Agenda packet, regular meeting — Palm Desert City Council, August 24, 2023 (part 2 of 4)

08/24/2023 Question & Answer Memo

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ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024

LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has $9,000 to cover everyone's local meetings for the year, rather than to the individual discretionary budget for contributions/meetings of $2,500 per councilmember? A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual councilmember discretionary budget would be an appropriate source for payment of Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500 available.

ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND

FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park? A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.

Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the parks for most of the year, especially when outdoor sports are taking place.

ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREEYEAR TERM FROM FY2024/2025 TO FY2026/2027 Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies to move to other specialized units? Does “reporting out ALPR data” include record requests out of state? Can we get these reports after the first quarter, and monthly thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they can return to patrol duty sooner which increases their ability to proactively patrol the community. With the City’s ALPR program going live last October, the City has reported out to the Public Safety Committee and City Council on the number of cases ALPR has helped solve and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in the process of creating a “Transparency Portal” which will include shared agencies and out-ofstate agency requests. Once the portal is live, the City will include its information into the regular updates to the Public Safety Committee and City Council.

Q2: What is the annual cost for the California Identification System and Records Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]? A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.

The cost of the Records Management System (RMS) is $117,577. This is a system that stores records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the California Law Enforcement Telecommunications System (CLETS). These systems are utilized by Sheriff’s Department personnel on a regular basis in performance of their work duties.

Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)? A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm Desert Station Commander. The City, through the City Manager, has a say in who is

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08/24/2023 Question & Answer Memo

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appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is selected by the Sheriff’s Department.

Q5: Administrative fees will not be charged to the City if those charges are provided free of charge to any City in the County. Does Palm Desert get charged the same fees as others for services charged to other cities (Page 587, Section 7)? A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service that is available to all areas of the County. These fees are those types of charges described in Section 7 and not included in the contract rate. They include Special Investigations Bureau, SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the same rate as all other contract cities.

Q6: What is the average annual cost for miscellaneous costs? What is the annual budget allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for blood draws, blood analysis, sexual assault exams and other related items that law enforcement will request from the approved provider if needed for the investigation.

Q8: What is the timeline in which RSO agrees to return records as requested (Page 589, Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the requirements of the California Public Records Act.

ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –

OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES Q1: Can the timeline be extended for additional days since residents were understandably focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a final map and associated ordinances are adopted in advance of the April deadline.

ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER

5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS

LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed? A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City Council held the revocation hearing on Sweet Spot, but it was not appealed to the district court. AZ Spa canceled its license, and the revocation hearing did not occur.

In the 15 years prior, the City initiated seven license revocations and City staff is not aware that any were appealed.

ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111 AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word "not," as in "will not render" (Page 671)?

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A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance standards.” City staff will proceed with correcting the original resolution for the official record.

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Thomas Soule, Public Affairs Manager
REQUEST: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING &

BUSINESS IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE RECOMMENDATION:

1. Authorize Amendment No. 2 to El Paseo Parking and Business Improvement District (EPPBID) contract C43370 with FG Creative in the amount of $250,000 for Fiscal Year (FY) 2023/24.

2. Authorize the City Attorney to make non-substantive changes to the contract.

3. Authorize the City Manager to execute the agreement on behalf of the City.

BACKGROUND/ANALYSIS:

On behalf of the EPPBID, the City entered into a three-year marketing contract with FG Creative that began on July 1, 2022. FY 2023/24 represents the second year of that agreement. Each year, Exhibit C of the contract is updated to reflect the approved budget amount for the current fiscal year, which is based on projected EPPBID revenues. The FY 2023/24 EPPBID budget of $250,000 was approved by Council on June 22, 2023.

The scope of work for this contract includes:
 Develop a comprehensive, strategic, and diversified media plan that promotes El Paseo to its target audience.
 Negotiate, schedule, and maintain media buys in accordance with the approved media plan.
 Provide media administrative services.
 Develop and implement a monthly merchant outreach program.  Attend and present pertinent updates at the- monthly EPPBID Board meetings.  Provide monthly and quarterly reports summarizing project activities and achievements.  Submit detailed invoices to include the projects and services for the previous month's activities.
 Develop an annual branding campaign and create all graphic assets as needed to fulfill the media plan and all outbound marketing.
 Create a strategic Social Media Plan and manage all aspects of the EPPBID social media channels.
 Manage Public Relations efforts as needed on behalf of the EPPBID.

The $250,000 includes pass-through costs for all media buys, which are billed to the City at net cost without markup by the agency.

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City of Palm Desert
Second Amendment to the EPPBID Contract with FG Creative

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Appointed Body Recommendation:

At its regular meeting on July 20, 2023, the EPPBID Board approved its annual budget of $250,000 for FY 2023/24.

FINANCIAL IMPACT:

Funds are available in the EPPBID FY 2023/24 budget. There is no impact to the General Fund.

ATTACHMENTS:

1. Contract C43370

2. Draft Amendment No. 2 to Contract C43370

3. Amendment No.1 to Contract C43370

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C43370
any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. Failure to comply with laws, regulations, and ordinances listed in this Section is a violation of federal and state law.

Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies of this Section.

3.6. Fees and Payments.

A. Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) without written approval of the City Council or City Manager, as applicable.

8. Payment of Compensation. Consultant shall submit to City monthly invoices which provide a detailed description of the Services including all supporting documentation, and hours rendered by Consultant. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Consultant shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Consultant to submit a timely invoice may constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever.

C. Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.

D. Extra Work. At any time dur ng the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.7. Labor Code Requirements.

Prevailing Wages. Consultant is aware of the requirements of California labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage laws"), 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, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement.

Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or 12

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Contract No. C43370

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BBK 72500.00001\32445060.1
AMENDMENT NO. 2 TO THE PROFESSIONAL CONSULTANT SERVICES

AGREEMENT FOR MARKETING SERVICES

BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE

1. Parties and Date.

This Amendment No 2 to the PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR MARKETING SERVICES is made and entered into as of this 24th day of August 2023, by and between the City of Palm Desert (“City”) and FG Creative, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. Recitals.

2.1 Agreement. The City and FG Creative have entered into an agreement entitled “Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide Marketing Services.

2.2 Amendment. The City and FG Creative desire to amend the Agreement to establish compensation for the second year of the contract. The Parties have heretofore entered into that Amendment No. 1 dated May 11, 2023.

3. Terms.

3.1 3.6.A Compensation is hereby amended in its entirety to read as follows:

Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Fifty Thousand Dollars ($250,000) without the written approval of the City Council or City Manager, as applicable.

3.2 “Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto and incorporated herein by reference.

3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2.

3.5 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

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Contract No. C43370

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BBK 72500.00001\32445060.1

3.6 Counterparts. This Amendment No. 2 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together, shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]

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Contract No. C43370

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BBK 72500.00001\32445060.1
SIGNATURE PAGE FOR AMENDMENT NO. 2 TO THE PROFESSIONAL CONSULTANT

SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF

PALM DESERT AND FG CREATIVE
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 2 to the Professional Consultant Services Agreement for Marketing Services as of the day and year first above written.

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Best Best & Krieger LLP
City Attorney

FG CREATIVE, A CORPORATION
By:

Its:

Printed Name:

By:

Its:

Printed Name:

QC: _____
Insurance:
_____
Initial Review
_____
Final Approval

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Contract No. C43370

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BBK 72500.00001\32445060.1

7. EXHIBIT “C”

7.1 COMPENSATION
• The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the CITY's fiscal year budget for the period of July 1, 2023 - June 30, 2024, at $250,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:
• The CITY will pay FG CREATIVE a flat fee of $3,250 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.
• FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.
• FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.
• FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract.

7.2 RENEWAL
In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San BernardinoOntario, CA.

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Contract No. C43370

CITY OF PALM DESERT
AMENDMENT NO. 1 TO PROFESSIONAL CONSULTANT SERVICES AGREEMENT TO MARKETING SERVICES CONTRACT No. C43370
This AMENDMENT (“Amendment”) to the FG Creative Professional Consultant Services Agreement for Marketing Services No. C43370 is made as of May 11, 2023 (“Effective Date”) by and between the CITY OF PALM DESERT, a municipal corporation organized under the laws of the State of California, having a principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, (the "Authority") and FG Creative, Inc., a California Corporation with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties.”

RECITALS
A. The City of Palm Desert is a municipal corporation organized under the laws of the State of California.

B. The Consultant is engaged in the business of providing professional marketing consulting services to public clients and has represented to the City that the Contractor is experienced and competent in said business.

C. The City and Consultant desire to enter into this Amendment to the Agreement.

D. The Parties entered into that certain Professional Consultant Services Agreement for Marketing Services Contract No. C43370, by and between the City of Palm Desert and FG Creative, Inc., dated June 23, 2022 (“Contract”), which was effective on July 1, 2022.

NOW, THEREFORE, the Parties agree to amend the Contract as follows:

Section 3.6.A Compensation shall be amended to read: “Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Ninety Thousand Dollars ($290,000.00) without written approval of the City Council or City Manager, as applicable.”
All other terms of the Contract to remain unchanged and in full force and effect.

DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19

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Contract No. C43370
IN WITNESS THEREOF, the Parties have executed this Amendment on the date first above written.

CITY OF PALM DESERT FG CREATIVE, INC.

By: ____________________________ By: __________________________ L. Todd Hileman Stephanie Greene
City Manager Principal
Attest:

Anthony J. Mejia
City Clerk
Approved as to Form:
______________________________
Best, Best, & Krieger LLP
City Attorney
QC: MN
INSURANCE:

INITIAL REVIEW

FINAL REVIEW
DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19

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Contract No. C43370

7. EXHIBIT “C”

7.1 COMPENSATION
The CITY's budget for advertising and publicizing the EPPBID's facilities, services and events is established as part of the CITY's fiscal year budget for the period of July 1, 2022 - June 30, 2023, at $290,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:
 The CITY will pay FG CREATIVE a flat fee of $3,500 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto.

The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.
 FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.
 FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.
 FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract.

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CITY OF PALM DESERT
CITY MANAGER’S OFFICE

INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting:

ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL

ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website? A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2, Administration and Personnel, to access the bylaws. In the coming days, City staff will also update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the applicable bylaws.

Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the City Council deems it appropriate to appoint a nonresident who offers specific expertise. In these circumstances, the City Council was unaware that the candidates where nonresidents and therefore did not make a finding or determination that it was necessary to appoint a nonresident for special expertise.

Q3: What measures have been implemented to ensure applicants live within city boundaries as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered voters of the City or their residences are located within City limits. Going forward, City staff will verify the voter registration and/or residential address is within City limits prior to interviews and will ensure that the interview documents indicate whether a candidate is a nonresident.

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ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE

HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS

PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist in housing affordable to extremely low-income households. It is difficult to locate adequate and affordable housing if there is a limited supply of larger units. Prices for larger units tend to be affordable only to moderate- and above-moderate income households. Based on the need of units for larger families for lower income households and to maintain the feasibility of the Project, the three-bedroom units were allocated primarily for extremely low households.

Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page 299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is provided in the selection from the waitlist when a unit becomes available. The developer will establish a policy on the selection of Households or individuals from the waiting list, including any preference. In accordance with the implemented preferences, Veterans will have priority.

Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2 Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City is provided any findings. Only when there are findings or concerns does the City exercise the option described in Section 5.2; the City has exercised this option minimal times.

ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS

IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI) measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its small budget work hard to help achieve its goals. The ultimate goal is to bring people to the street to help support the many stores, galleries, and restaurants in the district. In terms of marketing, they’ve had great success with social media, raising brand awareness and inviting people to the street whenever there is any kind of activation. The partnership with Palm Springs Life has also been beneficial, using direct email, a dedicated website, and physical pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of people reached, and their engagement with the content provided through each medium.

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ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024

ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND

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appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is selected by the Sheriff’s Department.

ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –

ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER

5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS

In the 15 years prior, the City initiated seven license revocations and City staff is not aware that any were appealed.

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Jessica Gonzales, Housing Manager
REQUEST: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT

PALM DESERT APARTMENTS PROJECT
RECOMMENDATION:

1. Approve the attached Housing Agreement by and between the City of Palm Desert and A0358 Monterey, a California Limited Partnership, (“Owner”), in accordance with the conditions of approval of the development, of 176 units known as The Crossings at Palm Desert Apartments, a multifamily rental housing project located at the southeast corner of Dick Kelly Drive, Palm Desert, California (the “Project”).

2. Authorize the City Manager or his designee, to finalize the Housing Agreement, and the documents described in the Agreement or otherwise deemed necessary or proper to effectuate the Housing Agreement and conditions of approval, with such changes thereto as the City Manager or his designee, in consultation with the City’s legal counsel, may deem appropriate or necessary and consistent with the purposes of the Housing Agreement and conditions of approval, with such approval to be conclusively evidenced by the execution and delivery thereof.

3. Authorize the Mayor and/or City Manager or their designee, to execute and deliver, for and in the name of the City, the Housing Agreement and other documents, as described in Recommendation No. 2, and authorize the City Clerk to record the Housing Agreement.

BACKGROUND/ANALYSIS:

The apartment project known as “The Crossings at Palm Desert Apartments” was approved on July 14, 2022, by the Planning Commission by adoption of Resolution No. 2814. As part of the project’s approval, the developer is required to enter into a Housing Agreement in order to effectuate the conditions for an affordable housing requirement. Without this agreement in place, the developer cannot obtain building permits.

As part of the City Council of the City of Palm Desert Resolution No. 2814, approved July 14, 2023, the apartment site was approved by the Planning Commission subject to the requirement for the developer to restrict one hundred percent (100%) of the units for lower income households at affordable rents.

The apartment project is now owned by A0358 Monterey, LP., and the conditions requiring affordable housing on the site, set forth in Resolution No. 2814, run with the land. A0358 Monterey has agreed to restrict 100% of the units to be affordable as required by the condition of approval. The apartment project will include 176 total rental units. A0358 Monterey has agreed to make 174 of the rental units continuously available to and occupied by, or held vacant for occupancy by, households with incomes not exceeding 80% of the area median income (“AMI”)

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City of Palm Desert
Crossings at Palm Desert Apartments Project – Housing Agreement

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in Riverside County at affordable rents. The 174 units and 2 on-site property management units will be restricted as affordable by the various funding sources. The City’s Housing Agreement will be restricting thirty-five (35) units to households with income not exceeding 80% AMI.

Simultaneously, the Palm Desert Housing Authority will be restricting one hundred thirty-nine (139) units to households with incomes not exceeding 59%AMI. In aggregate, the Project will provide 174 units restricted as affordable. The units will be restricted for 55 years, commencing upon the issuance of a final Certificate of Occupancy for the apartment project.

Staff, therefore, recommends approval of the Housing Agreement in accordance with the requirement of the affordable housing condition of approval.

Strategic Plan:

One of the priorities of the City of Palm Desert’s (“City”) Envision Palm Desert Strategic Plan, as part of Land Use, Housing and Open Space, is to facilitate development of high-quality housing for people of all income levels. This request meets that objective by diversifying the City’s housing stock for moderate- and lower-income households.

Environment Review:

The Crossings at Palm Desert Apartments project was approved by the Palm Desert Planning Commission (PC) under PC Resolution No. 2814 on July 14, 2022. The project was evaluated pursuant to the requirements of the California Environmental Quality Act (CEQA). Pursuant to the State CEQA Guidelines Section 15183, an Initial Study was prepared which concluded that the project is consistence with the adopted Palm Desert General Plan Environmental Impact Report (EIR) (SCH #2015081020). CEQA Guidelines Section 15183 allows for a streamlined environmental review process for projects, which are consistent with the development density established by existing zoning, community plan, or general plan policies for which an EIR was certified, except as might be necessary to examine whether there are project-specific significant effects, which are peculiar to the Project or its sites. If the above qualifications are met, as stated in Section 15183(b), “a public agency shall limit its examination of environmental effects to those which the agency determines, in an initial study or other analysis: (1) are peculiar to the Project or the parcel on which the Project would be located, (2) were not analyzed as significant effects in a prior EIR on the zoning action, general plan, or community plan, with which the Project is consistent, (3) are potentially significant off-site impacts and cumulative impacts which were not discussed in the prior EIR prepared for the general plan, community plan or zoning action, or the project’s CEQA Section 15183 Analysis, (4) are previously identified significant effects which, as a result of substantial new information, which was not known at the time the EIR was certified, are determined to have a more severe adverse impact than discussed in the prior EIR.” This document has been prepared to satisfy the requirements of CEQA Guidelines Section 15183. It analyzes the potential environmental effects of the Project and evaluates whether they were adequately analyzed in a prior EIR such that the above-identified streamlining criteria apply. The Project is consistent with the Palm Desert General Plan Update (General Plan Update), for which an EIR (SCH No. 2015081020) was certified. The approval of the Housing Agreement is consistent with the project approval and will not result in significant alterations to the project approval. Therefore, the analysis prepared for the project satisfies the requirements of CEQA

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City of Palm Desert
Crossings at Palm Desert Apartments Project – Housing Agreement

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FINANCIAL IMPACT:

There is no direct fiscal impact on the City resulting from the approval of the Housing Agreement.

ATTACHMENTS:

1. City Draft Housing Agreement for The Crossings at Palm Desert Apartments.

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DRAFT
P6401-0001\2850495v1.doc

RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:

City of Palm Desert Housing
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Jessica Gonzales
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY
This Document is recorded for the benefit of the City of Palm Desert and is exempt from recording fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code.

HOUSING AGREEMENT
by and between
the CITY OF PALM DESERT HOUSING
and
A0358 MONTEREY, L.P.

A CALIFORNIA LIMITED PARTNERSHIP
DATED AS OF _________ ____, 2023

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ARTICLE 1. DEFINITIONS AND INTERPRETATION.................................................................... 1

1.1 Definitions................................................................................................................... 1

1.2 Rules of Construction .............................................................................................. 2 ARTICLE 2. ONGOING PROJECT OBLIGATIONS...........................................................................3

2.1 Project and Affordable Units..................................................................................3

2.2 Residential Rental Property ....................................................................................3

2.3 80% AMI Low Income Households....................................................................3

2.4 Affordable Rent..........................................................................................................4

2.5 Rent Increases.............................................................................................................4

2.6 Income Recertification of Affordable Units.......................................................4

2.7 Lease or Occupancy Agreement............................................................................5

2.8 Security Deposits.......................................................................................................6

2.9 Additional Information; Books and Records.....................................................6

2.10 Specific Performance................................................................................................6

2.11 Audit ..............................................................................................................................6

2.12 Management ................................................................................................................6

2.13 Management Contract...............................................................................................7

2.14 Binding for Term........................................................................................................8 ARTICLE 3. TERM AND RECORDATION ...........................................................................................8

3.1 Term of Agreement ...................................................................................................8

3.2 Agreement to Record ................................................................................................8

3.3 Suspension of Restrictions......................................................................................8 ARTICLE 4. DEFAULT; REMEDIES .......................................................................................................8

4.1 An Event of Default ..................................................................................................8

4.2 Option to Lease...........................................................................................................9

4.3 City Remedies.............................................................................................................9

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TABLE OF CONTENTS (cont’d)
Page
3 P6401-0001\2850495v1.doc

4.4 Action at Law; No remedy Exclusive ................................................................10 ARTICLE 5. GENERAL PROVISIONS..................................................................................................10

5.1 Limitations on Recourse ........................................................................................10

5.2 Maintenance, Repair, Alterations........................................................................10

5.3 Notices.........................................................................................................................10

5.4 Relationship of Parties............................................................................................11

5.5 No Claims...................................................................................................................11

5.6 Conflict of Interests.................................................................................................12

5.7 Non-Liability of Officials, Employees and Agents........................................12

5.8 Unavoidable Delay; Extension of Time of Performance..............................12

5.9 Indemnity....................................................................................................................12

5.10 Rights and Remedies Cumulative .......................................................................12

5.11 Applicable Law.........................................................................................................13

5.12 Severability................................................................................................................13

5.13 Legal Actions............................................................................................................13

5.14 Binding Upon Successors......................................................................................13

5.15 Time of the Essence ................................................................................................13

5.16 Approval by the City...............................................................................................13

5.17 Complete Understanding of the Parties.............................................................13

5.18 Covenants to Run With the Land ........................................................................13

5.19 Burden and Benefit..................................................................................................14

5.20 Counterparts ..............................................................................................................14

5.21 Amendments..............................................................................................................14

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TABLE OF CONTENTS (cont’d)
Page
4 P6401-0001\2850495v1.doc
EXHIBIT A Legal Description of Property
EXHIBIT B Household Income Certification
EXHIBIT C Certificate of Continuing Compliance
EXHIBIT D 2023 Rental Rates

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HOUSING AGREEMENT
THIS HOUSING AGREEMENT (the “Agreement”) is dated as of ______________ ___, 2023, and is by and between the CITY OF PALM DESERT HOUSING, a public body, corporate and politic (the “City”), and A0358 MONTEREY, L.P., A CALIFORNIA LIMITED PARTNERSHIP (the “Owner”). City and Owner are sometimes referred to herein individually as a “Party” and collectively as “Parties”.

RECITALS
This Agreement is predicated upon the following facts:

A. The Owner owns the property located in the City of Palm Desert, County of Riverside, State of California, more particularly described on Exhibit “A” attached hereto (“Site”).

B. As described in Resolution No. 2814 adopted by the City’s Planning Commission, a Precise Plan application submitted by the Owner was approved for a 176-unit multi-family (affordable housing) development community consisting of four (4) three-story apartment buildings, five (5) two-story apartment buildings, a single-story clubhouse, pool area, private outdoor recreation areas, and associated parking areas on an 11-acre site ("Project").

C. The Project approvals described in Recital B, above, require that Owner execute and record this Agreement against the Site and the Project.

D. This Agreement shall not be subordinate or subordinated to any deeds of trust or other liens encumbering the Site or Project.

NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Authority and the Owner hereby agree as follows:

ARTICLE 1. DEFINITIONS AND INTERPRETATION.

1.1 Definitions.

Capitalized terms used herein shall have the following meanings unless the context in which they are used clearly requires otherwise.
“Affordable Units” shall mean 35 of the 176 units in the Project available to and occupied by, or held vacant for occupancy only by 80% AMI Low Income Households, and rented at an Affordable Rent. Specifically, the Affordable Units consist of 35 units for 80% AMI Low Income

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Households. The Affordable Units will include the number of bedrooms shown on the following table:

Bedroom Size 80% AMI Low Income Household
Affordable Units
One 15
Two 19
Three 1
Total 35
“Affordable Rent” shall mean rent for an Affordable Unit, including a Reasonable Utility Allowance, as determined in accordance with the applicable provisions of Code Section 42 and in a manner consistent with the maximum rents published by the TCAC. “AMI” shall mean the area median income for Riverside County as published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50052.5, or successor statute, as adjusted for family size in accordance with the state regulations adopted pursuant to California Health and Safety Code Section 50052.5, provided, however, that at any time the Project is subject to a CTCAC extended use agreement, CTCAC’s rules and regulations regarding area median income shall control.” “Code” means the Internal Revenue Code of 1986, as amended, and regulations promulgated pursuant thereto.
“CTAC” means the California Tax Credit Allocation Committee. “Household Size Appropriate to the Affordable Unit” shall have the meaning set forth in California Health and Safety Code Section 50052.5(h), as amended from time to time. “80% AMI Low Income Household” shall mean persons and families whose income does not exceed the qualifying limits for lower income households set forth in California Health and Safety Code Section 50079.5 and Title 25 of the California Code of Regulations, including Section 6912, as such statute and regulations may be amended from time to time. “Reasonable Utility Allowance” shall mean a utility allowance for utilities paid by a tenant (not including telephone, internet or cable service) utilizing the utility allowance schedule published annually by the Housing Authority of the County of Riverside or as calculated using the California Utility Allowance Calculator developed by the California Energy Commission and approved by CTCAC.
“Required Covenant Period” shall mean the period commencing on the date all units in the Project have been completed as evidenced by the City’s issuance of a final Certificate of Occupancy for the Project, and ending as of the fifty-fifth (55th) anniversary thereof.

1.2 Rules of Construction.

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1.2.1 The singular form of any word used herein, including the terms defined herein shall include the plural and vice versa. The use herein of a word of any gender shall include correlative words of all genders.

1.2.2 Unless otherwise specified, references to articles, sections, and other subdivisions of this Agreement are to the designated articles, sections, and other subdivisions of this Agreement as originally executed. The words “hereof,” “herein,” “hereunder,” and words of similar import shall refer to this Agreement as a whole.

1.2.3 All of the terms and provisions hereof shall be construed to effectuate the purposes set forth in this Agreement and to sustain the validity hereof.

1.2.4 Headings or titles of the several articles and sections hereof and the table of contents appended to copies hereof shall be solely for convenience of reference and shall not affect the meaning, construction, or effect of the provisions hereof.

ARTICLE 2. ONGOING PROJECT OBLIGATIONS.

2.1 Project and Affordable Units.

The Owner shall develop and construct the Project on the Site in conformity with the applicable governmental permits, approvals and the Loan Agreement. Thereafter, during the Required Covenant Period, the Owner agrees that not less than 35 units in the Project shall be Affordable Units, meaning that 35 of and such units shall be continually available to and occupied by, or held vacant for occupancy only by, 80% AMI Low Income Households, and the Owner shall use good faith efforts to give preference to military veterans. All of the rental units in the Project shall be similarly constructed and generally constructed at the same time. All of the rental units in the Project shall be of comparable quality. The Owner agrees that, to the extent commercially reasonable, Affordable Units will not be underutilized. No persons shall be permitted to occupy any Affordable Unit in excess of applicable limit of maximum occupancy set by the City’s Municipal Code and the laws of the State of California, or by Authority Resolution HA-84 adopted on December 14, 2017.

2.2 Residential Rental Property.

The Owner covenants to operate the Project as residential rental property. During the Required Covenant Period, the Affordable Units will be held and used for the purpose of providing residential living, and the Owner shall own, manage and operate, or cause the management and operation of, the Project to provide such affordable rental housing. All of the rental units in the Project with the exception of two (2) two-bedroom manager units will be available for rental on a continuous basis to members of the general public and the Owner will not give preference to any particular class or group in renting the units in the Project, except for the above good faith preference for military veterans, and except as required under any other required regulatory agreement for the Project. The Owner shall not convert any Affordable Unit(s) to condominiums or cooperative ownership or sell condominium or cooperative conversion rights to any Affordable Unit(s) during the term of this Agreement.

2.3 80% AMI Low Income Households.

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2.3.1 Income Qualification; Initial Certification. Subject to the applicable provisions hereof, throughout the Required Covenant Period, Affordable Units will be exclusively occupied by, or available for occupancy only by, 80% AMI Low Income Households as described above. Prior to the rental or lease of an Affordable Unit and in accordance with Section 2.6 hereof, the Owner will obtain and maintain on file a Household Income Certification (“Income Certification”) substantially in the form attached hereto as Exhibit “B” and incorporated herein by this reference for each 80% AMI Low Income Household, and shall provide copies of same to the City at such times as the City may, from time to time, reasonably require. In addition, the Owner will provide such further information as may reasonably be required in the future by the City. The Income Certification shall be dated immediately prior to the applicable household’s initial occupancy of an Affordable Unit. The Owner shall make a good faith effort to verify that the income provided by an applicant in an Income Certification is accurate by taking any one or more of the following steps as part of the verification process for all household members over the age of eighteen (18) as appropriate:
(i) Obtain two (2) pay stubs for the two (2) most recent pay periods; (ii) Obtain a true copy of an income tax return for the most recent tax year in which a return was filed;
(iii) Obtain an income verification form from the household member’s current employer;
(iv) Obtain an income verification form from the Social Security Administration and/or the State Department of Social Services, or its equivalent, if the household member receives assistance from either of those agencies; (v) If the household member is unemployed and has no tax return, obtain another form of independent verification; or
(vi) Obtain such other documentation as may be reasonably acceptable pursuant to Title 25 of the California Code of Regulations or CTCAC, as amended from time to time, to verify income.

2.3.2 Certificate of Continuing Program Compliance; Annual Report; Annual Monitoring/Administration Fee. Throughout the Required Covenant Period, the Owner will prepare and submit to the City, at such periodic frequency as the City might reasonably require, but not more than once annually, a Certificate of Continuing Compliance in substantially the form attached hereto as Exhibit “C” and incorporated herein by this reference, and executed by the Owner. The Owner will also prepare and submit to the City on or before each anniversary date of the commencement of the Required Covenant Period, and for the preceding calendar year, a report in form and substance reasonably satisfactory to the City summarizing the vacancy rate of the Project , including the number of Affordable Units held vacant for occupancy by 80% AMI Low Income Households for such calendar year, including the number of Affordable Units rented to military veterans.

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2.4 Affordable Rent. Throughout the Required Covenant Period, an Affordable Rent shall be charged to the 80% AMI Low Income Household occupants of Affordable Units, as more specifically described above.

2.5 Rent Increases. Rents for Affordable Units may be increased not more than once per year and twelve (12) months must have elapsed since the date of the tenant’s initial occupancy or the last rent increase. The rents charged following such an increase, or upon a vacancy and new occupancy by an 80% AMI Low Income Household shall not exceed the Affordable Rent. The Owner shall, consistent with applicable law, give proper written notice to tenants of all rent increases, and upon written request, provide the City with reasonable detail concerning the amount of and rationale for such rent increases.

2.6 Income Recertification of Affordable Units. Annually, on the anniversary date of occupancy of an Affordable Unit by an 80% AMI Low Income Household, the Owner shall obtain and maintain on file an annual income certification, in form and substance reasonably satisfactory to the City (but CTCAC’s required form of income certification shall be deemed satisfactory, together with any other information reasonably requested by the City Manager of the City), from each household occupying an Affordable Unit, based upon the current income of each household member over the age of eighteen (18). The Owner shall make a good faith effort to verify that the income provided by the household is accurate in accordance with Section 2.3.1, above.

2.6.1 A rental unit occupied by a household that qualifies as an 80% AMI Low Income Household at the time the household first occupies an Affordable Unit shall be deemed to continue to be so occupied until a recertification of such household’s income demonstrates that such household no longer qualifies as an 80% AMI Low Income Household. At such time as a household ceases to qualify as an 80% AMI Low Income Household, as applicable, based on income recertification, such Affordable Unit shall continue to be treated as a qualifying household for purposes of Owner’s compliance with this Agreement, provided, however, that the Owner shall designate the next available Affordable Unit (one that is not occupied by a tenant) with the same number of bedrooms as the occupied Affordable Unit and it shall be leased to an 80% AMI Low Income Household so that the number of Affordable Units occupied by or reserved for occupancy by 80% AMI Low Income Households will remain constant. For purposes of this Agreement, such designated unit will be considered an Affordable Unit if it is held vacant and available solely for occupancy by an 80% AMI Low Income Household and, upon occupancy, the income eligibility of the household as an 80% AMI Low Income Household is verified and the unit is rented at the applicable Affordable Rent.

2.7 Lease or Occupancy Agreement. Prior to the rental or lease of an Affordable Unit to an 80% AMI Low Income Household, the Owner shall require the tenant to execute a written lease or occupancy agreement. The Owner shall maintain on file throughout the Required Covenant Period and for a four (4) year period thereafter, the executed lease or occupancy agreement of each tenant occupying an Affordable Unit. The form of lease or occupancy agreement used by the Owner for the lease or rental of Affordable Units shall be that which is reasonable and customary in affordable residential leasing. In addition, each lease or occupancy agreement for an Affordable Unit shall (i) provide that the tenants of such Affordable Unit shall be subject to annual recertification of income and subject to rental increases in accordance with Sections 2.5 and 2.6 of this Agreement, and (ii) contain a provision to the effect that the Owner

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has relied on the income certification and supporting information supplied by the tenant in determining qualification for occupancy of the Affordable Unit, and that any material misstatement in such certification (whether or not intentional) may be cause for immediate termination of such lease or occupancy agreement.

2.7.1 The Owner shall refrain from restricting the rental or lease of Affordable Units on the basis of race, color, religion, sex, marital status, disability, ancestry or national origin of any person.

2.7.2 The covenants established herein shall, without regard to technical classification and designation, be binding for the benefit and in favor of the City, and its successors and assigns, and shall burden and run with the Site.

2.7.3 The City is deemed to be the beneficiary of the terms and provisions of the covenants herein, both for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, for whose benefit these covenants running with the land have been provided.

2.8 Security Deposits. The Owner may require security deposits on Affordable Units in amounts which are consistent with applicable law.

2.9 Additional Information; Books and Records. The Owner shall provide any additional information concerning the Affordable Units reasonably requested by the City . The Owner will maintain complete and accurate records pertaining to the Affordable Units throughout the Covenant Period and for a four (4) year period thereafter. The City shall have the right upon written notice of no less than two (2) business days to the Owner, at any time during normal business hours of 9:00 am to 5:00 pm, to examine of all books, records or other documents maintained by the Owner or by any of the Owner’s agents which pertain to any Affordable Unit, including all executed leases or occupancy agreements and all Income Certifications, and obtain copies of any requested executed leases, occupancy agreements and Income Certifications within ten (10) business days following such examination and the City’s written request.

2.10 Specific Performance. The Owner hereby agrees that specific enforcement of the Owner’s agreement to comply with the allowable rent and occupancy restrictions and covenants contained herein is one of the reasons and consideration for the City having entered into the Loan Agreement, and that, in the event of the Owner’s breach of such requirements, potential monetary damages to the City, as well as to existing and prospective 80% AMI Low Income Households, would be difficult, if not impossible, to evaluate and quantify. Therefore, in addition to any other relief to which the City may be entitled as a consequence of the breach hereof, the Owner agrees to the imposition of the remedy of specific performance against it in the case of any event of default by the Owner in complying with any provision of this Agreement beyond any applicable notice and cure period.

2.11 Audit. The City shall have the right to perform an audit of the Project to determine compliance with the provisions of this Agreement. Such audit shall not be undertaken more often than once each calendar year. All costs and expenses associated with the audit shall be paid by the Owner.

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2.12 Management. The Owner and/or the management agent (if not the Owner) shall operate the Project in a manner that will provide decent, safe and sanitary residential facilities to the occupants thereof, and will comply with provisions of this Agreement. Upon the written request of the City, the Owner shall cooperate with the City in the periodic review (but not more than once each calendar year) of the management practices and financial status of the Affordable Units, which shall include a description of the means by which preference is given in good faith to military veterans. The purpose of each periodic review will be to enable the City to determine if the Affordable Units are being operated and managed in accordance with the requirements and standards of this Agreement. Results of such City review shall be provided to the Owner, and, if the City finds evidence of material noncompliance the City shall have the right to require the Owner to make modifications that are reasonably necessary to ensure the objectives of this Agreement are met.

2.13 Management Contract. The Owner shall cause the Project to be managed in a prudent and business-like manner, consistent with good property management standards for other comparable high quality, well-managed affordable rental housing projects in the City of Palm Desert. The Owner shall be responsible for all repair and maintenance functions of the Project, including ordinary maintenance and replacement of capital items. The Owner shall ensure maintenance of units and common areas in accordance with local health, building and housing codes. The Owner shall contract with an experienced property management company or property manager, to operate and maintain the Project (“Property Manager”). Such contract shall be subject to prior written approval by the City and shall contain a provision allowing the Owner to terminate the contract without penalty upon no more than thirty (30) days' notice.

The Owner will develop a management plan and submit such plan to the City for reasonable approval (the “Property Management Plan”). The Property Management Plan shall include the following:
a. The role and responsibility of the Owner and its delegation of authority, if any, to the Property Manager;
b. Personnel policy and staffing arrangements, including ongoing training of staff in best practices for serving the Project tenants; c. Plans and procedures for publicizing and achieving early and continued occupancy;
d. Procedures for determining tenant eligibility, and selecting tenants, and for certifying and annually recertifying household status, income and size; e. Plans for carrying out an effective maintenance and repair program; f. Rent collection policies and procedures;
g. Plans for enhancing tenant-management relations;
h Appeal and grievance procedures;

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i. Description of how service staff and property management staff will work together to prevent evictions and to facilitate the implementation of reasonable accommodation policies.

Upon a determination by the City that the Property Manager has failed to operate the Project in accordance with the Property Management Plan, the City shall provide written notice to the Owner specifying the Property Manager's breach of the Property Management Plan and providing the Owner with thirty (30) days to cure the specified breach. If the Owner shall fail to cure the specified breach within such thirty (30) day despite its good faith effort to do so, and if such cure is of the nature to take longer than thirty (30) days, the Owner shall commence the cure during the thirty (30) day period and complete the cure by the City’s of one hundred eighty (180) days following the Owner’s receipt of the City’s notice, or in such other time period as the parties may mutually agree. If the Owner has failed to cure the breach of the Property Management Plan by the expiration of the relevant cure period, the City may immediately provide a written notice of such failure to the Owner and the Owner shall promptly terminate the existing Property Manager and contract with an alternative qualified management agent reasonably acceptable to the City to operate the Project, or to make such other arrangements as the City deems reasonably necessary to ensure performance of the functions and obligations set forth in Property Management Plan.

Notwithstanding the foregoing, any change in property management must also be approved by California Debt Limit Allocation Committee (CDLAC), California Tax Credits (CTAC), and the lenders and investors involved in the Project if required by such parties.

2.14 Binding for Term. It is intended by the Parties that except as otherwise expressly provided herein, the provisions of this Agreement shall apply to the Project throughout the entire term hereof, as established in Section 3.1 below.

ARTICLE 3. TERM AND RECORDATION.

3.1 Term of Agreement. This Agreement shall remain in full force and effect for the Required Covenant Period, unless the Owner and the City agree, in writing, to terminate this Agreement prior to the expiration of the Required Covenant Period. Unless terminated earlier pursuant to the prior sentence of this Section 3.1, the Parties intend that the provisions and effect of this Agreement and specifically of Article 2 hereof, shall remain in full force and effect for the entire Required Covenant Period.

3.2 Agreement to Record. The Owner represents, warrants, and covenants that this Agreement will be recorded in the real property records of Riverside County.

3.3 Suspension of Restrictions. Notwithstanding the generality of the foregoing provisions of this Article 3 or any other provisions hereof, this Agreement and all of the terms and restrictions contained herein shall be suspended for any period of involuntary noncompliance as a result of unforeseen events such as fire or act of God which leaves the entire Project uninhabitable (and the proceeds of insurance available to the Owner as a result thereof are insufficient to reconstruct the Project), or a change in a federal or state law or an action by the federal government, the State or a court of competent jurisdiction, after the date of recordation hereof, that prevents the City from enforcing the provisions of this Agreement, or a condemnation or a similar event.

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ARTICLE 4. DEFAULT; REMEDIES.

4.1 An Event of Default. Each of the following shall constitute an “Event of Default” by the Owner under this Agreement:

4.1.1 Failure by the Owner to duly perform, comply with and observe any of the conditions, terms, or covenants of any agreement with the City concerning the Project, or of this Agreement, if such failure remains uncured thirty (30) days after written notice of such failure from the City to the Owner in the manner provided herein or, with respect to a default that cannot be cured within thirty (30) days, if the Owner fails to commence such cure within such thirty (30) day period or thereafter fails to diligently and continuously proceed with such cure to completion.

However, if a different period or notice requirement is specified under any other section of this Agreement, then the specific provision shall control.

4.1.2 Any representation or warranty contained in this Agreement or in any application, financial statement, certificate, or report submitted by the Owner to the City proves to have been incorrect in any material respect when made.

4.1.3 A court having jurisdiction shall have made or rendered a decree or order:
(i) adjudging the Owner to be bankrupt or insolvent; (ii) approving as properly filed a petition seeking reorganization of the Owner or seeking any arrangement on behalf of the Owner under the bankruptcy laws or any other applicable debtor’s relief law or statute of the United States or of any state or other jurisdiction; (iii) appointing a receiver, trustee, liquidator, or assignee of the Owner in bankruptcy or insolvency or for any of its properties; or (iv) directing the winding up or liquidation of the Owner, providing, however, that any such decree or order described in any of the foregoing subsections shall have continued unstayed or undischarged for a period of ninety (90) days.

4.1.4 The Owner shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment or execution on any substantial part of its property, unless the property so assigned, sequestered, attached, or executed upon shall have been returned or released within ninety (90) days after such event (unless a lesser time period is permitted for cure hereunder) or prior to sale pursuant to such sequestration, attachment, or execution. If the Owner is diligently working to obtain a return or release of the property and the City’s and the City’s interests hereunder are not imminently threatened in its reasonable business judgment, then the City shall not declare a default under this subsection.

4.1.5 The Owner shall have voluntarily suspended its business or dissolved.

4.1.6 The seizure or appropriation of all or, in the reasonable opinion of the City, a substantial part of the Project, except for condemnation or similar event initiated by the City or any other governmental agency or authority.

4.1.7 There should occur any default declared by any lender under any loan document or deed of trust relating to any loan made in connection with the Project, which loan is secured by a deed of trust or other instrument affecting the Project, and such default remains uncured following the expiration of any applicable cure period.

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4.2 Option to Lease. Upon the occurrence and during the continuance of an Event of Default, to cause the Project to meet the requirements of this Agreement, the Owner hereby grants to the City the option to lease up to all of the Affordable Units as necessary to achieve compliance with the provisions of Article 2 of this Agreement and for the purpose of subleasing such units in accordance with the requirements of this Agreement. The amount of rental to be paid for such rental units following the exercise of the option by the City shall be equal to the Affordable Rent.

Any rental paid under any such sublease shall be paid to the City without obligation to pay any such rent to the Owner during the pendency of the Owner’s default. Upon acceptance by the City of a cure by Owner or by owner’s limited partner, any lease for Affordable Units with the City shall terminate and the City shall assign all subleases to Owner.

4.3 City Remedies. The City shall have the right to mandamus or other suit, action or proceeding at law or in equity to require the Owner to perform its obligations and covenants under this Agreement or to enjoin acts or things which may be unlawful or in violation of the provisions hereof, provided that in any such case the City has first provided the required notice of any alleged default and the Owner has had the requisite opportunity to cure pursuant to Section 4.1.1, above.

4.4 Action at Law; No Remedy Exclusive. The City may take whatever action at law or in equity as may be necessary to enforce performance and observance of any obligation, agreement or covenant of the Owner under this Agreement. No remedy herein conferred upon or reserved by the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law, in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of such right or power, but any such right or power may be exercised from time to time and as often as the City may deem expedient. In order to entitle the City to exercise any remedy reserved to it in this Agreement, it shall not be necessary to give any notice, other than such notice as may be herein otherwise expressly required or required by law to be given.

ARTICLE 5. GENERAL PROVISIONS.

5.1 Limitations on Recourse. Notwithstanding anything to the contrary contained in this Agreement, except in the event of fraud, intentional waste, or illegal acts, or with regard to any indemnity obligations imposed upon the Owner under the terms of this Agreement, (i) no partner, member, officer or director, as applicable, of the Owner (each, an “Owner Affiliate”) shall have any direct, indirect or derivative personal liability for the obligations of the Owner under this Agreement, and (ii) the City shall not exercise any rights or institute any action against any Owner Affiliate directly, indirectly or derivatively for the payment of any sum of money that is or may become payable hereunder.

5.2 Maintenance, Repair, Alterations. The Owner shall maintain and preserve the Project in good condition and repair and in a prudent and businesslike manner. The Owner shall comply with all laws, ordinances, rules, regulations, covenants, conditions, restrictions, and orders of any governmental authority now or hereafter affecting the conduct or operation of the Project or any part thereof or requiring any alteration or improvement to be made thereon. The Owner shall not commit, suffer, or permit any act to be done in, upon, or to the Project or any part thereof

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in violation of any such laws, ordinances, rules, regulations, or orders. The Owner hereby agrees that the City may conduct from time to time (but not more than once per calendar year unless an Event of Default is ongoing) through representatives, upon reasonable notice of no less than fortyeight (48) hours and subject to the rights of tenants, on-site inspections and observation of: (i) the maintenance and repair of the Project, including a review of all maintenance and repair programs and practices and all reports and records pertaining thereto, including records of expenditures relating thereto; and (ii) such other facilities, practices, and records of the Owner relating to the Affordable Units as the City reasonably deems to be necessary or appropriate in order to monitor the Owner’s compliance with the provisions of this Agreement.

5.3 Notices. All notices (other than telephone notices), certificates or other communications (other than telephone communications) required or permitted hereunder shall be sufficiently given and should be deemed given when personally delivered, when sent by telegram, or when sent by facsimile (if confirmed by sending a copy of such transmission by mail the same calendar day), or forty-eight (48) hours following mailing by registered or certified mail, postage prepaid, or twenty-four (24) hours following transmission of such notice by express mail, Federal Express or similar commercial carrier, addressed as follows:

If to the City:

City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Housing Division
Phone: (760) 346-0611
Fax: (760) 341-6372
If to the Owner:

A0358 Monterey, L.P.
2000 East 4th Street, Suite 205
Santa Ana, CA 92705
Attn: Mark Bigley
Phone: (714) 323-4006
Email: [email protected]
With a copy to:

Sabelhaus & Strain, LLP
1724 10th Street, Suite 110
Sacramento, CA 95811
Attn: Stephen A. Strain, Esq.

Phone: (916) 444-0286
Email: [email protected]

5.4 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or understood by any of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture

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between the City and the Owner or the Owner’s agents, employees or contractors, and the Owner shall at all times be deemed an independent contractor and shall be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement for the operation of the Project. The Owner has and hereby retains the right to exercise full control of employment, direction, compensation and discharge of all persons assisting in the performance of services hereunder. In regards to the on-site operation of the Project, the Owner shall be solely responsible for all matters relating to payment of its employees, including compliance with Social Security, withholding and all other laws and regulations governing such matters. The Owner agrees to be solely responsible for its own acts and those of its agents and employees.

5.5 No Claims. Nothing contained in this Agreement shall create or justify any claim against the City by any person the Owner may have employed or with whom the Owner may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the operation of the Affordable Units.

5.6 Conflict of Interests. No member, official or employee of the City shall make any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested.

No officer or employee of the Owner shall acquire any interest in conflict with or inimical to the interests of the City.

5.7 Non-Liability of Officials, Employees and Agents. No member, official, employee or agent of the City shall be personally liable to the Owner, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Owner or successor in connection with this Agreement or on any obligation of the City under the terms of this Agreement.

5.8 Unavoidable Delay; Extension of Time of Performance. In addition to specific provisions of this Agreement, performance of a construction obligation by any Party hereunder shall not be deemed to be in default where it is due to an “Unavoidable Delay.” “Unavoidable Delay” means a delay due to the elements (including unseasonable weather), fire, earthquakes or other acts of God, strikes, pandemics, labor disputes, lockouts, shortages of construction materials experienced generally in the construction industry in the local area, acts of the public enemy, riots, insurrections or governmental regulation of the sale or transportation of materials, supply or labor; provided, however, that to the extent a delay is caused by any other reason that the Owner reasonably believes is beyond its control, the Owner may request, on a case-by-case basis, that the City excuse any such delay as an Unavoidable Delay and the City shall make its determinations as to whether such delay constitutes an Unavoidable Delay using its reasonable judgment.

5.9 Indemnity. The Owner shall indemnify, defend and hold harmless the Authority and City, and all of their respective officials, employees and agents (with counsel reasonably satisfactory to the Authority and/or City, as applicable), against any costs, liabilities, damages or judgments arising from claims or litigation of any nature whatsoever brought by third parties and directly or indirectly arising from the Owner’s ownership or operation of the Project, or the Owner’s performance of its obligations under this Agreement, and in the event of settlement, compromise or judgment hold the Authority and City free and harmless therefrom.

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Notwithstanding the foregoing, the indemnity provisions contained in this Section 5.9 shall not apply with respect to any costs, liabilities, damages or judgments arising directly or indirectly from the City’s rental of units within the Project as described in Section 4.2 hereof. The provisions of this Section 5.9 shall survive the term of this Agreement.

5.10 Rights and Remedies Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties are cumulative, and the exercise or failure to exercise one or more of such rights or remedies by either Party shall not preclude the exercise by it, at the same time or different times, of any right or remedy for the same default or any other default by the other Party. No waiver of any default or breach by the Owner hereunder shall be implied from any omission by the City to take action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the waiver, and such wavier shall be operative only for the time and to the extent therein stated. Waivers of any covenant, term, or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term or condition. The consent or approval by the City to any act by the Owner requiring further consent or approval shall not be deemed to waive or render unnecessary the consent or approval to or of any subsequent similar act. The exercise of any right, power, or remedy shall in no event constitute a cure or a waiver of any default under this Agreement, nor shall it invalidate any act done pursuant to notice of default, or prejudice the City in the exercise of any right, power, or remedy hereunder or under any agreements ancillary or related hereto.

5.11 Applicable Law. This Agreement shall be interpreted under and pursuant to the laws of the State of California.

5.12 Severability. If any term, provision, covenant or condition of this Agreement is held in a final disposition by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.

5.13 Legal Actions. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach thereof, the Party prevailing in any such action shall be entitled to recover against the Party not prevailing all reasonable attorneys’ fees and costs incurred in such action (including all legal fees incurred in any appeal or in any action to enforce any resulting judgment), as awarded by a court of competent jurisdiction.

5.14 Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit of the permitted heirs, administrators, executors, successors in interest and assigns of each of the Parties. Any reference in this Agreement to a specifically named Party shall be deemed to apply to any successor, heir, administrator, executor or assign of such Party who has acquired an interest in compliance with the terms hereof or under law.

5.15 Time of the Essence. In all matters under this Agreement, time is of the essence.

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5.16 Approval by the City. Any approvals required under this Agreement to be made by the Authority shall be made by the City Manager of the City or his or her designee. Any such approval or consent shall not be unreasonably withheld, conditioned, delayed or made, except where it is specifically provided herein that another standard applies, in which case the specified standard shall apply.

5.17 Complete Understanding of the Parties. This Agreement and the attached Exhibits constitute the entire understanding and agreement of the Parties with respect to the matters described herein.

5.18 Covenants to Run With the Land. The Owner hereby subjects the Project to the covenants, reservations, and restrictions set forth in this Agreement. The City and the Owner hereby declare their express intent that the covenants, reservations, and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s successors in title to the Project; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Project or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instruments. No breach of any of the provisions of this Agreement shall defeat or render invalid the lien of a mortgage or deed of trust made in good faith and for value encumbering the Property or any interest of the Owner therein.

5.19 Burden and Benefit. The City and the Owner hereby declare their understanding and intent that: (i) the burden of the covenants, reservations, restrictions, and agreements set forth herein touch and concern the Property and the Project, in that Owner’s legal interest in the Project is rendered less valuable thereby, (ii) the covenants, reservations, restrictions, and agreements set forth herein directly benefit the Property and the Project (a) by enhancing and increasing the enjoyment and use of the Project by certain 80% AMI Low Income Households, the intended beneficiaries of such covenants, reservations, restrictions, and agreements, (b) by making possible the obtaining of advantageous financing for the Property and the Project, and (c) by furthering the public purposes advanced by the City, and (iii) the covenants, reservations, restrictions and agreements set forth herein shall run with the Property and shall be binding for the benefit of and enforceable by the City and its successors and assigns for the entire Term of this Agreement.

5.20 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.

5.21 Amendments. This Agreement may be amended only by the written agreement of the City and the Owner.

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[Signatures appear on next page]

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WHEREFORE, the undersigned has executed this Agreement as of the date first-above written.

OWNER:

A0358 MONTEREY, L.P.,
A California limited partnership
By: A0358 Monterey Admin Holdings LLC
A California limited liability company
Its: Administrative General Partner
By:

Name:

Its:

By: A0358 Monterey Holdings LLC,
A California limited liability company
By:

Name:

Its:

CITY:

CITY OF PALM DESERT,
a public body, corporate and politic
By:

Name: Kathleen Kelly
Its: Mayor
ATTEST:

Anthony J. Mejia, City Clerk
APPROVED AS TO FORM:

Robert W. Hargreaves, City Attorney

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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of )
On ____________, 2023, before me, ________________________________________________, (insert name and title of the officer)
Notary Public, personally appeared ________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

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State of California )
County of _
On ____________, 2023, before me, ________________________________________________, (insert name and title of the officer)
Notary Public, personally appeared ________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

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I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

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EXHIBIT “A”

LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Palm Desert, County of Riverside, State of California, described as follows:

PARCEL A AS SHOWN ON CERTIFICATE OF COMPLIANCE (WAIVER OF PARCEL MAP PMW 06-03), AS EVIDENCED BY DOCUMENT RECORDED OCTOBER 25, 2006 AS INSTRUMENT NO. 2006-0782511 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

A PORTION OF PARCELS 1 AND 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, IN THE SOUTHWEST QUARTER (SW1/4) OF SECTION 29, TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, CITY OF

PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29, TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, COUNTY

OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE CENTERLINE OF MONTEREY AVENUE; THENCE N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE NORTHERLY LINE OF PARCEL 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, A DISTANCE OF 1314.94 FEET TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29, THE NORTHERLY LINE OF SAID PARCEL 2 AND CONTINUING ALONG THE NORTHERLY LINE OF PARCEL 1 OF SAID PARCEL MAP WAIVER NO. 99-15, A DISTANCE OF 1314.61 FEET TO THE CENTER ONE QUARTER (C1/4) CORNER OF SAID SECTION 29, SAID POINT BEING ALSO THE NORTHEAST CORNER OF SAID PARCEL 1;
THENCE S00°09'04"E ALONG THE NORTH-SOUTH ONE QUARTER (N-S 1/4) SECTION LINE OF SAID SECTION 29 AND THE EASTERLY LINE OF SAID PARCEL 1, A DISTANCE OF 489.00 FEET TO THE NORTHEAST CORNER OF THAT PARCEL OF LAND

CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT BY GRANT DEED, RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 0308440, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE S89°58'35"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND DESCRIBED IN SAID INSTRUMENT NO. 0308440, A DISTANCE OF 1270.59 FEET TO THE

NORTHWEST CORNER OF THAT PARCEL OF LAND DESCRIBED IN SAID INSTRUMENT NO. 0308440, SAID POINT BEING ALSO A POINT ON A NON TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1700.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS 576°44'54"W;

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THENCE NORTHWESTERLY AND NORTHERLY ALONG THE ARC OF SAID CURVE, A DISTANCE OF 392.48 FEET THROUGH A CENTRAL ANGLE OF 13°13'40"; THENCE N00°01'26"W, A DISTANCE OF 100.00 FEET TO THE POINT OF BEGINNING.

EXCEPT PARCEL NO. 2004-02.12 ("C" STREET), PARCEL NO. 2004-02.11 (AVENUE 35) AND A PORTION OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE), ALL CONVEYED TO THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF

RIVERSIDE, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29, TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, COUNTY

OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE CENTERLINES OF MONTEREY AVENUE AND AVENUE 35; THENCE N89°58'35"E ALONG THE EASTWEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 1314.94 FEET TO THE CENTERLINE INTERSECTION OF SAID AVENUE 35 AND GATEWAY DRIVE; THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 71.07 FEET; THENCE S00°01'25"E, A DISTANCE OF 54.00 FEET TO THE SOUTHERLY LINE OF PARCEL NO. 2004-02.11 (AVENUE 35) CONVEYED TO THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING 54.00 FEET SOUTHERLY OF THE CENTERLINE OF SAID AVENUE 35, AS MEASURED AT RIGHT ANGLES THERETO, SAID POINT BEING ALSO THE TRUE POINT OF BEGINNING;
THENCE N89°58'35"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11 (AVENUE 35), A DISTANCE OF 782.06 FEET TO THE POINT OF CURVATURE OF A CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 946.00 FEET;

THENCE EASTERLY AND SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF 220.33 FEET THROUGH A CENTRAL ANGLE OF 13°20'40" TO A POINT OF REVERSE

CURVATURE OF A CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1054.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS S13°19'14"W; THENCE SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF 185.57 FEET THROUGH A CENTRAL ANGLE OF 10°05'15";
THENCE 552°30'03"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11 (AVENUE 35), A DISTANCE OF 27.78 FEET TO THE WESTERLY LINE OF PARCEL NO. 2004-02.12 ("C" STREET) CONVEYED TO THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;

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THENCE S00°09'04"E ALONG THE WESTERLY LINE OF SAID PARCEL NO. 2004-02.12 ("C" STREET), A DISTANCE OF 365.78 FEET TO THE NORTHERLY LINE OF THAT

PARCEL OF LAND CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT (P.S.U.S.D.) BY GRANT DEED, RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 2006- 0308440, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE 589°58'34"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND DESCRIBED IN SAID INSTRUMENT NO. 2006-0308440 (P.S.U.S.D.), A DISTANCE OF 1176.61 FEET TO THE EASTERLY LINE OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE) CONVEYED TO THE CITY OF PALM SPRINGS BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ALSO A POINT ON A NONTANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1646.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS S76°15'06"W;

THENCE NORTHWESTERLY AND NORTHERLY ALONG THE EASTERLY LINE OF SAID PARCEL NO. 2004-02.10 (GATEWAY DRIVE) AND THE ARC OF SAID CURVE, A DISTANCE OF 392.80 FEET THROUGH A CENTRAL ANGLE OF 13°40'23"; THENCE N00°04'31"W ALONG THE EASTERLY LINE OF SAID PARCEL NO. 2004-02.10 (GATEWAY DRIVE), A DISTANCE OF 28.94 FEET TO THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11 (AVENUE 35);
THENCE N44°57'02"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11 (AVENUE 35), A DISTANCE OF 24.05 FEET TO THE POINT OF BEGINNING.

APN: 694-130-017 (Affects a portion of the land);
694-130-018 (Affects a portion of the land);
694-130-019 (Affects a portion of the land); and
694-130-020 (Affects a portion of the land)

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EXHIBIT “B”

HOUSEHOLD INCOME CERTIFICATION
(Attached.)

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B
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B
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B
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EXHIBIT “C”

CERTIFICATE OF CONTINUING COMPLIANCE

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C
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C
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C
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EXHIBIT “D”
2023 RENTAL RATES

TO BE INSERTED

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CITY OF PALM DESERT
CITY MANAGER’S OFFICE

ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL

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08/24/2023 Question & Answer Memo

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HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS

ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS

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08/24/2023 Question & Answer Memo

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ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024

ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND

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08/24/2023 Question & Answer Memo

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appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is selected by the Sheriff’s Department.

ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –

ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER

5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS

In the 15 years prior, the City initiated seven license revocations and City staff is not aware that any were appealed.

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08/24/2023 Question & Answer Memo

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Níamh M. Ortega, Assistant City Clerk
REQUEST: APPOINT AMY LAWRENCE TO THE COACHELLA VALLEY ECONOMIC PARTNERSHIP’S BOARD OF DIRECTORS
RECOMMENDATION:

Appoint Amy Lawrence to the Coachella Valley Economic Partnership’s Board of Directors.

BACKGROUND/ANALYSIS:

Coachella Valley Economic Partnership (CVEP) consists of representatives of the nine valley cities, unincorporated areas, tribal governments, regional governments, and a variety of businesses throughout the Coachella Valley. The City of Palm Desert provides an annual financial contribution to CVEP and maintains a seat on its Board of Directors.

Councilmember Harnik recently resigned from her position on the Board. Mayor Kelly and City Manager Hileman recommended Deputy Director of Economic Development Lawrence for appointment to the position. Staff requests that the City Council approve the appointment.

FINANCIAL IMPACT:

There is no direct financial impact associated with this action.

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Thomas Soule, Public Affairs Manager
REQUEST: APPROVE OUT-OF-STATE TRAVEL FOR PUBLIC AFFAIRS MANAGER

FOR STRATEGIC MARKETING PLANNING IN AUSTIN, TX
RECOMMENDATION:

Authorize out-of-state travel for the Public Affairs Manager to travel to Austin, TX, for an in-depth strategic planning session with the City’s creative agency, Idea Peddler.

BACKGROUND/ANALYSIS:

Each year, the Public Affairs Manager meets for several days with the City’s creative agency to strategically plan the City’s tourism ad campaign and marketing approach for the fiscal year. In the past, one or two team members from the agency have traveled to Palm Desert for these meetings.

The team working on the City’s account has now grown much larger to accommodate an expanded scope of work. The agency’s contract with the City includes funds for travel, but it seemed imprudent to use those funds to bring five or more people to Palm Desert to meet with one staff member. Instead, staff seeks authorization to send the Public Affairs Manager to Austin to meet with the entire Idea Peddler team. The cost of sending one staff member to Austin is approximately $1,300, versus the cost of bringing five Idea Peddler team members to Palm Desert, which would be more than $6,000.

We understand that virtual meetings have advantages such as convenience, cost savings, and the ability to connect remote team members. This works well in our weekly meetings throughout the year as we monitor the status of the many projects that go into the City's marketing program.

And because collaborative brainstorming sessions often thrive in a physical setting, we've found that our initial planning meetings are much more successful and efficient face-to-face.

Whiteboard sessions, sticky notes, and visual aids are more effective in person, enabling the team to map out complex strategies visually. In-person meetings also offer opportunities for team building beyond just the task at hand, which helps lay a solid foundation for working well together remotely for the rest of the year.

FINANCIAL IMPACT:

Travel costs have been budgeted as part of the Idea Peddler contract as outlined above.

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Niamh Ortega, Assistant City Clerk
REQUEST: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024 LEADERSHIP COACHELLA VALLEY PROGRAM
RECOMMENDATION:

Approve an expenditure in the amount of $1,200 for Mayor Pro Tem Quintanilla to participate in the 2024 Leadership Coachella Valley program.

BACKGROUND/ANALYSIS:

Mayor Pro Tem Quintanilla applied and was selected to participate in the upcoming 10-month Leadership Coachella Valley (LCV) program beginning in September 2023. This program was not identified as a potential expenditure at the time of budget approval for Fiscal Year 2023/24; however, funds are available in the City Council’s local meeting account.

LCV is described as a program designed to identify, motivate, and develop future community leaders and is organized by the Palm Springs Chamber of Commerce. Once a month from September to June, participants attend an all-day seminar in which important community topics and issues are reviewed and discussed. Commitment to participating in Leadership Coachella Valley centers on involvement and participation, and attendance requirements must be fulfilled to graduate. Full program information can be found at www.leadershipcv.org.

FINANCIAL IMPACT:

The cost to participate in LCV is $1,200 per person, which includes ten full-day sessions, lunches, refreshments, class materials, field trips, graduation dinner, and ceremony. Funds are available in Account No. 1104110-4312000.

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CITY OF PALM DESERT
CITY MANAGER’S OFFICE

ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL

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08/24/2023 Question & Answer Memo

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HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS

ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS

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08/24/2023 Question & Answer Memo

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ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024

ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND

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08/24/2023 Question & Answer Memo

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appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is selected by the Sheriff’s Department.

ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –

ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER

5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS

In the 15 years prior, the City initiated seven license revocations and City staff is not aware that any were appealed.

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08/24/2023 Question & Answer Memo

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JOINT

CITY OF PALM DESERT AND PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Celina Cabrera, Management Analyst
REQUEST: CITY COUNCIL AND HOUSING AUTHORITY: APPROVE DOWN PAYMENT ASSISTANCE LOAN FROM THE LOW-AND MODERATEINCOME HOUSING ASSET FUND TO CONTINUE AN AFFORDABLE HOUSING COST FOR THE HOMEOWNERS AT 75-476 WILDFLOWER
LANE
RECOMMENDATION:

1. Approve the issuance of a silent down-payment assistance loan by the Palm Desert Housing Authority pursuant to the Desert Rose Sales Program and standard documents, in the amount of $30,000 to continue an affordable housing cost for the homeowners at 75-476 Wildflower Lane pursuant to California Health and Safety Code Section 50052.5 as a qualified low- or moderate- income household from the Low- and Moderate- Income Housing Asset Fund.

2. Authorize the release of the City’s Deed of Trust recorded December 7, 2012, securing the promissory note for the existing silent down payment BEGIN loan.

3. Authorize waiving the interest on the homeowner’s existing City Loan from the original date the City’s Deed of Trust recorded on December 7, 2012, through the date of release.

4. Approve the Palm Desert Housing Authority’s Housing Asset Fund down payment assistance loan term to be forgivable 30 years from the original City Loan recording of December 7, 2012, so long as all terms of the loan are met by the homeowners.

5. Authorize Director of Finance to transfer $30,000 from the Homebuyer Down Payment Assistance Account No. 8734699-4400100 and reimburse the City in BEGIN Fund.

6. Authorize the City Manager/Executive Director, or designee, to execute, release, and finalize any documents necessary to effectuate the actions taken herewith.

BACKGROUND/ANALYSIS:

In 2012, the current homeowners of a Desert Rose home located at 75-476 Wildflower Lane (“Owner’) were identified as qualified buyers under the Affordable First-Time Homebuyer Program (“Program”). To help qualify for the purchase, a gap financing loan in the amount of $30,000 to assist with the affordability of the home. Prior to dissolution, the former Palm Desert Redevelopment Agency (“PDRDA"), funded such gap loans. During the dissolution period of PDRDA, the agencies’ funding sources were placed on hold and the City shifted in the interim to an alternate funding source, the BEGIN Program, to sustain the Program.

Traditionally the Desert Rose Sale Program loans have been set up as 30-year principal and interest forgivable loans, so long as the homeowners maintain the home as their primary residence and do not default at any point of the term of the restrictive agreement and loan.

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City of Palm Desert
Approve Down Payment Assistance Loan from Housing Asset Fund

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However, post dissolution of the PDRDA, Desert Rose homebuyers were instead provided a down payment assistance loan funded through the City’s BEGIN program, which is not forgivable. This Owner purchased the only home in Desert Rose funded under the BEGIN program.

Recently, the Owner contacted the Housing Division for information related to the property wherein it was discovered that prior to close of escrow, correspondence stating that the down payment assistance loan they were entering into was forgivable and that it generally adhered to the terms of the Desert Rose Sales Program. However, the documents recorded are not reflective of the Desert Rose Program loan as described in the City correspondence issued to the Owners. Given the timing of the Owners’ purchase of their property, it appears that some correspondence was issued with the understanding that PDRDA funds would remain available; by the time the Owner had to close escrow, the Program funding had already been placed on hold and shifted to the alternate City’s BEGIN Program funding.

In accordance with the intent of the Desert Rose program, staff is requesting to provide a new silent down-payment assistance loan in the amount of $30,000. The loan will provide that the term be forgivable 30 years from the original City Loan recording of December 7, 2012, so long as all terms of the loan are met by the Owner. Should the Owner default, or sell, the loan amount and interest from December 7, 2012, will become payable immediately. The City Loan in the amount of $30,000, will be released and the interest on the Owner’s existing City Loan will be waived from the original date the City’s Deed of Trust recorded on December 7, 2012, through the date of release.

Staff recommends approval of the actions described herein to memorialize the original intent by providing a forgivable down payment assistance loan to ensure an affordable housing cost pursuant to the Desert Rose Sales Program.

FINANCIAL IMPACT:

A new $30,000 Homebuyer Down Payment Assistance Loan pursuant to the Desert Rose Sales Program and documents will be recorded for the identified property Owner, funded from Account No. 8734699-4400100. The current $30,000 BEGIN loan will be released and funds will be transferred to the City BEGIN Fund. The fiscal impact to the Housing Asset Fund will be the loans, any cost in preparing and recording the necessary documents, and the amount of interest waived on the homeowner’s existing City Loan from the original date the City’s Deed of Trust recorded on December 7, 2012, through the date of release.

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Christina Canales, Land Development Technician REQUEST: RELEASE GRADING BOND AND REDUCE THE FAITHFUL
PERFORMANCE AND LABOR AND MATERIALS BONDS FOR TR 37993,

MONTAGE
RECOMMENDATION:

1. Reduce the Faithful Performance and Labor and Materials Bonds for TR 37993.

2. Release the Grading Bond in the full amount of $186,906.

BACKGROUND/ANALYSIS:

On June 10, 2021, the City Council approved by Resolution No. 2021-34, a request by GHA Montage P.D., LLC (30875 Date Palm Drive, Suite C-2, Cathedral City, CA 92234) to construct 63 single family homes located at the intersection of Julie Drive and Shepherd Lane.

Bonds in the amount of $1,444,082 for Faithful Performance and $722,041 for Labor and Materials were submitted for public improvements, inclusive of street improvements, storm drain, a traffic signal modification, and striping, at the time of final tract map approval. A separate Grading bond was submitted in the amount of $186,906.

The applicant has made a request to reduce the Faithful Performance ($1,444,082) and Labor and Materials ($722,041) bonds by ninety percent (90%). Staff has verified that the request is reasonable since the improvements are completed and the remaining portion of the improvements have been documented in a list provided to the developer. The reduced Faithful Performance bond amount will be $144,408.20 and $72,204.10 for the reduce Labor and Materials bond. The Grading bond will be released in its full amount of $186,906.

Staff recommends that the City Council authorize the reduction of the Faithful Performance bond and Labor and Materials bonds for public improvements by 90% and release the Grading bond in its entirety.

FINANCIAL IMPACT:

There is no financial impact for the City currently. The applicant will return to City Council to request the acceptance of all improvements and the release of the remaining bonds once final improvements are completed. When public improvements are fully accepted by City Council action the City will then have an obligation to maintain the public improvements.

ATTACHMENTS:

1. Faithful Performance Bond

2. Labor and Materials Bonds

3. Grading Bond

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Shawn Muir, Community Services Manager
REQUEST: AWARD A CONTRACT TO DESERT AIR CONDITIONING, INC., FOR

HEATING, VENTILATION, AND AIR CONDITIONING PREVENTATIVE MAINTENANCE IN THE ANNUAL AMOUNT OF $106,028 (PROJECT NO.

MFA00008)
RECOMMENDATION:

1. Waive any minor proposal irregularities and award a contract to Desert Air Conditioning, Inc., for the Heating, Ventilation and Air Conditioning (HVAC) Preventative Maintenance in the annual amount of $106,028.

2. Authorize extra work and services for HVAC repairs and replacements up to the annual amount of $75,000.

3. Authorize the City Manager or designee to approve up to two, one-year contract amendments/extensions.

4. Authorize the City Manager or designee to review and approve change orders for any unforeseen circumstances per Section 3.30.170 of Ordinance No. 1392.

5. Authorize the City Attorney to make any necessary, non-monetary changes to the Agreement and the authorize the City Manager to execute said agreement.

BACKGROUND/ANALYSIS:

Currently, City staff maintains 14 sites that require HVAC preventative maintenance that keep the units in good working order; repairs that are necessary during their service life, and ultimately the replacement of units that are no longer functioning or are beyond repair. Because of the harsh desert climate, it is imperative that these units be kept in the best condition possible to prevent loss of environmental control, and to reduce overall energy consumption. This service requires a company that can efficiently and effectively respond to the City’s needs.

Staff developed and posted a Request for Proposals (RFP) for the HVAC Preventative Maintenance, Repair, and Replacement Project on OpenGov (the City’s online public bidding portal) on July 11, 2023, with a due date of July 28, 2023.

On the provided Proposal Fee Sheet included with this report, the proposers provided a quarterly charge, and then the total contract price over the initial three-year term. Each proposer was also required to include hourly rate pricing for extra work that may be required during the course of the contract, which would also apply to any labor rates for new equipment installations. The mark-up rate for new units was also set in the RFP at the cost of the unit plus 15%

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City of Palm Desert
Award Contract for HVAC Preventative Maintenance

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The scope of work outlined specific items of work that needed to be accomplished during each preventative maintenance service call for each type of equipment and a complete list of the entire HVAC inventory.

City facilities with HVAC units are shown on the table below:

FACILITY AIR CONDITIONING UNITS EVAPORATIVE COOLERS
City Hall-This includes the Sheriff’s
Substation, Parkview Office Complex,
and the State Building.
45 Civic Center Park-This includes Civic
Center Snack Bar, and the Irrigation
Pump Facility
1 1
Palm Desert Aquatic Center 3
Portola Community Center 5
Portola Desert Historical Society 2
Henderson Building 7
The Artist’s Center 1-Chiller System
Fire Station No. 33 10
Fire Station No. 67 4 2
Fire Station No. 71 3 2
Corporation Yard 9 5
Hovley Soccer Park 1
Freedom Park 1
iHUB 11
A mandatory pre-proposal meeting was held on July 19, 2023. Four vendors attended the preproposal meeting; however, one proposer, RivCo, arrived 40 minutes late. Due the late arrival, a protest letter was received. Staff consulted with City attorney who indicated that the late arrival had no effect on the proposal, so staff continued with the RFP process.

Staff received and reviewed the three qualified proposals and rated them per the evaluation guidelines established in the RFP (clarity and conformance, experience, performance, content of the proposal, and references) as follows:

Proposer Location Proposed Amount Ranking
Desert Air Conditioning, Inc. Palm Springs, CA $318,084 1 RivCo Mechanical Services Indio, CA $298,573 2
Pacific West Industries, Inc. Anaheim, CA $221,079 3
References for each contractor provided favorable comments to their ability to start and complete projects on time, provide good communication, and customer service. However, some of the references for Pacific West Industries were not positive. In addition, RivCo Mechanical Services did not meet the terms of the RFP because they were late attending the mandatory pre-proposal meeting and were subsequently not present for all site visits.

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City of Palm Desert
Award Contract for HVAC Preventative Maintenance

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Desert Air Conditioning, Inc., was ranked 1 based on experience and conformity to the RFP however, the cost was the highest of the three proposals. Therefore, after the qualification selection of Desert Air Conditioning, staff negotiated a lower price that resulted in an overall contract savings of $8,532 ($2,844 annually).

Based on the rank, staff recommends awarding the contract to Desert Air Conditioning, Inc.

Desert Air Conditioning has served the City for the past five years and has always provided excellent service. They are prompt in scheduling the current preventative maintenance, diligent in communicating with City staff any repair issues that are observed, responsive to repair calls 24/7, usually being onsite within two hours. At times when the unit was not repairable, they have provided portable units to allow facilities to remain open and occupied at no charge. For these reasons, staff considers Desert Air Conditioning the best value.

FINANCIAL IMPACT:

The approved Public Works Operations Budget for Fiscal Year (FY) 2023-24 includes $196,000 specifically for HVAC maintenance, repairs, and replacements under various Operations and Capital Improvements Accounts. Therefore, there is no additional financial impact to the general fund.

The following is the estimated allocation budget for each account; however, this does not necessarily mean the full amount will be allocated to each budget nor that the full amount will be spent:

Account No. Description FY 23/24
Budget
Annual
Amount
3-Year
Contract
1104330-4331000 Corporation Yard $12,500.00 $7,532.00 $22,596.00 1104340-4331000 City Hall $25,000.00 $20,000.00 $60,000.00 1104340-4331000 Palm Desert Historical Society $5000.00 $852.00 $2,556.00 1104344-4331000 Portola Community Center $7,500.00 $1,552.00 $4,656.00 1104610-4331000 Civic Center Park $1,000.00 $1,056.00 $3,168.00 1104611-4331000 Hovley Soccer Park $1,500.00 $964.00 $2,892.00 1104611-4331000 Freedom Park $1,500.00 $532.00 $1,596.00 1104800-4388500 Artist’s Center. $5,000.00 $4,960.00 $14,880.00 2304220-4331000 Fire Station No 33 $10,000.00 $7,256.00 $21,768.00 2304220-4331000 Fire Station No 67 $10,000.00 $2,428.00 $7,284.00 2304220-4331000 Fire Station No. 71 $10,000.00 $1,960.00 $5,880.00 2424195-4331101 Aquatic Center $15,000.00 $1,564.00 $4,692.00 4254430-4395000 iHUB $10,000.00 $6,432.00 $19,296.00
5104195-4369500 Sheriff Substation $43,000.00 $25,688.00 $77,064.00 5104195-4369601 Parkview Complex Building $17,000.00 $10,000 $30,000.00 5104195-4369602 State Building $10,000.00 $10,000 $30,000.00 5104195-4369800 Henderson Building $12,500.00 $3,252.00 $9,756.00 TOTAL $196,500.00 $106,028.00
$ 318,084.00

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City of Palm Desert
Award Contract for HVAC Preventative Maintenance

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ATTACHMENTS:

1. Proposal Protest Letter

2. Desert Air Conditioning, Inc. Proposal

3. Desert Air Conditioning, Inc. Revised Proposal Fee Sheet

4. Desert Air Hourly Rate Sheet

5. Desert Air Conditioning, Inc. Maintenance Service Contract

6. Payment and Performance Bonds

7. Rivco Mechanical Services Proposal

8. Pacific West Industries, Inc. Proposal

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City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260

PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
RESPONSE DEADLINE: July 28, 2023 at 4:00 pm
Report Generated: Wednesday, August 2, 2023
Desert Air Conditioning, Inc. Proposal

CONTACT INFORMATION
Company:

Desert Air Conditioning, Inc.

Email:
[email protected]
Contact:

Tina Shaw
Address:
590 S. Williams Road
Palm Springs, CA 92264
Phone:

N/A
Website:
www.desertairps.com

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

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Submission Date:

Jul 27, 2023 12:48 PM

ADDENDA CONFIRMATION
Addendum #1
Confirmed Jul 26, 2023 4:56 PM by Todd Shaw
Addendum #2
Confirmed Jul 26, 2023 4:56 PM by Todd Shaw

QUESTIONNAIRE

1. Proposal (WITHOUT COST)*
Pass
Proposals shall be concise, well organized and demonstrate qualifications and applicable experience. Proposals shall be organized and include page numbers for all pages in the proposal. The proposal shall be uploaded here, in the following order and shall include:

A. Cover Letter

1. This letter should briefly introduce the firm, summarize the firm’s general qualifications, include an executive summary of the specific approach which will be used to deliver the work scope; and identify the individual(s) name, address and phone number authorized to negotiate Agreement terms and compensation.

B. Experience and Technical Competence

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

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1. Background: Provide history of the firm’s experience which specifically addresses the individual or firm’s experience with similar Service as described in this RFP. Include any experience with fully occupied facilities, and secure facilities, such as Fire Stations.

2. References: The proposal shall include a list of recently completed projects that are similar in scope and function to this RFP. Provide a description of the project, client name, and the name, title, and telephone number of the primary contact person.

C. Firm Staffing and Key Personnel

1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as well as your firm’s capacity to provide additional personnel as needed.

2. Key Personnel: Identify key persons that will be principally responsible for working with the City. Indicate the role and responsibility of each individual.

3. Team Organization: Describe proposed team organization, including identification and responsibilities of key personnel.

4. Subcontractors: The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor that is anticipated to perform each function.

D. Proposed Method to Accomplish the Work

1. Describe the technical and management approach to providing the Services to the City. Proposer should take into account the scope of the Services, and general functions required. Include a draft first year schedule of tasks, milestones, and deliverables that will provide for timely provision of the Services. In reviewing the scope of Services and goals described herein, the Proposer may identify additional necessary tasks and is invited to bring these to the City’s attention within the discussion of its proposed method to accomplish the work.

City_of_Palm_Desert_Maintenace_Proposal_Letter_07262023.docBid_Bond_If_Required.pdf

2. Fee Proposal*
Fail

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

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Please provide a lump-sum, not-to-exceed fee proposal for quarterly preventative maintenance work, itemizing each facility. This fee proposal will be extrapolated out for a yearly total preventative maintenance price. The fee proposal shall also include hourly rates for all personnel for “Additional Work” (as such term is defined in the proposed Agreement attached herein).

Proposal_Price_Sheet.pdf

3. Non-Collusion Declaration*
Pass
The undersigned declares:

I am an authorized representative of my company, the party making the foregoing Bid, to certify the following.

The Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The Bid is genuine and not collusive or sham. The Bidder has not directly or indirectly induced or solicited any other Bidder to put in a false or sham bid. The Bidder has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone else to put in a sham bid, or to refrain from bidding. The Bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the Bid Price of the Bidder or any other Bidder, or to fix any overhead, profit, or cost element of the Bid Price, or of that of any other Bidder. All statements contained in the Bid are true. The Bidder has not, directly or indirectly, submitted his or her Bid Price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.

Any person executing this declaration on behalf of a Bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the Bidder.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Confirmed

4. Enter your valid CA Contractors State License Board (CSLB) number* Pass

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

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Please enter your License Number here. This will be verified against the state database. 276586
Click to Verify Value will be copied to clipboard

5. Enter your California Department of Industrial Relations (DIR) Registration number* Pass
Please enter your Public Works Contractor DIR Number. This will be verified against the state database. 1000001209
Click to Verify Value will be copied to clipboard

6. Type of Business*
Pass
C Corporation (if corporation, two signatures are required)

7. Litigation*
Pass
Provide litigation history for any claims filed by your firm or against your firm related to the provision of Services in the last five (5) years (or type "N/A").

N/A

8. Changes to Agreement*
Pass
The City standard professional services agreement contract is included as an attachment herein. The Proposer shall identify any objections to and/or request changes to the standard contract language in this section of the proposal (or type "N/A"). If you are

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

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identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect theCity's decision to enter into an Agreement.

N/A

9. No Deviations from the RFP*
Pass
In submitting a proposal in response to this RFP, Proposer is certifying that it takes no exceptions to this RFP including, but not limited to, the Agreement. If any exceptions are taken, such exceptions must be clearly noted here, and may be reason for rejection of the proposal. As such, Proposer is directed to carefully review the proposed Agreement and, in particular, the insurance and indemnification provisions therein (or type "N/A").

Maximum response length: 5000 characters
N/A

10. Project Team Resumes*
Pass
Submit resumes of all key personnel/support staff that will produce work product for the Services. Describe their qualifications, education, and professional licensing.

Resume.doc

11. List the Signatory(s) Authorized to Sign and Bind an Agreement.* Pass
(If two (2) signatures are required, include the following information for both signatories) A. Full Name
B. Title
C. Physical Business Address

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

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D. Email Address
E. Phone Number
Todd Shaw
Vice President
590 Williams Road
Palm Springs, CA 92264
[email protected]
760-323-3383

12. Certification of Proposal: The undersigned hereby submits its proposal and, by doing so, agrees to furnish services in accordance with the Request for Proposal (RFP), and to be bound by the terms and conditions of the RFP.* Pass
Confirmed

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590 WILLIAMS RD • PALM SPRINGS, CA 92264
(760) 323-3383 • FAX (760) 323-8983
www.desertairps.com
LICENSE NO. 276586
July 26, 2023
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
RFP # 2023-RFP-204 HVAC PREVENTIVE MAINTENANCE, REPAIR AND REPLACEMENT PROJECT # 564-24
Brian Dierken Service technician classified as a Tradesman with Local 364, hired May 2018, has been in trade 10 plus years
Andrew Veres Service technician classified as a Tradesman with Local 364, hired August 2021, has been in trade 10 plus years
Bert Perez Service technician classified as a Journeymen with Local 364, hired February 2004, has been in the trade over 20 years
Manny Montalvo Service technician classified as a Journeyman with local 364, hired June of 2004, has been in trade over 20 years
Albert Valerio Technician assistant, classified as a 2nd year apprentice with local 364, hired February 2021, has been in trade approximately 5 years Lance Harvey Technician assistant, classified as a Tradesman with local 364, hired in May of 2023, has been in trade approximately 5 years
Johnathan Marruquin Technical assistant, classified as a Tradesman with local 364, hired in June of 2023, has been in trade approximately 1 year

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590 WILLIAMS RD • PALM SPRINGS, CA 92264
(760) 323-3383 • FAX (760) 323-8983
www.desertairps.com
LICENSE NO. 276586
2023 RATE CHANGES
Monday through Friday 8:00 am to 6:00 pm $108.00 per hour Monday through Friday after 6:00 pm $148.00 per hour
Saturday and Sunday 8:00 am to 5:00 pm $148.00 per hour Saturday and Sunday after 5:00 pm $216.00 per hour
Holidays $216.00 per hour

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Contract No. ___________
1 Revised 07-2023
BBK 72500.00001\32374943.1

CITY OF PALM DESERT

MAINTENANCE SERVICES AGREEMENT

1. Parties and Date. This Agreement is made and entered into this 15th day of September, 2023, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, (“City”) and Desert Air Conditioning, Inc., a Corporation, with its principal place of business at 590 S. Williams Road, Palm Springs, CA 92264 ("Vendor").

The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. Recitals.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement.

Contractor represents that it is experienced in providing maintenance services to public clients, that it and its subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it is familiar with the plans of City. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

2.2 Project.

The City is a public agency of the State of California and is in need of services for the following project:

HVAC Preventative Maintenance, Repair, and Replacement Project Project No. MFA00008
(hereinafter referred to as “the Project”).

3. Terms.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the maintenance services necessary for the Project (“Services”).

The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state, and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from September 15, 2023, to June 30, 2024, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than 2 additional oneyear terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the

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means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee.

Any personnel performing the Services under this Agreement on behalf of Contractor shall not be employees of City and shall at all times be under Contractor’s exclusive direction and control.

Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Schedule of Services. Contractor shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City.

3.2.4 City’s Representative. The City hereby Martín Alvarez, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement except for increasing compensation. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.5 Contractor’s Representative. Contractor hereby designates Todd Shaw, or his or her designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.6 Coordination of Services. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants, and other staff at all reasonable times.

3.2.7 Standard of Care; Performance of Employees. Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees, and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein.

Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat

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to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.8 Period of Performance Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”).

Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

3.2.9 Disputes. Should any dispute arise respecting the true value of any work done, of any work omitted, or of any extra work which Contractor may be required to do or respecting the size of any payment to Contractor during the performance of this Contract, Contractor shall continue to perform the Work while said dispute is decided by the City. If Contractor disputes the City’s decision, Contractor shall have such remedies as may be provided by law.

3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall keep itself fully informed of and in compliance with all local, state, and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Agreement to the same extent as though set forth herein and will be complied with.

3.2.10.1 Employment Eligibility; Contractor. Contractor certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and subsubconsultants to comply with the same. Contractor certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement and shall not violate any such law at any time during the term of the Agreement.

3.2.10.2 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services.

3.2.10.3 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall comply with all relevant provisions of City’s Minority Business

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Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.2.10.4 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and requirements’ application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by CARB or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.

3.2.10.5 Water Quality Management and Compliance. To the extent applicable, Contractor’s Services must account for, and fully comply with, all local, state and federal laws, rules and regulations that may impact water quality compliance, including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws, rules and regulations of the Environmental Protection Agency and the State Water Resources Control Board; the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Contractor to penalties, fines, or additional regulatory requirements.

3.2.11 Insurance.

3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of City, and prior to commencement of the Services, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(B) Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability

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coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
(a) A drop-down feature requiring the policy to
respond if any primary insurance that would
otherwise have applied proves to be uncollectible in
whole or in part for any reason;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall “follow form” to the underlying
primary policies.
(e) Insureds under primary policies shall also be
insureds under the umbrella or excess policies.
(D) Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives. (E) Fidelity Coverage N/A
(F) Cyber Liability Insurance. N/A
(G) Pollution Liability Insurance N/A

3.2.11.2 Other Provisions and Requirements.
(A) Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract.

City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(B) Duration of Coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by Contractor, his/her agents, representatives, employees, or subconsultants. (C) Primary/Non-Contributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary

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and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement.
(E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, and shall require similar written express waivers and insurance clauses from each of its subcontractors. (G) Enforcement of Contract Provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. 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 all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(I) Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

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(K) Prohibition of Undisclosed Coverage Limitations. 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.
(L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (M) Pass Through Clause. Contractor agrees to ensure that its subconsultants, sub-contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. (N) City’s Right to Revise Specifications. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. (O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(P) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(Q) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor 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, where 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.

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3.2.13 Bonds.

3.2.13.1 Performance Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.

3.2.13.2 Payment Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.

3.2.13.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient, or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within ten (10) days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause.

3.2.13.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best’s rating no less than A:VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

3.2.14 Accounting Records. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.2.15 Work Sites.

3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to

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determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements.

No claim for allowances–time or money–will be allowed as to such matters after commencement of the Services.

3.2.15.2 Field Measurements. Contractor shall make field measurements, verify field conditions, and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract, including any plans, specifications, or scope of work before commencing Services. Errors, inconsistencies, or omissions discovered shall be reported to the City immediately and prior to performing any Services or altering the condition.

3.2.15.3 Hazardous Materials and Differing Conditions. Should Contractor encounter material reasonably believed to be polychlorinated biphenyl (PCB) or other toxic wastes, hazardous substances and hazardous materials as defined in California state or federal law at the site which have not been rendered harmless, the Contractor shall immediately stop work at the affected area and shall report the condition to the City in writing. The City shall contract for any services required to directly remove and/or abate PCBs, hazardous substances, other toxic wastes, and hazardous materials, and shall not require the Contractor to subcontract for such services. The Services in the affected area shall not thereafter be resumed except by written agreement of the City and Contractor.

3.2.16 Loss and Damage. Contractor shall be responsible for all loss and damage which may arise out of the nature of the Services agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Services until the same is fully completed and accepted by City.

3.2.17 Warranty. Contractor warrants all Services under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails

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to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed One Hundred and Six Thousand and Twenty-Eight Dollars ($106,028.00) without written approval of the City Council or City Manager, as applicable.

3.3.2 Payment of Compensation. Contractor shall submit to City monthly invoices which provides a detailed description of the Services and hours rendered by Contractor. City shall, within thirty (30) days of receiving such statement, review the statement and pay all non-disputed and approved charges. Contractor shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Contractor to submit a timely invoice shall constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Contractor. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever.

3.3.2.1 3.3.3 Deductions. City may deduct or withhold, as applicable, from each progress payment an amount necessary to protect City from loss because of: (1) stop payment notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3) sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Agreement; and (4) any other sums which the City is entitled to recover from Contractor under the terms of the Agreement or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such sums.

3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City.

3.3.5 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.

3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), 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 the total compensation is $15,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the

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11 Revised 07-2023
BBK 72500.00001\32374943.1
commencement of this Agreement. Contractor 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 the Contractor’s principal place of business and at the Project site. Contractor shall defend, indemnify, and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

3.3.7 Registration/DIR Compliance. If the Services are being performed as part of an applicable “public works” or “maintenance” project, and if the total compensation is $15,000 or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements.

Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify, and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.4 Termination of Agreement.

3.4.1 Grounds for Termination. City may, by written notice to Contractor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Contractor shall be compensated only for those Services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contractor may not terminate this Agreement except for cause.

3.4.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.

3.4.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

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Contract No. ___________
12 Revised 07-2023
BBK 72500.00001\32374943.1

3.5 General Provisions.

3.5.1 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Contractor: DESERT AIR CONDITIONING, INC.
590 S. Williams Road
Palm Springs, CA 92264
ATTN: Todd Shaw
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: City Clerk
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.2 Indemnification.

3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorneys’ fees and other related costs and expenses except such Claims caused by the sole or active negligence or willful misconduct of the City.

3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City’s choosing and at Contractor’s own cost, expense, and risk, any and all Claims covered by this section that may be brought or instituted against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives as part of any such claim, suit, action, or other proceeding.

Contractor shall also reimburse City for the cost of any settlement paid by the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives as part of any such claim, suit, action, or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees.

Contractor shall reimburse the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.

Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the Contractor, the City, its

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Contract No. ___________
13 Revised 07-2023
BBK 72500.00001\32374943.1
elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.

3.5.3 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. In addition to any and all Agreement requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims, and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.

3.5.4 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.5 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project.

3.5.6 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.8 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to the City include its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.5.9 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

3.5.11 No Third-Party Beneficiaries. Except to the extent expressly provided for in Section 3.5.7, there are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

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Contract No. ___________
14 Revised 07-2023
BBK 72500.00001\32374943.1

3.5.12 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.14 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.15 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.16 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.18 Federal Provisions. [Reserved].
[SIGNATURES ON NEXT PAGE]

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Contract No. ___________
Revised 07-2023
BBK 72500.00001\32374943.1

SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT
AND DESERT AIR CONDITIONING, INC.

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Best Best & Krieger LLP
City Attorney
DESERT AIR CONDITIONING, INC., A

CORPORATION
By:

Its:

Printed Name:

By:

Its:

Printed Name:

Contractor’s License Number and
Classification

DIR Registration Number (if applicable)
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
Bonds: _____

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Contract No. ___________
Exhibit “A” Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “A”

SCOPE OF SERVICES
SP-2. Scope of Service and Terms of Contract

2.1 Contractor shall provide the necessary manpower and equipment to service and maintain the equipment listed in the specified locations, at the level of maintenance and service defined by City.

2.2 Contractor shall provide appropriate equipment and labor for the execution of all maintenance activities. City reserves the right to inspect and/or approve any equipment used in this contract. If City deems the equipment to be in disrepair or inappropriate to the task at hand, City may require that the equipment be removed from the job site and replaced with a different piece of equipment.

2.3 Contractor shall provide personnel fully trained in all phases of HVAC maintenance and operation. Contractor shall provide personnel capable of effective verbal communication with City representatives. If City deems personnel to be inadequate to accomplish the task at hand, City may require that the personnel be removed from the job site and replaced with personnel demonstrating the appropriate level of job knowledge, skills, and verbal communication to effectively accomplish the work.

2.4 Prior to commencement of the contract, designated City representative(s) and the Contractor will perform a mandatory acceptance walk-through inspection of the contract area. It is Contractor’s responsibility to identify to City unacceptable conditions with HVAC systems at the time of the walk-through. At City’s discretion, unacceptable conditions may be resolved by City, or with the Contractor on a “one-time only, extra-work” basis. After such corrections are made, the successor Contractor will be responsible for all contractual services.

2.5 Contractor shall submit a quarterly report to Cora Gaugush, or any person designated by City, for work completed in the preceding quarter. The report is to be submitted no later than the fifth (5th) day following the end of the quarter, and can be sent via email to [email protected]

2.6 Contractor shall remove debris caused by all maintenance activities on the same working day that such debris is accumulated.

SP-3 Refuse Disposal
All refuse collected shall be removed and properly disposed of by Contractor at Contractor’s expense. Disposal of debris shall not be allowed in any City trash can, bin or other City facility (i.e., Corporation Yard or satellite yards), or in any park refuse container unless other arrangements have been authorized by City.

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Contract No. ___________
Exhibit “A” Revised 07-2023
BBK 72500.00001\32374915.1
SP-4 Schedules and Reports
At the pre-commencement meeting, Contractor and City staff will review the Work Schedule submitted by the Contractor. This schedule will be considered the permanent schedule. If, during the first thirty (30) days, an adjustment in the schedule needs to be made, Contractor may submit a revised schedule for approval. Contractor shall adhere to the schedule. City must receive notification of changes to the schedule at least 24 hours in advance. Contractor shall submit a quarterly report to Carlos Hernandez, Facilities Manager, or any other person designated by City, for work completed in the preceding quarter. The report is to be submitted no later than the fifth (5th) day following the end of the quarter, and can be sent via email to [email protected], or faxed to 760-341-7098.

SP-5 License and Certification Requirements
Contractor shall possess all permits and licenses required to comply with city, county, state, or federal laws for the work activities performed, including the use of chemicals.

Contractor assumes responsibility and liability for use of all chemical controls and shall at all times perform chemical applications in accordance with governmental regulations and industry standards for their safe and appropriate use.

At the time that the Bid is submitted, Contractor shall possess current licensure and certification as follows, and the same shall be maintained current and valid for the term of the contract:
• C-20 – Warm Air Heating, Ventilating, and Air Conditioning Contractor At the time of contract award, Contractor shall possess a current City of Palm Desert Business License.

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Contract No. ___________
Exhibit “B” Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “B”

SCHEDULE OF SERVICES
HVAC Equipment List

1. City Hall – 73510 Fred Waring Drive-Includes Sheriff’s Substation, Parkview Building, State Building
• (44) 3-6-ton units
• (2) 10-ton units
• (1) 1-ton split ductless unit
 Filter quantity/size: (30) 16x25x2
(20) 16x16x2
(16) 20x20x2
(12) 16x20x2
(3) 12x24x1
(2) 10x20x1
(2) 16x24x1
(8) 16x20x1
(1) 20x25x2
(6) 12x20x1
(5) 20x20x1
(6) 22x22x1

2. Civic Center Park – 73510 Fred Waring Drive
• (1) Bard Company 4-ton unit (at pump vault)
• (1) Phoenix Manufacturing/Aero Cool evaporative cooler (at snack bar)  Filter quantity/size (1) 20x30x2
 Pad quantity/size (3) cut to size

3. Palm Desert Aquatic Center – 73751 Magnesia Falls Drive • (3) Trane 10-ton rooftop units
 Determine Filter quantity/size on site

4. Portola Community Center – 45480 Portola Avenue
• (1) 3.5-ton unit
• (4) 3.5-ton units
 Filter quantity/size: (1) – 20x25x1
(4) – 14x24x1

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Contract No. ___________
Exhibit “B” Revised 07-2023
BBK 72500.00001\32374915.1

5. Fire Station 67 – 73200 Mesa View
• (2) 3-ton units
• (1) 3.5-ton unit
 Filter quantity/size (3) – 25x20x1
• (3) evaporative cooler units
 Pad quantity/size (9) – cut to size

6. Palm Desert Historical Society – 72861 El Paseo
• (1) 4-ton unit
• (1) 2-ton unit
 Filter quantity/size: (3) 15x20x1
(1) 20x24x1
(1) 20x20x1

7. Henderson Building – 72559 Highway 111
• (1) 4-ton package unit
• (3) 5-ton package units
• (3) 6-ton package units
 Filter quantity/size (24) – 16x16x2
(2) – 16x25x2

8. Artist’s Council – 72-567 Hwy 111
• Chiller System

9. Fire Station 33 – 44400 Town Center Way
• (1) 5-ton package unit
• (2) 7.5-ton package units
• (3) 8.5-ton package units
 Filter quantity/size (6) – 18x24x1
• - Evaporative cooler units - (4) total in Apparatus Bay  Pad quantity/size (12) – cut to size

10.Hovley Soccer Park – 74735 Hovley Lane East
• (1) Phoenix Manufacturing/Aero Cool evaporative cooler (at snack bar)  Pad quantity/size (3) cut to size

11.Corporation Yard - 74705/74605 42nd Avenue

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Contract No. ___________
Exhibit “B” Revised 07-2023
BBK 72500.00001\32374915.1
74705 42nd Avenue
• (2) 1-ton split ductless units
• (2) 5-ton units
 Filter quantity/size (2) – 24x20x1
• 3 evaporative cooler/heating units
 Pad quantity/size (15) – 44x12
74605 42nd Avenue
• (4) 2-ton package units
• (1) 1-ton wall unit
 Filter quantity/size (3) – 14x20x1
(1) – 24x25x1
• (2) evaporative cooler/heating units
 Pad quantity/size (10) – 44x12

12.Freedom Park – 77400 Country Club Drive
• (1) Carrier 4-ton package unit (at snack bar)
 Filter quantity/size (2) 16x25x2

13.Fire Station 71 – 73995 Country Club Drive
• (1) 5-ton package unit
• (2) 8.5-ton package units
 Filter/quantity size (2) – 16x16x1
• (2) PMI evaporative cooler units
 Pad quantity/size (6) – cut to size

14. i-HUB -37023 Cook Street
• (6) rooftop units
• (2) split-system units
• (3) Mini split-system units
 Determine Filter quantity/size on site

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Contract No. ___________
Exhibit “C” Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “C”

COMPENSATION
590 WILLIAMS RD • PALM SPRINGS, CA 92264
(760) 323-3383 • FAX (760) 323-8983
www.desertairps.com
LICENSE NO. 276586
2023 RATE CHANGES
Monday through Friday 8:00 am to 6:00 pm $108.00 per hour Monday through Friday after 6:00 pm $148.00 per hour
Saturday and Sunday 8:00 am to 5:00 pm $148.00 per hour Saturday and Sunday after 5:00 pm $216.00 per hour
Holidays $216.00 per hour
Contractor shall receive compensation, including authorized reimbursements, for all Services

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Contract No. ___________
Exhibit “C”

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to DESERT AIR CONDITIONING, INC. , (hereinafter referred to as the “Contractor”) an agreement for HVAC Preventative Maintenance, Repairs and Replacements (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated July 11, 2023, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, DESERT AIR CONDITIONING, INC. , the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of Three Hundred Eighteen Thousand and Eightyfour dollars and no/00 Dollars, ($318,084.00), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law, or equity, including, but not limited to, California Code of Civil Procedure section 337.15.

Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or

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Contract No. ___________
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.
(3) Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.

Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]

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Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal)
Surety
By

Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.

The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)

(Name and Address of Agent or
Representative for service of
process in California, if different
from above)

(Telephone number of Surety and
Agent or Representative for
service of process in California)

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.

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Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above

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Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above

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Contract No. ___________

PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed August 24, 2023, has awarded to DESERT AIR CONDITIONING, INC., hereinafter designated as the “Principal,” a contract for the work described as follows:

HVAC Preventative Maintenance, Repairs, and Replacement (the “Project”).; and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated July 11, 2023, (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of Three Hundred Eighteen Thousand and Eighty-four Dollars, ($318,084.00) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses.

This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or

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Contract No. ___________
attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]

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Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title

(Corporate Seal) Surety
By
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.

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Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above

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Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above

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City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260

CONTACT INFORMATION
Company:

Rivco Mechanical Services
Email:
[email protected]
Contact:

Matt Clark
Address:
42941 Madio Street
Indio, CA 92201
Phone:
(760) 987-1987
Website:

N/A

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 2 ends

Submission Date:

Jul 28, 2023 12:03 PM

ADDENDA CONFIRMATION
Addendum #1
Confirmed Jul 21, 2023 7:29 AM by Matt Clark
Addendum #2
Confirmed Jul 27, 2023 7:00 AM by Matt Clark

QUESTIONNAIRE

A. Cover Letter

B. Experience and Technical Competence

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 3 ends

C. Firm Staffing and Key Personnel

1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as well as your firm’s capacity to provide additional personnel as needed.

2. Key Personnel: Identify key persons that will be principally responsible for working with the City. Indicate the role and responsibility of each individual.

3. Team Organization: Describe proposed team organization, including identification and responsibilities of key personnel.

4. Subcontractors: The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor that is anticipated to perform each function.

D. Proposed Method to Accomplish the Work

City_of_Palm_Desert_Cover_Letter.docx

2. Fee Proposal*
Pass

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 4 ends

CPD_Proposal_Fee_Sheet.pdfPD_Equipment_List.pdf

3. Non-Collusion Declaration*
Pass
The undersigned declares:

I am an authorized representative of my company, the party making the foregoing Bid, to certify the following.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Confirmed

4. Enter your valid CA Contractors State License Board (CSLB) number* Pass

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 5 ends

Please enter your License Number here. This will be verified against the state database. 979446
Click to Verify Value will be copied to clipboard

5. Enter your California Department of Industrial Relations (DIR) Registration number* Pass
Please enter your Public Works Contractor DIR Number. This will be verified against the state database. 100573407
Click to Verify Value will be copied to clipboard

6. Type of Business*
Pass
C Corporation (if corporation, two signatures are required)

7. Litigation*
Pass
Provide litigation history for any claims filed by your firm or against your firm related to the provision of Services in the last five (5) years (or type "N/A").

N/A

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 6 ends

identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect theCity's decision to enter into an Agreement.

N/A

Maximum response length: 5000 characters
N/A

10. Project Team Resumes*
Pass
Submit resumes of all key personnel/support staff that will produce work product for the Services. Describe their qualifications, education, and professional licensing.

Rivco_Resumes.docx

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 7 ends

D. Email Address
E. Phone Number
Matt Clark Marvin Scott
Sales Manager President
42941 Madio St Same
[email protected] [email protected]
760-987-1987 760-200-9898

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1. Cover Letter

Rivco Mechanical has been in business since 2012. We are located here in the Coachella valley off Jefferson St. in Indio. The owner of our company Marvin Scott has been in the industry for over thirty-five years. Rivco has over three hundred preventative maintenance agreements, running at a less than five percent cancellation. Rivco has invested into tasking software to deliver excellent service to all our customers. Our tasking software populates every month with the specific scope of work per customer, and their multiple locations. I Matt Clark, Sales Manager at Rivco Mechanical will be submitting this proposal. I’m authorized to negotiate terms and compensation.

2. Experience and Technical Competence

Rivco’s tasking is followed ever visit for every customer which is exactly like a RFP for the City of Palm Desert. I have three examples of fully occupied and secure facilities where Rivco works. The first example is Eisenhower hospital. We take care of all outpatient facilities and work in secure locations like the hospital morgues. Big Horn Country Club is another one of our customers that have multiple locations and have very tight security. There facility has multiple clubhouses and has a very secure car museum on property. The last example is Desert Arc. Desert Arc has multiple facilities and we are required to have our technicians finger printed to be allowed to work on cite.

All references are the key contact person that oversee Rivco performance of preventative maintenance.

Eisenhower Health- Scott McCabe, Administrative Director, Facilities Management/ [email protected] 760-340-3911
Big Horn Country Club- Joe Curtis, CFO/ [email protected] 760-341-4653

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Desert Arc- Angelique Ontiveros, Director of Facilities/ [email protected] 760- 346-1611

3. Firm Staffing and Key Personnel

1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as well as your firm’s capacity to provide additional personnel as needed.

Rivco has over twenty technicians who live in the Coachella valley. Rivco always has two technicians on call for weekends and after hour calls. Rivco has two dispatchers, two project managers and a service manager.

2. Key Personnel: Identify key persons that will be principally responsible for working with the City. Indicate the role and responsibility of each individual.

For coordination of the pms the dispatchers will send technicians to sites and will coordinate with the city for appropriate times to get them done.

Angela Mendoza and Brittany Lopez are our dispatchers. They coordinate with the city and our technicians to deliver excellent pms. Overseeing them is our service manager Zak Heidt. Zak discusses all service operations with our dispatchers. Zak is our best technician and helps all technicians in the field with all technical questions. Service projects will be handled by Jack Bowie or Jeff Poyner. Jack has been with Rivco since the beginning. He will help the city by quote repairs found on pms. Jeff has been in the industry for over thirty years. He was a technician and has quoted service project to completing multiple million-dollar projects over the valley. I will be the account manager to answer any questions not within the scope of the agreement or to discuss billing. Kellene Whittet is our accounting department in charge of billing.

Marvin Scott will be overseeing everyone to ensure great pm service.

3. Team Organization: Describe proposed team organization, including identification and responsibilities of key personnel.

Rivco’s organization starts with our tasking software. This notifies Angela and Brittany to get all filters order and coordinate with the city for pm. They will relay to Jack or Jeff if any service projects need to be quoted. Zak will call in to all technicians on the pm to make sure everything is working correctly.

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4.Subcontractors: The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor that is anticipated to perform each function.

The Main Subcontractor we will be using is All Valley Crane. All Valley Crane will only be used if we need to lift a new unit to the roof.

4. Proposed Method to Accomplish the Work

Our tasking will have the scope of work from the city loaded into it. Our tasking system will notify our dispatchers that all locations are due for the city. Angela or Brittany will then call the city to notify them there pm is due.

They will then schedule all the locations to get done over a couple weeks.

After the pms are scheduled our dispatchers will assign technicians to all the pms. Our technicians will complete all the pms and will call Zak if they run into technical problems. Our technicians will notify our dispatchers if we need to quote a service project. Jack or Jeff will quote the service project to the city. When all pms are completed, our dispatchers will notify the city and will send all work orders to the city. This process will happen evry ninety days for every visit.

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CITY OF PALM DESERT

CALIFORNIA
ADDENDUM NO. 2

HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT

PROJECT
PROJECT NO. 564-24
ISSUED July 25, 2023
Randy Chavez for
Martin Alvarez
Director of Public Works
IMPORTANT NOTE: RECEIPT OF THIS ADDENDUM MUST BE

ACKNOWLEDGED IN CONTRACTOR'S PROPOSAL

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Hourly Rate $165
Misc Charge $30
Travel Charge $45

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$16,073 $416 $670 $666 $296 $964 $1,042 $1,656 $861 $738 $1,865 $240 $234 $1,422 Rivco Mechanical Sales Manager 7/27/24 $176,803 $4,576 $7,370 $7,326 $3,256 $10,604 $11,462 $18,216 $9,471 $8,118 $20,515 $2,640 $2,574 $15,642 $298,573 Matt Clark

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City Hall

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Civic Center

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PD Aquatic Center

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Portola Center

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Fire Station 67

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PD History

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Henderson

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Artist Council

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Fire Station 33

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Hovley

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Corporation Yard

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Freedom Park

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Fire Station 71

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I-Hub

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City of Palm Desert
Project Team Resumes
Rivco Technicians: We have over twenty in the Coachella Valley and range in experience. All our Technicians are EPA certified.

Brittany Lopez: Three years with Rivco as a Dispatcher/Service Coordinator Angela Mendoza: Seven years with Rivco as the Senior Dispatcher Jack Bowie: Ten years at Rivco former technician and current Project Manager Jeff Poyner: Thirty years of experience in the industry and seven years as Senior Project Manager
Zak Heidt: Ten years of experience in the industry. Eight years with Rivco and is the Service Manager
Matt Clark: Five years of experience in the industry. Sales Manager of Rivco. Bachelor of Science from San Diego State University
Marvin Scott: Thirty Five years of experience in the industry. Owner and president of Rivco

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City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260

CONTACT INFORMATION
Company:

Pacific West Industries Inc
Email:
[email protected]
Contact:

Teresa Moulton
Address:
4051 E La Palma Suite A
Anaheim, CA 92807
Phone:

N/A
Website:
www.pacwestac.com

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 2 ends

Submission Date:

Jul 28, 2023 2:26 PM

ADDENDA CONFIRMATION
Addendum #1
Confirmed Jul 28, 2023 12:19 PM by Teresa Moulton
Addendum #2
Confirmed Jul 28, 2023 12:19 PM by Teresa Moulton

QUESTIONNAIRE

A. Cover Letter

B. Experience and Technical Competence

Page 528 of 851 ends

PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 3 ends

C. Firm Staffing and Key Personnel

1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as well as your firm’s capacity to provide additional personnel as needed.

2. Key Personnel: Identify key persons that will be principally responsible for working with the City. Indicate the role and responsibility of each individual.

3. Team Organization: Describe proposed team organization, including identification and responsibilities of key personnel.

4. Subcontractors: The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor that is anticipated to perform each function.

D. Proposed Method to Accomplish the Work

City_of_Palm_Desert_Proposal_FINAL.pdf

2. Fee Proposal*
Pass

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PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 4 ends

Cost_Sheet.pdf

3. Non-Collusion Declaration*
Pass
The undersigned declares:

I am an authorized representative of my company, the party making the foregoing Bid, to certify the following.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Confirmed

4. Enter your valid CA Contractors State License Board (CSLB) number* Pass

Page 530 of 851 ends

PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 5 ends

Please enter your License Number here. This will be verified against the state database. 792079
Click to Verify Value will be copied to clipboard

5. Enter your California Department of Industrial Relations (DIR) Registration number* Pass
Please enter your Public Works Contractor DIR Number. This will be verified against the state database. 1000002299
Click to Verify Value will be copied to clipboard

6. Type of Business*
Pass
S Corporation (if corporation, two signatures are required)

7. Litigation*
Pass
Provide litigation history for any claims filed by your firm or against your firm related to the provision of Services in the last five (5) years (or type "N/A").

N/A No Litigation

Page 531 of 851 ends

PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 6 ends

identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect theCity's decision to enter into an Agreement.

N/A

Maximum response length: 5000 characters
N/A

10. Project Team Resumes*
Pass
Submit resumes of all key personnel/support staff that will produce work product for the Services. Describe their qualifications, education, and professional licensing.

Resumes.pdf

Page 532 of 851 ends

PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement

PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement

Page 7 ends

D. Email Address
E. Phone Number
Robyn Marquardt, Vice President/CFO
4051 E La Palma Suite A, Anaheim, CA 92807
[email protected]
866-328-2129

Page 533 of 851 ends

CITY OF PALM DESERT
REQUEST FOR PROPOSAL 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
July 28, 2023
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Dear Sir / Madam:

Thank you for the opportunity to be considered as Prime Contractor for your Request for Proposal No. 2023-RFP-204 HVAC Preventative Maintenance, Repair and Replacement.

Since 2005, Pacific West Industries Inc has strived to become a credible source for commercial HVAC expertise. In addition to being a full mechanical contractor, the company has earned an impressive reputation as a leading Controls contractor in Southern California.

Through the Carrier Controls Expert certification program, we have obtained the highest level of certification possible. We are one of only two active contractors in Southern California that has achieved this level of certification. We are dedicated to completing projects with the highest possible quality, on time, and within budget. With our headquarters centrally located in Anaheim, we design and deliver solutions with the highest possible standard of service.

Our approach to serving our clients is comprehensive. We establish a team approach and make ourselves accountable for every aspect of our work. We deliver quality services, minimize costs, accelerate schedules, and work safely, all while minimizing impact on our customer’s day-to-day operations. We manage and monitor every item on your project's critical path and provide all labor, material and other services required to get the job done correctly.

Pacific West Industries, Inc. has grown because our clients continue to expand their use of our services based on our demonstrated ability to deliver quality services that exceed our customers’ expectations, on time and within budget. We have built an impressive team of accredited technicians, project managers and support staff, and our management team is

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With our extensive certifications and experience, I assert that Pacific West is the most qualified contractor to meet the needs of your HVAC Maintenance, Repair and Replacement project and I thank you again for your consideration. I look forward to speaking with you in greater detail about the enclosed proposal.

Pacific West Industries, Inc.
4051 E La Palma Suite A
Anaheim, CA 92807
(866) 328-2129 www.pacwestac.com
[email protected]
Marcello Marignoli, Project Manager / Service Manager
Daniel Monge, Project Manager / Assistant Service Manager Founding Date: March 2005
California “S” Corporation Number: C2631300
Federal Taxpayer ID Number: 20-3153678
Business License Number: 259-8045-9
California Contractor License Number: 792079
• C-20 HVAC
• C-10 Electrical
• C-36 Plumbing
• C-38 Refrigeration
DIR Registration, Number 1000002299
Certified Small Business, Department of General Services 1627320 Authorized Signers / Representatives regarding this proposal:

Kevin Marquardt, President / CEO
Robyn Marquardt, Vice President / CFO
Devin Johnson, General Manager / Project Manager
Pacific West Industries Inc. acknowledges receipt of Addendums 1 & 2 Robyn Marquardt, Vice President / CFO

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Pacific West Industries Inc has been providing services and support to numerous public agencies, private and non-profit organizations throughout California and Arizona since 2005. We have provided these services to many public agencies/cities including within fully occupied facilities and secured facilities such as police and fire stations. We hold certified credentials and experience in all areas of HVAC Mechanical and Control Systems and we are immensely proud of the work we do and its impact on both local and global scales.

The City of Palm Desert is in need of a highly skilled contractor to perform the HVAC Maintenance and any needed repairs for various city-owned or operated facilities throughout the City. Pacific West Industries Inc. will furnish all labor, materials, tools, equipment, and incidentals required to perform the scope of work. Pacific West Industries has a well-organized maintenance department and we utilize a highly detailed and precise software platform to track and manage all maintenance and service requests. After award of the contract, we will begin the process of entering in all equipment and logging the dates for the scheduled maintenance.

Pacific West Industries will provide quarterly preventative maintenance services of all HVAC units by cleaning, inspecting, replacing filters, lubricating moving parts, checking for leaks, checking all wiring, and adjusting the HVAC systems and components during each visit. We will also check and clear condensate lines and rinse condensate coils twice per year. Once per year, we will test the refrigerant levels and clean the evaporative coils.

Pacific West Industries Inc. will also provide the maintenance on the evaporative cooler / heater units as noted in the scope of work. We will perform all of the required maintenance by checking all parts for wear, cleaning and lubricating moving parts, and inspecting to ensure optimal working condition.

Pacific West Industries Inc has a thorough understanding of the project, and we are very familiar with all of the equipment and facilities throughout the city. The City of Palm Desert depends on their HVAC systems to keep comfortable year-round. HVAC Systems are a huge investment, so it is of the utmost importance to properly maintain the systems with regular maintenance and upkeep of all heating, cooling, air handling, control systems, and associated equipment. The systems need to be inspected, cleaned, tested and

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PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITYOF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT Page | 4
if necessary, repairs need to be made. Regular maintenance helps the system produce and distribute the warm and cool air more evenly, steadily, and efficiently. This will help to keep the systems operating at peak level, reduce the chance of systems failure, and also help to prolong the useful life of the systems. In addition, this will also help reduce energy consumption, prevent more costly repairs, fulfill warranty requirements, and improve air quality, ultimately helping to maintain lower operating costs all-around. While onsite for routine maintenance/inspection, if any of the equipment exhibits signs of severe wearand-tear, we will submit a quote for repairs to bring the systems back to full capacity and optimal condition.

In addition to our extensive knowledge and experience in the HVAC and Controls industry, Pacific West Industries has been working in the Coachella Valley area since our inception in 2005 and we are very experienced with the local environment and climate conditions.

Below is a brief list of several of our long-term customers in the Coachella Valley area:
• The Palm Springs Art Museum
• College of the Desert
• The Living Desert
• The City of La Quinta
• The City of Palm Desert
• The Palm Springs Aerial Tram Way
• The City of Palm Springs
• Luko Management Company
• City of Rancho Mirage

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Project Name: The City of La Quinta - Maintenance & Repairs Project Address: La Quinta, California
Project Owner: The City of La Quinta
Project Contact: Alfred Berumen (760) 834-1332 / [email protected] Project Architect: N/A - Repair Work
Scope of Work: Ongoing Maintenance and repairs for the City of La Quinta Original Completion Date: May 2023
Date Completed: July 2023 (Ongoing)
Initial Contract Value: $525,000.00
Final Contract Value: $525,000 (currently - ongoing)
Project Name: Palm Springs Art Museum Maintenance & Repairs Project Address: Palm Springs and Palm Desert
Project Owner: Palm Springs Art Museum
Project Contact: Olivia Villarreal (760) 322-4800 ext. 136 [email protected] Project Architect: N/A
Scope of Work: HVAC Maintenance/Repairs HVAC Replacement, Chilller Replacement, Cooling Towers, and Boilers
Original Completion Date: July 2019
Date Completed: July 2023 Contract +Ongoing Maintenance Initial Contract Value: $525,000.00
Final Contract Value: $525,000.00 +
ProjectName: HVAC Maintenance & Service Agreement @ 3 High Schools Project Address: Alhambra, CA: San Gabriel HS, Mark Keppel HS, & Alhambra HS Project Owner: Alhambra Unified School District
Project Contact: Eliezer "Cheddy" Castillo (626) 943-6500 [email protected] Project Architect: Enpowered Solutions, Staffan Akerstrom (844) 536-7693 [email protected] If a Sub - General Contractor: N/A
Scope of Work: Upgraded Energy Management System & Provided Maintenance of Equip.

Original Completion Date: March 2020
Date Completed: March 2022 (Contract Renewed - currently a month to month contract) Initial Contract Value: $890,000.00
Final Contract Value: $1,620,000.00
DSA Project? NO

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Palm Desert City CouncilAugust 24, 2023

Palm Desert City Council
August 24, 2023