifebycreatingasafe,welcomingenvironmentfor
familiestogatherafterhoursandbycontributingtoalively,
walkabledowntowncorridor. Page 237
Item 16.

CONCEPT

SERVICE &

OPERATIONS

HOURS OF

OPERATION

STAFFING
BusinessPlan&
ConceptSummary
Concept:

Arustic,family-friendlyextension ofElTranvía designedforcasual dining, small events, and cultural entertainmentin a natural, open-air setting.

Services & Operations:

Full-service dining and beverage program
Weekend cultural and live entertainment
Private eventand celebration hosting
Hours ofOperation:

Extended evening hourswhile maintaining a safe,family-oriented atmosphere
Staffing:

Creation ofapproximately8–12 newlocal jobs, contributingto local employmentandworkforce development
El Tranvia
Inc.

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Item 16.

Marketing&Customer
ServiceStrategy
Family
Hospitality
Community
Respect
PromotePuebloViejo
Consistency
El Tranvia
Inc.

ElTranvíawill expand its communitypresencethrough social media engagement, and strategic partnershipswith nearbybusinesses and city initiatives.Togetherwiththe CityofCoachella,we aimto promote Pueblo Viejo as a premierdining and cultural destination.

Ourcustomer service approachwill continueto reflectthevalues thathave defined ElTranvíaforovera decade—hospitality,respect, and consistency —ensuring everyguestfeels like partofthefamily.

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P
rojectTeam
Email: [email protected]
ElTranvia
Inc.

GeneralManager:

Experiencedinrestaurantoperations,
hospitality,andcommunityengagement
Design&ConstructionPartner:

Tobeselected,withexpertiseinculturally
inspiredarchitectureandsustainabledesign
Community&EventCoordinator:

Tooverseefamilyprogramming,live
entertainment,andcommunitybasedevents

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CapitalInvestment
www.reallygreatsite.com [email protected]
El Tranvia
Inc.

Email: [email protected]
ElTranvía is preparedto make a capital
investmentofapproximately$50,000toward
propertyrenovation, permitting, and design of
the newspace. Fundingwill be sourcedthrough
existing business reserves and private
investment, underscoring ourlong-term
commitmentto Coachella’s economicvitality
and sustainable development.

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Co
nclusion
Em
wailw: [email protected]@reallygreatsite.com ElTranvia
Inc.

Thisexpansionrepresentsameaningful
nextstepforbothElTranvíaandthe
Coachellacommunity.Bytransformingthe
propertyat12586thStreet,weaimtocreate
asafe,beautiful,andengagingdestination
thatcomplementstheongoingrevitalization
ofDowntownPuebloViejo—celebratingthe
city’srichculturalheritagewhilesupporting
itsfuturegrowth.

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Item 16.

ThankYou
SoMuch
(760)619-6550 [email protected]
PhoneNumber: MailAddress :
@el_tranvia_inc
SocialMedia :

El Tranvia
Inc.

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Item 16.

STAFF REPORT
2/11/2026
TO: Honorable Mayor and City Council Members
FROM: Celina Jimenez, Director of Economic Development
SUBJECT: Approve Lease Agreement with El Tranvia, Inc. for the City-Owned Building Located at 1258 Sixth Street in the Downtown Pueblo Viejo District and Authorize the City Attorney to Approve Minor Changes to the Lease Agreement Prior to its Execution
STAFF RECOMMENDATION:

Staff recommends the City Council authorize the City Manager to execute a lease agreement between the City of Coachella and El Tranvia Inc., for the 722 square foot building which was formerly the Chamber of Commerce building located at 1258 Sixth Street in the Downtown Pueblo Viejo District and authorize the City Attorney to approve any minor changes to the lease agreement prior to its execution.

BACKGROUND:

On December 18, 2025, the City of Coachella Economic Development Department issued a Request for Proposals (RFP) to release a Request for Proposal process to allow well-qualified business entities the opportunity to propose a restaurant/retail business in the former Chamber of Commerce building located in the Downtown Pueblo Viejo District. The objective was to provide a unique destination restaurant/café with a distinctive menu and an experience that will bring visitorsinto the Downtown Pueblo Viejo District. The RFP also provided economic development incentives in order to assist with startup costs. The deadline for proposals was January 29, 2026.

As a result, the City only received one proposal. This RFP release would be the second one released since the previous RFP opportunity of October, 2025.

DISCUSSION/ANALYSIS:

Staff reviewed and evaluated the proposal received and qualified Oscar Ventura as an exceptional proposal based on the RFP requirements, conceptual design, marketing, customer service, related business experience and capital investment.

This space will afford El Tranvía restaurant to expand in a manner that will complement the Pueblo Viejo District’s identity through traditional Mexican architectural design, the use of rustic natural materials, and lush landscaping that evokes an inviting, timeless aesthetic. The new space will

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celebrate Coachella’s cultural identity by incorporating live music performances, local art displays, and family-oriented themed events that highlight the region’s traditions. The project aims to enrich the district’s quality of life by creating a safe, welcoming environment for families to gather after hours and by contributing to a lively, walkable downtown corridor. El Tranvía is willing to make a sizeable capital investment toward property renovations. Funding will be sourced through existing business reserves and private investment, underscoring their long-term commitment to Coachella’s economic vitality and sustainable development.

The proposed lease agreement will allow El Tranvia, Inc. to operate on an annual basis and provide economic development incentives that will allow for a successful start-up. The Lessee will be responsible for all tenant improvements; however, the Lessee will be subsidized by the City with a reduced lease rate until the cost of the tenant improvements is recovered. The City will also waive all permitting/planning fees for the first year of operation. The lease rate will be $2.00/square foot, which shall equal to a $1,444/monthly payment to the City, once the cost of the tenant improvements are recovered. The anticipated cost of the tenant improvements are estimated to be between $150,000 and $200,000.

FISCAL IMPACT
If the City Council approves the staff recommendation, the lease agreement will yield annual revenue of $17,328.00 (once the tenant improvement costs are recovered), plus sales tax revenue and business license renewal costs.

ALTERNATIVES:

1. Approve Lease Agreement with El Tranvia, Inc. for the City-Owned Building Located at 1258 Sixth Street in the Downtown Pueblo Viejo District and Authorize the City Attorney to Approve Minor Changes to the Lease Agreement Prior to its Execution

2. Not Approve Lease Agreement and Release Another RFP

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ATTACHMENTS:

1. RFP – Lease of Building Located at 1258 Sixth Street, Coachella, CA 92236

2. Proposal - El Tranvia, Inc.

3. Lease Agreement

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CITY OF COACHELLA

LEASE AGREEMENT
THIS LEASE AGREEMENT (the "Lease") is made as of March 1, 2026 by and between THE CITY OF COACHELLA, a California municipal corporation (the "Lessor"), and EL TRANVIA, INC., a corporation (the "Lessee"), with reference to the following facts:

RECITALS
A. Lessor is the owner of certain real property located at 1258 Sixth Street, in the City of Coachella, County of Riverside, Assessor Parcel Number (APN) 778-110-003-7, described in more detail in attached Exhibit "A" incorporated herein by this reference (the "Property"); and B. Lessee desires to lease from Lessor the Property referenced in more detail in the attached Exhibit "A" for purposes of operating and managing a restaurant/bakery business; and C. Lessee will be responsible for all tenant improvements the leased space; and D. Lessor will provide economic development incentives that include subsidizing lease rates until all the cost of tenant improvements are recovered and waive all permitting/planning fees for the first year of operation; and
E. Lessor will not be liable or responsible for any damage or injury occurring on the Premises.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

AGREEMENT

1. Recitals. Lessor and Lessee acknowledge the Recitals set forth above which are incorporated herein by this reference together with the Exhibits attached hereto.

2. Leasehold. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rent and upon the conditions set forth herein. Lessee accepts the Premises, including the appurtenant improvements, structures, and facilities, if any, in "AS IS" condition.

3. Premises. The Premises described in Exhibit "A" amounts to an area of approximately 1,040 square feet. Upon execution of this Lease, Lessor grants to Lessee the right to survey the Premises (the "Survey") and such Survey, if performed, shall replace Exhibit "A" as the description of the Premises and shall be attached and incorporated herein as Exhibit "B." If performed, the Survey attached as Exhibit "B" shall control the description of the Premises thereafter.

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4. Term of Lease.

4.1 Term. The original term of the Lease shall be for a three (3) year period commencing on March 1, 2026 and terminating on February 29, 2028 (the "Term") with an opportunity to renew the Term for additional three-year terms or until the costs of tenant improvements have been recovered. If Lessee decides to make tenant improvements to the Premises for which a City Building Permit is issued, then the Lessee’s rent shall be waived until such time as all tenant improvement costs have been recovered by the Lessee; all tenant improvement credits must be preapproved and invoices provided to allow for rental credit. All tenant improvements shall be approved by Lessor pursuant to Section 11.

5. Rent.

5.1 Rent. During the Term of this Lease, Lessee shall pay to Lessor as rent the sum of One Thousand Four Hundred Forty-Four Dollars ($1,444.00) per month.

The Lessee will pay the monthly rent to the Lessor in advance of the fifteenth (15) day of each month starting March 15th and continuing throughout the term of this Lease.

5.2 Where to Pay Rent. All rent shall be paid to Lessor at the address specified below in Section 22.

6. Utilities, Maintenance and Insurance.

6.1 Utilities. Lessee shall make all arrangements for and shall pay for all utilities and services furnished to the Premises or used by Lessee on the Premises, including, without limitation: cable, electricity, telephone, internet, water, sewer and trash removal services as described in Exhibit "C", and Lessee shall pay for any and all charges for establishment or connection of utility services to the Premises.

6.2 Maintenance. Lessee shall provide all maintenance and repairs, at Lessee's sole cost and expense, to keep the Premises in good order and condition, including, without limitation, all maintenance of fencing, gates, landscaping, all improvements existing at the commencement of this Lease, and any improvements installed or constructed by Lessee during the term of this Lease.

6.3 Insurance. All insurance carried by Lessee shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only. Lessee shall carry and maintain, during the entire term hereof, at Lessee's sole cost and expense, the following types of insurance in the amounts specified and in the form provided for m this section:
a. Public Liability and Property Damage. Broad-form comprehensive public liability insurance with limits of not less than One Million Dollars ($1,000,000) per person and One Million Dollars ($1,000,000) each occurrence, insuring against any and all liability of Lessee with respect to the Premises or arising out of the maintenance, use or occupancy thereof, and property damage liability insurance with a limit of not less than One Million Dollars ($1,000,000) each accident, or One Million Dollars ($1,000,000) combined single limit.
b. Property Insurance. Lessee shall obtain and maintain in force a policy or

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policies of insurance in the name of Lessee, with any loss payable to Lessee, and any lender of Lessor insuring against loss or damage to the improvements on the Premises, including, without limitation, any improvements installed or constructed by Lessee. The amount of such insurance shall be equal to the full insurable replacement cost of such improvements, as the same shall exist from time to time, or the amount required by any lender of Lessor, but in no event more than the commercially reasonable and available insurance value thereof. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risk of direct loss or physical damage (except the perils of flood and earthquake unless required by a lender of Lessor). If such insurance coverage has a deductible clause, the deductible amount shall not exceed the amount permitted by a lender of Lessor. In the event any casualty results in damage to the improvements on the Premises which are the property of Lessor (and not constructed or installed by Lessee in accordance with the provisions hereof), Lessee shall either (i) use the proceeds of insurance to cause the restoration of such property of Lessor or (ii) pay or cause payment to Lessor or any lender of Lessor in an amount of the proportionate share of insurance proceeds attributable to damage to such property of Lessor.
c. Delivery of Certificate of Insurance. Lessee shall deliver to Lessor certificates of insurance evidencing the insurance procured by Lessee, which certificates shall name Lessor as an additional insured together with any lender of Lessor. The Certificates of Insurance shall be delivered by Lessee to Lessor at the time of the execution of the Lease and shall be monitored regularly.
d. Notice of Cancellation. All insurance policies shall contain a provision that such policies shall not be canceled or terminated without thirty (30) days' prior notice from the insurance company to Lessor. Lessee agrees that on or before thirty (30) days prior to expiration of any insurance policy, Lessee will deliver to Lessor written notification in the form of a receipt or other similar document from the applicable insurance company that said policy or policies have been renewed, or deliver certificates of coverage from another good and solvent insurance company for such coverage.

7. Janitorial Services. The Lessee agrees to provide at its sole cost and expense janitorial services for the leased Premises.

8. Security Alarm Monitoring Services. The Lessee agrees to provide at its sole cost and expense security alarm monitoring services for the leased Premises.

9. Use. Lessee shall use and occupy the Premises for purposes of operating and managing a restaurant/bakery business in the old Sunline Transit building. Lessee shall not use the Premises for the purposes of storing, manufacturing or selling any inherently dangerous substance, chemical, thing, or device.

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10. Hazardous Substances and Hazardous Materials.

10.1 Defined. For purposes of this Lease, the term "Hazardous Substances" shall be as defined in the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601 et seq., and any regulations promulgated pursuant thereto, and as used to define "Hazardous Wastes" in the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., and any regulations promulgated thereto, or as may be identified or defined by any federal, state or local law or regulation.

10.2 Prohibition and Indemnity. Lessee shall not (either with or without negligence) cause or permit the use, storage, generation, escape, disposal or release of any Hazardous Substances or Hazardous Wastes in any manner not sanctioned by law. In all events, Lessee shall indemnify and hold Lessor harmless from any and all claims, damages, fines, judgments, penalties, costs, liabilities or losses (including, without limitation, any and all sums paid for settlement of claims, attorneys' fees, and consultants' and experts' fees) (collectively "Claims") from the presence or release of any Hazardous Substances or Hazardous Wastes on the Premises if caused by Lessee or persons acting under Lessee. The foregoing indemnity shall apply regardless of whether or not any such Claims are contributed to by the negligence or fault of the indemnified party, by the violation of any law, statute or regulation by the indemnified party, and even if the indemnified party is strictly liable therefore.

However, in the event of such contributory negligence or other fault of the indemnified party, then the indemnified party shall not be indemnified hereunder in the proportion that the indemnified party's negligence or other fault caused any such Claims. Lessee shall execute such affidavits, representations or other documents from time to time as Lessor may reasonably request concerning Lessee's best knowledge and belief as to the presence of Hazardous Substances or Hazardous Wastes on the Premises. This paragraph shall survive the termination of this Lease.

11. Improvements.

11.1 Consent of Lessor. Lessee shall not construct or make any installations, additions, improvements or alterations in or to the Premises, without the prior written consent of Lessor.

11.2 Lessee to Pay Improvement Cost. All installations, additions, improvements, or alterations constructed or made to the Premises, with the consent of Lessor, shall be made at the sole cost and expense of Lessee.

11.3 Removal of Improvements. All installations, additions, improvements, or alterations constructed or made to the Premises by Lessee shall remain Lessee's personal property and, notwithstanding principles of law applicable to real property improvements, Lessee's installations, additions, improvements or alternations shall not be deemed improvements to Lessor's Premises and may be removed from the Premises by Lessee upon termination of this Lease in the sole discretion of Lessee. Notwithstanding the foregoing, upon termination of this Lease, Lessor may require Lessee to remove some or all of Lessee's installations, additions, improvements and alterations, at Lessee's sole cost and expense. Further, upon termination of this Lease and following removal of Lessee's property, the Premises shall be restored to a condition reasonably satisfactory to Lessor, at Lessee's expense. Any of Lessee's property, as aforesaid, not removed from the Premises upon termination of this Lease shall become the property of Lessor.

11.4 Mechanic's Liens. Lessee agrees to pay promptly for all labor or materials furnished for any work of construction, improvements, alterations, additions, repairs or maintenance performed by Lessee in connection with the Premises, and to keep and to hold the Premises free, clear,

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and harmless of and from all liens that could arise by reason of any such work.

12. Termination. Within ninety (90) days prior to expiration of the Term, either Lessor or Lessee may terminate this Lease, without cause, by serving the other party with thirty (30) days' prior written notice of such termination (a "Notice of Termination"). Upon termination of this Lease, Lessee shall return the Premises in good condition and repair to the reasonable satisfaction or Lessor.

13. Signs. Lessee shall not install any signs on the Premises without the prior written consent of Lessor.

14. Lessor's Consent Required. Lessee shall not assign, mortgage, or hypothecate this Lease in whole or in part, nor sublet all or any part of the Premises, without the prior written consent of Lessor in each instance, which consent may be granted or denied in Lessor's sole discretion.

15. Assignment and Subleasing. Lessee shall not assign, mortgage, or hypothecate this Lease in whole or in part, nor sublet all or any part of the Premises, without the prior written consent of Lessor in each instance, which consent may be granted or denied in Lessor's sole discretion. This prohibition against assigning or subletting shall be construed to include a prohibition against any assignment or subletting by operation of law. In the event that Lessor's written consent is granted, Lessee shall pay all expenses in connection with such assignment and Lessee shall remain primarily obligated to Lessor for performance of all provisions of this Lease.

16. Use of Premises by another Party. The Premises may not be used by any person or party other than the Lessee, its officers, employees, and agents.

17. Use of Premises by City. The Premises may be accessed and used at any time, as needed, by any City staff, for purposes of inspecting the building for maintenance and repairs of various systems.

18. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to enter upon the Premises at reasonable times and upon reasonable notice, for the purpose of inspecting the same.

19. Indemnification. To the extent permitted by law, Lessor shall not be liable for any damage or injury to Lessee, or any other person, or to any property, occurring on the Premises or any part thereof in connection with this Lease, unless caused by the gross negligence or willful misconduct of Lessor. Lessee agrees to indemnify and hold Lessor harmless from any claims for damages which arise in connection with any such occurrence. Lessor agree to indemnify and hold Lessee harmless from any claims for damages which arise from the gross negligence or willful misconduct of Lessor in connection with the Premises or this Lease. Said indemnifications shall include indemnity from any reasonable costs or fees which the indemnified party may incur in defending any such claim. The provisions of this Section shall survive terminat10n of this Lease.

20. Lessor's Remedies on Default. If Lessee defaults in the payment of rent

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or defaults in the performance of any of the other covenants or conditions hereof, Lessor may give Lessee notice of such default and if Lessee does not cure any such default within thirty (30) days after the giving of such notice (or if the default is of a nature that it cannot be completely cured within such period, if Lessee does not commence such cure within such thirty (30) days and thereafter proceed with reasonable diligence and in good faith to cure such default), then Lessor may terminate this Lease on not less than thirty (30) days' notice to Lessee. On the date specified in such notice, the term of this Lease shall terminate and Lessee shall then quit and surrender the Premises to Lessor, without extinguishing Lessee's liability. If this Lease shall have been so terminated by Lessor, Lessor may at any time thereafter resume possession of the Premises by any lawful means and remove Lessee or other occupants and their effects.

21. Waiver. No failure of Lessor to enforce any term hereof shall be deemed to be a waiver.

22. Notices. Any notice, request, demand, or other communication which either party may or is required to give, shall be in writing and shall be delivered in person or sent to the address set forth herein below by registered or certified mail, return receipt requested with postage prepaid, by commercial overnight courier, with written verification of receipt, or by telecopy. A notice shall be deemed given: (a) when delivered by personal delivery (as evidenced by the receipt); (b) three (3) days after deposit in the mail if sent by registered or certified mail or (c) one (1) business day after having been sent by commercial overnight courier as evidenced by the written verification of receipt. Either party may change its address for receiving notice by written notice given to the other in accordance with the provisions of this Notices section.

To Lessee: El Tranvia, Inc. / Oscar Ventura
1258 Sixth Street
Coachella CA 92236
To Lessor: City of Coachella
53-990 Enterprise Way
Coachella, CA 92236
Attn: Director of Public Works

23. No Agency/Employment. In performing the terms of this Lease, the Lessor and Lessee each remain an autonomous and separate entity, solely responsible for its own actions and those of its officers, employees, agents and volunteers. No relationship of employment, agency, partnership or Joint venture is to be created by or implied from this Lease.

24. Time of Essence. Time is of the essence of this Lease.

25. Entire Agreement. This instrument constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties.

26. Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of California.

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IN WITNESS WHEREOF, the parties have executed this Lease as of the date first written above.

LESSEE:

EL TRANVIA, INC.

California Corporation
By:

Oscar Ventura, Owner
LESSOR:

THE CITY OF COACHELLA
California Municipal Corporation
By:

William B. Pattison, Jr., City Manager
Attest:

By:

Angela M. Zepeda
City Clerk - City of Coachella
Approved as to Form:

By:

Best, Best & Krieger LLP
City Attorney

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EXHIBIT "A"

DESCRIPTION OF PREMISES
The City of Coachella (Lessor) owns real property located at 1258 Sixth Street, in the City of Coachella, County of Riverside, State of California. The old Chamber of Commerce building is part of the City’s Properties, identified by the following assessor parcel number: 778-110-003-7. The Lessee will only occupy the pictured area below, which includes the approximate 722 square foot building and outdoor space around the building.

Depiction/Photo

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EXHIBIT "B"

SURVEY OF LEASED PREMISES
No survey was completed by the Lessee.

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EXHIBIT "C"
Lessor's real property is located at 1258 Sixth Street, Coachella, California 92236. The property is approximately 722 square feet. Lessee shall establish accounts for the property under Lessee's name for all utilities. Lessee will maintain current all utility billing for the property.

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Item 16.

Coachella City CouncilFebruary 11, 2026

Coachella City Council
February 11, 2026