Agenda — Desert Hot Springs City Council, June 20, 2023 (part 4 of 6)

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
Series 2018 Lease Revenue Bonds 140,000 145,000
Series 2021 Lease Revenue Bonds 330,000 340,000
800,000 830,000
401-4705-60-82-0000 INTEREST EXPENSE 896,641 1,655,320 1,275,625 1,243,050 Itemization FY2024 FY2025
Series 2017 Lease Revenue Bonds 533,781 518,931
Series 2018 Lease Revenue Bonds 276,606 269,606
Series 2021 Lease Revenue Bonds 465,238 454,513
1,275,625 1,243,050
Total Expenditures 2,786,840 2,147,820 16,712,262 2,078,050 Revenues over Expenditures 15,237,920 375,000 -14,631,637 0 CFD Skyborne 2020 Refunding Bond Fund
Revenues
421-3110-00-00-0000 SPECIAL ASSESSMENTS 199,120 222,402 191,000 191,000 421-3401-00-00-0000 INVESTMENT EARNINGS 470 1,000 0 0
Total Revenues 199,590 223,402 191,000 191,000
Expenditures
421-4285-60-15-0000 ADMINISTRATIVE FEES 22,912 23,998 25,000 25,000 421-4320-60-15-0000 CONTRACT SERVICES 7,127 7,270 7,415 7,563 421-4401-60-15-0000 INVESTMENT LOSS 1 5,000 0 0
421-4700-60-81-0000 PRINCIPAL 79,875 82,575 79,875 79,875 421-4705-60-82-0000 INTEREST EXPENSE 64,076 61,331 64,076 64,076 Total Expenditures 173,991 180,174 176,366 176,514
Revenues over Expenditures 25,599 43,228 14,634 14,486
City-Wide Lighting & Landscaping Maintenance District #1 Fund Revenues
501-3110-00-00-0000 SPECIAL ASSESSMENTS 558,921 572,017 560,000 560,000 501-3999-00-00-0000 TRANSFERS IN 1,184,623 973,644 1,113,432 1,089,034 Total Revenues 1,743,544 1,545,661 1,673,432 1,649,034
Expenditures
Park Maintenance
501-4100-43-45-0000 SALARIES 257,204 245,288 353,612 353,612 501-4105-43-45-0000 OVERTIME / ON-CALL 6,644 5,500 3,000 3,000 501-4110-43-45-0000 COMP TIME BUYOUT 48,868 38,000 15,000 15,000 501-4115-43-45-0000 ANNUAL LEAVE BUYOUT 1,765 4,500 5,000 5,000 501-4140-43-45-0000 EMPLOYEE BENEFITS 61,087 62,051 97,926 97,926 501-4150-43-45-0000 PERS RETIREMENT 17,480 18,476 30,108 30,108 501-4155-43-45-0000 PERS UNFUNDED LIABILITY - MISCELLANEOUS 3,000 3,000 0 0 501-4160-43-45-0000 TAXES 23,740 18,738 27,025 27,025
501-4170-43-45-0000 WORKERS COMP/GENERAL LIABILITY INSURANCE 28,014 31,062 50,800 50,800 501-4200-43-45-0000 UTILITIES 271,149 228,108 270,000 270,000 501-4250-43-45-0000 UNIFORM ALLOWANCE 963 0 2,113 2,113 501-4255-43-45-0000 FUEL 21,371 22,000 0 0
501-4260-43-45-0000 REPAIR & MAINTENANCE-VEHICLE 1,267 1,199 2,450 2,450 Itemization FY2024 FY2025
Car Repairs 750 750
Car Washes 1,200 1,200
Registrations 500 500

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
2,450 2,450
501-4266-43-45-0000 SUPPLIES & MAINTENANCE 269,183 198,428 211,049 222,850 Itemization FY2024 FY2025
Backflow Testing 1,000 1,000
Barricades 2,500 2,500
Equipment 35,000 35,000
Fence Repairs 15,000 20,000
Flags 2,000 2,500
Landscape Extra Services 54,999 60,000
Lighting 6,000 6,500
Restroom Repairs 5,000 5,500
Restroom Supplies 12,000 12,000
Retention Basin Cleanup 10,000 10,000
Shade Repairs 10,000 10,000
Signs 2,500 2,500
Supplies 36,550 36,550
Tree Trimming-Mission Springs Park 10,000 10,000
Palm Tree Trimming 8,500 8,800
211,049 222,850
501-4320-43-45-0000 CONTRACT SERVICES 335,801 604,984 247,370 199,300 Itemization FY2024 FY2025
Electrical Services 35,000 35,000
Heavy Equipment Maintenance 2,500 2,500
Ice Machine Repairs 1,000 1,000
Lighting (Dog Parks) 40,000 0
Lighting (Mission Springs Park Playground) 15,000 0
Janitorial Services 36,270 40,000
Landscape Services 103,700 106,900
Pest Control 3,900 3,900
Plumbing Repairs 10,000 10,000
247,370 199,300
501-5030-43-45-0000 EQUIPMENT 0 90,000 0 0
Total Park Maintenance 1,347,536 1,571,335 1,315,452 1,279,183 Landscape Maintenance
501-4200-43-47-0000 UTILITIES 39,957 46,000 40,000 40,000 501-4266-43-47-0000 SUPPLIES & MAINTENANCE 127,562 71,075 78,480 79,650 Itemization FY2024 FY2025
Landscape Extra Services 36,280 36,150
Palm Tree Trimming 42,200 43,500
78,480 79,650
501-4320-43-47-0000 CONTRACT SERVICES 213,502 559,652 239,500 250,200 Itemization FY2024 FY2025
Property Tax Administration 10,000 10,000
Electrical Services 10,000 10,000
Herbicide Weed Control 30,000 35,000

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
Landscape Services 189,500 195,200
239,500 250,200
Total Landscape Maintenance 381,021 676,727 357,980 369,850 Total Expenditures 1,728,557 2,248,062 1,673,432 1,649,033 Revenues over Expenditures 14,987 -702,401 0 1
Lighting & Landscaping Maintenance District #2
502-3110-00-00-0000 SPECIAL ASSESSMENTS 40,497 40,503 42,139 42,139 502-3401-00-00-0000 INVESTMENT EARNINGS 1 100 100 100
502-4200-43-47-0000 UTILITIES 15,249 19,000 16,000 16,000 502-4266-43-47-0000 SUPPLIES & MAINTENANCE 5,231 10,100 16,000 16,000 502-4285-43-47-0000 ADMINISTRATIVE FEES 10,739 10,742 10,742 10,746 502-4320-43-47-0000 CONTRACT SERVICES 16,194 17,423 23,728 24,420 503-3110-00-00-0000 SPECIAL ASSESSMENTS 15,981 16,209 16,863 16,863 503-3401-00-00-0000 INVESTMENT EARNINGS 52 200 200 200
503-4200-43-47-0000 UTILITIES 1,280 2,000 2,000 2,000
503-4266-43-47-0000 SUPPLIES & MAINTENANCE 0 31,000 34,000 34,000 503-4285-43-47-0000 ADMINISTRATIVE FEES 4,182 4,186 4,186 4,189 503-4320-43-47-0000 CONTRACT SERVICES 7,564 7,749 8,387 8,633 504-3110-00-00-0000 SPECIAL ASSESSMENTS 14,819 14,823 15,421 15,421 504-3401-00-00-0000 INVESTMENT EARNINGS 11 100 100 100
504-4200-43-47-0000 UTILITIES 3,794 7,000 5,000 5,000
504-4266-43-47-0000 SUPPLIES & MAINTENANCE 990 7,000 10,000 10,000 504-4285-43-47-0000 ADMINISTRATIVE FEES 4,327 4,189 4,189 4,192 504-4320-43-47-0000 CONTRACT SERVICES 8,776 8,425 9,695 9,979 505-3110-00-00-0000 SPECIAL ASSESSMENTS 36,113 36,084 37,541 37,541 505-3401-00-00-0000 INVESTMENT EARNINGS 108 300 500 500 505-4266-43-47-0000 SUPPLIES & MAINTENANCE 21,826 70,000 88,000 88,000 505-4285-43-47-0000 ADMINISTRATIVE FEES 9,181 9,181 9,181 9,186 505-4320-43-47-0000 CONTRACT SERVICES 11,337 11,195 16,923 17,414 506-3110-00-00-0000 SPECIAL ASSESSMENTS 17,723 17,644 18,356 18,356 506-3401-00-00-0000 INVESTMENT EARNINGS 71 200 300 300
506-4266-43-47-0000 SUPPLIES & MAINTENANCE 1,094 42,000 50,000 50,000 506-4285-43-47-0000 ADMINISTRATIVE FEES 5,003 5,007 4,193 4,196 506-4320-43-47-0000 CONTRACT SERVICES 7,335 7,640 10,748 11,064 507-3110-00-00-0000 SPECIAL ASSESSMENTS 12,189 12,288 12,785 12,785 507-3401-00-00-0000 INVESTMENT EARNINGS 78 300 400 400
507-4200-43-47-0000 UTILITIES 199 1,000 1,000 1,000
507-4266-43-47-0000 SUPPLIES & MAINTENANCE 1,210 41,000 54,000 54,000 507-4285-43-47-0000 ADMINISTRATIVE FEES 814 959 3,400 3,403 507-4320-43-47-0000 CONTRACT SERVICES 7,883 8,217 12,313 12,678 508-3110-00-00-0000 SPECIAL ASSESSMENTS 13,327 12,733 13,248 13,248 508-3401-00-00-0000 INVESTMENT EARNINGS 18 100 100 100
508-4200-43-47-0000 UTILITIES 165 1,000 1,000 1,000
508-4266-43-47-0000 SUPPLIES & MAINTENANCE 0 11,000 18,000 18,000 508-4285-43-47-0000 ADMINISTRATIVE FEES 3,365 3,369 3,369 3,372 508-4320-43-47-0000 CONTRACT SERVICES 9,329 8,836 14,201 14,620 509-3110-00-00-0000 SPECIAL ASSESSMENTS 10,943 10,878 11,317 11,317 509-3401-00-00-0000 INVESTMENT EARNINGS 53 200 300 300

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
509-4266-43-47-0000 SUPPLIES & MAINTENANCE 0 28,000 34,000 34,000 509-4285-43-47-0000 ADMINISTRATIVE FEES 1,749 1,753 2,567 2,570 509-4320-43-47-0000 CONTRACT SERVICES 170 113 111 114
510-3110-00-00-0000 SPECIAL ASSESSMENTS 8,306 7,812 8,128 8,128 510-3401-00-00-0000 INVESTMENT EARNINGS 34 100 200 200
510-4200-43-47-0000 UTILITIES 1,806 2,000 3,000 3,000
510-4266-43-47-0000 SUPPLIES & MAINTENANCE 992 20,000 25,000 25,000 510-4285-43-47-0000 ADMINISTRATIVE FEES 1,726 1,731 917 920 510-4320-43-47-0000 CONTRACT SERVICES 2,363 1,780 4,415 4,545 511-3110-00-00-0000 SPECIAL ASSESSMENTS 11,628 11,628 12,099 12,099 511-3401-00-00-0000 INVESTMENT EARNINGS 24 100 100 100
511-4266-43-47-0000 SUPPLIES & MAINTENANCE 0 15,000 17,000 17,000 511-4285-43-47-0000 ADMINISTRATIVE FEES 3,356 3,361 3,361 3,364 511-4320-43-47-0000 CONTRACT SERVICES 10,027 9,494 11,190 11,520 512-3110-00-00-0000 SPECIAL ASSESSMENTS 5,704 5,705 5,935 5,935 512-3401-00-00-0000 INVESTMENT EARNINGS 59 200 300 300
512-4266-43-47-0000 SUPPLIES & MAINTENANCE 0 33,000 34,000 34,000 512-4285-43-47-0000 ADMINISTRATIVE FEES 1,727 1,731 1,731 1,734 512-4320-43-47-0000 CONTRACT SERVICES 78 50 75 75
513-3401-00-00-0000 INVESTMENT EARNINGS 9 100 100 100
513-4266-43-47-0000 SUPPLIES & MAINTENANCE 0 5,000 5,000 5,000 514-3110-00-00-0000 SPECIAL ASSESSMENTS 14,215 14,756 15,352 15,352 514-3401-00-00-0000 INVESTMENT EARNINGS 36 200 200 200
514-4200-43-47-0000 UTILITIES 90 1,000 1,000 1,000
514-4266-43-47-0000 SUPPLIES & MAINTENANCE 771 19,000 27,000 27,000 514-4285-43-47-0000 ADMINISTRATIVE FEES 8,239 8,244 4,175 4,178 514-4320-43-47-0000 CONTRACT SERVICES 19,954 18,972 24,923 25,658 515-3401-00-00-0000 INVESTMENT EARNINGS 18 100 100 100
515-4266-43-47-0000 SUPPLIES & MAINTENANCE 0 9,000 12,000 12,000 515-4320-43-47-0000 CONTRACT SERVICES 0 0 2,019 2,080
516-3110-00-00-0000 SPECIAL ASSESSMENTS 25,010 28,983 30,149 30,149 516-3401-00-00-0000 INVESTMENT EARNINGS 25 100 100 100
516-4200-43-47-0000 UTILITIES 531 6,000 1,000 1,000
516-4266-43-47-0000 SUPPLIES & MAINTENANCE 6,343 20,000 29,000 29,000 516-4285-43-47-0000 ADMINISTRATIVE FEES 4,298 4,299 7,554 7,559 516-4320-43-47-0000 CONTRACT SERVICES 14,792 14,255 16,654 17,141 517-3401-00-00-0000 INVESTMENT EARNINGS 5 100 100 100
517-4266-43-47-0000 SUPPLIES & MAINTENANCE 0 2,000 2,000 2,000 518-3401-30-30-0000 INVESTMENT EARNINGS 0 0 100 100
519-3110-00-00-0000 SPECIAL ASSESSMENTS 19,143 19,143 19,917 19,917 519-3401-00-00-0000 INVESTMENT EARNINGS 25 100 100 100
519-4266-43-47-0000 SUPPLIES & MAINTENANCE 0 18,000 23,000 23,000 519-4285-43-47-0000 ADMINISTRATIVE FEES 1,727 1,731 4,986 4,989 519-4320-43-47-0000 CONTRACT SERVICES 78 50 215 220
520-3110-00-00-0000 SPECIAL ASSESSMENTS 73,145 72,904 75,851 75,851 520-3401-00-00-0000 INVESTMENT EARNINGS 16 200 100 100
520-4266-43-47-0000 SUPPLIES & MAINTENANCE 2,663 12,000 15,000 15,000 520-4285-43-47-0000 ADMINISTRATIVE FEES 22,964 22,966 18,898 18,902 520-4320-43-47-0000 CONTRACT SERVICES 8,556 27,149 31,808 32,737

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
Total Revenues 319,386 324,893 338,601 338,601
Total Expenditures 272,067 656,897 793,854 799,398
Revenues over Expenditures 47,319 -332,004 -455,253 -460,797 Drainage Assessment Districts #1 Funds
552-3110-00-00-0000 SPECIAL ASSESSMENTS 22,071 21,977 22,866 22,866 552-3401-00-00-0000 INVESTMENT EARNINGS 139 400 700 700 552-4266-43-48-0000 SUPPLIES & MAINTENANCE 5,756 90,000 112,000 112,000 552-4285-43-48-0000 ADMINISTRATIVE FEES 9,111 9,130 8,317 8,321 552-4320-43-48-0000 CONTRACT SERVICES 2,671 866 1,666 1,700 553-3110-00-00-0000 SPECIAL ASSESSMENTS 22,531 22,774 23,695 23,695 553-3401-00-00-0000 INVESTMENT EARNINGS 66 200 300 300
553-4266-43-48-0000 SUPPLIES & MAINTENANCE 4,900 41,000 72,000 72,000 553-4285-43-48-0000 ADMINISTRATIVE FEES 9,067 9,077 9,077 9,080 553-4320-43-48-0000 CONTRACT SERVICES 24,033 22,396 27,841 28,652 554-3110-00-00-0000 SPECIAL ASSESSMENTS 26,901 26,791 27,873 27,873 554-3401-00-00-0000 INVESTMENT EARNINGS 6 100 100 100
554-4200-43-48-0000 UTILITIES 3,458 8,000 5,000 5,000
554-4266-43-48-0000 SUPPLIES & MAINTENANCE 0 5,000 13,000 13,000 554-4285-43-48-0000 ADMINISTRATIVE FEES 11,501 11,509 10,696 10,699 554-4320-43-48-0000 CONTRACT SERVICES 15,485 13,990 18,013 18,539 555-3110-00-00-0000 SPECIAL ASSESSMENTS 9,340 9,436 9,819 9,819 555-3401-00-00-0000 INVESTMENT EARNINGS 2 100 100 100
555-4266-43-48-0000 SUPPLIES & MAINTENANCE 243 2,000 3,000 3,000 555-4285-43-48-0000 ADMINISTRATIVE FEES 4,189 4,200 3,386 3,389 555-4320-43-48-0000 CONTRACT SERVICES 12,185 12,054 13,456 13,853 556-3110-00-00-0000 SPECIAL ASSESSMENTS 16,575 16,610 17,280 17,280 556-3401-30-30-0000 INVESTMENT EARNINGS 0 0 100 100
556-4200-43-48-0000 UTILITIES 6,624 8,000 7,000 7,000
556-4266-43-48-0000 SUPPLIES & MAINTENANCE 1,850 0 4,000 4,000 556-4285-43-48-0000 ADMINISTRATIVE FEES 6,652 6,667 6,667 6,671 556-4320-43-48-0000 CONTRACT SERVICES 9,469 9,959 12,705 13,074 557-3110-00-00-0000 SPECIAL ASSESSMENTS 23,499 22,001 22,891 22,891 557-3401-00-00-0000 INVESTMENT EARNINGS 18 100 100 100
557-4200-43-48-0000 UTILITIES 2,403 4,000 3,000 3,000
557-4266-43-48-0000 SUPPLIES & MAINTENANCE 260 13,000 18,000 18,000 557-4285-43-48-0000 ADMINISTRATIVE FEES 9,061 9,070 8,257 8,260 557-4320-43-48-0000 CONTRACT SERVICES 8,502 7,936 9,309 9,579 558-3110-00-00-0000 SPECIAL ASSESSMENTS 5,422 5,219 5,430 5,430 558-3401-00-00-0000 INVESTMENT EARNINGS 112 300 600 600 558-4266-43-48-0000 SUPPLIES & MAINTENANCE 0 63,000 63,000 63,000 558-4285-43-48-0000 ADMINISTRATIVE FEES 122 133 1,761 1,764 558-4320-43-48-0000 CONTRACT SERVICES 6 339 81 83
559-3110-00-00-0000 SPECIAL ASSESSMENTS 34,760 7,705 8,016 8,016 559-3401-00-00-0000 INVESTMENT EARNINGS 7 100 100 100
559-4266-43-48-0000 SUPPLIES & MAINTENANCE 5,950 6,000 24,000 24,000 559-4285-43-48-0000 ADMINISTRATIVE FEES 3,353 3,360 3,360 3,363 559-4320-43-48-0000 CONTRACT SERVICES 6,088 5,520 6,888 7,089 560-3110-00-00-0000 SPECIAL ASSESSMENTS 9,733 9,720 10,113 10,113

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
560-3401-30-30-0000 INVESTMENT EARNINGS 0 0 100 100
560-4200-43-48-0000 UTILITIES 3,529 4,000 6,000 6,000
560-4266-43-48-0000 SUPPLIES & MAINTENANCE 0 0 4,000 4,000 560-4285-43-48-0000 ADMINISTRATIVE FEES 4,170 4,178 4,178 4,181 560-4320-43-48-0000 CONTRACT SERVICES 4,357 4,155 5,137 5,283 561-3110-00-00-0000 SPECIAL ASSESSMENTS 8,656 8,612 8,959 8,959 561-3401-00-00-0000 INVESTMENT EARNINGS 71 200 400 400
561-4266-43-48-0000 SUPPLIES & MAINTENANCE 0 41,000 42,000 42,000 561-4285-43-48-0000 ADMINISTRATIVE FEES 4,168 4,175 3,361 3,364 561-4320-43-48-0000 CONTRACT SERVICES 541 732 155 159
562-3401-00-00-0000 INVESTMENT EARNINGS 15 100 100 100
562-4266-43-48-0000 SUPPLIES & MAINTENANCE 0 7,000 7,000 7,000 563-3110-00-00-0000 SPECIAL ASSESSMENTS 1,182 1,040 1,082 1,082 563-3401-00-00-0000 INVESTMENT EARNINGS 85 200 400 400
563-4266-43-48-0000 SUPPLIES & MAINTENANCE 0 50,000 46,000 46,000 563-4285-43-48-0000 ADMINISTRATIVE FEES 3,354 3,360 105 108 563-4320-43-48-0000 CONTRACT SERVICES 149 7 5 6
564-3110-00-00-0000 SPECIAL ASSESSMENTS 14,775 15,291 15,908 15,908 564-3401-00-00-0000 INVESTMENT EARNINGS 38 100 200 200
564-4200-43-48-0000 UTILITIES 90 1,000 1,000 1,000
564-4266-43-48-0000 SUPPLIES & MAINTENANCE 0 20,000 27,000 27,000 564-4285-43-48-0000 ADMINISTRATIVE FEES 6,612 6,619 5,805 5,808 564-4320-43-48-0000 CONTRACT SERVICES 5,562 5,322 6,222 6,403 565-3110-00-00-0000 SPECIAL ASSESSMENTS 25,764 35,594 37,029 37,029 565-3401-30-30-0000 INVESTMENT EARNINGS 0 0 100 100
565-4200-43-48-0000 UTILITIES 15,468 23,000 25,000 25,000 565-4285-43-48-0000 ADMINISTRATIVE FEES 7,553 7,585 14,908 14,914 565-4320-43-48-0000 CONTRACT SERVICES 12,545 15,803 15,627 16,073 566-3401-30-30-0000 INVESTMENT EARNINGS 1 0 100 100
567-3401-30-30-0000 INVESTMENT EARNINGS 0 0 100 100
568-3110-00-00-0000 SPECIAL ASSESSMENTS 9,423 9,414 9,794 9,794 568-3401-30-30-0000 INVESTMENT EARNINGS 1 0 100 100
568-4266-43-48-0000 SUPPLIES & MAINTENANCE 0 0 6,000 6,000 568-4285-43-48-0000 ADMINISTRATIVE FEES 4,168 4,175 3,361 3,364 568-4320-43-48-0000 CONTRACT SERVICES 230 100 338 345
Total Revenues 231,186 213,984 224,255 225,255
Total Expenditures 213,371 546,540 666,016 668,458
Revenues over Expenditures 17,815 -332,556 -441,761 -443,203 Community Facilities District 2010-1 Funds
537-3110-30-30-0000 SPECIAL ASSESSMENTS 0 6,416 12,574 12,574 537-3401-30-30-0000 INVESTMENT EARNINGS 2 11 100 100
537-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 4,000 4,000 537-4285-43-46-0000 ADMINISTRATIVE FEES 28 88 1,145 1,145 537-4320-43-46-0000 CONTRACT SERVICES 0 113 250 250
538-3401-30-30-0000 INVESTMENT EARNINGS 2 0 100 100
538-7266-43-46-0000 SUPPLIES & MAINTENANCE 14,370 0
538-4285-43-46-0000 ADMINISTRATIVE FEES 85 0 86 86
539-3110-30-30-0000 SPECIAL ASSESSMENTS 0 5,109 9,960 9,960

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
539-3401-30-30-0000 INVESTMENT EARNINGS 2 6 100 100
539-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 4,000 4,000 539-4285-43-46-0000 ADMINISTRATIVE FEES 28 89 755 755
539-4320-43-46-0000 CONTRACT SERVICES 0 113 250 250
540-3401-30-30-0000 INVESTMENT EARNINGS 1 0 100 100
540-4285-43-46-0000 ADMINISTRATIVE FEES 28 0 28 28
541-3110-30-30-0000 SPECIAL ASSESSMENTS 0 0 4,891 4,891 541-3401-30-30-0000 INVESTMENT EARNINGS 2 0 100 100
541-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 1,000 1,000 541-4285-43-46-0000 ADMINISTRATIVE FEES 28 0 468 468
541-4320-43-46-0000 CONTRACT SERVICES 0 113 250 250
542-3110-30-30-0000 SPECIAL ASSESSMENTS 0 3,519 6,784 6,784 542-3401-00-00-0000 INVESTMENT EARNINGS 1 4 100 100
542-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 2,000 2,000 542-4285-43-46-0000 ADMINISTRATIVE FEES 28 88 419 419
542-4320-43-46-0000 CONTRACT SERVICES 0 113 250 250
543-3110-30-30-0000 SPECIAL ASSESSMENTS 0 7,584 22,462 22,462 543-3401-30-30-0000 INVESTMENT EARNINGS 1 8 100 100
543-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 5,000 5,000 543-4285-43-46-0000 ADMINISTRATIVE FEES 28 113 1,644 1,644 543-4320-43-46-0000 CONTRACT SERVICES 0 113 250 250
544-3401-30-30-0000 INVESTMENT EARNINGS 5 100 100 100
544-4285-43-46-0000 ADMINISTRATIVE FEES 28 0 28 28
545-3110-30-30-0000 SPECIAL ASSESSMENTS 0 900 374 374
545-3401-30-30-0000 INVESTMENT EARNINGS 1 100 100 100
545-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 1,000 1,000 545-4285-43-46-0000 ADMINISTRATIVE FEES 28 88 124 124
545-4320-43-46-0000 CONTRACT SERVICES 0 113 250 250
546-3401-30-30-0000 INVESTMENT EARNINGS 2 100 100 100
546-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 1,000 1,000 546-4285-43-46-0000 ADMINISTRATIVE FEES 28 37 28 28
547-3110-30-30-0000 SPECIAL ASSESSMENTS 22,119 22,120 23,282 23,282 547-3401-30-30-0000 INVESTMENT EARNINGS 29 159 300 300
547-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 25,000 25,000 547-4285-43-46-0000 ADMINISTRATIVE FEES 320 129 321 321 547-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
548-3110-30-30-0000 SPECIAL ASSESSMENTS 7,198 7,198 3,109 3,109 548-3401-30-30-0000 INVESTMENT EARNINGS 10 100 100 100
548-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 2,000 9,000 9,000 548-4285-43-46-0000 ADMINISTRATIVE FEES 198 129 205 205 548-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
549-3110-30-30-0000 SPECIAL ASSESSMENTS 7,198 7,198 4,436 4,436 549-3401-30-30-0000 INVESTMENT EARNINGS 10 100 100 100
549-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 2,000 9,000 9,000 549-4285-43-46-0000 ADMINISTRATIVE FEES 198 129 205 205 549-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
550-3401-30-30-0000 INVESTMENT EARNINGS 2 100 100 100
550-4200-43-46-0000 UTILITIES 211 300 300 300
550-4285-43-46-0000 ADMINISTRATIVE FEES 372 65 372 372

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
551-3401-30-30-0000 INVESTMENT EARNINGS 1 100 100 100
551-4285-43-46-0000 ADMINISTRATIVE FEES 28 0
569-3110-30-30-0000 SPECIAL ASSESSMENTS 22,345 9,207 1,895 1,895 569-3401-30-30-0000 INVESTMENT EARNINGS 16 100 200 200
569-4200-43-46-0000 UTILITIES 240 300 300 300
569-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 5,000 20,000 20,000 569-4285-43-46-0000 ADMINISTRATIVE FEES 532 435 621 621 569-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
570-3110-30-30-0000 SPECIAL ASSESSMENTS 20,674 20,674 8,299 8,299 570-3401-30-30-0000 INVESTMENT EARNINGS 61 100 400 400
570-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 15,000 40,000 40,000 570-4285-43-46-0000 ADMINISTRATIVE FEES 583 417 624 624 570-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
571-3110-30-30-0000 SPECIAL ASSESSMENTS 10,389 10,389 5,672 5,672 571-3401-30-30-0000 INVESTMENT EARNINGS 15 100 200 200
571-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 5,000 13,000 13,000 571-4285-43-46-0000 ADMINISTRATIVE FEES 242 331 243 243 571-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
572-3110-30-30-0000 SPECIAL ASSESSMENTS 0 0 338 338
572-3401-30-30-0000 INVESTMENT EARNINGS 0 1 100 100
572-4285-43-46-0000 ADMINISTRATIVE FEES 0 0 88 88
572-4320-43-46-0000 CONTRACT SERVICES 0 0 250 250
573-3110-30-30-0000 SPECIAL ASSESSMENTS 0 18,255 13,573 13,573 573-3401-30-30-0000 INVESTMENT EARNINGS 0 20 100 100
573-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 8,000 8,000 573-4285-43-46-0000 ADMINISTRATIVE FEES 0 186 564 564
573-4320-43-46-0000 CONTRACT SERVICES 0 0 250 250
574-3110-30-30-0000 SPECIAL ASSESSMENTS 131,095 126,833 97,241 97,241 574-3401-30-30-0000 INVESTMENT EARNINGS 370 400 3,000 3,000 574-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 100,000 250,000 250,000 574-4285-43-46-0000 ADMINISTRATIVE FEES 2,635 2,827 2,652 2,652 574-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
575-3110-30-30-0000 SPECIAL ASSESSMENTS 0 0 338 338
575-3401-30-30-0000 INVESTMENT EARNINGS 0 100 100 100
575-4285-43-46-0000 ADMINISTRATIVE FEES 0 0 88 88
575-4320-43-46-0000 CONTRACT SERVICES 0 0 250 250
576-3110-30-30-0000 SPECIAL ASSESSMENTS 47,253 47,254 49,196 49,196 576-3401-30-30-0000 INVESTMENT EARNINGS 132 100 1,000 1,000 576-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 20,000 90,000 90,000 576-4285-43-46-0000 ADMINISTRATIVE FEES 1,033 1,159 1,034 1,034 576-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
577-3110-30-30-0000 SPECIAL ASSESSMENTS 38,631 38,632 7,896 7,896 577-3401-30-30-0000 INVESTMENT EARNINGS 102 100 800 800 577-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 30,000 70,000 70,000 577-4285-43-46-0000 ADMINISTRATIVE FEES 830 889 839 839 577-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
578-3110-30-30-0000 SPECIAL ASSESSMENTS 0 380 26,039 26,039 578-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 5,000 5,000 578-4285-43-46-0000 ADMINISTRATIVE FEES 17 112 108 108

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
578-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
579-3110-30-30-0000 SPECIAL ASSESSMENTS 3,981 9,320 9,816 9,816 579-3401-30-30-0000 INVESTMENT EARNINGS 7 50 100 100
579-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 1,000 5,000 5,000 579-4285-43-46-0000 ADMINISTRATIVE FEES 219 112 220 220 579-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
580-3110-30-30-0000 SPECIAL ASSESSMENTS 991 991 1,068 1,068 580-3401-30-30-0000 INVESTMENT EARNINGS 22 100 200 200
580-4200-43-46-0000 UTILITIES 0 200 0 0
580-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 10,000 11,000 11,000 580-4285-43-46-0000 ADMINISTRATIVE FEES 334 493 576 576 580-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
581-3110-30-30-0000 SPECIAL ASSESSMENTS 875 834 814 814 581-3401-30-30-0000 INVESTMENT EARNINGS 5 100 100 100
581-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 2,000 2,000 2,000 581-4285-43-46-0000 ADMINISTRATIVE FEES 186 217 197 197 581-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
582-3110-30-30-0000 SPECIAL ASSESSMENTS 9,123 7,077 2,939 2,939 582-3401-30-30-0000 INVESTMENT EARNINGS 40 100 300 300
582-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 20,000 27,000 27,000 582-4285-43-46-0000 ADMINISTRATIVE FEES 460 542 471 471 582-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
583-3110-30-30-0000 SPECIAL ASSESSMENTS 3,477 6,955 3,744 3,744 583-3401-30-30-0000 INVESTMENT EARNINGS 14 100 100 100
583-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 5,000 10,000 10,000 583-4285-43-46-0000 ADMINISTRATIVE FEES 245 394 271 271 583-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
584-3110-30-30-0000 SPECIAL ASSESSMENTS 1,984 1,984 1,065 1,065 584-3401-30-30-0000 INVESTMENT EARNINGS 6 100 100 100
584-4200-43-46-0000 UTILITIES 0 100 0 0
584-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 30,000 4,000 4,000 584-4285-43-46-0000 ADMINISTRATIVE FEES 188 238 372 372 584-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
586-3110-30-30-0000 SPECIAL ASSESSMENTS 2,632 2,633 864 864 586-3401-30-30-0000 INVESTMENT EARNINGS 7 100 100 100
586-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 2,000 4,000 4,000 586-4285-43-46-0000 ADMINISTRATIVE FEES 201 219 212 212 586-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
587-3110-30-30-0000 SPECIAL ASSESSMENTS 11,384 6,486 2,648 2,648 587-3401-30-30-0000 INVESTMENT EARNINGS 8 100 100 100
587-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 500 6,000 6,000 587-4285-43-46-0000 ADMINISTRATIVE FEES 183 189 184 184 587-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
588-3401-30-30-0000 INVESTMENT EARNINGS 0 100 100 100
589-3110-30-30-0000 SPECIAL ASSESSMENTS 90,204 26,863 2,987 2,987 589-3401-30-30-0000 INVESTMENT EARNINGS 4 285 400 400
589-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 0 49,000 49,000 589-4285-43-46-0000 ADMINISTRATIVE FEES 76 111 165 165
589-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
591-3110-30-30-0000 SPECIAL ASSESSMENTS 14,431 33,272 9,195 9,195 591-3401-30-30-0000 INVESTMENT EARNINGS 42 100 300 300
591-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 15,000 25,000 25,000 591-4285-43-46-0000 ADMINISTRATIVE FEES 451 454 477 477 591-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
592-3110-30-30-0000 SPECIAL ASSESSMENTS 1,891 1,892 2,024 2,024 592-3401-30-30-0000 INVESTMENT EARNINGS 12 100 100 100
592-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 8,000 7,000 7,000 592-4285-43-46-0000 ADMINISTRATIVE FEES 255 239 256 256 592-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
593-3110-30-30-0000 SPECIAL ASSESSMENTS 10,373 10,374 2,519 2,519 593-3401-30-30-0000 INVESTMENT EARNINGS 31 100 200 200
593-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 12,000 23,000 23,000 593-4285-43-46-0000 ADMINISTRATIVE FEES 373 291 383 383 593-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
594-3110-30-30-0000 SPECIAL ASSESSMENTS 12,818 12,818 1,759 1,759 594-3401-30-30-0000 INVESTMENT EARNINGS 23 100 200 200
594-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 6,000 15,000 15,000 594-4285-43-46-0000 ADMINISTRATIVE FEES 294 112 295 295 594-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
595-3110-30-30-0000 SPECIAL ASSESSMENTS 2,590 2,590 871 871 595-3401-30-30-0000 INVESTMENT EARNINGS 10 100 100 100
595-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 4,000 6,000 6,000 595-4285-43-46-0000 ADMINISTRATIVE FEES 228 225 239 239 595-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
596-3110-30-30-0000 SPECIAL ASSESSMENTS 2,375 2,375 1,439 1,439 596-3401-30-30-0000 INVESTMENT EARNINGS 14 100 100 100
596-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 6,000 8,000 8,000 596-4285-43-46-0000 ADMINISTRATIVE FEES 268 288 279 279 596-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
597-3110-30-30-0000 SPECIAL ASSESSMENTS 38,417 27,308 11,489 11,489 597-3401-30-30-0000 INVESTMENT EARNINGS 109 500 800 800 597-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 40,000 79,000 79,000 597-4285-43-46-0000 ADMINISTRATIVE FEES 906 758 915 915 597-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
598-3401-30-30-0000 INVESTMENT EARNINGS 1 100 100 100
598-4285-43-46-0000 ADMINISTRATIVE FEES 28 100 28 28
599-3110-30-30-0000 SPECIAL ASSESSMENTS 4,804 4,805 1,233 1,233 599-3401-30-30-0000 INVESTMENT EARNINGS 14 100 100 100
599-4266-43-46-0000 SUPPLIES & MAINTENANCE 0 5,000 9,000 9,000 599-4285-43-46-0000 ADMINISTRATIVE FEES 261 277 271 271 599-4320-43-46-0000 CONTRACT SERVICES 268 274 250 250
Total Revenues 520,388 494,589 366,037 366,037
Total Expenditures 34,538 367,046 875,096 875,096
Revenues over Expenditures 485,850 127,543 -509,059 -509,059 Self Insurance General Liability Fund
Revenues

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
600-3726-00-00-0000 INSURANCE RECOVERIES 8,088 125,000 225,000 225,000 Expenditures
600-4275-41-16-0000 INSURANCE PREMIUMS 174,906 154,110 175,000 175,000 600-4280-41-16-0000 CLAIMS EXPENSE 39,930 133,000 50,000 50,000 Total Expenditures 214,836 287,110 225,000 225,000
Revenues over Expenditures -206,748 -162,110 0 0
Self Insurance Workers Comp Fund
Expenditures
610-4280-41-16-0000 CLAIMS EXPENSE 187,634 200,000 200,000 200,000 Total Expenditures 187,634 200,000 200,000 200,000
Equipment Replacement Fund
Revenues
615-3999-00-00-0000 TRANSFERS IN 208,632 250,348 253,348 253,348 Itemization FY2024 FY2025
From Public Safety Fund 193,348 193,348
From General Fund 60,000 60,000
253,348 253,348
Expenditures
615-4286-42-23-0000 DEPRECIATION 230,265 350,000 250,000 250,000 615-4287-42-23-0000 LEASE EXPENSE 36,696 250,348 253,348 253,348 Itemization FY2024 FY2025
Santander Bank - Police Vehicles 193,348 193,348
Enterprise Fleet 60,000 60,000
253,348 253,348
615-4705-42-23-0000 INTEREST EXPENSE 16,327 20,000 10,000 10,000 Total Expenditures 283,288 620,348 513,348 513,348
Revenues over Expenditures -74,656 -370,000 -260,000 -260,000 Housing Authority Fund
Revenues
700-3401-00-00-0000 INVESTMENT EARNINGS 1,218 1,000 0 0 700-3795-30-30-0000 MISCELLANEOUS REVENUE 22,000 0 0 0
700-3999-00-00-0000 TRANSFERS IN 736,628 1,095,947 503,552 0 Total Revenues 737,846 1,096,947 503,552 0
Expenditures
700-4100-45-75-0000 SALARIES 68,697 117,717 105,224 105,224 700-4115-45-75-0000 ANNUAL LEAVE BUYOUT 55 4,269 0 0
700-4140-45-75-0000 EMPLOYEE BENEFITS 22,032 21,996 14,752 14,752 700-4150-45-75-0000 PERS RETIREMENT 5,882 9,369 8,011 8,011 700-4160-45-75-0000 TAXES 5,180 8,972 7,865 7,865
700-4170-45-75-0000 WORKERS COMP/GENERAL LIABILITY INSURANCE 11,181 16,866 15,131 15,131 700-4288-45-75-0000 PROGRAM EXPENSE 200,000 400,000 200,000 0 700-4320-45-75-0000 CONTRACT SERVICES 4,000 4,000 0 0
Total Expenditures 317,027 583,189 350,983 150,983
Revenues over Expenditures 420,819 513,758 152,569 -150,983 Successor Agency RDA Retirement Obligation Fund
Revenues
911-3109-00-00-0000 TAX INCREMENT 3,738,432 5,093,851 4,450,414 1,824,988

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Item Number: 11.

Account String Account Name Project 2021-2022 Actual 2022-2023 Budget 2023-2024
Proposed
2024-2025
Proposed
City of Desert Hot Springs
FY2023-2024 FY2024-2025 Two Year Budget Detail
June 20, 2023
911-3401-00-00-0000 INVESTMENT EARNINGS 15,153 50,000 0 0 Total Revenues 3,753,585 5,143,851 4,450,414 1,824,988
Expenditures
911-4100-60-85-0000 SALARIES 169,011 161,168 161,165 161,165 911-4140-60-85-0000 EMPLOYEE BENEFITS 29,568 15,714 16,301 16,301 911-4150-60-85-0000 PERS RETIREMENT 12,459 13,632 15,572 15,572 911-4155-60-85-0000 PERS UNFUNDED LIABILITY - MISCELLANEOUS 2,000 2,000 0 0 911-4160-60-85-0000 TAXES 12,204 10,980 10,980 10,980
911-4170-60-85-0000 WORKERS COMP/GENERAL LIABILITY INSURANCE 19,659 23,176 23,176 23,176 911-4200-60-85-0000 UTILITIES 1,302 1,000 0 0
911-4220-60-85-0000 OFFICE SUPPLIES 4,768 10,000 10,000 10,000 911-4285-60-85-0000 ADMINISTRATIVE FEES 5,000 5,000 5,000 5,000 911-4315-60-85-0000 LEGAL 0 16,615 0 0
911-4320-60-85-0000 CONTRACT SERVICES 8,126 39,980 12,806 12,806 911-4401-60-85-0000 INVESTMENT LOSS 72,355 50,000 0 0
911-4700-60-85-0000 PRINCIPAL 2,590,000 2,755,000 2,930,000 925,000 Itemization FY2024 FY2025
Series 2008 TA Bonds 2,050,000 0
Series 2017 TA Bonds 880,000 925,000
2,930,000 925,000
911-4705-60-85-0000 INTEREST EXPENSE 1,060,605 943,638 761,862 644,988 Itemization FY2024 FY2025
Series 2008 TA Bonds 71,750 0
Series 2017 TA Bonds 690,112 644,988
761,862 644,988
911-4999-60-85-0000 TRANSFERS OUT 736,628 1,095,947 503,552 0 Total Expenditures 4,723,685 5,143,851 4,450,414 1,824,988 Revenues over Expenditures -970,100 0 0 0

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Item Number: 11.

Estimated Estimated
Beginning Ending
Fund Balance FY2023-2024 FY2023-2024 Fund Balance
Fund Name 7/1/2023 Revenue Expenditures 6/30/2024
100 General Fund 4,846,077 $ 25,783,802 $ 26,094,172 $ 4,535,707 $ 211 Health & Wellness Center 640,955 $ 1,687,858 $ 1,697,858 $ 630,955 $ 212 Marijuana Reserve 5,227,587 $ 355,972 $ - $ 5,583,559 $ 245 Public Safety Fund - $ 18,770,071 $ 18,770,071 $ - $ Total 10,714,619 $ 46,597,703 $ 46,562,101 $ 10,750,221 $ Estimated Estimated
Beginning Ending
Fund Balance FY2024-2025 FY2024-2025 Fund Balance
Fund Name 7/1/2024 Revenue Expenditures 6/30/2025
100 General Fund 4,535,707 $ 26,235,449 $ 26,323,954 $ 4,447,202 $ 211 Health & Wellness Center 630,955 $ 1,614,340 $ 1,624,340 $ 620,955 $ 212 Marijuana Reserve 5,583,559 $ 110,897 $ - $ 5,694,456 $ 245 Public Safety Fund - $ 19,103,468 $ 19,103,468 $ - $ Total 10,750,221 $ 47,064,154 $ 47,051,762 $ 10,762,613 $ CONSOLIDATED GENERAL FUND BUDGET SUMMARY FY 2023-2024
CONSOLIDATED GENERAL FUND BUDGET SUMMARY FY 2024-2025
Item Number: 11.

Page 520 of 1000 ends

Estimated Estimated
Beginning Ending
Fund Balance FY2023-2024 FY2023-2024 Fund Balance
Fund Name 7/1/2023 Revenue Expenditures 6/30/2024 Notes 101 Fire Development Fund 625,678 $ 75,000 $ 75,000 $ 625,678 $ 102 Park Development Fund 154,647 $ 150,000 $ 45,490 $ 259,157 $ 103 Streets/Traffic/Signals/Bridges 669,159 $ 300,000 $ 1,216,814 $ (247,655) $ 104 General Facilities Fund 208,856 $ 100,000 $ 50,000 $ 258,856 $ 105 Law Enforcement Facility (45,051) $ 50,000 $ 50,000 $ (45,051) $ 106 Community Center Fund 609,754 $ 100,000 $ 50,000 $ 659,754 $ 107 Aquatic Center Fund 151,367 $ 30,000 $ - $ 181,367 $ 108 Storm Drainage Fund 257,897 $ 200,000 $ 394,855 $ 63,042 $ 110 Art in Public Places 302,491 $ 94,070 $ 78,141 $ 318,420 $ 111 Quimby Act Fund 1,115,264 $ 600,000 $ - $ 1,715,264 $ 120 Offsite Streets/Sidewalks - $ - $ - $ - $
127 Measure A Fund 224,653 $ 630,000 $ 919,829 $ (65,176) $ 130 SLESA Fund 19 $ 150,100 $ 150,100 $ 19 $
140 State Gas Tax Fund (206,450) $ 650,000 $ 765,645 $ (322,095) $ 141 2012 Street Bond 92,639 $ 322,168 $ 317,766 $ 97,041 $ 142 SB1 Road Maintenance and Rehab 489,511 $ 700,000 $ 162,840 $ 1,026,671 $ 145 CDBG Fund 6,495 $ 290,000 $ 290,000 $ 6,495 $
160 AB2766 Air Quality Fund (2,862) $ 38,500 $ 35,000 $ 638 $ 161 SCAQMD Grant - $ - $ - $ - $
165 Department of Cannabis Control Fund 660,269 $ - $ 650,000 $ 10,269 $ 210 Capital Improvement Fund - $ 14,683,632 $ 14,683,632 $ - $ 222 Public Facilities Improvement Fund - $ 14,631,637 $ 14,631,637 $ - $ 230 American Recovery Act Fund 6,045,421 $ - $ 4,285,000 $ 1,760,421 $ 233 Abandoned Vehicle Abatement Fund 114,833 $ 51,050 $ 51,050 $ 114,833 $ 246 Emergency Preparedness Fund 45,613 $ 30,000 $ 30,000 $ 45,613 $ 250 County Service Area 152 (101,879) $ 177,890 $ 177,890 $ (101,879) $ 270 Cabot's Museum Fund 59,189 $ 137,000 $ 137,000 $ 59,189 $ 391 AD #91-1 Capital Projects Fund 123,414 $ - $ - $ 123,414 $ 392 AD #92-1 Capital Projects Fund - $ - $ - $ - $
393 AD #93-2 Capital Projects Fund - $ - $ - $ - $
401 City Debt Service Fund 20,423,723 $ 2,080,625 $ 16,712,262 $ 5,792,086 $ 421 CFD Skyborne 2020 Refunding Bond Fund 537,978 $ 191,000 $ 176,366 $ 552,612 $ 501 Citywide LMD #1 16,844 $ 1,673,432 $ 1,673,432 $ 16,844 $ 502-520 LMD Zones #2 246,723 $ 338,601 $ 338,601 $ 246,723 $ 552-569 DAD Zones 262,474 $ 224,255 $ 224,255 $ 262,474 $ 542-551
569-599 CFD Zones 2010-1 1,632,589 $ 366,037 $ 875,096 $ 1,123,530 $ 600 Self Insurance Gen Liab Fund (368,857) $ 225,000 $ 225,000 $ (368,857) $ 610 Self Insurance Workers Comp Fund 187,634 $ 200,000 $ 200,000 $ 187,634 $ 615 Equipment Replacement Fund 88,541 $ 253,348 $ 263,348 $ 78,541 $ 2 700 Housing Authority of DHS 5,457,673 $ 503,552 $ 350,983 $ 5,610,242 $ 911 RDA Obligation Retirement ABX126 (16,054,572) $ 4,450,414 $ 4,450,414 $ (16,054,572) $ 3 Total 24,031,677 $ 44,697,311 $ 64,737,446 $ 3,991,542 $ Notes
1 - Due to Quimby Fund from Park DIF Fund
2 - Includes depreciation expense - no cash effect
3 - Includes long-term notes and bonds due
RESTRICTED FUNDS BUDGET SUMMARY FY 2023-2024
Item Number: 11.

Page 521 of 1000 ends

Estimated Estimated
Beginning Ending
Fund Balance FY2024-2025 FY2024-2025 Fund Balance
Fund Name 7/1/2024 Revenue Expenditures 6/30/2025 Notes 101 Fire Development Fund 625,678 $ 75,000 $ 75,000 $ 625,678 $ 102 Park Development Fund 259,157 $ 150,000 $ 300,000 $ 109,157 $ 103 Streets/Traffic/Signals/Bridges (247,655) $ 300,000 $ 324,000 $ (271,655) $ 104 General Facilities Fund 258,856 $ 100,000 $ 50,000 $ 308,856 $ 105 Law Enforcement Facility (45,051) $ 50,000 $ - $ 4,949 $ 106 Community Center Fund 659,754 $ 100,000 $ 50,000 $ 709,754 $ 107 Aquatic Center Fund 181,367 $ 30,000 $ - $ 211,367 $ 108 Storm Drainage Fund 63,042 $ 200,000 $ 594,000 $ (330,958) $ 110 Art in Public Places 318,420 $ 9,407 $ 78,141 $ 249,686 $ 111 Quimby Act Fund 1,715,264 $ 600,000 $ 256,800 $ 2,058,464 $ 120 Offsite Streets/Sidewalks - $ - $ - $ - $
127 Measure A Fund (65,176) $ 630,000 $ 714,500 $ (149,676) $ 130 SLESA Fund 19 $ 150,100 $ 150,100 $ 19 $
140 State Gas Tax Fund (322,095) $ 668,450 $ 773,645 $ (427,290) $ 141 2012 Street Bond 97,041 $ 322,168 $ 320,844 $ 98,365 $ 142 SB1 Road Maintenance and Rehab 1,026,671 $ 700,000 $ 900,000 $ 826,671 $ 145 CDBG Fund 6,495 $ 291,000 $ 291,000 $ 6,495 $
160 AB2766 Air Quality Fund 638 $ 38,500 $ 35,730 $ 3,408 $ 161 SCAQMD Grant - $ - $ - $ - $
165 Department of Cannabis Control Fund 10,269 $ - $ - $ 10,269 $ 210 Capital Improvement Fund - $ 6,511,980 $ 6,511,980 $ - $ 222 Public Facilities Improvement Fund - $ - $ - $ - $
230 American Recovery Act Fund 1,760,421 $ - $ - $ 1,760,421 $ 233 Abandoned Vehicle Abatement Fund 114,833 $ 51,050 $ 51,050 $ 114,833 $ 246 Emergency Preparedness Fund 45,613 $ 30,000 $ 30,000 $ 45,613 $ 250 County Service Area 152 (101,879) $ 187,390 $ 187,390 $ (101,879) $ 270 Cabot's Museum Fund 59,189 $ 139,000 $ 139,000 $ 59,189 $ 391 AD #91-1 Capital Projects Fund 123,414 $ - $ - $ 123,414 $ 392 AD #92-1 Capital Projects Fund - $ - $ - $ - $
393 AD #93-2 Capital Projects Fund - $ - $ - $ - $
401 City Debt Service Fund 5,792,086 $ 2,078,050 $ 2,078,050 $ 5,792,086 $ 421 CFD Skyborne 2020 Refunding Bond Fund 552,612 $ 191,000 $ 176,514 $ 567,098 $ 501 Citywide LMD #1 16,844 $ 1,649,034 $ 1,649,033 $ 16,845 $ 502-520 LMD Zones #2 246,723 $ 338,601 $ 338,601 $ 246,723 $ 552-569 DAD Zones 262,474 $ 225,255 $ 225,255 $ 262,474 $ 542-551
569-599 CFD Zones 2010-1 1,123,530 $ 366,037 $ 875,096 $ 614,471 $ 600 Self Insurance Gen Liab Fund (368,857) $ 225,000 $ 225,000 $ (368,857) $ 610 Self Insurance Workers Comp Fund 187,634 $ 200,000 $ 200,000 $ 187,634 $ 615 Equipment Replacement Fund 78,541 $ 253,348 $ 263,348 $ 68,541 $ 700 Housing Authority of DHS 5,610,242 $ - $ 150,983 $ 5,459,259 $ 911 RDA Obligation Retirement ABX126 (16,054,572) $ 1,824,988 $ 1,824,988 $ (16,054,572) $ 3 Total 3,991,542 $ 18,685,358 $ 19,840,048 $ 2,836,852 $ Notes
1 - Due to Quimby Fund from Park DIF Fund
2 - Includes depreciation expense - no cash effect
3 - Includes long-term notes and bonds due
RESTRICTED FUNDS BUDGET SUMMARY FY 2024-2025
Item Number: 11.

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Project Project Number Funding Source FY2023-2024 FY2024-2025 FY2025-2026 Total Quimby Fund 300,000 135,369
Parks DIF Fund 300,000
CLEAN Grant 5,000,000 3,000,000
8th Street Sidewalk 3014 Measure A Fund 35,824
SB821 Funding 300,000
Measure A Fund 62,190
SB1 Fund 67,900
HSIP Cycle 9 Grant 289,064
SB821 Funding 340,000
Streets DIF Fund 310,000
CDBG 2020-2021 291,000
Quimby Fund 43,200
Wardman Park Design CLEAN Grant 700,000 700,000
Measure A Fund 7,130 55,220
HSIP Cycle 11 Grant 64,170 496,980
Citywide Annual Sidewalk
Repair 3015 Measure A Fund 30,000 20,000 32,400 82,400
Measure A Fund 100,000 50,000 50,000
SB1 Fund 30,000 30,000 40,000
Citywide Annual Striping 3016 Measure A Fund 20,000 20,000 20,000 60,000 MDP Update and Line A
Funding 6001 Storm Drain DIF Fund 53,940 50,000 43,481 147,421 Citywide Annual Road and
Shoulder Repair 3015 Measure A Fund 50,000 40,000 54,000 144,000 City of Desert Hot Springs
3-Year Capital Improvement Program
FY2023-24, FY2024-25, FY2025-26
300,000
8,735,369
335,824
419,154
650,000
334,200
623,500
Coporation Yard Park
4000
3019
HSIP Cycle 9-1 - Palm Drive
- Dillon to Pierson
Citywide Annual Slurry
3013
3014
4002
3027
8th Street Sidewalk - SB
821
Reflection Park
Rehabilitation Project
HSIP Cycle 11 Safety
Improvements

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Item Number: 11.

Project Project Number Funding Source FY2023-2024 FY2024-2025 FY2025-2026 Total City of Desert Hot Springs
3-Year Capital Improvement Program
FY2023-24, FY2024-25, FY2025-26
Storm Drain DIF Fund 135,000 500,000
Streets DIF Fund 300,000
Measure A Fund 25,000 25,000 66,475
CVAG 2019 Funding 81,000 75,000 283,074
ATP Cycle 6 Funding 8,975,000
Measure A Fund 398,000
RCTD Reimbursement 250,000
CVAG 2019 Funding 79,398
Streets DIF Fund 350,000
CDBG 2019-2020 246,935
CDBG 2021-2022 300,000
Parks DIF Fund 42,120
Pierson Blnd Slurry Seal &
Restriping 3017 Measure A Fund 54,000 54,000
Streets DIF Fund 366,680
ATP Cycle 6 Funding 8,422,000
Measure A Fund 700,000
SB1 Fund 800,000
Streets DIF Fund 500,000
PD Building Improvements
8002
Public Facilities
Improvement Bond
Fund 794,630 794,630
935,000
555,549
10,052,398
589,055
10,788,680
ATP Cycle 6 - Hacienda
Avenue Spa Zone
3023
3002
Restroom Replacement at
Tedesco Park
4015
Two Bunch or Dillon Road
Bridge Designs 3028
3001
Palm Drive Improvements -
I10 to Camino Aventura
CVLink - DHS Extension
Project

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Item Number: 11.

Project Project Number Funding Source FY2023-2024 FY2024-2025 FY2025-2026 Total City of Desert Hot Springs
3-Year Capital Improvement Program
FY2023-24, FY2024-25, FY2025-26
PD Annex Building and Site
Improvements 8003
Public Facilities
Improvement Bond
Fund 6,443,738 6,443,738
New Fire Station 98
8004
Public Facilities
Improvement Bond
Fund 6,906,992 6,906,992
Fire Station 37
Improvements 8005
Public Facilities
Improvement Bond
Fund 1,163,741 1,163,741
Storm Drain DIF Fund 180,000
Park and Two Bunch Palms
Signal 3030 Streets DIF Fund 100,000 100,000
Measure A Fund 8,000
SB1 Fund 94,939
SB821 Funding 350,000
ARPA Fund 2,000,000
ATP Cycle 4 Funding 1,498,000
Measure A Fund 300,000
SB1 Fund 900,000
Line C-1 Storm Drain 6003 RCFC Funding 258,000 3,440,000 3,698,000 Total 37,471,566 7,236,400 15,236,623 59,944,589
180,000
3,950,939
1,200,000
Pierson Blvd Resurfacing -
Little Morongo to Indian
Canyon
3031
ATP 4 - Hacienda Ave West
3003
3029
Indian Canyon Bridge
(Bridges Over Water)

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Item Number: 11.

CITY OF DESERT HOT SPRINGS

APPROPRIATIONS (GANN) LIMIT

PROCEEDS OF TAX CALCULATION
FISCAL YEAR 2023-2024

BUDGETED BUDGETED

PROCEEDS NON-PROCEEDS TOTAL

REVENUE SOURCE OF TAX OF TAX REVENUE
TAXES
Property (1) 4,356,453 $ 4,356,453 $
Sales (2) 9,718,379 $ 9,718,379 $
Recycling Franchise Fees (3) 275,000 $ 275,000 $
Motor Vehicle In-Lieu (4) 3,514,313 $ 3,514,313 $
Business Gross Receipts (5) 250,000 $ 250,000 $
Utility Users (6) 2,900,000 $ 2,900,000 $
Other Taxes (7) 3,950,000 $ 3,950,000 $
FEES
Development Fees (A) 2,651,000 $ 2,651,000 $
Franchise (B) 2,300,000 $ 2,300,000 $
Other Fees, Permits & Licenses (C) 197,500 $ 197,500 $
Fines & Forfeitures (D) 423,600 $ 423,600 $
Administrative Charges (E) 413,032 $ 413,032 $
Intergovernmental (F) 2,924,858 $ 2,924,858 $
Miscellaneous (G) 693,191 $ 693,191 $
Total $ 24,964,145 $ 9,603,181 $ 34,567,326
% of Total 72.22% 27.78% 100.00%
Allocation of Interest (I) $ 72,219 $ 27,781 $ 100,000
Adjusted Total $ 25,036,364 $ 9,630,962 $ 34,667,326
PAGE 1
Item Number: 11.

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APPROPRIATIONS SUBJECT TO THE LIMIT
FY 2023-2024 Total Revenue $ 34,667,326
Less Non-Proceeds of Tax 9,630,962 $
A) Total Appropriations Subject to the Limit 25,036,364 $

APPROPRIATIONS LIMIT
B) FY 2022-2023 Appropriations Limit $ 40,289,946
C) Change Factor % Change Factor
Cost of Living Adjustment - CPI 4.44 1.0444
Population Adjustment - PA 0.68 1.0068
Change Factor (CPI x PA) 1.0515
D) Increase (decrease) in Appropriations Limit 2,074,932 $ E) FY 2023-2024 Appropriations Limit (B x C) $ 42,364,878

REMAINING APPROPRIATIONS CAPACITY
(E - A) $ 17,328,514
Remaining Capacity as Percent of the FY 2023-2024 40.90% Appropriations Limit

CITY OF DESERT HOT SPRINGS

APPROPRIATIONS (GANN) LIMIT CALCULATION
FISCAL YEAR 2023-2024
PAGE 2
Item Number: 11.

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COST OF POPULATION APPROPRIATIONS

FISCAL LIVING LIMIT APPROPRIATIONS SUBJECT TO REMAINING

YEAR CHANGE CHANGE LIMIT LIMIT CAPACITY
2007-2008 4.42% 6.23% 20,072,894 $ 7,955,785 $ 12,117,109 $ 2008-2009 4.29% 4.66% 21,909,564 $ 7,685,367 $ 14,224,197 $ 2009-2010 0.62% 2.36% 22,564,660 $ 8,567,083 $ 13,997,577 $ 2010-2011 -2.54% 0.85% 22,178,805 $ 8,272,160 $ 13,906,645 $ 2011-2012 2.51% 5.92% 24,081,746 $ 9,018,910 $ 15,062,836 $ 2012-2013 3.77% 1.32% 25,319,548 $ 9,122,718 $ 16,196,830 $ 2013-2014 5.12% 0.39% 26,719,719 $ 9,846,780 $ 16,872,939 $ 2014-2015 -0.23% 0.60% 26,818,582 $ 9,714,316 $ 17,104,266 $ 2015-2016 3.82% 0.53% 27,990,554 $ 9,804,713 $ 18,185,841 $ 2016-2017 5.37% 0.88% 29,753,959 $ 10,402,937 $ 19,351,022 $ 2017-2018 3.69% 0.78% 31,092,887 $ 10,876,926 $ 20,215,961 $ 2018-2019 3.67% 1.35% 32,669,296 $ 14,332,218 $ 18,337,079 $ 2019-2020 3.85% 0.51% 34,100,211 $ 14,638,188 $ 19,462,023 $ 2020-2021 3.73% -0.08% 35,344,869 $ 17,179,499 $ 18,165,370 $ 2021-2022 5.73% 0.17% 37,433,751 $ 22,131,517 $ 15,302,234 $ 2022-2023 7.55% 0.07% 40,289,946 $ 23,613,378 $ 16,676,568 $ 2023-2024 4.44% 0.68% 42,364,878 $ 25,036,364 $ 17,328,514 $

CITY OF DESERT HOT SPRINGS

SUMMARY OF ANNUAL APPROPRIATION (GANN) LIMITS
PAGE 3
Item Number: 11.

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SR-23-158
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: June 20, 2023
Department: City Manager
Prepared by: Daniel Porras, Interim Deputy City Manager Subject: Tax Installment Agreement Ordinance
RECOMMENDATION:

Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California, adding Chapter 3.06 "Tax Installment Agreements" pertaining to certain types of taxes contained in Chapters 3.20, 3.33, 3.34, 3.35, and 3.37 ("Subject Tax Structures") of the Desert Hot Springs Municipal Code."
BACKGROUND:

As one of the first cities to allow for the legal cultivation, manufacturing, and sale of cannabis, Desert Hot Springs experienced a surge of industry related development. While the initial demand for cannabis related development in Desert Hot Springs was strong, the industry has recently experienced a lag in growth and in some cases has had negative impacts in existing businesses. Construction costs, significant decrease in wholesale flower prices, the illicit market, and more are placing added financial burden on operators. These challenges are not unique to Desert Hot Springs. In fact, the State of California suspended its cannabis cultivation tax in 2022 as a result of the strained market conditions.

The financial burden for some operators has proven to be too excessive and some cannabis businesses have recently closed, and in other cases some businesses have fallen behind in their tax obligation to the City.

In similar cases some Hotel operators may also experience a financial burden and start to fall behind on their Transient Occupancy Tax (TOT) obligation to the City, and their businesses begin to fail.

In order to try to redeem all or partial tax obligations to the City from the cannabis businesses and from the hotels that have fallen behind on tax payments, Staff is proposing an Ordinance that will allow the City Manager to negotiate a tax installment agreement with individual operators. This will help make sure their businesses do not close, and at the same time make sure their tax obligations are paid to the City.

DISCUSSION:

Title 3 of the Desert Hot Springs Municipal Code (DHSMC), titled Revenue and Finance, codifies several chapters regulating and implementing various tax structures; including Chapter 3.20 which regulates and implements “Transient Occupancy Tax”, Chapter 3.33 which regulates and implements “Marijuana Cultivation Tax”, Chapter 3.34 which regulates and implements “Marijuana Tax, Chapter Item Number: 12.

Page 529 of 1000 ends

SR-23-158

3.35 which regulates and implements “Medical Marijuana Cultivation Tax,” and Chapter 3.37 which regulates and implements “Medical Marijuana Tax”.

The proposed Ordinance will modify those sections of the DHSMC to allow for the City Manager or his/her designee to initiate tax installment agreements with entities or persons delinquent in paying taxes for the subject tax structures. The City Manager will have authority to negotiate, execute and bind the City into a tax installment agreement, and any amendments, for the full amount of the taxes owed, without interest. The City Attorney shall review and approve the agreements and any amendments as to form.

The changes to the DHSMC are shown in the attached proposed Ordinance.

FISCAL IMPACT:

A Tax Installment Agreement will provide a mechanism for individuals or entities to pay their tax obligation to the City which will result in recovering potentially lost revenue.

ATTACHMENTS:

Tax Installment Ordinance
Item Number: 12.

Page 530 of 1000 ends

ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

DESERT HOT SPRINGS, CALIFORNIA, ADDING CHAPTER

3.06 “TAX INSTALLMENT AGREEMENTS” PERTAINING TO

CERTAIN TYPES OF TAXES CONTAINED IN CHAPTERS

3.20, 3.33, 3.34, 3.35 AND 3.37 (“SUBJECT TAX
STRUCTURES” OF THE DESERT HOT SPRINGS MUNICIPAL
CODE (“DHSMC”)
WHEREAS, the City of Desert Hot Springs (“City”) is a municipal corporation and a charter city; and
WHEREAS, Title 3 of the Desert Hot Springs Municipal Code (“DHSMC”), titled Revenue and Finance, codifies several chapters regulating and implementing various tax structures; and
WHEREAS, in particular and related to this Ordinance, 1) Chapter 3.20 regulates and implements “Transient Occupancy Tax”, 2) Chapter 3.33 regulates and implements “Marijuana Cultivation Tax”, 3) Chapter 3.34 regulates and implements “Marijuana Tax, 4) Chapter 3.35 regulates and implements “Medical Marijuana Cultivation Tax,” 5) Chapter 3.37 regulates and implements “Medical Marijuana Tax” (Subject Tax structures”; and WHEREAS, it has come to the City’s attend that various entities and persons have delinquent in paying taxes for the Subject Tax Structures, have inquired into entering into tax installment agreements with the City to pay their taxes due and owing to the City; and WHEREAS, the City Council deems entities and persons who are delinquent in paying taxes for the Subject Tax Structures may enter into a Tax Installment Agreement with the City upon City initiation, which agreement is to be negotiated and executed by the City Manager in accordance with this Ordinance; and
WHEREAS, the City Council finds and determines that is in the City’s best interest to enter into Tax Installment Agreement for entities and people delinquent in paying taxes for the Subject Tax Structures because, on the one hand, the City will collect the taxes due and owing, and on the other hand, the entity or person will benefit as they will have more time to become economically viable; and
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and
WHEREAS, the City Council finds that this ordinance is good for public health, safety and welfare.

Item Number: 12.

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NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Desert Hot Springs as follows:

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. ADDITION OF CHAPTER 3.06 “TAX INSTALLMENT
AGREEMENTS”

3.06.010 Policy.

The City Council finds and determines that it is in the City’s best interest of the City to enter into Tax Installment Agreements (“Agreement”) for entities and People delinquent in paying taxes for taxes relating to Chapter 3.20 “Transient Occupancy Tax”, 2) Chapter 3.33 “Marijuana Cultivation Tax”, 3) Chapter 3.34 “Marijuana Tax”, 4) Chapter 3.35 “Medical Marijuana Cultivation Tax,” and/or 5) Chapter 3.37 “Medical Marijuana Tax” (collectively “Subject Tax Structures”). On the one hand, such Agreement(s) will provide the City with an addition mechanism for collection of delinquent taxes, and on the other hand, the entity or person will benefit as they will have more time to become economically viable, providing a greater chance of tax remittance.

3.06.020 Authority / Content of Tax Installment Agreement.

A. The City, acting through the City Manager, or his/her designee, may initiate Tax Installment Agreements with entities or persons delinquent in paying taxes for the Subject Tax Structures.

B. The City Manager, or his/her designee shall have the sole authority to negotiate, execute and bind the City into a Tax Installment Agreement, and any amendments thereto, for the full amount of the taxes owed, without interest.

C. The Tax Installment Agreement shall be prepared to the satisfaction of the City Manager, or his/her designee. The City Attorney shall review and approve the agreement and any amendments as to form.

D. Nothing in the Agreement shall be construed as limiting the City’s rights in using whatever methods it deems appropriate to collect the delinquent taxes.

Section 3. SEVERABILITY
That, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 4. REPEAL OF CONFLICTING PROVISIONS
Item Number: 12.

Page 532 of 1000 ends

That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 5. AMENDING OF BAIL SCHEDULE

That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 6. EFFECTIVE DATE
That this ordinance shall take effect pursuant to law.

Section 7. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 12.

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PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2023 by the following vote:

Ayes:

Noes:

Abstain:

Absent:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
____________________________________
Jennifer A. Mizrahi, City Attorney
C:\Users\jennifer.STREAMKIM\Stream Kim Hicks Wrage & Alfaro, PC\Z Drive - Documents\data\004 DHS\DHSO\0001-01 General\Doc\6826. - Ordinance for City Manager to Enter into Payment Agreements for Taxes. (05.24.23 ).docx Item Number: 12.

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SR-23-160
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: June 20, 2023
Department: Economic Development
Prepared by: Sean Smith, Economic Development Director
Subject: Professional Services Agreement with JNS Media Specialist for Marketing Services
RECOMMENDATION:

Authorize the City Manager to execute a Professional Services Agreement with JNS Media Specialists, Inc. for brand development, creative, and marketing services in an amount not to exceed $50,000 with substantive edits to be negotiated and approved by the City Manager and upon approval as to form by the City Attorney.

BACKGROUND:

Destination development is more important for the growth and success of cities than ever before. The increased value people are placing on unique attractions and experiences associated with destinations continues to grow. This is particularly true with travelers, the majority of which is made up of individuals that place a higher value on experiences. The result is a need for cities to understand and then strategically enhance and promote their specific brand to capture interest in investment and visitation.

The City of Desert Hot Springs is in a very lucrative position in terms of momentum and opportunity. It is the fastest growing, most diverse, and safest city in the region. Desert Hot Springs is the gateway to the Sand to Snow National Monument and Joshua Tree National Park. Residents and visitors are just minutes away from the many attractions and activities that make the region such an attractive destination to visit and live. The City offers beautiful views, fantastic outdoor activities, exceptional resorts, and most special water. Just beneath the surface exists both hot and cold aquifers that produce some of the world’s purest sources of healing mineral and drinking water. The hot mineral springs have been praised for their therapeutic attributes while the drinking water has been recognized as the world’s best in multiple international competitions.

Legal cannabis cultivation found its first California home in Desert Hot Springs. The City is now working to help shape the future of the industry by establishing therapeutic and recreational opportunities.

Additionally, Desert Hot Springs is one of just a few communities with ample opportunities for new development across all industry sectors.

The City of Desert Hot Springs needs a marketing agency partner to assist in shaping its story and creating a strategic marketing plan to enhance its position as the premier destination for health and wellness. The agency would also provide design services in the creation of a variety of promotional Item Number: 13.

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SR-23-160
material related to tourism and economic development efforts with development and implementation of marketing strategies for each.

DISCUSSION:

In fall of 2022, staff initiated a Request for Qualifications seeking a professional full-service agency to assist with the following:
• Brand identification and refinement for marketing purposes • Establishment and management of social media channels • Marketing strategy
• Media buys and management thereof
• Design/creative of promotional materials and collateral • Coordination of videography and photography
The City received proposals from fourteen marketing agencies. After careful evaluation based on experience, quality of work, and cost, staff identified JNS Media Specialists (“JNS”) as the most qualified consultant.

An initial contract was executed for the remainder of fiscal year 2022/23 to establish tourism facing social media channels and conduct a community-wide survey to understand how the City’s businesses, employees, and residents feel about Desert Hot Springs. The results of these surveys will be used as feedback to help guide the development of marketing, messaging, and brand development for the City.

If approved, the new contract for fiscal year 2023/24 will focus on a larger scope of work in keeping with the preceding needs and as more specified in Exhibit “A”.

FISCAL IMPACT:

The amount of the contract is not to exceed $50,000, which would be funded through the Economic Development Department budget for fiscal year 2023/24.

ATTACHMENTS:

Exhibit A - JNS Scope of Services 6-20-23
6889 - Professional Services Agreement JNS
Item Number: 13.

Page 536 of 1000 ends

EXHIBIT “A”

SCOPE OF SERVICES

SCOPE OF SERVICES
To create and implement a cohesive marketing strategy for the City of Desert Hot Springs, leveraging current economic development and marketing plans as a base guide. Marketing is an effective way to create awareness of and stimulate conversations surrounding the city and businesses among target audiences, utilizing the below tactics.

Task 1: Brand Identification and Refinement
As one of the fastest growing cities in Greater Palm Springs, Desert Hot Springs has served as the gateway to Joshua Tree State Park Sand to Snow National Monument.

Known for its hot mineral water, many travelers and businesses sought Desert Hot Springs for its healing benefits and health and wellness opportunities for decades.

Since the State of California’s legalization of cannabis, the community has embraced this industry and is now working to help shape its destination development future with accessible recreational experiences for visitors and commerce.

In its rise as California’s premier health and wellness destination, the future is now for Desert Hot Springs to carve a fresh and inspiring pathway to ignite its economic vitality and provide opportunity for today’s travelers, small businesses, and residents. JNS Next will bring its know-how, creativity, passion, and innovative thinking to partner and support its reimagination of its city’s brand position and growing economy. It starts with the alignment of its key strengths and working in concert to tell a new story:
(1) Reinforcing and promoting its moniker as “California’s Spa City” (2) Reframe and re-branding of the Spa Zone
(3) Create strategic content that educates benefits of cannabis and hemp (4) Create branded pillars that intersect and enhance the travel experience and frame
destination development plan (i.e.)
- Nature Trails
- Vortex energy/ stargazing
- Healing waters
- Plant/ hemp-based spa therapies
(5) Recruit and invite the creative community to support and promote destination with
artfully curated programs and content for TikTok, Reels and social media posts. (6) Stand-out for wellness – Create useful and educational health and wellness content that foster positive storytelling for Desert Hot Springs as a destination “doing good”
for all.

Item Number: 13.

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JNS Next shall perform all work requested and serve in partnership to collaborate and elevate key areas aimed to drive economic growth and conversation that enhances the image of the City of Desert Hot Springs’ community and expanding its opportunities.

Task 2: Marketing Strategy
Strategic planning is the compass that guides our efforts. The process of planning starts with meeting and collaborating with the client to discuss and determine goals and objectives for the quarter and contracted year based upon pre-established budgets.

During this process, we evaluate both the targeted audience and geographic markets we want to impact and will develop the overall marketing plan. At this juncture, we will also develop media one-sheets that contain all critical elements needed to satisfy key objectives. We will consider the use of all media vehicles based on the strategic plan, including but not limited to digital tactics (display, search, paid social and programmatic buys), network and cable television, OTT, terrestrial and digital radio, consumer and trade print, outdoor, specialty media, etc.

Throughout this process, we will be collaborating with the client and its collaborative partners to determine the best approach for the multi-phased marketing efforts. As we know, consumers (including our residents and businesses) are being inundated with hundreds of messages daily. Our strategic plan will ensure that we’re using key messaging delivered optimally to cut through the clutter and deliver the best results.

JNS Next is in constant communication with vendors and partners to ensure that all strategies reflect all new trends coming into the marketplace. We establish expectations, goals and objectives so that our media partners only come to us with third party sponsorships, value added and co-op opportunities that make sense for the client. The goal is always to stay one step ahead of the competition.

We will also collaborate to arrange critical documentation during the planning, execution and reconciliation phases of the marketing process, which will include creative assets, messaging tactics and geotargets, brand personas, media reports, flow charts, strategy decks, tactical one sheets, timelines, media budgets and invoices. We will provide ongoing psychographic information to address consumer attitudes and behavior within the identified markets. Additionally, our team will gather and supply all critical elements needed for various research initiatives, including creative assets, analytical reporting, tactics used, market information, flight/run dates, etc. We will also assess secondary research findings (as well as any research supplied by the client) to help determine brand advertising effectiveness, opportunities and needs. Extensive and ongoing research will also be supplied for potential new markets and consumers to effectively plan future strategies. Our research findings will help determine viable solutions and the best media vehicles for effectively and efficiently maximizing reach to the markets affiliated with your stakeholder partners, such as hotels, events, restaurants, and businesses.

Special opportunities such as exclusive partnerships arise when we least expect them sometimes, and we like to propose and negotiate these collaborations with our clients when we feel the timing and synergy is right.

Item Number: 13.

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Our strategies and campaigns are always based off specific goals and industry benchmarks. We analyze and optimize our campaigns daily, always improving them to reach and exceed KPIs. Some measurements of success include, but are not limited to, impressions, clicks, time on site/content, engagement, click through rate, video completion percent, hotel bookings, revenue, total economic impact, open rate, newsletter signups, visitor guide requests/downloads, partner handoffs, pages per session, and more. We often use A/B testing of creative and messaging to determine what resonates best with our audiences. Looking at all these factors and understanding them on a deep level helps us distribute the right content, to the right person, at the right time. We are familiar with a variety of insight tools including Google Analytics, Adara, TripAdvisor MEI reports, Expedia reports, Sojern, Arrivalist, Basis, Nativo, SMARI, Tourism Economics, Uber Media, Symphony, VisaVue and more.

Task 3: Social Media
JNS Next will provide the below interactive media marketing services for the organizations social media channels. The goal of this project is to create and improve the cohesive digital social presence of the client and drive traffic to the website, conversation/engagement and business. Finally, the social media strategy and implementation is meant to work in conjunction with an overall marketing and public relations strategy, ensuring consistent communication across marketing channels and platforms.

Social media remains a free networking and outreach tool to build awareness and an emotional rapport with an audience. Cities can build interest by posting relevant news articles, area business news, events, case studies, photos and more as related to the organization. As consumers, business owners, businesses/events, media and the public gains greater awareness and knowledge of business, social media provides the opportunity to keep the area top of mind as a top city across the US and globally.

JNS Next will:
• Identify appropriate social media platforms (such as Facebook, Instagram, Tik Tok & LinkedIn) to reach the identified target audiences and social media tools/methods for the destination and businesses by posting content consistently. • Create a master strategy/approach document, including implementation tactics, specific social media techniques, brand voice/tone, goals and objectives discussion with leadership/staff, and evaluation of analytics for each platform.
• Ensure consistent branding and key messaging on the social media accounts, such as profile images, header images and background images for platforms. • Utilize tactics for earning and maintaining followers on the identified social media platforms to spread awareness of the business and reach. Tactics for engaging the audience with posts and building awareness. • Create and utilize existing owned content for the client as part of a monthly retainer, including but not limited to text, graphics, images and videos.

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• Monitor and post on the social media sites as an administrator for the client, providing continuous recommendations and tips to staff, and area businesses/influencers for further implementation beyond support services. • Organize and manage all social media posts via management software • Monthly content calendars are planned the month before; we will research, collect assets and write the content to be approved by the client ahead of time, usually two weeks before the start of the next month. Upon approval, we will schedule all the posts for the month and monitor them for comments and engagement.
• TBD: Create an advertising program for social media sites including boosted, targeted posts to create engagement, and a larger audience, as well as retargeting and remarketing to drive traffic to the website. • Provide monthly reporting metrics to the client on successes and recommendations for enhancement and further engagement.

Task 4: Creative Work
Graphic design and creative as needed for city events such as Memorial Day, Independence Day Celebration, Day of the Dead, Trunk or Treat, holiday parade and festival, Veteran’s Day celebration, next year’s 60th city birthday, etc.

Branding and design is the DNA of your city, and compelling design elevates it to a whole new level. Branding is one of the most important aspects of any business because it represents who you are and what your organization stands for. If you were to personify your company, your brand is what it would look like as it reflects your personality, values and look that will attract the audience you are pursuing. Our creative team has a sensibility to the most minute element of a brand – from typography to the perfect shade of color. The visual aesthetic of how you represent your brand through design has the power to attract individuals, create emotions, and leave a lasting impression in your customer’s mind. We approach each design project like producing a blockbuster film. We make sure we combine top notch visuals with a killer script (in this case, ad copy) to bring a story to life. Regardless of the client or industry, our goal is always to evoke feelings that influence behaviors.

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND

JNS NEXT
This Professional Services Agreement (“Agreement”) is made and entered into this ____ day of _____, 2023, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City,” and JNS Media Specialists, INC (DBA JNS Next), a California corporation, hereinafter referred to as “Consultant.”
RECITALS:

WHEREAS, the City desires to utilize the services of Consultant, as an independent contractor, to provide the City with specialized marketing services (sometimes hereinafter, the “Services”), as described in more particularity in Exhibit “A,” attached hereto and incorporated herein by this reference as the “Scope of Services”; and
WHEREAS, Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS,

CONDITIONS AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER

GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth in full herein.

Section 2. SCOPE OF SERVICES
Consultant shall provide to the City the Services on an monthly basis in a manner satisfactory to the City and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions, as described in more detail in the Scope of Services, Exhibit A. In the event a conflict exists between this Agreement and the Scope of Services, the former shall supersede.

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Section 3. TERM
This Agreement shall commence as of the date in the opening paragraph of this Agreement and shall continue in force and effect until June 30, 2024, or in accordance with Section 7 of this Agreement, subject to allocation of funds pursuant to a duly approved City budget.

Section 4. COMPENSATION
The City agrees to pay Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, as in the attached Services in an amount not to exceed Fifty Thousand Dollars ($50,000.00), as per Exhibit A attached below and incorporated.

Section 5. METHOD OF PAYMENT
a. Consultant shall submit invoices to the City, not more often than once a month, describing the work performed. Consultant’s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. The City shall pay Consultant no later than thirty (30) days after approval of the invoice by City staff provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement, that the number of hours of service set forth in the invoice reflect the amount of time ordinarily expended for such service by members of the profession currently practicing in the same locality under similar conditions, and that all expenses, rates and other information set forth in the invoice are consistent with the terms and conditions of this Agreement. Review and approval of invoice by City staff will occur within thirty (30) calendar days of receipt of invoice.
b. The Consultant shall submit invoices under this Agreement to:

Doria Wilms
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Email: [email protected]
Section 6. EXTRA WORK
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At any time during the term of this Agreement, the City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform Extra Work without written authorization from the City.

Section 7. TERMINATION
This Agreement may be terminated by the City immediately for cause. Either party may terminate this Agreement without cause upon twenty four (24) hours written notice of termination to the other party. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination, provided that Consultant shall have satisfied all its obligations under this Agreement through and including the effective date of termination, and is not otherwise in breach of this Agreement.

Section 8. OWNERSHIP OF DOCUMENTS
All documents and other writings, including drafts, prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party. Consultant shall, at its expense, provide such documents and other writings in a format requested by the City, or in such other electronic format as reasonably requested by the City.

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, videos, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without prior written consent of the City, be used by Consultant for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential.

b. Consultant shall not use the City’s insignia, photographs, videos, or any other product generated through performance of Consultant’s Services, for any publicity pertaining to the Consultant’s Services under this Agreement in any magazine, trade Item Number: 13.

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paper, newspaper, website, television or radio production or other similar medium without the prior written consent of the City.

Section 10. CONSULTANT’S BOOKS AND RECORDS
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant’s address indicated for receipt of notices in this Agreement. d. Where the City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, the City may, by written request of any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained at City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

Section 11. INDEPENDENT CONTRACTOR’S STATUS: NOT AGENT

OF THE CITY
Consultant shall at all times during the term of this Agreement remain, as to the City, a wholly independent contractor and shall perform the services described in this Agreement as an independent contractor and further, hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors. Neither the City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as herein set forth. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Consultant or by any third person to create the relationship of principal and agent and Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity Item Number: 13.

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whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the City to any obligation whatsoever.

Section 12. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR’S STATUS

OF CONSULTANT
a. Consultant represents and acknowledges the following:
(1) The City is not required to provide any training or legal counsel to Consultant or its employees in order for Consultant to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the City. (3) The services described in this Agreement can be performed without the use of City equipment, materials, tools or facilities, with the exception of the purpose of this Agreement.
(4) Nothing in this Agreement shall be interpreted to imply that the City must maintain any contractual relationship with Consultant on a continuing basis after termination of this Agreement.
(5) The City will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by Consultant to perform the services described in this Agreement. (6) Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are employees of the City. b. The City represents and acknowledges the following:
(1) Consultant is not required to comply with daily instructions from City staff with respect to when, where or how Consultant must perform the services set forth in this Agreement.
(2) Consultant is solely responsible for determining who, under the supervision or direction of Consultant, will perform the services set forth in this Agreement.
(3) The City will not hire, supervise or pay any assistants working for Consultant pursuant to this Agreement.

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(4) Nothing in this Agreement shall be interpreted to imply that the Consultant must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.
(5) It is the sole responsibility of Consultant to set the hours in which Consultant performs or plans to perform the services set forth in this Agreement. (6) Consultant is not required to devote full time to the business operations of the City in order to perform the services set forth in this Agreement. (7) Consultant is not required to perform the services set forth in the Agreement in any particular order or sequence.
(8) Nothing in this Agreement shall be interpreted to preclude Consultant from working for other persons or firms, provided that such work does not create a conflict of interest.
(9) Consultant is not required to perform the Services at City-owned property.
(10) Consultant will perform services that are outside the usual course of the City’s business.

Section 13. CIVIL CODE SECTION 1542 WAIVER
Consultant expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:
“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”
This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind, that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees’ Retirement System (“CalPERS”) that are only afforded to employees and not independent contractors.

Consultant further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
__________
Initials
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Section 14. CONFLICTS OF INTEREST
a. Consultant (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
(1) Does not make or participate in:
(i) the making or any governmental decisions regarding
approval of a rate, rule, or regulation, the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract;
(iv) granting the City approval to a contract that requires City approval and to which the City is a party, or to the
specifications for such a contract;
(v) granting the City approval to a plan, design, report, study, or similar item; or
(vi) adopting, or granting City approval of, policies, standards, or guidelines for the City or for any subdivision thereof. (2) Does not serve in a staff capacity with the City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code under Government Code Section 87302.

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c. In the event the City officially determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk.

Section 15. PROFESSIONAL ABILITY OF CONSULTANT;
WARRANTY; FAMILIARITY WITH WORK; PERMITS AND

LICENSES
a. Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services.
b. By executing this Agreement, Consultant warrants that:
(1) it has thoroughly investigated and considered the work to be performed;
(2) it has investigated the issues, regarding the scope of services to be provided;
(3) it has carefully considered how the work should be performed; and (4) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. c. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the City, it shall immediately inform the City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the City Manager or appropriate City representative.
d. Consultant represents that it and all of its subcontractors, if any, have obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

Section 16. COMPLIANCE WITH LAWS
Consultant shall comply with all local, state and federal laws and regulations applicable to the Services required hereunder.

Section 17. INDEMNIFICATION
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a. Consultant shall defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs, expenses and attorneys’ fees in connection therewith), arising out of the performance of this Agreement, except for any such claim arising out of the sole negligence, recklessness, or willful misconduct of the City, its officers, agents, employees or volunteers.
b. The City does not, and shall not, waive any rights that it may have against Consultant under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. Notwithstanding the provisions of subsections a. and b. of this section, Consultant shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Consultant’s work promptly, or by reason of delay or faulty performance by the City, construction contractors, or governmental agencies, or by reason of any other delays beyond Consultant’s control, or for which Consultant is without fault. d. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

Section 18. INSURANCE REQUIREMENTS
a. Policies. Consultant, at Consultant’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker’s Compensation Coverage. Consultant shall maintain Worker’s Compensation Insurance and Employer’s Liability Insurance for its employees in accordance with the laws of the State of California, of an amount not less than one million dollars ($1,000,000) per accident. In addition, Consultant shall require each subcontractor to similarly maintain Worker’s Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. If any class of employees employed by Consultant pursuant to this Agreement is not protected by the California State Worker’s Compensation Law, Item Number: 13.

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Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Consultant has no employees performing work under this Agreement. Consultant agrees to waive its statutory immunity under any worker’s compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved in the Services to do the same.
(2) General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence, combined single limit coverage for bodily injury, personal injury and property damage associated with work contemplated in this Agreement. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Consultant shall provide insurance on an occurrence, not claims-made basis. Consultant acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof.
(3) Automobile Liability Coverage. Consultant shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Consultant arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Consultant shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Consultant were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(4) Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant’s Services, whether such Services are performed by Consultant or by its employees, subcontractors, or sub-consultants, to the extent such persons other than Consultant are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($1,000,000) per claim, and two million dollars ($2,000,000) in the aggregate.

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b. Endorsements. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing a Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
(1) Except as otherwise provided by law, the City, its elected or appointed officers, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work or operations.
(2) This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have shall be considered excess insurance only and shall not contribute with it. (3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(4) The insurer waives all rights of subrogation against the City, its elected or appointed officials, officers, employees or agents. (5) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
(6) The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
c. Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the approval of City for any self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of the City Manager, Consultant may either reduce or eliminate such deductibles or selfinsured retentions with respect to City, its officers, employees, agents, and volunteers.

The City Manager may condition approval of any reduction or elimination in deductible or self-insured retention levels with a requirement that Consultant procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. d. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before Item Number: 13.

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commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. e. Imposition of Insurance Requirements. Provided the City gives its written consent for any persons other than Consultant to perform any part of the Services, Consultant agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Consultant enters into contracts or whom Consultant hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and name as additional insureds the parties to this Agreement consistent with Section 18b(1) hereof.

Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section.
f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Consultant agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated.
g. Failure to Obtain Coverages. Consultant agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the performance of Services, to the extent such is permissible under this Agreement, Consultant shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City or its officers, employees, servants, volunteers, agents and independent contractors.
h. Notice of Cancellation or Reduction in Coverage. In the event that any coverage required in this Agreement is canceled, reduced, limited, or materially affected in any other manner, Consultant shall provide written notice to the City either by facsimile and/or via certified mail, at Consultant’s earliest possible opportunity and in no case later than fifteen (15) calendar days after Consultant is notified of the change in coverage.

Section 19. NOTICES
a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the parties as follows:

To the City: Doria Wilms
City of Desert Hot Springs
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11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
To Consultant: Garry Sage
JNS Next
78080 Calle Estado, Suite 201
La Quinta, CA 92253
Telephone: (760) 775-0000
b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 20. DEFAULT
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen (15) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder.
b. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein. c. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may remain uncured for more than fifteen (15) calendar days following written notice, as provided above, a "material breach" shall be deemed to have occurred. In the event of a material breach, the injured party shall be entitled to seek any appropriate remedy or damages as otherwise set forth herein and by initiating legal proceedings.

Section 21. REMEDIES
If Consultant materially breaches any of the terms of this Agreement, the City’s remedies shall include, but shall not be limited to, the following:

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a. Immediately terminate the Agreement;
b. Retain any other work product prepared by Consultant pursuant to this Agreement;
c. Retain a different consultant to complete the Services that are not finished by Consultant.

Section 22. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Consultant with respect to the subject matter of this Agreement.
b. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and each party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement.
c. No agreement, statement, or promise not contained in this Agreement shall be valid or binding.

Section 23. MODIFICATIONS AND AMENDMENTS
This Agreement may be modified or amended only by a written instrument signed by both parties.

Section 24. ASSIGNMENT AND SUBCONTRACTING
a. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the written consent of the City. b. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written consent of the City. If the City consents to such subcontract, Consultant shall be fully responsible to the City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as required by law.

Section 25. WAIVER
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a. No waiver shall be binding, unless executed in writing by the party making the waiver.
b. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. c. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement.

Section 26. SEVERABILITY
If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.

Section 27. VENUE
All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in Riverside County, California.

Section 28. LITIGATION EXPENSES AND ATTORNEYS’ FEES
In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof.

Section 29. EXECUTION IN COUNTERPARTS
This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least a copy hereof shall have been signed by both parties hereto. Electronic and facsimile signatures shall be deemed the same as original signatures. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

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Section 30. PROHIBITED INTERESTS
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement.

For breach or violation of this warranty, the City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of the City, during the term of his or her service with the City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

Section 31. EQUAL OPPORTUNITY EMPLOYMENT
Consultant represents that it is an equal opportunity employer and shall not discriminate against any subcontractor, employee, or applicant (“person”) for employment because of race; denial of family and medical care leave; religious creed (including religious dress and grooming practices); color; national origin (including language use restrictions); ancestry; physical disability or mental disability (including HIV and Aids); medical condition (cancer and genetic characteristics); genetic information; military or veteran status; marital status; gender, gender identity, and gender expression; sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding); age or sexual orientation. Unless otherwise permitted under the law, Consultant shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.

Section 32. TIME OF THE ESSENCE
Time is of the essence in the performance of this Agreement.

Section 33. PRINCIPAL REPRESENTATIVES
a. Garry Sage shall be Consultant's Principal Representative and the person responsible for undertaking, managing and supervising the performance of all of the Services for this Agreement. Consultant's Principal Representative's experience, knowledge, capability and reputation were a substantial inducement for the City to enter into this Agreement, and as such, for the purposes of performing the Services, the duties of Consultant's Principal Representative shall not be reassigned, without the express written consent of both parties.

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b. The City Manager, or his/her designee, shall be the Principal Representative of the City for purposes of communicating with Consultant on any matter associated with the performance of the services set forth in this Agreement.

Section 34. NON-LIABILITY OF CITY’S OFFICERS AND EMPLOYEES No officer or employee of the City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Consultant or to its successor, or for any breach of any obligation of the terms of this Agreement.

Section 35. INTERPRETATION
This Agreement shall not be interpreted against either party on the grounds that one of the parties was solely responsible for preparing it or caused it to be prepared as both parties were involved in drafting it.

Section 36. PROTECTION AND CORRECTION OF WORK
a. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages.
b. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the City, when such inaccuracies are due to the fault of Consultant.

Section 37. CAPTIONS AND HEADINGS
The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 38. GOVERNING LAW
The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties under this Agreement, shall be construed pursuant to and in accordance with California law.

Section 39. CUMULATIVE REMEDIES
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise Item Number: 13.

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by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

Section 40. NO THIRD PARTY BENEFICIARIES
The parties do not intend the benefits of this Agreement to inure to any third party, nor shall any provision of this Agreement be so construed.

Section 41. OTHER GOVERNMENTAL REGULATIONS
To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

Section 42. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT
a. Each of the parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the parties hereto. b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent.

Section 43. SUCCESSORS AND ASSIGNS
The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties hereto.

Section 44. SURVIVAL
All obligations arising prior to any termination of this Agreement and all provisions of this Agreement allocating liability between the City and Consultant shall survive any such termination.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

CITY OF DESERT HOT SPRINGS
_____________________________
Doria Wilms, Interim City Manager
ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
_____________________________
________
_____________________________
Name, Title
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s
EXHIBIT “A”

SCOPE OF SERVICES

Known for its hot mineral water, many travelers and businesses sought Desert Hot Springs for its healing benefits and health and wellness opportunities for decades.

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- Healing waters
- Plant/ hemp-based spa therapies
(5) Recruit and invite the creative community to support and promote destination with
artfully curated programs and content for TikTok, Reels and social media posts. (6) Stand-out for wellness – Create useful and educational health and wellness content that foster positive storytelling for Desert Hot Springs as a destination “doing good”
for all.

The goal is always to stay one step ahead of the competition.

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tactics used, market information, flight/run dates, etc. We will also assess secondary research findings (as well as any research supplied by the client) to help determine brand advertising effectiveness, opportunities and needs. Extensive and ongoing research will also be supplied for potential new markets and consumers to effectively plan future strategies. Our research findings will help determine viable solutions and the best media vehicles for effectively and efficiently maximizing reach to the markets affiliated with your stakeholder partners, such as hotels, events, restaurants, and businesses.

JNS Next will:

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• Identify appropriate social media platforms (such as Facebook, Instagram, Tik Tok & LinkedIn) to reach the identified target audiences and social media tools/methods for the destination and businesses by posting content consistently. • Create a master strategy/approach document, including implementation tactics, specific social media techniques, brand voice/tone, goals and objectives discussion with leadership/staff, and evaluation of analytics for each platform. • Ensure consistent branding and key messaging on the social media accounts, such as profile images, header images and background images for platforms. • Utilize tactics for earning and maintaining followers on the identified social media platforms to spread awareness of the business and reach. Tactics for engaging the audience with posts and building awareness. • Create and utilize existing owned content for the client as part of a monthly retainer, including but not limited to text, graphics, images and videos. • Monitor and post on the social media sites as an administrator for the client, providing continuous recommendations and tips to staff, and area businesses/influencers for further implementation beyond support services. • Organize and manage all social media posts via management software • Monthly content calendars are planned the month before; we will research, collect assets and write the content to be approved by the client ahead of time, usually two weeks before the start of the next month. Upon approval, we will schedule all the posts for the month and monitor them for comments and engagement.
• TBD: Create an advertising program for social media sites including boosted, targeted posts to create engagement, and a larger audience, as well as retargeting and remarketing to drive traffic to the website. • Provide monthly reporting metrics to the client on successes and recommendations for enhancement and further engagement.

Item Number: 13.

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SR-23-143
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: June 20, 2023
Department: Public Works
Prepared by: Jilleen Ferris, City Engineer
Subject: Award Construction Contract for the Construction of the 8th Street Sidewalk Improvements, City Project No. 3014
RECOMMENDATION:

Award the construction contract agreement to the lowest responsive bidder, Jacobsson Engineering Construction, Inc. and authorize the City Manager to execute the agreement by and between Jacobsson Engineering Construction, Inc. and the City of Desert Hot Springs for the Construction of the 8th Street Sidewalk,City Project No. 3014 in the amount of $483,894.50, and approve a 10% contingency amount of $48,389.45, and as-needed material/equipment testing of $17,297.00, which brings the total project budget to $549,580.95.

BACKGROUND:

The City applied for grant funding from SB821 during fiscal year 21-22 and was awarded $340,000 for the construction of sidewalk and ADA improvements along 8th Street between Palm Drive and Wardman Park. The project was awarded based on competitive scoring and ranking.

This project was scored higher than other projects because the main objective was to provide a safe accessible connection from Wardman Park to the main arterial Palm Drive and all other accessible transportation modes such as bus stops, bike lanes, and ADA accessible sidewalks and pathways.

Plans were prepared for the project, and after the plans were approved, staff issued a Request for Proposal for the construction.

DISCUSSION:

On April 20, 2023, the Request for Bid Proposal (RFP) for the Construction of the 8th Street Sidewalk, City Project No. 3014 was released. The Notice Inviting Bids was posted on the City’s website and with Planit Reprographics, a local valley clearing house for public bid solicitations. The RFP was released for 32 days, and on May 22, 2023, the following Bids were received and opened:

Contractor Address Total Bid Amount
Universal Engineering and
Construction
77725 Enfield Lane, Ste 210
Palm Desert, CA 92210
$462,757.20
Jacobsson Engineering
Construction Inc.
72-310 Varner Road
Thousand Palms, CA 92276
$483,894.50
Item Number: 14.

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SR-23-143
Granite Construction 38000 Monroe Street
Indio, CA 92203
$551,000.00
Onyx Paving Company, Inc. 2890 E. La Cresta Avenue
Anaheim, CA 92806
$606,000.00
Staff reviewed the bids and verified all submittals. Although Universal Engineering and Construction was the lowest apparent bidder, it was determined that their bid was non-responsive due not having one of the required forms notarized. Staff determined the lowest responsible bidder to be Jacobsson Engineering Construction, Inc. with a total bid amount $483,894.50. Staff verified references that were submitted with their bid packet and found Jacobsson Engineering Construction, Inc. to meet the necessary qualifications.

FISCAL IMPACT:

This project will be funded through the following funding sources:

SB821 = $340,000
Measure A = $209,580.95
Total Project Budget = $549,580.95
Contract Amount = $483,894.50
Contingency 10% = $48,389.45
As-needed Material/Equipment Testing = $17,297.00
Total Project Budget = $549,580.95
ATTACHMENTS:
1) Project Plans
2) Bid Proposal - Jacobsson Engineering Constructioon, Inc. 3) Notice Inviting Sealed Bids
4) Bid Tabulation
5) Public Works Construction Agreement
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Item Number: 14.

CITY PROJECT NO. 3014
EIGHTHSTREET §!DEWALK IMPROVEMENTS
SCHEDULE OF PRICES {BIDPROPOSAL FORM)

TO THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS, CALIFORNIA The undersigned as bidder declares that he has carefully examined the location of the proposed work, that he has examined the Special Provisions and read the accompanying instructions to bidders, and hereby proposes and agrees, if the bid proposal is accepted, to furnish all materials and do all work required to complete the said work in accordance with the said Standard Specifications, Special Provisions, Technical Specifications, and Project Plans in the time and manner therein prescribed for the unit price set forth in the following schedule:

BP Page 3 of 19
No. Item Quantity Unit Unit Cost Extended
1 Mobilization 1 LS \ 3 “(-6.700
2 Traffic Control 1 LS QP)‘(DQa_
0O‘:?
(988.00
3 l:rr1J:li§\r/r‘:3e|rgtLa:’i[o(r:tOorftrSO\|/VPPP, BMPs, and 1 LS $ 35“'00 $ (})‘5\\‘O0 I 4 Construction Survey and Staking 1 LS ? .."(9L\7‘.°03)7‘ 5 E;%%’sZ2Sif§‘;‘3,:"lS:§§?$?,’e E"'S“”9 ‘ L5 $ wbio-00tacwvvo 6 Remove Tree 9 EA $1(D70.00 $
7 E‘§2‘s?¥f$Kl'§ll”8é”&“é?,l§me“‘S am‘ "278 L’: t 50-no $ to5.<loo. a> 8 532‘s?lfcFKl'§$l”Sé’8”é%¥SEeéfttild “2 LF t ‘M.00 starm.00 9 §§2‘s‘i¥,?ctEl‘»LS:‘é;”%iL’25l§lf”‘e“‘S am’ SF 91q .5o stvsxms 1 ,@:t,:=,“;,*:,:aN“;s,ig:::::y;::; oj in *° 6 EA at(moo st?>,9> 11 giC()jl;SL:J|EI Metal Hand Railing Along New 34 LF (ocl.o0 3 “R00 $ —5‘% 12 Construct Asphalt Concrete Dike 30 LF O&.O0 $ SA|n55'00 13 Remove Existing Improvements and 1,200 SF
Construct PCC Commercial Driveway SB ?t30'000.00
_Approach
Item Number: 14.

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CITY PROJECT NO. 3014
EIGHTH STREET §|DEWALK IMPROVEMENTS
No. Item Quantity Unit UnitCost Extended
14 Remove Existing Improvements and 1,384 SF
Construct PCC Residential Driveway $ 30-25 ?gfm),ORb.00 Approach
15 Remove Existing Asphalt Concrete Pavement 5,364 SF
and Base and Excavate for Proposed
Structural Section and Construct 5-inch Thick 3; $ loq.q(’a'D0 Asphalt Concrete over 7-inch Thick Aggregate
Base
16 Remove and Relocate Mailbox 4 EA EX | 3&0-00 $llm.o.oo 17 Construct Concrete Block Slou 9h Wall 113 LF stmoo $ n.74l.oo 18 Adjust Edison Pull Box to Grade 1 EA $ l‘.M)5.OO$1"M0300 Remove and Relocate Water Meter 2 EA ? '5.l3ll.Do$ (o.;zcoi>.oo 20 R dR| tBkf| P t’ 3 EA D:\r/rim;/e an eoca e ac ow reven ion 337)‘.??>.OO—J ? w?yl -00 21 Adjust Water Meter Box to Grade 2 EA _' $1l.l\7.o0 ill»2234.00 Ad'tWtVl JUS aer ave Cover tGd o ra e 4 EA $‘RM6_O0 Cg’5‘3? 23 Remove Existing Air Release Valve Complete 1 EA >D‘0O and Construct 2-inch Air Release Valve and E\&lO'Dl‘\-OO 3%: L0,Oiol-O0 Connect to Existing Water Lateral
24 Install Pavement Striping Lines, Pavement 1 LS
Legends, and Traffic Signs 93\‘0lq(95'DO$‘\6’.q
(05'DO
Fouf lxmdmland eyg Pmc lmwcs ?at/\‘i‘ \\»r~d/vo
$Lb NM56
TOTAL BN3 Chd (\\ll\Lt 90¢ Cl«;l\ov5ORA %3l '
(Words)
BP Page 4 of 19
Item Number: 14.

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NIB 1 of 4

CITY OF DESERT HOT SPRINGS

NOTICE INVITING SEALED BID PROPOSALS
for
CITY PROJECT NO. 3014

EIGHTH STREET SIDEWALK IMPROVEMENTS
RECEIPT OF BID PROPOSALS: Sealed bids will be received by the City of Desert Hot Spring Department of Public Works, for furnishing of all labor, material, tools, and equipment necessary for park improvements and the performance of other appurtenant works as more particularly described in the specifications under City Project No. 3014, Eighth Street Sidewalk Improvements, in the City of Desert Hot Springs.

The Sealed bids must be submitted on the Proposal Form at the Office of City Clerk, located at 11999 Palm Drive, Desert Hot Springs, CA 92240, before 2:00 p.m. on May 22, 2023. Public Works “Bid: Eighth Street Sidewalk Improvements, City Project No. 3014” shall appear on the envelope of each sealed bid proposal and each bid proposal sealed envelope shall be addressed to the City Clerk, City Hall, 11999 Palm Drive, Desert Hot Springs, Ca 92240. The bids will then will be publicly opened and read in the Office of the City Clerk, City Hall, 11999 Palm Drive, Desert Hot Springs, CA 92240 at 2:00 p.m. on May 22, 2023.

Each submitted bid proposal must be accompanied by a certified or cashier’s check, or a surety bond, payable to the City of Desert Hot Springs in the amount equivalent to at least 10% of the total aggregate bid price of such bid proposal, as a guaranty that the bidder, if its bid proposal be accepted, will enter into and execute the awarded contract, and furnish the required bonds in connection therewith, in accordance with the terms of the aforementioned Specifications.

No bid proposal will be accepted from a CONTRACTOR who has not been licensed in accordance with the provisions of the Business and Professions Code. The work requires a California Class “A” contractor's licenses.

The bids must be submitted on the proposal forms included in the bidder's package of the contract documents, and all bid documents must be original documents, no copies of bonds or signatures will be accepted.

TIME OF COMPLETION AND LIQUIDATED DAMAGES: BIDDER must agree to commence work on or before the date of the written “Notice to Proceed” (NTP) of the AGENCY and to fully complete the project in 30 working days. BIDDER must agree also to pay as liquidated damages, the sum of One Thousand Dollars ($1,000.00) for each working day thereafter as provided in these Specifications.

OBTAINING CONTRACT DOCUMENTS: Plans, Specifications, and Bid Package for the Eighth Street Sidewalk are ONLY available
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CITY PROJECT NO. 3014

EIGHTH STREET SIDEWALK IMPROVEMENTS
NIB 2 of 4
to be ordered online at; www.planitreprographics.com. For orders by phone, contact:

Planit Reprographics at (760) 345-2500.

Additional information regarding the purchase of contract Plans and Specifications may be obtained by telephoning (760) 329-6411 ext. 220.

The contract Specifications include by reference the “City of Desert Hot Springs Standard Specifications” (available online at www.cityofdhs.org); Mission Springs Water District (MSWD), “Developer / Contractor Handbook and Guidelines for Design and Construction of Water and Sewer Facilities,” Latest Manual; Southern California Edison, “Underground Structures Standard (USG),” Latest Manual; “Standard Specifications for Public Works Construction,” 2021 Edition, as published by Building News, Inc.; and “Standard Specifications for State of California, Department of Transportation,” Latest Edition. The MSWD, on-line version of the manual is available at MSWD Web site, the SCE “Underground Structures Standard (USG) Manual,” on-line version of the manual is available at SCE’s Standards & Publications Web site, “Standard Specifications for Public Works Construction,” 2015 Edition is available at Building News, Inc., 1612 South Clementine Street, Anaheim, CA 92802, Tel: (714) 517-0970, and “Standard Specifications for State of California, Department of Public Works,” may be obtained from:

State of California, Department of Transportation Publication Distribution Unit, 1900 Royal Oaks Drive, Sacramento, Ca 95815 (916)263-0822 or Publication Unit Web site:
http://caltrans-opac.ca.gov/publicat.htm.

ADDITIONAL BID INFORMATION AND REQUIREMENTS: Pre-bid inquiries should be directed to Ms. Jilleen Ferris, P.E., City Engineer at (760) 329-6411 X 220, or via email at [email protected]. Pre-Bid questions regarding Plans and Specifications shall be submitted to: John Gabor via email only at [email protected]. Include “Pre-bid Questions for Eighth Street Sidewalk Improvements, Project No. 3014” in the “Subject Line”. Pre-bid questions will not be accepted after 12 p.m. (noon) on May 4, 2023.

The successful CONTRACTOR and his subcontractors will be required to possess business licenses from the City of Desert Hot Springs.

The contract, if awarded, will be awarded to a responsible contractor with the lowest responsive bid; however, the City of Desert Hot Springs reserves the right to reject any and all bid proposals. The City reserves the right to find a Bid Proposal of a bidder who has been delinquent, is in current litigation with the City or has been within the preceding 12 months or was unfaithful in any former contract with the City nonresponsible. No BIDDER may withdraw his/her Bid Proposal for a period of sixty days after the date of the bid proposal opening.

A responsible contractor is one who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the contract. It is the City’s policy to conduct business only with responsible contractors.

The successful bidder will be required to fully comply with all applicable State and Federal reporting requirements relating to employment reporting for its employees and comply with all lawfully served Wage and Earnings Assignment Orders and Notice of Item Number: 14.

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CITY PROJECT NO. 3014

EIGHTH STREET SIDEWALK IMPROVEMENTS
NIB 3 of 4
Assignment and continue to maintain compliance throughout the duration of the contract.

Failure to comply may be cause for termination of the contract or initiation of debarment proceedings.

All persons performing the work shall be paid not less than the General Prevailing Wage Determination prepared by the Director of Industrial Relations pursuant to the State Labor Code. Copies of these wage rates are available at the Department of Public Works.

The successful bidder must provide full disclosure of False Claims Act violations, labor law/payroll violations, debarments, and civil/criminal legal actions as provided in the Instructions to Bidders. Failure to complete these forms may result in a determination that the bidder is nonresponsive and/or not responsible.

The successful bidder, hereinafter called “the CONTRACTOR” to whom this contract is awarded will be required, before execution of the contract by the City of Desert Hot Springs, hereinafter “the AGENCY,” to file with said AGENCY surety bonds as follows:

A “Faithful Performance Bond” amounting to 100% of the total contract price is required for all contracts.

A “Payment Bond” (labor and material) amounting to 100% of the total contract price is required for all contracts.

A “Certificate of Liability Insurance,” naming the City of Desert Hot Springs as an additional insured. See “Insurance and Bonds” paragraphs within the Special Instructions to Bidders Section.

A “Certificate of Worker’s Compensation Insurance”.

And a “Certificate of Commercial Vehicle Liability Insurance” (See “Insurance and Bonds” paragraphs within the Special Instructions to Bidders Section.

Surety bonds shall be subject to the condition that the surety thereon be approved by the AGENCY Attorney and AGENCY Council. Bonding forms are included in this document.

As provided for in Section 4590 of the California Government Code and in Section 22300 of the State Public Contract Code, the contractor may substitute securities for any monies withheld by the Agency to ensure performance under the contract, or enter into an escrow agreement for payment of such monies to an escrow agent.

Affirmative action to ensure against discrimination in employment practices on the basis of race, color, national origin, ancestry, sex, or religion will also be required. The City hereby affirmatively ensures that minority business enterprises will be afforded full opportunity to submit bids in response to this notice and will not be discriminated against on the basis of race, color, national origin, ancestry, sex, or religion in any consideration leading to the award of contract.

The City supports and encourages equal opportunity contracting.

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CITY PROJECT NO. 3014

EIGHTH STREET SIDEWALK IMPROVEMENTS
NIB 4 of 4

PROPOSED CONSTRUCTION SCHEDULE
The following schedule is to be required for the proposed project. The schedule may be extended by the City due to circumstances unforeseen at the time of advertisement.

May 4, 2023 Pre-Bid Questions at 12:00AM
May 22, 2023 Seal Bid Submitted by 2:00PM
June 6, 2023 Anticipated award of construction contract July 3, 2023 Contracts fully executed / Notice to proceed issued July 10, 2023 Pre-Construction meeting
August 28, 2023 Construction begins
October 2, 2023 Construction completed
April 20, 2023 CITY OF DESERT HOT SPRINGS

JERRYL SORIANO, CMC, CITY CLERK
City of Desert Hot Springs
11999 Palm Drive, Desert Hot Springs, California 92240
(760) 329-6411
PUB: April 20, 2023
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Quantity Unit
1 Mobilization 1 LS $ 19,000.00 19,000.00 $ 11,737.00 $ 11,737.00 $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 15,000.00 $ 2 Traffic control 1 LS $ 13,500.00 13,500.00 $ 13,622.00 $ 13,622.00 $ 7,000.50 $ 7,000.50 $ 31,241.00 $ 31,241.00 $ 3 Implmenetaiton of SWPPP, BMPs, and Fugitive Dust Control 1 LS $ 10,300.00 10,300.00 $ 8,511.00 $ 8,511.00 $ 6,000.00 $ 6,000.00 $ 5,000.00 $ 5,000.00 $ 4 Construction Surveying and Staking 1 LS $ 20,000.00 20,000.00 $ 7,647.00 $ 7,647.00 $ 14,000.00 $ 14,000.00 $ 13,000.00 $ 13,000.00 $ 5 Clear and Grub and Restore Existing Landscaping and Irrigation 1 LS $ 23,000.00 23,000.00 $ 39,810.00 $ 39,810.00 $ 42,915.00 $ 42,915.00 $ 20,000.00 $ 20,000.00 $ 6 Remove Tree 9 EA $ 7,650.00 850.00 $ 670.00 $ 6,030.00 $ 2,000.00 $ 18,000.00 $ 1,500.00 $ 13,500.00 $ 7 Removing Exsiting Improvments and Construct PCC Curb 1278 LF $ 42,174.00 33.00 $ 50.00 $ 63,900.00 $ 50.00 $ 63,900.00 $ 65.00 $ 83,070.00 $ 8 Removing Exsiting Improvments and Construct PCC Curb & Gutter 112 LF $ 6,720.00 60.00 $ 89.00 $ 9,968.00 $ 87.00 $ 9,744.00 $ 77.00 $ 8,624.00 $ 9 Removing Exsiting Improvments and Construct PCC Sidewalk 7723 SF $ 77,230.00 10.00 $ 9.50 $ 73,368.50 $ 12.50 $ 96,537.50 $ 9.00 $ 69,507.00 $ 10 Construct Cub Ramp (Only work in addition to constructing new sidewalk) 6 EA $ 39,000.00 6,500.00 $ 644.00 $ 3,864.00 $ 550.00 $ 3,300.00 $ 7,500.00 $ 45,000.00 $ 11 Construct Metal Hand Railing along new sidewalk 34 LF $ 10,200.00 300.00 $ 112.00 $ 3,808.00 $ 250.00 $ 8,500.00 $ 550.00 $ 18,700.00 $ 12 Construct Asphalt Concrete Dike 30 LF $ 1,500.00 50.00 $ 58.50 $ 1,755.00 $ 200.00 $ 6,000.00 $ 110.00 $ 3,300.00 $ 13 Remove Existing Improvements and Construct PCC Commercial Driveway Approach 1200 SF $ 18,540.00 15.45 $ 25.00 $ 30,000.00 $ 32.00 $ 38,400.00 $ 18.00 $ 21,600.00 $ 14 Remove Existing Improvements and Construct PCC ResidentialDriveway Approach 1384 SF $ 17,784.40 12.85 $ 20.25 $ 28,026.00 $ 22.00 $ 30,448.00 $ 15.00 $ 20,760.00 $ 15 Remove Asphalt Concrete Pavement and Base and Excavate for Proposed Structural Section and Construct 5‐inch Asphalt Concrete on 7‐inch Thick Aggregate Base 5364 SF $ 82,873.80 15.45 $ 20.50 $ 109,962.00 $ 20.00 $ 107,280.00 $ 7.00 $ 37,548.00 $ 16 Remove and Relocate Mailbox 4 EA $ 1,600.00 400.00 $ 320.00 $ 1,280.00 $ 260.00 $ 1,040.00 $ 500.00 $ 2,000.00 $ 17 Construct Concrete Block Slough Wall 113 LF $ 16,950.00 150.00 $ 157.00 $ 17,741.00 $ 240.00 $ 27,120.00 $ 550.00 $ 62,150.00 $ 18 Adjust Edison Pull Box to Grade 1 EA $ 1,000.00 1,000.00 $ 1,865.00 $ 1,865.00 $ 2,500.00 $ 2,500.00 $ 3,000.00 $ 3,000.00 $ 19 Remove and Relocate Water Meter 2 EA $ 7,800.00 3,900.00 $ 3,134.00 $ 6,268.00 $ 5,700.00 $ 11,400.00 $ 18,000.00 $ 36,000.00 $ 20 Remove and Relocate Backflow Prevention Device 3 EA $ 19,500.00 6,500.00 $ 3,378.00 $ 10,134.00 $ 5,300.00 $ 15,900.00 $ 19,000.00 $ 57,000.00 $ 21 Adjust Water Meter Box to Grade 2 EA $ 600.00 300.00 $ 1,117.00 $ 2,234.00 $ 165.00 $ 330.00 $ 500.00 $ 1,000.00 $ 22 Adjust Water Valve Cover to Grade 4 EA $ 1,800.00 450.00 $ 1,345.00 $ 5,380.00 $ 1,200.00 $ 4,800.00 $ 500.00 $ 2,000.00 $ 23 Remove Existin Air Release Valve Complete and Construct 2‐inch Air Release Valve and Connect to Existing Water Lateral 1 EA $ 9,035.00 9,035.00 $ 10,019.00 $ 10,019.00 $ 12,000.00 $ 12,000.00 $ 22,000.00 $ 22,000.00 $ 24 Install Pavement Striping Lines, Pavement Legends and Traffic Signs 1 LS $ 15,000.00 15,000.00 $ 16,965.00 $ 16,965.00 $ 13,885.00 $ 13,885.00 $ 15,000.00 $ 15,000.00 $ $ 483,894.50 462,757.20 $ 551,000.00 $ 606,000.00 $
non-responsive 462,757.20 $ $ 551,000.00 483,894.50 $ 606,000.00 $ Universal Construction and
Engineering
Jacobsson Engineering
Construction Inc. Granite Construction Onyx Paving Company Inc.

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Item Number: 14.

C-1
City Project: 3021 City of Desert Hot Springs

PUBLIC WORKS CONSTRUCTION AGREEMENT

BY AND BETWEEN

THE CITY OF DESERT HOT SPRINGS
AND
JACOBSSON ENGINEERING CONSTRUCTION, INC.

THIS PUBLIC WORKS CONSTRUCTION AGREEMENT (“Agreement”) is made and entered into this ____ day of ______________, 20___, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as "City," and Jacobsson Engineering Construction, Inc., a Corporation, hereinafter referred to as "Contractor."

RECITALS
WHEREAS, the City desires to retain Contractor, on an independent contractor basis, to perform street median extension and construction as more particularly described below; and
WHEREAS, Contractor represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND

RELEASES CONTAINED HEREIN, AND FOR OTHER GOOD AND VALUABLE

CONSIDERATION, RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES AGREE AS FOLLOWS:

AGREEMENT

1. Incorporation by Reference
The foregoing recitals are hereby expressly made a part of this Agreement as though fully set forth herein.

2. Project Information.
 Location: 8th Street between Palm Drive and Wardman Park as depicted in Contractor’s proposal dated May 22, 2023, and attached hereto and incorporated herein as Exhibit “A” (“Scope of Services” or sometimes “Project”). In the event any conflict exists between this Agreement minus the Scope of Services, on the one hand, and the Scope of Services, on the other hand, the former shall supersede.
 Project description, including significant materials to be used and equipment to be installed: construction of new curb, gutter and sidewalk, construction of new ADA ramps, and removal and replacement of asphalt concrete pavement and base, in the City of Desert Hot Springs, California, as set forth in the Scope of Services.  License classification applicable to Project: Class “A” General Engineering Contractor’s License; All electrical work shall be performed by a licensed C10 Contractor Item Number: 14.

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 Approximate start date: August 28, 2023
 Approximate completion date: October 2, 2023
 Substantial completion of work evidenced by: Inspection and approval by City Staff.
 It is expressly agreed that except for extensions of time duly granted by the City, in writing, time shall be of the essence.
 The parties agree that the specifications, standards, and procedures set forth in the 2015 Greenbook: Standard Specifications for Public Works Construction (“Greenbook”) shall govern the completion of the Project, and to such extent the Greenbook is incorporated herein by this reference; provided, however, in the event any conflict exists between this Agreement and the Greenbook, this Agreement shall supersede unless otherwise required by law.

3. Contractor Information
 Address: 72-310 Varner Road, Thousand Palms, CA 92276  License Number: 650389

4. Insurance Coverage
a. Contractor shall procure and maintain at its own expense, until expiration of the term of this Agreement as defined in Section 9, commercial general liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers and agents and independent contractors.

Contractor shall provide insurance on an occurrence, not claims-made basis. Contractor acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess insurance, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period. b. Contractor shall further procure and maintain at its own expense, until expiration of the term of this Agreement as defined in Section 9, commercial vehicle liability insurance covering personal injury and property damage, of not less than Two Million Dollars ($2,000,000) combined single limit per occurrence, and Two Million Dollars in the aggregate ($2,000,000), covering any vehicle utilized by Contractor or its officers, employees, servants, volunteers and agents and independent contractors in performing the services required by this Agreement.
c. Unless Contractor has no employees and is exempt from worker’s compensation requirements, Contractor shall further procure and maintain at its expense, until expiration of the term of this Agreement as defined in Section 9, workers' compensation insurance providing coverage as required by the California State Workers' Compensation Law. If any class of employees employed by the Contractor pursuant to Item Number: 14.

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this Agreement is not protected by the California State Workers' Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. Contractor agrees to waive its statutory immunity under any workers’ compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved in the Project to do the same.

Worker’s Compensation Insurance:
 Contractor has no employees and is exempt from workers’ compensation requirements.
 Contractor carries workers’ compensation insurance for all employees. d. All policies required by this section shall be secured from insurers authorized to do business in the State of California with an “A” policyholder’s rating or better and a financial rating of at least Class VII, in accordance with the current Best’s Ratings.
e. Contractor agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Contractor enters into contracts or whom Contractor hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and name as additional insureds the parties to this Agreement. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section.
f. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated. g. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the Project, Contractor shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City, and/or their officers, employees, servants, volunteers, agents and independent contractors.

5. Insurance Documentation
a. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Contractor shall ensure that the most current certification of insurance shall be delivered to and retained by the City at all times until expiration of the term of this Agreement as defined in Section 9.
b. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the comprehensive general Item Number: 14.

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liability and commercial vehicle liability policies shall bear endorsements whereby it is provided that the City, and its officers, employees, servants, volunteers, agents and independent contractors are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages.
c. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City, and their officers, employees, servants, volunteers, agents and independent contractors.
d. Each policy required herein must be endorsed to provide that the policy shall not be cancelled or non-renewed by either party, or reduced in coverage or limits (except by paid claims) unless the insurer has provided the City with at least thirty (30) days prior written notice of said cancellation, non-renewal, or reduction, with the exception that only ten (10) days prior written notice shall be required in the event of cancellation for nonpayment of premium.
e. All insurance policies required to be provided by Contractor or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and their officers, employees, servants, volunteers, agents and independent contractors.

6. Security
a. Contractor shall, concurrently with the execution hereof and to the extent not already completed, furnish a payment bond at no expense to the City, in substantially the same form as that attached hereto and made part hereof as Exhibit “B,” in an amount equal to Four Hundred Eighty-Three Thousand Eight Hundred Ninety-Four dollars and Fifty Cents ($483,894.50), as security of the payment of all persons performing labor and furnishing materials in connection with this Agreement. To be acceptable, the surety company must be authorized to do business and have an agent for service of process in California, be on the accredited list of the United States Treasury Department, and have an "A" policyholder's rating and a financial rating of Class V, or better, in accordance with the current Best's Rating.
b. Contractor shall, concurrently with the execution hereof and to the extent not already completed, furnish a performance bond at no expense to the City, in substantially the same form as that attached hereto and made part hereof as Exhibit “C,” or deposit an amount with the City equal to Four Hundred Eighty-Three Thousand Eight Hundred Ninety-Four dollars and Fifty Cents ($483,894.50), as security for the faithful performance of this Agreement. To be acceptable, the surety company must be authorized to do business and have an agent for service of process in California, be on the accredited list of the United States Treasury Department, and have an "A" policyholder's rating and a financial rating of Class V, or better, in accordance with the current Best's Rating.
c. The surety on any and all bonds and the form thereof shall be satisfactory to the City Attorney.
d. The payment bond shall remain in force and shall not be released until at least seven (7) months after the date of recordation of the Notice of Completion or Notice of Acceptance, whichever occurs first. The performance bond shall remain in force until at least (1) Item Number: 14.

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year after the date of final acceptance of the Project, unless the City determines, in its sole and absolute discretion, to release the Performance Bond earlier and notifies Contractor of the same in writing.

7. Compensation; Payments
a. Contractor shall be paid compensation not to exceed Four Hundred EightyThree Thousand Eight Hundred Ninety-Four dollars and Fifty Cents ($483,894.50) for the services rendered by Contractor pursuant to this Agreement, including profit, labor and materials, in accordance with the Scope of Services.
b. Contractor shall invoice the City for the performance of the services under this Agreement in the amount agreed upon by the parties herein. Subject to the retention provisions below, Contractor shall be paid the amount specified in the invoice within 30 days of receipt by the City, provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement.
c. Pursuant to Public Contract Code section 9203, the City shall retain no less than five percent of the compensation to be paid to Contractor which shall be released to the Contractor no later than sixty (60) days from the date of the City's acceptance of the work pursuant to this Agreement.

8. Extra Work and Change Orders
Extra work and change orders shall become a part of this Agreement once the extra work or change order is approved in writing and signed by the City and Contractor, prior to the commencement of any extra work or change in work covered by the change order. The City’s form change order shall be used for both extra work and a change in work. The change order must describe the scope of the extra work or change in work, and the cost to be added or subtracted from this Agreement. The City shall not require Contractor to perform any extra work or a change in work without written authorization.

A change order shall not be enforceable against the City unless the change order complies with this provision.

9. Term
Contractor will perform the services set forth in the Scope of Services and in any approved change orders pursuant to section 1 of this Agreement, the term of which shall commence as of June 20, 2023, and shall expire one (1) year following the City's acceptance of the Project pursuant to this Agreement, or upon release of the Performance Bond in accordance with Section 6.d. of this Agreement, whichever occurs first.

10. Independent Contractor
Contractor shall at all times during the term of this Agreement perform the services described in this Agreement as an independent contractor, and hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors.

11. Civil Code Section 1542 Waiver
Item Number: 14.

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a. Contractor expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” b. This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees’ Retirement System (CalPERS) that are only afforded to employees and not independent contractors. Contractor further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
_____
Initials

12. Acceptance of Work
Acceptance of the Project shall be by action of the City Council or its designee.

Neither the acceptance nor prior inspections or failure to inspect shall constitute a waiver by the City of any defects in the Project. From and after acceptance, the Project shall be owned and operated by the City. As a condition to acceptance, Contractor shall certify to the City in writing that all of the Project performance has been performed in strict conformity with this Agreement and that all costs have been paid, satisfactory to the City, guaranteeing such performance.

13. Warranty
a. In addition to Contractor's other obligations under this Agreement, Contractor warrants all work and materials to be of good quality and fit for the purpose and intended use for a duration that shall continue until expiration of the term of this Agreement as described in Section 9, or the longest period permitted by law, whichever is later. If any defects in materials or workmanship become evident prior to expiration of the warranty granted in this Section, the Contractor shall, at its own expense, make any repair(s) or replacement(s) necessary to restore the work to full compliance with the this Agreement. Contractor shall also repair, replace and restore any other work which is displaced in correcting defective work as well as other portions of the work which the City by reason of such defects reasonably suspects may also be defective. In the event of a failure to commence with the compliance of above-mentioned conditions within seven (7) calendar days after being notified in writing or failure to diligently pursue such compliance to completion, the City is hereby authorized to proceed to have the defects repaired and made good at the expense of Contractor who hereby agrees to pay the cost and charges therefor immediately on demand.
b. If, in the opinion of the City, nonconforming work creates a dangerous condition or requires immediate correction or repair to prevent further loss to the City or to prevent interruption of operations, the City shall attempt to give the Contractor notice.

If Contractor cannot be contacted or does not comply with the City’s request for correction Item Number: 14.

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within a reasonable time as determined by the City, the City may proceed to make such correction or provide such repair. The costs of such correction or repair shall be charged against Contractor, who agrees to make payment for said costs upon demand. Corrective action by the City will not relieve Contractor or Contractor's sureties or insurers of the guarantees and indemnities of this Agreement.
c. This section does not in any way limit the City’s remedies available under the law, or the guarantee or warranty on any items for which a longer guarantee is specified or on any items for which a manufacturer or supplier gives a longer guarantee or warranty period. Contractor agrees to act as a co-guarantor with such manufacturer or supplier and shall furnish the City all appropriate guarantees or warranty certificates upon completion of the Project. No manufacturer's guarantee period shall in any way limit the liability of Contractor or Contractor's sureties and insurers under the indemnity or insurance provisions of this Agreement.

14. Indemnification
a. Contractor shall defend, indemnify and hold harmless the City, their officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therewith) arising out of the performance of this Agreement, except for any such claim arising out of the sole or active negligence or willful misconduct of the City, or their officers, agents, employees or volunteers. b. If Contractor should subcontract all or any portion of the work to be performed under this Agreement, Contractor shall require each subcontractor to indemnify, hold harmless and defend the City and each of its officers, officials, employees, agents and volunteers to the same extent as Contractor is required in the preceding paragraph.
c. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. d. Notwithstanding the foregoing provisions of this section, Contractor shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Contractor’s work promptly, or by reason of delay or faulty performance by the City, construction contractors, or governmental agencies, or by reason of any other delays beyond Contractor’s control, or for which Contractor is without fault.
e. This section shall survive termination or expiration of this Agreement.

15. Default
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party Item Number: 14.

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commences to cure, correct or remedy the alleged default within fifteen days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. b. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein. c. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may remain uncured for more than fifteen days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the injured party shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings.

16. Licenses, Certifications and Permits
Contractor represents that it has obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement.

17. Labor Laws, Prevailing Wages
a. All work or services performed within the State of California pursuant to this Agreement by Contractor, Contractor’s employees and independent contractors, or Contractor’s subcontractors and its subcontractors’ employees and independent contractors shall be performed by individuals lawfully permitted to perform such work or services in the State of California and/or the United States of America pursuant to all applicable State and/or Federal labor laws, rules and regulations including, but not limited to, any State or Federal law, rule or regulation prohibiting the employment of undocumented workers or any other person not lawfully permitted to perform said work or services in the State of California or the United States of America. b. Contractor represents that it is an equal opportunity employer and shall not discriminate against any subcontractor, employee, or applicant (“person”) for employment because of race, denial of family and medical care leave, religious creed (including religious dress and grooming practices), color; national origin (including language use restrictions), ancestry, physical disability or mental disability (including HIV and Aids), medical condition (cancer and genetic characteristics), genetic information, military or veteran status, marital status, gender, gender identity, gender expression, sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), age or sexual orientation. Unless otherwise permitted under the law, Contractor shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.

Item Number: 14.

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c. City and Contractor acknowledge that the Project is a public work to which prevailing wages apply. Contractor and all subcontractors pursuant to this agreement shall comply with the Davis-Bacon Fair Labor Standards Act, 23 USC 113. Contractor agrees to not pay less than the higher wage rate between the minimum wage rates determined by the Director of California Department of Industrial Relations and the Federal Wage General Decision, Number: CA20220025, attached hereto in Exhibit “D” and incorporated herein by this reference.

Contractor and all of Contractor’s subcontractors, if any, shall pay each employee engaged in all applicable trades or occupation not less than the prevailing hourly wage rate for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work. In accordance with the provisions of Section 1770 of the California Labor Code (“Labor Code”), the Director of Department of Industrial Relations of the State of California has determined the general prevailing rates of wages and employer payments for health and welfare, pension, vacation, travel time, and subsistence pay as provided for in Labor Code Section 1773.8, apprenticeship or other training programs authorized by Labor Code Section 3093 and similar purposes applicable to the work to be done. Said wages are available through the California Department of Industrial Relations’ Internet website at http://www.dir.ca.gov/dlsr/PWD/index.htm and are on file at City Hall, as provided in Section 1773.2 of the Labor Code. Said rates shall be posted at the Project site where work is to be performed, in accordance with Labor Code Section 1773.2. Contractor shall access a copy of the wage rate determination and shall make all subcontractors, if any, aware of the determination. As the wage determination for each craft reflects an expiration date, it shall be the Contractor’s responsibility to ensure that the prevailing wage rates of concern are current and paid. Subject to the safe harbor provisions of Labor Code Section 1775, Contractor shall forfeit to the City an amount not to exceed two hundred dollars ($200) for each calendar day or portion thereof, as set by the Labor Commissioner in accordance with the terms of Labor Code section 1775, for each laborer, workmen or mechanics employed that is paid less than the general prevailing rate of wages herein referred to and stipulated for any work done under the proposed contract, by him, or by any subcontractor under him, in violation of the provisions of the Labor Code, and in particular, Sections 1770 to 1781 inclusive. Contractor and any and all or its subcontractors shall forfeit to the City twenty-five dollars ($25) for each worker employed in the performance of this Agreement for each calendar day during which the worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Section 1813 of the Labor Code. In the event the total cost of the Project is thirty thousand dollars ($30,000.00) or more, Contractor shall further comply with provisions set forth in Labor Code Section 1777.5 pertaining to employment of properly registered apprentices, including without limitation the obligation to (i) pay employed apprentices the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of craft or trade to which he or she is registered; (ii) employ apprentices in at least the ratio as set forth in said section; (iii) submit contract award information to an applicable apprenticeship program; and (iv) contribute to California Apprenticeship Council.
d. Contractor and all subcontractors hired to perform any work under the Item Number: 14.

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Project shall keep accurate payroll records, including the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each worker, in accordance with Section 1776 of the Labor Code. Payroll records shall be on forms provided by the Division of Labor Standards Enforcement (“DLSE”) or in a manner containing the same information as the forms provided by the DLSE. Failure to comply with the above may result in monetary penalties to the Contractor or affected subcontractor. Payroll records shall be verified by written declaration made under penalty of perjury, that the information contained in the records is true and correct. Contractor and any and all subcontractors shall make a certified copy of all payroll records available for inspection by DLSE, the City or any member of the public and otherwise provide certified copies of such records to any of the foregoing within ten (10) days of Contractor’s and subcontractor’s receipt of written request therefor. Failure to comply with the above may result in monetary penalties, in accordance with Labor Code Section 1776(d) and (h).
e. Notwithstanding anything else to the contrary, Contractor hereby acknowledges that all contractors and subcontractors must be registered with the Department of Industrial Relations (“Department”) pursuant to Labor Code Section 1725.5 in order to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract, including this Agreement, that is subject to the payment of prevailing wages. The Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. In accordance with Section 3700 of the Labor Code, Contractor must secure payment of compensation to all Contractor’s employees.

Contractor represents and warrants that Contractor is registered with the Department in the manner prescribed by the Department and has paid the requisite application fee, as required by Labor Code Section 1725.5. Moreover, prior to Contractor entering into any contracts with any subcontractor, Contractor shall obtain proof that all such subcontractors have also registered with the Department in accordance with Section 1725.5.

18. Required Contract Provisions for Federal Aid Construction Contracts (FHWA-1273)
This Contract is funded with Federal-Aid Highway funds subject to provisions under Title 23 of the United States Code (23 USC). As such the Contractor agrees to the following provisions titled, “Required Contract Provisions for Federal Aid Construction Contracts”, excluding Attachment A – Employment and Material Preference for Appalachian Development Highway System or Appalachian Local Access Road Contracts. The Contractor agrees to insert these provisions, unaltered, into each subcontract and further require their inclusion in all lower tier subcontracts excluding purchase orders, rental agreements, and other agreements for supplies or services.

Complete form 1273 is attached hereto as Exhibit “D” and incorporated herein by this reference.

Item Number: 14.

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19. Notices
a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the parties as follows:

To the City: Public Works Director
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
To Contractor: NAME AND TITLE
Jacobsson Engineering Construction, Inc.
72-310 Varner Road
Thousand Palms, CA 92276
Telephone: (760) 345-8700
b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

20. General Conditions
a. Severability. If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.
b. Governing Law. The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties under this Agreement, shall be construed pursuant to and in accordance with California law. c. Cumulative Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other party. d. Venue. All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in Riverside County, California. e. Litigation Expenses and Attorneys Fees. In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its Item Number: 14.

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costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. f. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original.
g. Entire Agreement. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and supersedes any and all other agreements, either oral or written, between the City and Contractor. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement. No agreement, statement, or promise not contained in this Agreement shall be valid or binding. h. Conflicts of Interest. Contractor covenants that it does not have any interest, nor shall it acquire an interest, directly or indirectly, which would conflict in any manner with the performance of Contractor’s services under this Agreement. In the event the City officially determines that Contractor must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Contractor shall file the subject Form 700 with City Hall, as specified under the Notice provisions of this Agreement, pursuant to the written instructions provided by the City.
i. Termination. This Agreement may be terminated by the City immediately for cause. The City may terminate this Agreement without cause upon thirty (30) days’ written notice of termination. Upon termination, Contractor shall be entitled to compensation for services performed up to the effective date of termination. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 14.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

CITY OF DESERT HOT SPRINGS

_______________________________
Doria Wilms, Interim City Manager

ATTEST:

_______________________________
Jerryl Soriano, CMC, City Clerk

APPROVED AS TO FORM:

_______________________________
Jennifer A. Mizrahi, City Attorney
_____________________________

_____________________________
By Its: _______________________

Item Number: 14.

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EXHIBIT “A”

SCOPE OF SERVICES

SEE ATTACHED PROPOSAL
DATED MAY 22, 2023
Item Number: 14.

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EXHIBIT “B”

PAYMENT BOND
We, , as Principal, and _____________________, as Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors and assigns, as set forth herein, to the City of Desert Hot Springs (“CITY”) and those for whose benefit this bond insures in the sum of ___________________________ U.S. Dollars and No Cents ($_________). CITY and Principal have entered into an agreement, or are about to enter into the agreement attached hereto and incorporated by reference, for the construction of improvements for the property referenced in said agreement. Surety herein approves of the terms and conditions of said agreement and binds itself to faithfully perform the obligations of Principal therein if Principal fails to so perform. Surety acknowledges that the agreement herein referenced shall be that document as executed by CITY and Principal. If Principal or any of Principal's contractors or subcontractors, fails to pay any of the persons named in Section 9000 et seq. of the California Civil Code employed in the performance of the agreement for materials furnished or for labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, then Surety shall pay the same in an amount not exceeding the sum specified above, and also shall pay, in case suit is brought upon this bond, such reasonable attorneys' fees as shall be fixed by the court.

Surety agrees that it shall pay the amounts due the persons above named and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement.

If Surety fails to perform within the times specified in the agreement, Surety shall promptly on demand deposit with CITY such amount as CITY may reasonably estimate as the cost of completing all of Principal's obligations. Surety's obligation for payment herein shall extend, notwithstanding any controversy between Principal and CITY regarding Principal's failure under the agreement. Principal and Surety agree that any payment by Surety pursuant to this paragraph should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligation herein and shall be deemed proper payment as between Principal and Surety.

This bond shall insure to the benefit of any and all of the persons named in Section 9000 et seq. of the California Civil Code so as to give a right of action to them or their assigns in any suit brought upon this bond.

Surety agrees that no change, extension of time, alteration, or addition to the terms of the agreement, or the work to be performed thereunder, or the plans and specifications, or any matters unknown to Surety which might affect Surety's risk, shall in any way affect its obligation on this bond, and it does hereby waive notice thereof.

Principal and Surety agree that should CITY become a party to any action on this bond, that each will also pay CITY'S reasonable attorneys' fees incurred therein in addition to the above sums.

Item Number: 14.

Page 594 of 1000 ends

C-16
City Project: 3021 City of Desert Hot Springs
Executed this _____________ day of __________________, 20___.

Seal of Corporation By______________________________
Authorized Representative of Principal
Title_____________________________
(ATTACH ACKNOWLEDGEMENT) By______________________________ Authorized Representative of Principal
Title_____________________________
Any claims under this bond may be addressed to: (check one) Surety's agent for service
of process in California: ( ) _____________________________ Surety Company
_________________________ _____________________________ Name Street Number
_________________________ _____________________________ Street Number City and State
_________________________ _____________________________ City and State Telephone Number
_________________________ _____________________________ Telephone Number
By_____________________________
Attorney in Fact or other
Representative
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVE)
( ) _____________________________
Company Agent
______________________________
Street Number
APPROVED AS TO FORM: ______________________________
City and State
________________________ ______________________________ City Attorney
Furnish the name, address and phone number of the company agent as well as the surety company.

Sureties must be authorized to do business in and have an agent for service of process in California and be on the accredited list of the United States Treasury Department (their bonds will be limited to such amounts as would be acceptable to the Treasury Department), and otherwise meet the requirements of the agreement.

Item Number: 14.

Page 595 of 1000 ends

C-17
City Project: 3021 City of Desert Hot Springs
EXHIBIT “C”

PERFORMANCE BOND
We, , as
Principal, and , as
Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors and assigns, as set forth herein, to the City of Desert Hot Springs (“CITY”) for payment of the penal sum of _________________________________ U.S. Dollars and No Cents ($________). CITY and Principal have entered into an agreement, or are about to enter into the agreement attached hereto and incorporated by reference, for the construction of improvements for the property referenced in said agreement. Surety herein approves of the terms and conditions of said agreement and binds itself to faithfully perform the obligations of Principal therein if Principal fails to so perform. Surety acknowledges that the agreement herein referenced shall be that document as executed by CITY and Principal.

THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal shall in all things stand to and abide by, and well and truly keep and perform all of the covenants, conditions, and provisions in said agreement, and any alteration thereof made as therein provided, on Principal's part to be kept and performed at the time and in the manner therein specified, and shall indemnify and save harmless the CITY, CITY’S engineer, and their consultants, and each of their officials, directors, officers, employees and agents, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

Surety agrees that should it fail to take over and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement, Surety will promptly on demand deposit with CITY such amount as CITY may reasonably estimate as the cost of completing all of Principal's obligations. Surety's obligation for payment herein shall exist, notwithstanding any controversy between Principal and CITY regarding Principal's failure under the agreement, and payment by Surety should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligations herein and shall be deemed proper payment as between Principal and Surety.

Surety agrees that no change, extension of time, alteration, or addition to the terms of the agreement, or the work to be performed thereunder or the plans and specifications, or any matters unknown to Surety which may affect Surety's risk shall in any wise affect its obligation on this bond, and it does thereby waive notice thereof.

Principal and Surety agree that if the CITY is required to engage the services of an attorney in connection with the enforcement of this bond, each shall pay CITY'S reasonable attorneys' fees incurred, with or without suit, in addition to the above sum.

Item Number: 14.

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C-18
City Project: 3021 City of Desert Hot Springs
Executed this day of , 20___.

Seal of Corporation
By____________________________________
Authorized Representative of Principal
Title__________________________________
By____________________________________
Authorized Representative of Principal
Title__________________________________
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVES)
Any claims under this bond may be addressed to: (check one) Surety's agent for service
of process in California: ( )____________________________________ Surety Company
_________________________ ____________________________________ Name Street Number
_________________________ ____________________________________ Street Number City and State
_________________________ ____________________________________ City and State Telephone Number
_________________________ ____________________________________ Telephone Number
By____________________________________
Attorney in Fact or other
Representative
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVE)
()____________________________________
Company Agent
____________________________________
Street Number
APPROVED AS TO FORM: ____________________________________ City and State
________________________ ____________________________________ City Attorney Telephone
Furnish the name, address and phone number of the company agent as well as the surety company.

Item Number: 14.

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C-19
City Project: 3021 City of Desert Hot Springs

AFFIDAVIT FOR CO-PARTNERSHIP FIRM

STATE OF CALIFORNIA )
)ss
COUNTY OF ____________ )
__________________________________________________________, being first duly sworn, deposes and says:

That he is a member of the co-partnership firm designated as ______________________________________________________________________________ which is the party making the foregoing bid proposal; that such bid proposal is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any other bidder or person to put in a sham bid proposal or that such other person shall refrain from bidding; and has not in any manner sought by collusion to secure any advantage against the City of Desert Hot Springs or any person interested in the proposed contract, for himself or for any other person.

That he has been and is duly vested with authority to make and sign instruments for the copartnership by ______________________________________________________________________________ ______________________________________________________________________________ who constitute the other members of the co-partnership. ______________________________
Signature
Subscribed and sworn (affirmed)
to before me this
_________________day of _________________________, 20____ ________________________________________________
Signature of Officer Administering Oath
(NOTARY PUBLIC)
Item Number: 14.

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C-20
City Project: 3021 City of Desert Hot Springs

AFFIDAVIT FOR CORPORATION BIDDER

STATE OF CALIFORNIA )
)ss
COUNTY OF ___________ )
__________________________________________________________, being first duly sworn, deposes and says:

That he is _______________________________________________________________of, ______________________________________________________________________________ a corporation which is the party making the foregoing bid proposal; that such bid proposal is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any other bidder or person to put in a sham bid proposal or that such other person shall refrain from bidding; and has not in any manner sought by collusion to secure any advantage against the City of Desert Hot Springs or any person interested in the proposed contract, for himself or for any other person. ______________________________
Signature
Subscribed and sworn (affirmed)
to before me this
_________________day of _________________________, 20___ _______________________________________
Signature of Officer Administering Oath
(NOTARY PUBLIC)
Item Number: 14.

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C-21
City Project: 3021 City of Desert Hot Springs

AFFIDAVIT FOR INDIVIDUAL BIDDER

STATE OF CALIFORNIA )
)ss
COUNTY OF ___________ )
__________________________________________________________, being first duly sworn, deposes and says:

That he is the party making the foregoing bid proposal; that such bid proposal is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any other bidder or person to put in a sham bid proposal or that such other person shall refrain from bidding; and has not in any manner sought by collusion to secure any advantage against the City of Desert Hot Springs or any person interested in the proposed contract, for himself or for any other person.
______________________________
Signature
Subscribed and sworn (affirmed)
to before me this
_________________day of _________________________, 20___ _________________________________________
Signature of Officer Administering Oath
(NOTARY PUBLIC)
Item Number: 14.

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C-22
City Project: 3021 City of Desert Hot Springs

AFFIDAVIT FOR JOINT VENTURE

STATE OF CALIFORNIA )
)ss
COUNTY OF ___________ )
_____________________________________________________, being first duly sworn, deposes and says:

That he is ________________________________________________of, ________________________________________________________________, one of the parties submitting the foregoing bid proposal as a joint venture and that he has been and is duly vested with the authority to make and sign instruments for and on behalf of the parties making said bid proposal who are:
______________________________________________________________________________ ______________________________________________________________________________ _____________________________________________________________________________; that such bid proposal is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any other bidder or person to put in a sham bid proposal or that such other person shall refrain from bidding; and has not in any manner sought by collusion to secure any advantage against the City of Desert Hot Springs or any person interested in the proposed contract, for himself or for any other person. ______________________________
Signature
Subscribed and sworn
to before me this
_________________day of _________________________ , 20___ _______________________________________
Signature of Officer Administering Oath
(NOTARY PUBLIC)
Item Number: 14.

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SR-23-147
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: June 20, 2023
Department: Public Works
Prepared by: Nicholas Haecker, Public Works Director
Subject: Award Maintenance Contracts for Zone 1 and Zone 3 Landscape Maintenance Districts and Drainage Assessment Districts RECOMMENDATION:

Authorize the City Manager to Award the Landscape Maintenance and Operations Services Contract for Zone 1 - Desert View and Zone 3 - Midtown, to the most qualified bidder Desert Concepts Construction, Inc.; and authorize the City Manager to execute an agreement between Desert Concepts Construction, Inc. and the City of Desert Hot Springs in the amount not to exceed $50,400.60 for Zone 1 and an amount not to exceed $226,156.80 for Zone 3, for landscaping and lighting, drainage and community facilities districts and other site maintenance.

BACKGROUND:

The City has 29 Landscape Maintenance Districts (LMD) and Drainage Assessment Districts (DAD) for various communities Citywide. Each LMD and DAD is maintained by the City, and funded by each corresponding community. In addition to the LMD's and DAD's, the City also maintains all city facilities, parks, and all street medians.

To create a more efficient and productive landscape maintenance program Citywide, Staff grouped the multiple Landscape Maintenance Districts (LMD) and Drainage Assessment Districts (DAD) into the following four (4) zones:

Zone 1 - Desert View
Zone 2 - West Desert Hot Springs
Zone 3 - Midtown
Zone 4 - East Desert Hot Springs
Geographical locations of the LMDs and DADs determined what districts went to which zones. The development of zones is to encourage new bidders to have a more focused scope of work, and competitive workmanship.

DISCUSSION:

On April 10, 2023, Staff issued a Request for Bid Proposals (RFP) for Landscape Maintenance and Operations services for each of the four zones. The Notice Inviting Bids was posted on the City’s website and with Planit Reprographics, a local valley clearing house for public bid solicitations.

Item Number: 15.

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SR-23-147
On April 25, 2023, Staff held a pre-bid meeting where Staff gave expectations of the RFP, the scope of work, and reviewed in detail the selection process and scoring. All questions from the bidders in attendance were answered.

On May 9, 2023, proposals from three bidders were received for each of the four (4) Zones. Staff reviewed and scored each proposal based on the following scoring criteria:
• Contractor’s understanding and expectations of the RFP (20 points). • Contract’s prior experience (20 points).
o Deliverables: Submit references, past projects, past contracts, etc. • Contractor’s onsite staff qualifications (20 points). o Deliverables: Submit staff qualifications, resumes, etc. • Provide a complete staff work schedule (20 points).
o Deliverables: Submit staff schedule per location.
• Responsible cost to fulfill the RFP expectations (20 points).

All scores were tabulated, and the highest scoring and most qualified proposal was selected. After the most qualified bidder was selected, Staff reviewed and compared the total cost of services, and the results were as follows:

ZONE 1 - DESERT VIEW

RANKING BIDDER
1 Desert Concepts Construction, Inc.
2 Mariposa Landscapes, Inc.
3 Universal Green, LLC
ZONE 3 - MIDTOWN

RANKING BIDDER
1 Desert Concepts Construction, Inc.
2 Mariposa Landscape, Inc.
3 Universal Green, LLC
After Staff’s review, the most qualified bidder for Zone 1 and Zone 3 was determined to be Desert Concepts Construction, Inc. Staff then reviewed and compared the total costs and found Desert Concepts Construction, Inc.’s costs to be competitive when compared to the others. Staff verified the references submitted by Desert Concepts Construction, Inc. and all references that responded had positive comments.

Staff is recommending that the City Council award the Landscape Maintenance and Operation Services Contract for Zone 1 - Desert View and Zone 3 - Midtown, to the most qualified bidder, Desert Concept Item Number: 15.

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SR-23-147
Construction, Inc. and authorize the City Manager to execute an agreement between Desert Concepts Construction, Inc. and the City of Desert Hot Springs in an amount not to exceed $50,400 for Zone 1 and an amount not to exceed $226,156.80 for Zone 3, for landscaping, lighting, drainage and community facilities districts and other site maintenance.

The term of the contract shall commence on July 1, 2023 and continue for a term of three (3) years.

The City reserves the option to extend the contract administratively under the same terms and conditions for a maximum of two (2) additional one-year terms at current price levels.

FISCAL IMPACT:

There is enough funding budgeted in each of the Landscape Maintenance Districts and Drainage Assessment Districts for the Fiscal Year 2023-2024 to cover the landscaping costs as proposed in the following funds - Zone 1: 503, 504, 506, 510, 553, 554, 555, 559 and Zone 3: 211 and 501.

ATTACHMENTS:
1) Notice Inviting Bids - Zone 1 Desert View Desert Hot Springs - Landscape Maintenance and Operations
2) Notice Inviting Bids - Zone 3 Midtown Desert Hot Springs - Landscape Maintenance and Operations
3) Pre-Bid Meeting Sign In Sheet
4) Scope of Work - Zone 1
5) Zone 1 Proposal - Desert Concepts
6) Service Provider Agreement - Zone 1 Desert View Desert Hot Springs - Landscape Maintenance and Operations
7) Scope of Work - Zone 3
8) Zone 3 Proposal - Desert Concepts
9) Service Provider Agreement- Zone 3 Midtown Desert Hot Springs - Landscape Maintenance and Operations
Item Number: 15.

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CITY OF DESERT HOT SPRINGS

NOTICE INVITING SEALED BID PROPOSALS
FOR
ZONE 1 DESERT VIEW LANDSCAPE MAINTENANCE AND OPERATION FOR LANDSCAPING

AND LIGHTING, DRAINAGE AND COMMUNITY FACILITIES DISTRICTS AND OTHER SITE

MAINTENANCE
PROJECT #2024-006

IN THE CITY OF DESERT HOT SPRINGS
RECEIPT OF BID PROPOSALS: Sealed bid proposals will be received at the Office of the City Clerk, City Hall, 11999 Palm Drive, Desert Hot Springs, CA 92240, until 2:00 p.m. on Tuesday, May 9, 2023 for the furnishing of all labor and materials and equipment for the subject project.

Public Works Bid: “ZONE 1 DESERT VIEW LANDSCAPE MAINTENANCEE FOR LANDSCAPING

AND LIGHTING, DRAINAGE AND COMMUNITY FACILITIES DISTRICTS AND OTHER SITE MAINTENANCE in the City of Desert Hot Springs to be opened at 2:00 p.m. on Tuesday, May 9, 2023” shall appear on the envelope of each sealed bid proposal and each sealed envelope shall be addressed to the City Clerk, City Hall, 11999 Palm Drive, Desert Hot Springs, CA 92240.

Time Schedule:

The following is the City’s tentative schedule for the selection of a Respondent to provide the LANDSCAPE MAINTENANCE AND OPERATION Services.

1. Request for Bid Proposal Dated: April 10, 2023

2. Pre-Bid Meeting: April 25, 2023 from 10:00 a.m. to 12:00 p.m.

3. Deadline for filing RFP: May 9, 2023 by 2:00 p.m.

4. City Council Awards Contract: June 6, 2023

5. Estimate Start Date: July 1, 2023
The bid proposals will be due in the Office of the City Clerk, City Hall, 11999 Palm Drive, Desert Hot Springs, CA 92240 on Tuesday, May 9, 2023 by 2:00 p.m.

TERM: The term of this Agreement shall be for the period when the Service Provider Agreement is executed and expires at the end of the business day on June 30, 2026. The City reserves the option to extend the contract administratively under the same terms and conditions for a maximum of two (2) additional one-year terms unless either party shall give written notice to the other party of its intention not to renew, by no later than sixty (60) days prior to the expiration of the Agreement term or any extended term.

OBTAINING CONTRACT DOCUMENTS: Specifications for the ZONE 1 DESERT VIEW

LANDSAPE MAINTENANCE AND OPERATIONS FOR LANDSCAPING AND LIGHTING, Item Number: 15.

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DRAINAGE AND COMMUNITY FACILITIES DISTRICTS AND OTHER SITE MAINTENANCE Project #2024-006 are available to be ordered online at www.planitprintworks.com or by phone at 760-343-3134.

Specifications and contract documents will NOT BE AVAILABLE at City Hall or on the City’s website. Contact Planit Reprographics as indicated above. Questions regarding the plans or specifications should be referred to the Department of Public Works at 760-329- 6411 Extension 225.

The Contractor, hereinafter “the CONTRACTOR”, to whom this contract is awarded will be required, before execution of the contract by the City of Desert Hot Springs, hereinafter “the AGENCY”, to file with said AGENCY a Faithful Performance and Payment bond each for 100% of the total contract price and Insurance Certificates as outlined in the Draft. Service Provider Agreement included with the proposal requirements.

Surety bonds shall be subject to the condition that the surety thereon be approved by the AGENCY Attorney and AGENCY Council. Bonding forms are included in this document.

Each submitted bid proposal must be accompanied by a certified or cashier’s check, or a surety bond, payable to the City of Desert Hot Springs in the among equivalent to at least 10% of the total aggregate bid price of such bid proposal, as a guaranty that the respondent, if its bid proposal be accepted, will enter into and execute the awarded contract, and furnish the required bonds in connection therewith, in accordance with the terms of the aforementioned Draft. Service Provider Agreement.

Affirmative action to ensure against discrimination in employment practices based on race, color, national origin, ancestry, sex, or religion will also be required. The City hereby affirmatively ensures that minority business enterprises will be afforded full opportunity to submit bids in response to this notice and will not be discriminated against based on race, color, national origin, ancestry, sex, or religion in any consideration leading to the award of the contract.

Pursuant to Section 1773 of the Labor Code, the general prevailing wage rates in the county, or counties, in which the work is to be done have been determined by the Director of the California Department of Industrial Relations. These wages are set forth in the General Prevailing Wage Rates for this project, available at City of Desert Hot Springs, 11999 Palm Drive, Desert Hot Springs, CA 92240 and available from the California Department of Industrial Relations’ Internet web site at http://www.dir.ca.gov.

A pre-bid meeting is scheduled with the Public Works Department located at 11999 Palm Drive, Desert Hot Springs, CA 92240 on Tuesday, April 25, 2023 from 10:00 a.m. to 12:00 p.m.

The successful CONTRACTOR and its subcontractors will be required to possess State Contractor licenses and business licenses from the City of Desert Hot Springs.

Item Number: 15.

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As provided for in Section 4590 of the California Government Code, the CONTRACTOR may substitute securities for any monies withheld by the AGENCY to ensure performance under the contract.

The City of Desert Hot Springs reserved the right to reject all bid proposals. The City reserves the right to find a Bid Proposal of a bidder who has been delinquent, is in current litigation with the City or has been within the preceding 12 months or was unfaithful in any former contract with the City non-responsible. No RESPONDENT may withdraw the Bid Proposal for a period of sixty days after the date of the bid proposal opening.

PUBLISHED April 10, 2023 JERRYL SORIANO, CITY CLERK
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
760-329-6411
Item Number: 15.

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CITY OF DESERT HOT SPRINGS

NOTICE INVITING SEALED BID PROPOSALS
FOR
ZONE 3 MIDTOWN DESERT HOT SPRINGS LANDSCAPE MAINTENANCE AND OPERATION FOR

LANDSCAPING AND LIGHTING, DRAINAGE AND COMMUNITY FACILITIES DISTRICTS AND

OTHER SITE MAINTENANCE
PROJECT #2024-008

Public Works Bid: “ZONE 3 MIDTOWN DESERT HOT SPRINGS LANDSCAPE MAINTENANCEE

FOR LANDSCAPING AND LIGHTING, DRAINAGE AND COMMUNITY FACILITIES DISTRICTS AND OTHER SITE MAINTENANCE in the City of Desert Hot Springs to be opened at 2:00 PM on Tuesday, May 9, 2023 shall appear on the envelope of each sealed bid proposal and each sealed envelope shall be addressed to the City Clerk, City Hall, 11999 Palm Drive, Desert Hot Springs, CA 92240.

Time Schedule:

The following is the City’s tentative schedule for the selection of a Respondent to provide the LANDSCAPE MAINTENANCE AND OPERATION Services.

1. Request for Bid Proposal Dated: April 10, 2023

2. Pre-Bid Meeting: April 25, 2023 from 10:00 a.m. to 12:00 p.m.

3. Deadline for filing RFP: May 9, 2023 by 2:00 p.m.

4. City Council Awards Contract: June 6, 2023

5. Estimate Start Date: July 1, 2023
The bid proposals will be due in the Office of the City Clerk, City Hall, 11999 Palm Drive, Desert Hot Springs, CA 92240 on Tuesday, May 9, 2023 by 2:00 p.m.

OBTAINING CONTRACT DOCUMENTS: Specifications for the ZONE 3 MIDTOWN DESERT HOT

SPRINGS LANDSAPE MAINTENANCE AND OPERATIONS FOR LANDSCAPING AND LIGHTING, Item Number: 15.

Page 609 of 1000 ends

DRAINAGE AND COMMUNITY FACILITIES DISTRICTS AND OTHER SITE MAINTENANCE Project #2024-008 are available to be ordered online at www.planitprintworks.com or by phone at 760-343-3134.

Surety bonds shall be subject to the condition that the surety thereon be approved by the AGENCY Attorney and AGENCY Council. Bonding forms are included in this document.

A pre-bid meeting is scheduled with the Public Works Department located at 11999 Palm Drive, Desert Hot Springs, CA 92240 on Tuesday, April 25, 2023 from 10:00 a.m. to 12;00 p.m.

The successful CONTRACTOR and its subcontractors will be required to possess State Contractor licenses and business licenses from the City of Desert Hot Springs.

Item Number: 15.

Page 610 of 1000 ends

As provided for in Section 4590 of the California Government Code, the CONTRACTOR may substitute securities for any monies withheld by the AGENCY to ensure performance under the contract.

PUBLISHED April 10, 2023 JERRYL SORIANO, CITY CLERK
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
760-329-6411
Item Number: 15.

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Item Number: 15.

LANDSCAPEMAINTENANCEANDOPERATIONFORLANDSCAPINGANDLIGHTING.

DRAINAGEANDCOMMUNITYFACILITIESDISTRICTSANDOTHERSITEMAINTENANCE

SCOPE OF WORK
Scope of work and frequency is identified in EXIBIT4 but focused on; weed removal, chemical weed control, plant replacement, fertilization, hedge pruning/trimming, tree pruning/trimming, irrigation maintenance, irrigation repair, irrigation system testing, trash/debrispick-up, clearing walk ways of debris and emergency response to maintain the quality of the City's existing landscaping and standards and specs as more particularly described in the Special Provisionsattached hereto.

LOCATIONOF WORK
ZONE#1 DESERTVIEW

1. Desert View 1 LMD.Westside of West Dr. between Desert View Ave. to Flora Ave..

Eastside of Cholla Dr. between Desert View Ave. and Flora Ave. Approximately 1,200 lineal ft.

Desert View 28.3 LMD. Westside of Mountain View Rd. starting about 125 ft. north of Whitney Ct. and ending about 300 ft. south of Ava Ct. Southside of Nicole Ct. along the block wall to basin. Approximately 1,600 lineal ft.

Desert View 2&3 DAD. The drainage basin islocated off Nicole Ct. and runs along the block wall of Ava Ct. Approximately 11,810 sq. ft.

Desert View 4 LMD. Northside of Hacienda Ave between Cholla Dr. and Via Loreto.

Southside of Flora Ave between Cholla Dr. and Via Loreto. Approximately 1,200 lineal ft.

Desert View 4 DAD. The drainage basin islocated off Hacienda Ave. and Cholla Dr.

Approximately 10,800 sq. ft.

Foxdale Estates DAD. North/Eastand North/WestCorner of Pierson Blvd. at Pomelo Dr. Approximately 35,250 sq. ft. and 560 lineal ft.

Eagle Point LMD. Westside of Golden Eagle Way from Pierson Blvd. to 5"" St.

Approximately 20,000 lineal ft.

Eagle Point DAD. North/West corner of Pierson Blvd. and Golden Eagle Way.

Approximately 64,500 sq. ft.

The visual location of each area of this zone is attached as EXHIBIT3.

I4
Item Number: 15.

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17 BIDDER'S PROPOSAL

EXHIBIT A
To the Honorable Mayor and City Council of the Desert Hot Springs:

In compliance with the Notice Inviting Sealed Bids, the undersigned hereby agrees to enter into a contract and furnish all labor, materials, equipment and supplies for LANDSCAPE

MAINTENANCE AND OPERATION FOR LANDSCAPING AND LIGHTING, DRAINAGE AND COMMUNITY FACILITIES DISTRICTS AND OTHER SITE MAINTENANCE in accordance with the specifications in the contract documents which are on file in the office of the Contract Administrator of the City of Desert Hot Springs to the satisfaction and under direction of the Contract Administrator at the following prices:

Zone #1 Desert View
Item No. Description Monthly Annual
1 Desert View 1 LMD $850.00 $10,200.00
2 Desert View 2 & 3 LMD $350.00 $4,200.00
3 Desert View 2 & 3 DAD $350.00 $4,200.00
4 Desert View 4 LMD $350.00 $4,200.00
5 Desert View 4 DAD $350.00 $4,200.00
6 Foxdale Estates DAD $950.00 $11,400.00
7 Eagle Point LMD $792.00 $9,504.00
8 Eagle Point DAD $208.00 $2,496.00
TOTALS $4,200.00 $50,400.60
☒ We claim the Local Business Preference program of the City of Desert Hot Springs and have included a current Business License from a jurisdiction in the Coachella Valley.
☐ We do not claim the Local Business Preference program for this project.

Bidder’s Proposal respectfully submitted:

Name Desert Concepts Constructions, Inc.

Address 79775 Ave 40
City, State, Zip Code Indio, CA 92203
Telephone 760-200-9007
Item Number: 15.

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SERVICE PROVIDER AGREEMENT

BY AND BETWEEN

THE CITY OF DESERT HOT SPRINGS
AND
DESERT CONCEPTS CONSTRUCTION, INC.

THIS SERVICE PROVIDER AGREEMENT (hereinafter, “the Agreement”) is made and entered into this 20TH day of June, 2023 by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City”, and Desert Concepts Construction, Inc. a California corporation, hereinafter referred to as “Service Provider”.

RECITALS:

WHEREAS, the City desires to enter into an agreement for services related to the work and frequency identified but focused on; mowing, edging, weed removal, chemical weed control, plant replacement, fertilization, hedge pruning/trimming, tree pruning/trimming, irrigation maintenance, irrigation repair, irrigation system testing, trash/debris pick-up, clearing walkways of debris and emergency response to maintain the quality of the City’s existing landscaping and standards and specs as more particularly described in the Special Provisions hereinafter referred to as “Services”; and WHEREAS, the City desires to retain the services of a qualified service provider to provide the Services on an independent contractor’s basis.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE

CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth in full herein.

Section 2. SCOPE OF SERVICES, EXTRA WORK
a. Service Provider shall perform the Services specifically described in the Scope of Services, attached hereto and incorporated herein by this reference as Exhibit “A.” In the event any conflict exists between this Agreement minus the Scope of Services, on the one hand, and the Scope of Services, on the other hand, the former shall supersede.
b. At any time during the term of this Agreement, the City may request that Service Provider perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of Item Number: 15.

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this Agreement. Service Provider shall not perform, nor be compensated for, Extra Work without written authorization from the City.

Section 3. TERM
Service Provider shall perform those services set forth in the Scope of Services during the term of this Agreement, which shall be effective as of July 1, 2023 and expire June 30, 2026. The City reserves the option to extend the contract administratively under the same terms and conditions for a maximum of two (2) additional one-year terms unless either party shall give written notice to the other party of its intention not to renew, by no later than sixty (60) days prior to the expiration of the Agreement term or any extended term.

Section 4. COMPENSATION
Service Provider shall be paid compensation not to exceed Fifty Thousand Four Hundred Dollars and Sixty Cents ($50,400.60) for the services rendered by Service Provider pursuant to this Agreement.

Section 5. METHOD OF PAYMENT
a. Service Provider shall invoice the City, not more often than once a month, for the performance of the services under this Agreement in the amount agreed upon by the parties herein.
b. Service Provider shall be paid the amount specified in the invoice within thirty (30) days of receipt by the City, provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement.

Section 6. INDEPENDENT CONTRACTOR’S STATUS
Service Provider shall at all times during the term of this Agreement perform the services described in this Agreement as an independent contractor, and hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors.

Section 7. CIVIL CODE SECTION 1542 WAIVER
Service Provider expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:

“A general release does not extend to claims which the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”

Item Number: 15.

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This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees’ Retirement System (CalPERS) that are only afforded to employees and not independent contractors. Service Provider further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.

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Initials
Section 8. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR’S STATUS OF

SERVICE PROVIDER
a. Service Provider represents and acknowledges the following:
(1) The City is not required to provide any training or legal counsel to Service Provider or its employees in order for Service Provider to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the City. (3) The services described in this Agreement can be performed without the use of City equipment, materials, tools or facilities. (4) Nothing in this Agreement shall be interpreted to imply that the City must maintain any contractual relationship with Service Provider on a continuing basis after termination of this Agreement.
(5) The City will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by Service Provider to perform the services described in this Agreement. (6) Service Provider shall not at any time or in any manner represent that it or any of its officers, employees, or agents are "employees" of the City. b. The City represents and acknowledges the following:
(1) Service Provider is not required to comply with daily instructions from City staff with respect to when, where or how Service Provider must perform the services set forth in this Agreement.

Item Number: 15.

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(2) Service Provider is solely responsible for determining who, under the supervision or direction of Service Provider, will perform the services set forth in this Agreement.
(3) The City will not hire, supervise or pay any assistants working for Service Provider pursuant to this Agreement.
(4) Nothing in this Agreement shall be interpreted to imply that Service Provider must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.
(5) The Service Provider is not required to devote full time to the business operations of the City in order to perform the services set forth in this Agreement. (6) Nothing in this Agreement shall be interpreted to preclude Service Provider from working for other persons or firms, provided that such work does not create a conflict of interest.
(7) Service Provider is not required to perform the services set forth in this Agreement in any particular order or sequence.
(8) It is the sole responsibility of Service Provider to set the hours in which Service Provider performs or plans to perform the services set forth in this Agreement.

Section 9. NOT AGENT OF THE CITY
a. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Service Provider or by any third person to create the relationship of principal and agent.
b. Service Provider shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent, nor shall the Service Provider have any authority, express or implied, to bind the City to any obligation whatsoever.

Section 10. WARRANTY
Service Provider warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services.

Section 11. FAMILIARITY WITH WORK
a. By executing this Agreement, Service Provider warrants that (1) it has thoroughly investigated and considered the work to be performed, (2) it has investigated the issues, regarding the scope of services to be provided, (3) it has carefully considered how the work should be performed, and (4) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement.

Item Number: 15.

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b. Should Service Provider discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the City, it shall immediately inform the City of such fact and shall not proceed except at Service Provider's risk until written instructions are received from the City Manager or its designee.

Section 12. EQUAL OPPORTUNITY EMPLOYMENT
Service Provider represents that it is an equal opportunity employer and shall not discriminate against any subcontractor, employee, or applicant (“person”) for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age or sexual orientation. Unless otherwise permitted under the law, Service Provider shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.

Section 13. CONFLICTS OF INTEREST
Service Provider covenants that it does not have any interest, nor shall it acquire an interest, directly or indirectly, which would conflict in any manner with the performance of Service Provider’s services under this Agreement. In the event the City officially determines that Service Provider must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Service Provider shall file the subject Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk.

Section 14. COMPLIANCE WITH LAWS; LICENSING AND PERMIT

REQUIREMENTS
a. Service Provider shall comply with all local, state and federal laws and regulations applicable to the services required hereunder, including any rule, regulation or bylaw governing the conduct or performance of Service Provider and/or its employees, officers, or board members.
b. Service Provider represents that it has obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

Section 15. INSURANCE REQUIREMENTS
a. Service Provider shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence, combined single limit coverage for bodily injury, personal injury and property damage associated with work contemplated in this Agreement. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general Item Number: 15.

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aggregate limit shall be at least twice the required occurrence limit. Service Provider shall provide insurance on an occurrence, not claims-made basis. Service Provider acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof.
b. Service Provider shall maintain automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Service Provider arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Service Provider shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Service Provider were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof. c. Service Provider agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Service Provider enters contracts or whom Service Provider hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and name as additional insureds the parties to this Agreement. Service Provider agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. d. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Service Provider agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated.
e. Service Provider agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the Services, Service Provider shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City or its officers, employees, servants, volunteers, agents and independent contractors.

Section 16. WORKERS' COMPENSATION INSURANCE
Item Number: 15.

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a. Service Provider shall procure and maintain at its own expense, during the term of this Agreement, workers' compensation insurance, providing coverage as required by the California State Workers' Compensation Law. b. If any class of employees employed by the Service Provider pursuant to this Agreement is not protected by the California State Workers' Compensation Law, Service Provider shall provide adequate insurance for the protection of such employees to the satisfaction of the City. Service Provider agrees to waive its statutory immunity under any worker’s compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved with the Services to do the same.

Section 17. ADDITIONAL NAMED INSURED
Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers' Compensation, shall bear an endorsement whereby it is provided that, the City and its officers, employees, servants, volunteers and agents and independent contractors, including without limitation, the City Manager and City Attorney, are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages.

Section 18. WAIVER OF SUBROGATION RIGHTS
Service Provider shall require the carriers of all required insurance policies to waive all rights of subrogation against the City and its officers, volunteers, employees, contractors and subcontractors.

Section 19. INSURANCE DOCUMENTATION
a. Service Provider shall secure from a good and responsible company or companies authorized to do insurance business in the State of California and possessing a Best’s rating of no less than A:VII, the policies of insurance required by this Agreement and furnish to the City certificates of said insurance with original endorsements on or before the commencement of the term of this Agreement. Current certification of insurance shall be kept on file with the City at all times during this Agreement. b. Each policy required herein must be endorsed to provide that the policy shall not be cancelled or reduced in coverage by either party (except by paid claims) unless the insurer has provided the City with thirty (30) days prior written notice of cancellation or reduction in coverage.
c. All insurance policies required to be provided by Service Provider or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, Item Number: 15.

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maintained or available to the City, and its officers, employees, servants, volunteers, agents and independent contractors.

Section 20. TERMINATION OR SUSPENSION
a. This Agreement may be terminated or suspended without cause by either party at any time provided that the respective party provides the other party at least thirty (30) business days written notice of such termination or suspension. b. In the event of a termination of this Agreement under this section, Service Provider shall provide all documents, reports, data or other work product developed in performance of the Scope of Services of this Agreement to the City, within ten (10) calendar days of such termination and without additional charge to the City.

Section 21. TIME OF THE ESSENCE
Time is of the essence in the performance of this Agreement.

Section 22. INDEMNIFICATION
a. Service Provider shall defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect, (including any and all costs and expenses in connection wherein), arising out of the performance of this Agreement, except for any such claim arising out of the sole negligence or willful misconduct of the City, its officers, agents, employees or volunteers. b. The City does not, and shall not, waive any rights that it may have against Service Provider under this section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement.

The hold harmless, indemnification and duty to defend provisions of this section shall apply regardless of whether said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. Notwithstanding the provisions of subsections a. and b. of this section, Service Provider shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Service Provider’s work promptly, or by reason of delay or faulty performance by the City, construction contractors, or governmental agencies, or by reason of any other delays beyond Service Provider’s control, or for which Service Provider is without fault.

Section 23. BOOKS AND RECORDS
a. Service Provider shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to the City Item Number: 15.

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for a minimum period of three years, or for any longer period required by law, from the date of final payment to Service Provider pursuant to this Agreement. b. Service Provider shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement.
c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at the Service Provider’s address indicated for receipt of notices in this Agreement. d. Where the City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Service Provider’s business, the City may, by written request of any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained at City Hall. Access to such records and documents shall be granted to any party authorized by Service Provider, Service Provider’s representatives, at Service Provider’s successor-in-interest.

Section 24. OWNERSHIP OF DOCUMENTS
All plans, studies, documents and other writings prepared by and for Service Provider, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Service Provider for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Service Provider or to any other party. Service Provider shall, at its expense, provide such reports, plans, studies, documents and other writings to the City upon written request.

Section 25. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Service Provider in connection with the performance of this Agreement shall be held confidential by Service Provider. Such materials shall not, without prior written consent of the City, be used by Service Provider for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Service Provider which is otherwise known to Service Provider or is generally known, or has become known, to the related industry shall be deemed confidential.

Item Number: 15.

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b. Service Provider shall not use the City’s insignia or photographs relating to the project for which Service Provider’s services are rendered, or any publicity pertaining to the Service Provider’s services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

Section 26. MODIFICATIONS AND AMENDMENTS
This Agreement may be modified or amended only by a written instrument signed by both parties.

Section 27. BACKGROUND CHECKS
At any time during the term of this Agreement, the City reserves the right to make an independent investigation into the background of Service Provider’s personnel who perform work required in the Scope of Services, including but not limited to their references, character, address history, past employment, education, social security number validation, and criminal or police records, for the purpose of confirming that such personnel are lawfully employed, qualified to provide the subject service or pose a risk to the safety of persons or property in and around the vicinity of where the Services will be rendered or City Hall. If the City makes a reasonable determination that any of Service Provider’s prospective or then current personnel is deemed objectionable, then the City may notify Service Provider of the same. Service Provider shall not use that personnel to perform work required in the Scope of Services, and if necessary, shall replace worker with a suitable worker.

Section 28. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Service Provider with respect to the subject matter of this Agreement.
b. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and each party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement.
c. No agreement, statement, or promise not contained in this Agreement shall be valid or binding.

Section 29. AMBIGUITIES
This Agreement is in all respects intended by each party hereto to be deemed and construed to have been jointly prepared by the parties and the parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against either of them. Except as expressly limited by this paragraph, all of the applicable Item Number: 15.

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rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Agreement.

Section 30. NOTICES
a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the parties as follows:

To the City: Nicholas Haecker
Public Works Director
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: 760-329-6411 x223
Facsimile: 760-288-0639
Email: [email protected]
To Service Provider: Julio Castro
President/Treasurer
Desert Concepts Construction, Inc.
79-775 Ave 40
Indio, CA 92203
Telephone: 760-200-9007
Facsimile: 760-200-9014
Email: [email protected]

b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 31. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES No officer or employee of the City shall be personally liable to Service Provider, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Service Provider or to its successor, or for any breach of any obligation of the terms of this Agreement.

Section 32. REVIEW BY ATTORNEYS
Each party hereto has had its attorneys review this Agreement and all related documents. Each party hereto has consulted with its attorneys and has negotiated the terms of this Agreement based on such consultation.

Section 33. WAIVER
Item Number: 15.

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Section 34. ASSIGNMENT AND SUBCONTRACTING
a. The experience, knowledge, capability and reputation of Service Provider, its principals and employees were a substantial inducement for the City to enter into this Agreement. Assignments of any or all rights, duties or obligations of the Service Provider under this Agreement will be permitted only with the written consent of the City. b. Service Provider shall not subcontract any portion of the work to be performed under this Agreement without the written consent of the City. If the City consents to such subcontract, the Service Provider shall be fully responsible to the City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as required by law.

Section 35. CARE OF WORK
The performance of services by Service Provider shall not relieve Service Provider from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the City, when such inaccuracies are due to the negligence of Service Provider.

Section 36. CAPTIONS AND HEADINGS
The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 37. SUCCESSORS, HEIRS AND ASSIGNS
Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the parties to this Agreement and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the parties.

Section 38. SEVERABILITY
Item Number: 15.

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If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.

Section 39. GOVERNING LAW
The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties under this Agreement, shall be construed pursuant to and in accordance with California law.

Section 40. DEFAULT
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen (15) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder.
b. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein. c. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may remain uncured for more than fifteen (15) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the injured party shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings.

Section 41. CUMULATIVE REMEDIES
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other party.

Section 42. VENUE
Item Number: 15.

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All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in Riverside County, California.

Section 43. LITIGATION EXPENSES AND ATTORNEY'S FEES
In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof.

Section 44. EFFECTIVENESS OF AGREEMENT
This Agreement shall not be binding upon the City, until signed by the authorized representative(s) of Service Provider, and approved as to form by the City Attorney, and executed by the City Manager or its designee.

Section 45. NO THIRD PARTY BENEFICIARIES
The parties do not intend the benefits of this Agreement to inure to any third party, nor shall any provision of this Agreement be so construed.

Section 46. LABOR LAWS, PREVAILING WAGES
a. All work or services performed within the State of California pursuant to this Agreement by Service Provider, Service Provider’s employees and independent contractors, or contractor’s subcontractors and its subcontractors’ employees and independent contractors shall be performed by individuals lawfully permitted to perform such work or services in the State of California and/or the United States of America pursuant to all applicable State and/or Federal labor laws, rules and regulations including, but not limited to, any State or Federal law, rule or regulation prohibiting the employment of undocumented workers or any other person not lawfully permitted to perform said work or services in the State of California or the United States of America. b. Documentation must be promptly submitted to the City at any time, at the request of the City, for the purpose of determining whether or not the work or services provided pursuant to this contract are being provided in compliance with this section. c. Contractor and all of Contractor’s subcontractors, if any, shall pay each employee engaged in all applicable trades or occupation not less than the prevailing hourly wage rate for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday Item Number: 15.

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and overtime work. In accordance with the provisions of Section 1770 of the California Labor Code (“Labor Code”), the Director of Department of Industrial Relations of the State of California has determined the general prevailing rates of wages and employer payments for health and welfare, pension, vacation, travel time, and subsistence pay as provided for in Labor Code Section 1773.8, apprenticeship or other training programs authorized by Labor Code Section 3093 and similar purposes applicable to the work to be done. Said wages are available through the California Department of Industrial Relations’ Internet website at http://www.dir.ca.gov/dlsr/PWD/index.htm and are on file at City Hall, as provided in Section 1773.2 of the Labor Code. Said rates shall be posted at the Project site where work is to be performed, in accordance with Labor Code Section 1773.2. Contractor shall access a copy of the wage rate determination and shall make all subcontractors, if any, aware of the determination. As the wage determination for each craft reflects an expiration date, it shall be the Contractor’s responsibility to ensure that the prevailing wage rates of concern are current and paid. Subject to the safe harbor provisions of Labor Code Section 1775, Contractor shall forfeit to the City an amount not to exceed two hundred dollars ($200) for each calendar day or portion thereof, as set by the Labor Commissioner in accordance with the terms of Labor Code section 1775, for each laborer, workmen or mechanics employed that is paid less than the general prevailing rate of wages herein referred to and stipulated for any work done under the proposed contract, by him, or by any subcontractor under him, in violation of the provisions of the Labor Code, and in particular, Sections 1770 to 1781 inclusive.

Contractor and any and all or its subcontractors shall forfeit to the City twenty-five dollars ($25) for each worker employed in the performance of this Agreement for each calendar day during which the worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Section 1813 of the Labor Code.
d. Contractor and all subcontractors hired to perform any work under the Project shall keep accurate payroll records, including the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each worker, in accordance with Section 1776 of the Labor Code. Payroll records shall be on forms provided by the Division of Labor Standards Enforcement (“DLSE”) or in a manner containing the same information as the forms provided by the DLSE. Failure to comply with the above may result in monetary penalties to the Contractor or affected subcontractor. Payroll records shall be verified by written declaration made under penalty of perjury, that the information contained in the records is true and correct. Contractor and any and all subcontractors shall make a certified copy of all payroll records available for inspection by DLSE, the City or any member of the public and otherwise provide certified copies of such records to any of the foregoing within ten (10) days of Contractor’s and subcontractor’s receipt of written request therefor. Failure to comply with the above may result in monetary penalties, in accordance with Labor Code Section 1776(d) and (h). e. Notwithstanding anything else to the contrary, Contractor hereby acknowledges that all contractors must be registered with the Department of Industrial Relations (“Department”) pursuant to Labor Code Section 1725.5 in order to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract, Item Number: 15.

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including this Agreement, that is subject to the payment of prevailing wages. Contractor represents and warrants that Contractor is registered with the Department in the manner prescribed by the Department and has paid the requisite application fee, as required by Labor Code Section 1725.5. Moreover, prior to Contractor entering into any contracts with any subcontractor, Contractor shall obtain proof that all such subcontractors have also registered with the Department in accordance with Section 1725.5.

Section 47. REPRESENTATIONS OF PARTIES AND PERSONS

Section 48. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an original.

Item Number: 15.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

CITY OF DESERT HOT SPRINGS

________________________________
Doria Wilms
Interim City Manager

ATTEST:

________________________________
Jerryl Soriano
City Clerk

APPROVED AS TO FORM:

________________________________
Jennifer Mizrahi
City Attorney
DESERT CONCEPTS CONSTRUCTION, INC.

____________________________________
Julio Castro,
President/Treasurer
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EXHIBIT A
(PROPOSAL WILL BE PLACED HERE WHEN CONTRACT WILL BE SIGNED) Item Number: 15.

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LANDSCAPEMAINTENANCEANDOPERATIONFORLANDSCAPINGAND LIGHTING,

DRAINAGEAND COMMUNITYFACILITIESDISTRICTSANDOTHERSITEMAINTENANCE

SCOPE OF WORK
Scope of work and frequency is identified in EXIBIT4 but focused on; weed removal, chemical weed control, plant replacement, fertilization, ytedge pruning/trimming, tree pruning/trimming, irrigation maintenance, irrigation repair, irrigation system testing, trash/debris pick-up, clearing walk ways of debris, mowing and mechanical edging and emergency response to maintain the quality of the City's existing landscaping and standards and specs as more particularly described in the Special Provisions attached hereto.

LOCATIONOF WORK
ZONE#3 MIDTOWNDESERTHOTSPRINGS

1. City Wide Medians LMD.
k.

On Palm Dr. north of Paul. Approximately 390 lineal feet.

On Palm Dr. and 8'“ Street. Approximately 560 lineal feet.

On Palm Dr. north of Camino Aventura. Approximately 300 lineal feet.

On Palm Dr. starting 830 feet south of Two Bunch Palms Trail ending 450 feet north of Two Bunch Palms Trail. Approximately 820 lineal feet.

On Two Bunch Palms Trailstarting 340 feet west of Palm Dr. ending 280 feet east of Palm Dr.

Approximately 475 lineal feet.

On Palm Dr. starting 280 feet south of Hacienda Ave. ending 220 feet north of Hacienda.

Approximately 480 lineal feet.

On Hacienda Ave. starting 250 feet west of Palm Dr. ending 320 feet east of Palm Dr.

Approximately 470 lineal feet.

On Palm Dr. starting 600 feet south of Pierson Blvd. ending 260 feet north of Pierson Blvd.

Approximately 730 lineal feet.

On Pierson Blvd. starting 250 feet west of Palm Dr. ending 610 feet east of Palm Dr.

Approximately 1.130 lineal feet.

On Pierson Blvd. starting 450 feet west of Cactus Dr. ending 370 feet east of Cactus Dr.

Approximately 560 lineal feet.

On Pierson Blvd. starting l,l50 feet west of West Dr. ending 440 feet east of West Dr.

Approximately 470 lineal feet.

On Pierson Blvd. starting 510 feet west of Via Loreto ending 510 feet east of Via Loreto.

Approximately 480 lineal feet.

2. Palm Dr. LMD.
a. Westside and Eastside of Palm Dr. north of Paul. Approximately 800 lineal feet. b. Eastside of Palm Dr. north of Camino Aventura. Approximately 1,300 lineal feet. c. Eastside of Palm Dr. north of Camino Campanero. Approximately 1,000 lineal feet.

3. Mission Springs Park LMD. l45l0 Palm Drive Desert Hot Springs, CA 92240. Approximately 506,000 . sq. ft.

4. Carl May Center/Library LMD. l l7l l West Dr. Desert Hot Springs, CA 92240. Approximately 58,000 sq. ft.

5. Health 8. Wellness Center LMD. ll750 Cholla Dr. Desert Hot Springs, CA 92240 Approximately l40,000 sq. ft. '
Reflection Park. Palm and 8'" St. Approximately 25,000 sq. ft.

Mission Springs Park. Annual Overseeding.

I4
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17 BIDDER'S PROPOSAL

EXHIBIT A
To the Honorable Mayor and City Council of the Desert Hot Springs:

In compliance with the Notice Inviting Sealed Bids, the undersigned hereby agrees to enter into a contract and furnish all labor, materials, equipment and supplies for LANDSCAPE

Zone #3 Midtown Desert Hot Springs
Item No. Description Monthly Annual
1 City Wide Medians LMD $11,500.00 $138,000.00
2 Palm Drive LMD $1,200.00 $8,293.20
3 Mission Springs Park LMD $4,200.00 $50,400.00
4 Carl May Center/Library LMD $950.00 $6,729.60
5 Health and Wellness Center
LMD $1,250.00 $15,000.00

6. Reflection Park $850.00 $7,734.00
TOTALS $19,950.00 $226.156.80
☒ We claim the Local Business Preference program of the City of Desert Hot Springs and have included a current Business License from a jurisdiction in the Coachella Valley.
☐ We do not claim the Local Business Preference program for this project.

Bidder’s Proposal respectfully submitted:

Name Desert Concepts Construction, Inc.

Address 79775 Ave 40
City, State, Zip Code Indio, CA 92203
Telephone 760-200-9007
E-Mail Address [email protected]
__________________________________________ ___5/9/23_________________ Signature Date
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SERVICE PROVIDER AGREEMENT

BY AND BETWEEN

THE CITY OF DESERT HOT SPRINGS
AND
DESERT CONCEPTS CONSTRUCTION, INC.

THIS SERVICE PROVIDER AGREEMENT (hereinafter, “the Agreement”) is made and entered into this 20th day of June, 2023 by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City”, and DESERT CONCEPTS CONSTRUCTION, INC. a California corporation, hereinafter referred to as “Service Provider”.

RECITALS:

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE

CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth in full herein.

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this Agreement. Service Provider shall not perform, nor be compensated for, Extra Work without written authorization from the City.

Section 4. COMPENSATION
Service Provider shall be paid compensation not to exceed Two Hundred TwentySix Thousand One Hundred Fifty-Six and Eighty Cents ($226,156.80) for the services rendered by Service Provider pursuant to this Agreement.

“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”

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__________
Initials
Section 8. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR’S STATUS OF

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Section 14. COMPLIANCE WITH LAWS; LICENSING AND PERMIT

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shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Service Provider shall provide insurance on an occurrence, not claims-made basis. Service Provider acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof.
b. Service Provider shall maintain automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Service Provider arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Service Provider shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Service Provider were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof. c. Service Provider agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Service Provider enters contracts or whom Service Provider hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and name as additional insureds the parties to this Agreement. Service Provider agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. d. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Service Provider agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated.
e. Service Provider agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the Services, Service Provider shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City or its officers, employees, servants, volunteers, agents and independent contractors.

Section 16. WORKERS' COMPENSATION INSURANCE
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Desert Hot Springs City CouncilJune 20, 2023

Desert Hot Springs City Council
June 20, 2023