CITY COUNCIL AGENDA Page 1 of 9 MARCH 17, 2026
CITY COUNCIL
AGENDA
CITY HALL COUNCIL CHAMBER
78495 Calle Tampico, La Quinta
REGULAR MEETING ON TUESDAY, MARCH 17, 2026
3:30 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION
Members of the public may listen to this meeting by tuning-in live via www.laquintaca.gov/livemeetings; past meetings are available through the video archive via www.laquintaca.gov/pastmeetings Closed captions in English and Spanish are available to all users through this video streaming service.
CALL TO ORDER
ROLL CALL: Councilmembers: Fitzpatrick, McGarrey, Peña, Sanchez, and Mayor Evans
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the City Council on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed at the end of the agenda. The City Council values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by the Brown Act [Gov. Code § 54954.2(b)].
CONFIRMATION OF AGENDA
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
CASES NAMES AND NUMBERS – MULTIPLE (listed below, all in U.S. Bankruptcy Court, District of Delaware)
CASE NAME: CASE NUMBER
SilverRock Development Company, LLC 24-11647
SilverRock Lifestyle Residences, LLC 24-11648
SilverRock Lodging, LLC 24-11650
SilverRock Luxury Residences, LLC 24-11652
SilverRock Phase I, LLC 24-11654
RGC PA 789, LLC 24-11657
City Council agendas and staff reports
are available on the City’s website at
www.LaQuintaCA.gov/PublicMeetings
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CITY COUNCIL AGENDA Page 2 of 9 MARCH 17, 2026
2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
NAME OF CASE: CONSTRUCTION LOAN SERVICES II, LLC V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (U.S. District Court, District of Delaware, CASE NO. 25-1342-CFC)
3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9;
NAME OF CASE: CITY OF LA QUINTA V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (RIVERSIDE COUNTY SUP. CT. CASE NO. CVPS2404750)
RECESS TO CLOSED SESSION
RECONVENE AT 4:00 P.M.
REPORT ON ACTION(S) TAKEN IN CLOSED SESSION
PLEDGE OF ALLEGIANCE
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the City Council on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed at the end of the agenda. The City Council values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by the Brown Act [Gov. Code § 54954.2(b)].
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS CLICK HERE to Return to Agenda
PAGE
1. ADOPT RESOLUTION TO REAFFIRM ADOPTION OF ANNUAL
ASSESSMENTS FOR COUNTY SERVICE AREA 152, AUTHORIZE RIVERSIDE
COUNTY TO CONTINUE TO LEVY ASSESSMENTS, AND INDEMNIFY AND
HOLD THE COUNTY HARMLESS FOR LEVYING ASSESSMENTS ON CITY PARCELS [RESOLUTION NO. 2026-003]
11 1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT – STATUS UPDATE
2. IRONMAN 70.3 LA QUINTA TRIATHLON – DECEMBER 7, 2025, EVENT
SUMMARY AND ECONOMIC REPORT BY EVENT OPERATIONS MANAGER MAX LITTLE
3. PROCLAMATION IN RECOGNITION OF GOVERNMENT FINANCE
PROFESSIONALS WEEK – MARCH 23 – 27, 2026
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
CITY COUNCIL AGENDA Page 3 of 9 MARCH 17, 2026
2. EXCUSE ABSENCES OF COMMISSIONER BIONDI FROM THE MARCH 9, 2026, ARTS AND COMMUNITY SERVICES COMMISSION QUARTERLY
MEETING AND COMMISSIONERS HASSETT AND HUNDT FROM THE MARCH 10, 2026, PLANNING COMMISSION MEETING
17 3. AUTHORIZE OVERNIGHT TRAVEL FOR TWO COUNCILMEMBERS TO ATTEND THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY 2026 ELECTED OFFICIALS SUMMIT IN CHULA VISTA, CALIFORNIA, APRIL 29 – MAY 1, 2026
19 4. AUTHORIZE OVERNIGHT TRAVEL FOR ONE COUNCILMEMBER TO ATTEND
THE LEAGUE OF CALIFORNIA CITIES PUBLIC SAFETY POLICY COMMITTEE MEETING IN COSTA MESA, CALIFORNIA, MARCH 27, 2026
21 5. AUTHORIZE OVERNIGHT TRAVEL FOR DESIGN AND DEVELOPMENT DEPARTMENT HUB MANAGER TO ATTEND TYLER CONNECT 2026 ANNUAL CONFERENCE IN LAS VEGAS, NEVADA, APRIL 7 – 10, 2026
23 6. ACCEPT OFF-SITE IMPROVEMENTS ASSOCIATED WITH THE OASIS RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 32201, LOCATED AT THE NORTHWEST CORNER OF AVENUE 60 AND MADISON STREET
25 7. ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED WITH THE ESTATES AT POINT HAPPY RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 31348, LOCATED SOUTH OF HIGHWAY 111 AND WEST OF WASHINGTON STREET
27 8. ACCEPT DUNE PALMS BRIDGE IMPROVEMENTS PROJECT NO. 2011-05,
LOCATED ON DUNE PALMS ROAD AT THE COACHELLA VALLEY STORM
WATER CHANNEL
31 9. APPROVE PURCHASE AND UPFITS OF 2026 CHEVROLET 2500 SILVERADO
UTILITY BED WORK TRUCK WITH A LIFTGATE FROM PARADISE
CHEVROLET CADILLAC, AND DECLARE CURRENT 2017 CHEVROLET 2500
SILVERADO UTILITY BED WORK TRUCK AS SURPLUS AND APPROVE
DISPOSAL METHOD
35 10. APPROVE PLANS, SPECIFICATIONS, ENGINEER’S ESTIMATE, AND
ADVERTISE FOR BID THE MILES AVENUE PAVEMENT REHABILITATION PROJECT NO. 2023-01
39 11. APPROVE THREE AGREEMENTS FOR CONTRACT SERVICES WITH (1) PACIFIC WEST INDUSTRIES, INC, (2) RIVCO MECHANICAL SERVICES, INC, AND (3) F.M. THOMAS AIR CONDITIONING, INC, FOR ON-CALL HEATING,
VENTILATION, AND AIR CONDITIONING MAINTENANCE, REPAIR, AND
REPLACEMENT
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CITY COUNCIL AGENDA Page 4 of 9 MARCH 17, 2026
12. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES
WITH HR GREEN PACIFIC FOR ON-CALL PUBLIC WORKS DEVELOPMENT
PLAN CHECK SERVICES
141
13. APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES
WITH DUDEK TO PROVIDE ADDITIONAL DESIGN SERVICES FOR THE CIVIC CENTER LAKE AND IRRIGATION CONVERSION PROJECT NO. 2016-06 147
14. APPROVE DEMAND REGISTERS DATED FEBRUARY 20 AND 27, 2026 155
BUSINESS SESSION
PAGE
1. RECEIVE AND FILE FISCAL YEAR 2024/25 GENERAL FUND YEAR-END
BUDGET REPORT AND APPROVE THE AMENDED BUDGET CARRYOVERS 169
2. RECEIVE AND FILE FISCAL YEAR 2025/26 MID-YEAR BUDGET REPORT,
APPROVE THE RECOMMENDED BUDGET ADJUSTMENTS, AND ADOPT
RESOLUTION TO ADD ENGINEERING SPECIALIST POSITION
[RESOLUTION NO. 2026-004]
187
3. APPROVE AGREEMENT REGARDING INSUBSTANTIAL MODIFICATION TO
DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA
AND CM WAVE DEVELOPMENT LLC RELATING TO DEVELOPMENT
AGREEMENT 2023-1000 FOR THE CORAL MOUNTAIN CLUB PROJECT; LOCATION: SOUTH OF AVENUE 58, WEST OF MADISON STREET, AND NORTH OF AVENUE 60
199
4. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER
3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS [ORDINANCE NO. 631]
219
STUDY SESSION – None
PUBLIC HEARINGS – 5:00 p.m. or thereafter
For all Public Hearings on the agenda, a completed “Request to Speak” form must be filed with the City Clerk prior to consideration of that item; comments are limited to three (3) minutes (approximately 350 words).
Any person may submit written comments to the City Council prior to the public hearing and/or may appear and be heard in support of or opposition to the project(s) at the time of the public hearing. If a project(s) is challenged in court, it may be limited to raising only those issues raised at the public hearing or in written correspondence delivered to the City at or prior to the public hearing.
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CITY COUNCIL AGENDA Page 5 of 9 MARCH 17, 2026
PAGE
1. ADOPT RESOLUTION TO APPROVE THE PROPERTY LOCATED AT 57600
CORAL MOUNTAIN COURT AS A QUALIFIED AND CERTIFIED LARGE LOT PURSUANT TO SECTION 3.25.057 OF THE LA QUINTA MUNICIPAL CODE [RESOLUTION NO. 2026-005]
233
DEPARTMENTAL REPORTS
PAGE
1. CITY MANAGER
2. CITY ATTORNEY
3. CITY CLERK – SHORT-TERM VACATION RENTAL PROGRAM QUARTERLY REPORT – OCTOBER – DECEMBER 2025
327
4. COMMUNITY SERVICES
5. DESIGN AND DEVELOPMENT
6. FINANCE
7. PUBLIC SAFETY
8. PUBLIC WORKS
MAYOR’S AND COUNCIL MEMBERS’ ITEMS
REPORTS AND INFORMATIONAL ITEMS
1. ART PURCHASE COMMITTEE (McGarrey & Sanchez)
2. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Sanchez)
3. CANNABIS AD HOC COMMITTEE (Peña & Sanchez)
4. COACHELLA VALLEY ANIMAL CAMPUS COMMISSION (Sanchez)
5. COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT (Peña)
6. COACHELLA VALLEY MOUNTAINS CONSERVANCY (McGarrey)
7. COACHELLA VALLEY POWER AGENCY (Evans)
8. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Fitzpatrick & Peña)
9. COACHELLA VALLEY WATER DISTRICT JOINT POLICY COMMITTEE (Evans)
10. COMMUNITY SERVICE GRANT REVIEW COMMITTEE (Fitzpatrick & McGarrey)
11. COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS:
A) CONSERVATION COMMISSION (Evans)
B) CONSERVATION COMMISSION LEGISLATIVE ADVISORY AD HOC COMMITTEE (Fitzpatrick)
C) ENERGY AND SUSTAINABILITY RESOURCES COMMITTEE (Evans) D) EXECUTIVE COMMITTEE (Evans)
E) HOMELESSNESS COMMITTEE (Peña)
F) PUBLIC SAFETY COMMITTEE (Peña)
G) TRANSPORTATION COMMITTEE (Fitzpatrick)
12. DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick & McGarrey)
13. DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE (Evans & Sanchez)
14. ECONOMIC DEVELOPMENT SUBCOMMITTEE (Evans & Fitzpatrick)
15. GREATER COACHELLA VALLEY CHAMBER OF COMMERCE INFORMATION EXCHANGE COMMITTEE (Fitzpatrick)
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CITY COUNCIL AGENDA Page 6 of 9 MARCH 17, 2026
16. LEAGUE OF CALIFORNIA CITIES:
A) ANNUAL CONFERENCE DELEGATE (Evans)
B) ENVIRONMENTAL QUALITY POLICY COMMITTEE (McGarrey)
C) EXECUTIVE COMMITTEE – RIVERSIDE COUNTY DIVISION (McGarrey) D) PUBLIC SAFETY COMMITTEE (Sanchez)
17. PALM SPRINGS AIR MUSEUM BOARD & EXECUTIVE COMMITTEE (Evans)
18. RIVERSIDE COUNTY:
A) AIRPORT LAND USE COMMISSION (Sanchez)
B) TRANSPORTATION COMMISSION (Fitzpatrick)
C) TRANSPORTATION COMMISSION AUDIT AD HOC COMMITTEE (Fitzpatrick)
D) TRANSPORTATION COMMISSION COACHELLA VALLEY SAN GORGONIO PASS AREA CORRIDOR AD HOC COMMITTEE (Fitzpatrick)
19. RIVERSIDE LOCAL AGENCY FORMATION COMMISSION (Sanchez)
20. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (Sanchez) A) REGIONAL COUNCIL (Sanchez)
B) TRANSPORTATION COMMITTEE (Sanchez)
21. SUNLINE TRANSIT AGENCY (Peña)
22. VISIT GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans)
23. ARTS AND COMMUNITY SERVICES COMMISSION MEETING MINUTES DATED DECEMBER 8, 2025
337
ADJOURNMENT
*********************************
The next regular meeting of the City Council will be held on April 7, 2026, at 4:00 p.m. at the City Hall Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Monika Radeva, City Clerk of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta City Council meeting was published in accordance with the Brown Act [Gov. Code § 54954.2] on the City’s website, accessible directly from the City’s home page through the “Calendar / Public Meetings” icon link, and posted at the City Hall bulletin board, located near the entrance to the Council Chamber at 78495 Calle Tampico, La Quinta, CA 92253, on March 13, 2026, which is freely accessible to members of the public.
DATED: March 13, 2026
MONIKA RADEVA, City Clerk
City of La Quinta, California
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CITY COUNCIL AGENDA Page 7 of 9 MARCH 17, 2026
PUBLIC NOTICES
Agenda packet materials are available for public inspection: 1) at the Clerk’s Office at La Quinta City Hall, located at 78495 Calle Tampico, La Quinta, CA 92253; and 2) on the City’s website at www.laquintaca.gov/publicmeetings in accordance with the Brown Act [Gov. Code §§ 54954.2, 54956, and 54957.5]
The La Quinta City Council Chamber is wheelchair accessible. If hearing assistance equipment is needed, please contact the City Clerk’s office at (760) 777-7147, 24-hours in advance of the meeting and accommodation will be made. If background material is to be presented to the City Council during a City Council meeting, please be advised that 15 copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution, or must be emailed to [email protected]. It is requested that this takes place prior to the beginning of the meeting.
PUBLIC COMMENTS - INSTRUCTIONS
Members of the public may address the City Council on any matter listed or not listed on the agenda as follows:
WRITTEN PUBLIC COMMENTS can be provided either in-person during the meeting by submitting 15 copies to the City Clerk, it is requested that this takes place prior to the beginning of the meeting; or can be emailed in advance to [email protected], no later than 12:00 p.m., on the day of the meeting. Written public comments will be distributed to Council, made public, and will be incorporated into the public record of the meeting, but will not be read during the meeting unless, upon the request of the Mayor, a brief summary of public comments is asked to be reported.
If written public comments are emailed, the email subject line must clearly state “Written Comments” and should include: 1) full name, 2) city of residence, and 3) subject matter.
VERBAL PUBLIC COMMENTS can be provided in-person during the meeting by completing a “Request to Speak” form and submitting it to the City Clerk; it is requested that this takes place prior to the beginning of the meeting. Please limit your comments to three (3) minutes (or approximately 350 words). Only one person at a time may speak and only after being recognized by the Mayor.
In accordance with City Council Resolution No. 2022-027, a one-time additional speaker time donation of three (3) minutes per individual is permitted; please note that the member of the public donating time must: 1) submit this in writing to the City Clerk by completing a “Request to Speak” form noting the name of the person to whom time is being donated to, and 2) be present at the time the speaker provides verbal comments.
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CITY COUNCIL AGENDA Page 8 of 9 MARCH 17, 2026
Members of the public who utilize a translator shall be provided at least twice of the allotted time to ensure non-English speakers receive the same opportunity to directly address the Council.
Verbal public comments are defined as comments provided in the speakers’ own voice and may not include video or sound recordings of the speaker or of other individuals or entities, unless permitted by the Mayor.
Public speakers may elect to use printed presentation materials to aid their comments; 15 copies of such printed materials shall be provided to the City Clerk to be disseminated to the City Council, made public, and incorporated into the public record of the meeting; it is requested that the printed materials are provided prior to the beginning of the meeting.
There shall be no use of Chamber resources and technology to display visual or audible presentations during public comments, unless permitted by the Mayor.
All writings or documents, including but not limited to emails and attachments to emails, submitted to the City regarding any item(s) listed or not listed on this agenda are public records. All information in such writings and documents is subject to disclosure as being in the public domain and subject to search and review by electronic means, including but not limited to the City’s Internet website and any other Internet Web-based platform or other Web-based form of communication. All information in such writings and documents similarly is subject to disclosure pursuant to the California Public Records Act [Gov. Code § 7920.000 et seq.].
TELECONFERENCE ACCESSIBILITY – INSTRUCTIONS
Teleconference accessibility may be triggered in accordance with the Brown Act “during a proclaimed state of emergency or local emergency,” as defined [Gov. Code § 54953.8.2]; or if a member of the City Council requests to attend and participate in this meeting remotely pursuant to any of the following: (1) “disability” [Gov. Code § 54953(c)], or (2) “just cause” [Gov. Code § 54953.8.3], as defined. In such instances, remote public accessibility and participation will be facilitated via the Zoom Webinar audio-visual platform as detailed at the end of this agenda.
*** TELECONFERENCE AND TELEPHONIC PROCEDURES***
APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT ZOOM LINK: https://us06web.zoom.us/s/88215960899
Meeting ID: 882 1596 0899
Or join by phone: (253) 215 – 8782
VERBAL PUBLIC COMMENTS – members of the public may attend and participate in this meeting by teleconference or telephonic accessibility via the Zoom Webinar audiovisual platform and must activate the “Raise Hand” feature on their electronic devise (*9 for telephonic participation) when public comments are prompted by the Mayor, and will be queued in consecutive order; the City will facilitate the ability for a member of the public to be audible to the City Council and general public and allow them to speak on the item(s) CLICK HERE to Return to Agenda
CITY COUNCIL AGENDA Page 9 of 9 MARCH 17, 2026
requested. Members of the public must unmute themselves via the “Audio” feature on their electronic devise (*6 for telephonic participation) when prompted upon being recognized by the Mayor, in order to become audible to the City Council and the public.
WRITTEN PUBLIC COMMENTS can be provided either in person during the meeting or emailed to the City Clerk’s Office at [email protected] any time prior to the adjournment of the meeting, and will be distributed to the City Council, made public, incorporated into the public record of the meeting, and will not be read during the meeting unless, upon the request of the Mayor, a brief summary of any public comment is asked to be read, to the extent the City Clerk’s Office can accommodate such request.
CLOSED CAPTION AND TRANSLATION
Closed Caption and Translation are accessible through the Zoom Webinar audio-visual platform and accessible in real-time to all teleconference attendees. Members of the public must activate the “Show Captions” feature on their device for closed caption; and may use the “Options Arrow” to select from the list of available languages for translation. *9 *6
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION TO REAFFIRM ADOPTION OF ANNUAL ASSESSMENT FOR COUNTY SERVICE AREA 152, AUTHORIZE RIVERSIDE COUNTY
TO CONTINUE TO LEVY ASSESSMENTS, AND INDEMNIFY AND HOLD THE COUNTY
HARMLESS FOR LEVYING ASSESSMENTS ON CITY PARCELS
RECOMMENDATION
Adopt a resolution to reaffirm adoption of the annual assessment for County Service Area 152 for fiscal year 2026/27; authorize Riverside County to continue to levy assessments; and indemnify and hold the County harmless for levying assessments on City parcels.
EXECUTIVE SUMMARY
• The City has an agreement with Riverside County (County) wherein the County assesses properties within the City for the maintenance and operations of street sweeping, flood control, retention basin, and other drainage facilities within La Quinta to improve overall storm water quality.
• These activities are required under the Clean Water Act and the National Pollutant Discharge Elimination System Program.
• Council must annually adopt a resolution authorizing the County to assess City parcels and hold the County harmless for levying the assessments. • The per parcel assessment rate will remain unchanged from its original 1997 rate of $9.99 per Benefit Assessment Unit for the fiscal year (FY) 2026/27.
FISCAL IMPACT
County Service Area (CSA) 152 assessments generate approximately $300,000 per year.
These funds are held by the County and are designated for expenditures related to storm water pollution mitigation under the National Pollutant Discharge Elimination System (NPDES) permit. The City may request reimbursement for qualifying expenditures, such as retention basin maintenance, and the revenue is recognized in the General Fund (Account No. 101-0000-43633, CSA 152 Assessments).
CONSENT CALENDAR ITEM NO. 1
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BACKGROUND/ANALYSIS
In 1991, the County enacted CSA 152 to provide funding for local jurisdictions to maintain flood control and storm drain facilities. In 1994, the City joined CSA 152, and in 1997 the Council approved the Benefit Assessment Unit rate of $9.99. The City/County Agreement is available for review in the Public Works Department.
Staff recommends the City’s continued participation in CSA 152 and to authorize the County to levy and collect these assessments for FY 2026/27.
ALTERNATIVES
Staff does not recommend an alternative.
Prepared by: Carley Escarrega, Administrative Technician Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer 12 CLICK HERE to Return to Agenda
RESOLUTION NO. 2026 – XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, MAKING FINDINGS AND
REAFFIRMING THE ESTABLISHMENT AND SETTING OF
RATES FOR THE COUNTY SERVICE AREA 152 TO FUND
THE CITY’S STREET SWEEPING PROGRAM AND
OPERATE AND MAINTAIN THE CITY’S DRAINAGE AND
FLOOD CONTROL SYSTEMS
WHEREAS, the Riverside County Service Area 152 (CSA 152) was created under the Benefit Assessment Act of 1982 (Government Code Section 54702, et seq.), which authorized local agencies to impose benefit assessments to finance the maintenance and operation costs of flood control and drainage systems, based on the proportionate storm water runoff from each parcel; and
WHEREAS, under the federally-mandated but unfunded National Pollutant Discharge Elimination System Program, the City is required to have a valid permit from the Regional Water Quality Control Board to discharge water runoff from properties within the boundaries of the City; and
WHEREAS, street sweeping is a pro-active method of ensuring pro-active maintenance from street runoff into the flood control and drainage systems of the City; and
WHEREAS, the City is a co-permittee of Permit No. CAS-617002 with the Coachella Valley Water District, County of Riverside and the incorporated cities therein; and
WHEREAS, the City, by its Resolution No. 97-39, adopted on May 20, 1997, authorized Riverside County to levy and establish a Benefit Assessment Unit rate for the 1997-1998 Fiscal Year CSA 152 assessments; and
WHEREAS, the City by its Resolution No. 97-39, adopted on May 20, 1997, agreed to indemnify and hold the County harmless for levying Assessments on the City parcels under CSA 152; and
WHEREAS, the City uses revenues from CSA 152 assessments solely for the purpose of maintaining and operating the City’s flood control and drainage system to comply with the National Pollutant Discharge Elimination System Permit and to provide street sweeping within the City of La Quinta; and
WHEREAS, Proposition 218, adopted by voters on November 6, 1996, established new procedures and approval requirements for all existing assessments, unless the assessment is exempt from the new requirements; and 13 CLICK HERE to Return to Agenda
Resolution No. 2026 – XXX
Riverside County Service Area (CSA) 152 – Fiscal Year 2026/27 Assessments Adopted: March 17, 2026
WHEREAS, certain assessments that existed on November 6, 1996, are specifically exempt from the Proposition 218 procedures and approval requirements, including assessments imposed exclusively to finance the capital costs and maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows:
SECTION 1. The City Council finds the foregoing recitals to be true and correct.
SECTION 2. The City Council finds and declares that the City’s CSA 152 charges are assessments within the definition of California Constitution Article XIIID, Section 2(b), in that they confer special benefits upon each parcel of property subject to the assessments.
SECTION 3. The City Council finds and declares that pursuant to Article XIIID, Section 5(a), the City’s CSA 152 assessments are exempt from the new procedures and approval requirements of Article XIIID, Section 4, because the City’s CSA 152 assessments existed before November 6, 1996, and the assessments are imposed exclusively to finance the capital costs and maintenance and operation expenses for street sweeping, flood control, and drainage systems in the City.
SECTION 4. The City Council hereby reaffirms its adoption of the annual assessment for CSA 152 and hereby determines that the annual assessment rate for Fiscal Year 2026/2027 for CSA 152 is to be set at nine dollars and ninety-nine cents ($9.99) per Benefit Assessment Unit. The method of computation has not been changed nor has the rate of assessment been increased since August 6, 1996.
SECTION 5. The City Council hereby authorizes the County of Riverside to levy assessments under CSA 152 for the benefit of the City. The City agrees that it shall indemnify, defend and hold County and members of its Board, and its officers, employees and agents harmless from (1) any and all claims, demands, and causes of action of any kind or nature whatsoever and (2) any and all liability of any kind or nature whatsoever that may arise out of or be caused by, or be attributable to the imposition, collection, or allocation of any tax (special or general), assessment fees or charges, and/or any other revenue generated through City’s application of reliance on or use of County Service Area 152.
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Resolution No. 2026 – XXX
Riverside County Service Area (CSA) 152 – Fiscal Year 2026/27 Assessments Adopted: March 17, 2026
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 17th day of March 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
_________________________
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
___________________________
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: EXCUSE ABSENCES OF COMMISSIONER BIONDI FROM THE MARCH 9, 2026, ARTS AND COMMUNITY SERVICES COMMISSION QUARTERLY MEETING, AND COMMISSIONERS HASSETT AND HUNDT FROM THE MARCH 10, 2026, PLANNING COMMISSION MEETING
RECOMMENDATION
Excuse absences of Commissioner Biondi from the March 9, 2026, Arts and Community Services Commission quarterly meeting; and Commissioners Hassett and Hundt from the March 10, 2026, Planning Commission meeting.
EXECUTIVE SUMMARY
Commissioner Biondi requested to be excused from the March 9, 2026, Arts and Community Services quarterly meeting due to illness. Commissioner Biondi has one (1) excused absence for fiscal year 2025/26.
Chairperson Hassett requested to be excused from the March 10, 2026, Planning Commission meeting, due to illness. Chairperson Hassett has no excused absences for fiscal year 2025/26.
Commissioner Hundt requested to be excused from the March 10, 2026, Planning Commission meeting, due to a scheduling conflict. Commissioner Hundt has no excused absences for fiscal year 2025/26.
FISCAL IMPACT – No meeting attendance compensation is paid to absent members.
BACKGROUND/ANALYSIS
Section 2.06.090 of the La Quinta Municipal Code states: “If any member of a board, commission or committee absents him or herself from two consecutive regular meetings or absents him or herself from a total of three regular meetings within any fiscal year, his/her office shall become vacant and shall be filled as any other vacancy. A board, commission or committee member may request advance permission from the city council to be absent at one or more regular meetings due to extenuating circumstances, and/or may request the city council to excuse an absence after-the-fact where such extenuating circumstances prevented the member from seeking advance permission to be absent. If such permission or excuse is granted by the city council, the absence shall not be counted toward the above-stated limitations on absences.”
CONSENT CALENDAR ITEM NO. 2
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ALTERNATIVES
Council may deny this request, which would result in the absence being counted toward the Commissioners’ limitation on absences as noted above.
Prepared by: Amanda Guerrero, Records Technician
Approved by: Monika Radeva, City Clerk
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR TWO COUNCILMEMBERS TO ATTEND THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY 2026 ELECTED OFFICIALS SUMMIT IN CHULA VISTA, CALIFORNIA, APRIL 29 – MAY 1, 2026
RECOMMENDATION
Authorize overnight travel for two Councilmembers to attend the California Joint Powers Insurance Authority 2026 Elected Officials Summit in Chula Vista, California, April 29 – May 1, 2026.
EXECUTIVE SUMMARY
The California Joint Powers Insurance Authority (CJPIA) is holding a two-and-ahalf-day education summit (Summit) for elected officials with over three years of service to provide insight about effective and ethical leadership training. Led by local government experts, this summit will provide attendees the opportunity to participate in education sessions, discussion forums, and network with CJPIA staff, subject matter experts and other elected officials throughout the state.
FISCAL IMPACT
Estimated expenses are $450 per attendee, which includes travel and meals; there are no registration or lodging costs for public officials of CJPIA member agencies. Funds are available in the City Council Travel and Training Account No. 101-1001-60320.
BACKGROUND/ANALYSIS
CJPIA works to develop long-term strategies to mitigate the growing and ever-changing risks public agencies may encounter. An Executive Committee, elected by members and guided by the CJPIA’s mission to provide innovative risk management solutions, provides strategic oversight while professional staff of experienced risk mitigation experts facilitate day-to-day management and execute on key priorities and programs.
This two-and-a-half-day summit will allow participants to get insight and information on effective and ethical leadership training. The Summit also provides opportunity to network with other elected officials and industry professionals.
CONSENT CALENDAR ITEM NO. 3
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ALTERNATIVES
Council may elect to deny this travel request or reduce the number of attendees. However, the topics covered at the Summit provide the opportunity for officials to stay abreast of trends and issues that impact City liability insurance.
Prepared by: Jennifer Nelson, Executive Specialist
Approved by: Jon McMillen, City Manager
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR ONE COUNCILMEMBER TO
ATTEND THE LEAGUE OF CALIFORNIA CITIES PUBLIC SAFETY POLICY COMMITTEE MEETING IN COSTA MESA, CALIFORNIA, MARCH 27, 2026
RECOMMENDATION
Authorize overnight travel for one Councilmember to attend the League of California Cities Public Safety Policy Committee meeting in Costa Mesa, California, March 27, 2026.
EXECUTIVE SUMMARY
The League of California Cities (League) is an association of California cities that collaborate to exchange information and combine resources to influence state legislation.
The League’s Public Safety Policy Committee (Committee) meets three times per year to review issues related to law enforcement, fire, and life safety policies. Councilmember Steve Sanchez serves on the Committee as the City’s representative.
FISCAL IMPACT
Estimated expenses are $450 which includes lodging, travel and meals. Funds are available in the City Council travel and training account (No. 101-1001-60320).
BACKGROUND/ANALYSIS
The League serves as a statewide advocacy and educational organization that supports member cities through legislative advocacy, policy development, and training on key municipal issues, including public safety. The League’s policy committees provide a forum for city representatives to review proposed legislation, consider statewide policy impacts, and develop recommendations that guide the League’s formal positions on matters affecting cities.
The Public Safety Policy Committee focuses specifically on issues related to law enforcement, fire services, emergency response, and broader community safety initiatives, and meets three times per year to review and discuss proposed bills, regulations, and best practices in these areas. Councilmember Sanchez’s participation on the Committee ensures that the City’s interests are represented in statewide policy discussions and that La CONSENT CALENDAR ITEM NO. 4
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Quinta remains informed on evolving public safety trends, mandates, and resources that may impact our residents, visitors, and businesses.
ALTERNATIVES
Council may elect not to authorize this request.
Prepared by: Jennifer Nelson, Executive Specialist
Approved by: Jon McMillen, City Manager
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: AUTHORIZE OVERNIGHT TRAVEL FOR DESIGN AND
DEVELOPMENT DEPARTMENT HUB MANAGER TO ATTEND TYLER CONNECT 2026 ANNUAL CONFERENCE IN LAS VEGAS, NEVADA, APRIL 7-10, 2026
RECOMMENDATION
Authorize overnight travel for Design and Development Department HUB Manager to attend Tyler Connect 2026 annual conference in Las Vegas, Nevada, April 7-10, 2026.
EXECUTIVE SUMMARY
Tyler Connect 2026 is a 4-day annual user conference for public sector professionals offering education and best practices essential to the Tyler Enterprise Permitting & Licensing (EPL) software, the main permitting software used by the HUB.
The conference offers a platform for public sector professionals to learn, network, and gain insights into various topics related to their work. Participants will learn techniques to improve existing functionality, including new techniques to customize and streamline the Customer Service Portal that directly interfaces with La Quinta residents, businesses, and building and development professionals.
FISCAL IMPACT
Estimated expenses are $3,000 per attendee, which includes conference registration, transportation, lodging, and meals. Funds are available in the HUB’s Travel & Training budget (Account No. 101-6006-60320).
BACKGROUND/ANALYSIS
In August 2023, the City implemented Tyler EPL permitting software, which allows for enhanced customer service, providing 24/7 online access to information on property, electronic application and permit submittals, plan reviews, calls for inspections, and permit tracking and reporting for data-driven decision making. Tyler Connect 2026 provides education and best practices specifically geared towards public sector professionals. The conference consists of four days of educational sessions, networking CONSENT CALENDAR ITEM NO. 5
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opportunities, and exposure to the latest technologies and solutions for government agencies. The conference will cover various topics relevant to the Design and Development Department, including:
Introduction to upcoming critical upgrades for Tyler EPL software, the main permitting tool used by the HUB.
Workshops to improve existing functionality and backend solutions for EPL. Networking opportunities to share best practices across the country to serve their communities.
Learn new techniques to customize the Customer Service Portal that directly interfaces with residents and businesses.
Plan for future cross-departmental integrations and services such as Enterprise Service Requests, Decision Engine, eReviews and interactive reporting that is unique to our jurisdiction for customers.
Attending Tyler Connect 2026 will allow staff to address Tyler Support, the customer service representatives for EPL; and to learn methodologies to incorporate to the City’s virtual service public counter, while fine-tuning the internal configurations to allow for efficient reporting and automation.
ALTERNATIVES
Council may elect not to authorize this travel request; however, as this is a critical educational and networking opportunity to focus on growth prospects and to learn how to better serve the community, staff does not recommend this alternative.
Prepared by: Tommi Sanchez, HUB Planning Manager
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: ACCEPT OFF-SITE IMPROVEMENTS ASSOCIATED WITH THE OASIS RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 32201, LOCATED AT THE NORTHWEST CORNER OF AVENUE 60 AND MADISON STREET
RECOMMENDATION
Accept the off-site improvements associated with Tract Map No. 32201, Oasis; authorize staff to release the performance security; and direct staff to release the labor and materials security 90 days after City Council acceptance of the improvements.
EXECUTIVE SUMMARY
Oasis is a residential project located at the northwest corner of Avenue 60 and Madison Street (Attachment 1).
Crestwood Corporation (Developer) has requested release of the performance, labor and materials securities.
Since all off-site improvements have been completed, staff recommends acceptance, and release of the performance, labor and materials securities.
FISCAL IMPACT – None.
BACKGROUND/ANALYSIS
The Developer has completed all off-site improvements required by Tract Map No. 32201.
The improvements include pavement, curb and gutter, signing and striping, sidewalk, and landscaping. Staff inspected the off-site improvements and verified they meet Cityapproved plans and standards.
ALTERNATIVES
Accepting improvements is a ministerial action necessary for the release of the improvement securities. Since the improvements have been inspected and meet City standards, staff does not recommend an alternative action.
Prepared by: Amy Yu, Associate Engineer
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map
CONSENT CALENDAR ITEM NO. 6
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V I C I N I T Y M A P
NOT TO SCALE
TRACT MAP NO. 32201
ATTACHMENT 1
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: ACCEPT OFF-SITE AND ON-SITE IMPROVEMENTS ASSOCIATED
WITH THE ESTATES AT POINT HAPPY RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 31348, LOCATED SOUTH OF HIGHWAY 111 AND WEST OF WASHINGTON STREET
RECOMMENDATION
Accept the off-site and on-site improvements associated with Tract Map No. 31348, Estates at Point Happy; authorize staff to release performance securities; and direct staff to release the labor and materials security 90 days after City Council acceptance of the improvements.
EXECUTIVE SUMMARY
• The Estates at Point Happy is a residential development project located south of Highway 111 and west of Washington Street (Attachment 1). • WH La Quinta 29, LLC (Developer) has requested release of the performance, labor and materials securities.
• Staff has verified satisfactory completion of the off-site and on-site improvements and recommends acceptance, and release of the performance, labor and materials securities.
FISCAL IMPACT – None.
BACKGROUND/ANALYSIS
All off-site and on-site improvements required by Tract Map No. 31348 have been completed. The improvements include grading, street improvements, drainage improvements, landscaping, sidewalk, and setting monumentation. Staff inspected the off-site and on-site improvements and verified they meet City-approved plans and standards.
ALTERNATIVES
Accepting improvements is a ministerial action necessary for the release of the improvement securities. Since the improvements have been inspected and meet City standards, staff does not recommend an alternative action.
CONSENT CALENDAR ITEM NO. 7
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Prepared by: Amy Yu, Associate Engineer
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map
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TM 31348 THE ESTATES AT POINT HAPPY
V I C I N I T Y M A P
NOT TO SCALE
ATTACHMENT 1 ATTACHMENT 1
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: ACCEPT DUNE PALMS BRIDGE IMPROVEMENTS PROJECT NO. 2011-05, LOCATED ON DUNE PALMS ROAD AT THE COACHELLA VALLEY
STORM WATER CHANNEL
RECOMMENDATION
Accept the Dune Palms Road Bridge Project No. 2011-05 as complete; authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; and release final payment in the amount of $53,280 after the Notice of Completion is recorded.
EXECUTIVE SUMMARY
• The project included replacing the low water crossing with an all-weather access bridge on Dune Palms Road at the Coachella Valley Storm Water Channel (CVSWC) (Attachment 1).
• The work is complete and Council acceptance will close the contract and allow final payment.
FISCAL IMPACT
The following is the financial accounting for Project No. 2011-05:
Original Contract Amount $ 21,626,760
Contract Change Orders No. 1-24 $ 861,755
Final Contract Amount $ 22,488,515
Project Budget $ 29,756,245
Final Contract Amount ($ 22,488,515)
Design & Professional Costs ($ 2,207,440)
Inspection, Survey, Plans, & Other Construction Costs** ($ 4,643,889) Anticipated Funds Remaining* $ 416,401
* All costs to date have been accounted for and no further costs are anticipated. **Includes costs for TY Lin, the construction management team for this project.
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There are adequate funds to close this project; staff will request final reimbursements from the following funding sources:
Fund Amount
Caltrans-HBP Funding Share: $23,479,704
CVAG Funding Share: $5,421,936
CVWD Funding Share: $69,600
Total: $28,971,240
BACKGROUND/ANALYSIS
On October 18, 2022, Council awarded a $21,626,760 contract to Ortiz Enterprises, Inc.
On January 17, 2023, a Notice to Proceed was issued with a 475-working day completion time starting on January 30, 2023, and ending on December 17, 2024. The project was deemed substantially complete on March 28, 2025. No liquidated damages or early completion incentives are recommended.
Contract Change Orders Nos. 1-24 were issued for additional work, bid quantity adjustments, and time extensions with a revised completion date of March 28, 2025.
The project construction effort is complete and in compliance with the plans and specifications. Staff recommends acceptance and release of the retention after the Notice of Completion is recorded.
ALTERNATIVES
Staff does not recommend an alternative.
Prepared by: Carley Escarrega, Administrative Technician Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Vicinity Map
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Dune Palms Bridge
PROJECT LOCATION
HIGHWAY 111
Vicinity Map
AVENUE 48
ATTACHMENT 1
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: APPROVE PURCHASE AND UPFITS OF 2026 CHEVROLET 2500
SILVERADO UTILITY BED WORK TRUCK WITH A LIFTGATE FROM PARADISE CHEVROLET CADILLAC; AND DECLARE CURRENT 2017 CHEVROLET 2500
SILVERADO UTILITY BED WORK TRUCK AS SURPLUS AND APPROVE DISPOSAL METHOD
RECOMMENDATION
Approve the purchase and upfits of a 2026 Chevrolet 2500 Silverado work truck with a utility bed and lift gate from Paradise Chevrolet Cadillac; authorize the City Manager to execute the purchase orders; declare the current 2017 Chevrolet 2500 Silverado utility bed work truck as surplus; and approve disposal method through its sale via a used car retailer, in accordance with the City’s Surplus Property and Equipment Policy (2019-016).
EXECUTIVE SUMMARY
• The 2026 Chevrolet 2500 work truck will be utilized by the Streets and Stormwater Division; the upfits for the truck include safety lights and decals. • Staff solicited four dealerships for quotes and received two quotes. Paradise Chevrolet Cadilliac provided the lowest quote that met the City’s specifications. • Staff requests that the current 2017 Chevrolet 2500 Silverado utility bed work truck be declared surplus; and be disposed through a sale via a used car retailer.
FISCAL IMPACT
The truck purchase is quoted at $71,650 and the safety lights and decals are estimated at $2,000 for the total sum of $73,650. Funds are available in the Facility & Fleet Replacement Fund for fiscal year (FY) 2025/26 budget in the Vehicles Purchased account (501-0000-71031) and the Parts, Accessories, and Upfits account (501-0000-60675).
BACKGROUND/ANALYSIS
This truck will replace the existing aging 2017 Chevrolet 2500 Silverado work truck with a utility bed and ladder rack (ST-004). Upon replacement, ST-004 will be sold to a used car retailer, such as CarMax or similar, to maximize return, in accordance with the City’s CONSENT CALENDAR ITEM NO. 9
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Surplus Property and Equipment Policy (Resolution No. 2019-016). The current Kelley Blue Book value for ST-004 is approximately $17,500.
This 2026 Chevrolet 2500 truck will be assigned and utilized by the Streets and Stormwater Division. The utility bed and liftgate are required due to the nature of work performed and the necessity of having a variety of specialty tools and parts available on hand. The upfits on this truck will provide staff with additional safety support. The truck will be procured from Paradise Chevrolet Cadillac (Attachment 1). The safety lights and decals will be supplied and installed by a vendor selected in accordance with the City’s Purchasing and Contracting Policy (Resolution No. 2023-008).
Staff solicited four dealerships for quotes and received two quotes from Quality Chevrolet and Paradise Chevrolet Cadillac, with the latter being the lowest. Jessup Chevrolet was unable to supply a truck that met the city’s specifications, and La Quinta Chevrolet was unable to provide a quote at this time.
Staff requests approval to spend up to $73,650 to purchase this vehicle and install the required upfits.
ALTERNATIVES
Council may elect not to approve this purchase.
Prepared by: Tony Ulloa, Public Works Deputy Director
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment: 1. Paradise Chevrolet Cadillac Quote
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Buyer: Deal #:
New
Used
Demo
Stock #: Description: VIN:
Deal Date:
Vehicle
Mileage:
Trade
Salesperson:
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Print Time:
Paradise Chevrolet Cadillac
Phone:
Paradise Chevrolet Cadillac
Customer Acknowledgement Manager Acknowledgement
CITY OF LA QUINTA
265036
M26181 2026 CHEVROLET TRUCK SILVERADO 2500 1GB2ALE7XTF194412 02/24/2026 78495 CALLE TAMPICO
LA QUINTA, CA 92253
65,800.00
65,800.00
0.00 5,764.94
71,649.94
0.00 0.00
0.00 0.00
85.00 0.00
71,649.94
0.00 71,649.94
Sale Price:
Total Aftermarkets:
Service Agreement:
Maintenance Agreement:
GAP Insurance:
Total Trade Allowance:
Trade Difference:
Documentary Fee:
State & Local Taxes:
Total License and Fees:
Total Cash Price:
Total Trade Payoff:
Delivered Price:
Cash Down Payment
Unpaid Balance:
RICHARD MCGRATH
10:31am
RICHARD MCGRATH
27360 YNEZ RD
TEMECULA, CA 92591
(951) 699-2699
2026 2500 SILVERADO WITH UTILITY BODY WITH LIFTGATE AND TOW PACKAGE ATTACHMENT 1
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: APPROVE PLANS, SPECIFICATIONS, ENGINEER’S ESTIMATE, AND
ADVERTISE FOR BID THE MILES AVENUE PAVEMENT REHABILITATION PROJECT NO. 2023-01
RECOMMENDATION
Approve plans, specifications, and engineer’s estimate and authorize staff to bid the Miles Avenue Pavement Rehabilitation Project No. 2023-01.
EXECUTIVE SUMMARY
The Miles Avenue Pavement Rehabilitation project (Project) will pulverize and replace the existing pavement on Miles Avenue from Washington Street to Jefferson Street within city limits (Attachment 1).
The Project also includes adjustments to existing curb ramps to bring them into compliance with current Americans with Disabilities Act (ADA) accessibility standards.
The Project was previously approved but temporarily deferred to avoid potential construction conflicts with the Highway 111 Pavement Rehabilitation Project and to schedule work outside of the City’s festival season and when local schools are out of session, thereby minimizing traffic disruptions to residents and visitors.
FISCAL IMPACT
On December 17, 2024, Council approved a transfer of funds from the Avenue 58 Improvements to the Project, and budget for the Project was also allocated in fiscal year 2024/25 Capital Improvements Program (CIP), resulting in an available budget amount of $4,269,132, which includes $1,600,000 in General Funding, $1,669,132 in Measure A Funding, and $1,000,000 in Measure G Funding. The available Project budget is detailed below, once bids are opened, staff will evaluate if additional funds are needed:
Available Budget
Design/Professional: $ 55,000
Inspection/Testing/Survey: $ 150,000
Construction: $ 4,000,000
Contingency: $ 64,132
Total Budget: $ 4,269,132
Note: Utility adjustments are not included above as they are the responsibility of the respective utility agency.
CONSENT CALENDAR ITEM NO. 10
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BACKGROUND/ANALYSIS
Miles Avenue between Washington Street and Jefferson Street has experienced pavement deterioration due to age and normal traffic loading. The pavement condition has reached the end of its service life and requires rehabilitation to maintain safe and reliable roadway conditions for the traveling public.
The proposed Project will rehabilitate the roadway by pulverizing the existing asphalt pavement and installing new pavement along the corridor within city limits. In conjunction with the pavement improvements, the project will include improvements to existing curb ramps as needed to comply with current ADA accessibility requirements, improving accessibility for pedestrians and individuals with mobility challenges.
Although the Project was previously approved for bid advertising, staff temporarily deferred the work to avoid overlapping construction activities with the Highway 111 Pavement Rehabilitation project, which could have created significant traffic disruptions in the surrounding area. In addition, staff determined that scheduling construction outside of Coachella and Stagecoach festivals and when local schools are not in session, would further minimize potential impacts to residents, visitors, and nearby schools' operations.
With those conditions resolved and a more favorable construction window available, staff has completed the Plans, Specifications, and Engineer’s Estimate and recommends proceeding with advertising the project for bids.
Contingent upon approval to advertise the project for bid on March 17, 2026, the following is the project schedule:
Council Bid Authorization March 17, 2026
Bid Period March 18, 2026, to April 9, 2026
Council Considers Project Award April 21, 2026
Execute Contract and Mobilize April 22 to May 3, 2026
Construction (40 Working Days) May 4 to June 29, 2026
Accept Improvements July 2026
ALTERNATIVES
Staff does not recommend an alternative.
Prepared by: Ubaldo Ayón, Assistant Construction Manager Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachment 1: Vicinity Map
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*IMPORTANT* Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. © Riverside County GIS
Legend
Notes
REPORT PRINTED ON... 8/22/2024 1:19:25 PM
Attachment 1
VICINITY MAP
0 1, 3,009
505
Feet
County Boundary
City Boundaries
Blueline Streams
City Areas
World Street Map
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City of La Quinta
CITY COUNCIL MEETING: March 17, 2026
STAFF REPORT
AGENDA TITLE: APPROVE THREE AGREEMENTS FOR CONTRACT SERVICES WITH (1) PACIFIC WEST INDUSTRIES, INC, (2) RIVCO MECHANICAL SERVICES, INC, AND (3) F.M. THOMAS AIR CONDITIONING, INC, FOR ON-CALL HEATING,
VENTILATION, AND AIR CONDITIONING MAINTENANCE, REPAIR, AND
REPLACEMENT
RECOMMENDATION
Approve three agreements for contract services with (1) Pacific West Industries, Inc., (2) Rivco Mechanical Services, Inc., and (3) F.M. Thomas Air Conditioning, Inc., for oncall heating, ventilation, and air conditioning maintenance, repair, and replacement; and authorize the City Manager to execute the agreements.
EXECUTIVE SUMMARY
• Heating, Ventilation, and Air Conditioning (HVAC) maintenance contractors are needed to perform regular maintenance and repair services and potentially replace full units on an on-call, as-needed basis for City-owned facilities citywide. • Pacific West Industries, Inc. (Pac West), Rivco Mechanical Services, Inc. (RMS), and F.M. Thomas Air Conditioning, Inc. (F.M. Thomas), are qualified to provide oncall HVAC maintenance, repair, and replacement equipment and services and were selected through the competitive Request for Proposals (RFP) process completed in January 2026.
• The three proposed agreements are for a combined contract amount not to exceed $3,800,000 for the initial and extended terms. Expenditures are not to exceed $200,000 in fiscal year (FY) 2025/26 and $600,000 annually from FY 2026/27 through FY 2031/32, which includes the optional two-year extension, providing flexibility to utilize one or more firms based on work demand and contractor availability.
FISCAL IMPACT
All agreements combined could cost up to $200,000 for FY 2025/26 and up to $600,000 per FY from FY 2026/27 through FY 2031/32, which includes the initial term and optional two-year extended term, for a total contract authority not to exceed amount of $3,800,000.
CONSENT CALENDAR ITEM NO. 11
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Funds are available for the remainder of FY 2025/26 and funds will be budgeted each FY in the appropriate HVAC accounts through the term of the agreements.
BACKGROUND/ANALYSIS
HVAC maintenance contractors are needed to perform regular maintenance and repair services and potentially replace full units on an on-call, as-needed basis for City-owned facilities citywide.
In December 2025, staff published an RFP and received five proposals. The selection committee reviewed the proposals and Pac West, RMS, and F.M. Thomas, were selected as best qualified based on their experience and certifications.
The proposed agreements with Pac West (Attachment 1), RMS (Attachment 2), and F.M.
Thomas (Attachment 3), beginning March 18, 2026, through June 30, 2030, are at a combined not to exceed compensation amount of $200,000 for FY 2025/26 and a combined not to exceed compensation amount of $600,000 per FY from FY 2026/27 through FY 2029/30, with an option to extend for one additional two-year term (extended term).
ALTERNATIVES
Council may elect not to approve or to modify the proposed agreements.
Prepared by: Carley Escarrega, Administrative Technician Alfred Berumen, M&O Superintendent
Approved by: Bryan McKinney, P.E., Public Works Director/City Engineer Attachments: 1. Agreement for Contract Services with Pac West
2. Agreement for Contract Services with RMS
3. Agreement for Contract Services with F.M. Thomas
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Revised – Sept. 2025
AGREEMENT FOR CONTRACT SERVICES
This Agreement for Contract Services (the “Agreement”) is made and entered into by and between the City of La Quinta, (“City”), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and Pacific West Industries, Inc., with a place of business at 1912 W Business Center Drive, Orange, CA 92867 (“Contracting Party”). The parties hereto agree as follows:
1. SERVICES OF CONTRACTING PARTY.
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to On-Call HVAC Maintenance, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances.
1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction.
1.3 Wage and Hour Compliance. Contracting Party shall comply with applicable Federal, State, and local wage and hour laws.
1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement.
Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section.
ATTACHMENT 1
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-2-
1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement.
Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof).
1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.
The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party.
1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization through a duly executed written amendment or change order from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, in accordance with Section 2.3 of this Agreement, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written, authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. 46 CLICK HERE to Return to Agenda
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1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern.
2. COMPENSATION.
2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Three Million Eight Hundred Thousand Dollars ($3,800,000), for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Rivco Mechanical Services, Inc., and that certain Agreement for Contract Services by and between the City and F.M. Thomas Air Conditioning, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under all three agreements. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement.
2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department.
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2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing through a duly executed amendment or change order by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) of the Contract Sum or Fifteen Thousand Dollars ($15,000), whichever is less, may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services without prior written approval through a duly executed amendment or change order for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement.
3. PERFORMANCE SCHEDULE.
3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services are not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage.
3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee.
3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum.
3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on March 18, 48 CLICK HERE to Return to Agenda
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2026, and terminate on June 30, 2030 (“Initial Term”). This Agreement may be extended for two additional year(s) upon mutual agreement by both parties (“Extended Term”), and executed in writing.
4. COORDINATION OF WORK.
4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith:
(a) Name: Adrian Alano
Telephone No.: (866) 328-2129
Email: [email protected]
(b) Name: Daniel Monge
Telephone No.: (866) 328.2129
Email: [email protected]
It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City.
4.2 Contract Officer. The “Contract Officer”, otherwise known as Alfred Berumen, Maintenance and Operations Superintendent, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee.
Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.
4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in 49 CLICK HERE to Return to Agenda
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concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved transfer shall release Contracting Party of any liability hereunder without the express consent of City.
4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein.
City shall have no voice in the selection, discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section.
4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents 50 CLICK HERE to Return to Agenda
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that the Services required herein will be performed by Contracting Party or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services.
4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City.
5. INSURANCE.
5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof.
5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance.
6. INDEMNIFICATION.
6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof.
7. RECORDS AND REPORTS.
7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed. 51 CLICK HERE to Return to Agenda
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7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records.
Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.
7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom.
7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any 52 CLICK HERE to Return to Agenda
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changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change.
The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect.
7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City.
7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other information shall be returned to City upon the termination or expiration of this Agreement.
Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement.
8. ENFORCEMENT OF AGREEMENT.
8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and 53 CLICK HERE to Return to Agenda
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Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.
8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted.
Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default.
8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement.
8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.
8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for 54 CLICK HERE to Return to Agenda
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termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement.
8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City.
8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation.
Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose.
9. CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.
9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement.
9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder 55 CLICK HERE to Return to Agenda
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Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.
No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
10. MISCELLANEOUS PROVISIONS.
10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section.
To City:
CITY OF LA QUINTA
Attention: Alfred Berumen
78495 Calle Tampico
La Quinta, California 92253
To Contracting Party:
Pacific West Industries, Inc.
Attention: Adrian Alano
1912 W Business Center Drive
Orange, CA 92867
10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
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10.3 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.
10.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and none shall be used to interpret this Agreement.
10.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.
10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.
10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties.
10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.
10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of 57 CLICK HERE to Return to Agenda
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any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below.
CITY OF LA QUINTA,
a California Municipal Corporation
JON MCMILLEN, City Manager
City of La Quinta, California
Dated:
PACIFIC WEST INDURSTRIES, INC.:
By:
Name:
Title:
ATTEST:
MONIKA RADEVA, City Clerk
City of La Quinta, California
By:
Name:
Title:
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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Exhibit A
Exhibit A
Scope of Services
1. Services to be Provided:
Complete HVAC controls and Mechanical replacement and repair services, including but not limited to: HVAC maintenance, repair and replacement services on an on-call, asneeded basis. The proposed work includes providing regularly scheduled HVAC maintenance services and appropriate supplies to effectively and safely maintain functioning HVAC systems for specified City facilities in accordance with the best standards of practice. The services and tasks to be performed include the furnishing of all labor, materials, tools, equipment, supplies, tasks, and incidental and customary work necessary to competently perform HVAC services, repair, and replacement work at various City facilities, projects, and locations.
Provide all labor and additional materials to maintain, repair or replace existing heating, ventilating and air conditioning systems including but not limited to:
• Inspect and identify a variety of HVAC systems at a variety of facilities (City Hall, Library, Wellness Center, Museum, Fire Stations (3), Silver Rock Resort, Silver Rock Event Building, Park Buildings (2), X-Park building, Public Works building and the Old Lumber Yard)
• Replace, repair, and perform preventative maintenance of a variety of HVAC systems (Air cooled chiller units, air cooled condensing units, air handling units, fan coil units, boilers, packaged units, mini splits, split system heat pumps, and evaporative coolers)
• Inspect units for needed preventative maintenance, repairs and replacement (contactors, fan motors, capacitors, fuses, and belts)
• Replace all filters and wash coils quarterly or as needed • Inspect air handler motors, pulleys and belts, lubricate, and replace as needed • All condensation drains cleaned, clear of clogs and debris • Other typical and common miscellaneous HVAC repairs and work • Replacement of ageing units as needed to include units requiring R-22 • The work should include all preparation, replacement and repairs unless otherwise stated by the City
• All replacement materials to be used will be approved by the Facilities Superintendent
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Exhibit A
• All filters to be provided by the City
• All work shall be to applicable codes and to the satisfaction of the City • Contractor shall have a dedicated technician for emergencies available to respond within 2 hours
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Exhibit A
ADDENDUM TO AGREEMENT
Re: Scope of Services
If the Scope of Services include construction, alteration, demolition, installation, repair, or maintenance affecting real property or structures or improvements of any kind appurtenant to real property, the following apply:
1. Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twentyfive thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY-FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, 62 CLICK HERE to Return to Agenda
Exhibit A
its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws.
Contracting Party shall require the same of all subcontractors.
2. Retention. Payments shall be made in accordance with the provisions of Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said invoice. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contracting Party within sixty (60) days after final acceptance of the Services by the City Council of City, after Contracting Party has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contracting Party from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contracting Party’s obligations under the Agreement.
3. Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunk-line utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contracting Party for any costs incurred in locating, repairing damage not caused by Contracting Party, and removing or relocating such unidentified utility facilities. Contracting Party shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
4. Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply:
(a) Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. 63 CLICK HERE to Return to Agenda
Exhibit A
(b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c) in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties.
5. Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
6. Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 64 CLICK HERE to Return to Agenda
Exhibit B
Exhibit B
Schedule of Compensation
For the avoidance of doubt, the compensation thresholds on this Exhibit B do not include compensation for Additional Services (if any) authorized pursuant to Section 1.7 and compensated pursuant to Section 2.3 of this Agreement.
Contract Sum
Compensation for Services shall not exceed the following Contract Sum for the entire life of this Agreement including the Initial and Extended terms: Three Million Eight Hundred Thousand Dollars ($3,800,000), to be paid for duly authorized Services performed consistent with the terms and conditions of this Agreement.
Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Rivco Mechanical Services, Inc., and that certain Agreement for Contract Service by and between the City and F.M. Thomas Air Conditioning, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under both agreements.
The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement.
Initial Term:
FY 2025/26 $200,000
FY 2026/27 $600,000
FY 2027/28 $600,000
FY 2028/29 $600,000
FY 2029/30 $600,000
Extended Term:
FY 2030/31 $600,000
FY 2031/32 $600,000
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Exhibit B
2 of 2
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Exhibit C
Exhibit C
Schedule of Performance
Contracting Party shall complete all services identified in the Scope of Services, Exhibit A of this Agreement.
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Exhibit D
Exhibit D
Special Requirements
None.
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Exhibit E
Exhibit E
Insurance Requirements
E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies checked below shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI:
Commercial General Liability (at least as broad as ISO CG 0001):
$1,000,000 per occurrence/$2,000,000 aggregate OR
$2,000,000 per occurrence/$4,000,000 aggregate
Must include the following endorsements:
General Liability Additional Insured
General Liability Primary and Non-contributory
Commercial Automobile Liability (at least as broad as ISO CA 0001):
$1,000,000 combined single limit for bodily injury and property damage Auto Liability Additional Insured
Workers’ Compensation (per statutory requirements):
Statutory Limits / Employer’s Liability $1,000,000 per accident or disease OR Must include the following endorsements:
Workers’ Compensation Endorsement with Waiver of Subrogation Workers’ Compensation Declaration of Sole Proprietor
California Workers' Compensation Requirements Acknowledgement Professional Liability (Errors and Omissions):
Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim
Cyber Liability
$1,000,000 per occurrence/$2,000,000 aggregate
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Exhibit E
Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder.
Contracting Party shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss.
Contracting Party shall carry Workers’ Compensation Insurance in accordance with State Worker’s Compensation laws with employer’s liability limits no less than $1,000,000 per accident or disease.
Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement.
Contracting Party shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss which shall include the following coverage:
a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination or use of the confidential information.
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Exhibit E
b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems.
c. Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended.
d. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deeplinking or framing, and infringement or violation of intellectual property rights.
e. Liability arising from the failure to render professional services.
If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract.
Contracting Party shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased.
In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents.
E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c. Terminate this Agreement.
Exercise any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement.
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Exhibit E
E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party:
1. Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise.
2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.
7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option.
8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended 72 CLICK HERE to Return to Agenda
Exhibit E
to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City.
9. Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party.
Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.
10. Contracting Party agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.
11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City.
12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement.
13. Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.
14. Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.
15. Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from 73 CLICK HERE to Return to Agenda
Exhibit E
Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages.
16. The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents.
17. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive.
18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such.
19. The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit.
20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
21. Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement.
City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 74 CLICK HERE to Return to Agenda
Exhibit F
Exhibit F
Indemnification
F.1 Indemnity for the Benefit of City.
a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party.
c. Indemnity Provisions for Contracts Related to Construction (Limitation on Indemnity). Without affecting the rights of City under any provision of this agreement, Contracting Party shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contracting Party will be for that entire portion or percentage of liability not attributable to the active negligence of City.
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Exhibit F
d. Indemnification Provision for Design Professionals.
1. Applicability of this Section F.1(d). Notwithstanding Section F.1(a) hereinabove, the following indemnification provision shall apply to a Contracting Party who constitutes a “design professional” as the term is defined in paragraph 3 below.
2. Scope of Indemnification. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses, including, without limitation, incidental and consequential damages, court costs, reimbursement of attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party.
3. Design Professional Defined. As used in this Section F.1(d), the term “design professional” shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8.
F.2 Obligation to Secure Indemnification Provisions. Contracting Party agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Exhibit F, as applicable to the Contracting Party, from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contracting Party in the performance of this Agreement. In the event Contracting Party fails to obtain such indemnity obligations from others as required herein, Contracting Party agrees to be fully responsible according to the terms of this Exhibit. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth in this Agreement are binding on the successors, assigns or heirs of Contracting Party and shall survive the termination of this Agreement. 76 CLICK HERE to Return to Agenda
Revised – Sept. 2025
AGREEMENT FOR CONTRACT SERVICES
This Agreement for Contract Services (the “Agreement”) is made and entered into by and between the City of La Quinta, (“City”), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and Rivco Mechanical Services, Inc., with a place of business at 42-941 Madio Street, Indio, CA 92201 (“Contracting Party”). The parties hereto agree as follows:
1. SERVICES OF CONTRACTING PARTY.
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to On-Call HVAC Maintenance, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances.
1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction.
1.3 Wage and Hour Compliance. Contracting Party shall comply with applicable Federal, State, and local wage and hour laws.
1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement.
Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section.
ATTACHMENT 2
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1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement.
Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof).
1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.
The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party.
1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization through a duly executed written amendment or change order from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, in accordance with Section 2.3 of this Agreement, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written, authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. 78 CLICK HERE to Return to Agenda
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1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern.
2. COMPENSATION.
2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Three Million Eight Hundred Thousand Dollars ($3,800,000), for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Pacific West Industries, Inc., and that certain Agreement for Contract Services by and between the City and F.M. Thomas Air Conditioning, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under all three agreements. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement.
2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department.
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2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing through a duly executed amendment or change order by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) of the Contract Sum or Fifteen Thousand Dollars ($15,000), whichever is less, may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services without prior written approval through a duly executed amendment or change order for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement.
3. PERFORMANCE SCHEDULE.
3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services are not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage.
3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee.
3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum.
3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on March 18, 80 CLICK HERE to Return to Agenda
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2026, and terminate on June 30, 2030 (“Initial Term”). This Agreement may be extended for two additional year(s) upon mutual agreement by both parties (“Extended Term”), and executed in writing.
4. COORDINATION OF WORK.
4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith:
(a) Name: Marvin Scott
Telephone No.: (760) 200-9898
Email: [email protected]
(b) Name: Richard Sang
Telephone No.: (760) 200-9898
Email: [email protected]
It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City.
4.2 Contract Officer. The “Contract Officer”, otherwise known as Alfred Berumen, Maintenance and Operations Superintendent, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee.
Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.
4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in 81 CLICK HERE to Return to Agenda
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concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved transfer shall release Contracting Party of any liability hereunder without the express consent of City.
4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein.
City shall have no voice in the selection, discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section.
4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents 82 CLICK HERE to Return to Agenda
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that the Services required herein will be performed by Contracting Party or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services.
4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City.
5. INSURANCE.
5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof.
5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance.
6. INDEMNIFICATION.
6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof.
7. RECORDS AND REPORTS.
7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed. 83 CLICK HERE to Return to Agenda
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7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records.
Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.
7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom.
7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any 84 CLICK HERE to Return to Agenda
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changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change.
The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect.
7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City.
7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other information shall be returned to City upon the termination or expiration of this Agreement.
Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement.
8. ENFORCEMENT OF AGREEMENT.
8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and 85 CLICK HERE to Return to Agenda
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Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.
8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted.
Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default.
8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement.
8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.
8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for 86 CLICK HERE to Return to Agenda
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termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement.
8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City.
8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation.
Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose.
9. CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.
9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement.
9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder 87 CLICK HERE to Return to Agenda
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Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.
No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
10. MISCELLANEOUS PROVISIONS.
10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section.
To City:
CITY OF LA QUINTA
Attention: Alfred Berumen
78495 Calle Tampico
La Quinta, California 92253
To Contracting Party:
Rivco Mechanical Services, Inc.
Attention: Marvin Scott
42941 Madio St.
Indio, CA 92201
10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
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10.3 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.
10.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and none shall be used to interpret this Agreement.
10.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.
10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.
10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties.
10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.
10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of 89 CLICK HERE to Return to Agenda
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any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below.
CITY OF LA QUINTA,
a California Municipal Corporation
JON MCMILLEN, City Manager
City of La Quinta, California
Dated:
RIVCO MECHANICAL SERVICES, INC.:
By:
Name:
Title:
ATTEST:
MONIKA RADEVA, City Clerk
City of La Quinta, California
By:
Name:
Title:
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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Exhibit A
Exhibit A
Scope of Services
1. Services to be Provided:
Complete HVAC controls and Mechanical replacement and repair services, including but not limited to: HVAC maintenance, repair and replacement services on an on-call, asneeded basis. The proposed work includes providing regularly scheduled HVAC maintenance services and appropriate supplies to effectively and safely maintain functioning HVAC systems for specified City facilities in accordance with the best standards of practice. The services and tasks to be performed include the furnishing of all labor, materials, tools, equipment, supplies, tasks, and incidental and customary work necessary to competently perform HVAC services, repair, and replacement work at various City facilities, projects, and locations.
Provide all labor and additional materials to maintain, repair or replace existing heating, ventilating and air conditioning systems including but not limited to:
• Inspect and identify a variety of HVAC systems at a variety of facilities (City Hall, Library, Wellness Center, Museum, Fire Stations (3), Silver Rock Resort, Silver Rock Event Building, Park Buildings (2), X-Park building, Public Works building and the Old Lumber Yard)
• Replace, repair, and perform preventative maintenance of a variety of HVAC systems (Air cooled chiller units, air cooled condensing units, air handling units, fan coil units, boilers, packaged units, mini splits, split system heat pumps, and evaporative coolers)
• Inspect units for needed preventative maintenance, repairs and replacement (contactors, fan motors, capacitors, fuses, and belts)
• Replace all filters and wash coils quarterly or as needed • Inspect air handler motors, pulleys and belts, lubricate, and replace as needed • All condensation drains cleaned, clear of clogs and debris • Other typical and common miscellaneous HVAC repairs and work • Replacement of ageing units as needed to include units requiring R-22 • The work should include all preparation, replacement and repairs unless otherwise stated by the City
• All replacement materials to be used will be approved by the Facilities Superintendent
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Exhibit A
• All filters to be provided by the City
• All work shall be to applicable codes and to the satisfaction of the City • Contractor shall have a dedicated technician for emergencies available to respond within 2 hours
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Exhibit A
ADDENDUM TO AGREEMENT
Re: Scope of Services
If the Scope of Services include construction, alteration, demolition, installation, repair, or maintenance affecting real property or structures or improvements of any kind appurtenant to real property, the following apply:
1. Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twentyfive thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY-FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, 94 CLICK HERE to Return to Agenda
Exhibit A
its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws.
Contracting Party shall require the same of all subcontractors.
2. Retention. Payments shall be made in accordance with the provisions of Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said invoice. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contracting Party within sixty (60) days after final acceptance of the Services by the City Council of City, after Contracting Party has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contracting Party from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contracting Party’s obligations under the Agreement.
3. Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunk-line utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contracting Party for any costs incurred in locating, repairing damage not caused by Contracting Party, and removing or relocating such unidentified utility facilities. Contracting Party shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
4. Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply:
(a) Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. 95 CLICK HERE to Return to Agenda
Exhibit A
(b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c) in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties.
5. Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
6. Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 96 CLICK HERE to Return to Agenda
Exhibit B
Exhibit B
Schedule of Compensation
For the avoidance of doubt, the compensation thresholds on this Exhibit B do not include compensation for Additional Services (if any) authorized pursuant to Section 1.7 and compensated pursuant to Section 2.3 of this Agreement.
Contract Sum
Compensation for Services shall not exceed the following Contract Sum for the entire life of this Agreement including the Initial and Extended terms: Three Million Eight Hundred Thousand Dollars ($3,800,000), to be paid for duly authorized Services performed consistent with the terms and conditions of this Agreement.
Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Pacific West Industries, Inc., and that certain Agreement for Contract Service by and between the City and FM Thomas, of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under both agreements.
The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement.
Initial Term:
FY 2025/26 $200,000
FY 2026/27 $600,000
FY 2027/28 $600,000
FY 2028/29 $600,000
FY 2029/30 $600,000
Extended Term:
FY 2030/31 $600,000
FY 2031/32 $600,000
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Exhibit C
1 of 1
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Exhibit C
1 of 1
Exhibit C
Schedule of Performance
Contracting Party shall complete all services identified in the Scope of Services, Exhibit A of this Agreement.
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Exhibit D
Exhibit D
Special Requirements
None.
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Exhibit E
Exhibit E
Insurance Requirements
E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies checked below shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI:
Commercial General Liability (at least as broad as ISO CG 0001):
$1,000,000 per occurrence/$2,000,000 aggregate OR
$2,000,000 per occurrence/$4,000,000 aggregate
Must include the following endorsements:
General Liability Additional Insured
General Liability Primary and Non-contributory
Commercial Automobile Liability (at least as broad as ISO CA 0001):
$1,000,000 combined single limit for bodily injury and property damage Auto Liability Additional Insured
Workers’ Compensation (per statutory requirements):
Statutory Limits / Employer’s Liability $1,000,000 per accident or disease OR Must include the following endorsements:
Workers’ Compensation Endorsement with Waiver of Subrogation Workers’ Compensation Declaration of Sole Proprietor
California Workers' Compensation Requirements Acknowledgement Professional Liability (Errors and Omissions):
Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim
Cyber Liability
$1,000,000 per occurrence/$2,000,000 aggregate
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Exhibit E
Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder.
Contracting Party shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss.
Contracting Party shall carry Workers’ Compensation Insurance in accordance with State Worker’s Compensation laws with employer’s liability limits no less than $1,000,000 per accident or disease.
Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement.
Contracting Party shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss which shall include the following coverage:
a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination or use of the 102 CLICK HERE to Return to Agenda
Exhibit E
confidential information.
b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems.
c. Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended.
d. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deeplinking or framing, and infringement or violation of intellectual property rights.
e. Liability arising from the failure to render professional services.
If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract.
Contracting Party shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased.
In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents.
E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c. Terminate this Agreement.
Exercise any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or 103 CLICK HERE to Return to Agenda
Exhibit E
property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement.
E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party:
1. Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise.
2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.
7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option. 104 CLICK HERE to Return to Agenda
Exhibit E
8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City.
9. Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party.
Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.
10. Contracting Party agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.
11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City.
12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement.
13. Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.
14. Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.
15. Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with 105 CLICK HERE to Return to Agenda
Exhibit E
other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages.
16. The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents.
17. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive.
18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such.
19. The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit.
20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
21. Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement.
City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 106 CLICK HERE to Return to Agenda
Exhibit F
Exhibit F
Indemnification
F.1 Indemnity for the Benefit of City.
a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party.
c. Indemnity Provisions for Contracts Related to Construction (Limitation on Indemnity). Without affecting the rights of City under any provision of this agreement, Contracting Party shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contracting Party will be for that entire portion or percentage of liability not attributable to the active negligence of City.
107 CLICK HERE to Return to Agenda
Exhibit F
d. Indemnification Provision for Design Professionals.
1. Applicability of this Section F.1(d). Notwithstanding Section F.1(a) hereinabove, the following indemnification provision shall apply to a Contracting Party who constitutes a “design professional” as the term is defined in paragraph 3 below.
2. Scope of Indemnification. When the law establishes a professional standard of care for Contracting Party’s Services, to the fullest extent permitted by law, Contracting Party shall indemnify and hold harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from and against any and all losses, liabilities of every kind, nature, and description, damages, injury (including, without limitation, injury to or death of an employee of Contracting Party or of any subcontractor), costs and expenses, including, without limitation, incidental and consequential damages, court costs, reimbursement of attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, to the extent same are caused by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents, employees or subcontractors (or any entity or individual that Contracting Party shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Contracting Party shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Contracting Party.
3. Design Professional Defined. As used in this Section F.1(d), the term “design professional” shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8.
F.2 Obligation to Secure Indemnification Provisions. Contracting Party agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Exhibit F, as applicable to the Contracting Party, from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contracting Party in the performance of this Agreement. In the event Contracting Party fails to obtain such indemnity obligations from others as required herein, Contracting Party agrees to be fully responsible according to the terms of this Exhibit. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth in this Agreement are binding on the successors, assigns or heirs of Contracting Party and shall survive the termination of this Agreement. 108 CLICK HERE to Return to Agenda
Revised – Sept. 2025
AGREEMENT FOR CONTRACT SERVICES
This Agreement for Contract Services (the “Agreement”) is made and entered into by and between the City of La Quinta, (“City”), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and F.M.
Thomas Air Conditioning, Inc., with a place of business at 231 Gemini Ave, Brea, CA 92821 (“Contracting Party”). The parties hereto agree as follows:
1. SERVICES OF CONTRACTING PARTY.
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to On-Call HVAC Maintenance, as specified in the “Scope of Services” attached hereto as “Exhibit A” and incorporated herein by this reference (the “Services”). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “industry standards” shall mean those standards of practice recognized by one or more first-class firms performing similar services under similar circumstances.
1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State, or local governmental agency of competent jurisdiction.
1.3 Wage and Hour Compliance. Contracting Party shall comply with applicable Federal, State, and local wage and hour laws.
1.4 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Contracting Party shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of La Quinta business license. Contracting Party and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement.
Contracting Party shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the Services required by this Agreement, and shall indemnify, defend (with counsel selected by City), and hold City, its elected officials, officers, employees, and agents, free and harmless against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. Contracting Party shall be responsible for all subcontractors’ compliance with this Section.
ATTACHMENT 3
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1.5 Familiarity with Work. By executing this Agreement, Contracting Party warrants that (a) it has thoroughly investigated and considered the Services to be performed, (b) it has investigated the site where the Services are to be performed, if any, and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the Services should be performed, and (d) it fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement.
Should Contracting Party discover any latent or unknown conditions materially differing from those inherent in the Services or as represented by City, Contracting Party shall immediately inform City of such fact and shall not proceed except at Contracting Party’s risk until written instructions are received from the Contract Officer, or assigned designee (as defined in Section 4.2 hereof).
1.6 Standard of Care. Contracting Party acknowledges and understands that the Services contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Contracting Party’s work will be held to an industry standard of quality and workmanship. Consistent with Section 1.5 hereinabove, Contracting Party represents to City that it holds the necessary skills and abilities to satisfy the industry standard of quality as set forth in this Agreement. Contracting Party shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services performed by Contracting Party, and the equipment, materials, papers, and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.
The performance of Services by Contracting Party shall not relieve Contracting Party from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to City, when such inaccuracies are due to the negligence of Contracting Party.
1.7 Additional Services. In accordance with the terms and conditions of this Agreement, Contracting Party shall perform services in addition to those specified in the Scope of Services (“Additional Services”) only when directed to do so by the Contract Officer, or assigned designee, provided that Contracting Party shall not be required to perform any Additional Services without compensation. Contracting Party shall not perform any Additional Services until receiving prior written authorization through a duly executed written amendment or change order from the Contract Officer, or assigned designee, incorporating therein any adjustment in (i) the Contract Sum, in accordance with Section 2.3 of this Agreement, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contracting Party. It is expressly understood by Contracting Party that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. It is specifically understood and agreed that oral requests and/or approvals of Additional Services shall be barred and are unenforceable. Failure of Contracting Party to secure the Contract Officer’s, or assigned designee’s written, authorization for Additional Services shall constitute a waiver of any and all right to adjustment of the Contract Sum or time to perform this Agreement, whether by way of compensation, restitution, quantum meruit, or the like, for Additional Services provided without the appropriate authorization from the Contract Officer, or assigned designee. 110 CLICK HERE to Return to Agenda
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1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in “Exhibit D” (the “Special Requirements”), which is incorporated herein by this reference and expressly made a part hereof. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern.
2. COMPENSATION.
2.1 Contract Sum. For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with “Exhibit B” (the “Schedule of Compensation”) in a total amount not to exceed Three Million Eight Hundred Thousand Dollars ($3,800,000), for the life of the Agreement, encompassing the Initial and any Extended Terms (the “Contract Sum”), except as provided in Section 1.7. Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Pacific West Industries, Inc., and that certain Agreement for Contract Services by and between the City and Rivco Mechanical Services, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under all three agreements. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party’s rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party’s overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement.
2.2 Method of Billing & Payment. Any month in which Contracting Party wishes to receive payment, Contracting Party shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the Services provided, including time and materials, and (2) specify each staff member who has provided Services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Contracting Party specifying that the payment requested is for Services performed in accordance with the terms of this Agreement. Upon approval in writing by the Contract Officer, or assigned designee, and subject to retention pursuant to Section 8.3, City will pay Contracting Party for all items stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City’s Finance Department.
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2.3 Compensation for Additional Services. Additional Services approved in advance by the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement shall be paid for in an amount agreed to in writing through a duly executed amendment or change order by both City and Contracting Party in advance of the Additional Services being rendered by Contracting Party. Any compensation for Additional Services amounting to five percent (5%) of the Contract Sum or Fifteen Thousand Dollars ($15,000), whichever is less, may be approved by the Contract Officer, or assigned designee. Any greater amount of compensation for Additional Services must be approved by the La Quinta City Council, the City Manager, or Department Director, depending upon City laws, regulations, rules and procedures concerning public contracting. Under no circumstances shall Contracting Party receive compensation for any Additional Services without prior written approval through a duly executed amendment or change order for the Additional Services is obtained from the Contract Officer, or assigned designee, pursuant to Section 1.7 of this Agreement.
3. PERFORMANCE SCHEDULE.
3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the Services are not completed in accordance with the Schedule of Performance, as set forth in Section 3.2 and “Exhibit C”, it is understood that the City will suffer damage.
3.2 Schedule of Performance. All Services rendered pursuant to this Agreement shall be performed diligently and within the time period established in “Exhibit C” (the “Schedule of Performance”). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer, or assigned designee.
3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contracting Party, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Contracting Party shall within ten (10) days of the commencement of such delay notify the Contract Officer, or assigned designee, in writing of the causes of the delay. The Contract Officer, or assigned designee, shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the forced delay when and if in the Contract Officer’s judgment such delay is justified, and the Contract Officer’s determination, or assigned designee, shall be final and conclusive upon the parties to this Agreement. Extensions to time period in the Schedule of Performance which are determined by the Contract Officer, or assigned designee, to be justified pursuant to this Section shall not entitle the Contracting Party to additional compensation in excess of the Contract Sum.
3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this Agreement, the term of this agreement shall commence on March 18, 112 CLICK HERE to Return to Agenda
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2026, and terminate on June 30, 2030 (“Initial Term”). This Agreement may be extended for two additional year(s) upon mutual agreement by both parties (“Extended Term”), and executed in writing.
4. COORDINATION OF WORK.
4.1 Representative of Contracting Party. The following principals of Contracting Party (“Principals”) are hereby designated as being the principals and representatives of Contracting Party authorized to act in its behalf with respect to the Services specified herein and make all decisions in connection therewith:
(a) Name: Michael Feyka, Vice President
Telephone No.: (800) 660-0891
Email: [email protected]
It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Contracting Party and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the foregoing Principals may not be changed by Contracting Party and no other personnel may be assigned to perform the Services required hereunder without the express written approval of City.
4.2 Contract Officer. The “Contract Officer”, otherwise known as Alfred Berumen, Maintenance and Operations Superintendent, or assigned designee may be designated in writing by the City Manager of the City. It shall be Contracting Party’s responsibility to assure that the Contract Officer, or assigned designee, is kept informed of the progress of the performance of the Services, and Contracting Party shall refer any decisions, that must be made by City to the Contract Officer, or assigned designee.
Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer, or assigned designee. The Contract Officer, or assigned designee, shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.
4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability, and reputation of Contracting Party, its principals, and its employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Contracting Party shall not contract or subcontract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered, voluntarily or by operation of law, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contracting Party, taking all transfers into account on a cumulative basis. Any attempted or purported assignment or contracting or subcontracting by Contracting Party without City’s express written approval shall be null, void, and of no effect. No approved 113 CLICK HERE to Return to Agenda
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transfer shall release Contracting Party of any liability hereunder without the express consent of City.
4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contracting Party, its agents, or its employees, perform the Services required herein, except as otherwise set forth herein.
City shall have no voice in the selection, discharge, supervision, or control of Contracting Party’s employees, servants, representatives, or agents, or in fixing their number or hours of service. Contracting Party shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contracting Party in its business or otherwise or a joint venture or a member of any joint enterprise with Contracting Party. Contracting Party shall have no power to incur any debt, obligation, or liability on behalf of City. Contracting Party shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Except for the Contract Sum paid to Contracting Party as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contracting Party for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contracting Party for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contracting Party and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contracting Party agrees to pay all required taxes on amounts paid to Contracting Party under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contracting Party shall fully comply with the workers’ compensation laws regarding Contracting Party and Contracting Party’s employees. Contracting Party further agrees to indemnify and hold City harmless from any failure of Contracting Party to comply with applicable workers’ compensation laws. City shall have the right to offset against the amount of any payment due to Contracting Party under this Agreement any amount due to City from Contracting Party as a result of Contracting Party’s failure to promptly pay to City any reimbursement or indemnification arising under this Section.
4.5 Identity of Persons Performing Work. Contracting Party represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contracting Party represents that the Services required herein will be performed by Contracting Party or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services.
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4.6 City Cooperation. City shall provide Contracting Party with any plans, publications, reports, statistics, records, or other data or information pertinent to the Services to be performed hereunder which are reasonably available to Contracting Party only from or through action by City.
5. INSURANCE.
5.1 Insurance. Prior to the beginning of any Services under this Agreement and throughout the duration of the term of this Agreement, Contracting Party shall procure and maintain, at its sole cost and expense, and submit concurrently with its execution of this Agreement, policies of insurance as set forth in “Exhibit E” (the “Insurance Requirements”) which is incorporated herein by this reference and expressly made a part hereof.
5.2 Proof of Insurance. Contracting Party shall provide Certificate of Insurance to Agency along with all required endorsements. Certificate of Insurance and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance.
6. INDEMNIFICATION.
6.1 Indemnification. To the fullest extent permitted by law, Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, agents, and volunteers as set forth in “Exhibit F” (“Indemnification”) which is incorporated herein by this reference and expressly made a part hereof.
7. RECORDS AND REPORTS.
7.1 Reports. Contracting Party shall periodically prepare and submit to the Contract Officer, or assigned designee, such reports concerning Contracting Party’s performance of the Services required by this Agreement as the Contract Officer, or assigned designee, shall require. Contracting Party hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contracting Party agrees that if Contracting Party becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contracting Party is providing design services, the cost of the project being designed, Contracting Party shall promptly notify the Contract Officer, or assigned designee, of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contracting Party is providing design services, the estimated increased or decreased cost estimate for the project being designed.
7.2 Records. Contracting Party shall keep, and require any subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and 115 CLICK HERE to Return to Agenda
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enable the Contract Officer, or assigned designee, to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer, or assigned designee, shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records.
Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contracting Party’s business, custody of the Books and Records may be given to City, and access shall be provided by Contracting Party’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds Ten Thousand Dollars ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.
7.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium prepared or caused to be prepared by Contracting Party, its employees, subcontractors, and agents in the performance of this Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered to City upon request of the Contract Officer, or assigned designee, or upon the expiration or termination of this Agreement, and Contracting Party shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contracting Party will be at City’s sole risk and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall not extend to such use, revise, or assignment. Contracting Party may retain copies of such Documents and Materials for its own use. Contracting Party shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contracting Party fails to secure such assignment, Contracting Party shall indemnify City for all damages resulting therefrom.
7.4 In the event City or any person, firm, or corporation authorized by City reuses said Documents and Materials without written verification or adaptation by Contracting Party for the specific purpose intended and causes to be made or makes any changes or alterations in said Documents and Materials, City hereby releases, discharges, and exonerates Contracting Party from liability resulting from said change.
The provisions of this clause shall survive the termination or expiration of this Agreement and shall thereafter remain in full force and effect.
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7.5 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contracting Party shall require all subcontractors, if any, to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contracting Party represents and warrants that Contracting Party has the legal right to license any and all of the Documents and Materials. Contracting Party makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contracting Party or provided to Contracting Party by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
7.6 Release of Documents. The Documents and Materials shall not be released publicly without the prior written approval of the Contract Officer, or assigned designee, or as required by law. Contracting Party shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City.
7.7 Confidential or Personal Identifying Information. Contracting Party covenants that all City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussion notes, or other information, if any, developed or received by Contracting Party or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contracting Party to any person or entity without prior written authorization by City or unless required by law. City shall grant authorization for disclosure if required by any lawful administrative or legal proceeding, court order, or similar directive with the force of law. All City data, data lists, trade secrets, documents with personal identifying information, documents that are not public records, draft documents, discussions, or other information shall be returned to City upon the termination or expiration of this Agreement.
Contracting Party’s covenant under this section shall survive the termination or expiration of this Agreement.
8. ENFORCEMENT OF AGREEMENT.
8.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contracting Party covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.
8.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long 117 CLICK HERE to Return to Agenda
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as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer, or assigned designee; provided that if the default is an immediate danger to the health, safety, or general welfare, City may take such immediate action as City deems warranted.
Compliance with the provisions of this Section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to this Article 8.0. During the period of time that Contracting Party is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during any period of default.
8.3 Retention of Funds. City may withhold from any monies payable to Contracting Party sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Contracting Party in the performance of the Services required by this Agreement.
8.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. City’s consent or approval of any act by Contracting Party requiring City’s consent or approval shall not be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contracting Party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
8.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
8.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.
8.7 Termination Prior To Expiration of Term. This Section shall govern any termination of this Agreement, except as specifically provided in the following Section for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Contracting Party. Upon receipt of any notice of termination, Contracting Party shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer, or assigned designee. Contracting Party shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services 118 CLICK HERE to Return to Agenda
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authorized by the Contract Officer, or assigned designee, thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, or assigned designee, except amounts held as a retention pursuant to this Agreement.
8.8 Termination for Default of Contracting Party. If termination is due to the failure of Contracting Party to fulfill its obligations under this Agreement, Contracting Party shall vacate any City-owned property which Contracting Party is permitted to occupy hereunder and City may, after compliance with the provisions of Section 8.2, take over the Services and prosecute the same to completion by contract or otherwise, and Contracting Party shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contracting Party for the purpose of setoff or partial payment of the amounts owed City.
8.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing party in the conduct of the litigation.
Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose.
9. CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.
9.1 Non-liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contracting Party, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Contracting Party or to its successor, or for breach of any obligation of the terms of this Agreement.
9.2 Conflict of Interest. Contracting Party covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contracting Party’s performance of the Services under this Agreement. Contracting Party further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer, or assigned designee. Contracting Party agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. 119 CLICK HERE to Return to Agenda
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No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contracting Party warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
9.3 Covenant against Discrimination. Contracting Party covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contracting Party shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
10. MISCELLANEOUS PROVISIONS.
10.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section.
To City:
CITY OF LA QUINTA
Attention: Alfred Berumen
78495 Calle Tampico
La Quinta, California 92253
To Contracting Party:
F.M. Thomas Air Conditioning, Inc.
Attention: Michael Feyka
231 Gemini Ave
Brea, CA 92821
10.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
10.3 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
10.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.
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10.5 Integrated Agreement. This Agreement including the exhibits hereto is the entire, complete, and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and none shall be used to interpret this Agreement.
10.6 Amendment. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contracting Party and by the City Council of City. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.
10.7 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.
10.8 Unfair Business Practices Claims. In entering into this Agreement, Contracting Party offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contracting Party without further acknowledgment of the parties.
10.9 No Third-Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.
10.10 Authority. The persons executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below.
CITY OF LA QUINTA,
a California Municipal Corporation
JON MCMILLEN, City Manager
City of La Quinta, California
Dated:
F.M. THOMAS AIR CONDITIONING,
INC.:
By:
Name:
Title:
ATTEST:
MONIKA RADEVA, City Clerk
City of La Quinta, California
By:
Name:
Title:
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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Exhibit A
Exhibit A
Scope of Services
1. Services to be Provided:
Complete HVAC controls and Mechanical replacement and repair services, including but not limited to: HVAC maintenance, repair and replacement services on an on-call, asneeded basis. The proposed work includes providing regularly scheduled HVAC maintenance services and appropriate supplies to effectively and safely maintain functioning HVAC systems for specified City facilities in accordance with the best standards of practice. The services and tasks to be performed include the furnishing of all labor, materials, tools, equipment, supplies, tasks, and incidental and customary work necessary to competently perform HVAC services, repair, and replacement work at various City facilities, projects, and locations.
Provide all labor and additional materials to maintain, repair or replace existing heating, ventilating and air conditioning systems including but not limited to:
• Inspect and identify a variety of HVAC systems at a variety of facilities (City Hall, Library, Wellness Center, Museum, Fire Stations (3), Silver Rock Resort, Silver Rock Event Building, Park Buildings (2), X-Park building, Public Works building and the Old Lumber Yard)
• Replace, repair, and perform preventative maintenance of a variety of HVAC systems (Air cooled chiller units, air cooled condensing units, air handling units, fan coil units, boilers, packaged units, mini splits, split system heat pumps, and evaporative coolers)
• Inspect units for needed preventative maintenance, repairs and replacement (contactors, fan motors, capacitors, fuses, and belts)
• Replace all filters and wash coils quarterly or as needed • Inspect air handler motors, pulleys and belts, lubricate, and replace as needed • All condensation drains cleaned, clear of clogs and debris • Other typical and common miscellaneous HVAC repairs and work • Replacement of ageing units as needed to include units requiring R-22 • The work should include all preparation, replacement and repairs unless otherwise stated by the City
• All replacement materials to be used will be approved by the Facilities Superintendent
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Exhibit A
• All filters to be provided by the City
• All work shall be to applicable codes and to the satisfaction of the City • Contractor shall have a dedicated technician for emergencies available to respond within 2 hours
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Exhibit A
ADDENDUM TO AGREEMENT
Re: Scope of Services
If the Scope of Services include construction, alteration, demolition, installation, repair, or maintenance affecting real property or structures or improvements of any kind appurtenant to real property, the following apply:
1. Prevailing Wage Compliance. If Contracting Party is a contractor performing public works and maintenance projects, as described in this Section 1.3, Contracting Party shall comply with applicable Federal, State, and local laws. Contracting Party is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 16000, et seq., (collectively, the “Prevailing Wage Laws”), and La Quinta Municipal Code Section 3.12.040, which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if construction work over twentyfive thousand dollars ($25,000.00) and/or alterations, demolition, repair or maintenance work over fifteen thousand dollars ($15,000.00) is entered into or extended on or after January 1, 2015 by this Agreement, Contracting Party agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the DIR. Contracting Party will maintain and will require all subcontractors to maintain valid and current DIR Public Works contractor registration during the term of this Agreement. Contracting Party shall notify City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contracting Party’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contracting Party to determine the correct salary scale. Contracting Party shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contracting Party’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contracting Party must forfeit to City TWENTY-FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contracting Party does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contracting Party also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. In addition to the other indemnities provided under this Agreement, Contracting Party shall defend (with counsel selected by City), indemnify, and hold City, 125 CLICK HERE to Return to Agenda
Exhibit A
its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Contracting Party shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contracting Party acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws.
Contracting Party shall require the same of all subcontractors.
2. Retention. Payments shall be made in accordance with the provisions of Article 2.0 of the Agreement. In accordance with said Sections, City shall pay Contracting Party a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said invoice. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contracting Party within sixty (60) days after final acceptance of the Services by the City Council of City, after Contracting Party has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contracting Party from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contracting Party’s obligations under the Agreement.
3. Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunk-line utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contracting Party for any costs incurred in locating, repairing damage not caused by Contracting Party, and removing or relocating such unidentified utility facilities. Contracting Party shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
4. Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply:
(a) Contracting Party shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contracting Party believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement. 126 CLICK HERE to Return to Agenda
Exhibit A
(b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contracting Party’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of the Agreement. (c) in the event that a dispute arises between City and Contracting Party whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contracting Party’s cost of, or time required for, performance of any part of the work, Contracting Party shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contracting Party shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties.
5. Safety. Contracting Party shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contracting Party shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
6. Liquidated Damages. Since the determination of actual damages for any delay in performance of the Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contracting Party shall be liable for and shall pay to City the sum of One Thousand dollars ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements, if any, described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contracting Party any accrued liquidated damages. 127 CLICK HERE to Return to Agenda
Exhibit B
Exhibit B
Schedule of Compensation
For the avoidance of doubt, the compensation thresholds on this Exhibit B do not include compensation for Additional Services (if any) authorized pursuant to Section 1.7 and compensated pursuant to Section 2.3 of this Agreement.
Contract Sum
Compensation for Services shall not exceed the following Contract Sum for the entire life of this Agreement including the Initial and Extended terms: Three Million Eight Hundred Thousand Dollars ($3,800,000), to be paid for duly authorized Services performed consistent with the terms and conditions of this Agreement.
Contracting Party expressly acknowledges and agrees that the Contract Sum in this Agreement is the aggregate total amount covering this Agreement, that certain Agreement for Contract Services by and between the City and Pacific West Industries, Inc., and that certain Agreement for Contract Service by and between the City and Rivco Mechanical Services, Inc., of or about even date as this Agreement, such that the Contract Sum as defined herein is the maximum amount available for services provided under both agreements.
The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party’s schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement.
Initial Term:
FY 2025/26 $200,000
FY 2026/27 $600,000
FY 2027/28 $600,000
FY 2028/29 $600,000
FY 2029/30 $600,000
Extended Term:
FY 2030/31 $600,000
FY 2031/32 $600,000
128 CLICK HERE to Return to Agenda
Exhibit C
129 CLICK HERE to Return to Agenda
Exhibit C
Exhibit C
Schedule of Performance
Contracting Party shall complete all services identified in the Scope of Services, Exhibit A of this Agreement.
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Exhibit D
Exhibit D
Special Requirements
None.
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Exhibit E
Exhibit E
Insurance Requirements
E.1 Insurance. Prior to the beginning of and throughout the duration of this Agreement, the following policies checked below shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A-VI:
Commercial General Liability (at least as broad as ISO CG 0001):
$1,000,000 per occurrence/$2,000,000 aggregate OR
$2,000,000 per occurrence/$4,000,000 aggregate
Must include the following endorsements:
General Liability Additional Insured
General Liability Primary and Non-contributory
Commercial Automobile Liability (at least as broad as ISO CA 0001):
$1,000,000 combined single limit for bodily injury and property damage Auto Liability Additional Insured
Workers’ Compensation (per statutory requirements):
Statutory Limits / Employer’s Liability $1,000,000 per accident or disease OR Must include the following endorsements:
Workers’ Compensation Endorsement with Waiver of Subrogation Workers’ Compensation Declaration of Sole Proprietor
California Workers' Compensation Requirements Acknowledgement Professional Liability (Errors and Omissions):
Errors and Omissions liability insurance with a limit of not less than $1,000,000 per claim
Cyber Liability
$1,000,000 per occurrence/$2,000,000 aggregate
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Exhibit E
Contracting Party shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Commercial General Liability insurance against all claims for injuries against persons or damages to property resulting from Contracting Party’s acts or omissions rising out of or related to Contracting Party’s performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. An endorsement evidencing the foregoing and naming the City and its officers and employees as additional insured (on the Commercial General Liability policy only) must be submitted concurrently with the execution of this Agreement and approved by City prior to commencement of the services hereunder.
Contracting Party shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Contracting Party, its officers, any person directly or indirectly employed by Contracting Party, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contracting Party’s performance under this Agreement. If Contracting Party or Contracting Party’s employees will use personal autos in any way on this project, Contracting Party shall provide evidence of personal auto liability coverage for each such person. The term “automobile” includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contracting Party’s performance hereunder and neither City nor its insurers shall be required to contribute to such loss.
Contracting Party shall carry Workers’ Compensation Insurance in accordance with State Worker’s Compensation laws with employer’s liability limits no less than $1,000,000 per accident or disease.
Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Contracting Party and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement.
Contracting Party shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss which shall include the following coverage:
a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination or use of the 133 CLICK HERE to Return to Agenda
Exhibit E
confidential information.
b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems.
c. Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended.
d. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deeplinking or framing, and infringement or violation of intellectual property rights.
e. Liability arising from the failure to render professional services.
If coverage is maintained on a claims-made basis, Contracting Party shall maintain such coverage for an additional period of three (3) years following termination of the contract.
Contracting Party shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased.
In the event any of said policies of insurance are cancelled, Contracting Party shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Exhibit to the Contract Officer. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contracting Party’s obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents.
E.2 Remedies. In addition to any other remedies City may have if Contracting Party fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Contracting Party to stop work under this Agreement and/or withhold any payment(s) which become due to Contracting Party hereunder until Contracting Party demonstrates compliance with the requirements hereof. c. Terminate this Agreement.
Exercise any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Contracting Party’s failure to maintain or secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to which Contracting Party may be held responsible for payments of damages to persons or 134 CLICK HERE to Return to Agenda
Exhibit E
property resulting from Contracting Party’s or its subcontractors’ performance of work under this Agreement.
E.3 General Conditions Pertaining to Provisions of Insurance Coverage by Contracting Party. Contracting Party and City agree to the following with respect to insurance provided by Contracting Party:
1. Contracting Party agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees, and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contracting Party also agrees to require all contractors, and subcontractors to do likewise.
2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contracting Party, or Contracting Party’s employees, or agents, from waiving the right of subrogation prior to a loss. Contracting Party agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.
3. All insurance coverage and limits provided by Contracting Party and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Contracting Party shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.
7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all the coverages required and an additional insured endorsement to Contracting Party’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contracting Party or deducted from sums due Contracting Party, at City option. 135 CLICK HERE to Return to Agenda
Exhibit E
8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contracting Party or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self-insurance available to City.
9. Contracting Party agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Contracting Party, provide the same minimum insurance coverage required of Contracting Party.
Contracting Party agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contracting Party agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.
10. Contracting Party agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein (with the exception of professional liability coverage, if required) and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contracting Party’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Contracting Party, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.
11. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contracting Party ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contracting Party, the City will negotiate additional compensation proportional to the increased benefit to City.
12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement.
13. Contracting Party acknowledges and agrees that any actual or alleged failure on the part of City to inform Contracting Party of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.
14. Contracting Party will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.
15. Contracting Party shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with 136 CLICK HERE to Return to Agenda
Exhibit E
other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contracting Party’s insurance agent to this effect is acceptable. A certificate of insurance and an additional insured endorsement is required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages.
16. The provisions of any workers’ compensation or similar act will not limit the obligations of Contracting Party under this agreement. Contracting Party expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials, and agents.
17. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive.
18. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties here to be interpreted as such.
19. The requirements in this Exhibit supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit.
20. Contracting Party agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contracting Party for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
21. Contracting Party agrees to provide immediate notice to City of any claim or loss against Contracting Party arising out of the work performed under this agreement.
City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 137 CLICK HERE to Return to Agenda
Exhibit F