Agenda — Desert Hot Springs City Council, July 2, 2024 (part 3 of 5)

Rev. 3/2022 Sourcewell RFP #020223
Medium Duty and Compact Construction Equipment with Related Attachments

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Box 219, Staples, MN 56479. All documents that comprise the complete protest package must be received, and time stamped at the Sourcewell office by 4:30 p.m., Central Time, no later than 10 calendar days following Sourcewell’s notice of contract award(s) or non-award. and must be time stamped by Sourcewell no later than 4:30 p.m., Central Time. A protest must allege a procedural, technical, or legal defect, with supporting documentation. A protest that merely requests a re-evaluation of a proposal’s content will not be entertained A protest must include the following items:
• The name, address, and telephone number of the protester; • Identification of the solicitation by RFP number;
• A precise statement of the relevant facts;
• Identification of the alleged procedural, technical, or legal defect; • Analysis of the basis for the protest;
• Any additional supporting documentation;
• The original signature of the protester or its representative; and • Protest bond in the amount of $20,000 (except where prohibited by law or treaty).

Protests that do not address these elements will not be reviewed.

D. RIGHTS RESERVED
This RFP does not commit Sourcewell to award any contract, and a proposal may be rejected if it is nonresponsive, conditional, incomplete, conflicting, or misleading. Proposals that contain false statements or do not support an attribute or condition stated by the proposer may be rejected.

Sourcewell reserves the right to:
• Modify or cancel this RFP at any time;
• Reject any and all proposals received;
• Reject proposals that do not comply with the provisions of this RFP; • Select, for contracts or for discussion, a proposal other than that with the lowest cost; • Independently verify any information provided in a proposal; • Disqualify any proposer that does not meet the requirements of this RFP, is debarred or suspended by the United States or Canada, State of Minnesota, Participating Entity’s state or province; has an officer, or other key personnel, who have been charged with a serious crime; or is bankrupt, insolvent, or where bankruptcy or insolvency are a reasonable prospect;
• Waive or modify any informalities, irregularities, or inconsistencies in the proposals received;
• Clarify any part of a proposal and discuss any aspect of the proposal with any proposer; and negotiate with more than one proposer;
• Award a contract if only one responsive proposal is received if it is in the best interest of Participating Entities; and
Item Number: 11.

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Rev. 3/2022 Sourcewell RFP #020223
Medium Duty and Compact Construction Equipment with Related Attachments

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• Award a contract to one or more proposers if it is in the best interest of Participating Entities.

E. DISPOSITION OF PROPOSALS
All materials submitted in response to this RFP will become property of Sourcewell and will become public record in accordance with Minnesota Statutes Section 13.591, after negotiations are complete. Sourcewell considers that negotiations are complete upon execution of a resulting contract. It is the proposer’s responsibility to clearly identify any data submitted that it considers to be protected. Proposer must also include a justification for the classification citing the applicable Minnesota law. Sourcewell may reject proposals that are marked confidential or nonpublic, either substantially or in their entirety.

Sourcewell will not consider the prices submitted by the proposer to be confidential, proprietary, or trade secret materials. Financial information, including financial statements, provided by a proposer is not considered trade secret under the statutory definition.

Item Number: 11.

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12/12/2022
Addendum No. 1
Solicitation Number: RFP 020223
Solicitation Name: Medium Duty and Compact Construction Equipment with Related Attachments
Consider the following Question and Answer to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged.

Question 1:

On page 16 of the template contract, Section 21. J., there is a Buy American Provisions Compliance section. “To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act.”
Does this mean a product manufactured outside the US does not comply? Answer 1:

Sourcewell contract template Section 21. – Provisions for Non-United States Federal Entity Procurement Under United States Federal Awards or Other Awards, only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds. The Buy American Provisions Compliance subsection requires compliance to the extent applicable.

A proposer may request a modification to the Sourcewell contract template as part of a proposal. To request a modification to the template contract terms, conditions, or specifications, a proposer may complete and submit the Exceptions to Terms, Conditions, or Specifications Table, which is found as the final Table of Step 1 in the proposal submission process.

End of Addendum
Acknowledgement of this Addendum to RFP 020223 posted to the Sourcewell Procurement Portal on 12/12/2022, is required at the time of proposal submittal.

Item Number: 11.

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12/27/2022
Addendum No. 2
Solicitation Number: RFP 020223
Solicitation Name: Medium Duty and Compact Construction Equipment with Related Attachments
Consider the following Question and Answer to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged.

Question 1:

Will the Pre-Proposal Conference be recorded for viewing later if I am unable to watch it live?
Answer 1:

Sourcewell will provide the Pre-Proposal Conference presentation slides in PDF format to all registered plan takers after the event is complete. In addition, Sourcewell is planning to record the Pre-Proposal Conference. Assuming no technical difficulties in the process, Sourcewell will provide a link to the recording to all registered plan takers after the event.

End of Addendum
Acknowledgement of this Addendum to RFP 020223 posted to the Sourcewell Procurement Portal on 12/27/2022, is required at the time of proposal submittal.

Item Number: 11.

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1/3/2023
Addendum No. 3
Solicitation Number: RFP 020223
Solicitation Name: Medium Duty and Compact Construction Equipment with Related Attachments
Consider the following amendment to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged.

RFP Amendment:

As the result of the publication of an RFP that has been identified as not included in the equipment, products, or services of this solicitation, RFP Subsection II. B. 3. o. is revised to remove the (RFP #TBD) placeholder, and insert the actual RFP number, to read as follows:
* * * *
o. Portable Construction Equipment with Related Accessories and Attachments (RFP #020923)
* * * *
The remainder of the RFP content remains unchanged.

End of Addendum
Acknowledgement of this Addendum to RFP 020223 posted to the Sourcewell Procurement Portal on 1/3/2023, is required at the time of proposal submittal.

Item Number: 11.

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01/24/2023
Addendum No. 4
Solicitation Number: RFP 020223
Solicitation Name: Medium Duty and Compact Construction Equipment with Related Attachments
Consider the following Questions and Answers to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged.

Question 1:

Can a manufacturer allow dealers to sell to Sourcewell members.

Answer 1:

Refer to RFP Section II. B. – Requested Equipment, Products, or Services – “If Proposer requires the use of dealers, resellers, or subcontractors to provide the products or services, the Proposal should address how the products or services will be provided to Participating Entities and describe the network of dealers, resellers, and/or subcontractors that will be available to serve Participating Entities under a resulting contract.” It is left to the discretion of each proposer to determine the information or documentation necessary to best demonstrate their ability to serve Sourcewell participating entities and satisfy all the requirements included in the questionnaire tables. Proposals are evaluated based on the criteria stated in the RFP.

Question 2:

Is it the manufacturer’s responsibility to provide sales activity or will each dealer report this information to Sourcewell?
Answer 2:

Refer to Sourcewell Contract Template Section 8. – Report on Contracts Sales Activity and Administrative Fee Payment. A single sales report and administrative fee remittance is contemplated for each calendar quarter during the term of an awarded contract.

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Question 3:

How do you determine the fee that is paid to Sourcewell? Answer 3:

Refer to RFP Section III. B. – Administrative Fees, for directions on proposing an administrative fee. It is left to the discretion of each proposer to determine and propose an administrative fee that is consistent with its business and its industry.

End of Addendum
Acknowledgement of this Addendum to RFP 020223 posted to the Sourcewell Procurement Portal on 01/24/2023, is required at the time of proposal submittal.

Item Number: 11.

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020223-CAT
Rev. 3/2022 1
Caterpillar: Confidential Green
Solicitation Number: RFP #020223

CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Caterpillar Inc., 5212 N. O’Connor Blvd., Suite 1100, Irving, TX 75039 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Medium Duty and Compact Construction Equipment with Related Attachments from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

B. EXPIRATION DATE AND EXTENSION. This Contract expires April 17, 2027, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.

C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.

2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.

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020223-CAT
Rev. 3/2022 2
Caterpillar: Confidential Green
Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.

Pursuant to Section 10(b), Supplier will subcontract certain obligations under this Contract to its dealers. Only those dealers that sign a Participation Agreement with Supplier obligating them to comply with the terms of this Contract will be eligible to provide Equipment, Products, or Services as a subcontractor under this Contract. In the event there is no dealer who has entered into a Participation Agreement available to provide Equipment, Products, or Services to a Participating Entity, Supplier will be under no obligation to provide Equipment, Products, or Services to such Participating Entity under this Contract. Supplier will provide a copy of this Contract to its dealers that would normally service Participating Entities and invite such dealers to enter into a Participation Agreement as a subcontractor of Supplier under the terms of this Contract.

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.

In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price percentage list discount stated in Supplier’s Proposal.

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020223-CAT
Rev. 3/2022 3
Caterpillar: Confidential Green
Upon request made to a participating CAT dealer, from a Participating Entity identifying themselves as a Sourcewell member by providing their Sourcewell member number and contract number; formal quotes will list all costs, including all delivery expenses, such as freight and permits (when required). Alternatively, Participating Entities may choose to make their own transportation arrangements. In such case, there would be no delivery charges from the local participating Cat dealer.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.

A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities.

Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.

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020223-CAT
Rev. 3/2022 4
Caterpillar: Confidential Green

4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:
• Identify the applicable Sourcewell contract number;
• Clearly specify the requested change;
• Provide sufficient detail to justify the requested change; • Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and • Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.

B. Supplier may not enter into a contract with a U.S. Federal Government entity prior to obtaining necessary internal approvals and shall not be obligated to provide Equipment, Products or Services to any U.S. Federal Government entity under this Contract unless separately agreed in writing. Suppliermay work with such parties and may agree to provide equipment or services under the Contract on a case-by-case basis.

The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

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020223-CAT
Rev. 3/2022 5
Caterpillar: Confidential Green
Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

C. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Participating Dealers with payments made to the Participating Dealers. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier’s Participating Dealer, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier’s Participating Dealer or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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020223-CAT
Rev. 3/2022 6
Caterpillar: Confidential Green
D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:
• Maintenance and management of this Contract;
• Timely response to all Sourcewell and Participating Entity inquiries; and • Business reviews to Sourcewell and Participating Entities, if applicable.

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:
• Participating Entity Name (e.g., City of Staples Highway Department); • Participating Entity Physical Street Address;
• Participating Entity City;
• Participating Entity State/Province;
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020223-CAT
Rev. 3/2022 7
Caterpillar: Confidential Green
• Participating Entity Zip/Postal Code;
• Participating Entity Contact Name;
• Participating Entity Contact Email Address;
• Participating Entity Contact Telephone Number;
• Sourcewell Assigned Entity/Participating Entity Number; • Item Purchased Description;
• Item Purchased Price;
• Sourcewell Administrative Fee Applied; and
• Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.

The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

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020223-CAT
Rev. 3/2022 8
Caterpillar: Confidential Green

10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid. Provided, however, that Supplier is permitted to subcontract certain of its rights and obligations to Supplier Participating Dealers for performance without Sourcewell’s prior written consent.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.

D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.

E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS
Intentionally omitted.

12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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020223-CAT
Rev. 3/2022 9
Caterpillar: Confidential Green
under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. Intentionally deleted.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.

C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.

14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.

15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.

16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

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020223-CAT
Rev. 3/2022 10
Caterpillar: Confidential Green

1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract.

The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
• Exercise any remedy provided by law or equity, or
• Terminate the Contract or any portion thereof, including any orders issued against the Contract.

18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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020223-CAT
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Caterpillar: Confidential Green

2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
$1,000,000 each accident, combined single limit

4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. A Participating Dealer may name a Participating Entity as an additional insured on a case-by-case basis.

D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors.

E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier’s Participating Dealers must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Participating Dealer conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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020223-CAT
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Caterpillar: Confidential Green
neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.

21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Intentionally omitted.

22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.

Sourcewell Caterpillar Inc.

By: __________________________ By: __________________________ Jeremy Schwartz Patrick Kearns
Title: Chief Procurement Officer Title: Vice President Sales & Marketing, Construction Industries
Date: ________________________ Date: ________________________ Approved:

By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 5/5/2023 | 11:57 AM CDT 5/24/2023 | 9:14 AM PDT
5/24/2023 | 12:16 PM CDT
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RFP 020223 - Medium Duty and Compact Construction Equipment with Related Attachments
Vendor Details
Company Name: Caterpillar Inc
Address:
100 NE Adams St
Peoria, IL 61629
Contact: Sean Egel
Email: [email protected]
Phone: 309-675-1399
HST#:

Submission Details
Created On: Tuesday December 06, 2022 08:40:12
Submitted On: Wednesday February 01, 2023 17:08:39
Submitted By: Sean Egel
Email: [email protected]
Transaction #: 9a461f27-b7e7-4aa6-83b3-419bcf0de541
Submitter's IP Address: 199.247.43.43
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Specifications
Table 1: Proposer Identity & Authorized Representatives General Instructions (applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank; respond “N/A” if the question does not apply to you (preferably with an explanation).

Line
Item Question Response *
1 Proposer Legal Name (one legal entity only):
(In the event of award, will execute the
resulting contract as "Supplier")
Caterpillar Inc.
*
2 Identify all subsidiary entities of the Proposer
whose equipment, products, or services are
included in the Proposal.

N/A
*
3 Identify all applicable assumed names or DBA
names of the Proposer or Proposer's
subsidiaries in Line 1 or Line 2 above.

N/A
*
4 Provide your CAGE code or Unique Entity
Identifier (SAM):
11083 *
5 Proposer Physical Address: 5212 N O'Connor Blvd Ste. 1100, Irving, TX 75039 * 6 Proposer website address (or addresses): https://www.caterpillar.com/, https://www.cat.com/en_US.html * 7 Proposer's Authorized Representative (name,
title, address, email address & phone) (The
representative must have authority to sign
the “Proposer’s Assurance of Compliance” on
behalf of the Proposer and, in the event of
award, will be expected to execute the
resulting contract):

Primary Contact: Patrick Kearns
Title: Vice President Sales & Marketing
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 675-5181
*
8 Proposer's primary contact for this proposal
(name, title, address, email address & phone):

Primary Contact: Sean Egel
Title: Governmental Sales Consultant
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 675-1399
*
9 Proposer's other contacts for this proposal, if
any (name, title, address, email address &
phone):

Primary Contact: Marta Sevilla
Title: Governmental Marketing Manager
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 578-1150
Table 2: Company Information and Financial Strength
Line
Item Question Response *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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10 Provide a brief history of your company,
including your company’s core values,
business philosophy, and industry longevity
related to the requested equipment, products
or services.

The history of Caterpillar is all about doing: creating, building, problem solving, innovating, testing, servicing and improving. We’re proud of the ingenious machines that are part of our rich heritage. More importantly, we are proud of the people who founded and built the company one breakthrough at a time. Beginning with Benjamin Holt and C. L. Best, the people of Caterpillar have always been - and continue to be - extraordinary.

In 1925 when Holt and Best merged to form their new tractor company, they used the name Caterpillar, which had become familiar with people around the world. The name was registered in 1910 by Holt and placed on his tractors to reflect the undulating movement the machine made as it crawled across the field like a caterpillar.

With 2022 sales and revenues of $59.4 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment.

Our Worldwide Code of Conduct, first published in 1974, defines what we stand for and believe in, documenting the uncompromisingly high ethical standards our company has upheld since its founding in 1925. The Code helps Caterpillar employees put our values and principles into action every day by providing detailed guidance on the behaviors and actions that support our values of Integrity, Excellence, Teamwork, Commitment and Sustainability.

Caterpillar's Code of Conduct that can be found at
https://www.caterpillar.com/en/company/code-of-conduct.html *
11 What are your company’s expectations in the
event of an award?
Caterpillar is honored to have served Sourcewell and its members who have purchased Cat® construction equipment, attachments (work tools), and electrical power generation products through Sourcewell since 2008. Furthermore, we are proud to have earned the Sourcewell Legacy Award in 2019, and have recently been awarded contracts 060122-CAT and 092222-CAT.

Caterpillar's expectations in the event of an award would be to focus on customer needs and continued growth across all governmental segments. Sourcewell has built a strong reputation within the industry that has shown the importance of how this cooperative contract delivers upon customer needs. This contract will be a top factor in our go to market strategy within our strong Cat dealer network. If awarded, we will send out an email to our entire sales force, applicable to governmental, introducing the contract along with ways to train our salesforce, market, and grow the contract.

We look forward to the opportunity to further grow business and serve member needs together in this new Medium Construction Equipment RFP opportunity. *
12 Demonstrate your financial strength and
stability with meaningful data. This could
include such items as financial statements,
SEC filings, credit and bond ratings, letters
of credit, and detailed reference letters.

Upload supporting documents (as applicable)
in the document upload section of your
response.

Caterpillar Inc. is a publicly traded company, and as such, its financial information is updated quarterly and available at: https://investors.caterpillar.com/overview/default.aspx Caterpillar's 2021 Annual Report provides details about our financial position. Our SEC filing documents can be found at:
https://investors.caterpillar.com/financials/sec-filings/default.aspx. Both documents are included as attachments in our Financial Strength and Stability Documents.

As 2022 results have just been released, below you can find a high level sales statement for 2022 followed by our more detailed 2021.

In 2022 full year sales and revenues were $59.4B with a profit per share of USD $12.64.

In 2021 full year sales and revenues were $51B of which, North American sales were $22B. Operating profit was $6.9B with a profit per share of USD $11.83.

Dividends paid per share of USD $4.28.
*
13 What is your US market share for the
solutions that you are proposing?
Caterpillar is a significant contributor to the overall Heavy Equipment sector within the US and Canada. Market share information beyond what is made publicly available through our annual reports is considered confidential. *
14 What is your Canadian market share for the
solutions that you are proposing?
Caterpillar is a significant contributor to the overall Heavy Equipment sector within the US and Canada. Market share information beyond what is made publicly available through our annual reports is considered confidential. *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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15 Has your business ever petitioned for
bankruptcy protection? If so, explain in detail.

No. *
16 How is your organization best described: is
it a manufacturer, a distributor/dealer/reseller,
or a service provider? Answer whichever
question (either a) or b) just below) best
applies to your organization.
a) If your company is best described as
a distributor/dealer/reseller (or similar entity),
provide your written authorization to act as a
distributor/dealer/reseller for the manufacturer
of the products proposed in this RFP. If
applicable, is your dealer network
independent or company owned?
b) If your company is best described as
a manufacturer or service provider, describe
your relationship with your sales and service
force and with your dealer network in
delivering the products and services
proposed in this RFP. Are these individuals
your employees, or the employees of a third
party?
Caterpillar is a world class manufacturer which distributes products through a vast and capable independent dealer network. Cat dealers are strong independently owned companies and in North America alone our 47 dealers have a combined net worth of billions of dollars. Their large valuation is a competitive advantage because it allows them to have the infrastructure to support customers regardless of location, industry, fleet size, or application.

Another advantage of independently owned dealers is that they know their customers and market well. They tailor their services specifically to their customers' needs.

Although we will sign this contract as a manufacturer, our Cat dealers will be given the opportunity to avail themselves of the opportunity presented by the contract and will
execute all the transactions with governmental customers as they do today. This includes but is not limited to consultation, quoting, accepting payment, delivery, warranty support, parts sales, and service.

Caterpillar dealers heartily embrace the other Sourcewell contracts currently available to them (032119-CAT, 092222-CAT, 062320-CAT, 060122-CAT). They have all been trained on contract usage. In fact, the current Heavy Equipment contract is leveraged by 95% of our dealers in North America. Caterpillar offers specific discounts to Sourcewell members. By using any Sourcewell Contract, our dealers agree to honor those discounts.
*
17 If applicable, provide a detailed explanation
outlining the licenses and certifications that
are both required to be held, and actually
held, by your organization (including third
parties and subcontractors that you use) in
pursuit of the business contemplated by this
RFP.

Caterpillar and its subsidiaries operate across the globe in a variety of markets that require Caterpillar to adhere to all locally mandated laws and regulations in order to do business. With regards to the territories covered by this RFP, Caterpillar will comply with applicable laws in order to do business in the territories described herein.

As an equipment manufacturer focused on quality, Caterpillar created the Caterpillar Quality Management System, which is a process-based, ISO 9001:2015 compliant quality management system used throughout Caterpillar to continually improve the quality of our products and services to meet customer, statutory, and regulatory requirements. It is registered with IRCA (International Register of Certificated Auditors) as Caterpillar Quality Management System CAT791A. *
18 Provide all “Suspension or Debarment”
information that has applied to your
organization during the past ten years.

N/A
*
Table 3: Industry Recognition & Marketplace Success
Line
Item Question Response *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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19 Describe any relevant industry awards or
recognition that your company has received
in the past five years
Please note: To list all the awards received in the past 5 years would unnecessarily lengthen our response. For brevity, we are highlighting some recognition received in 2020, 2021 and 2022. Also note there are many global awards.

Fortune Magazine #78 on the Fortune 500 2021
Fortune Magazine World's Most Admired Companies
Forbes Best Employers for diversity 2020 and 2021
#82 Best Global Brands- Interbrand 2021
The Wall Street Journal Best Managed Companies in 2020 and 2021 The Wall Street Journal World's Most Sustainably Managed Companies Human Rights Campaign Foundation Corporate Equality Index Dow Jones Sustainability Index (World and North America) 21 years World’s Most Sustainably Managed Companies – The Wall Street Journal United Way World Wide’s Global Corporate Leadership Program
U.S. President’s Volunteer Service Award from Junior Achievement Corporate Equality Index – Human Rights Campaign Foundation CSR China Top 100 – the 4th CSR China Education Award (China) China CSR Excellence Award – China Philanthropy Times (China)
Corporate Social Responsibility Research Center of Southern Weekly (China) Outstanding Contribution to Poverty Alleviation – China Foundation for Poverty Alleviation (China)
2020 Global 500 – Fortune Magazine
America’s Most Responsible Companies 2020, 2021 & 2022 – Newsweek Best-Managed Companies of 2020 & 2021 – The Wall Street Journal Top Companies for Customer Satisfaction – The Wall Street Journal The CEO Leaderboard: COVID-19 Reputation Rankings – SJR All-America Executive Team – Institutional Investor
Top 150 Global Licensors – Global License Best Global Brands Top 100 – Interbrand World’s Most Valuable Brands 2020 – Forbes
2020 Best Places to Work for Disability Inclusion – Disability Equality Index World’s Best Employers 2020 – Forbes
Best Employers for Women 2020 – Forbes
America’s Best Employers by State 2020 – Forbes
America's Best Employers for Diversity 2020 – Forbes
Best Employers for New Grads 2020 – Forbes
Global 2000 – Forbes 2020, 2021 & 2022
Best Employers for Veterans 2020 and 2021– Forbes
Top Veteran-Friendly Company – U.S. Veterans Magazine
#1 Great Place to Work – Great Place to Work Institute (Brazil) #1 Great Place to Work in the Ag Business - Great Place to Work Institute (Brazil) Chile’s 20 Best Places in 2020 to Work for LGBTQ Equality, pwc Human Rights Campaign
Top of Mind Company “Industry category” (Piracicaba, Brazil) Certification on Promoting Work-Life Balance in Hyogo Prefecture – Hyogo Work and Life Center (Japan)
Hyogo’s Women’s Success in Business Promotion Company – Hyogo Women Empowerment & Promotion Center (Japan)
Hanada Award for WIN Akashi – Hyogo Women and Future Association (Japan) Hyogo Childcare Supporting Company Award (Japan)
Science & Technology Industry Summit: Outstanding Contribution – The Economic Observer (China)
*
20 What percentage of your sales are to the
governmental sector in the past three years
The governmental and educational sector is extremely important to Caterpillar. We have a dedicated team to support governmental customers and their specific needs. However, percentage of sales to governmental is considered confidential. *
21 What percentage of your sales are to the
education sector in the past three years
The governmental and educational sector is extremely important to Caterpillar. We have a dedicated team to support governmental customers, including the education sector, and their specific needs. However, percentage of sales to education is considered confidential.
*
22 List any state, provincial, or cooperative
purchasing contracts that you hold. What is
the annual sales volume for each of these
contracts over the past three years?
While Cat dealers would typically hold contracts with states and provinces, as an exception Caterpillar holds the state contract with Ohio and NY.

Additionally, we are contract holders with OMNIA and NASPO ValuePoint.

Just as we would never share Sourcewell sales information with other cooperatives, we also keep the sales volumes from other cooperatives confidential. *
23 List any GSA contracts or Standing Offers
and Supply Arrangements (SOSA) that you
hold. What is the annual sales volume for
each of these contracts over the past three
years?
Listed below are the current GSA contracts that Caterpillar holds:

SIN 333924 Utility Trucks and Tractors: 2020=$6,857,211 2021=$14,071,364 SIN 333120 Street Repair and Cleaning Equipment and Attachments: 2020=$0 / 2021=$143,837 SIN 335999 Power Distribution Equipment: 2020=$151,267.70 / 2021=$9,473.07
These contracts are used by Caterpillar, but we do not allow our dealers to use GSA contracts.

Final sales for the year 2022 have yet to be fully reported. *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Table 4: References/Testimonials
Line Item 24. Supply reference information from three customers who are eligible to be Sourcewell participating entities.

Entity Name * Contact Name * Phone Number *
Baltimore County, MD Jamie Donahue 410-952-6981 *
Washington DC Fleet Greg Harrelson 202-437-3799 *
Town of Scituate Mass. Kevin Cafferty 781-545-8732 *
Table 5: Top Five Government or Education Customers
Line Item 25. Provide a list of your top five government, education, or non-profit customers (entity name is optional), including entity type, the state or province the entity is located in, scope of the project(s), size of transaction(s), and dollar volumes from the past three years.

Entity Name Entity Type * State /
Province * Scope of Work * Size of Transactions * Dollar Volume Past ThreeYears * Virginia
Department of
TransportationCentral
Government Virginia - VA State Department of
Transportation for Virginia.

Caterpillar requests that
Sourcewell treat the information
in this table as confidential.

Purchased 41 units. $12,321,972
*
State of Idaho Government Idaho - ID State of Idaho. Caterpillar requests that Sourcewell treat the
information in this table as
confidential.

Purchased 39 units. $10,304,218
*
Alaska
Department of
Transportation
Government Alaska - AK State Department of
Transportation for Alaska.

Caterpillar requests that
Sourcewell treat the information
in this table as confidential.

Purchased 37 units. $12,176,875
*
Arkansas State Government Arkansas - AR State of Arkansas. Caterpillar requests that Sourcewell treat the
information in this table as
confidential.

Purchased 28 units. $10,053,000
*
Suwannee
County
Government Florida - FL A county local to Florida.

Caterpillar requests that
Sourcewell treat the information
in this table as confidential.

Purchased 26 units. $6,567,420
*
Table 6: Ability to Sell and Deliver Service
Describe your company’s capability to meet the needs of Sourcewell participating entities across the US and Canada, as applicable.

Your response should address in detail at least the following areas: locations of your network of sales and service providers, the number of workers (full-time equivalents) involved in each sector, whether these workers are your direct employees (or employees of a third party), and any overlap between the sales and service functions.

Line
Item Question Response *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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26 Sales force. The Cat dealer salesforce is highly capable and trained in the construction industry.

The Cat dealer salespeople are consultants to their customers and advise their customers on the best solutions for their application and job. As a manufacturer we request our dealers to follow strict training protocols to ensure our sales force remains current on all product updates. Specifically, as it relates to governmental sales, each dealer has one or more people named to be a key liaison between us as manufacturer and their dealer sales team. They're offered additional in depth training on Sourcewell and ensures that all contract terms are followed.

Caterpillar has Operational Excellence Programs that recognize dealers' excellence in marketing and sales processes and operations, among other areas of the business.

In North America, Cat dealers employ more than 53,000 people across the machine, energy, parts and service divisions. The dealer sales teams are supported by a network of Caterpillar professionals. Each dealer has in territory support of 5 to 8 Caterpillar sales/marketing employees. It is the responsibility of these people to ensure that the dealer and Caterpillar are working well together to constantly improve and to adapt to marketplace changes. Beyond the territory experts, the sales and marketing department at Caterpillar is staffed by more than 600 people whose mission is to focus on customer satisfaction. Even more are employed "behind-the scenes" to ensure industry leading product design, up to date product information, and maintaining the ease of doing business in an increasingly connected marketplace. *
27 Dealer network or other distribution
methods.

The Cat dealer network is key to the success of our company. Boasting 160 dealers throughout 193 countries worldwide, the Cat dealer network is widely considered to be the best in industry. Within Canada and the United States, we have 47 dealers and more than 800 dealer owned locations that sell and rent equipment.

Please refer to our directory listing of Cat dealer locations and our easy to view locations map in the attached "Additional Documents" zip file. Cat dealers are independently-owned. Each dealer has multiple branches and a mobile service fleet than can serve customers regardless of location. These are full physical locations our governmental customers can use.

Because of the size of Cat dealers, they are exceptionally capable to serve governmental customers. Dealers have trained specialists that cover many industries including heavy equipment.

Collectively, Cat dealers' large net worth permits them to stock a high volume of replacement parts - allowing governmental customers the fastest turnaround on parts availability and repair time. Cat dealers recognize the importance of governmental business to their overall success and they each have one or more governmental specialists whose job it is to serve governmental agencies well.

Please refer to the Cat dealer locations map included in "Additional Documents". Additionally, you can leverage https://www.cat.com/en_US/support/dealerlocator.html to locate dealers by location. *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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28 Service force. At Caterpillar we are very proud of the saying "The sales department sells the first machine; the service department sells every one after that." The Cat dealer network in North America collectively employs more than 20,000 factory trained technicians, parts experts, product support managers and
other service-oriented staff. These subject matter experts are supported by the best repair shop equipment and materials. As machines and engines are constantly updated, so too are our service experts. We conduct product-specific training every week of the year. Technician shortage is an industry-wide concern, but because Cat dealers are large, long established companies, they can offer strong compensation and benefit packages that encourage the best people to seek employment and to retain them once hired. Caterpillar works very closely with dealers and through a program called "ThinkBIG", we are able to keep the pipeline of high quality employees full. ThinkBIG is a Caterpillar-specific instructional program that pays the student while they train to become a technician. It is a 2-year program with lab and classroom work, and a paid internship at a sponsoring Cat Dealer. As a result, the student will graduate with an accredited degree backed with over 2,000 hours of work experience.

In addition to the technicians and mechanics that work on the machines directly, each dealer has a service support staff that includes customer-facing consultants who are responsible for working with customers to set up maintenance and repair schedules to ensure the best possible up-time.

Collectively, service support staff makes up the bulk of each dealers' staff. Roughly half of their personnel investment goes to ensuring customer success via product support.

The dealer service teams are supported by a network of Caterpillar professionals.

Each dealer has in territory support of 5 to 8 Caterpillar parts/service employees. It is the responsibility of these specialists to ensure that the dealer and Caterpillar are working well together to constantly improve and to adapt to marketplace changes.

Beyond the territory experts, the service and support groups at Caterpillar are staffed by thousands of people whose mission is to focus on post-sale customer satisfaction.

Even more are employed "behind-the-scenes" to ensure technical literature is up to date, service standards are adhere to and repair questions are answered quickly. We exceed our 95% 2-hour response rate target in responding to dealer service inquiries. *
29 Describe the ordering process. If orders
will be handled by distributors, dealers or
others, explain the respective roles of the
Proposer and others.

Our simple order process has been and will continue to be well appreciated by Sourcewell and Sourcewell members:
1) When a member decides to purchase a new Cat machine, they simply include their Sourcewell member number on the Purchase Order they issue to the Cat dealer. 2) The Cat dealer then accepts the PO, issues the invoice, accepts payment and delivers the machine.
3) After the machine has been delivered, the dealer, as part of their normal process, includes the member number when filing their sales claims with Caterpillar. 4) At month's end, Caterpillar aggregates these reports and sends the sales information quarterly to Sourcewell along with the administrative fee.

IMPORTANT NOTE: Should a member wish to include additional terms and conditions to this contract, or to otherwise request a Participating Addendum, that agreement / PA should be executed between the member and Cat dealer directly. *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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30 Describe in detail the process and
procedure of your customer service
program, if applicable. Include your
response-time capabilities and
commitments, as well as any incentives
that help your providers meet your stated
service goals or promises.

We are proud that our reputation stands on having the best customer support in the industry. In fact, our capabilities are industry leading. In the event a customer ever has a problem or issue with a machine, their Cat dealer is empowered to resolve that issue locally. If the problem is a result of a defect in material or workmanship, within the standard warranty period, the local Cat dealer will work with Caterpillar to apply the appropriate warranty, and keep the customer informed. Every Cat dealer has a common detailed service process in place. Caterpillar supports and verifies that all the dealer service technicians are supplied with the tools and equipment needed to repair all Cat products.

Technicians have access to an electronic library of technical information including Service Letters, Technical Information Bulletins, System Operations, Troubleshooting and Disassembly and Assembly manuals. These manuals are provided for every Cat product. Each dealer also has one or more "Technical Communicators" who are dedicated to supporting the service technicians by acting as a liaison between the shop personnel and Caterpillar.

The service technicians also have a dealer support network (DSN) system with direct access to Caterpillar's Service Engineers. Caterpillar responds to more than 95% of all high priority tickets within one hour.

Caterpillar is got everything customers need to keep their Cat machines in top shape. Whether they want Genuine Cat parts, manuals and resources to do maintenance and repairs themselves, or prefer to have one of our expert dealer technicians do the work. We make it easy to keep their Cat equipment running.

Some of our service solutions include:
-Cat Fleet Management (Condition Monitoring) - Lowers the total cost of ownership of machine. By connecting your fleet, you will be able to: track the location of your assets, monitor & manage the fuel consumption, identify the operators who would need extra training, and plan & schedule your maintenance. All of which will maximize your uptime.
-Customer Value Agreements (CVA) - Customizable plans for your equipment new or used - to do more work with lower, more predictable costs. It's a convenient plan to get the most from your equipment throughout its life. Examples of CVAs may include but are not limited to: Maintenance CVAs, Component CVAs, and Machine CVAs. -S•O•S Services - A fluid analysis program that provides results that you can trust including trend analysis that provides benefit to your machine and fleet. -Cat Inspect - A digital way to perform checklists, pre-work inspections, annual inspections and PM checklists. All of which can be captured in the easy to use app. *
31 Describe your ability and willingness to
provide your products and services to
Sourcewell participating entities in the
United States.

We are proud to serve all geographic areas and all Sourcewell member sectors within the United States to offer our complete products and services. Caterpillar has successfully and proudly utilized Sourcewell to sell machines in all 50 states.

Caterpillar's global reach and presence is unmatched in the industry, and we serve customers around the globe. Our manufacturing, marketing, logistics, services, research and development and related facilities, along with our dealer locations, total more than 500 locations worldwide. North America specifically is home to 47 factories and 10 parts distribution centers, which make up 40% of our global footprint! The Caterpillar parts network delivers 98% of the parts orders within 24 hours.

In addition to our facilities listed above, Cat Parts are available through the Cat dealer network in at different price points, including: Cat New, Cat General Duty and Cat Reman. The Cat dealer network also have the capability to provide dealer exchange components, dealer rebuilt components and used parts when available.

Each dealer can match the appropriate parts offering to match the customers application and productivity. For example, Cat dealers offer Cat factory remanufactured parts (Cat reman) to follow the same quality, performance, and reliability as Cat new parts. This product line provides the same as new parts warranty, includes critical engineering changes, reduces waste, and protects the environment and saves critical repair time on machines. Cat reman also uses 100% Cat parts in the remanufacture process.

Our 1.4 million parts are available to order 24/7 on Parts.Cat.Com. *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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32 Describe your ability and willingness to
provide your products and services to
Sourcewell participating entities in Canada.

Our 1.4 million parts are available to order 24/7 on Parts.Cat.Com. *
33 Identify any geographic areas of the United
States or Canada that you will NOT be
fully serving through the proposed contract.

We are proud to serve all geographic areas of the United States and Canada. *
34 Identify any Sourcewell participating entity
sectors (i.e., government, education, not-forprofit) that you will NOT be fully serving through the proposed contract. Explain in
detail. For example, does your company
have only a regional presence, or do other
cooperative purchasing contracts limit your
ability to promote another contract?
We are proud to serve all Sourcewell Member sectors within the United States and Canada with our complete product and service offering through Sourcewell.

Caterpillar's cooperative purchasing contracts are non-exclusive; i.e. none of them restrict Caterpillar from promoting our Sourcewell contracts. *
35 Define any specific contract requirements
or restrictions that would apply to our
participating entities in Hawaii and Alaska
and in US Territories.

There are no restrictions or limitations for sales to members in Hawaii, Alaska or U.S. Territories. *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Table 7: Marketing Plan
Line
Item Question Response *
36 Describe your marketing strategy for
promoting this contract opportunity.

Upload representative samples of your
marketing materials (if applicable) in
the document upload section of your
response.

Our current marketing strategy with Sourcewell contract 032119-CAT proves to be effective with year over year sales growth. Our primary strategy to promote this contract with participating entities is through our Cat dealers' sales force. We provide group and individual training to our dealer sales reps, focusing on benefits from selling through cooperative contracts vs bids. We proudly announce the award publicly through our multiple customer facing touchpoints which may include:
1) Press Release
2) Government Solutions Magazine (Caterpillar produced magazine distributed to governmental customers in the US and Canada)
3) Government Training & Safety Days (Government customer training events at Caterpillar facilities)
4) Announcement in our governmental customer e-newsletter 5) Feature on our governmental focused website: www.cat.com/governmental 6) Announcement on our social media channels (FB, Instagram, LinkedIn) 7) Display mentions at all governmental tradeshows we attend. (NACE Annual Conference, APWA Snow Show, Waste EXPO, GFX, NIGP Annual Forum & Products Expo, and APWA PWX & Annual Roadeo)
8) Update literature with the new contact information. (An updated version can be found within our attached marketing plan attachment.)
*
37 Describe your use of technology and
digital data (e.g., social media,
metadata usage) to enhance
marketing effectiveness.

Caterpillar and the Cat dealer network are leaders in using technologies to reach our customers.
- Focus on organic search and Search Engine Optimization (SEO) to help our customers digitally find our products and the information they need. - Leverage Caterpillar's social media platforms (YouTube, Facebook, LinkedIn, Instagram, etc) and ability to target governmental segments.
- Leverage predictive data analytics (past purchase history and financing information) to recognize in advance when customers may be considering replacing machines they currently own.
- Leverage Deltek's GovWIN data in the US and Canada for governmental lead generation.

Caterpillar has a Customer Interaction Center available 24/7 who handles digital leads received from cat.com, social media, etc. Our team qualifies those leads and passes them on to our Cat Dealer network using the Salesforce platform (Customer Relationship Management system). We have processes that allows us to confirm our Cat dealers have reached out to those customers.
*
38 In your view, what is Sourcewell’s role
in promoting contracts arising out of
this RFP? How will you integrate a
Sourcewell-awarded contract into your
sales process?
Sourcewell is a well-respected contracting agency within the public procurement industry. It is important, in the event of an award, that our products and logos be included in Sourcewell marketing and website. We believe that the most important role that Sourcewell can play in marketing our contract and products, is to market themselves and promote contract purchasing across the industry.

In the event of an award, Caterpillar will put high priority in building awareness and enthusiasm within our dealer network and customer base to leverage the Sourcewell contract as our go to market strategy.
*
39 Are your products or services
available through an e-procurement
ordering process? If so, describe your
e-procurement system and how
governmental and educational
customers have used it.

We do offer a e-procurement ordering process for parts via parts.cat.com. We can also integrate into a variety of procurement systems for high volume customers.

Our wide machine portfolio and multiple configurations per machine model allows us to provide the best machine for the customer need. Our Cat dealers are trained to configure our equipment and advise the customer on the best machine and configuration for their application. Therefore, a consultative salesperson is integral in this process, and we do not use an e-procurement machine ordering process.
*
Table 8: Value-Added Attributes
Line
Item Question Response *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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40 Describe any product, equipment,
maintenance, or operator training
programs that you offer to
Sourcewell participating entities.

Include details, such as whether
training is standard or optional,
who provides training, and any
costs that apply.

All dealers offer basic operation, safety, and maintenance training with every sale. Should a customer desire more advanced training, such as productivity improvement or advanced repairs, each of our dealers can supply that training. Often there is a cost associated with that specific training and it would be negotiated between the dealer and the customer.

Caterpillar also offers training programs directly to customers in three areas: operation, safety and service. Members may access courses online, via CD's, or through instructor-led classes leading to operator certifications. The fees for these services vary depending on the depth of training desired. These high-level instruct-led courses can be conducted at one of our dedicated training facilities in the US or on a customer's local site using their own equipment.

Caterpillar also has a licensed supplier that offers Cat Simulators to teach operational techniques from real job sites.

For more information visit: https://catsimulators.com/
*
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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41 Describe any technological
advances that your proposed
products or services offer.

Cat technology gives you the power to track, monitor, automate and manage all types of assets- from a single machine, engine, to an entire fleet. We even offer technologies that protect your people. Listed below are a few technology offerings (standard and optional) that are used throughout the world in our Cat equipment.

Next Generation Excavators:

Cat Vision Link - Delivering valuable data with connected machine.

Cat Payload - Precisely load targets every time for faster cycle times.

Cat E-Fencing - Automatically stops excavator motion using boundaries you set in the monitor for the entire working envelope - above, below, sides and front.

Cat Birds Eye 360 View Camera - Rearview and right-side-view cameras always keep operators aware of their surroundings.

Cat Skid Steer and Compact Track Loaders:

Electronic Torque Management System - Helps maximize performance, minimize fuel consumption.

Sealed and Pressurized Cabs - Provides a cleaner, quieter work environment.

Cat Backhoe Loaders:

Selectable Power Management Modes - Saves fuel while maintaining machine performance.

Load-Sensing Hydraulic System - Provides excellent response for improved hoe and loader productivity and greater bucket breakout force.

Cat Wheel Loaders:

Operator Assist - Helps the operator reduce tire slippage, automatic rimpull management and provides up to 10% better cycle time resulting in higher productivity.

Autodig - consistent high bucket fill factors delivers up to 10% more productivity.

Cat Track Type Tractors:

Display with Camera - Optional 10" touchscreen, color display including rearview camera and slope indicate/assist screens. Larger reversing camera gives the operator better visibility to the job site.

Cat Material Handlers:

Smartboom - significantly enhances operator comfort and job efficiency by reducing stress and vibrations transmitted to the machine. Loading is more productive and more fuel efficient.

Machine/Operator Safety Technology:

Machine Security System - Gives you control over who can operate your machines and when. Prevents theft.

Seat Belt Reminder - Cost effective safety upgrade that significantly improves operator safety.

Cat Detect for Personnel - Alert ground crews in close proximity to mobile equipment.

Cat Detect for Personnel sounds an immediate, unique alert that cuts through the white noise of engines, generators, cell phones and job site chatter to protect ground workers from equipment backing incidents.

Cat Command - Remote control in operations where an operator could be at safety risk.

Whether you're looking to add technology to your current machine, or want new ways to get more value out of the technology on your equipment, we have options for you. *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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42 Describe any “green” initiatives
that relate to your company or to
your products or services, and
include a list of the certifying
agency for each.

Caterpillar shares the concerns of governments and the public about the risks of climate change and supports global efforts to mitigate its impact. We are committed to contributing to a reduced-carbon future.

We demonstrate this in many ways including through our significant progress in reducing greenhouse gas (GHG) emissions from our operations and our continued investment in new products, technologies and services.

Caterpillar is engineering a brighter future through:
- Product innovations
- Advanced technologies leveraging know-how and R&D
- Usage of renewable fuels and fluids
- Solutions to improve jobsite efficiency
- Maintenance solutions
- Manufacturing operations’ carbon efficiency
Caterpillar's long-standing commitment to sustainability inspires us to set and achieve meaningful environmental, social and governance (ESG) goals and develop innovative products, technologies and services to support our customers on their sustainability journey.

Caterpillar is fully committed to our customers’ success by not only the design and manufacture of durable, reliable, innovative and rebuildable construction equipment, but also through our extensive and unmatched dealer network that provides you the best service and support to keep your equipment running, regardless of the environment or challenges.

We consider this as we work toward a vision of a world in which people's basic needs - such as shelter, clean water, education, and reliable energy - are fulfilled. We provide work environments, products, services, and solutions that make productive and efficient use of resources as we strive to achieve our vision. We believe this commitment supports the enduring success of our customers, stockholders, dealers, and our people.

Caterpillar is a proud 22-year member of the Dow Jones Sustainability Indices, including both the World and North America Indices. The annuals DJSI process follows a best-inclass approach, evaluating numerous corporate economic, environmental, and social performance factors.

For more on sustainability please visit our full report attached in the Financial and Stability attachment section.
*
43 Identify any third-party issued ecolabels, ratings or certifications that your company has received for
the equipment or products
included in your Proposal related
to energy efficiency or
conservation, life-cycle design
(cradle-to-cradle), or other
green/sustainability factors.

Plants certified with IDO 14001:2004 Environmental Management System include:
1) Anchor Coupling - Goldsboro NC, ISO 14001:2004- Sept 2018 2) Anchor Coupling - Menominee - ISO 14001: 2015 - Jan. 2021 3) Gen Sets - Newberry 0 ISO 14001:2004 - Nov. 2017
4) Mapleton - 14001:2004 self-certification issued Jan 2013 5) Reman Services - Corinth MS - ISO 14001-2015- Sept. 2021 6) Reman Services - Franklin - ISO 14001:2004-May 2017
*
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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44 Describe any Women or Minority
Business Entity (WMBE), Small
Business Entity (SBE), or veteran
owned business certifications that
your company or hub partners
have obtained. Upload
documentation of certification (as
applicable) in the document
upload section of your response.

Caterpillar has long drawn on the diversity of its people as a source of innovation and competitive advantage. We are proud that our people come from across the globe, with diverse backgrounds, experiences and perspectives. Despite our differences – in geography, culture, language and business – we are one Caterpillar, one company united by these common principles with a shared commitment to the highest standards of conduct.

For example: Foley Equipment, a Cat dealer, with territory primarily in Kansas and Missouri, is woman owned. In addition to Foley equipment, there are 31 other women in our North American dealer network who hold the titles of President, Vice President or Director.

One of the more recognized initiatives within Caterpillar's Global Supply Network Division is the Caterpillar Inc. Proprietary Information Supplier Diversity Program which spurs economic growth by increasing business opportunities to minority-owned, women-owned, veteran and service disabled veteran-owned, small disadvantaged businesses and those certified in HUBZones, all while ensuring expectations are met with regards to quality, velocity, capacity, and cost. Currently more than 37% of our direct and indirect purchasing is conducted with suppliers in these categories.

Caterpillar is a proud member of the National Minority Supplier Development Council (NMSDC). We also use the System for Aware Management (SAM), SBA, and NMSDC databases to locate SDB, VOSB, SDVOSB and HUBZone suppliers.

Supplier Diversity is discussed with Global Supply Network Division leadership during the Monthly Operating Results Review meetings. This in turn forces accountability for supplier inclusion by measuring drivers, such as the number of sourcing projects, which include Divers Suppliers and the values of the projects in which they participate. The goal is to create greater transparency to determine which teams are creating inclusive environments and which are not.

For more detail, please see our attached 2021 Global Diversity & Inclusion Report in the Additional Documents folder.
*
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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45 What unique attributes does your
company, your products, or your
services offer to Sourcewell
participating entities? What makes
your proposed solutions unique in
your industry as it applies to
Sourcewell participating entities?
BEST OVERALL VALUE / LOWEST LIFE CYCLE COST:

Cat products deliver the best value for the money. While we rarely have the lowest initial purchase price, we are happy to demonstrate to customers that our machines offer the lowest overall owning and operating costs when factors such as fuel efficiency, repair frequency, productivity, and resale value are factored in. We believe that government agencies are tasked to be the best stewards of taxpayer funds and our products can prove that they are the best solution. Sourcewell members are in the best position to allow these discussions to take place in contrast to a local bid situation where the focus is often only on initial price.

CAT SAFETY SERVICES / SAFETY FEATURES:

In addition to the tangible, measurable aspects of the life cycle cost equation, we also bring our focus on safety to every product that we manufacture. Quantifying a human life or debilitating injury is impossible, but each machine has industry-leading features that strive to minimize the possibility for accidents.

In addition to built-in safety features, we also offer products and services that are unique in the industry.

Cat Safety Services include, but are not limited to, the following:

Safety Perception Survey - Used to establish a baseline safety-culture assessment by measuring employee perceptions and gaps in beliefs between management and employees on the front line across 20 Safety Culture Indicators.

Safety Leadership Assessment - Used to measure individual safety leadership capability around four domains of safety leadership.

Worksite Assessment - Compares onsite observations of safety practices and employee interview data to the documented processes and procedures.

Continuous Improvement Process - Involving all levels of the organization to generate engagement, involvement, and ownership in the safety improvement process.

Training - can be conducted with e-learning courses on http://safelyhome.cat.com, instructor led
training products or as Supplier-facilitated workshops. Topics available include, but are not limited to, safety culture, effective communication, supervisor safety training, recognition, etc.

Fleet Management & Services through Caterpillar Job Site Solutions:

We leverage the power of Caterpillar and our dealers by designing innovative solutions that solve customer problems and that have a positive impact on their bottom line. We approach each site differently, striving to deliver exactly what’s needed — no more, no less.

Every solution includes a unique mix of Caterpillar and dealer capabilities using industry best products, technology, services and expertise necessary to meet the customer’s definition of success. The goal is to leave customers better off tomorrow than they are today.

Details on products and services are available at www.cat.com/safety. More information can be found in the additional document section. Pricing can be found in the pricing document section.
*
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Table 9: Warranty
Describe in detail your manufacturer warranty program, including conditions and requirements to qualify, claims procedure, and overall structure. You may upload representative samples of your warranty materials (if applicable) in the document upload section of your response in addition to responding to the questions below.

Line
Item Question Response *
46 Do your warranties cover all products, parts, and
labor?
Caterpillar has extensive warranty coverage. Please see our warranty statements attached in the warranty information documents. *
47 Do your warranties impose usage restrictions or
other limitations that adversely affect coverage?
Please see applicable warranty statements in the attached documents. * 48 Do your warranties cover the expense of
technicians’ travel time and mileage to perform
warranty repairs?
Caterpillar does not cover travel time and mileage. Dealer service territories vary considerably from state to state as do their policies about travel time and mileage during the warranty period.
*
49 Are there any geographic regions of the United
States or Canada (as applicable) for which you
cannot provide a certified technician to perform
warranty repairs? How will Sourcewell
participating entities in these regions be provided
service for warranty repair?
One of our key differentiating strengths is our ability to service equipment regardless of where it is located. Please see applicable warranty statements in the attached documents. *
50 Will you cover warranty service for items made by
other manufacturers that are part of your proposal,
or are these warranties issues typically passed on
to the original equipment manufacturer?
Warranty service for machines ordered from a Caterpillar facility are generally provided by Caterpillar and performed by Cat dealers. Some items, such as tires, are covered under their manufacturers' warranties. *
51 What are your proposed exchange and return
programs and policies?
Please see applicable warranty statements in the attached documents. * 52 Describe any service contract options for the
items included in your proposal.

We have a large variety of service contract options which can all be customized according to customer needs. Below are just two examples.

More solutions are available and we encourage members and dealers to explore all options.
1) Equipment Protection Plans (EPP): After the initial warranty period ends, members may choose to purchase additional protection plans to reduce their exposure to unplanned costs. These policies are written based on months and hours of operation. There are four standard levels of coverage:
1) Powertrain
2) Powertrain + Hydraulics
3) Powertrain + Hydraulics + Technology
4) Premier
A description of all these options is included in the attached Equipment Protection Plans document. EPP can be purchased at the same time as the machine purchase, or anytime before the standard warranty expires. 2) Customer Value Agreements (CVA's):

A member may choose to enter into an agreement with their Cat dealer to perform routine maintenance and/or repairs. These contracts are customizable based on member needs.

The selling Cat dealer can take responsibility for some or all the required service and maintenance needs to allow the agency to gain efficiency by focusing on the performance demands more than maintenance. CVA's are a useful tool to manage expenses. CVAs can be purchased at the same time as the machine purchase, or anytime after. Cat Financial also offers CVAs, which can be performed by Cat dealers in the United States, and are particularly helpful for customers who move their machine fleet to multiple locations which may have different servicing Cat dealers. *
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Table 10: Payment Terms and Financing Options
Line
Item Question Response *
53 Describe your payment terms and accepted payment
methods.

Cat dealers are independently owned businesses. As such their payment terms and accepted payment methods vary, but all will be stated on individual invoices. The most common terms are net 30. *
54 Describe any leasing or financing options available for use by educational or governmental entities.

We offer both leasing and financing options to governmental members of Sourcewell at rates lower than available to the general public.

Caterpillar has its own financing arm, Cat Financial.

Cat Financial was founded in 1981 and serves Cat customers and dealers. With over 1,900 employees, Cat Financial is active in more than 40 countries covering more than 148,000 customers worldwide.

Cat Financial offers you a complete solution for your acquisition needs:
- Equipment & Attachments
- Parts
- Service
- Rebuilds
Financial products are aligned and customized with the project and work site requirements such as operating lease, loan or finance lease.

Find more information from Cat Financial here:
https://www.catfinancial.com/en_US.html/
*
55 Describe any standard transaction documents that you propose to use in connection with an awarded contract
(order forms, terms and conditions, service level
agreements, etc.). Upload a sample of each (as
applicable) in the document upload section of your
response.

Cat dealers are independently owned businesses. As such their standard transaction documents will vary.
*
56 Do you accept the P-card procurement and payment
process? If so, is there any additional cost to Sourcewell participating entities for using this process?
Because Cat dealers will be receiving payments directly from members, accepting P-card procurement will be at their discretion.

Many dealers do accept this method without additional fees. Some have limitations on the amount that can be processed.
*
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Table 11: Pricing and Delivery
Provide detailed pricing information in the questions that follow below. Keep in mind that reasonable price and product adjustments can be made during the term of an awarded Contract as described in the RFP, the template Contract, and the Sourcewell Price and Product Change Request Form.

Line
Item Question Response *
57 Describe your pricing model (e.g., line-item discounts or product-category discounts). Provide detailed pricing data (including standard or list pricing and the Sourcewell
discounted price) on all of the items that you want
Sourcewell to consider as part of your RFP response. If applicable, provide a SKU for each item in your proposal.

Upload your pricing materials (if applicable) in the
document upload section of your response.

We offer a deep list discount off the current Caterpillar machine and work tool list prices to all Sourcewell members. We have provided base machine list pricing in the document pricing section.

Base machines must be properly configured with other mandatory and optional items from the price list before they are considered operational. For the execution of the agreement we will ask our Cat dealer and Sourcewell member to use the Caterpillar price list that is current at the time of the quote. Dealers, in consultation with the member, will configure the machine to the desired specifications and apply the stated list discount to that configured list price amount. Dealer and members should remember to factor in any expected price increases if a machine will be built to order. The pricing document, in the applicable pricing document attachment section, shows the list discount offered for each new machine.

Additionally, we are pleased to offer a list discount of 15% off all products and consulting services under Cat Safety Services. *
58 Quantify the pricing discount represented by the pricing proposal in this response. For example, if the pricing in your response represents a percentage discount from
MSRP or list, state the percentage or percentage range.

Pricing in this proposal is a percentage discount from list on current machine and work tools list prices. Our discount range varies between 10 - 26% off of the list price depending on the product family or model.
*
59 Describe any quantity or volume discounts or rebate
programs that you offer.

Our dealers are empowered to consider purchase order volume, repeat purchases, etc. They may offer members additional discounts and /or services at their discretion.
*
60 Propose a method of facilitating “sourced” products or related services, which may be referred to as “open
market” items or “nonstandard options”. For example, you may supply such items “at cost” or “at cost plus a
percentage,” or you may supply a quote for each such
request.

Sourced goods / Open Market Items are available to members from Cat dealers. The prices for these good or services will represent fair marketing value and will be determined between the member and the selling dealer. We encourage our dealers and members to use these options as it facilitates complimentary products and streamlines the procurement process. Customers and dealers are responsible for including their Sourcewell member numbers on all documentation related to these purchases. Caterpillar Inc. is not a party to these sales and is exempted from including them in quarterly reports.

For audits, inclusion of a customer's Sourcewell member number on the PO and /or invoice shall be deemed sufficient.
*
61 Identify any element of the total cost of acquisition that is NOT included in the pricing submitted with your response.

This includes all additional charges associated with a
purchase that are not directly identified as freight or shipping charges. For example, list costs for items like predelivery inspection, installation, set up, mandatory training, or initial inspection. Identify any parties that impose such costs and their relationship to the Proposer.

Machines are unique in their requirements for preparation prior to use. Some may require local final assembly due to their large size others may have locally installed options (fire suppression, beacons, auto lube systems for example). When a dealer issues a quote for a machine, any dealer costs (like pre-delivery inspection, installation, set up, training, etc.) will be itemized separately and are not subject to the Caterpillar list discount for Sourcewell members. *
62 If freight, delivery, or shipping is an additional cost to the Sourcewell participating entity, describe in detail the complete freight, shipping, and delivery program.

There is no additional cost to members who choose to pick up their machines from the Cat dealer. Dealers may charge fees for delivery to the Sourcewell member's location.
*
63 Specifically describe freight, shipping, and delivery terms or programs available for Alaska, Hawaii, Canada, or any
offshore delivery.

Just as for members in the 48 contiguous states, there is no additional cost to members who choose to pick up their machine from their Cat dealer. Dealers may charge fees for delivery to the Sourcewell members' location.
*
64 Describe any unique distribution and/or delivery methods or options offered in your proposal.

Machines are large purchases and if there are unique Sourcewell member requirements our dealers will be happy to discuss on a case by case basis.
*
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Table 12: Pricing Offered
Line
Item The Pricing Offered in this Proposal is: * Comments 65 b. the same as the Proposer typically offers to GPOs, cooperative procurement organizations, or state purchasing departments.

Caterpillar wants to provide
the governmental customer
the best list discount possible
to allow them to be good
stewards of tax-payers funds.

We want our governmental
customers to have the ability
to choose which cooperative
contract better fits their needs.

Table 13: Audit and Administrative Fee
Line
Item Question Response *
66 Specifically describe any self-audit process or program that you plan to employ to verify compliance with your proposed Contract with Sourcewell. This process includes ensuring that Sourcewell participating entities obtain the proper pricing, that the Vendor reports all sales under the Contract each quarter, and that the Vendor remits the proper administrative fee to Sourcewell. Provide sufficient detail to support your ability to report quarterly sales to Sourcewell as described in the Contract template.

We plan to continue our very robust process to ensure
reporting speed, accuracy, and contract compliance.

Caterpillar and Cat dealers have very close and trusting relationships. Cat dealers are long-established, and the current process (under contract #032119-CAT) is working well. 1) To ensure pricing accuracy, we maintain our current
Sourcewell customer discount sheet on our dealer facing pricing pages. Dealers integrate these numbers automatically in their quoting software.
2) To ensure new machines and work tool sales are
recorded properly, we use our post-sale credit system. In a nutshell, this means that we corporately support the pricing offered in this contract at a level below what's available to other customers. To receive this additional monetary support after the machine is delivered, dealers must supply the member's name, address, and member number. There is no
additional burden or cost to our dealers to use the
Sourcewell contract and this is part of the reason for their high engagement and our high reporting accuracy.
3) At month end, we gather the new machine and work tool sales data attributed to Sourcewell and aggregate it for our reporting.
4) After quarter end, we will send the quarterly sales report and administration fee payment to Sourcewell for all items that are subject to the administrative fee.
*
67 If you are awarded a contract, provide a few examples of internal metrics that will be tracked to measure whether you are having success with the contract.

We regularly track the % of sales that are sold using a cooperative contract. We will continue this practice if we are awarded a contract for RFP 020223.
*
68 Identify a proposed administrative fee that you will pay to Sourcewell for facilitating, managing, and promoting the Sourcewell Contract in the event that you are awarded a Contract. This fee is typically calculated as a percentage of Vendor’s sales under the Contract or as a per-unit fee; it is not a line-item addition to the Member’s cost of goods. (See the RFP and template Contract for additional details.)
Per amendment #1 to Contract #032119-CAT, we will be
pleased to offer an administrative fee of 0.33% of
Caterpillar's list price for each piece of new equipment and serialized work tools purchased by Sourcewell's Participating Entities. Caterpillar will pay this fee and will not ask dealers or members to pay the fee.
*
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Table 14A: Depth and Breadth of Offered Equipment Products and Services Line
Item Question Response *
69 Provide a detailed description of the
equipment, products, and services that you
are offering in your proposal.

The Cat equipment product line, consisting of more than 300 machines, sets the standard for our industry. We plan to help you meet your needs with our equipment, with our distribution and product support system, and the continual introduction and updating of products.

Caterpillar is pleased to offer a wide variety of products for Sourcewell members.

These products include some from the previously submitted RFP 011723, while excluding paving products, equipment, and services awarded on 060122-CAT. The equipment, products, and services for offered for RFP 020223 include:
- Cat Backhoe Loaders (9 models offered)
- Cat Compact Track Loader (7 models offered)
- Cat Skid Steer Loader (7 models offered)
- Cat Track Hydraulic Excavator (34 models offered)
- Cat Wheel Hydraulic Excavator (7 models offered)
- Cat Forestry (4 models offered)
- Cat Telehandlers (8 models offered)
- Cat Track Type Tractors (3 models offered)
- Cat Track Loaders (3 models offered)
- Cat Wheel Loaders (19 models offered)
- Cat Material Handlers (3 models offered)
- Cat Landfill Compactors (3 models offered)
- Product offerings by model and discount can be found in the pricing attachment within the applicable proposal pricing section.

Services and support include:
- Cat Attachments (Worktools)
- Cat Technology
- Cat Safety Services
- Cat Job Site Solutions
- Product offerings by model and discount can be found in the pricing attachment within the applicable proposal pricing section.
- Services and support brochures can be found in the additional documents section by name of offering.

For more detailed information on each of these products/offerings see the following website: https://www.cat.com/en_US.html
*
70 Within this RFP category there may be
subcategories of solutions. List subcategory
titles that best describe your products and
services.

N/A
*
Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
Table 148: Depth and 8readth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.

Line
Item Category or Type Offered * Comments
71 Wheeled, tracked, and backhoe loaders; Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
*
72 Skidsteers; Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
*
73 Mini excavators; Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
*
74 Telehandlers; Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
*
75 Soil compaction and site preparation
equipment
Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
*
Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.

Documents
Ensure your submission document(s) conforms to the following:

1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.

2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.

3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.

4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - Pricing.zip - Tuesday January 31, 2O23 14:O5:38 Financial Strength and Stability - Fin Strength and Stability.zip - Tuesday January 31, 2O23 O9:2O:54 Marketing Plan/Samples - Marketing Plan.zip - Tuesday January 31, 2O23 O9:23:O4 WMBE/MBE/SBE or Related Certificates (optional)
Warranty Information - Warranty Combined.pdf - Tuesday January 31, 2O23 O9:21:38 Standard Transaction Document Samples (optional)
Upload Additional Document - Additional Documents.zip - Wednesday February O1, 2O23 17:O5:29 DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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Addenda, Terms and Conditions

PROPOSER AFFIDAVIT AND ASSURANCE OF COMPLIANCE
I certify that I am the authorized representative of the Proposer submitting the foregoing Proposal with the legal authority to bind the Proposer to this Affidavit and Assurance of Compliance:

1. The Proposer is submitting this Proposal under its full and complete legal name, and the Proposer legally exists in good standing in the jurisdiction of its residence.

2. The Proposer warrants that the information provided in this Proposal is true, correct, and reliable for purposes of evaluation for contract award.

3. The Proposer, including any person assisting with the creation of this Proposal, has arrived at this Proposal independently and the Proposal has been created without colluding with any other person, company, or parties that have or will submit a proposal under this solicitation; and the Proposal has in all respects been created fairly without any fraud or dishonesty. The Proposer has not directly or indirectly entered into any agreement or arrangement with any person or business in an effort to influence any part of this solicitation or operations of a resulting contract; and the Proposer has not taken any action in restraint of free trade or competitiveness in connection with this solicitation. Additionally, if Proposer has worked with a consultant on the Proposal, the consultant (an individual or a company) has not assisted any other entity that has submitted or will submit a proposal for this solicitation.

4. To the best of its knowledge and belief, and except as otherwise disclosed in the Proposal, there are no relevant facts or circumstances which could give rise to an organizational conflict of interest. An organizational conflict of interest exists when a vendor has an unfair competitive advantage or the vendor’s objectivity in performing the contract is, or might be, impaired.

5. The contents of the Proposal have not been communicated by the Proposer or its employees or agents to any person not an employee or legally authorized agent of the Proposer and will not be communicated to any such persons prior to Due Date of this solicitation.

6. If awarded a contract, the Proposer will provide to Sourcewell Participating Entities the equipment, products, and services in accordance with the terms, conditions, and scope of a resulting contract.

7. The Proposer possesses, or will possess before delivering any equipment, products, or services, all applicable licenses or certifications necessary to deliver such equipment, products, or services under any resulting contract.

8. The Proposer agrees to deliver equipment, products, and services through valid contracts, purchase orders, or means that are acceptable to Sourcewell Members. Unless otherwise agreed to, the Proposer must provide only new and first-quality products and related services to Sourcewell Members under an awarded Contract.

9. The Proposer will comply with all applicable provisions of federal, state, and local laws, regulations, rules, and orders.

10. The Proposer understands that Sourcewell will reject RFP proposals that are marked "confidential" (or "nonpublic," etc.), either substantially or in their entirety. Under Minnesota Statutes Section 13.591, subdivision 4, all proposals are considered nonpublic data until the evaluation is complete and a Contract is awarded. At that point, proposals become public data. Minnesota Statutes Section 13.37 permits only certain narrowly defined data to be considered a "trade secret," and thus nonpublic data under Minnesota's Data Practices Act.

11. Proposer its employees, agents, and subcontractors are not:

1. Included on the “Specially Designated Nationals and Blocked Persons” list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury found at: https://www.treasury.gov/ofac/downloads/sdnlist.pdf;

2. Included on the government-wide exclusions lists in the United States System for Award Management found at:
https://sam.gov/SAM/; or

3. Presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

Page 391 of 711 ends

by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this solicitation.

By checking this box I acknowledge that I am bound by the terms of the Proposer’s Affidavit, have the legal authority to submit this Proposal on behalf of the Proposer, and that this electronic acknowledgment has the same legal effect, validity, and enforceability as if I had hand signed the Proposal. This signature will not be denied such legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation. - Sean Egel, Sales Consultant, Caterpillar Inc.

The Proposer declares that there is an actual or potential Conflict of Interest relating to the preparation of its submission, and/or the Proposer foresees an actual or potential Conflict of Interest in performing the contractual obligations contemplated in the bid.

Yes No
The Bidder acknowledges and agrees that the addendum/addenda below form part of the Bid Document.

Check the box in the column "I have reviewed this addendum" below to acknowledge each of the addenda.

File Name
I have reviewed the
below addendum and
attachments (if
applicable)
Pages
Addendum_4_Medium_Duty_and_Compact_Construction_Eqpt_RFP_020223 Tue January 24 2023 02:56 PM
2 Addendum_3_Medium_Duty_and_Compact_Construction_Eqpt_RFP_020223 Tue January 3 2023 11:29 AM
1 Addendum_2_Medium_Duty_and_Compact_Construction_Eqpt_RFP_020223 Tue December 27 2022 03:08 PM
1 Addendum_1_Medium_Duty_and_Compact_Construction_Eqpt_RFP_020223 Mon December 12 2022 04:08 PM
1 Bid Number: RFP 020223 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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TM-20-01077

SOURCEWELL TRADEMARK LICENSE ADDENDUM
This Addendum is by and between SOURCEWELL, 202 – 12th Street NE, PO Box 219, Staples, Minnesota 56479 (“Sourcewell”) and Caterpillar Inc., having its principal place of business at 5212 N. O’Connor Blvd., Suite 1100, Irving, TX 75039, and offices at 100 NE Adams Street, Peoria, Illinois, 61629 (“Caterpillar” or “Vendor”). Sourcewell and Caterpillar may be referred to in this Agreement as a “Party” and collectively as the “Parties.”
The Parties maintain a contractual relationship for Vendor to provide equipment, products, or services to Sourcewell’s cooperative purchasing contracts as follows:

Sourcewell Contract 020223 – CAT (Solicitation Number: 020223) Sourcewell and Vendor each own all right, title, and interest in their respective names, trademarks, service marks, related logos, and all other rights in the names, designs, likenesses and visual representations thereof (“Licensed Trademarks”), and desire to grant each other a royalty-free license to use certain Licensed Trademarks owned by the other Party under the terms and conditions set forth herein.

ARTICLE I: GRANT OF LICENSE
A. GRANT OF LICENSE. During the term of the Contract:

1. Sourcewell grants to Vendor a royalty-free, worldwide, non-exclusive right and license to use Sourcewell’s Licensed Trademarks provided to Vendor by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Vendor.

2. Vendor grants to Sourcewell a royalty-free, worldwide (except for those jurisdictions that are prohibited by applicable Anti-Corruption and International Trade Laws), non-exclusive right and license to use Vendor’s Licensed Trademarks provided to Sourcewell by Vendor in advertising and promotional materials for the purpose of marketing Vendor’s relationship with Sourcewell. “Anti-Corruption and International Trade Laws” means all statutes, regulations, rules, executive orders, supervisory requirements, directives, ordinances, circulars, opinions, interpretive letters, and official releases of or by any government, or any authority, department or agency thereof or selfregulatory organization related to bribery, fraud, corruption, or international trade.

3. The Parties agree that each is the owner of all rights, including without limitation common law rights and goodwill, in relation to their respective Licensed Trademarks, and that any goodwill derived from the use of Licensed Trademarks by the other Party shall inure to the owner of the respective Licensed Trademarks.

B. LIMITED RIGHT OF SUBLICENSE. The rights and licenses granted herein includes a limited right of each Party to grant sublicenses to its and their respective distributors, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Contract. Any sublicense granted will be subject to the terms and conditions of this Addendum. Each Party will be responsible for any breach of this Article by any of their respective sublicensees.

DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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TM-20-01077
C. USE; QUALITY CONTROL.

1. Neither Party may alter the other Party’s Licensed Trademarks from the form provided by the other Party and must comply with the other Party’s removal requests as to specific uses of its Licensed Trademarks.

2. Each Party agrees to use, and to cause its Permitted Sublicensees to use, the other Party’s Licensed Trademarks only in good faith and in a dignified manner consistent with such Party’s use of the Licensed Trademarks. Upon written notice to the breaching Party, the breaching Party or their Permitted Sublicensees have thirty (30) days of the date of the written notice to cure the breach or the license will be terminated.

3. Beyond what is permitted in this Addendum, neither Party will:
a. attempt to register, or register any trademark, service mark, symbol, logo, get-up or device which is confusingly similar to any of the other Party’s Licensed Trademarks in any jurisdiction;
b. represent that it has any rights of any nature in the Licensed Trademarks other than those enjoyed under the terms of this Agreement;
c. use the other Party’s trademarks, service marks or copyrights, translations thereof or marks similar thereto, as part of its corporate name, trade name or a d/b/a name, favicons, social media names/handles, email addresses, email extensions, or domain names without prior written approval from the other Party; or d. use the other Party’s trade names, trademarks, or service marks on any collateral business materials (e.g., business cards, letterhead, invoices, pens, notepads, fax cover sheets, etc.), unless otherwise approved in writing by the other Party.

ARTICLE II: TERM, TERMINATION, AND MISCELLANEOUS.

A. EFFECTIVE DATE. This Addendum is effective upon the date of the final signature below.

B. TERMINATION. Unless earlier terminated in accordance with this Article, this Addendum expires immediately upon the expiration or termination of the Contract.

1. Termination for Convenience. This Addendum may be terminated by either Party at any time upon ninety (90) days’ prior written notice to the other Party.

2. Termination for Breach. This Addendum may be terminated by either Party upon a breach of the terms of this Addendum by the other Party, upon written notice of breach to the breaching Party, and only if such breach is not cured within thirty (30) days of the date of the written notice.

3. Effect of Termination. Upon the termination of this Addendum for any reason, each Party will have thirty (30) days to, and require its Permitted Sublicensees to, remove all Licensed Trademarks from signage, websites, and the like bearing the other Party’s name or logo DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Item Number: 11.

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TM-20-01077
(excepting Sourcewell’s pre-printed catalog of vendors which may be used until the next printing). Vendor must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

4. Miscellaneous. The terms and conditions of this Addendum shall have no effect on the terms and conditions of any other trademark licenses signed by the Parties.

All other terms of the Contract remain in full force and effect, unless otherwise terminated.

SOURCEWELL
By: _________________
Name:

Title:

Date:

Caterpillar Inc.

By: _________________
Name:

Title:

Date:

DocuSign Envelope ID: 7FBA555D-2590-4D87-A3EF-7DEA989EAD85 DocuSign Envelope ID: FC9F9D33-278C-48EA-BCBB-11FDFA91D43C Jeremy Schwartz
Director of Operations and Procurement/CPO
5/24/2023 | 2:46 PM CDT
Patrick Kearns
5/24/2023 | 12:47 PM PDT
Vice President Sales & Marketing - North America
Item Number: 11.

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SR-24-157
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 2, 2024
Department: City Manager
Prepared by: Daniel Porras, Assistant City Manager
Subject: Resolution of Intent to Vacate a 10 feet Section of Agua Cayendo Road RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs declaring its intent to vacate a 10 feet section of Agua Cayendo Road in the City of Desert Hot Springs, which would set a time date and place for a City Council Public Hearing (proposed on September 3, 2024, 6:00 pm in the Council Chambers), and referring the matter to the Planning Commission for consideration of General Plan consistency.

BACKGROUND:

The vacation of a public street is governed by the Streets and Highways Code of the State of California. A “vacation” is “the complete or partial abandonment or termination of the public right to use a street” per the Streets and Highways Code Section 8309. A City may utilize general vacation procedures to vacate any excess right-of-way of a street not required for street or highway purposes per Streets and Highways Code Section 8320. The following steps are required in order to process a non-summary street vacation:
1) City Council adopts a Resolution of Intent to Vacate a street, which Resolution sets a hearing date for City Council consideration of the vacation.
2) The City Clerk must notice the public hearing in accordance with Section 8320 of the Streets and highways Code.
3) Pursuant to the Resolution, the City Engineer, or designee, must also post the street with the notice of vacation in accordance with the provisions of Streets and Highways Code Section 8323. 4) After the Resolution of Intent to Vacate is adopted, the Planning Commission shall make a recommendation to the City Council on whether or not the location, purpose and extent of the proposed street vacation is in conformance with the General Plan. 5) Then, the City Council must conduct the public hearing on the vacation and after the hearing may adopt a resolution vacating the street, and/or may instruct the City Clerk not to record the resolution of vacation until conditions have been met,
Item Number: 12.

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SR-24-157
6) The street vacation is complete after the City Clerk causes a certified copy of the resolution to be recorded in the Office of the Riverside County Recorder.

DISCUSSION:

City staff received an application for a street vacation from Maria Lease (property owner) for the City to vacate a 10 foot section of Agua Cayendo Road, from Eliseo Road to Hacienda Avenue, see Exhibit 1. Agua Cayendo Road is currently a public road and public Right-of-Way. Staff completed an inspection of the street and found the street to be constructed with asphalt pavement and curb on both sides (east and west). The east side of the street has 13 single family residential homes that are built, and 9 vacant lots. The west side has the Azure Palm Hot Springs resort ad some vacant land.

The street currently has 80 feet of right of way, with 40 feet from centerline to property line on each side. The purpose of this street vacation is to vacate 10 feet of right of way from the west side of the street and maintain 70 feet of right of way, with 30 feet from centerline to the property line on the west, and 40 feet of centerline to the property line on the east, see Exhibit 2. This vacation will allow for existing improvements (walls, sidewalk, curb, walkways) to remain and allow for future improvements to align with existing improvements. This will also allow for additional future improvements to be constructed within the project.

This street vacation will not vacate the entire road, and it will not reduce the existing widths of the roadway and driving lanes. Maria Lease owns all parcels that abut Agua Cayendo Road to the west.

As a result no other property owner would be directly affected by the proposed partial street vacation.

Staff recommends that the City Council adopt Resolution of Intent declaring its intent to vacate a 10 feet section of Agua Cayendo Road in the City of Desert Hot Springs, which would set a time date and place for a City Council public hearing (proposed on September 3, 2024 at 6pm in the Council Chambers), and referring the matter to the planning commission for consideration of general plan consistency.

If approved, this item will be presented to the Planning Commission for consideration of general plan consistency, and then return to the City Council for the public hearing, proper notices will be sent out to property owners within 300 feet and signs posted on-site as required by State Law.

FISCAL IMPACT:

If approved after the required public processes, the City’s road maintenance costs would be slightly reduced as a result of not being required to maintain the vacated portion of Agua Cayendo Road.

ATTACHMENTS:
1) Agua Cayendo Road
2) Agua Cayendo Vacation - Legal Description and Plot Plan 3) Draft Resolution Vacation Agua Cayendo
Item Number: 12.

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Agua Cayendo Road
Partial Vacation
Hacienda Ave
Eliseo Road
Proposed Vacation
Item Number: 12.

Page 399 of 711 ends

EXHIBIT “A”

LEGAL DESCRIPTION

AGUA CAYENDO ROAD RIGHT-OF-WAY VACATION
1 OF 3

IN THE CITY OF DESERT HOT SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, A PORTION OF LOT “F”, OF DESERT HOT SPRINGS ANNEX UNIT NO. 1, AS SHOWN ON FILE IN BOOK 27, OF MAPS, AT PAGES 22 THROUGH 24, INCLUSIVE, RECORDS OF SAID COUNTY, AND PORTIONS OF LOTS “E” AND “G”, OF MIRACLE HEIGHTS UNIT NO. 2, AS SHOWN ON FILE IN BOOK 32, OF MAPS, AT PAGES 40 THROUGH 42, INCLUSIVE, RECORDS OF SAID COUNTY, LOCATED IN SECTION 32, TOWNSHIP 2 SOUTH, RANGE 5 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE INTERSECTION OF AGUA CAYENDO ROAD AND HACIENDA DRIVE AS SHOWN ON SAID DESERT HOT SPRINGS ANNEX UNIT NO. 1; THENCE NORTH 89°58'30" WEST, ALONG THE CENTERLINE OF SAID HACIENDA DRIVE, A DISTANCE OF 60.00 FEET;
THENCE LEAVING SAID CENTERLINE OF HACIENDA DRIVE SOUTH 00°01'30" EAST, A DISTANCE OF 30.00 FEET TO THE SOUTHERLY RIGHT-OF-WAY LINE OF

SAID HACIENDA DRIVE, SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING;
THENCE SOUTH 89°58'30" EAST, A DISTANCE OF 22.36 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 30.00 FEET, SAID POINT ALSO BEING ON A LINE PARALLEL WITH AND 10.00 FEET

EASTERLY AND SOUTHEASTERLY OF THE WESTERLY AND NORTHWESTERLY

RIGHT-OF-WAY LINES OF AGUA CAYENDO ROAD, A RADIAL LINE TO SAID POINT BEARS NORTH 48°12'53" EAST;
THENCE ALONG SAID PARALLEL LINE THROUGH THE FOLLOWING SIX (6) COURSES:

1. THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 41°48'37", AN ARC DISTANCE OF 21.89 FEET;

2. THENCE SOUTH 00°01'30" WEST, A DISTANCE OF 100.00 FEET TO THE

BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 650.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 89°58'29" EAST;

3. THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 54°03'59", AN ARC DISTANCE OF 613.36 FEET; Item Number: 12.

Page 400 of 711 ends

EXHIBIT “A”

LEGAL DESCRIPTION

AGUA CAYENDO ROAD RIGHT-OF-WAY VACATION
2 OF 3

4. THENCE SOUTH 54°05'30" WEST, A DISTANCE OF 214.73 FEET TO THE

BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 30.00 FEET;

5. THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 77°40'07", AN ARC DISTANCE OF 40.67 FEET;

6. THENCE NORTH 00°03'00" WEST, A DISTANCE OF 22.36 FEET TO THE

NORTHWESTERLY RIGHT-OF-WAY LINE OF SAID AGUA CAYENDO ROAD

AND THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE
NORTHEASTERLY, HAVING A RADIUS OF 20.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 89°56'59" WEST;

THENCE ALONG THE NORTHWESTERLY AND WESTERLY RIGHT-OF-WAY LINES OF SAID AGUA CAYENDO ROAD THROUGH THE FOLLOWING FIVE (5) COURSES:

1. THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 125°51'30", AN ARC DISTANCE OF 43.93 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 35°54'31" EAST;

2. THENCE NON-TANGENT TO SAID CURVE NORTH 54°05'30" EAST, A DISTANCE OF 214.73 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 640.00 FEET;

3. THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 54°03'59", AN ARC DISTANCE OF 603.93 FEET;

4. THENCE NORTH 00°01'30" EAST, A DISTANCE OF 100.00 FEET TO THE

BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 20.00 FEET;

5. THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 90°00'00", AN ARC DISTANCE OF 31.42 FEET TO THE POINT OF BEGINNING;
SUBJECT TO EXISTING EASEMENTS, COVENANTS, RIGHTS AND RIGHTS-OFWAY OF RECORD.

CONTAINING 9,866 SQUARE FEET OR 0.226 ACRES MORE OR LESS.

Item Number: 12.

Page 401 of 711 ends

EXHIBIT “A”

LEGAL DESCRIPTION

AGUA CAYENDO ROAD RIGHT-OF-WAY VACATION
3 OF 3
AS DEPICTED ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF.

PREPARED BY OR UNDER THE DIRECTION OF:
_________________________________________
LUKE R. BEVERLY P.L.S. 8223
DATED: ______________

PRELIMINARY
Item Number: 12.

Page 402 of 711 ends

60.00'
C
2 C 3
C
5 C
1 L1
L2 L3
L4
L6 L5
(L7)
[L8]
[L9]
(
∆
=
5 4
0 4
' 0
0 "
R
=
6 8
0 .
0 0
'
=
6 4
1 .
6 8
')

( C 4 )
[
C 6
]
EXHIBIT "B"

AGUA CAYENDO ROAD

RIGHT-OF-WAY VACATION
J.N. 2809 SHEET 1 OF 2
MSA CONSULTING, INC.
> PLANNING > CIVIL ENGINEERING > LAND SURVEYING
34200 BOB HOPE DRIVE, RANCHO MIRAGE, CA 92270
760.320.9811 MSACONSULTINGINC.COM
No. 8223
P
R
O
F
E
S
S
I
O

N AL L A ND
U
S
RV
E
O
Y
R
A
N
I
RO

IF O F C AL
E
A T
T
S
LUKE R. BEVERLY AGUA CAYENDO ROAD ELISEO ROAD
{\Fromans|c0;1" = 100'}
336
337
338
339
- PROPOSED R/W VACATION
(-) INDICATES RECORD DATA

PER MIRACLE HEIGHTS UNIT
NO. 2, M.B. 32/40-42
{\LLEGEND:}
{R/W VACATION

0.226 AC.}
LOT "G"
LOT "E"

MIRACLE

HEIGHTS
UNIT NO. 2
M.B. 32/40-42
EX. R/W
LINE

E'LY R/WLINE

NW'LYR/WLINE

ORTEGA DRIVE (VACATED)
340
341
342
343
344

HACIENDA DRIVE
LOT "F"
[L1]
S 89%%D56'59" W (R)
(R)
SEE DETAIL "A"
AT SHEET 2
\A1;10'
\A1;30'
\A1;30'
\A1;10'
\A1;10'
PARCEL "A"
PARCEL MERGER NO. 22-03
PER GRANT DEED REC. 08/02/2023
DOC. NO. 2023-022483, O.R.

S'LYR/WLINE
VACATED BY RESOLUTION NO. 2019-057 REC. 12/10/2019 INST. NO. 2019-0509352, O.R.

MIRACLE HEIGHTS UNIT NO. 2M.B. 32/40-42
{T.P.O.B.
}

W'LYR/WLINE
[-] INDICATES RECORD DATA

PER DESERT HOT SPRINGS
ANNEX UNIT NO. 1,
M.B. 27/22-24
MIRACLE HEIGHTS UNIT NO. 2
M.B. 32/40-42

DESERT HOT SPRINGS
ANNEX UNIT NO. 1
M.B. 27/22-24

PRELIMINARY
Item Number: 12.

Page 403 of 711 ends

EXHIBIT "B"

AGUA CAYENDO ROAD

RIGHT-OF-WAY VACATION
J.N. 2809 SHEET 2 OF 2
MSA CONSULTING, INC.
> PLANNING > CIVIL ENGINEERING > LAND SURVEYING
34200 BOB HOPE DRIVE, RANCHO MIRAGE, CA 92270
760.320.9811 MSACONSULTINGINC.COM

CURVE DATA
NO. DELTA RADIUS LENGTH
C1 30.00'21.89'
C2 650.00' 613.36'
C3 30.00'40.67'
(C4) 20.00'43.93'
C5 640.00' 603.93'
[C6] 90%%D00'00" 20.00'31.42'

LINE DATA
NO. BEARING LENGTH
[L1] N 89%%D58'30" W 541.00'
L2 S 00%%D01'30" E 30.00'
L3 S 89%%D58'30" E 22.36'
L4 S 00%%D01'30" W 100.00'
L5 214.73'
L6 22.36'
(L7) 214.73'
[L8] 100.00'
[L9] 150.00'
DETAIL "A"
{NOT TO SCALE}
C6 C1 L9
L1
L2

60.00'
L8 L4 \A1;30' \A1;10'
(R)
(R)
L3
{R/W VACATION

0.226 AC.}
\A1;30'
{T.P.O.B.
}

HACIENDA DRIVE

AGUA CAYENDO
ROAD
Item Number: 12.

Page 404 of 711 ends

1 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS, CALIFORNIA, DECLARING ITS INTENT TO VACATE A 10 FEET SECTION OF AGUA CAYENDO ROAD FOR PUBLIC

ROADWAY PURPOSES, GENERALLY LOCATED BETWEEN ELISEO

ROAD AND HACIENDA AVENUE, AND RESERVING OF EASEMENT

FOR PUBLIC UTILITIES
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city and a political subdivision of the State of California; and
WHEREAS, California Streets and Highways Code Section 8312 provides that the legislative body of a local agency, including the City, may utilize general vacation procedures to vacate any excess right-of-way of a street not required for street or highway purposes; and
WHEREAS, the City Council of the City does hereby declare its intention to vacate a 10 feet section of Agua Cayendo Road Drive located between Eliseo Road and Hacienda Avenue, which it owns in fee (“Subject Street”), for public roadway street purposes located in accordance with the procedures contained in the Streets and Highways Code Section 8320 et seq. for non-summary vacation; and WHEREAS, if there are any public utility facilities within the Subject Street, any vacation of the Subject Street by the City would require reservation of an easement(s) and right necessary to maintain, operate, replace, remove, or renew the public utility facilities; and
WHEREAS, the vacation of a right-of-way is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15061 (b)(3) of the CEQA Guidelines because such vacations do not have the potential for causing a significant effect on the environment; and
WHEREAS, the City Council desires to initiate the procedures to possibly vacate the Subject Street.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES RESOLVE, AS FOLLOWS:

Section 1. Recitals.

That the recitals set forth above are true and correct and are incorporated herein by this reference.

Section 2. Public Hearing.

Item Number: 12.

Page 405 of 711 ends

2 That the City Council hereby sets a public hearing to be held at 6:00pm on September 3, 2024, or as soon thereafter as the matter may be heard at:

City Hall Council Chambers
11999 Palm Drive
Desert Hot springs, California 92240
Section 3. Vacation of Agua Cayendo Road.

The area to be vacated is commonly described as Agua Cayendo Road, and is further shown in the map which is attached hereto and incorporated herein, as Exhibit “A.”
Section 4. Posting and Publication of Notice.

The City Engineer, or designee, is hereby directed to post the notice of this vacation in accordance with the provisions of Streets and Highways Code Section 8323, which currently provides.

At least two weeks before the day set for the hearing, the legislative body shall post conspicuously notices of vacation along the line of the street, highway, or public service easement proposed to be vacated. The notices shall be posted not more than 300 feet apart, but at least three notices shall be posted. If the line of the street, highway, or public service easement proposed to be vacated exceeds one mile in length, the legislative body may, in lieu of posting not more than 300 feet apart, post notices at each intersection of another street or highway with the street, highway, or public service easement to be vacated and at one point approximately midway between each intersection, but at least three notices shall be posted.

The City Clerk is hereby directed to provide notice of the above hearing in accordance with the provisions of Streets and Highways Code Section 8322, which currently provides:
(a) Except as provided in subdivisions (b) and (c), notice of the hearing on the proposed vacation shall be published for at least two successive weeks prior to the hearing in a daily, semiweekly, or weekly newspaper published and circulated in the local agency conducting the proceeding and which is selected by the legislative body for that purpose or by the clerk or other officer responsible for the publication where the legislative body has not selected any newspaper for that purpose.
(b) If the proceeding is conducted by a city and there is no daily, semiweekly, or weekly newspaper published and circulated in the city, the Item Number: 12.

Page 406 of 711 ends

3 notice shall be published in some newspaper published in the county in which the city is located.
(c) Notice need not be published under this section where there is no daily, semiweekly, or weekly newspaper published and circulating in the county in which the local agency conducting the proceeding is located.

Section 5. Planning Commission Review.

The Planning Commission is hereby directed to review this street vacation and determine in a report whether the proposed street vacation is in conformance with the General Plan pursuant to Government Code Section 65402
Section 6. Compliance with CEQA.

That vacation of the Lot is exempt from CEQA pursuant to Section 15061 (b)(3) of the CEQA Guidelines because such vacation does not have the potential for causing a significant effect on the environment.

Section 7. Severability.

That the City Council declares that, should any provision, section, paragraph, sentence or word of this Resolution 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 Resolution as hereby adopted shall remain in full force and effect.

Section 8. Repeal of Conflicting Provisions.

That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

Section 9. Effective Date.

That this Resolution shall take effect upon its adoption.

Section 10. Certification.

That the City Clerk shall certify to the passage of this Resolution and enter it into the book of original resolutions.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 12.

Page 407 of 711 ends

4 PASSED AND ADOPTED THIS 2nd day of July, 2024.

CITY OF DESERT HOT SPRINGS
_______________________
Scott Matas, Mayor
ATTEST:
_________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_________________________
Tuan-Anh Vu
City Attorney
Item Number: 12.

Page 408 of 711 ends

5 EXHIBIT “A”

LEGAL DESCRIPTION OF LOT

SEE ATTACHED
Item Number: 12.

Page 409 of 711 ends

6 EXHIBIT “B”

DEPICTION OF LOT

SEE ATTACHED
Item Number: 12.

Page 410 of 711 ends

7 EXHIBIT “C”

CITY COUNCIL STAFF REPORT,

SEE ATTACHED
Item Number: 12.

Page 411 of 711 ends

Page 412 of 711 ends

SR-24-156
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 2, 2024
Department: City Manager
Prepared by: Daniel Porras, Assistant City Manager
Subject: Resolution of Intent to Vacate Alley Between Club Circle Drive and Hacienda Avenue
RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs declaring its intent to vacate an alley between Club Circle Drive and Hacienda Avenue in the City of Desert Hot Springs, which would set a time date and place for a City Council public hearing (proposed on September 3, 2024, 6:00 pm in the Council Chambers), and referring the matter to the Planning Commission for consideration of General Plan consistency.

BACKGROUND:

Item Number: 13.

Page 413 of 711 ends

SR-24-156
6) The street vacation is complete after the City Clerk causes a certified copy of the resolution to be recorded in the Office of the Riverside County Recorder.

DISCUSSION:

City staff received an application for an alley vacation from Guy Edwards (property owner) for the City to vacate a 10 foot alley located between Club Circle Drive and Hacienda Avenue, see Exhibit 1. The 10 foot alley is currently a public alley and public Right-of-Way. Staff completed an inspection of the alley and found the alley to be an alley in the back side of the properties, that is currently undeveloped and with no improvements. The alley appears to be used for utility purposes as power poles are existing in some areas. The alley is 10 feet wide and aligns as a semi-circle north of Hacienda Ave and south of Club Circle Drive. The north side of the alley has 4 existing properties and 8 vacant lots. The south side of the alley has 1 existing property and 1 vacant lot.

This alley vacation will allow for existing improvements (structure, walls, fencing) to remain and allow for future improvements to align with existing improvements. This will also allow for additional future improvements to be constructed within the properties.

Staff recommends that the City Council adopt Resolution of Intent declaring its intent to vacate the alley between Club Circle Drive and Hacienda Avenue in the City of Desert Hot Springs, which would set a time date and place for a City Council public hearing (proposed on September 3, 2024 at 6pm in the Council Chambers), and referring the matter to the planning commission for consideration of general plan consistency.

FISCAL IMPACT:

If approved after the required public processes, the City’s road maintenance costs would be slightly reduced as a result of not being required to maintain the vacated alley.

ATTACHMENTS:
1) Alley Vacation - Club Circle
2) Assessors Parcel Map
3) Draft Resolution Vacation Alley - Club Circle
Item Number: 13.

Page 414 of 711 ends

Alley Vacation
Between Club Circle Dr and Hacienda Ave
Hacienda Ave
Proposed Vacation
Club Circle Drive
Item Number: 13.

Page 415 of 711 ends

:r
u
Item Number: 13.

Page 416 of 711 ends

1 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS, CALIFORNIA, DECLARING ITS INTENT TO VACATE

AN ALLEY FOR PUBLIC ROADWAY PURPOSES, GENERALLY

LOCATED BETWEEN CLUB CIRCLE DRIVE AND HACIENDA

AVENUE, AND RESERVING OF EASEMENT FOR PUBLIC UTILITIES
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city and a political subdivision of the State of California; and
WHEREAS, California Streets and Highways Code Section 8312 provides that the legislative body of a local agency, including the City, may utilize general vacation procedures to vacate any excess right-of-way of a street not required for street or highway purposes; and
WHEREAS, the City Council of the City does hereby declare its intention to vacate a 10 foot Alley located between Club Circle Drive and Hacienda Avenue, which it owns in fee (“Subject Street”), for public roadway street purposes located in accordance with the procedures contained in the Streets and Highways Code Section 8320 et seq. for non-summary vacation; and
WHEREAS, if there are any public utility facilities within the Subject Street, any vacation of the Subject Street by the City would require reservation of an easement(s) and right necessary to maintain, operate, replace, remove, or renew the public utility facilities; and
WHEREAS, the vacation of a right-of-way is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15061 (b)(3) of the CEQA Guidelines because such vacations do not have the potential for causing a significant effect on the environment; and
WHEREAS, the City Council desires to initiate the procedures to possibly vacate the Subject Street.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES RESOLVE, AS FOLLOWS:

Section 1. Recitals.

That the recitals set forth above are true and correct and are incorporated herein by this reference.

Section 2. Public Hearing.

Item Number: 13.

Page 417 of 711 ends

2 That the City Council hereby sets a public hearing to be held at 6:00pm on September 3, 2024, or as soon thereafter as the matter may be heard at:

City Hall Council Chambers
11999 Palm Drive
Desert Hot springs, California 92240
Section 3. Vacation of Alley.

The area to be vacated is commonly described as Alley, and is further shown in the map which is attached hereto and incorporated herein, as Exhibit “A.” Section 4. Posting and Publication of Notice.

The City Engineer, or designee, is hereby directed to post the notice of this vacation in accordance with the provisions of Streets and Highways Code Section 8323, which currently provides.

Item Number: 13.

Page 418 of 711 ends

3 (c) Notice need not be published under this section where there is no daily, semiweekly, or weekly newspaper published and circulating in the county in which the local agency conducting the proceeding is located.

Section 5. Planning Commission Review.

Section 7. Severability.

Section 8. Repeal of Conflicting Provisions.

That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

Section 9. Effective Date.

That this Resolution shall take effect upon its adoption.

Section 10. Certification.

That the City Clerk shall certify to the passage of this Resolution and enter it into the book of original resolutions.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 13.

Page 419 of 711 ends

4 PASSED AND ADOPTED THIS 2nd day of July, 2024.

Page 420 of 711 ends

5 EXHIBIT “A”

LEGAL DESCRIPTION OF LOT

SEE ATTACHED
Item Number: 13.

Page 421 of 711 ends

6 EXHIBIT “B”

DEPICTION OF LOT

SEE ATTACHED
Item Number: 13.

Page 422 of 711 ends

7 EXHIBIT “C”

CITY COUNCIL STAFF REPORT,

SEE ATTACHED
Item Number: 13.

Page 423 of 711 ends

Page 424 of 711 ends

SR-24-135
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 2, 2024
Department: Police Department
Prepared by: Steven Shaw, Deputy Police Chief
Subject: Tow Franchise Services
RECOMMENDATION:

Authorize the City Manager to execute a Towing Franchise Service Agreement with Aarco Towing to exclusively provide towing service per the Towing Franchise Agreement with substantive edits to be negotiated and approved by the City Manager and upon approval as to form by the City Attorney.

These services will be provided within the city limits for the Police Department, as well as other City Departments on a as needed basis.

BACKGROUND:

The current Towing Franchise Services Agreement is set to expire and the police department is in need for a new Towing Franchise Services Agreement.

DISCUSSION:

As part of its duty, the police department tows vehicles. These vehicles may be abandon vehicles, abated vehicles, disabled vehicles left in the roadway, and vehicles involved in traffic collision, just to give a few examples. As a result of this duty the police department has the need for twenty-four-hour tow services. The Tow Franchise Agreement guarantees these services and ensures an expedited response time when services are requested.

The police department advertised the Request for Proposals (RFP) for Towing Franchise Services on the City website. One bid was submitted by Aarco Towing. A review of the bid submitted by Aarco Towing showed the bid to be complete and proper. If approved, a Towing Franchise Service Agreement will be signed by all parties. The Agreement will be for a total period of one (1) year commencing on the effective date, with annual renewal options of up to four (4) additional one-year terms.

FISCAL IMPACT:

There is no negative impact to the City General Fund for this service. Aarco Towing agrees to pay the Franchise Fee in the amount of Thirty-Five Thousand Dollars ($35,000.00) annually for each year of the agreement.

ATTACHMENTS:
1) Aarco Towing Proposal
Item Number: 14.

Page 425 of 711 ends

SR-24-135
2) Tow Services Agreement
Item Number: 14.

Page 426 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT
PROPOSER’S BACKGROUND INFORMATION
Proposer's lnforrnation
Proposer’s Contact Name: Sect[3 L246Z
Contact Title: COO 262i
MailingAddress: ’9,3:50 L/ {2[f 4220 OMgQ [69/
7L2}! D176 64
Location of Business
(ifdifferent from mailing address):

Ifpartnership, name and address of
each partner:

Ifcorporation, name and address of
directors, main of?ces, major
stockholders and associates, and names
and addresses of parent and G / subsidiary companies: I Telephone Number: ML.—
Pager Number: b..—
24 Hour Tel. Number: 2Q2'32‘2"Z3 Z5
Fax Number: 2(32’5L52“ IGI0 2
E-MailAddress: WM I
43 Item Number: 14.

Page 427 of 711 ends

Remittance Address:
(if different from mailing address):

Number of Years in Business: 9l 2
Applicable State of California License #(s): Cd * {2373”61.5 Expiration Date(s): 1/‘50- ZOLH
Proposer's Dunn and Bradstreet
‘DUNNS:NUMBER:

List of Vehicles to be Used: See
Plate Number(s): ‘
‘
i \
List of Personnel Performing Services:

California Driver’s License Number(s):

License Class:

Item Number: 14.

Page 428 of 711 ends

Aarco Towing Inc.

BriefBio
Aarco Towing has been serving the Desert Hot
springs area for over 45 years. Established in 1979.

Been located at 14350 LittleMorongo Rd ever since.

Family owned and operated with a ?eet of 8 trucks
and 11 fulltime employees. Aarco Towing offers
quick response, 24-hour towing and road service.

Courteous and professional staff who help you with
your roadside emergency needs.

We tow for AAA,USPS, CHP and R80.

Owned by Gordon and GailCody.

Managed by Sean Roby.

Item Number: 14.

Page 429 of 711 ends

Tow Truck List 2024

AARCO TOWING
Year Make Model License Plate # Class
. 2020 DODGE 4X4 WRECKER AARCOI A
. 2024 INTER 4300 FLATBED AARC02 A
. 2019 INTER 4300 FLATBED AARCO3 A
. 2019 HINO 258 FLATBED AARCO4 A
. 2022 INTER 4300 FLATBED AARCOS A
. 2023 INTER 4300 FLATBED AARCO6 A
Item Number: 14.

Page 430 of 711 ends

Tow Drivers List 2024

AARCO TOWING
Last name First name Driver’s license # Class

1. DAVID FLORES

2. BROWNJR RONALD

3. DORADO DAVID

4. ROBY NOAH

5. MUJICA JOSE

6. ROBY SEAN

7. VALENCIA RICARDO

8. IUAREZ DOMINICK
Item Number: 14.

Page 431 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT
PROPOSER’S SIGNATURE DECLARATION
The undersigned hereby offers and agrees to furnish the services in compliance with all the service level requirements, instructions, speci?cations, and any addendum contained in this RFP document and any written exceptions in the offer accepted by the City.

This Proposal is genuine, and not sham or collusive, nor made in the interest or on behalf of any person not herein named; the Proposer has not directly or indirectly induced or solicited any other proposer to put in a sham proposal, or any other person, ?rm or corporation to refrain from submitting a proposal; and the proposer has not in any manner sought by collusion to secure for themselves an advantage over any other proposer.

Each proposal must be signed on behalf of the Proposer by an of?cer authorized to bind the Proposer to the proposal. I declare under penalty of perjury under the laws of the State of Californiathat the foregoing is true and correct and I agree to the terms and conditions of the RFP. 4 £5?g? TOW/g
ompany Name Signature of Authorized Person
gammy Sew?oéz ._ Printed Name
DHS 6/} igzga C00
City State Zip Code Title
City of Desert Hot Springs License Number Date
The Proposer hereby acknowledges receipt of and agrees this submittal is based on the RFP and the following addenda. Failure to indicate receipt of addenda may result inthe proposer being rejected as non-responsive.

ADDENDUM# & DATED ‘IiE-Z ADDENDUM# C DATED ”-23-th
ADDENDUM# B DATEDLI'li"Zfi ADDENDUM# DATED
(Ifadditional addenda are issued, attach a complete listing of these addenda when submitting this proposal.)
No Proposal
In order to help us improve our internal processes and become a better customer, ifyou are not submitting a Proposal, please state the reason(s) why and return this page to the Police Department Support Services Commander.
46 Item Number: 14.

Page 432 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT
STATEMENT OF PROPOSER’S QUALIFICATIONS
STATE OFCALIFOENIA, COUNTY OF IQV‘O!51d6
I am the COO of the Proposer herein. I have read the foregoing statement and know the contents thereof; and I certify that the same is true of my own knowledge, except as to those matters which are therein stated upon my information or belief, and as to those matters I believe itto be true.

Excecuted on I’I“Z3 ”LEI at b H13 , California
(date) (place)
I declare, under penalty of perjury, that the foregoing is true and correct.

Signature 0 Proposer
Cog 46M
Title
Signature of Proposer
Title
47 Item Number: 14.

Page 433 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT
WORKERS’ COMPENSATION INSURANCECERTIFICATION
The Contractor shall execute the followingform:

I am aware of the provisions of Section 3700 of the Labor Code whichrequires every employer to be insured against liabilityfor workmen's compensation or to undertake self-insurance in accordance withthe provisions of that code, and I willcomply with such provisions before commencing the performance of the work of this Contract. 4 diar/
(Contractor)
By EM— (SI ature)
(00'; 6M
(Title)
A'lTEST:

By
(Signature)
(Title)
48 Item Number: 14.

Page 434 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT

MINIMUMWAGE STATEMENT
This contract will be awarded as a cost-savings contract under the provisions of Government Code Section 19130(a). In accordance with those provisions, the salary rate to be paid to individuals performing the requested services as described under this contract should be an amount calculated NOT to “signi?cantly undercut” the State pay rate and shall not be less than the industry rate for Riverside County. Inthe event that this salary rate does significantly undercut the State pay rate or the industry rate for Riverside County, THE PROPOSAL WILL BE REJECTED AS NON-RESPONSIVE.

A Proposer on this contract must complete the “MinimumWage Statement” below and return this sheet with his/her proposal.

MINIMUMWAGE STATEMENT
I hereby certify that the minimum wage to be paid to all individuals performiry the requested services as described under this contract willnot less than $ (é: 9—— per hour.

Signa ure of Authorized Representative
66am?—oéz
Printed Name (ca/6m
Title
4%wga TOW/$31 Company Name
I OLl/eod
Address
M5 Ci ?LMQ
City, State, Zip Code
2-25,; 375
Date Signed
49 Item Number: 14.

Page 435 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT

STATEMENT OF REFERENCES
List and fullydescribe contracts performed by your ?rmwhich demonstrate your ability to complete the work included withinthe scope ofthe speci?cations. Attach addtional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your ?rm's quali?cations.

Reference No. 1
Customer Name: C-Hp
Contact Individual: Hazing) Esgrngzs
Phone No: 5 ~ - Address: 2?22%gagiei E Ind/g 6/! 522.03 Contract Amount:

Year: 200/- ?m?m 2
Description of work done Tow/59.Im?mdg , )lfv‘e 41323g: g 95.: kljuggx Reference No. 2
Customer Name: a50
Contact Individual: \Ta A
Phone No: S! *6 0~ 3'
Address: 05 6 / 1‘5 Dr. / D e 4
Contract Amount:

Year: M /- £333,213t7; Description of work done27' Ch De y Reference No. 3
Customer Name: I
Contact Individual: [Eggy-?g 1a 5
Phone No: 707‘
Address: E / a
Contract Amount:

Year' l? Z? “ pricier/'1" Description of work done—22%
50 Item Number: 14.

Page 436 of 711 ends

Reference No. 4
Customer Name. 5/4 {260C,In
Contact Individual: 652; 223.i 2:2
Phone No: — —0
Address: léESOEl;5! 52/ [J00 £3 )mS Cf 4'22 Zé
Contract Amount:

Year: leI ~Pr¢56n?
Description of work done: ZQW Egugemmt and haul@{oxde8111,51, Reference No. 5
Customer Name: US
Contact Individual: 206+23.3232 ZZEE
Contract Amount:

Year: LQQ3~ Erag-at
Description of work done: Tow & 1 ”gas:
51 Item Number: 14.

Page 437 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT
STATEMENT OF PROPOSER’S PAST CONTRACT

DISQUALIFICATIONS
The Proposer shall state whether such Proposer, any of?cer or employee of such Proposer who has a proprietary interest in such Proposer has ever been disquali?ed, removed, or otherwise prevented from proposing on, or completing a Federal, State or Local Government Project because of a violation of law or a safety regulation; and ifso, explain the circumstances.

Ifthe Proposer has had a contract terminated for default, all such incidents must be described.

Termination for default is de?ned as notice to stop performance due to the Proposer’s nonperformance or poor performance and the issue was either not litigated or litigated and such litigation determined the Proposer to be in default. Submit full details of all termination(s) for default experienced by the Proposer including the other party’s name, address and telephone number. Present the Proposer's position on the matter. The City willevaluate the facts and may, at its sole discretion, reject the Proposer’s proposal if the facts discovered indicates the completion of a contract resulting from the RFP may be jeopardized by selection of the Proposer.

Ifno such termination for default has been experienced by the Proposer in the past ?ve years, so indicate.

1. Do you have any disquali?cation, removal, etc., as described in the above paragraph to declare?
Yes :1 No y,

2. Ifyes, explain the circumstances. Attach additional pages if necessary.

Executed on Q?gs-L [i at DES , California.
l declare, er p alty of erjury, that the foregoing is true and correct.

Signature of Authonzed Representative
Sea 6
Printed Name
T'tl
600 gm
7;...

Company Name
El-Z3—Z';Z
Date Signed
52 Item Number: 14.

Page 438 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT
PROPOSER’S STATEMENT OF SUBCONSULTANTS
Without exception, the Proposer is required to state the n e and address of each subconsultant and the portion of the work which each willperform. N A Without limiting the generality of the foregoing, any consultant making a Proposal or offer to perform the work shall set forth in the Proposal:
(a) The name and the location of the place of business of each subconsultant who willperform work: and
(b) The portion of the work which willbe done by each subconsultant.

The prime consultant shall list only one subconsultant for each portion.

The undersigned submits herewith a list of subconsultants in conformance with the foregoing:

Name Under Which Speci?c Description of
Subconsultant is License Subcontract and Portion
of
Licensed No. & Class Business Address the Work to be Done Signature(s) of Proposer Date Signature(s) of Proposer Date Title Title
53 Item Number: 14.

Page 439 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT

CERTIFICATION OF NON-DISCRIMINATIONBY CONTRACTORS
As suppliers of goods or services to the City of Desert Hot Springs, the ?rm listed certi?es that it does not discriminate in its employment with regard age, handicap, race, color, religion, sex, or national origin; that itis in compliance with all federal, state, local directives, and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal employment opportunity in employment.

We agree speci?cally:

1. To establish or observe employment policies which af?rmatively promote opportunities for minority persons at all job levels.

2. To communicate this policy to all persons concerned, including all company employees, outside recruiting services, especially those serving minority communities, and to the minority communities at large.

3. To take af?rmative steps to hire minority employees withinthe company.

Signature of Authorized Representative
WM—
Title
(00 46M
4 E5120; 0wr%¢ CompanyName
M350 4422;: @290 [24/
Address
Dis 6/61 3 “pde
City, State, Zip Code
?ag-'22
Date Signed
Please include any additional information available regarding equal opportunity employment programs now in effect withinyour company.

Item Number: 14.

Page 440 of 711 ends

CITYOF DESERT HOT SPRINGS POLICE DEPARTMENT

NON-COLLUSIONAFFIDAVIT
State of California
County of Eivg??de )ss.
?dé being ?rst duly sworn, deposes and says that he or she is of a the party making the foregoing
proposal that such proposal is not made in the in erest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; that the proposer has not directly or indirectly induced or solicited any other proposer to put in a false or sham proposal, and has not directly or indirectly colluded, conspired, connived, or agreed with any proposer or any one else to put in sham proposal, or that anyone shall refrain from proposing; that the proposer has not in any manner, directly or indirectly, sought by agreement, communicationor conference with anyone to ?x the proposal price of said proposer or of any other proposer, or to ?x any overhead, pro?t, or cost element of the proposal price, or of that of any other proposer, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the proposal are true; and, further, that said proposer has not directly or indirectly, submitted his or her proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid and willnot pay any fee to any corporation, partnership, company association, organization, proposal depository or to any member or agent thereof, to effectuate a collusive or sham proposal.” 141-25 ~Z? 0&5
(Date) (Signed at (Place)
WProposer Name M. Authorized Representativ
(Person, Firm, Corp.)
mag/amid
Addres
M
Representative s Name
D1760% 9LL30 (0&1 6%
City, State. Zip Representatives’ Title
55 Item Number: 14.

Page 441 of 711 ends

818/23.12:12PM ~ ‘ aboutblank

BUSINESSLICENSE CITYOF DESERT HOT SPRINGS
TAXCOLLECTOR’SOFFICE.CityOIDOSSNHOISpI?IgamepeImIimucupus?onnamdbebmmmosem?mmmdumslswawasm shown.havingmlsdaypawmthe‘lhxCo?edor?wsumSped?adJshmby?canSOdtoengagehmbusInesapmfes?onorocwpa?onnamedJn?wC?onDesat?-Iot swarmsmumonmedatumwmmmmmmmbmmmdmmwmmmmmm?m
Immwmmmmwmmmwdwmm.mummmnmmcnydnmmsmmmmm.mmm
mmsmaygmmmmnmmmammmwmmmmmwomdemcwmmw
mumm.-mymumhmcwdomn?msmmnm.mm.mummmmmmbm mmmmmbwmammmmwmmmdcammmmammdmm.

BUSINESSNAME: AARCOTOWINGINC DESCRIPTION: TOWING
BUSINESS LOCATION: 14350 LITTLEMORONGORD. CLASSIFICATION: ééggcgggausmess (Based °" # °f BUSINESSOWNER: GAILCODY BUSINESS TYPE: TOWINGSERVICE
OWNERNAME: GAILCODY BUSINESS LIcENSE NUMBER: BUSL-20-1048 MAILINGADDRESS: [1350”Tn-E MORONGO EFFECTIVEDATE: August a.2023 DESERT HOTSPRINGS.

CA92240 EXPIRATIONDATE: September 21.2024
aboutblank
' -
‘ 1/1 Item Number: 14.

Page 442 of 711 ends

CALIFORNIASTATETRANSPORTATIONAGENCY

DEPARTMENTOF MOTORVEHICLES
Registration Operations DivisionMS H875
PO. BOX932370 Sacramento.CA. 94232-3700
(916) 657-8153
10/17/2023

AARCO TOWING INC
14350LITTLEMORONGO ROAD
DESERT HOT SPRMGS, CA 92240
?i MOTOR CARRIER PERMIT
A Public ServiceAgency
DEPAREMENT OF MOTOR VEHICLES W“, 12/01/2023 “id 11/30/2024 Re . . 7
. . . . . From. Throu-h: gistration Operanons DlVlSlOIl P'O-‘BOX,.9,3237O Sacramento,CA. 94232-3700 m 0393495 . 17:1: The carrier named on this permit,havingmade written applicationto the DepartmentofMotorVehiclesforalpermit to operate as a motor carrier of propertyaside?ned in vehiclei'code section 34601, andhaving AARCO TOWING INC met the requirements andpaidthe appropriate fees,is granteda permit 14350 LITTLE MORONGO ROAD of the folloWingclassi?cationr DESERT HOT SPRINGS, CA 92240 ~ 7}:

For Hire
Pmt Date: 10/13/2023 Of?ce #; 154 p
' FullYear
- —Aecount#;...u.590200__~__.._. =. a
-
I Seuence #: 0122 Amt Paid: $727.00
iilIMPORTANT REMINDERS!!!

1. Your permit will expire at midnight on the 'Valid Through' date. If you do not receive a renewal notice 30 days prior to the expirationdate, please submitan original applicationand check the "Renewal" box.

Your insurance must remain valid through the term of your permitor a suspensionaction could occur. Changes to your ?eet are not requiredto be reporteduntil your renewal. ‘ Changes to your business entity may require a new CA# and applicationfor another Motor CarrierPermit.

If you decide to no longer operate as a motor carrierof property, you must submita 'Voluntary Withdrawal' form.

For changesto the address,businessname, officers, or authorizedrepresentative'sname, pleasecompletethe rNoticeof Change'form. Changesduring your renewal periodmay be submitted on your renewalapplication.

You may downloadformsfromthe Internet at www.dmv.ca.gov or receive furtherinformationby calling:(916) 657-8153.

CaliforniaRelay Telephone Service forthe Deaf or Hard of Hearing from TDD Phones: 1-800—735-2929;from Voice Phones: 1-800-735—2922
MC2100 M(REV. 01/2011) A Public Service Agency
Item Number: 14.

Page 443 of 711 ends

A _ OPID: NS

AEBRD CERTIFICATE OF LIABILITYINSURANCE
THIS CERTIFICATE IS ISSUED AS A MATTEROF INFORMATIONONLY AND CONFERS NO RIGHTSUPON THE CERTIFICATE HOLDER.THIS

CERTIFICATE DOES NOT AFFIRMATIVELYOR NEGATIVELYAMEND, EXTENDOR ALTER THE COVERAGEAFFORDED BY THE POLICIES BELOW. THIS CERTIFICATEOF INSURANCEDOES NOT CONSTITUTEA CONTRACTBETWEENTHE ISSUINGINSURER(S). AUTHORIZED REPRESENTATIVEOR PRODUCER,ANDTHECERTIFICATEHOLDER. '
IMPORTANT: Ifthe certi?cate holder is an ADDITIONALINSURED,the policy(Ies) must be endorsed. If SUBROGATIONIS WAIVED,subject to the terms and conditions of the policy. certain policies may require an endorsement. A statement on this certi?cate does not confer rights to the certificate holder In lieu of such endorsement s .

PRODUCER
R.A. Storelee Insurance Agency Rob Storelee
321 First Street Suite 201
Benicia, CA 94510
Robert A. Storelee
323%?”Nick Storelee
P.”°NE ‘ .707-745-3321
ADDREss; [email protected]
" 3". . AARCO-1
INSURERS AFFORDINGCOVERAGE NAlC#
: 707-745-3709
ID .. Aarco Towing, lnC. -AmGuard Insurance Co
Desert 1435°”we""°'°"I'°"“'-_— Hot Springs, CA 92240 INSURER 3- __ COVERAGES CERTIFICATENUMBER: REVISIONNUMBER:

THIS IS TO CERTIFYTHATTHE POLICIESOF INSURANCELISTEDBELOWHAVE BEEN ISSUED TO THE INSUREDNAMEDABOVE FOR THE POLICYPERIOD INDICATED. NO'IWITHSTANDINGANYREQUIREMENT,TERM OR CONDITIONOF ANY CONTRACTOR OTHER DOCUMENTWITHRESPECT TO WHICHTHIS CERTIFICATE MAYBE ISSUED OR MAYPERTAIN.THE INSURANCEAFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALLTHETERMS.

EXCLUSIONSANDCONDITIONSOF SUCH POLICIES. LIMITSSHOWN MAY HAVEBEENREDUCEDBYPAID CLAIMS.

INSR " ' ' '~ ' = ' POLICYEFF P TYPEOPINSURANOE M-; .I- POLICYNUMBER 535%" GENERALLIABILITY EACHOCCURRENCE 1,000,00I
I 4". o
' :V ':I'| PREMISES Ea occurrence 100.00" MEDEXP(Anyone person)

PERSONAL&ADVINJURY

GENERALAGGREGATE

PRODUCTS- COMP/OPAGG

COMBINEDSINGLELIMIT
Ea accid t K26P529770 04/260024 04IZGI2025 ‘ °"’ BODILYINJURY(Per person) BODILYINJURY(Per accident) PROPERTY DAMAGE
(PER ACCIDENT)
UMBRELLA“AB - OCCUR EACHOCCURRENCE
EXCESSLIAB I CLAIMSMADE AGGREGATE - DEDUCTIBLE - RETENTION s WORKERSCOMPENSATION I ._ _ E.L.EACHACCIDENT
Ii es.describe under
' - D SCRIPTIONOF OPERATIONSbelow E.L.DISEASE- POLICYLIMIT GARAGEKEEPRS KZGP529770 04l26l2024 04126I2025 500 Bed 250,000 ON HOOKICARGO KZGP529770 04I26I2024 04I26l2025 1,000 Bed 150,000 DESCRIPTIONOF OPERATIONSl LOCATIoNs I VEHICLES(Attach ACORD 101.Additional Remarks Schedule.ifmore space Is required) A n COMMERCIALGENERALLIABILITY 04/26/2024 0412612025
.— CLAIMS-MADEI2] OCCUR
04I26I2024 04/26/2025 5 1,000,00'-
$ 2,000.00 I s 2,000,00 "
s 1,000,00 I

I ALLOWNEDAUTOS
n SCHEDULEDAUTOS n HIREDAUTOS
n NON-OWNEDAUTOS

ANDEMPLOYERS'LIABILITY YI N

ANYPROPRIETORIPARTNERIBECUTIVE

OFFICER/MEMBER
(Mandatory In NH)
EXCLUDED? D

CERTIFICATEHOLDER CANCELLATION
DESERT

SHOULD ANYOF THEABOVEDESCRIBEDPOLICIESBE CANCELLEDBEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITHTHEPOLICYPROVISIONS.

City of Desert Hot Springs
Desert Hot Springs Police Dept
65950 Pierson Blvd AUTHORIZEDREPRESENTATIVE
Desert Hot Springs, CA 92240 W aw © 1988-2009 ACORD CORPORATION. All rights reserved.

ACORD 25 (2009I09) The ACORD name and logo are registered marks of ACORD Item Number: 14.

Page 444 of 711 ends

ATTACHMENT “A”

TOW SERVICES AGREEMENT
This Tow Services Agreement (hereinafter, “Agreement” or “AGREEMENT") is made and entered into this day of 2024 (“Effective Date”), by and between the City of Desert Hot Springs, a municipal corporation in the County of Riverside, State of California, hereinafter referred to as the “CITY” or “City,” and , a , hereinafter referred to as “CONTRACTOR.”
RECITALS:

WHEREAS, the City solicited proposals from quali?ed vehicle towing companies which included, but was not limitedto, CONTRACTOR; and
WHEREAS, based on CONTRACTOR’s quali?cations and experience, the CITY determined that CONTRACTOR is uniquely quali?ed to perform the services described in this Agreement; and
WHEREAS, on , 2024, the City Council of the City of Desert Hot Springs authorized the CITYto enter into this Agreement for vehicle towing services; and WHEREAS, this Agreement applies only to vehicles towed and/or stored at the request ofthe POLICE DEPARTMENTor its designee; and
WHEREAS, the CITY shall request vehicle towing services and storage services by CONTRACTOR.

1. DEFINITIONS:

A. The term “CITY” shall mean the City of Desert Hot Springs, State of California, and its duly authorized employees, agents, assignees, or designees.

B. The term “CONTRACTOR”shall mean tow service providers and their duly authorized employees, agents, assignees, or designees.

C. The term “AGREEMENT"shall mean the Tow Services Agreement entered into by and between the City of Desert Hot Springs and a tow service provider referred to herein as CONTRACTOR.

D. The term “POLICE DEPARTMENT” shall mean the City of Desert Hot Springs Police Department.

E. The term “CONTRACT ADMINISTRATOR”shall mean the City of Desert 1 Item Number: 14.

Page 445 of 711 ends

Hot Springs Chief of Police or his authorized designee.

The term “VEHICLECODE” shall mean the State of California Vehicle Code.

2. TERM OF AGREEMENT AND OPTION T0 RENEW:

A. The initialterm of the AGREEMENT shall be for a total period of one (1) year. CONTRACTORmay be granted up to four (4) one (1) year options to renew the AGREEMENT. A renewal option granted CONTRACTOR may be exercised by CONTRACTOR’stimely ?ling a renewal application within six (6) months ofthe expiration of the term, as may be extended, upon forms supplied by the CITY. The renewal option shall be deemed granted unless, no later than sixty (60) days from the date of ?ling the renewal application, the CITY’sCity Manager has found CONTRACTOR not in compliance with the terms of Chapter 5.32 of the CITY’sMunicipal Code, the AGREEMENT or other provision of law applicable to the towing services provided. Upon such ?ndings, the City Manager may deny the renewal option or grant it conditionally and, if denied, the franchise and all future options shall terminate.

In the event the AGREEMENT is renewed in accordance with the foregoing for any of the additional one (1) year periods, all terms, conditions, and provisions of the AGREEMENTshall remain ineffect and govern the duties, responsibilities, and liabilities of the parties hereto, subject to Section 3 of the AGREEMENT. Any and all proposed adjustments in fees, rates, and service charges must be approved by the City Council of Desert Hot Springs before CITYexercises its option to renew the AGREEMENT.

3. FEES PAYABLE TO CITY:

A. CONTRACTOR agrees to pay to CITY that amount of franchise fees in accordance withVEHICLE CODE Section 12110 which provides that “a fee in connection with the award of a franchise for towing vehicles on behalf of that public entity. . . . may not exceed the amount necessary to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program. ”
The total amount of franchise fees that the CONTRACTOR shall pay to CITY in advance during the term of the AGREEMENT is the amount of Thirty-Five Thousand Dollars ($35,000.00). In addition, for vehicles impounded pursuant to VEHICLE CODE Sections 14602.6 and 14607.6, CONTRACTOR shall pay to CITY Two Hundred Twenty-Six Dollars ($226.00) for every vehicle impounded pursuant to VEHICLE CODE 2 Item Number: 14.

Page 446 of 711 ends

Sections 14602.6 and 14607.6. This amount represents a reasonable estimate of the actual and reasonable costs incurred by CITYwith regard to vehicles impounded or forfeited pursuant to VEHICLE CODE Sections 14602.6 and 14607.6. The parties agree that such amounts are reasonable estimates. Attached hereto as Addendum “A” and incorporated herein by this reference is a summary of an estimate of the total costs incurred by CITYin connection withthe towing program and the parties hereto agree that said costs are reasonable.

C. Payment of the total amount of annual franchise fees due to CITY by CONTRACTOR for each term of the AGREEMENT shall be made quarterly in accordance with Section 5.32.180 of the CITY Municipal Code.. VWth regard to those fees paid by CONTRACTORfor the costs incurred by CITY for vehicles impounded pursuant to VEHICLECODE Sections 14602.6 and 14607.6, CONTRACTOR shall pay all fees on a monthly basis and not later than thirty (30) days after collection of the storage fees by CONTRACTOR.

D. All payments made pursuant to the AGREEMENT shall be made payable to the “City of Desert Hot Springs” and directed to the attention of the CONTRACT ADMINISTRATORand shall not be made contingent on any payments due or paid to CONTRACTOR for the actual tow and/or storage of any vehicles. VI?thregard to vehicles impounded pursuant to VEHICLE CODE Sections 14602.6 and 14607.6, the actual source of storage fee payments shall have no bearing on CONTRACTOR’s duty to pay CITY under the AGREEMENT and shall include proceeds that CONTRACTOR may receive from an auction or other sale of a forfeited vehicle. Contractor may prorate payment to CITYto re?ect 1/3 or 33% of total proceeds of sale up to Four Hundred FiftyDollars ($450.00) for vehicles impounded pursuant to Vehicle Code section 14602.6 and 14607.6 and in no event shall payment to CITYexceed Two hundred twenty-six dollars ($226.00) per vehicle.

4. RATES CHARGED BY CONTRACTOR TO VEHICLE OWNERS:

A. Rates Charged:
(1) The rates charged by CONTRACTOR to vehicle owners for tow and storage services are set forth in the “Rate Schedule” which is attached to the AGREEMENT as Addendum “B”and incorporated herein by this reference.
(2) Even when tow and storage services are speci?cally requested by CITY, CONTRACTOR acknowledges that it shall charge vehicle owners only for its tow and storage services incurred pursuant to the terms and provisions of the AGREEMENT. At no time shall CONTRACTOR hold CITY liable for any tow or storage services incurred pursuant to and 3 Item Number: 14.

Page 447 of 711 ends

5. (3)
(4)
during the term of the AGREEMENT even when such services are requested by CITY. It is speci?cally acknowledged by CONTRACTOR that the vehicle owner shall be solely responsible for such charges.

The rates set forth in the “Rate Schedule" shall apply to CONTRACTOR’s services for tow and storage for the one (1) year period of the AGREEMENTand thereafter unless othen/vise adjusted by and between CITY and CONTRACTOR as set forth in Section 3 of the AGREEMENT.

CONTRACTOR shall not make any demand upon the owner of the vehicle for a sum in excess of the rates set forth in Addendum “B”to the AGREEMENT.

B. Posting of Rate Schedules:
(1) CONTRACTOR shall post and maintain a sign or signs which have been approved by the CONTRACTADMINISTRATORin a conspicuous place or places on CONTRACTOR’s premises where owner re-claims his/her vehicle and in a location designated by the CONTRACT
ADMINISTRATORwhich gives notice of:
a. The approved “Rate Schedule” for tow and storage services under the AGREEMENT as set forth in Addendum “B” to the
AGREEMENT;
b. The method of payment(s) which are acceptable by
CONTRACTOR which include credit cards and US. currency; c. A written receipt shall be supplied by CONTRACTOR for the amount of payment received;
d. The telephone number and address of the CONTRACT
ADMINISTRATOR; and
e. The address where a vehicle owner may address his/her complaints regarding CONTRACTOR’s tow and/or storage
services.

SCOPE OF SERVICES:

A. Compliance with Law:
(1) CONTRACTOR shall have a valid City of Desert Hot Springs business license and shall, at all times, keep himself fully informed 4 Item Number: 14.

Page 448 of 711 ends

(2)
of and shall, at all times, be informed of and shall comply with all Federal, State and County laws, Municipal Code provisions, Ordinances and Regulations, and all VEHICLE CODE Sections 'which are in force or become effective during the term of the AGREEMENT which, in any manner, affect tow services or the storage of vehicles.

CONTRACTOR shall acknowledge that it is the public policy of the City that all persons be free from all forms of arbitrary discrimination, including discrimination based upon sex, marital status, race, color, religion, ancestry, national origin, physical disability, sexual orientation, and domestic partnership status and that it agrees that it willconduct all its business activities pursuant to the AGREEMENT in accordance with the City’s nondiscriminatory policy.

W3
(1)
(2)
(3)
(4)
CONTRACTOR shall provide a contract manager or foreman who can communicate effectively both in written and oral English. This person shall represent the contractor and be responsible for the performance of the work. The name of this person and an alternate(s) who shall act for the contractor when the manager is absent shall be designated in writing to the Police Department Deputy Chief at the start of the contract term. The City must be noti?ed in writing within ?ve (5) days of any change in either the primary or alternate contact person.

The contract manager or alternate shall have full authority to act for the contractor on all contract matters relating to daily operations of this contract. Any order or communication given to the manager or alternate shall be deemed as delivered to the Contractor.

Contractor personnel shall present a neat appearance and be easily recognized. This may be accomplished by wearing distinctive clothing bearing the nameof the company or by wearing appropriate badges which contain the company name, employee name and photo of employee.

Personnel assigned to this contract shall not be incompetent, disorderly, troublesome, intemperate or othen/vise objectionable.

Any employee who fails or refuses to perform the work properly and 5 Item Number: 14.

Page 449 of 711 ends

acceptably, as determined by the City’s designated representative, shall be discharged or removed from work on City jobs immediately. (5) CONTRACTOR shall retain an adequate number of trained and properly licensed personnel assigned to perform the work described in the AGREEMENT in accordance with VEHICLE CODE Sections 12520 and 12804.9.
(6) CONTRACTOR shall agree to provide a copy of the AGREEMENT to each of CONTRACTOR's employees and obtain each employee’s signature on the AGREEMENT on an Acknowledgement form as set forth below.

ACKNOWLEDGEMENT

BY SIGNING THIS ACKNOWLEDGEMENT, EMPLOYEE ACKNOWLEDGES THAT

HE OR SHE UNDERSTANDS ANDAGREES TO BE BOUND BYALL OF THE

TERMS AND PROVISIONS OF THIS AGREEMENT ANDTHAT ANYVIOLATION OF

SAID TERMS AND PROVISIONS OF THIS AGREEMENT MAYRESULT IN IMMEDIATETERMINATION OF MYEMPLOYMENT.
g“ on CA2.

Employee’s Signature
(7) CONTRACTOR shall retain all employee-executed copies of this Acknowledgement and provide the same to the CITY upon request. (8) The failure of CONTRACTOR for any reason to immediately terminate an employee who has violated the terms of the AGREEMENT shall constitute a breach of this agreement subject to section 4(J).

C. Notice to Vehicle Owners and/or Department of Justice (1) CONTRACTOR shall notify the registered or legal owner of all vehicles towed and/or stored pursuant to the AGREEMENT and in accordance with all relevant provisions set forth in the VEHICLE CODE.
(2) Ifthe registered or legal owner of a vehicle is unable to be located by CONTRACTOR, then CONTRACTOR shall notify the Department of Justice in accordance with all relevant provisions set forth in the VEHICLE CODE.

Item Number: 14.

Page 450 of 711 ends

(3) Itshall be CONTRACTOR’ssole and exclusive responsibility to notify each and every owner of vehicles towed and/or stored pursuant to the AGREEMENT ofthe costs incurred from its services and payable by the vehicle owner.

Lien Sales:
(1)
(2)
(3)
In the event a vehicle is not claimed by its owner after CONTRACTOR duly noti?es the registered or legal owner pursuant to the relevant provisions set forth in the VEHICLE CODE, CONTRACTOR shall be able to facilitate or conduct a lien sale pursuant to VEHICLE CODE Sections 22851 et seq.

Any and all lien sales performed by CONTRACTOR shall be done in strict compliance with all applicable laws.

CONTRACTOR shall indemnify, defend and hold CITY, its of?cers, agents, employees, independent contractors, commission members, representatives, and volunteers, free and harmless from any and all liability, claims, suits, costs, expenses, ?nes, judgments, settlements, charges or penalties whatever (including but not limited to reasonable attorney’s fees for counsel acceptable to CITY), regardless of the merit or outcome of the same arising out of, or in any manner connected with, any lien sale that CONTRACTOR facilitates, causes to be conducted or conducts . Towing Operations:
(1) Scope of Responsibiliy:

Itshall be CONTRACTOR’sresponsibility to perform the following at no cost to the CITY:
a. Tow and store vehicles as requested by CITY including, but not limitedto, the following;

1. Vehicles taken into custody by the POLICE
DEPARTMENT.

2. Any and all vehicles requested to be towed and/or
stored by the POLICE DEPARTMENT including CITY
owned vehicles up to two hundred (200) miles roundtrip beginning at the departure location ofthe tow truck; Item Number: 14.

Page 451 of 711 ends

3. Vehicles abandoned in public places or on public
property or private property within the jurisdiction of CITY so long as requested to be towed and/or stored
by the POLICE DEPARTMENT pursuant to their
enforcement powers of law;

4. Vehicles seized and impounded pursuant to VEHICLE
CODE Sections 14602.6 and 14607.6; and

5. Vehicles requested to be towed and/or stored pursuant to ClTY’s Vehicle Abatement Program.

Remove all debris resulting from vehicle accidents; and Perform all necessary work preliminary to towing vehicles such as removing vehicles from ditches, righting vehicles, separating entangled vehicles, disconnecting drive shafts, and other such work as shall be required to enable the towing of certain vehicles.
(2) Response Time:
a. CONTRACTOR shall respond immediately and at any and all times to requests for tow services of vehicles when such requests for tow services are made by the POLICE
DEPARTMENT.

The time period withinwhich CONTRACTOR shall respond to requests for service by the POLICE DEPARTMENT by
providing a tow vehicle at the response location shall be not greater than ?fteen (15) minutes from the time of such
requests.

Upon receiving requests for tow service by the POLICE
DEPARTMENT, CONTRACTOR shall record the time such
requests are made and the time at which a tow vehicle is dispatched and maintain such record for at least six (6) months.

Inthe event CONTRACTOR is unable to respond to a request by the POLICE DEPARTMENTwithin the ?fteen (15) minute
time period, CONTRACTOR or its dispatcher shall notify the individual requesting the tow service and inform him/her that CONTRACTORis unable to respond timely to the request and provide the reason therefor and an estimated time for arrival. 8 Item Number: 14.

Page 452 of 711 ends

IfCONTRACTOR is unable to respond within the ?fteen (15) minute time period due to conditions beyond its control, CITY shall have the right to request tow services from another tow operator. If CONTRACTOR is unable to respond within the ?fteen (15) minutes time period due to any other reason, CITY shall have the right at its sole option to suspend further requests for towing services from CONTRACTOR until such time as CONTRACTOR noti?es the CONTRACT
ADMINISTRATORthat it is able to respond timely to ClTY’s tow service requests.

In the event CONTRACTOR receives more than one (1) tow
service request from the POLICE DEPARTMENTwithin the
same time period, CONTRACTOR shall respond to the ?rst
request then respond to the second request unless the
second request involves a vehicle accident where the
disabled vehicles are interrupting the ?ow of traf?c or poses a threat to the safety of others.

If no tow operator can respond within a reasonable time due to conditions beyond their control, the City may call any available tow operator. City may suspend this Agreement during an emergency or natural disaster.
(3) Inventory:
a. A detailed written inventory of all personal property in any and all vehicles towed and/or stored and/or impounded by
CONTRACTOR shall be completed by the POLICE
DEPARTMENTor designees priorto the time oftowing and/or storing the vehicle by the CONTRACTOR. The towing
operator of CONTRACTOR shall complete and sign the
appropriate section of said inventory form. A copy of the fully completed inventory form shall be given to the towing operator employed by CONTRACTOR who shall in turn give it to
CONTRACTORwho shall retain itfor as so long as the vehicle is in CONTRACTOR’s possession and control.

Under no circumstances may a vehicle and/or personal
property located in a vehicle be released by CONTRACTOR to the vehicle owner or his/her designated representative without the express written permission from the POLICE
DEPARTMENT.

Item Number: 14.

Page 453 of 711 ends

Ifat any time an item of personal property is removed from a stored vehicle and placed in another location, CONTRACTOR shall prepare a receipt of said item, place a copy of said receipt inthe stored vehicle, and provide a copy ofsaid receipt to the POLICE DEPARTMENT.

CONTRACTOR shall indemnify, defend and hold harmless
CITY, its of?cers, agents, employees, independent
contractors, commission members, representatives, and
volunteers, free and harmless from any and all liability,claims, suits, costs, expenses, fines, judgments, settlements, charges or penalties whatever (including but not limitedto reasonable attorney’s fees for counsel acceptable to CITY), regardless of the merit or outcome of the same arising out of, or in any manner connected with any damages or loss to vehicles or loss or damage to personal property located inside the
vehicles arising or alleged to arise during CONTRACTOR’s custody and possession of said vehicles.

F. Storage Operations:
(1) Scope of Responsibility:
a. CONTRACTORshall be responsible for all vehicles and their contents stored by CONTRACTOR including, but not limited to, personal property and vehicle accessories and equipment.

CONTRACTOR shall be responsible for protecting these
items against loss or damage from ?re, theft, weather or any other causes.

CONTRACTOR shall provide insurance coverage for any
damage or loss to vehicles or personal property located inside any vehicles for the time period within which CONTRACTOR has possession of said vehicles.

Allvehicles taken into custody and stored by CONTRACTOR shall be stored without charge or cost to the CITY including those vehicles owned by CITY.

Should any vehicles towed and/or stored by CONTRACTOR
at the request of the POLICE DEPARTMENT appear
suspicious due to altered license plates or Vehicle
Identi?cation Numbers, CONTRACTOR shall immediately
upon tow or storage advise the POLICE DEPARTMENTofthe
suspicious vehicles.
10 Item Number: 14.

Page 454 of 711 ends

CONTRACTOR shall not permit any unauthorized person(s)
into the area in which vehicles, which are towed or stored pursuant to the AGREEMENT, are kept. CONTRACTOR
shall be fullyand exclusively responsible for any items missing from these stored vehicles and for any consequences
resulting from the entrance of any individualnot authorized by CONTRACTOR to enter into said storage area.

CONTRACTOR shall take all actions and precautions
necessary to protect all vehicles and their components such as their engines, trunks, and interior areas, from natural elements by closing the windows, doors, trunk lids, hoods, and, if necessary, covering the vehicle or parts thereof exposed to the weather with plastic, canvas, or other
waterproof covering.

CONTRACTOR shall park all stored and/or impounded
vehicles in such a manner so as to prevent any damage to them during the movement or the parking of other vehicles.

In the event of loss or damage to a stored vehicle, its accessories and equipment, or personal property contained in the vehicle while said vehicle is in the custody of
CONTRACTOR, CONTRACTORand not CITYshall be solely
and exclusively responsible to the registered or legal owner for any and all losses and/or damage.

Personal property contained in vehicles stored by
CONTRACTOR shall not be disposed of to defray any
charges forthe towing or storage ofsaid vehicles. Inthe event the owner of said vehicle fails to contact CONTRACTOR
within thirty (30) days after the date of notice to the vehicle owner of impound or storage in accordance with the
provisions ofthe VEHICLECODE, the vehicle, its accessories and equipment, and personal property shall be disposed of in accordance with all State, County, and Municipal regulatory requirements.

CONTRACTOR shall comply with the requirement set forth in VEHICLE CODE Section 10652 regarding the reporting of
stored vehicles inexcess of thirty (30) days to the Department of Justice.

Upon the request of the vehicle owner(s) or his/her authorized representative, CONTRACTOR shall not release the vehicle 11 Item Number: 14.

Page 455 of 711 ends

and/or the owner(s) personal property without the express written consent of the POLICE DEPARTMENT.

Pursuant to a request by the vehicle owner(s) or his/her authorized representative for release of the vehicle and/or the owner(s) personal property and upon the express written consent of such release by the POLICE DEPARTMENTor its
designee, upon proper payment therefor, CONTRACTOR
shall release the vehicle and/or the owner(s) personal
property at CONTRACTOR’s primary storage facility during normal business hours which are between the hours of 8:00 am. to 5:00 pm, Mondays through Fridays, except holidays.

Said release shall be conditioned upon the showing of proof of proper identi?cation and authority by the owner or his/her designated representative. The removal of personal property items only from a stored vehicle should be released pursuant to this provision without reference to any costs or charges pending because ofthe tow or storage ofsaid vehicle. Should the owner or his/her authorized representative request the release of the vehicle and/or personal property after normal business hours, there shall be an after-hours fee imposed by CONTRACTOR on the owner or his/her authorized
representative in the amount of One Hundred Dollars
($100.00).

With regard to any and all vehicles impounded and stored by CONTRACTOR as evidence of a crime or which are involved in a pending investigation, CONTRACTOR shall take all
reasonable steps to safeguard and protect the vehicle and all of its contents and to take all reasonable precautions required by the POLICE DEPARTMENT to avoid damage to any
evidence such as ?ngerprints or stains contained in or on any and all stored vehicles and their parts.

Vehicles taken into custody and stored by CONTRACTOR as evidence of a crime or which are involved in a pending
investigation shall be locked securely and stored in a covered area separate from all other stored vehicles and which is protected against entry by unauthorized persons.

CONTRACTOR shall be fully and exclusively responsible for any items missing from these stored vehicles and for the entrance of any individual not authorized by CONTRACTOR to enter into said storage area.
12 Item Number: 14.

Page 456 of 711 ends

(2) Storage Facilities:
a. Allvehicles impounded or taken into custody by CITYmust be stored by CONTRACTOR in areas that are enclosed by
substantial wire fences or walls that have gates or doors which look. Such fences or wall enclosures shall be not less than six (6) feet in height and shall have not less than one (1) gate or door of adequate width and height. The bottom edge of the enclosure structure shall not be more than two (2) inches above the parking surface of the enclosed area. Allfence or wall enclosures shall be maintained in good order throughout the term of the agreement. In the event said fences or walls are damaged in any way, CONTRACTOR shall repair said
fences or walls within twenty four (24) hours from the time of the occurrence of any damage to ensure proper protection of the stored vehicles.
b. The CONTRACTADMINISTRATOR or his designee reserves
the right to implement and modify any security requirements should it become necessary in order to comply with local conditions.

0. The CONTRACT ADMINISTRATOR or his designee reserves
the rightto inspect CONTRACTOR's vehicle storage facility at its sole discretion and at any time without notice to
CONTRACTOR to ensure that CONTRACTOR maintains its
facility in compliance with the requirements set forth herein. d. CONTRACTOR’sstorage facility shall comply with all zoning and other ordinance requirements of CITY.
e. CONTRACTOR shall provide a primary storage site withinthe city limits of the City of Desert Hot Springs that shall provide enough space to maintain a capacity of one hundred (100) vehicles outside on a level and paved surface.
(3) Storage Facilig Hours of Operation:
a. CONTRACTOR's storage facility shall be open and
supervised from the hours of 8:00 am. to 5:00 pm, Mondays through Fridays, except holidays, and shall have a
responsible person available on an on-call basis twenty four (24) hours per day, seven (7) days per week who is available to release vehicles or personal property to the rightful owner or the owner’s representative.
13 Item Number: 14.

Page 457 of 711 ends

Location and Maintenance of Premises:
(1)
(2)
(3)
(4)
(5)
(6)
CONTRACTOR shall maintain and provide a place of business and primary storage facility as described in (F) above within the established boundaries of CITY, for vehicles stored pursuant to the AGREEMENT.

The primary storage facility shall be located at the same location as the business address. If CONTRACTOR stores vehicles at a different location from the primary location, this additional location must be located not greater than ten (10) miles from the city limitsof the City of Desert Hot Springs and the tow operator shall furnish to the CONTRACT ADMINISTRATOR the addresses of each and
every additional storage facility. CONTRACTOR shall provide each and every location of its storage facilities in the Proposal for Tow Services Agreement priorto the award of the AGREEMENT.

In the event any vehicles are stored at a location other than the primary storage facility, CONTRACTOR shall not charge registered vehicle owner(s) or his/her authorized representative or CITYfor the additional distance traveled to and from the additional facilities.

All landscaped areas of CONTRACTOR’s premises shall be
maintained in a neat and orderly condition with the landscape in a healthy state and free of weeds and litter.

The unpaved storage space shall be kept free of litter, debris, and other materials, substances, or any automotive parts unless said parts are stored as evidence for the POLICE DEPARTMENT.

CONTRACTOR shall comply with all CITY Municipal Codes and avoid contamination of soil with gasoline, oil, grease, or any other contaminating substance as speci?ed by Federal, State, County or Municipal regulations.

All paved surface areas of CONTRACTOR’s premises shall be in good repair without broken parts, holes, potholes, or litter. Any premises used for the storage of vehicles located inthe City of Desert Hot Springs shall be landscaped according to CITY rules and regulations.

Abandoned Vehicle Abatement Program:
(1) Under the terms of the AGREEMENT, CONTRACTOR will be responsible for providing the services of a driver and a tow truck for the removal of abandoned vehicles at such time they are requested 14 Item Number: 14.

Page 458 of 711 ends

(2)
(3)
(4)
by CITY. It is anticipated that this service willbe required at least one (1) day each week but not more than two (2) days each week for a maximum of eight (8) hours per day.

CONTRACTOR shall not remove any abandoned vehicle without first being instructed to do so by an authorized representative of the POLICE DEPARTMENTor its designee.

Vehicles removed by CONTRACTOR pursuant to the CITY’s
Abandoned Vehicle Abatement Program shall be taken to a scrap yard or an auto dismantling yard and shall not thereafter be reconstructed or made operable. The payment for the salvage value of each removed abandoned vehicle shall be retained by
CONTRACTOR as total and ?nal payment for CONTRACTOR's
costs and services in connection withthe removal ofsaid vehicle and CONTRACTOR shall receive no other compensation from the sale of salvaged or abandoned vehicles.

CITY shall indemnify, defend and hold CONTRACTOR harmless from any and all liability,claims, damages or demands arising out of and in connection with CITY’sdesignation of vehicles to be towed pursuant to the Abandoned Vehicle Abatement Program or the willful misconduct of CITY, its of?cers or employees pursuant to ClTY’s designation of vehicles to be towed pursuant to the Abandoned Vehicle Abatement Program.

Delegate or Assign:
(1)
(2)
(3)
CONTRACTOR shall give full attention to the faithful performance of the terms of the AGREEMENT. CONTRACTOR shall not assign or delegate any or all of the duties and responsibilities set forth in the AGREEMENT without the express and written prior approval by the City Council.

CONTRACTOR shall not, either legally or equitably, assign any of the monies payable to CONTRACTOR or CONTRACTOR’s claims thereto under the AGREEMENT unless CONTRACTOR obtains
prior written approval from City Council.

Nothing contained in the AGREEMENT shall create any contractual relationship between any subcontractor and CITY.
15 Item Number: 14.

Page 459 of 711 ends

Termination of Agreement:
(1) Default:
a. Should CONTRACTOR fail to perform any of the material terms, conditions, duties, and/or responsibilities set forth in this AGREEMENT including, but not limited to, falling or neglecting to furnish any of the services listed in the AGREEMENT at the prices indicated and at the times and
places speci?ed, failingto make any payments speci?ed inthe AGREEMENTfor any period oftime, or failure by the Liability Insurer to provide to CITYand the POLICE DEPARTMENTa
Notice of Cancellation of any Insurance Policy required to be in effect pursuant to the AGREEMENT, CONTRACTOR shall
be considered in default and in breach of the AGREEMENT on the date of noti?cation by CITY.

Should CONTRACTOR be considered in default and in
breach of the AGREEMENT, CONTRACTOR shall have two
(2) weeks to remedy its default and breach. If, after two (2) weeks, CONTRACTORfails to remedy its default and breach, CITY or its designee may, after a duly noticed hearing held pursuant to Section 5.32.160 of the CITY Municipal Code, at its sole discretion after seven (7) days written noti?cation to CONTRACTOR terminate the AGREEMENT in its entirety or
terminate any and all items affected by such default and thereafter, whether or not the contract is terminated in whole or in part, procure services elsewhere without notice to CONTRACTOR.
(2) Termination in Best Interest of CITY:
a. CITY or its designee may terminate the AGREEMENT
pursuant to the approval of the City Council at any such time CITYor its desig nee determines that such termination is in the best interest of the CITY.

Termination pursuant to this Section shall be performed without liabilityon behalf of CITY and any refund of any fees paid would be on a prorated basis. So long as requested by CITY, CONTRACTOR shall not charge CITYfor continuing to hold vehicles and/or release vehicles in its possession pursuant to the AGREEMENT after termination of the
AGREEMENT.
16 Item Number: 14.

Page 460 of 711 ends

K.
(4)
(4)

0. Termination pursuant to this Section shall be effected after delivery to CONTRACTORof written noti?cation specifying the date such termination becomes effective. Written notice of termination shall be given at least thirty (30) days prior to the speci?ed termination date.

Temporam Suspension:
a. The City Manager may temporarily suspend this
AGREEMENTand may suspend CONTRACTORfrom further
requests for towing services without a hearing if
CONTRACTOR fails to comply with any of the terms,
conditions, regulations or requirements of this AGREEMENT or Chapter 5.32 of the CITY Municipal Code. All such
suspensions shall be subject to Section 5.32.170 of the CITY Municipal Code. The temporary suspension shall remain
effective until the decision on termination by the City Council is made or unless the suspension is earlier lifted by written notice of the City Manager.

Failure to Maintain Adeguate Records:
a. In the event CONTRACTOR fails to maintain the records required by the AGREEMENT and set forth in Section 6(L) of the AGREEMENT including, but .not limited to, all gross receipts immediately available for audit, such failure shall be cause for immediate termination of the entire AGREEMENT by CITYwithout notice.

Equipment, Materials and Services:
(1)
(2)
(3)
CONTRACTORshall either possess or be able toobtain the services or use of a Class “D”tow truck at all times during the term of this AGREEMENT.

In no case shall any tow vehicle dispatched by CONTRACTOR be rated at less than one ton capacity. CONTRACTOR shall dispatch tow vehicles of a suf?cient rated capacity in order to handle all vehicle types and sizes referenced on the “Rate Schedule” attached as Addendum “B” to the AGREEMENT. Each vehicle shall be maintained in compliance with the provisions of Section 24605, 25253, 27700 and 27907 of the VEHICLE CODE.

All equipment, materials, or services furnished under this AGREEMENT shall be in complete compliance with presently 17 Item Number: 14.

Page 461 of 711 ends

(5)
(6)
existing and enforceable Federal, State, County and local Municipal regulations, standards, laws, ordinances, and statutes in any manner affecting performance and pricing under the AGREEMENT.

All equipment, materials, or services furnished under the AGREEMENT shall be in good working order and must meet or exceed speci?cation requirements and current established noise limitations for speci?c equipment, materials, or services being furnished under the AGREEMENT.

CONTRACTOR shall arrange with the POLICE DEPARTMENTfor
the inspection of any and all new or replaced tow vehicles prior to placing said vehicles in service.

Accounting, Audits and Access and Retention of Records:
(1)
(2)
(3)
CONTRACTOR shall maintain at its primary place of business any records or all services furnished under the AGREEMENT including any books, documents, papers, invoices, or other records setting forth the description of vehicles, nature of service, and time and location of tow and/or storage service calls. Such records may be inspected at any time during normal business hours by CITY. In the event CITY requests copies of such records, CONTRACTOR shall furnish the records to CITY within ?ve (5) working days of such request.

CONTRACTOR shall also keep accurate records of all gross receipts earned as a result of the business conducted under the
AGREEMENT.

CONTRACTOR shall provide receipts to all customers and maintain all records relating to its operations including, but not limited to, receipt slips, cash register tapes, invoices or other pertinent information. All charges, fees, and receipts shall be recorded by means of cash registers that shall be equipped with devices which lock in the totals. CONTRACTOR shall read and record the totals at the beginning and end of each calendar day. Such records must be available at all times and shall be subject to inspection, review, and audit during the entire term of the AGREEMENT by the CONTRACT ADMINISTRATOR, the City Finance Director, or his/her
representative. Such audits may be conducted at the discretion of the CONTRACT ADMINISTRATOR or the Finance Director either unannounced or by appointment without the necessity of subpoena.

CONTRACTOR’s failure to maintain the records required by the 18 Item Number: 14.

Page 462 of 711 ends

(4)
(5)
(6)
(7)
(7)
AGREEMENT including, but not limited to, all gross receipts immediately available for audit, shall be cause for immediate termination of the entire AGREEMENT by CITYwithout notice. “Gross receipts" is de?ned as all revenues received from tow and related services, storage, lien sales, salvage sales of abandoned or unclaimed vehicles, plus incidental receipts earned by
CONTRACTOR as a result of business conducted under the
AGREEMENT. Allcharges shown on invoices and other records are to be explicit in detail thereby explaining the reason for the amount speci?ed therein.

At the request of the POLICE DEPARTMENT, CONTRACTORshall furnish to the POLICE DEPARTMENT, within ?ve (5) working days of such request, a written list of all vehicles that have been towed by the CONTRACTOR underthe AGREEMENT. Such listshall indicate the police case number, the date of tow, the storage location of each vehicle if applicable, dates of storage if applicable, and the vehicle make, model, license number, vehicle identification number, and the name of the owner ifdetermined.

On a monthly basis, CONTRACTORshall provide to CITY a written summary of all vehicles stored pursuant to the AGREEMENT including, but not limitedto, the police case number, the date of tow, the storage location of each vehicle, dates of storage, and the make, model, license number, vehicle identi?cation number, and the name of the owner ifdetermined.

CONTRACTOR shall, within twenty four (24) hours of receipt of complaints, submit to the POLICE DEPARTMENTwritten noti?cation of any complaints made to CONTRACTOR regarding the
performance of itstow and storage services, or concerning the rates, charges or fees, or any claims or legal actions ?led, delivered, or served upon or instituted against CONTRACTOR or any of its agents, of?cers or employees.

CONTRACTOR shall maintain all records referenced herein for at least three (3) years after the ?nal payment and all other pending matters are closed. Nothing in this requirement shall be construed to diminish, in any way, ClTY’s right to conduct an audit pursuant to this Section.
19 Item Number: 14.

Page 463 of 711 ends

Faithful Performance Bond:
(1) CONTRACTOR shall furnish, within ten (10) working days after award of the AGREEMENT, a Performance Bond in the amount of Thirty Thousand Dollars ($30,000), or equivalent security in such form as is acceptable to CITY.
(2) CONTRACTOR shall maintain the validity and enforcement of the Performance Bond or other security for the duration of the AGREEMENT. The Performance Bond shall be issued by a surety company licensed to conduct business in the State of California. (3) Any disputes arising over the performance and/or cancellation of the AGREEMENT by the CITY are appealable to the CONTRACT
ADMINISTRATORby written notice of appeal from CONTRACTOR.

Insurance Reguirements:
(1) CONTRACTOR and any subcontractor shall maintain and keep in fullforce and effect insurance including, but not limitedto, insurance required pursuant to VEHICLE CODE Section 16500.5 and the following:
a. Liabilityand Property Damage Insurance that will:

1. Protect CONTRACTOR and CITY from claims under
the Workman’s Compensation Act;

2. Protect CONTRACTOR and CITY from claims for
damages for personal injury including but not limitedto death; and

3. Protect CONTRACTOR and CITY from claims for
damages to any property belonging to CITYor privately
owned property which may arise from operations under
the AGREEMENT, whether such operations are
provided by CONTRACTOR, a subcontractor, or
anyone directly or indirectly employed by either
CONTRACTOR or sub-contractor.
(2) CONTRACTOR shall meet all insurance requirements of CITY as set forth in the “Terms for Insurance" which is attached to the AGREEMENT as Addendum “C" and incorporated herein by this reference. The insurance requirements of CITYshall include, but not be limited to, the provision of personal and property liability 20 Item Number: 14.

Page 464 of 711 ends

(3)
(4)
(5)
(6)
insurance, commercial automobile insurance, and Workman’s Compensation insurance.

All required insurance policies shall name CITY as an additional insured.

Current Certi?cates of Insurance and endorsements for any and all insurance required by CITY pursuant to the AGREEMENT shall be submitted to CITY prior to award of the AGREEMENT unless such Certi?cates are already on ?le with CITY.

The expiration dates of all insurance policies shall be provided to CITY.

Each Certi?cate of Insurance shall contain a provision that coverage afforded under the policies willnot be canceled unless CITYand the POLICE DEPARTMENTare noti?ed inwritingofsaid cancellation by insurer at least thirty (30) days prior to the effective date of cancellation of the insurance policy. Failure of Insurer to provide the required notice of cancellation to CITY and POLICE DEPARTMENT shall be considered a default of the AGREEMENT and grounds for termination of the AGREEMENT in accordance with Section 6(J)(1) of the AGREEMENT.

Hold Harmless/Indemni?cation:
(1) CONTRACTOR shall indemnify, defend, and hold CITY, its of?cers, agents, employees, assigns, independent contractors, commission members, representatives, and volunteers, free and harmless from any and all liability,claims, suits, costs, expenses, ?nes, judgments, settlements, charges or penalties, demands, damages or injuries to any property and/or persons (including but not limited to reasonable attorney’s fees for counsel acceptable to CITY and injury to CONTRACTOR’s employees, agents, and/or assigns), regardless of the merit or outcome of the same arising out of, or which are alleged to arise from or are connected with the performance of or failure to perform under this AGREEMENT, or are caused or claimed to be caused, by an act of CONTRACTOR, its of?cers, agents, assignees, or employees, including but not limited to all costs and expenses of investigation and defending against same with counsel acceptable to CITY.
21 Item Number: 14.

Page 465 of 711 ends

P. Independent Contractor:
(1)
(2)
It is understood and agreed that CONTRACTORis, and at all times shall be, and independent contractor and nothing contained herein shall be construed as making CONTRACTOR, or any individual whose compensation for services is paid by CONTRACTOR, an agent or employee of CITY, or authorizing CONTRACTORto create or assume any obligation or liabilityfor or on behalf of CITY.

As an independent contractor pursuant to the terms of the AGREEMENT, CONTRACTORshall assume all legal and ?nancial responsibility for taxes, FICA,requirement of overtime, and all other factors relating to an independent contractor, and CONTRACTOR hereby agrees to indemnify, defend, save, and hold CITY, its agents, assignees, and employees harmless from any and all loss and fees, including reasonable attorney’s fees, and damages of any kind relating to such matters.

AUTHORITYOF CITY:

A. Retention of Documents by CITY:
(1) All information, documents, plans, drawings, records, or similar materials submitted to CITY in response to the Request for Proposal or as a part of the complete AGREEMENT, are and shall remain irrevocably the property of CITY.

B. Contract Performance:
(1)
(2)
Subject to the power and authority of CITY, as provided by law and in accordance with the AGREEMENT, CITY shall in all cases determine the quantity, quality, and acceptability of the services provided under the AGREEMENT. CITYshall decide any questions which may arise relative to the ful?llment of the AGREEMENT or to the obligations of the CONTRACTORhereunder.

Should any provision of law or case law come into effect which adversely effects the ability of the CONTRACTOR to conduct business under this agreement, the CONTRACTOR shall have the right to seek an adjustment of future fees pending under the term of this agreement.
(3) The contractor’s manager shall be required to meet with City staff as often as necessary as determined by the Police Department Deputy 22 Item Number: 14.

Page 466 of 711 ends

7. 9.

Chief or designated representative to discuss performance. Should the contractor not concur with the discussion at, or the minutes of these meetings, the contractor shall so state any areas of non-concurrence in writing to the Police Chief within 10 calendar days of receipt of the event or meeting.

RELATIONSHIP OF PARTIES:

It is understood and agreed that nothing the AGREEMENTis intended, nor should be construed in any way to create or to establish the relationship of co-partners or lessor-lessee between the parties hereto. CONTRACTOR does not receive any leasehold estate or other right of possession pursuant to the AGREEMENT.

EXCUSE FOR NONPERFORMANCE OF CONTRACTOR:

A. If performance of the AGREEMENT shall be delayed or suspended and if such failure arises out of causes beyond the control of and without fault or negligence of CONTRACTOR, CONTRACTOR shall notify CITY in writing and withintwenty-four (24) hours after the delay that said performance shall be delayed or suspended.

Such causes of delay or suspension of performance by CONTRACTOR beyond CONTRACTOR’s control may include, but are not limited to: acts of God, war or terrorism; acts ofthe public enemy; acts of any governmental entity in its sovereign or contractual capacity; ?res; ?oods; epidemics; strikes; and unusually severe weather.

CITY shall ascertain the facts and extent of such failure and, if CITY determines that the failure was occasioned by excusable causes, CITYwill not claim that CONTRACTOR is in default and that the AGREEMENT has been breached.

NOTICES:

Any and all notices to be provided pursuant to the AGREEMENT shall be inwriting, and all such notices shall be delivered by personal service or by deposit in the United States mail, certi?ed or registered, return receipt requested, with postage prepaid addressed as follows:

To CITY: TO CONTRACTOR:

Police Chief, City of Desert Hot Springs TBD
65950 Pierson Blvd
Desert Hot Springs, CA 92240
23 Item Number: 14.

Page 467 of 711 ends

10. 11.

12. 13.

ENTIREAGREEMENT:

A. The AGREEMENT supersedes any and all other AGREEMENTS, either oral or written, between the CITY and CONTRACTORwith respect to the subject matter of the AGREEMENT.

B. The AGREEMENT contains all of the covenants and agreements between the parties with respect to the subject matter ofthe AGREEMENT, and each party to the 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 the AGREEMENT.

C. No agreement, statement, or promise not contained in the AGREEMENT shall be valid or binding.

D. No waiver of any term or condition'of this AGREEMENT shall be a continuing waiver thereof.

E. This AGREEMENT may be amended only in a writing signed by both parties.

ATTORNEYS’ FEES:

Inthe event of any action, arbitration or mediation suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to the AGREEMENT or as a result of any alleged breach of any provision of the 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.

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.

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. 24 Item Number: 14.

Page 468 of 711 ends

14. 15.

16. CAPTIONS AND HEADINGS:

The captions and headings contained in this Agreement are provided for identi?cation purposes only and shall not be interpreted to limit or de?ne the content of the provisions described under the respective caption or heading.

GOVERNINGLAW:

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.

REPRESENTATIONS OF PARTIES AND PERSONS EXECUTING
AGREEMENT:

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. 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. [THE REMAINDEROF THIS PAGE INTENTIONALLYLEFT BLANK]
25 Item Number: 14.

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

CITY OF DESERT HOT SPRINGS AARCO TOWING INC.

Frank Luckino, City Manager Sean Roby, COO
ATTEST:

Jerryl Soriano, City Clerk
APPROVED AS TO FORM:

Tuan-Anh Vu, City Attorney
26 Item Number: 14.

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ADDENDUM“A”

SUMMARYOF INCURRED COSTS
Facilities and Infrastructure
(1) Building- 2.5 % of operating costs of $539,764
(2) Information Systems and Communications Expense4 % of City’s Dispatch Center Contract Costs $1,892,894 Total incurred Facilities and Infrastructure costs
Materials and Supplies
(1) Total incurred forms, supplies, and postage costs
Professional Services
(1) Legal Expense for contracts, consulting and litigation — 40 hours at $250 per hour Personnel Costs — Administrative
(1) Police Chief— 10 hours @ $165.07 hr. (total comp)
(2) Commander — 60 hours @ $138.37 hr. (total comp)
(3) Comm & Records Mgr. - 450 hours @ $80.86 hr.
(4) Records Clerk — 450 hours @ $50.70 hr. (total comp) (5) Sergeant — 100 hours @ $103.64 (total comp)
(6) Support Services Mgr.—48hours @ $61.44 (total comp) (7) Mgmt. Analyst — 20 hours @ $60.57 (total comp)
(8) Police Of?cer—675 hours @ $87.58 (total comp)
Total incurred Administrative Personnel Costs -
Summary of incurred costs
(1) Facilities and Infrastructure
(2) Materials and Supplies
(3) Professional Services
(4) Personnel Costs Administrative
Total incurred costs
27 $13,494
$75,716
$89,210
§ 1,000
§ 10,000
$ 1,651
$ 8,302
$36,386
$22,815
$10,364
$ 2,949
$ 1,211
$59,119
$142,797
$ 89,210
$ 1,000
$ 10,000
$142,797
243 007
Item Number: 14.

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30 Day Impound Vehicles — AdditionalIncurred Costs
(1) Tow Hearing Expense — $ 3,500
(2) Mobile Data Computer System Expense — $100,000 per year at 33 % vehicle storage and impound related expense $33,000
(3) Incurred cost per 30 day impound per year at 161 impounded vehicles - $36,500 ($3,500 plus $33,000) divided by 161 impounded vehicles results in a cost of $226.71 per vehicle impounded for 30 days. 28 Item Number: 14.

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ADDENDUM “B”

RATE SCHEDULE FOR TOWING ANDSTORAGE

SERVICES REQUESTEDBY THE CITYOF DESERT HOT SPRINGS

POLICE DEPARTMENT
The following rate structure shall apply for all towing and storage services requested by the POLICE DEPARTMENT, except those services requested by CITY employees for CITYowned vehicles and subject to Section A (2) herein, and shall be applicable for the term of this AGREEMENT:

A. Base Towing Rate (Class A Tow Truck) $200.00 per hour (One-Hour Minimum)
(1) The base rate per tow truck shall apply to all towed passenger vehicles and trucks rated at less than ten thousand (10,000) pounds gross vehicle weight and commence when the tow truck arrives on the tow scene. This rate also applies to dif?cult removal work involving the removal of vehicles from deep ditches or ?ood control channels or separating two entangled vehicles; and (2) With respect to a request for a tow of a CITYowned vehicle, there shall be no charge to CITY for towing services at a maximum distance of two hundred (200) miles round-trip which said distance shall commence at the departure of the tow truck.

B. Heavy Dug HourlyTowing Rate:
(1) Tow Axle Categom: (Class B Tow Truck) $250.00 per hour (One-Hour Minimum)
a. The two (2) axle category shall apply to all towed vehicles with a rate capacity of ten thousand (10,000) pounds gross vehicle weight, but shall not apply to vehicles with thirty thousand (30,000) pounds or more gross vehicle weight.
(2) Three (3) Axle Category: $350.00 per hour
(Class C and D Tow Trucks) $400.00 per hour for crane recovery. a. The three (3) axle hourly rate shall apply to all towed vehicles with a rate capacity of thirty thousand (30,000) pounds gross vehicle weight or more; and
b. The hourly rate for all heavy-duty towing (two and three axles) shall all commence when the tow truck arrives on the tow scene and includes dif?cult removal work involving the removal of vehicles from deep ditches and ?ood control channels, separating two entangled vehicles, 29 Item Number: 14.

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D.
up righting overturned vehicles, and the use of special equipment and preparation prior to towing.

Charges for Related Services:
(1)
(2)
(3)
Look Out: $55.00 (iftowing is not required)
a. The standard charge for opening locked vehicles is FiftyFive Dollars ($55.00) where no towing is involved. Iftowing is involved, there shall be no additional charge for unlocking a locked vehicle.

Dolly:
a. There is no additional charge for the use of a dolly in the towing service.

After Hours Release Fee:
a. There shall be an afterhours gate fee of One Hundred Dollars ($100.00) for anyone desiring release of a vehicle at any time other than normal business hours.

Storage: (Per Day)
(1)
(2)
(3)
(4)
Automobiles $65.00 per day
(For Outside Storage)
$75.00 per day
(For Inside Storage)
Motorcycles $30.00 per day
(For Outside Storage)
$40.00 per day
(For Inside Storage)
Trucks, 1 ton 20 feet or under $80.00 per day
Trucks, over 20 feet $100.00 per day
a. The standard rate per vehicle for storage of automobiles or pick-up trucks commencing at the time of drop off at the storage facility shall be Forty Five Dollars ($45.00) per twenty-four (24) hour period or any portion thereof; and
30 Item Number: 14.

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b. Standard rates for trucks that consist of one (1) ton, two (2) axle, and are twenty (20) feet or under shall be Eighty Dollars (80.00) per twenty-four (24) hour period or any portion thereof. The standard rate for trucks that consist of three (3) axles and are over twenty (20) feet shall be One Hundred Dollars ($100.00) per unit, per twenty-four (24) period or any portion thereof.

E. AdditionalConditions:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
The above towing charges shall apply regardless of the location from which the vehicle is towed or the location of the storage area or garage where the vehicle is delivered. Such towing charges shall include the cleaning and clean-up of an accident site as may be required by the POLICE DEPARTMENT;
There shall be no additional charge for righting an overturned passenger car or light pick-up truck iftowing is involved;
There shall be no additional charge for disconnecting a drive shaft where required for towing;
There shall be no charge to CITYfor the storage of a vehicle that has been seized as evidence in a pending investigation;
There shall be no charge to CITY to tow/store City-owned vehicles or abandoned vehicles;
There shall be no charge to CITY for changing tires on CITY owned vehicles;
The service of reconnecting the drive shaft, in event such reconnecting is necessary, shall be performed without additional charge; and Should there be a dispute over the charges made for towing and/or storage of vehicles or charges for other services, said dispute shall be governed by the provisions of Section 4 of the AGREEMENT. CONTRACTOR shall not make any demand upon the owner of the vehicle for a sum in excess of the amount set forth in this Addendum.
31 Item Number: 14.

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ADDENDUM“C”
TERMS FOR INSURANCE — PUBLIC LIABILITYINSURANCE
Personal and Property LiabilityInsurance:
(1) During the entire term of the AGREEMENT, CONTRACTOR agrees to procure and maintain public liabilityinsurance at its sole expense for the following reasons:
a. To protect against loss from liabilityimposed by law for damages on account of bodily injury, including death therefrom, suffered or alleged to be suffered by any person or persons resulting directly or indirectly from any act or activities by CITY, CONTRACTOR and/or its subcontractors, or any person acting on behalf of or under the control of CITY or CONTRACTOR.

To protect against loss from liabilityimposed by law for damages to any property belonging to any person which was caused directly or indirectly by or from acts or activities of CITY, CONTRACTORand/or its subcontractors, or any person acting for or under the control or direction of CITYor CONTRACTOR; and
To protect CITYagainst incurring any legal costs or fees indefending claims for alleged loss speci?ed in Sections A(1)(a) and (b) of this Addendum and listed above.
(2) Such public liabilityand property damage insurance shall be maintained in full force and effect throughout the term of this AGREEMENT and any extension thereof in the following minimum limits:
a. Bodily Injury:

1. $ 500,000 Each Person;

2. $1,000,000 Each Occurrence; and

3. $1,000,000 Aggregate Products and Completed Operations Property Damage:

1. $ 250,000 Each Occurrence; and

2. $ 250,000 Aggregate
A combined single limitpolicy with aggregate limitsin the amount of $1,000,000 will be considered equivalent to the required minimum policy limits.
32 Item Number: 14.

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(3) The insurance coverage speci?ed in this provision shall be primary insurance and shall name CITY as an additional named insured; (4) If the operation of services pursuant to this AGREEMENT results in an increase or decrease of risk in the opinion ofthe City Manager of CITY, then CONTRACTOR agrees that minimum limits speci?ed herein in this provision shall be changed accordingly upon request by the City Manager.

Inthe event that the City Manager determines that an increase in insurance coverage is warranted, then CONTRACTOR reserves the right to appeal the City Manager’s determination to the City of Desert Hot Springs City Council withinten (10) days after the City Manager requests the increase in insurance coverage; and
(5) CONTRACTOR agrees that the provisions therein requiring the maintenance of insurance shall not be construed as in any way limitingthe extent to which CONTRACTOR may be held liable for the payment of damages to persons or property resulting from the activities of CONTRACTOR, itssubcontractors, or from any person or persons for which CONTRACTOR is otherwise responsible.
(6) Current certi?cates of insurance and endorsementsfor any and all insurance required by CITY respecting personal and QI‘OQeF?liabilim insurance pursuant to the AGREEMENTshall be submitted to CITYpriorto award of the AGREEMENT unless such certi?cates and endorsements are already on ?le with CITY.

Automobile LiabilityInsurance:
(1) CONTRACTOR shall procure and maintain, at its sole expense, throughout the term of this AGREEMENT and any extension thereof, bodily injury and property damage insurance coverage for automobile equipment including, but not limitedto, entirely owned, not owned, and hired automobiles in the following minimum limits:
a. Bodily Injury:

1. $ 500,000 Per Person

2. $1,000,000 Each Occurrence
b. Property Damage:

1. $ 250,000 Per Occurrence
c. Uninsured Motorists:

1. Subject to the State of California minimum limitsfor ?nancial responsibility.
33 Item Number: 14.

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On-Hook and Garage Keepers Legal Liabilityinsuring the
vehicles with minimum limits based upon the size of the tow truck:
a. Class A Tow Truck $ 25,000;
b. Class B Tow Truck $ 50,000;

0. Class C Tow Truck $100,000; and
d. Class D Tow Truck $100,000.

A combined single limit policy with limits in the amount of $1,000,000 will be considered equivalent to the required minimum limits; and
Allsuch insurance shall be primary insurance and shall name the CITY as an additional named insured.

Current certi?cates of insurance and endorsements for any and all insurance required by CITY respecting automobile Iiabilig insurance pursuant to the AGREEMENT shall be
submitted to CITY prior to award of the AGREEMENT unless such certi?cates and endorsements are already on ?le with CITY.
d. Worker’s Compensation:

1. CONTRACTOR shall procure and maintain, at its sole
expense, Worker’s Compensation Insurance in such amounts as willfullycomply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both CONTRACTOR and CITY against any injuries or
occupational diseases happening to any worker employed by CONTRACTOR in the course of carrying out this
AGREEMENT.
34 Item Number: 14.

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City of Desert Hot Springs Police Department
Diversity Business Statement
The City of Desert Hot Springs Police Department encourages the maximum participation by small business, Veteran- Owned small business (VOSB), Service-Disabled Veteran owned small business (SDVOSBC), HUBZone small business, Small Disadvantaged
business (SDB/DBE), and Women-Owned small businesses
(WOSB).

It is the policy of City of Desert Hot Springs Police Department, to conduct business with the above stated businesses whenever possible to the maximum extent that is feasible.

The City of Desert Hot Springs Police Department shall, within the limits of state statutes and regulations, pursue the award of a fair share of all contracts withminoritybusinesses and shall encourage and assist minority businesses in the methods of conducting business with the City of Desert Hot Springs.
35 Item Number: 14.

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SR-24-154
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 2, 2024
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Community Facilities District No. 2010-1 Levy and Collection of Special Taxes to Fund the Maintenance of the Improvements for Fiscal Year 2024-25 RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, Approving the Levy and Collection of Special Taxes within the Community Facilities District No. 2010-1 (Services) for Fiscal Year 2024-25
BACKGROUND:

The City formed the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) (“CFD 2010-1”) under and pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code §§53311-53368.3) (“Act”). CFD 2010-1 was formed to provide the following services authorized pursuant to Section 53313 of the Act (collectively, the “Services”): maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and maintenance and operation of storm drainage and flood protection facilities, including, without limitation, drainage inlets and retention basins.

CFD 2010-1 is currently comprised of the following annexations:

Annexation Land Use Category Acreage Benefit Units
Original (Hacienda Hills) Multi-Family Residential 4.43 36 Annex No. 1 (Wellness
Center) Mixed 7.97 40.63
Annex No. 3 (Dollar
General) Commercial 1.87 9.37
Annex No. 4 (Pierson
Plaza) Commercial 6.81 34.05
Item Number: 15.

Page 481 of 711 ends

SR-24-154
Annexation Land Use Category Acreage Benefit Units
Annex No 5 (Sears
Holdings) Commercial 7.21 36.05
Annex No 6 (YK Spa) Commercial 0.76 3.8
Annex No. 8
(Canndescent) Commercial 5.35 5.35
Annex No. 9 (DHS
Property Investment)
CUP 11-16
Industrial 1.07 2.14
Annex No. 11
(Clonnetics) CUP 06-15 Industrial 3.78 7.56
Annex No. 13 (MERJ)
CUP 12-16 Industrial 9.42 18.84
Annex No. 14 (Desert's
Finest) CUP 10-14 Commercial 0.33 1.65
Annex No. 15 (Bunch
Palm Trl.) CUP 23-16 Industrial 2.13 4.26
Annex No. 16 (William A.

Conner) CUP 12-14 Commercial 1.25 6.25
Annex No. 17 (Kamran
Amirianfar) CUP 07-16 Industrial 1.26 2.52
Annex No. 18 (Kamran
Amirianfar) CUP 08-16 Industrial 1.26 2.52
Annex No. 19 (Snider
Investments, LLC) CUP
02-15
Industrial 14.62 29.24
Annex No. 21 (Taco Bell)
CUP 24-16 Commercial 0.51 2.55
Annex No. 22 (Tim
Guderian) CUP 04-16 Industrial 2.52 5.04
Annex No. 23 (Luna
Ventures LLC) CUP 04-15 Commercial 18.25 91.25
Annex No. 24 (DHS
Manna LLC) CUP 15-16 Commercial 1.81 9.05
Annex No. 25 (Desert
Grow) CUP 03-17 Industrial 1.26 2.52
Annex No. 26 (Oxford
Properties LLC) CUP 03-
15 Commercial 37.43 187.15
Annex No. 27 (Coachillin)
TPM 37518 Industrial 153.43 306.86
Annex No. 28
(Marapharm DHS
California, LLC) CUP 25-
Industrial 1.12 2.24
Item Number: 15.

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SR-24-154
Annexation Land Use Category Acreage Benefit Units
16 Annex No. 29 (BlackStar
Industrial Properties LLC)
TTM37257
Industrial 28.18 56.36
Annex No. 30 (Manlin2
LLC) CUP 14-16 Commercial 9.75 48.75
Annex No. 31 (Hot
Desert Springs LLC) CUP
15-17
Industrial 9.77 19.54
Annex No. 32 (Benno
Pabst) CUP 21-14 Commercial 0.15 0.75
Annex No. 35 (Lenwood)
CUP 05-16 Industrial 1.07 2.14
Annex No. 36 (Lenwood)
CUP 06-16 Industrial 1.07 2.14
Annex No. 37 (Green
Acres) CUP 12-17 Industrial 16.06 32.12
Annex No. 39 (MSA8 LLC)
CUP 14-14 Commercial 0.6 3
Annex No. 41 (Agua
Dulce 73 LLC) Tract
32421
Single Family Residential 13.14 73
Annex No. 42 (DHS
Investment Holdings LLC)
TTM 37887
Industrial 3.14 6.28
Annex No. 43 (Adam A.

Regiaba) CUP 06-19 Commercial 0.82 4.1
Annex No. 45 (NNNDG13
LLC) DP 20-5 Commercial 0.84 4.2
Annex No. 47 (Burger
King) DP 21-5 Commercial 1.54 7.7
Annex No. 48 (Snider
Investments LLC) DP 22-4 Industrial 4.00 8.00
Pursuant to the Rate and Method of Apportionment, a copy of which is attached hereto, for each fiscal year following the fiscal year an assessor’s parcel is levied, the applicable Assigned Special Tax (as defined in the Rate and Method of Apportionment) shall increase by (i) the percentage increase in the Consumer Price Index (All Items) for Riverside - San Bernardino – Ontario since the beginning of the preceding fiscal year, or (ii) by 2.5%, whichever is greater on each subsequent July 1 for the fiscal year then commencing. The Maximum Special Tax Rates will increase by 4.26% for FY 24-25.

DISCUSSION:

Item Number: 15.

Page 483 of 711 ends

SR-24-154
Annually, the City Council determines the amount of the special tax for CFD 2010-1 that should be charged to cover expenses for the services as calculated by a mathematical formula established by Resolution No. 2010-037, adopted on July 6th, 2010. Resolution No. 2010-037 authorized and levied the special taxes within CFD 2010-1.

FISCAL IMPACT:

The 34 levied annexations included within Community Facilities District No. 2010-1 (Services) will generate a total of $382,116.08 in special taxes for Fiscal Year 24-25. Expenses and reserve collections for the Services are estimated at approximately $382,116.08.

ATTACHMENTS:
1) CFD 2010-1 Resolution Ordering Levy FY 24-25
2) CFD 2010-1 FY 24-25 Assessment Roll
3) CFD 2010-1- RMA
4) Council Properties Map CFD 2010-1
Item Number: 15.

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Resolution No. 2024-______
Date Adopted: July 2, 2024

Page 1 of 6 ends

RESOLUTION NO. 2024-______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,

ORDERING THE LEVY AND COLLECTION OF SPECIAL TAXES
WITHIN COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES), FOR FISCAL YEAR 2024-25
WHEREAS, the City Council of the City of Desert Hot Springs (“City”), California, previously initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all of which are authorized pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being found at Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (“Act”). This community facilities district shall hereinafter be referred to as the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) (the “Community Facilities District”); and WHEREAS, the City Council, as the legislative body of the Community Facilities District, is authorized under the Act to levy certain special taxes to pay for the costs of certain services (the “Special Taxes”); and
WHEREAS, Section 53340 of the Act provides that the legislative body of a community facilities district may provide, by resolution, for the levy of the special tax in the current year or future tax years at the same rate or at a lower rate than the rate provided by resolution, if the resolution is adopted and a certified list of all parcels subject to the special tax levy including the amount of the tax to be levied on each parcel for the applicable tax year, is filed by the clerk or other official designated by the legislative body with the county auditor on or before the 10th day of August of that tax year; and WHEREAS, the City Council of the City of Desert Hot Springs previously, as authorized by Section 53340 of the Act, authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council now desires to establish and levy the rate of the special tax to be collected for the Fiscal Year 2024-25 as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS AS FOLLOWS:

Section 1. Recitals
That all of the above recitals are true and correct.

Section 2. Specific Rate and Amount of Special Tax for Fiscal Year 2024-25 Determined and Established
That the specific rate and amount of the Special Taxes to be collected to pay for the costs and expenses for the Fiscal Year 2024-25 for the referenced Community Facilities District is hereby determined and established as set forth in Exhibit "A” attached hereto and incorporated by reference.

Section 3. Specific Rate and Amount of Special Tax for Fiscal Year 2024-25 Does Not Exceed Authorized Amount
That the rates as set forth in Exhibit “A” do not exceed the amount previously authorized by the City Council and further do not exceed the amount previously approved by the qualified electors of the Community Facilities District.

Item Number: 15.

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Resolution No. 2024-______
Date Adopted: July 2, 2024

Page 2 of 6 ends

Section 4. Special Tax Used to Pay for Services
That the proceeds of the Special taxes shall be used to pay, in whole or in part, the costs of financing the following services and facilities:

Maintenance and lighting of parks, parkways, streets, roads and open space.

Section 5. Special Tax to be Collected by Riverside County That the Special Taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected by the County of Riverside on behalf of the City of Desert Hot Springs, and shall be subject to the same penalties, procedure, sale, and lien in case of any delinquency for ad valorem taxes or as otherwise provided for by the City Council.

That all revenue so collected either on the Riverside County tax roll or by any other method shall be paid into the City of Desert Hot Springs treasury and credited to a special fund, which shall only be used for the Community Facilities District in the manner specified above.

Section 6. Levy of Special Tax Authorized By City Council That the City Council hereby levies the Special Taxes for the Fiscal Year 2024-25 at the rates and with respect to the parcels as set forth in Exhibit “A” attached hereto. The City Manager or his designee is hereby authorized and directed to file with the Riverside County Auditor-Controller no later than August 10, 2024, in the format and media specified by Riverside County, subject only to permitted extension by the Riverside County Auditor-Controller, a certified list of all parcels subject to the Special Tax levy including the amount of the Special Taxes to be levied on each parcel of taxable property in the Community Facilities District and annexed areas, for Fiscal Year 2024-25.

Section 7. Officers and Agents of the City of Desert Hot Springs That the officers and agents of the City of Desert Hot Springs are, and each of them hereby is, authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the levy of the Special Taxes for Fiscal Year 2024-25 as provided in this Resolution. Further, that all actions heretofore taken by the officers and agents of the City of Desert Hot Springs with respect to the levy of the Special Taxes for Fiscal Year 2024-25 are hereby approved, confirmed and ratified.

Section 8. Severability
That should any provision, section, paragraph, sentence or word of this Resolution 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 Resolution as hereby adopted shall remain in full force and effect.

Section 9. Effective Date
That this Resolution shall become effective upon the adoption of this Resolution by the City Council.

Section 10. Repeal of Conflicting Resolutions
That the City Council hereby repeals any prior resolutions which may conflict with this Resolution or similar policies.

Item Number: 15.

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Resolution No. 2024-______
Date Adopted: July 2, 2024

Page 3 of 6 ends

Section 11. Certification
That the City Clerk shall certify to the passage and adoption of this Resolution and shall cause the same to be processed in the manner required by law. [SIGNATURES FOLLOW ON THE NEXT PAGE]
Item Number: 15.

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Resolution No. 2024-______
Date Adopted: July 2, 2024

Page 4 of 6 ends

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this second day of July 2024 by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Tuan-Anh Vu, City Attorney
Item Number: 15.

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Resolution No. 2024-______
Date Adopted: July 2, 2024

Page 5 of 6 ends

EXHIBIT A
City of Desert Hot Springs
CFD 2010-1 (Services)
Preliminary 2024-25 Special Tax
(behind this page)
Item Number: 15.

Page 489 of 711 ends

Resolution No. 2024-______
Date Adopted: July 2, 2024

Page 6 of 6 ends

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on July 2, 2024, of which meeting all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11-999 Palm Drive, Desert Hot Springs, CA 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: July 2, 2024
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 15.

Page 490 of 711 ends

PIN Levy Amount PIN Levy Amount
687202 - CFD 2010-1 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
642081008 $744.62
1 $744.62
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 1 of 34

Page 491 of 711 ends

PIN Levy Amount PIN Levy Amount
687203 - CFD 2010-1 Zone 03 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
641251020 $793.88
1 $793.88
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 2 of 34

Page 492 of 711 ends

PIN Levy Amount PIN Levy Amount
681568 - CFD 2010-1 Zone 04 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
663290017 $1,593.52
663290018 $792.56
663290019 $138.38
663290024 $71.28
663290025 $259.98
5 $2,855.72
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 3 of 34

Page 493 of 711 ends

PIN Levy Amount PIN Levy Amount
681569 - CFD 2010-1 Zone 05 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
656020037 $3,760.14
1 $3,760.14
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 4 of 34

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PIN Levy Amount PIN Levy Amount
681567 - CFD 2010-1 Zone 06 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
642162017 $870.68
1 $870.68
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 5 of 34

Page 495 of 711 ends

PIN Levy Amount PIN Levy Amount
680081 - CFD 2010-1 Zone 08 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030067 $2,429.30
1 $2,429.30
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 6 of 34

Page 496 of 711 ends

PIN Levy Amount PIN Levy Amount
680082 - CFD 2010-1 Zone 09 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030062 $6,399.54
1 $6,399.54
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 7 of 34

Page 497 of 711 ends

PIN Levy Amount PIN Levy Amount
680083 - CFD 2010-1 Zone 11 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030063 $3,399.24
1 $3,399.24
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 8 of 34

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PIN Levy Amount PIN Levy Amount
680084 - CFD 2010-1 Zone 13 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665081001 $916.18
665081002 $502.36
665081003 $482.96
665081004 $519.12
665081005 $500.40
665081006 $507.70
665081007 $484.30
665081008 $354.22
665081009 $362.48
665081010 $347.02
665081011 $343.22
665081012 $360.36
665081013 $342.18
665081014 $364.06
665081015 $338.72
665081016 $789.82
665081017 $763.68
665081018 $784.96
18 $9,063.74
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 9 of 34

Page 499 of 711 ends

PIN Levy Amount PIN Levy Amount
680147 - CFD 2010-1 Zone 14 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
641101005 $1,917.86
641101006 $1,598.22
2 $3,516.08
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 10 of 34

Page 500 of 711 ends

PIN Levy Amount PIN Levy Amount
680214 - CFD 2010-1 Zone 15 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030058 $11,352.40
1 $11,352.40
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 11 of 34

Page 501 of 711 ends

PIN Levy Amount PIN Levy Amount
680215 - CFD 2010-1 Zone 16 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
660160035 $1,714.04
1 $1,714.04
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 12 of 34

Page 502 of 711 ends

PIN Levy Amount PIN Levy Amount
680148 - CFD 2010-1 Zone 17 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030017 $844.36
1 $844.36
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 13 of 34

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PIN Levy Amount PIN Levy Amount
680149 - CFD 2010-1 Zone 18 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030049 $1,393.58
1 $1,393.58
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 14 of 34

Page 504 of 711 ends

PIN Levy Amount PIN Levy Amount
680150 - CFD 2010-1 Zone 19 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
663270008 $6,685.56
663271001 $206.64
663271002 $125.18
663271003 $125.18
663271004 $125.18
663271005 $125.18
663271006 $125.18
663271007 $125.18
663271008 $125.18
663271009 $125.18
663271010 $125.18
663271011 $125.18
663271012 $123.34
663271014 $206.64
663271015 $125.18
663271016 $125.74
663271017 $125.74
663271018 $125.74
663271019 $125.44
663271020 $125.44
663271021 $125.44
663271022 $125.44
663271023 $125.44
663271024 $125.74
663271025 $125.18
663271027 $206.64
663271028 $127.04
663271029 $125.74
663271030 $125.74
663271031 $125.44
663271032 $125.44
663271033 $125.44
663271034 $125.44
663271035 $125.44
663271036 $125.44
663271037 $125.74
663271038 $123.34
37 $11,441.38
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 15 of 34

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PIN Levy Amount PIN Levy Amount
680151 - CFD 2010-1 Zone 21 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
641092049 $1,913.62
1 $1,913.62
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 16 of 34

Page 506 of 711 ends

PIN Levy Amount PIN Levy Amount
680152 - CFD 2010-1 Zone 22 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030037 $10,509.08
1 $10,509.08
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 17 of 34

Page 507 of 711 ends

PIN Levy Amount PIN Levy Amount
680153 - CFD 2010-1 Zone 23 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
663280025 $8,113.60
1 $8,113.60
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 18 of 34

Page 508 of 711 ends

PIN Levy Amount PIN Levy Amount
680154 - CFD 2010-1 Zone 24 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030072 $9,160.82
1 $9,160.82
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 19 of 34

Page 509 of 711 ends

PIN Levy Amount PIN Levy Amount
680464 - CFD 2010-1 Zone 26 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665110004 $13,145.30
1 $13,145.30
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 20 of 34

Page 510 of 711 ends

PIN Levy Amount PIN Levy Amount
680155 - CFD 2010-1 Zone 27 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
666340008 $1,436.86
666340009 $1,885.30
666340012 $1,528.38
666340013 $1,958.52
666340014 $1,967.66
666340016 $3,111.66
666340017 $1,931.06
666340018 $1,931.06
666340019 $1,931.06
666340020 $3,038.46
666340021 $2,901.18
666340022 $2,434.42
666340023 $1,766.32
666340024 $1,766.32
666340025 $2,992.70
666340026 $1,665.66
666340027 $1,619.90
666340028 $1,619.90
666340029 $3,129.98
666340030 $1,738.86
666340031 $1,729.72
666340032 $6,488.76
666340033 $1,345.34
666340034 $1,949.36
666340035 $1,894.46
666340036 $3,011.00
666340037 $5,381.36
666340038 $3,129.98
666340039 $2,919.48
666340040 $7,001.26
666340041 $2,882.86
666340042 $6,909.74
666340043 $1,683.96
666340044 $1,738.86
666340045 $1,592.44
666340046 $3,752.30
666340047 $1,784.62
666340048 $1,775.48
666340049 $1,912.76
666340050 $4,118.38
666340051 $3,075.06
666340052 $4,264.82
666340053 $4,429.56
666340058 $1,143.98
666340060 $2,306.30
666340061 $1,665.66
46 $122,242.76
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 21 of 34

Page 511 of 711 ends

PIN Levy Amount PIN Levy Amount
680156 - CFD 2010-1 Zone 29 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
666370034 $11,404.74
666370035 $6,110.06
666370036 $6,099.20
666370037 $7,023.32
4 $30,637.32
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 22 of 34

Page 512 of 711 ends

PIN Levy Amount PIN Levy Amount
680157 - CFD 2010-1 Zone 30 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
663270012 $7,825.02
1 $7,825.02
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 23 of 34

Page 513 of 711 ends

PIN Levy Amount PIN Levy Amount
680216 - CFD 2010-1 Zone 31 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
663280005 $25,877.44
1 $25,877.44
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 24 of 34

Page 514 of 711 ends

PIN Levy Amount PIN Levy Amount
680217 - CFD 2010-1 Zone 32 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
639281001 $2,143.30
1 $2,143.30
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 25 of 34

Page 515 of 711 ends

PIN Levy Amount PIN Levy Amount
680275 - CFD 2010-1 Zone 35 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030051 $4,452.16
1 $4,452.16
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 26 of 34

Page 516 of 711 ends

PIN Levy Amount PIN Levy Amount
680276 - CFD 2010-1 Zone 36 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030052 $4,452.16
1 $4,452.16
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 27 of 34

Page 517 of 711 ends

PIN Levy Amount PIN Levy Amount
680277 - CFD 2010-1 Zone 37 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665110006 $15,914.98
1 $15,914.98
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 28 of 34

Page 518 of 711 ends

PIN Levy Amount PIN Levy Amount
680465 - CFD 2010-1 Zone 39 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
641041044 $823.56
641041045 $823.56
2 $1,647.12
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 29 of 34

Page 519 of 711 ends

PIN Levy Amount PIN Levy Amount
680466 - CFD 2010-1 Zone 41 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
656470001 $288.40
656470002 $288.40
656470003 $288.40
656470004 $288.40
656470005 $288.40
656470006 $288.40
656470007 $288.40
656470008 $288.40
656470009 $288.40
656470010 $288.40
656470011 $288.40
656470012 $288.40
656470013 $288.40
656470014 $288.40
656470015 $288.40
656470016 $288.40
656470017 $288.40
656470018 $288.40
656470019 $288.40
656470020 $288.40
656470021 $288.40
656470022 $288.40
656470023 $288.40
656470024 $288.40
656470025 $288.40
656470026 $288.40
656470027 $288.40
656470028 $288.40
656470029 $288.40
656470030 $288.40
656470031 $288.40
656470032 $288.40
656470033 $288.40
656470034 $288.40
656470035 $288.40
656470036 $288.40
656470037 $288.40
656470038 $288.40
656470039 $288.40
656470040 $288.40
656470041 $288.40
656480001 $288.40
656480002 $288.40
656480003 $288.40
656480004 $288.40
656480005 $288.40
656480006 $288.40
656480007 $288.40
656480008 $288.40
656480009 $288.40
656480010 $288.40
656480014 $288.40
656480015 $288.40
656480016 $288.40
656480017 $288.40
656480018 $288.40
656480029 $288.40
656480030 $288.40
656480036 $288.40
656480037 $288.40
656480038 $288.40
656480039 $288.40
656490001 $288.40
656490002 $288.40
656490013 $288.40
656490014 $288.40
656490015 $288.40
656490016 $288.40
656490029 $288.40
656490030 $288.40
656490031 $288.40
656490032 $288.40
656490033 $288.40
73 $21,053.20
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 30 of 34

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PIN Levy Amount PIN Levy Amount
680467 - CFD 2010-1 Zone 42 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
665030064 $430.58
1 $430.58
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 31 of 34

Page 521 of 711 ends

PIN Levy Amount PIN Levy Amount
680468 - CFD 2010-1 Zone 43 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
644151010 $4,577.26
1 $4,577.26
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 32 of 34

Page 522 of 711 ends

PIN Levy Amount PIN Levy Amount
680469 - CFD 2010-1 Zone 45 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
639212019 $3,933.70
639212020 $3,496.62
639212021 $3,496.62
639212022 $3,496.62
639212023 $3,933.70
5 $18,357.26
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 33 of 34

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PIN Levy Amount PIN Levy Amount
680470 - CFD 2010-1 Zone 47 (Services)
CITY OF DESERT HOT SPRINGS CFD 2010-1
Fiscal Year 2024-25 Assessment Roll
656040052 $19,084.40
1 $19,084.40
217 $382,116.08
Parcel Count Levy Amount
CFD 2010-1
Grand Totals
City of Desert Hot Springs - CFD 2010-1 Item Number: 15. Page 34 of 34

Page 524 of 711 ends

City of Desert Hot Springs Page 1
Community Facilities District No. 2010-1 (Services)

RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

OF THE CITY OF DESERT HOT SPRINGS
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2010-1 (Services), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2010, in an amount determined by the City Council of the City of Desert Hot Springs, acting ex officio as the legislative body of CFD No. 2010-1, by applying the rates and method of apportionment set forth below. All of the real property in CFD No. 2010-1, unless exempted by law or by the provisions herein, shall be taxed for the purposes, to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax Requirement which are incurred by the City on behalf of CFD No. 2010-1 related to the determination of the amount of the levy of Special Tax, the collection of Special Tax including the expenses of collecting delinquencies, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2010-1, and costs otherwise incurred in order to carry out the authorized purposes relating to CFD No. 2010-1.
“Administrator” means the City of Desert Hot Springs City Manager of the City, or his or her designee.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below.

Item Number: 15.

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City of Desert Hot Springs Page 2
Community Facilities District No. 2010-1 (Services)
“Benefit Unit” means a single family residential lot or dwelling unit or the equivalent.

Single Family Property is assigned benefit units based on the number of Residential Units per Assessor’s Parcel with the basis being one (1) benefit unit per Residential Unit. MultiFamily Residential Property is assigned 60 percent of one benefit unit, or six-tenths (0.6) benefit units, per Residential Unit. Commercial Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Hotel Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Industrial Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.

Religious Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.
“CFD” or “CFD No. 2010-1” means the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services).
“City” has the meaning set forth in the preamble.
“Commercial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a commercial establishment which includes, but is not limited to, retail stores, clothing stores, book stores, video rental stores, drug stores, professional services (i.e., barber shops, dry cleaners), restaurants, supermarkets, hospitals, movie theaters, appliance and electronic stores, home supply stores, auto parts stores, and other businesses providing auto-related products and services. The Administrator shall make the determination if an Assessor’s Parcel is Commercial Property. “County” means the County of Riverside
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Hotel Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a structure that constitutes a place of lodging providing sleeping accommodations and related facilities for travelers. The Administrator shall make the determination if an Assessor’s Parcel is Hotel Property. “Industrial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for construction of an industrial, manufacturing, or warehousing structure. The Administrator shall make the determination if an Assessor’s Parcel is Industrial Property.

Item Number: 15.

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City of Desert Hot Springs Page 3
Community Facilities District No. 2010-1 (Services)
“Land Use Category” means any of the categories contained in Table 1 hereof to which a Parcel is assigned consistent with the land use approvals that have been received or proposed for the Parcel as of March 1 preceding the beginning of a Fiscal Year. “Maintenance Category” means any of the categories listed in Table 2 hereof to which an Assessor’s Parcel is assigned consistent with the rate per Benefit Unit for providing Services to said Assessor’s Parcel as determined by the Administrator. “Maximum Special Tax Rate(s)” means the Maximum Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below. “Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units available for rental, but not purchase, by the general public and under common management. “Religious Property” means any Assessor’s Parcel used as a place of worship or for other religious activities. The Administrator shall make the determination if an Assessor’s Parcel is Religious Property.
“Residential Unit” means, for each Fiscal Year, a building or portion thereof on an Assessor’s Parcel intended for use by one (1) family and containing but one (1) kitchen, which is designed primarily for residential occupancy including single family and multifamily dwellings. Residential Unit shall not include hotels or motels which shall be classified as Hotel Property.
“Services” means those services authorized to be funded by CFD No. 2010-1 as set forth in the documents adopted by the City Council when the CFD was formed. “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
“Special Tax(es)” means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2010-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2010-1, which are not Exempt Property.

Item Number: 15.

Page 527 of 711 ends

Desert Hot Springs City CouncilJuly 2, 2024

Desert Hot Springs City Council
July 2, 2024