CITY OF PALM DESERT and PALM DESERT HOUSING AUTHORITY
STAFF REPORT
MEETING DATE: June 13, 2024
PREPARED BY: Shawn Muir, Community Services Manager
REQUEST: AWARD A CONTRACT TO WEST COAST ARBORISTS, INC., OF INDIO,
CA, FOR ARBORICULTURAL SERVICES IN AN AMOUNT NOT TO
EXCEED $1,114,125 (PROJECT NO. MLS00026)
RECOMMENDATION:
1. Award a three-year contract to West Coast Arborists, Inc., of Indio, CA, for arboricultural services for the City of Palm Desert, Desert Willow Golf Resort, and the Palm Desert Housing Authority in an annual amount not to exceed $1,114,125.
2. Authorize staff to assign additional services/extra work as determined to be necessary to perform emergency work, mitigate hazardous conditions and proactively respond to unforeseen issues.
3. Authorize the City Manager to review and approve written contract amendment and change order requests for unanticipated conditions per Section 3.30.170 of the Palm Desert Municipal Code.
4. Authorize the City Attorney to make any necessary non-monetary changes to the agreement.
5. Authorize the City Manager to execute said agreement.
BACKGROUND/ANALYSIS:
The City contracts with an arboricultural services provider for palm tree pruning, broadleaf tree pruning, emergency removal and tree planting work. The contract is managed by the City and covers the City’s entire Urban Forest, which includes parks, medians, City-maintained properties, Desert Willow Golf Resort, and the Palm Desert Housing Authority properties. Palm and hardwood tree pruning is scheduled annually and emergency work due to vandalism, accidents, weather events, and other extra work will be performed on an as-needed and perrequest basis. Under this contract, staff will issue work orders for maintenance and emergency repairs that detail the work to be performed and the time frame to complete it following the pricing schedule listed in the proposal. City staff will ensure that the work is up to City standards, and that the total annual contract amount is not exceeded.
In addition, industry standards recommend updating a City’s Urban Forest inventory every three to five years. This contract includes performing an updated inventory that documents tree species, location, size, and defects and/or disease. The updated inventory will use the latest technology to map and manage the Urban Forest, and the selected contractor will be responsible for updating the database with any changes.
On March 5, 2024, Staff issued a Request for Proposals on OpenGov for a three-year contract with two, one-year options to extend. A mandatory pre-proposal meeting was held on March 12, 2024. West Coast Arborists, Inc. was the only contractor in attendance at the meeting. To solicit 297
City of Palm Desert and Palm Desert Housing Authority
Award Contract to West Coast Arborists, Inc. for Arboricultural Services
additional competitive proposals, Staff organized a second pre-proposal meeting on March 20, 2024, and again, West Coast Arborists, Inc. was the only contractor in attendance. On April 8, 2024, the proposal from West Coast Arborists, Inc. was received through OpenGov.
A selection committee that included three Public Works staff rated the proposal. Based on the review, staff recommends that a three-year contract with an option of two, one-year extensions be awarded to West Coast Arborists, Inc. West Coast Arborists, Inc. has been the City’s Arboricultural Services provider for more than five years and their services are up to City standards.
The proposal from West Coast Arborists, Inc. incorporated the updates to the scope of work, including the additional requirement of completing tree pruning in an area prior to moving to another area. Staff also considered the decrease in the number of trees in the City, due in part to Tropical Storm Hilary, and an increase in palm trees from routine planting.
In FY 2022-23, the initial contract amount was $975,000 with the term expiring June 30, 2024.
The amount was increased in 2023 to address deferred tree work and safety pruning to accommodate an increase in golfers at the Desert Willow Golf Resort. Later in 2023 the amount was increased again to minimize excess palm frond and petiole debris during wind events, prepare for the City’s 50th anniversary celebration, and other projects giving a total budget of $1,075,000 in FY 2023-24.
The proposed agreement is utilized on an as-needed and on-call basis. The itemized cost proposal provided by West Coast Arborists, Inc. includes increases in the range of 8% up to 25% for some typical services. Considering the cost increase and the factors described above, staff has estimated the not-to-exceed budget for this contract at $1,114,125.
Legal Review:
This report has been reviewed by the City Attorney’s office.
Appointed Body Recommendation:
The Housing Commission will be considering recommendation of this item at its regular meeting on June 12, 2024. Staff will provide information regarding the Commission’s recommendation at the City Council and Housing Authority Board meeting on June 13, 2024.
FINANCIAL IMPACT:
Funds in the amount of $1,114,125 have been requested in the proposed Public Works Operations and Housing Authority Budgets for FY 2024-25. The annual not-to-exceed contract amount will be based on actual work performed and shared between the City, Desert Willow, and Housing Authority.
The following is the estimated allocation budget for each account; however, this does not necessarily mean that only these areas will be served, that the full amount will be allocated to each budget, nor that the full amount will be spent:
298
City of Palm Desert and Palm Desert Housing Authority
Award Contract to West Coast Arborists, Inc. for Arboricultural Services
FY 2024-25 Account No. Budget Total
Civic Center Park 1104610-4332001 $115,000
Parks 1104611-4332001 $117,500
Medians 1104614-4337001 $450,000
LLDs 200 Accounts $ 76,625
Desert Willow 4414195-4809200 $225,000
Housing Authority Authority’s Operating Accounts $130,000 $1,114,125
Beyond the contract amount, there is no further financial impact on the General Fund from this action.
ATTACHMENTS:
1. Proposal – West Coast Arborists, Inc.
2. Agreement
3. Performance and Payment Bonds
299
300
Request For Proposal #2024-RFP-103
Title: Arboriculture Services
24 10.5. Protest Review and Response
If the protest is timely and complies with the above requirements, the City shall review the protest, any response from the challenged bidder, proposer or other vendor, and all other relevant information. The City will provide a written decision to the protester in a reasonable amount of time. If the protest is in response to a recommendation of award to the City then the protest will be considered concurrently with the award of the contract, and the approval authority's action is final.
10.6. Conflicts
The protest procedures contained in this section shall not apply if a particular solicitation contains a different protest procedure. This section does not limit or eliminate a claimant's obligations under the Government Claims Act, Government Code Section 900 et seq.
11. Pricing Proposal
PALM / TREE WORK
Line Item Description Unit of Measure Unit Cost
1 Annual Hardwood Tree Pruning - City Parks Each
2 Annual Hardwood Tree Pruning - Medians Each
3 Annual Hardwood Tree Pruning - Facilities Each
4 Annual Hardwood Tree Pruning - Desert Willow Golf
Resort
Each
5 Annual Hardwood Tree Pruning - Housing Authority
Properties
Each
6 Annual Washingtonia Palm Pruning - City Parks Each
7 Annual Washingtonia Palm Pruning - Medians Each
8 Annual Washingtonia Palm Pruning - Facilities Each
9 Annual Washingtonia Palm Pruning - Desert Willow Golf Resort
Each
10 Annual Washingtonia Palm Pruning - Housing Authority Properties
Each
11 Annual Phoenix Palm Pruning - City Parks Each
12 Annual Phoenix Palm Pruning - Medians Each
$129.00
$140.00
$119.00
$159.00
$159.00
$65.00
$79.00
$65.00
$65.00
$79.00
$89.00
$89.00
301
Request For Proposal #2024-RFP-103
Title: Arboriculture Services
25 Line Item Description Unit of Measure Unit Cost
13 Annual Phoenix Palm Pruning - Facilities Each
14 Annual Phoenix Palm Pruning - Desert Willow Golf
Resort
Each
15 Annual Phoenix Palm Pruning - Housing Authority
Properties
Each
16 Annual Other Palm Pruning - City Parks Each
17 Annual Other Palm Pruning - Medians Each
18 Annual Other Palm Pruning - Facilities Each
19 Annual Other Palm Pruning - Desert Willow Golf Resort Each 20 Annual Other Palm Pruning - Housing Authority
Properties
Each
ADDITIONAL SERVICES
Line Item Description Unit of Measure Unit Cost
21 Plant 24" Box Tree Each
22 Plant 36" Box Tree Each
23 Crew Rates - Regular Hours Hourly Rate
24 Crew Rates - After Hours Hourly Rate
25 Service Request Pruning 0" to 12" DBH Each
26 Service Request Pruning 13" to 18" DBH Each
27 Service Request Pruning 19" to 24" DBH Each
28 Service Request Pruning 25" to 31" DBH Each
29 Service Request Pruning over 31" DBH Each
30 Palm Skinning Per Linear Foot
$89.00
$89.00
$89.00
$65.00
$79.00
$65.00
$65.00
$79.00
$450.00
$1,200.00
$100.00
$135.00
$95.00
$175.00
$250.00
$325.00
$400.00
$19.00
302
Request For Proposal #2024-RFP-103
Title: Arboriculture Services
26 Line Item Description Unit of Measure Unit Cost
31 Pest Control and/or Fertilization Service Each
32 Hedge/Screen Pruning Tamarisk Trees or Similar Per Linear Foot 33 Tree and Palm Tree Removal - 8" to 12" Stump Grind Each 34 Tree and Palm Tree Removal - entire root ball Each
35 Eucalyptus Tree Pruning Each
36 Eucalyptus Crown Reduction Each
37 Arborist Reporting/Assessments (Include Level 1, Level 2, and Level 3)
Hourly Rate
38 Crane Services and/or Non-standard Heavy Equipment Hourly Rate
TREE / PALM INVENTORY COST PER UNIT
Line Item Description Unit of Measure Unit Cost
39 Housing Authority Each
40 Desert Willow Each
41 City Parks, Medians, and Facilities Each
$100.00
$35.00
$975.00
$1,995.00
$300.00
$475.00
$170.00
$195.00
$5.00
$5.00
$5.00
303
City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
RESPONSE DEADLINE: April 8, 2024 at 5:00 pm
Report Generated: Wednesday, April 10, 2024
West Coast Arborists, Inc. Response
CONTACT INFORMATION
Company:
West Coast Arborists, Inc.
Email:
[email protected]
Contact:
Victor Gonzalez
Address:
43712 Jackson Street
Indio, CA 92201
Phone:
N/A
Website:
wcainc.com
Submission Date:
Apr 8, 2024 10:47 AM
304
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
ADDENDA CONFIRMATION
Addendum #1
Confirmed Apr 4, 2024 10:35 AM by Victor Gonzalez
Addendum #2
Confirmed Apr 4, 2024 10:35 AM by Victor Gonzalez
QUESTIONNAIRE
1. Proposal (WITHOUT COST)*
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
1. Background: Provide history of the firm’s consulting experience which specifically addresses the individual or firm’s experience with similar Service as described in this RFP.
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
305
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
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.
WCA_Palm_Desert_Aboriculture_Services_Proposal.pdf
2. Non-Collusion Declaration*
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 306
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
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
3. Iran Contracting Act Certification*
(Public Contract Code section 2200 et seq.)
As required by California Public Contract Code Section 2204, the Contractor certifies subject to penalty for perjury that the option selected below relating to the Contractor’s status in regard to the Iran Contracting Act of 2010 (Public Contract Code Section 2200 et seq.) is true and correct.
Note: In accordance with Public Contract Code Section 2205, false certification of this form shall be reported to the California Attorney General and may result in civil penalties equal to the greater of $250,000 or twice the Contract amount, termination of the Contract and/or ineligibility to bid on contracts for three years.
The Contractor is not identified on the current list of person and entities engaged in investment activities in Iran prepared by the California Department of General Services in accordance with subdivision (b) of Public Contract Code Section 2203; or a financial instruction that extends, for 45 calendar days or more, credit in the amount of $20,000,000 or more to any other person or entity identified on the current list of persons and entities engaging in investment activities in Iran prepared by the California Department of General Services in accordance with subdivision (b) of Public Contract Code Section 2203, if that person or entity uses or will use the credit to provide goods or services in the energy sector in Iran. 307
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
4. Public Projects Contractor DIR Registration Certification* Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See http://www.dir.ca.gov/Public-Works/PublicWorks.html for additional information.
No bid will be accepted, nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work.
Bidder hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relations.
Unless Bidder is exempt pursuant to the small project exemption, Bidder further acknowledges:
A. Bidder shall maintain a current DIR registration for the duration of the project.
B. Bidder shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project.
C. Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is nonresponsive.
Confirmed
5. Enter your California Department of Industrial Relations (DIR) Registration number* Please enter your Public Works Contractor DIR Number. This will be verified against the state database. 1000000956
Click to Verify Value will be copied to clipboard
6. Contractor's Certificate Regarding Workers Compensation* I am aware of the provisions of section 3700 of the 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 I will comply with such provisions before commencing the performance of the work of this Contract. 308
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
Confirmed
7. Fleet Compliance Certification*
I hereby acknowledge that I have reviewed the California Air Resources Board’s policies, rules and regulations and are familiar with the requirements of Title 13, California Code of Regulations, Division 3, Chapter 9, effective on January 1, 2024 (the “Regulation”). I hereby certify, subject to penalty for perjury, that the option checked below relating to the Bidder’s fleet, and/or that of their subcontractor(s) (“Fleet”) is true and correct:
The Fleet is subject to the requirements of the Regulation, and the appropriate Certificate(s) of Reported Compliance have been attached hereto.
8. Fleet Compliance Documentation*
Please attach supporting documentation for the selection made in item 12 above.
WCA_2024_DOORS_Certificate_2-27-2024_CARB_Compliance.pdf
9. SAM.gov*
Please enter your legal entity name for SAM.gov verification.
West Coast Arborists, Inc.
Click to Verify Value will be copied to clipboard
10. Type of Business*
C Corporation (if corporation, two signatures are required)
11. Litigation*
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").
• Mark Carnahan, Mary Anne Carnahan v. West Coast Arborists, Inc. - Limb failed in nature Park trail — dismissed. 309
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
• Troy Taylor v. City of Jurupa Valley - Tree failed causing vehicle to crash into — dismissed. • Padilla-Gonzalez v. SGM, City of Victorville - Case # CIVSB2216298 - Superior Court of CA, County of San Bernardino - A tree limb failed landing in backyard — pending.
12. Changes to Agreement*
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 identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may affect theCity's decision to enter into an Agreement.
N/A
13. No Deviations from the RFP*
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").
N/A
14. List the Signatory(s) Authorized to Sign and Bind an Agreement.* (If two (2) signatures are required, include the following information for both signatories) A. Full Name
B. Title
C. Physical Business Address
D. Email Address
E. Phone Number
310
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
1) Patrick Mahoney, President, 2200 E. Via Burton, Anaheim, CA 92806 [email protected] 714-991-1900 2) Richard Mahoney, Secretary, 2200 E. Via Burton, Anaheim, CA 92806 [email protected] 714-991-1900
15. 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.
Confirmed
PRICE TABLES
PALM / TREE WORK
Line Item Description Unit of Measure Unit Cost
1 Annual Hardwood Tree Pruning - City Parks Each $129.00 2 Annual Hardwood Tree Pruning - Medians Each $140.00
3 Annual Hardwood Tree Pruning - Facilities Each $119.00 4 Annual Hardwood Tree Pruning - Desert Willow Golf Resort Each $159.00 5 Annual Hardwood Tree Pruning - Housing Authority Properties Each $159.00 6 Annual Washingtonia Palm Pruning - City Parks Each $65.00 7 Annual Washingtonia Palm Pruning - Medians Each $85.00 8 Annual Washingtonia Palm Pruning - Facilities Each $65.00 9 Annual Washingtonia Palm Pruning - Desert Willow Golf Resort Each $65.00 311
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
Line Item Description Unit of Measure Unit Cost
10 Annual Washingtonia Palm Pruning - Housing Authority Properties Each $85.00 11 Annual Phoenix Palm Pruning - City Parks Each $95.00 12 Annual Phoenix Palm Pruning - Medians Each $105.00
13 Annual Phoenix Palm Pruning - Facilities Each $95.00 14 Annual Phoenix Palm Pruning - Desert Willow Golf Resort Each $95.00 15 Annual Phoenix Palm Pruning - Housing Authority Properties Each $105.00 16 Annual Other Palm Pruning - City Parks Each $65.00
17 Annual Other Palm Pruning - Medians Each $85.00
18 Annual Other Palm Pruning - Facilities Each $65.00
19 Annual Other Palm Pruning - Desert Willow Golf Resort Each $65.00 20 Annual Other Palm Pruning - Housing Authority Properties Each $85.00
ADDITIONAL SERVICES
Line Item Description Unit of Measure Unit Cost
21 Plant 24" Box Tree Each $450.00
22 Plant 36" Box Tree Each $1,200.00
23 Crew Rates - Regular Hours Hourly Rate $100.00
24 Crew Rates - After Hours Hourly Rate $135.00
312
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
Line Item Description Unit of Measure Unit Cost
25 Service Request Pruning 0" to 12" DBH Each $95.00
26 Service Request Pruning 13" to 18" DBH Each $175.00
27 Service Request Pruning 19" to 24" DBH Each $250.00
28 Service Request Pruning 25" to 31" DBH Each $325.00
29 Service Request Pruning over 31" DBH Each $400.00
30 Palm Skinning Per Linear Foot $19.00
31 Pest Control and/or Fertilization Service Each $100.00 32 Hedge/Screen Pruning Tamarisk Trees or Similar Per Linear Foot $35.00 33 Tree and Palm Tree Removal - 8" to 12" Stump Grind Each $975.00 34 Tree and Palm Tree Removal - entire root ball Each $1,995.00 35 Eucalyptus Tree Pruning Each $300.00
36 Eucalyptus Crown Reduction Each $475.00
37 Arborist Reporting/Assessments (Include Level 1, Level 2, and Level 3) Hourly Rate $170.00 38 Crane Services and/or Non-standard Heavy Equipment Hourly Rate $195.00
TREE / PALM INVENTORY COST PER UNIT
Line Item Description Unit of Measure Unit Cost
39 Housing Authority Each $5.00
313
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
RFP No. 2024-RFP-103
Arboriculture Services
[WEST COAST ARBORISTS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Arboriculture Services
Line Item Description Unit of Measure Unit Cost
40 Desert Willow Each $5.00
41 City Parks, Medians, and Facilities Each $5.00
314
City of Palm Desert
2024-RFP-103 Arboriculture
Services
315
Client Name / RFP Name
2 Setting the Gold Standard
Table of Contents
A. COVER LETTER ...................................................................................................................... 3 B. EXPERIENCE & TECHNICAL COMPETENCE ........................................................................ 4 Company Background .................................................................................................... 4 Client References ............................................................................................................. 6 C. FIRM STAFFING & KEY PERSONNEL ...................................................................................... 9 D. PROPOSED METHOD TO ACCOMPLISH WORK ............................................................... 14 Scope of Services ........................................................................................................... 21 Technology and Information Management ............................................................... 24 Equipment List ................................................................................................................. 27 316
317
Client Name / RFP Name
4 Setting the Gold Standard
B. EXPERIENCE & TECHNICAL
COMPETENCE
Company Background
WEST COAST ARBORISTS, INC. (WCA)
is a family-owned and operated union company employing over 1,200 full-time employees providing tree maintenance and management services. We are proudly serving over 350
municipalities and public agencies. We provide superior and safe tree care operations seven days a week, 24 hours a day
throughout California and Arizona.
OUR VISION
As a corporate citizen, WCA’s responsibility and accountability are to the communities where we do business. We hold ourselves to the highest standards of ethical conduct and environmental responsibility, communicating openly with our customers and the communities in which we work. It is our goal and vision to lead the industry in state-of-the-art urban tree care and management services.
100% CUSTOMER SATISFACTION
Customer satisfaction is our top priority. We guarantee your complete satisfaction with every facet of our services. Our dedication to customer service has earned WCA a reputation unrivaled in the industry for dependability, integrity, quality and courtesy. We authorize our employees to do whatever is necessary to achieve the highest quality results. We know that high quality work saves our customer’s valuable time and is far more cost effective if we do our work properly the first time. We are committed to courteous and prompt customer service to fully resolve any issue.
COMPANY INFORMATION
President: Patrick Mahoney
Organization Type: Corporation
Established: 1972
Federal Tax ID: 95-3250682
DIR Registration: 1000000956
Members of Laborers’ Union:
LiUNA!
SAM Entity ID: CFJMVMJ9NSD1
Website: wcainc.com
CORPORATE OFFICE
2200 E. Via Burton St.
Anaheim, CA 92806
REGIONAL OFFICES
Escondido, CA
Fresno, CA
Indio, CA
Ontario, CA
Phoenix, AZ
Riverside, CA
Sacramento, CA
San Diego, CA
San Jose, CA
San Francisco, CA
Santa Clarita, CA
Stockton, CA
Ventura, CA
CONTRACT ADMINISTRATION
Victor Gonzalez, Vice President
Corporate Office
Phone (714) 991-1900
Fax (714) 956-3745
Email: [email protected]
FIELD MANAGEMENT
Isaac Garza, Area Manager
2200 E. Via Burton
Anaheim, CA 92806
Phone (714) 991-1900
Fax (714) 956-3745
Email: [email protected]
EMERGENCY RESPONSE 24/7
1-800-LIMB-DOWN
318
Client Name / RFP Name
5 Setting the Gold Standard
Corporate Capabilities
West Coast Arborists, Inc., is committed to successfully completing each project in accordance with the specifications, budget, schedule and with the highest quality of service. Our customers’ satisfaction is a direct result of our means to carry out each project. Listed below are some of our corporate capabilities, which not only provide a sense of comfort and confidence to our customers, but also assure them of our continuous ability to carry out the duties of managing their urban forest.
• In business continuously and actively since 1972
• Contractor’s License C61/D49, C49,
C27, C31, C21, A & B
• Over $8,500,000 line of credit available
• Annual financial audits available upon request
• Bonded by ARCH, an A+ rated company
• 1,200+ employees
• 350+ contracts with public agencies
• 95+ Certified Arborists
• 155+ Certified Tree Workers
• Drug-free workplace
• 14,000 sq. ft. company-owned
Headquarters (Anaheim)
• Department of Agriculture Nursery license
• Avg. 712,000 trees pruned annually over past 3 years
• Avg. 46,000 trees removed annually over past 3 years
• Avg. 20,000 trees planted annually over past 3 years
• Avg. 250,000 trees inventoried annually over past 3 years • Fully insured with insurance up to $25 million
• Federal Tax ID #95-3250682, current on all taxes and
fillings with state and federal government
• Sales volume over $190 million annually
• Fleet of approximately 1,600 pieces of equipment
•
Active Memberships:
Tree Care Industry Association (TCIA)
International Society of Arboriculture (ISA)
League of California Cities (LCC)
California Parks & Recreation Society (CPRS)
Association of California Cities|
–Orange County (ACCOC)
Maintenance Superintendents Association (MSA)
California Landscape Contractors Association (CLCA)
Street Tree Seminar (STS)
California Urban Forest Council (CaUFC)
American Public Works Association (APWA)
319
6 Setting the Gold Standard
Client References
West Coast Arborists understands the challenge that many cities face to reduce the cost of tree maintenance services, while increasing the level of performance. Utilizing our services as a valuable, cost-effective resource, cities are able to provide better services to their community.
These contracts cover a range of services from providing emergency response to maintaining the Agency’s entire urban forest.
CITY OF INDIO SINCE 2006
WCA currently maintains the City’s landscape maintenance districts consisting of over 10,000 street trees. These trees are maintained on an annual 3-5 year maintenance cycle.
All palm tree species are trimmed annually and removals are based on an as needed basis. WCA is a supporter and participant in the City’s annual Arbor Day celebration.
Contact: Jose Vasquez, Parks & Facilities Manager
100 Civic Center Mall, Indio, CA 92201 ~ (760) 218-0947 ~ [email protected] ANNUAL BUDGET: $400,000
CITY OF COACHELLA SINCE 2012
WCA has partnered with the City of Coachella to provide tree trimming and maintenance services citywide and in the landscape maintenance districts. The palm trees throughout the coachella valley requires specific maintenance including sterilized equipment and special care when handling the various palm types. In addition to providing tree planting and removal services, WCA recently partnered with the City for the AMPlifying the Urban Forest project which included planting trees from a CalFire grant that the City received.
Contact: Janeth Lara, Parks Supervisor
53990 Enterprise Way, Coachella, CA 92236 ~ (442) 400-1382 ~ [email protected] ANNUAL BUDGET: $500,000
CITY OF BEAUMONT SINCE 2020
WCA provides routine annual tree trimming and palm trimming services to the City. We also provide pruning, crown raising, tree removal, stump grinding, tree planting, tree watering, plant health care, emergency services, and general arborist services asneeded. WCA keeps a record of all maintenance provided to the City in ArborAccess.
Contact: Doug Story, Asst. Director Community Svcs.
550 E. 6th Street, Beaumont, CA 92223 ~ (951) 769-8520 ~ [email protected] ANNUAL BUDGET: $330,000
CITY OF PALM SPRINGS SINCE 2018
WCA provides citywide tree maintenance services for the City of Palm Springs including tree pruning, removal, palm pruning, tree watering, tree replacement and emergency response services as-needed.
Contact: Kenneth Kershaw, Parks Maintenance Supervisor
425 N. Civic Center Dr., Palm Springs, CA 92262 ~ (760) 323-8283 ~ [email protected]
ANNUAL BUDGET: $600,000
320
7 Setting the Gold Standard
EXPERIENCE: CURRENT CALIFORNIA CITIES/COUNTIES UNDER CONTRACT WITH WCA
CITY OF AGOURA HILLS
CITY OF ALAMEDA
CITY OF ALHAMBRA
CITY OF ANAHEIM
CITY OF ARCADIA
CITY OF ARTESIA
CITY OF AZUSA
CITY OF BALDWIN PARK
CITY OF BEAUMONT
CITY OF BELL
CITY OF BELL GARDENS
CITY OF BELLFLOWER
CITY OF BERKELEY
CITY OF BEVERLY HILLS
CITY OF BRADBURY
CITY OF BRAWLEY
CITY OF BREA
CITY OF BUENA PARK
CITY OF BURLINGAME
CITY OF CAMARILLO
CITY OF CARLSBAD
CITY OF CARMEL-BY-THE-SEA
CITY OF CARPINTERIA
CITY OF CARSON
CITY OF CERES
CITY OF CHINO
CITY OF CHINO HILLS
CITY OF CHOWCHILLA
CITY OF CHULA VISTA
CITY OF CITRUS HEIGHTS
CITY OF CLAREMONT
CITY OF COACHELLA
CITY OF COLTON
CITY OF COMMERCE
CITY OF CONCORD
CITY OF CORONA
CITY OF CORONADO
CITY OF COSTA MESA
CITY OF COVINA
CITY OF CUDAHY
CITY OF CULVER CITY
CITY OF CUPERTINO
CITY OF DANA POINT
CITY OF DAVIS
CITY OF DEL MAR
CITY OF DIAMOND BAR
CITY OF DUARTE
CITY OF EL CAJON
CITY OF EL CENTRO
CITY OF EL SEGUNDO
CITY OF ENCINITAS
CITY OF ESCONDIDO
CITY OF FILLMORE
CITY OF FOLSOM
CITY OF FONTANA
CITY OF FREMONT
CITY OF FRESNO
CITY OF FULLERTON
CITY OF GARDEN GROVE
CITY OF GILROY
CITY OF GLENDALE
CITY OF GLENDORA
CITY OF GOLETA
CITY OF GRAND TERRACE
CITY OF HALF MOON BAY
CITY OF HAWAIIAN GARDENS
CITY OF HIGHLAND
CITY OF HOLLISTER
CITY OF HUNTINGTON BEACH
CITY OF IMPERIAL BEACH
CITY OF INDIO
CITY OF INDUSTRY
CITY OF INGLEWOOD
CITY OF IRWINDALE
CITY OF JURUPA VALLEY
CITY OF LA CANADA
CITY OF LA HABRA
CITY OF LA MESA
CITY OF LA MIRADA
CITY OF LA PALMA
CITY OF LA PUENTE
CITY OF LA VERNE
CITY OF LAGUNA BEACH
CITY OF LAGUNA HILLS
CITY OF LAKE ELSINORE
CITY OF LAKE FOREST
CITY OF LAKEWOOD
CITY OF LATHROP
CITY OF LEMON GROVE
CITY OF LINCOLN
CITY OF LIVERMORE
CITY OF LODI
CITY OF LOMA LINDA
CITY OF LOMPOC
CITY OF LONG BEACH
CITY OF LOS ALAMITOS
CITY OF LOS ALTOS
CITY OF LOS ANGELES
CITY OF MADERA
CITY OF MANHATTAN BEACH
CITY OF MENIFEE
CITY OF MENLO PARK
CITY OF MILPITAS
CITY OF MISSION VIEJO
CITY OF MONROVIA
CITY OF MONTCLAIR
CITY OF MONTEBELLO
CITY OF MONTEREY
CITY OF MONTEREY PARK
CITY OF MOORPARK
CITY OF MORENO VALLEY
CITY OF MORGAN HILL
CITY OF MOUNTAIN VIEW
CITY OF MURRIETA
CITY OF NATIONAL CITY
CITY OF NEWARK
CITY OF NEWPORT BEACH
CITY OF NORCO
CITY OF NORWALK
CITY OF OAKLEY
CITY OF OCEANSIDE
CITY OF ONTARIO
CITY OF ORANGE
CITY OF OXNARD
CITY OF PALM DESERT
CITY OF PALM SPRINGS
CITY OF PALO ALTO
CITY OF PARAMOUNT
CITY OF PERRIS
CITY OF PICO RIVERA
CITY OF PLACENTIA
CITY OF PLEASANTON
CITY OF POMONA
CITY OF POWAY
CITY OF RANCHO CORDOVA
CITY OF RANCHO
CUCAMONGA
CITY OF RPV
CITY OF REDLANDS
CITY OF REDONDO BEACH
CITY OF RIALTO
CITY OF RIVERSIDE
CITY OF ROSEMEAD
CITY OF ROSEVILLE
CITY OF SACRAMENTO
CITY OF SAN BERNARDINO
CITY OF SAN BRUNO
CITY OF SAN CARLOS
CITY OF SAN CLEMENTE
CITY OF SAN DIEGO
CITY OF SAN DIMAS
CITY OF SAN FERNANDO
CITY OF SAN JACINTO
CITY OF SAN JUAN CAP
CITY OF SAN LEANDRO
CITY OF SAN MARCOS
CITY OF SAN RAMON
CITY OF SANTA ANA
CITY OF SANTA BARBARA
CITY OF SANTA CLARA
CITY OF SANTA CLARITA
CITY OF SANTA FE SPRINGS
CITY OF SANTA MARIA
CITY OF SANTEE
CITY OF SIERRA MADRE
CITY OF SIGNAL HILL
CITY OF SOLANA BEACH
CITY OF SOUTH PASADENA
CITY OF SOUTH SF
CITY OF STOCKTON
CITY OF SUNNYVALE
CITY OF TEMPLE CITY
CITY OF THOUSAND OAKS
CITY OF TORRANCE
CITY OF TRACY
CITY OF TULARE
CITY OF TUSTIN
CITY OF UPLAND
CITY OF VENTURA
CITY OF VERNON
CITY OF VICTORVILLE
CITY OF VISALIA
CITY OF VISTA
CITY OF WALNUT
CITY OF WALNUT CREEK
CITY OF WEST COVINA
CITY OF WEST HOLLYWOOD
CITY OF WEST SACRAMENTO
CITY OF WHITTIER
CITY OF WOODLAND
CITY OF YORBA LINDA
COUNTY OF ALAMEDA
COUNTY OF COLUSA
COUNTY OF CONTRA COSTA
COUNTY OF EL DORADO
COUNTY OF FRESNO
COUNTY OF LOS ANGELES
COUNTY OF MONTEREY
COUNTY OF NAPA
COUNTY OF ORANGE
COUNTY OF PLACER
COUNTY OF RIVERSIDE
COUNTY OF SAN BERNARDINO
COUNTY OF SAN DIEGO
COUNTY OF SAN JOAQUIN
COUNTY OF SAN MATEO
COUNTY OF TULARE
COUNTY OF VENTURA
COUNTY OF YOLO
MOUNTAIN HOUSE CSD
ROSSMOORE CSD
TOWN OF ATHERTON
321
8 Setting the Gold Standard
FIRM EXPERIENCE
Listed below are current contracts valued over $2,000,000 annually.
Customer Duration Annual Contract Amount
County of Los Angeles Since 2015 $14,800,000
City & County of San Francisco Since 2017 $6,200,000
City of Riverside Since 2018 $4,400,000
City of Long Beach Since 2016 $3,400,000
City of Fresno Since 2001 $3,400,000
Riverside Public Utilities Since 1997 $3,400,000
City of Anaheim/Anaheim Utilities Since 2007 $3,300,000 City of Corona Since 2010 $3,000,000
City of Industry Since 2020 $3,000,000
County of Orange - Parks Since 2014 $3,000,000
City of Sacramento - Parks Since 2016 $2,800,000
City of San Diego Since 2015 $2,700,000
City of Ontario Since 1998 $2,700,000
City of Sacramento Since 2015 $2,500,000
City of Glendale Since 2015 $2,500,000
Glendale Water & Power Since 2015 $2,500,000
City of Santa Clarita Since 2008 $2,400,000
City of Beverly Hills Since 2000 $2,300,000
City of Fullerton Since1998 $2,300,000
City of Santa Ana Since 2015 $2,000,000
322
9 Setting the Gold Standard
C. FIRM STAFFING & KEY PERSONNEL
Introduction
West Coast Arborist’s (WCA) is a company comprised of a management team and a safety committee. Staff members have diverse educational backgrounds including accounting, business administration, engineering, and forestry. No subcontractors will be used for this project.
Work Force
WCA actively maintains ongoing processes to assure that only qualified and competent staff provides safe and quality tree maintenance services. These skilled employees can only be achieved through both training and work experience. We believe that essential experience should always be obtained through qualified supervision; this includes both basic and extended skills. WCA makes every attempt to ensure that this is undertaken before performing work, leading a crew, or career advancement. The work performed on this contract is routine, recurring and usual. The work includes watering, trimming, pruning, planting, removal and replacement of trees and plants, and servicing of irrigation. The rates included in the Cost Proposal are based on the current prevailing wage determination for “Tree Maintenance (Laborer).” Certification
WCA encourages its employees to get certified through the International Society of Arboriculture, in an effort to raise the standard of professional tree care companies. This standard exemplifies our company’s commitment to providing customers with competent, knowledgeable certified workers. WCA employs a large number of ISA Certified Arborists and ISA Certified Tree Workers.
Crew Evaluation
WCA employees are evaluated through an internal mechanism supervised by our Management Team. Each employee performs their duties according to a criteria-based job description that reflects safety, quality workmanship, productivity, appropriateness of care, problem solving and customer service. A performance appraisal is conducted for each employee upon completion of the probationary period and at least annually thereafter. Each worker is also required to complete a competency assessment and orientation upon hire and annually thereafter in selected areas to assure that ongoing requirements are met and opportunities for improvement are identified.
Staff members have diverse
educational backgrounds
including accounting,
business administration,
engineering, and forestry.
323
10 Setting the Gold Standard
Meet the Team: Project Team
MIKE PALAT Regional Manager/V.P.
Mr. Palat has been with WCA since 2003. He brought several years’ experience in both utility and urban forestry working with ArcView and GPS as well as field experience. As a Regional Manager, he is responsible for field operations and oversees Area Managers in Southern California & Arizona.
Mr. Palat has over 20 years in the tree care industry and is the current Chairman of the San Diego Regional Urban Forests Council. As an ISA Board Certified Master Arborist, Mike has extensive knowledge and experience in the science, practice, and management of the urban forest as it relates to the arboriculture industry. This credential includes completing continued education units (CEUs) each year.
• ISA Board Certified Master Arborst #WE-6541BUM
• B.S. Parks & Recreation Management, minor in Environmental Science • ISA Tree Risk Assessment Qualified
• TCIA Certified Treecare Safety Professional (CTSP) #302 • Wertified Wildlife Protector #575
ISAAC GARZA Area Manager
Isaac has over 15 years’ experience in the arboriculture industry. He started in the municipal sector and joined WCA in 2019 to manage our Desert Cities region. As an Area Manager Isaac manages crews in the field. Ensures company work and safety policies are being followed. Provides guidance to Supervisors in completing safety and crew evaluations. Maintains contact and communications with City Inspectors or assigned representatives to schedule and plan work. Accounts for all crew paperwork and assists in any billing concerns or issues. • ISA Certified Arborist #WE-8689a
• ISA Tree Risk Assessment Qualified
• TCIA Certified Treecare Safety Professional (CTSP) #3312 • TCIA Electrical Hazard Awareness Program
GABRIEL RUIZ Project Supervisor
As Site Supervisor, Gabriel is a full-time employee and speaks fluent English. Gabriel started his career with WCA in 2012 and has a broad knowledge of arboriculture and tree maintenance for municipalities. He is responsible for reviewing the day’s activities, assisting the Area Manager in scheduling, and ensuring proper safety procedures are being followed. As Supervisor, he will communicate with City officials and other interested parties on a daily basis. Report and resolve malfunctions, damage, or industrial injury. He also assists in employee training programs, maintaining records, and filing daily reports and receipts.
• ISA Certified Tree Worker Climber #WE-11568T
• WCA Qualified Arborist
324
11 Setting the Gold Standard
Meet the Team: Support Staff
ANDREW PINEDA GIS Manager
Andrew Pineda has been with WCA since 2018. As WCA’s GIS Manager, he works on a wide range of projects including tree inventories scope and collection, iTree analysis, tree canopy assessments, tree planting prioritization, ArborAccess training, grant funded tree planting projects, and much more. He was worked with tree inventories of all sizes from small campus inventories with less than 5,000 trees to large California cities with over 140,000 trees. He has in-depth knowledge and understanding of tree inventories, urban forestry best practices, and spatial data and works closely with office and field personnel to ensure tree inventories, reports, and analysis exceed customer expectations.
• ISA Certified Arborist #WE-12738A
• FAA UAS Part 107 Remote Pilot
• M.S. Geographic Information Science (GIS), CSU Long Beach • B.A. Environmental Science, Boston University
TIM CROTHERS Plant Health Care Manager
Mr. Crothers has over 20 years of experience working in the horticulture industry. He started working at WCA in 2012 as a supervisor. He was quickly promoted to Area Manager, a role that required him to produce reports as a Certified Arborist as well as train staff and clients in proper tree care, inventory management, landscape design and plant identification. In his role as Plant Health Care Manager, Mr. Crothers supervises arborist services staff and plant health care operations throughout California and Arizona. He oversees the creation of Urban Forestry Master Plans (UFMPs) and is a Registered Consulting Arborist by the American Society of Consulting Arborists. • ISA Board Certified Master Arborist #WE-7655BUM
• B.S. Environmental Horticultureal Science
• ASCA Registered Consulting Arborist #721
• CA Dept. Pesticide Regulation QAL #145321 B, D
• ISA Tree Risk Assessment
• Qualified & TLC Wildlife Aware
ESTELA GARCIA Customer Service Rep. (CSR)
As the CSR (Customer Service Representative), Estela is responsible for providing support to the Area Manager, Site Supervisors, and field crews. She will act as a liaison between WCA and its clients as well as the general public. Estela is responsible for responding to customer service inquires and facilitating contracting functions, such as: generating work orders, mapping, underground service alert, data entry, quality control, list preparation, billing inquiries, and public relations. 325
12 Setting the Gold Standard
Executive Staff
From marketing, contract administration, field and fleet management, to information technology, our Executive Staff is involved in the day-to-day operations supporting each Project Team and customer to ensure the highest quality of tree care is being achieved in the industry.
Patrick Mahoney
President
Richard Mahoney
Secretary
Rose Epperson
Treasurer
Andrew Trotter
V.P. – Field Operations
Chris Crippen
V.P. – I.T.
Victor Gonzalez
V.P. – Business
Development
Debbie DePasquale
V.P. – Internal Operations
Ernesto Macias
V.P. – Risk Management
Nick Alago
V.P. – SoCal Region
Michael Palat
V.P. – SoCal Region
Jason Pinegar
V.P. – NorCal Region
326
13 Setting the Gold Standard
327
14 Setting the Gold Standard
D. PROPOSED METHOD TO ACCOMPLISH WORK
Implementation Plan
To ensure the quality of work and the level of service
expected, WCA abides by a well-defined quality control
plan that incorporates the following:
• Certified personnel
• Safety
• Pruning specifications and guidelines
• Sound equipment
• Public relations
• Proper traffic control
• State-of-the-art communication systems
Area Manager: Isaac Garza
ISA Certification #: WE-8689A
TCIA CTSP #3312
ISA Tree Risk Assessment Qualified
The project Area Manager will be the central point of contact and will work cooperatively with Agency staff, local residents and business owners, etc. The Area Manger will provide overall field supervision and crew management.
Daily Management
Daily management will consist of, but not be limited to:
• Email notification complete with location, crew, equipment type, and work description • Supervise crew personnel to insure proper pruning standards are followed in a safe manner • Traffic control setup and maintenance of work zone
• Ensure work area is left free of debris at the end of shift • Maintain record of work completed each day
• Maintain good public relations at all times
• Provide immediate notification to Agency Inspector upon damage of personal property including a plan for corrective measures to take place within 48 hours Weekly Management
• Weekly management will consist of, but is not limited to:
• Weekly inspection of work completed
• Meet with the Agency to review work schedule and progress • Insure standards of pruning are performed in accordance with Agency specifications • Maintain open communication
Special shifts including
weekends and evenings
can be arranged in
accordance with the
Agency’s specifications.
328
15 Setting the Gold Standard
Public Notification
Upon Agency staff approval, WCA will post a door hanger notice prior to commencement of grid pruning (within 24-48 hours). After tree plantings, door hangers will be provided to residents instructing them on the proper care for their newly planted tree. For more comprehensive outreach we can also submit a press release for special projects or routine maintenance. The Agency may modify the procedures and materials to which we notify residents.
Communication Systems
Our use of modern and reliable communication systems affect our daily job performance by increasing our efficiency. Management and Field Personnel utilize smart phones as both navigational and communication devices in the field. Smart phones have proven to be a convenient method to input data as related to tree inventories, daily work records, timesheets, photos, and billing information; eliminating the need to handwrite data and improving customer service by minimizing response time.
Permits and Licensing
WCA will procure a City Business License as necessary, and any “no-fee” permits prior to commencement of work. Permits (i.e., encroachment, traffic control, etc.) requiring fees will be charged back to the Agency.
Right-of-Way
All work will be performed in the public right-of-way. Employees will not utilize private property for eating, breaks or any other reason or use water or electricity from such property without prior written permission of owner.
Cooperation and Collateral Work
WCA will give right to operate within the project to the Agency workers and/other contractors, utility companies, street sweepers, and others as needed in a cooperative effort to minimize interference in daily operations.
Project Site Maintenance
Work site will be left free of debris at the end of each workday. We will not discharge smoke, dust, or any other air containments in quantities that violate the regulations of any legally constituted authority.
Scheduling of Work
The Area Manager is responsible for scheduling work which shall conform to the Agency’s schedule of performance. We recommend equal distribution of work throughout the course of the fiscal year. Notifications will be provided to residents prior to the start of pruning operations in said area. All work will be performed in a cooperative manner as to cause the least amount of interference or inconvenience.
329
16 Setting the Gold Standard
Workflow Timelines
GRID PRUNING FLOWCHART (Within 30-day Completion)
REMOVAL FLOWCHART (Within 15-day Completion)
PLANTING FLOWCHART (Within 15-day Completion)
EMERGENCY FLOWCHART (Within 1-3 hour Response / 24-hour Completion)
PLANT HEALTH CARE FLOWCHART
330
17 Setting the Gold Standard
Emergency Contacts Sample Planting Door Hanger
In case of emergency AFTER
normal business hours:
866.546.2369
Leave a message, if you do not
receive a call back within 10 minutes,
call the following contacts in order:
Manuel Perez, Supervisor
626.255.2821
Marco Padilla, Supervisor
714.404.7979
Isaac Garza, Area Manager
714.936.9544
Martin Cortez, Area Manager
714.713.0717
AFTER confirmation from on-call
Manager, you can email multiple
locations to:
331
18 Setting the Gold Standard
Quality Control
Feedback
WCA regularly receives and tracks feedback from customers and residents as a means to acknowledge good performance and provide prompt resolution for any negative comments.
Every month, a summary of the feedback is then reviewed by the management team.
Customer Service Department
As we work with, or near, the public,
we are mindful that we will most likely
be the first person the public contacts.
We have a full-time Customer Service
Department with each Customer
Service Representative (CSR) trained
in addressing concerned residents
and bystanders.
Complaints & Damage
Resolution
Should there be any property
damage, we adhere to specific
procedures to resolve the problem.
The Foreman on the job site will notify
the resident and the Inspector immediately.
If the resident is not at home, then we will leave a WCA card with instructions to call our Claims Coordinator in our corporate office. The ultimate goal at each work site is to leave the property in the same condition as before we entered it. We will notify the Agency Representative immediately upon damage of private property including plans for corrective measures to take place within 48 hours.
Any activities found by the Agency to be unacceptable will be rectified immediately. All other complaints will be abated or resolved within twenty-four (24) hours of the occurrence. We have teams specifically assigned for handling damage to properties, both private and public. Through our communication system, we have the ability to dispatch either of these teams and have them respond immediately to the site for proper repair.
We pride ourselves on professional workmanship to avoid these types of incidents, however, should one occur, we take all appropriate measures to resolve the matter in a timely and efficient manner.
Protection of Public and Private Property
WCA will provide all safety measures necessary to protect the public and worker within the work area. We will maintain good public relations at all times. The work will be conducted in a manner which will cause the least disturbance.
332
19 Setting the Gold Standard
Safety & Training
Safety Program
Safety standards are top priority at West Coast Arborists, Inc. Our line of work demands that all work is performed in a manner that provides the maximum safety to the general public as well as our employees. Our crews are instructed to follow the safety standards of ANSI Z133.1 as well as Cal-OSHA requirements. We have one of the most extensive safety training programs in the industry. We provide our employees with state-of -the-art training tools and instructional sessions company wide. Our insurance carriers and Cal-OSHA have recognized us repeatedly for outstanding safety training efforts.
We have a full time Safety & Training Manager, Dane Jensen, that is professionally trained in the field of horticulture. As WCA’s Training Manager, Dane is responsible for staying up-to-date on all tree-related industry standards as related to safety and the wellness of our employees and the public in which we serve. Training materials are regularly reviewed and updated to ensure WCA employees receive the proper education, instruction and hands on experience needed to perform their day to day activities safely and efficiently. Training topics include a full-circle from proper pruning techniques, arboriculture, to customer service and everything in between. • ISA Certified Utility & Municipal Arborist #WE-12014A • ISA Skills Test Evaluator—TW Climber
• TCIA Certified Treecare Safety Professional #3303
• ISA Tree Risk Assessment Qualification #E4068
• American Heart Association BLS and First Aid Instructor Public Convenience and Safety
WCA will comply with any and all local sound control and noise level rules, regulations, and ordinances which apply to any work performed in the contracted area. All work will cease by 5:00 pm or as directed by the Agency (excluding emergency services).
Our line of work demands
that all work is performed
in a manner that provides
the maximum safety to the
general public as well as
our employees.
333
20 Setting the Gold Standard
Employee Training Program
West Coast Arborists, Inc. provides an extensive in-house training curriculum for all employees to broaden their knowledge of the arboriculture field of study. Included in this training are the ISA standards, both Treeworker and Arborist study programs, and a variety of Tree Care Industry Association home study programs. We also offer training courses to our staff in areas of customer service satisfaction, maintaining professional conduct, and Qualified Line Clearance Trimmer Training.
Traffic Control
Traffic control procedures will be set-up in accordance with the Work Area Traffic Control Handbook (WATCH) and State of California Manual of Traffic Controls as well as the Agency Traffic and Safety Operating Rules. WCA will make adequate provisions to insure the normal flow of traffic over the public streets and park roads. Every effort will be made to keep commercial driveways and passageways open to the public during business hours. High visibility arrowboard(s) will be used when needed. Prior to use, the Agency will approve traffic safety equipment and devices. Pedestrian and vehicular traffic shall be allowed to pass through the work areas only under conditions of safety and with as little inconvenience and delay as possible. Unless the work area is totally barricaded or otherwise kept safe, at least one worker will serve to coordinate safe operations on the ground at all times when work operations are in progress.
Our Training and Safety team members are tasked with
completing field evaluations of crews and members are onsite to coach and train employees on safe practices.
Employees receive performance evaluations at 90 days, 6 months, then annually (or as-needed) after their first year. All employees are provided copies of WCA’s Injury & Illness Prevention Program.
WCA is dedicated to
health and safety for
trees, employees,
and the community.
334
21 Setting the Gold Standard
Scope of Services
Grid Tree Pruning
Grid tree pruning is based on pruning in pre-designed districts, or grids on a set cycle and in its entirety. This includes pruning all trees (small, medium and large-sized.) Pruning will include structural pruning, crown raising, and slight crown cleaning in accordance with the standards set forth by the International Society of Arboriculture Pruning Standards (Best Management Practices) and shall have no more than 15% of the live foliage removed at a given time.
Special Request Tree Pruning
Special Request Tree Pruning includes tree maintenance services on designated tree(s) as ordered by the City’s Arborist or designee. This category of pruning may include structural pruning, crown raising, crown cleaning and/or pruning to restore the crown. Whichever work type is ordered by the City, pruning will be performed in accordance with the standards set forth by the International Society of Arboriculture Pruning Standards and the Best Management Practice, Tree Pruning Guidelines. Trees that are identified for a Special Request Tree Prune shall have approximately 25% of the live foliage removed at a given time.
Pruning to reduce the tree’s crown (or Crown Reduction Pruning) may be performed when conditions within the crown of a hardwood tree are such that the overall canopy mass and excessive wood weight needs to be reduced. This type of prune is performed when the City’s primary objective is to maintain or improve tree health and structure and will be charged at the Crew Rental rate as agreed upon by the City and WCA.
Line Clearance
Trees that interfere or have the possibility of interfering with utility lines will be trimmed in a manner to achieve the required clearances as specified and in accordance with the California Public Utilities Commission. It is our goal to protect the current health and condition of the tree and to maintain its symmetry and direct growth away from the utility lines.
Young Tree Maintenance (Optional)
Proper pruning and care during the early stages of the tree’s life will save money in the future, and create a safer, more beautiful, healthy, easy-to-maintain tree. We believe that tree care that is performed early will affect its shape, strength and life span. Our specialized small tree care team consists of certified personnel trained to perform the following under the hourly rate:
• Selective structural pruning
• Removal of dead, interfering, split and/or broken limbs • Pre-conditioning the water retention basin built around the tree • Staking or re-staking
• Adjusting tree ties
• Adjusting trunk protectors
• Weed abatement
335
22 Setting the Gold Standard
Root Pruning
We strongly recommend against any root pruning, however, should the City elect to proceed, we recommend that it be done no closer than 3 times the diameter of the trunk. Roots will be pruned to a depth of approximately 12 inches by cleanly slicing through the roots, so as not to tear or vibrate the root causing damage to the tree. The excavated area will be backfilled with native soil and debris will be hauled away. This is performed under the hourly rate.
Tree and Stump Removal Operations
With a minimum of 48 hours advanced notice, WCA will inform Underground Service Alert (USA) of the location of work for the purpose of identifying any and all utility lines. The removal process consists of lowering limbs delicately onto the ground to prevent any hardscape damage.
Immediately following the removal, the stump will be ground down, if ordered to do so and with proper USA notification. Our standard stump grinder is the Vermeer SC802. This stump grinder is ideal for any size job and can be used to grade large stumps. We also use the Dosko SC69 stump grinders. These are intended to remove tree stumps and exposed root systems close to ground level. Tree removal and stump removal are to be charged separately in accordance with the contract.
Tree Watering
Tree watering will be performed by a full-time, WCA team member on various routes, when requested by the Agency. This team will also be responsible for reporting special care needs to the small tree care team. This could include reporting weeds, soil that has settled, and/or staking and tying needs. WCA currently provides tree watering in the cities of Culver City, Santa Clarita and Santa Monica as part of their regular tree maintenance services.
Emergency Response
We are prepared for emergency calls 24 hours a day, 7 days a week, including holidays. The toll free number is 866-LIMB-DOWN (866-546-2369). This number will be provided to the Agency, Police Department and/or Fire Department. Our emergency response team will do what is necessary to render the hazardous tree or tree-related condition safe until the following workday.
Tree Planting
We can replace trees that have been removed and plant new trees in accordance with the City’s specifications. We are prepared financially and logistically to acquire and purchase selected tree species for tree planting. At a minimum of 48 hours in advance we will inform Underground Service Alert (USA) of the location of work for the purpose of identifying any and all utility lines. A well-trained planting team will perform the soil preparation and installation of the tree.
336
23 Setting the Gold Standard
Crew Rental
Due to our vast amount of resources, including our specialty equipment and qualified personnel we are able to extend our commitment to our customers by providing various miscellaneous services outside of the most common tree maintenance services:
• Misc. use of aerial towers and cranes (including equipment rental) • Crown reduction
• Crown restoration
Arborist Reports
We have full-time Certified Arborists on staff that can prepare detailed arborist reports, tree evaluations and site inspections based on your specific needs. Reporting can be generated for one tree or an entire selection and is handled on a case-by-case basis.
WCA provides the technology,
management, and civic experience
that makes it the preferred tree
management partner across the West.
Plant Health Care
Tim Crothers, Plant Health Care Manager
ISA Board Certified Master Arborist WE-7655 BUM
DPR Qualified Pest Control Applicator #145321, QAL Category B & D Our PHC program managed by Tim goes beyond standard chemical applications. We have developed an efficient Integrated Pest Management Program (IPM) that requires diagnosis before treatment. WCA is staffed with licensed applicators and advisors that are environmentally conscious as well as compliant with the California Department of Pesticide Regulation. This service allows us to provide you with:
• Proper diagnosis based on on-site inspection with laboratory testing when necessary • Proactive and preventative recommendations that reduce the amount of potential pest and disease issues
• Follow-up evaluations to ensure that the recommended treatments result in a healthy and balanced urban forest
337
24 Setting the Gold Standard
Technology and Information Management
ArborAccess
Our tree management program sets us apart from
other companies. With nearly 2,000 active users,
ArborAccess and our mobile app will help you easily
manage your urban forest with ease and
convenience. Tree site attributes include location
(utilizing GPS coordinates), species type, and
parkway size. Features allow you to view and edit
work history records and create work orders directly
from the field, all from our secure cloud.
The information contained in ArborAccess is live
data that can also be linked directly to a GIS
program, such as ArcView, for geo-coding purposes
and can assist your Agency in meeting GASB34
requirements. ArborAccess provides an unlimited
resource of information regarding your urban forest.
Software Training
Our IT Department is based out of our corporate office in Anaheim, CA with regional offices located throughout California and Arizona. Each office has the ability to provide software training to our customers. We are also available to provide training sessions on-site at the customer’s discretion. On-site training is proven to be effective as it provides a guided hands-on experience.
We offer periodic tree maintenance and management workshops each year.
These free workshops are provided to our customers regionally and educate over 250 people annually. They have proven to be a great round-table and networking opportunity for the different agencies in attendance. Presentations are provided by WCA management staff and complimented with guest speakers in the industry.
Certified Arborists and Tree Workers who attend are eligible to receive continuing education credits (CEU’s) from the International Society of Arboriculture.
The success of any urban forest program depends on the proper management of information. Unlimited telephone and/or email support is available to answer technical questions and aid staff in the use of the software system. Software training and support is included in the cost associated with the inventory data collection.
List Tracking System
The List Tracking Report in ArborAccess is a useful tool in the management of incoming work. This report allows both parties to track specific jobs as they are ordered by the Agency. Proper use of this system enables the Agency and WCA to track the completion of work that is ordered.
ArborAccess Features
Ease of use
Create work orders
View tree site details
View work history
View invoices
Mobile app
Live data
GIS/GPS mapping
338
25 Setting the Gold Standard
Billing
WCA, Inc. operates a modern invoicing system that is updated on a daily basis. Progress billings will be submitted to the Customers on a bi-weekly basis, unless otherwise requested. Invoices will reflect an amount complete for the billing period, along with a year-to-date total for that job.
Each billing will include a listing of completed work by address, tree species, work performed and appropriate data acceptable to the customer. This information will be supplied in hardcopy and immediately accessible on ArborAccess. Job balances reflecting the percent of completion for each job can be viewed on ArborAccess.
Maintenance Records
Accurate maintenance records for each location oftentimes can assist the Agency with liability claims. Maintaining a detailed history of the work performed at each location demonstrates good faith in preserving its urban forest. It is imperative that work requests are pulled from the system prior to the work being performed, otherwise inventory accuracy is not guaranteed.
Sample Management Tools:
Detailed Tree Site Characteristics
The advanced technology provides
a valuable tool to urban forestry
professionals by displaying specific
tree site information along with a
representative photograph of the
species type and a recommended
maintenance field. ArborAccess’
built-in quality control features assist
in data accuracy. As maintenance
is performed, the work history is
updated and accompanied with
bi-weekly invoices. This process
eliminates the need for dualinputting and helps keep the tree inventory current and accurate.
339
26 Setting the Gold Standard
Sample: Species Frequency Report
The Species Frequency report can assist your
Agency in identifying the tree population within
the urban forest. This type of information is
valuable in the event of an insect infestation,
deadly disease, or even estimating future
maintenance costs. In addition, an analysis can
be performed to evaluate the history of the
performance of a particular species within your
Agency.
Detailed Reporting Options
Inventory Work History District Frequency
View Invoices Work Type by District Species Frequency (sample above) Job Balances DBH Frequency All Tees at an Address
Green Waste Height Frequency Estimated Tree Value
WCA helps agencies
understand and
manage their canopy
by sharing inventories,
insight, and data.
340
27 Setting the Gold Standard
Equipment List
Equipment
Our modern fleet undergoes daily inspection prior to
use to ensure efficiency and safety. All equipment is
routinely serviced, painted, and detailed. All
equipment used during the duration of this project
will meet state and federal safety requirements and
have all up-to-date certifications, as required.
CHP Biennial Inspection of Terminal
Certification
We have successfully been awarded the CHP
Biennial Inspection Award of Recognition. This
inspection has assisted our company in instituting
several safety programs, as well as our Preventative
Maintenance Program utilized by our in-house fleet
department. The inspection reviews our vehicle
maintenance and repair records, our procedural
methods and policies for vehicle maintenance and
operations. This certification ensures that our vehicles operate safely.
Telematics (GPS)
WCA has partnered with Geo-Tab to provide GPS units on all vehicles and equipment. This investment has given us and our customers the following benefits:
• Provide faster response times and more efficient routing allowing us to service more customers • Lower operational costs by optimizing our fleet size, reducing labor, overtime, and insurance, and minimizing costly vehicle repairs
• Decrease fuel use by monitoring fleet fuel
economy and saving on unnecessary fuel
expenditures
• Reduce emissions by helping drivers improve their
habits such as speed and idle time, and reducing
total miles driven which will significantly reduce
harmful greenhouse gas emissions
• Improve dispatching with landmarks and driving
directions, GPS units helps us to better dispatch so
that we can service more customers, faster
• Recover stolen vehicles reducing liability costs
which can be passed on to customers
341
28 Setting the Gold Standard
IN-HOUSE FLEET MAINTENANCE
We currently have more than 1,600 pieces of fairly new equipment that enables us to replace equipment immediately should there be any unforeseen mechanical problems. We employ over 50 full-time mechanics that perform an in-house fleet maintenance program. This allows our equipment to be in good operating condition necessary for accomplishing the City’s needs. Our mechanics generally work on one particular line of equipment, and by keeping our equipment as uniform as possible our mechanics really get to know the equipment inside and out minimizing down time. Equipment is assigned to different crews and if the crew is shared with another contract the equipment will be as well.
PREVENTATIVE MAINTENANCE PROGRAM
All WCA equipment goes through our Preventative Maintenance program. From our solar powered arrow boards, to our Freightliner Roll Off trucks. Our mechanics generally work on one particular line of equipment, and by keeping our equipment as uniform as possible our mechanics really get to know the equipment inside and out minimizing down time.
SUSTAINABILITY
Over the last few years, we have invested heavily in new equipment to keep our fleet modern, comply with state requirements, meet demand and reduce our effects on the environment. We understand with a fleet as large as ours that we are responsible for the amount of emissions our vehicles produce and actively make an effort to monitor and reduce our carbon footprint.
Through our ability to
dedicate specific
pieces of equipment for
this project, we believe
it will lead to a
successful program.
342
January 1, 2024
WEST COAST ARBORISTS INC
2/28/2025
17432
http://www.arb.ca.gov/doors/compliance_cert1.html
343
344
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 13th day of June, 2024, 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 WEST COAST ARBORISTS, INC., a Corporation, with its principal place of business at 43712 JACKSON STREET, INDIO, CA 92201 ("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:
Arboriculture Services Project
Project No. MLS00026
(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 July 1, 2024, to June 30, 2027, 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 one-year 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 345
Contract No. ___________
2 Revised 07-2023
BBK 72500.00001\32374943.1
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 designates Shawn Muir, Community Services Manager, 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 and the Palm Desert Housing Authority (“Housing Authority”) 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 Patrick Mahoney, President, 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. 346
Contract No. ___________
3 Revised 07-2023
BBK 72500.00001\32374943.1
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 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 347
Contract No. ___________
4 Revised 07-2023
BBK 72500.00001\32374943.1
initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall comply with all relevant provisions of City’s Minority Business 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 Housing Authority, 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 $2,000,000 per occurrence, $4,000,000 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 $2,000,000 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. 348
Contract No. ___________
5 Revised 07-2023
BBK 72500.00001\32374943.1
(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 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 and Housing Authority, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.
(E) Fidelity Coverage. [Reserved]
(F) Cyber Liability Insurance. [Reserved]
(G) Pollution Liability Insurance. [Reserved]
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. 349
Contract No. ___________
6 Revised 07-2023
BBK 72500.00001\32374943.1
(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 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 and Housing Authority, 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 and Housing Authority, 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.
350
Contract No. ___________
7 Revised 07-2023
BBK 72500.00001\32374943.1
(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 and Housing Authority, 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. (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 351
Contract No. ___________
8 Revised 07-2023
BBK 72500.00001\32374943.1
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.
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.
352
Contract No. ___________
9 Revised 07-2023
BBK 72500.00001\32374943.1
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 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 353
Contract No. ___________
10 Revised 07-2023
BBK 72500.00001\32374943.1
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 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 MILLION ONE HUNDRED FOURTEEN THOUSAND ONE HUNDRED TWENTY-FIVE DOLLARS ($1,114,125) per fiscal year 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.
3.3.3 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” 354
Contract No. ___________
11 Revised 07-2023
BBK 72500.00001\32374943.1
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 $1,000 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 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 $1,000 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. 355
Contract No. ___________
12 Revised 07-2023
BBK 72500.00001\32374943.1
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.
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: WEST COAST ARBORISTS, INC.
43712 Jackson Street
Indio, CA 92201
ATTN: Victor Gonzalez
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: Shawn Muir, Public Works
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. 356
Contract No. ___________
13 Revised 07-2023
BBK 72500.00001\32374943.1
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 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, 357
Contract No. ___________
14 Revised 07-2023
BBK 72500.00001\32374943.1
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.
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.
[SIGNATURES ON NEXT PAGE]
358
SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM DESERT
AND WEST COAST ARBORISTS, 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
WEST COAST ARBORISTS, INC. , A
CORPORATION
By:
Its:
PRESIDENT
Printed Name:
PATRICK MAHONEY
By:
Its:
SECRETARY
Printed Name:
RICHARD MAHONEY
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
Bonds: _____
359
Contract No. ___________
Exhibit “A” Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “A”
SCOPE OF SERVICES
A. GENERAL INFORMATION
1. INTRODUCTION
The work to be performed shall consist of providing complete arboricultural services for the City on City approved schedules, and at City hours. Proposer shall provide arborist services to the City on all property that it owns and/or maintains including but not limited to certain roadway medians and parkways, parks, and recreational facilities, landscapes adjacent to facilities, landscapes managed by the City but owned by other agencies such as the Palm Desert Housing Authority Agency, Desert Willow Golf Resort, the cities of Indian Wells, La Quinta, and Rancho Mirage and Riverside County. All work will be in compliance with all applicable local, state, and federal regulations for the prevention of water and air pollution.
2. PROJECT PRECONSTRUCTION MEETING
The successful Proposer shall attend a project pre-construction meeting with City staff.
City supplied materials will be provided at this time.
3. TREE INVENTORY
The Proposer shall become familiar with the landscape locations that will be inventoried.
The City will provide maps of the locations and staff will be available to facilitate the Arboricultural Services contract. All attribute information collected is to be submitted to the City as a Database Table or Excel Spreadsheet, GIS format.
Inventory is to be completed within 120 days from issuance of Notice to Proceed Field Evaluation
Tree Inventory Attributes:
a. Tree Number: The unique number given to each individual tree. No other tree will have this number.
b. GIS Coordinate: Coordinates for each tree collected by sub-meter GPS receiver in California State Plane Coordinate System Zone 6, NAD 83, (Feet) Coordinates. c. Nomenclature: The botanical name, including genus and species, and the local common name will be listed for each specific tree.
d. DBH: The diameter of the tree measured 54 inches above the ground. e. Height: Overall height of tree.
f. Canopy Spread: Width from drip-line to drip-line plus or minus 3 feet. g. Tree Condition: Overall condition of tree, damage, or safety concerns. h. Site Conditions: Will be described as follows:
360
Contract No. ___________
Exhibit “A” Revised 07-2023
BBK 72500.00001\32374915.1
Overhead wires: Any tree located under overhead utility wires.
Hardscape: Any tree that is visibly damaging streets, curbs, sidewalks, or other adjacent hardscape.
Sidewalk/Street proximity: Any tree located within 14 feet of a street, sidewalk, or building.
Sidewalk/Street clearance: Any tree that is presently in violation of the following clearance limits.
Sidewalk: 8 feet
Street: 14 feet
Building: 1 foot (scaffold branches within 1 foot of any buildings) Staking: Any tree that has unnecessary stakes or is in need of staking.
Comments: Any additional information needed to further explain one of the specific categories or any information relating to the tree or site not covered by the specific attributes.
a. Conduct an annual GPS inventory update to include maps, charts and reports that analyze value. In the first year, however, inventory will be conducted semi-annually.
b. Provide to the City online and mobile access to Electronic Tree Inventory and Maintenance software.
c. The contractor shall update the tree inventory during or immediately after the pruning process is complete, noting any deficiencies.
Report
a. Attribute Information: All attribute information collected is to be submitted as a Database Table or Excel Spreadsheet.
b. Database: Data collected to be provided to the City in either ESRI Shapefile or Geodatabase format.
c. The information should be organized to incorporate the different areas in the City:
Landscape Services-Trees that are located on street right of ways or median islands should be identified by street and by their Landscape Maintenance Area number.
Parks-Trees located in parks will be identified by LMA and each park location.
Housing Authority-Trees will be identified by property location.
Desert Willow Golf Resort-Trees should be identified by the course, parking lot, Clubhouse, etc…
Miscellaneous Areas-Miscellaneous areas shall be identified by location and LMA. ex. Haystack retention and natural area
d. Time Frame: Inventory to be completed fiscal year 2024/2025 and updated annually.
4. TREE AND PALM PRUNING
361
Contract No. ___________
Exhibit “A” Revised 07-2023
BBK 72500.00001\32374915.1
The Proposer shall establish a schedule, with the approval of the Director of Public Works or his/her designee. The schedule will take into account previous schedules/frequencies depending on the tree species and time of year. The Director of Public Works or his/her designee and the Proposer will prioritize the pruning schedule based on information provided in the City’s current tree inventory. It shall be the Proposer's responsibility to update the inventory that they have prepared as they maintain the trees and the palms. Palms are pruned annually in spring/summer. Once the pruning schedule is started, pruning crews are to remain working within the City until all trees are completed. The selected proposer shall not move the crew to another location outside the City prior to completion.
The selected proposer will provide arboricultural services including but not limited to the following:
a. Street and sidewalk clearance.
b. Removal of dead or hazardous branches of trees or palms. c. Annual pruning of hardwood trees and palm trees.
d. Inspection of trees for health, condition and for tree hazards including lifted sidewalks and curbs, utility conflicts, and intrusion into roadways or pathways. e. Extra: Removing downed trees from public rights-of-way, City parks, medians, Housing Authority, and Desert Willow Golf Resort. Additional work may include planting trees, staking, pest control, or pruning hedge rows.
This proposal shall require prevailing wage payments and shall be the responsibility of the successful Proposer to manage.
Digital access to the City’s current Tree Inventory is available if requested. • The approximate number of trees is 7,155.
• The approximate number of palm trees is 4,850.
General services requirements outlined above describe the minimum work to be accomplished. Upon final selection of the Proposer, the scope of services may be modified and refined during negotiations with the City. The City at its discretion, at any time may add or remove any Services and/or add or remove Service locations during the course of the Contract, according to the Services needed and activity of each of the Properties. If proposer is unable to accommodate additional locations and Services, the City reserves the right to contract with another contractor to provide the additional Services at additional Properties or existing Properties.
Pruning Standards
a. All work shall conform to the current International Society of Arboriculture (ISA) Pruning Standards, the RFP, Agreement, and these specifications. Proposer shall comply with Standards of CAL OSHA and the American National Standard Institute, (ANSI) – A300 guidelines section 5.3 pruning cuts and with the current edition of the City maintenance guidelines. The Director of Public Works or his/her designee, shall have complete and sole discretion in determining conformance and acceptability of trees pruned by the Proposer. Pruned trees rejected by the Director of Public Works or his/her designee, shall be excluded from payment unless they are re-pruned and approved by Director of Public Works or his/her designee. b. Limbs for traffic clearance shall be pruned or removed to a height not less than fourteen (14) feet from road surface and sidewalk side of the tree where practical, 362
Contract No. ___________
Exhibit “A” Revised 07-2023
BBK 72500.00001\32374915.1
taking into consideration the balanced appearance of the tree. Small limbs, suckers and water sprouts shall be cut outside the branch collar from which they arise. Prune to clear all adjacent structures by a minimum of five feet (5'). Prune branches to lateral limbs to lighten end weight.
c. Work shall be performed by employees trained in tree pruning and shall be supervised by an ISA Certified Arborist. An ISA certified Tree Worker is required to be on-site with the contractor’s pruning crew(s) at all times.
d. Proposer shall exercise precautions as necessary when working adjacent to aerial utilities. In the event that aerial utility wires present a hazard to the Contractor's personnel or others near the work site, work is to immediately cease and the appropriate utility company notified.
e. No hooks, gaffs, spurs or spikes are to be used on any hardwood tree. Any vine or plant growing on the trees shall be removed at ground level, except vines purposefully planted.
f. Each pruning cut should be made just beyond the branch collar or shoulder. Pruning and cutting tools shall be kept sharpened to a condition that will permit leaving an unabraised cambium edge on final cuts. Such tools shall also be kept clean and free from infectious materials.
g. Brush and debris shall be removed daily, sidewalks swept, parkways raked, gutters cleaned and waste material properly disposed. Contractor shall remove at its own expense all rubbish and waste materials resulting from its operations, including any material that may fall in swimming pools, lagoons, or other water features. If on private property, Contractor must obtain permission from the property owner prior to removing debris. All debris must be removed before the end of the day unless otherwise directed by Authority or Authority’s agent.
h. Palm trees; all dead fronds including stubs and seed pods, shall be removed and palms shall be pruned per the City’s Plant Maintenance Guide. Care shall be taken so that no live fronds are partially cut and left hanging. Only healthy fronds shall remain at crown of said tree, except for those palms where skirts or beards are to remain.
Should any fruit appear within 60 days after the palm tree was pruned, the contractor shall remove the fruit and any hanging fronds at no additional cost. i. Structural weaknesses of trees/palms, decayed trunk, branches, or evidence of diseases/pests shall be reported on daily worksheets and submitted to the Director of Public Works or his/her designee, of this contract.
j. When pruning limbs or fronds that are diseased, or infected with fire blight or fungus, all pruning tools shall be cleaned after each cut with alcohol or bleach. k. Topping trees shall not be allowed.
l. Proposer shall provide daily log sheets of work completed to the Director of Public Works or his/her designee.
m. Proposer is hereby required to render and provide tree pruning maintenance services including, but not limited to pruning, staking, and training of trees; root pruning; tree and stump removal; work site debris removal and lawful disposal; traffic control; tree planting, and other associated services required to maintain safe and attractive trees within all City facilities, medians, and parks.
363
Contract No. ___________
Exhibit “A” Revised 07-2023
BBK 72500.00001\32374915.1
n. The contractor is required to inspect for active bird nests inspections prior to the beginning of any tree work. No work shall be done while there is an active bird nest. o. The contractor shall, during the term of this contract, respond to all emergencies within two (2) hours of notification.
p. The contractor shall inform Director of Public Works or his/her designee before removing any dead, diseased or dying tree/palm.
q. Desert Willow and Residential Property Access and Noticing:
The contractor acknowledges that the City provides forty-eight (48) hours-notice in advance of the start of any Work that is to occur at any residential unit. The contractor shall provide sufficient notice to the City before beginning any such Work so that the City may provide timely notice to residents.
The contractor shall maintain pedestrian paths of travel free of obstructions and hazardous conditions, except where the condition is necessary for completion of the Work. To the extent any portion of the Work requires obstructing pedestrian paths of travel, the Work shall be performed so as to minimize the extent of the obstruction.
Where the contractor’s operations may create hazardous conditions to pedestrian paths of travel, appropriate signing and barricades shall be installed to safely route pedestrians around the impacted area. The City shall be given at least 48 hoursnotice prior to the creation of any condition affecting pedestrian paths of travel.
The City may issue an immediate order to the contractor to stop performing work until adequate notice may be provided to residents. Any stoppage, suspension, or delay in the Work resulting from the contractor’s failure to provide adequate notice to the City shall not be a basis for any adjustment to the contract price or the contract time.
5. TRAFFIC CONTROL
The contractor shall furnish and install traffic control in accordance with the CAMUTCD Manual and the WATCH manual, and the encroachment permit.
Traffic control may include, but is not limited to furnishing, placing, maintaining and removing traffic cones, telescoping tree flags, advance warning signs, flagmen, barricades, temporary striping and other safety devices, as required for public safety or as directed by the City Engineer.
Proposer shall provide and post no parking signs 48 hours in advance of the work, except when emergency work is necessary.
6. MAINTENANCE REPORT
The Proposer shall maintain and keep a log that records all on-going, seasonal, and additional work, and maintenance functions performed by Proposer’s personnel. The information will be kept in a format that has been approved by the City and shall be submitted to the City upon request.
7. PROTECTION OF EXISTING FACILITIES AND STRUCTURES
364
Contract No. ___________
Exhibit “A” Revised 07-2023
BBK 72500.00001\32374915.1
The contractor shall exercise due care during the performance of work in protecting from damage all existing facilities, structures, and utilities both above surface and underground on the City's property. Any damage to City property deemed to be caused by the contractor's neglect shall be corrected and paid for by the contractor at no cost to the City.
8. EMPLOYEES UNIFORMS
Employees are required to wear a uniform identifying them as employees of the company. The uniform shall be maintained in a clean and neat order with no rips, tears or permanent stains present. Similarly, all vehicles shall be identified with the name of the company.
The contractor shall make sure that each employee has the correct Personal Protective Equipment (PPE) appropriate for the job.
9. COOPERATION WITH OTHERS/PUBLIC RELATIONS
The contractor shall maintain good public relations at all times. The work shall be conducted in a manner which will cause the least possible interference to the public. The contractor shall maintain telephone availability during normal company business hours to receive and resolve all complaints from the City. The contractor shall make available a representative to investigate all complaints, make personal contact responses, and to effect resolution.
10. THE CITY’S RIGHT TO DO WORK
The City reserves the right to do work in the contract area. The City expects to have one or more separate Contractor/utility companies working in the same area at the same time. Contractor shall coordinate and cooperate with any and all separate Contractors at no additional cost to the City. Such coordination may include, but will not be limited to, participating in regularly scheduled or special meetings with the City, residents, and/or other Contractors; sharing work and materials storage areas; scheduling work to coincide with work of another Contractor and to minimize disruption to residents; and similar tasks requested by the City.
Full compensation for conforming to the requirements of this section shall be considered as included in the prices paid for the various contract items of work involved and not additional compensation will be allowed therefor.
11. INCLEMENT WEATHER
After inclement weather, the contractor will provide inspection of the areas to assess any damage to trees or palms from the weather.
12. CLEANUP
All litter and debris generated during the performance of the contract shall be removed from the project areas the same day it is generated and disposed of off-site in a proper manner and at the contractor's expense. All laws and ordinances applicable to and governing such disposal shall be fully complied with.
13. SOUND CONTROL
365
Contract No. ___________
Exhibit “A” Revised 07-2023
BBK 72500.00001\32374915.1
The operator shall comply with all local sound control and noise level rules, regulations, and ordinances.
14. PARKING OF THE CONTRACTOR’S VEHICLES
No overnight parking of vehicles will be permitted on City streets. Parking on City property shall be with written authorization only.
15. COMPLETION OF WORK
All work shall be completed per the schedule provided by the contractor and approved by the City.
16. ACCESS TO PRIVATE PROPERTY
Prior to any work that will restrict access to private property, the contractor shall notify each affected property owner or responsible person, informing him him/her of the nature of and the approximate duration of the restriction.
17. LEGAL RELATIONS AND RESPONSIBILITY
The Contractor work shall conform to the requirements in the Agreement.
18. DESERT WILLOW GOLF RESORT
Access to the golf course is limited. Work is to be done by climbing. Brush to be removed immediately. Pruning and/or removal may only be done by small vehicles and trailer. Boom trucks, loaders, and heavy equipment will not be permitted on the golf course.
19. OPTIONAL SERVICES
Upon request from the City, the Contractor may provide tree maintenance services beyond the work identified above. Prior to performing any extra Work, the contractor shall prepare and submit a written proposal, including a description of the work, a list of materials, and a schedule for completion. No work shall commence without written approval of the Contractors proposal by the Director of Public Works or his or her designee.
B. INFORMATION AVAILABLE FROM THE CITY
The City will provide copies of all available record information on file at the City. Following are the items available:
a. Pertinent records maintained at the City
b. Current Tree Inventory
c. Landscape staff is also available to answer questions 366
Contract No. ___________
Exhibit “B” Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “B”
SCHEDULE OF SERVICES
C. SCHEDULE
Work shall be completed per the approved schedule. Failure to notify the City of a change and/or failure to perform an item or work on a scheduled day may result in a penalty assessed against the Proposer.
a. In addition, the Proposer, and his/her representative shall meet with the City's Director of Public Works or his/her designee on an as needed basis for the purpose of reviewing the completed work.
b. The general hours of operations shall be City work hours, Monday through Friday, with the exception of the Housing Authority properties whose start time is 8:00 am. No work may be performed on City recognized holidays and weekends, except in the case of emergency or as approved by the Director of Public Works or his/her designee. c. The contractor is required to furnish schedules/reports for planned pruning work to all persons performing any portion of the contract. Schedules/reports must be approved prior to the start of work by the Director of Public Works or his/her designee. The City plans on continuing its current hardwood pruning cycle based on a three (3) to five (5) year cycle, depending on species and based on location and growth. Some tree species are to be pruned annually (i.e. Prosopis, Acacia, Dalbergia, and Parkinsonia). All palms are to be pruned annually. Contractor is to update the tree and palm inventory accordingly.
Palms Approximate
Prune Date
Phoenix dactylifera May 7 – June 15
Washingtonia robusta and Washingtonia robusta “Hybrid’ May 15 – July 15 Bismarckia nobilis May 15 – July 15
Washingtonia filifera July 1 – July 30
Brahea armata July 1 – July 30
Sygarus romanzoffiana July 1 – July 30
Hardwood trees City and Housing
Authority trees.
Spring and/or Fall
season. Summer
not suggested due
to stress pruning
puts on trees.
367
Contract No. ___________
Exhibit “B” Revised 07-2023
BBK 72500.00001\32374915.1
Desert Willow Golf Resort The majority of the
annual hardwood
pruning to take
place between
August 1 and
September 20. This
is best for the
overall Desert
Willow operation.
The second pruning
window would be
December 1 through
December 24.
Scheduled work
may be subject to
change.
Although it is the contractor’s responsibility to schedule their crews, there are priority areas in the City that must be pruned first. These areas are: El Paseo, The Grove, One Quail Place Apartments, and Las Serenas Apartments, subject to the direction of the City. 368
Contract No. ___________
Exhibit “C” Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “C”
COMPENSATION
369
Contract No. ___________
Exhibit “C” Revised 07-2023
BBK 72500.00001\32374915.1
370
Contract No. ___________
Exhibit “C” Revised 07-2023
BBK 72500.00001\32374915.1
371
372
Contract No. ___________
Exhibit “C” Revised 11-2-20
BBK 72500.00001\32374915.1
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) and the Palm Desert Housing Authority (“Housing Authority”) has awarded to WEST COAST ARBORISTS, INC., (hereinafter referred to as the “Contractor”) an agreement for Arboriculture Services Project
(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 June 13, 2024, (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, WEST COAST ARBORISTS, 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 ONE MILLION ONE HUNDRED FOURTEEN THOUSAND ONE HUNDRED TWENTY-FIVE DOLLARS , ($1,114,125), 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 and Housing Authority, 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 and Housing Authority 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:
373
Contract No. ___________
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(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]
374
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_________________________________
Title_______________________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
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.
375
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
376
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.
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
377
Contract No. ___________
PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of Palm Desert (hereinafter designated as the “City”) and Palm Desert Housing Authority (“Housing Authority”), by action taken or a resolution passed June 13, 2024, has awarded to WEST COAST ARBORISTS, INC., hereinafter designated as the “Principal,” a contract for the work described as follows:
Arboriculture Services Project (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 June 13, 2024, (“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 ONE MILLION ONE HUNDRED FOURTEEN THOUSAND ONE HUNDRED TWENTY-FIVE DOLLARS , ($1,114,125) 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 and Housing Authority 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 378
Contract No. ___________
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 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 Housing Authority 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]
379
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
__________________________________
Title_______________________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
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.
380
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
381
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.
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
382
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: June 13, 2024
PREPARED BY: Joe Barron, Senior Contracts and Grants Analyst REQUEST: APPROVE COMMUNITY DEVELOPMENT BLOCK GRANT JOINT RECIPIENT
COOPERATIVE AGREEMENT WITH THE COUNTY OF RIVERSIDE FOR
FISCAL YEARS 2025/26 AND 2026/27
RECOMMENDATION:
1. Authorize participation in the County of Riverside’s Urban County Program for Fiscal Years 2025/26 and 2026/27.
2. Authorize the City Attorney to finalize the Joint Recipient Cooperative Agreement as a Metro City with the County of Riverside.
3. Authorize the City Manager to execute the Joint Recipient Cooperative Agreement as a Metro City with the County of Riverside and take any other actions necessary to effectuate the action taken herewith.
BACKGROUND/ANALYSIS:
On June 8, 2023, the City Council voted to join the Urban County Program with the County of Riverside (County) as a Metropolitan City for three fiscal years, to recognize staff time savings as well as maximize funding opportunities by leveraging the County’s HUD experience and reporting infrastructure. However, following the County’s submission to HUD, staff discovered that the City had been identified incorrectly and began working with County staff to determine the best way to remedy their error. By approving this item, this allows the City to participate in FY 25/26 and FY 26/27.
County and City staff have been collaborating with local and federal Housing and Urban Development (HUD) representatives to resolve the error and facilitate the City's inclusion in the County Program. On March 28, 2024, HUD outlined the necessary steps for progress, which includes the requirement for City Council to authorize reducing the term of the Cooperative Agreement from three fiscal years to two fiscal years.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
The City received a CDBG allocation of $365,446 in FY 2024-25. During Fiscal Years 2025-26 and 2026-27, the City will retain its entire entitlement allocation and share the administrative apportionment with the County. This action does not impact the General Fund.
ATTACHMENTS:
1. Joint Cooperation Agreement Letter
383
City of Palm Desert
CDBG Cooperative Agreement with County of Riverside
2. Joint Cooperation Agreement-Metro City
384
385
386
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
JOINT RECIPIENT COOPERATION AGREEMENT
FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT
FOR FISCAL YEARS 2025-26, 2026-27
This Joint Recipient Cooperation Agreement for the Community Development Block Grant for Fiscal Years 2025-26, and 2026-27, hereinafter referred to as “Agreement” is made and entered into this ______ day of __________ 2024, by and between the COUNTY OF RIVERSIDE, a political subdivision of the State of California, hereinafter referred to as "COUNTY", and CITY OF PALM DESERT an incorporated municipality within the geographical boundaries of the COUNTY, hereinafter referred to as "CITY.” City and County individually referred to herein as “Party” and collectively as the “Parties.”
RECITALS
WHEREAS, the Housing and Community Development Act of 1974, as amended (42 U.S.C.A. § 5301 et seq.) (Public Law 93-383), hereinafter called "ACT", provides that Community Development Block Grant funds hereinafter referred to as "CDBG", may be used for the support of activities that provide decent housing, suitable living environments, and expanded economic opportunities principally for persons of low and moderate-income; and WHEREAS, CDBG regulations require counties to re-qualify as an Urban County under the CDBG program every three years; and
WHEREAS, the CITY has attained Metropolitan City status under the “ACT” and has elected to accept its “Entitlement” status and participate in the COUNTY’s Urban County program as a joint recipient;
WHEREAS, the City Manager of the Municipality is authorized to execute this Agreement on the Municipality’s behalf; and the Director of Housing and Workforce Solutions, a Department of the County of Riverside is authorized to execute this Agreement on the County’s behalf; and
WHEREAS, the execution of this Agreement is necessary to include CITY as a Metropolitan City under COUNTY’s Urban County CDBG program.
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
387
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
NOW THEREFORE, in consideration of the mutual covenants herein set forth and the mutual benefits to be derived there from, the parties agree as follows:
1. GENERAL.
(a). This Agreement gives COUNTY authority to undertake, or assist in undertaking, activities for Fiscal Years 2025-26, and 2026-27, that will be funded from the CDBG Entitlement program and from any program income generated from the expenditure of such funds.
COUNTY and CITY agree to cooperate, to undertake, or to assist in undertaking, community renewal and lower-income housing assistance activities. (b). COUNTY is qualified as an "Urban County" under the ACT. CITY, by executing this Agreement, hereby gives notice of its election to participate in an Urban County Community Development Block Grant program, hereinafter referred to as "CDBG program" or “Urban County Program.”
(c). By executing this Agreement, CITY understands that it may not apply for grants from appropriations under the Small Cities or State CDBG Programs for fiscal years during the period in which it participates in the Urban County’s CDBG program. (d). By executing this Agreement, CITY understands, acknowledges, and agrees that it will receive no formula HOME fund allocation from the COUNTY’S Urban County Program. Pursuant to 24 CFR 92.101, the CITY may elect to form a HOME Investment Partnership Act (HOME) Consortium with the COUNTY in order to be considered for HOME funding through the COUNTY. CITY may apply for HOME funds from the State of California, if permitted by the State.
(e). By executing this Agreement, CITY understands, acknowledges, and agrees that it will receive no formula Emergency Solutions Grant (ESG) funds from the COUNTY’S Urban County Program but may apply for ESG funds from the State of California, if permitted by the State.
2. TERM.
The term of this Agreement shall be for two (2) years commencing on July 1, 2025, and expiring on June 30, 2027,and until the funds granted and program income received during 388
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
the two-year program period are expended and the funded activities completed. Neither the County nor the Municipality may terminate, withdraw, or be removed from the program during the twoyear program period.
This Agreement will renew automatically for participation in successive three-year Urban County qualification periods, unless the Municipality or the County provide written notice to the other party that it elects not to participate in a new qualification period. The terminating party shall send a copy of the termination to the HUD field office by the date specified in HUD’s Urban County Qualification Notice. The County will notify the Municipality in writing of the Municipality’s right to make this election. A copy of the County’s notification must be sent to the HUD field office by the date specified in the Urban County Qualification Notice.
The Parties agree to adopt amendment(s) to this Agreement as may be required by HUD to meet any new Urban County Qualification requirement(s) for subsequent qualification cycles, when applicable. Failure by either Party to adopt any such amendment, and to submit such amendment to HUD, will void the automatic renewal of such qualification period.
3. PREPARATION OF FEDERALLY REQUIRED FUNDING
APPLICATIONS.
The County of Riverside Housing and Workforce Solutions, subject to approval of COUNTY’s Board of Supervisors, shall be responsible for preparing and submitting to the U.S.
Department of Housing and Urban Development (HUD), in a timely manner, all reports and statements required by the ACT and the Federal regulations promulgated by HUD to secure entitlement grant funding under the CDBG, HOME, and ESG programs. This duty shall include the preparation and processing of COUNTY Housing, Community, and Economic Development Needs Identification Report, Citizen Participation Plan, the County Five-Year Consolidated Plan, One-Year Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER), and other related programs which satisfy the application requirements of ACT and its regulations.
4. COMPLIANCE WITH FEDERAL STATUTES, REGULATIONS AND
OTHER APPLICABLE STATUTES, REGULATIONS AND ORDINANCES.
389
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
(a) COUNTY and CITY will comply with the applicable provisions of the ACT and those Federal regulations promulgated by HUD pursuant thereto, as the same currently exists or may hereafter be amended.
(b) The COUNTY and CITY are hereby obligated to take all actions necessary to assure compliance with COUNTY’s certification regarding affirmatively furthering fair housing pursuant to Section 104 (b) of Title I of the Housing and Community Development Act of 1974, as amended, that the grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964, and the implementing regulations at 24 CFR Part 1, and the Fair Housing Act, and the implementing regulations at 24 CFR Part 100, and will comply with the obligation to affirmatively further fair housing. The parties shall comply with Section 109 of Title I of the Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR Part 6, which incorporates Section 504 of the Rehabilitation Act of 1973, and the implementing regulations at 24 CFR Part 8, Title II of the Americans with Disabilities Act of 1974, and the implementing regulations at 28 CFR Part 35, the Age Discrimination Act of 1975, and the implementing regulations at 24 CFR Part 146, and Section 3 of the Housing and Urban Development Act of 1968, and all other applicable laws and regulations. The Parties agree that Urban County funding in no event will be used for Activities in, or in support of , any cooperating unit of general local government that impedes the County’s actions to comply with the County’s fair housing certification and duty to affirmatively further fair housing. (e) CITY agrees that the Urban County Program funding for activities in, or in support of, the CITY are prohibited if CITY does not affirmatively further fair housing within CITY’S jurisdiction or impedes COUNTY actions to comply with its fair housing certification. (f) CITY and COUNTY shall meet the citizen participation requirements of 24 CFR 570.301 and provide Urban County Program citizens with all of the following:
i. The estimate of the amount of CDBG funds proposed to be used for activities that will benefit persons of low and moderate-income; 390
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
ii. A plan for minimizing displacement of persons as a result of activities assisted with CDBG funds and to assist persons actually displaced as a result of such activities;
iii. A plan that provides for and encourages citizen participation, with particular emphasis on participation by persons of low and moderate-incomes, residents of slum and blighted areas, and of areas in which funds are proposed to be used, and provides for participation of residents in low and moderate-income neighborhoods; iv. Reasonable and timely access to local meetings, information, and records relating to the grantee’s proposed use of funds, as required by the regulations of the Secretary, and relating to the actual use of funds under the ACT; v. Provide for public meetings to obtain citizen views and to respond to proposals and questions at all stages of the community development program, including at least the development of needs, the review of proposed activities and review of program performance.
Meeting shall be held after adequate notice, at times and locations convenient to potential or actual beneficiaries, and with accommodation for the disabled. (g). CITY shall develop a community development plan, for the period of this Agreement, which identifies community development and housing needs and specifies both short and long-term community development objectives.
(h). CITY certifies, to the best of its knowledge and belief, that:
i. No Federal appropriated funds have been paid or will be paid, by or on behalf of the CITY, to any person influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan or cooperative agreement.
ii. If any funds other than Federally-appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of 391
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions.
iii. The CITY shall require that the language provided in Sections 4(e)(i) and 4(e)(ii) of this Agreement be included in the award documents for all sub-awards at all tiers (including subcontracts, sub- grants and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into.
(iv). In accordance with Section 519 of Public Law 101-144, (the 1990 HUD Appropriations Act), the CITY certifies that it has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations, and that it has adopted and is enforcing applicable State and local laws against physically barring entrance to, or exit from, a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction.
5. COMPLIANCE WITH POLICY AND PROGRAM OBJECTIVES.
The COUNTY’s Board of Supervisors have adopted policies and procedures to ensure efficient and effective administration of the CDBG program. COUNTY will provide these policies and procedures to CITY within a reasonable time after this Agreement’s commencement date. COUNTY and City agree to comply with these said policies and program objectives and to take no actions to obstruct implementation of the approved 2024-2029 Five Year Consolidated Plan and the subsequent Five Year Consolidated Plan.
6. COMPLIANCE WITH FEDERAL STATUTES, REGULATIONS AND OTHER APPLICABLE STATUTES, REGULATIONS AND ORDINANCE.
392
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
a. COUNTY and CITY agree to cooperate to undertake, or assist in undertaking, essential community renewal and lower-income housing assistance activities, as approved and authorized between the parties in the CDBG Agreements, including the Consolidated Plan. b. COUNTY and CITY agree to take all actions necessary to assure compliance with the urban county's certification under section 104(b) of Title I of the Housing and Community Development Act of 1974, that the grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964, and the implementing regulations at 24 CFR part 1, and the Fair Housing Act, and the implementing regulations at 24 CFR part 100, and will affirmatively further fair housing. See 24 CFR § 91.225(a) and Affirmatively Furthering Fair Housing Definitions and Certifications (86 FR 30779, June 10, 2021), to be codified at 24 CFR 5.151 and 5.152; and available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoringaffirmatively-furthering-fair-housing-definitions-and-certifications. c. COUNTY and CITY agree to comply with section 109 of Title I of the Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR part 6, which incorporates Section 504 of the Rehabilitation Act of 1973, and the implementing regulations at 24 CFR part 8, Title II of the Americans with Disabilities Act, and the implementing regulations at 28 CFR part 35, the Age Discrimination Act of 1975, and the 14 implementing regulation at 24 CFR part 146, and Section 3 of the Housing and Urban Development Act of 1968.
d. COUNTY AND CITY agree to comply with other applicable laws. e. COUNTY AND CITY agree that CDBG urban county funding is prohibited for activities in, or in support of, any cooperating unit of general local government that does not affirmatively further fair housing within its own jurisdiction or that impedes the county's actions to comply with the county's fair housing certification.
.
1. PROHIBTION OF CDBG FUND TRANSFERS
393
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
The CITY may not sell, trade, or otherwise transfer all or any portion of the CDBG funds to another such cooperating city, metropolitan city, urban county, or Indian tribe, that directly or indirectly receives CDBG funds in exchange for any other funds, credits, or non-Federal considerations, CITY must use the CDBG funds for activities eligible under Title I of the ACT.
7. OTHER AGREEMENTS.
Pursuant to Federal regulations at 24 CFR 570.501(b), CITY is subject to the same requirements applicable to sub-recipients, including the requirement of a written agreement set forth in Federal regulations at 24 CFR 570.503. For each fiscal year during the term of this Agreement, COUNTY and CITY shall enter into an additional agreement, commonly known as a Metropolitan City Supplemental Agreement, that will have a term coinciding with a CDBG Program Year and enumerate the project(s) CITY will implement with its entitlement funds. Said Supplemental Agreement will set forth the time schedule for completion of said project(s) and any funding sources, in addition to entitlement funds, that will be used in completing the project(s). If substantial compliance with the completion schedule, due to unforeseen or uncontrollable circumstances, cannot be met by CITY, the schedule for the project(s) may be extended by COUNTY. If COUNY determines that substantial progress toward drawdown of funds is not made during the term of the Supplemental Agreement, the entitlement funds associated with the project(s) may be reprogrammed by COUNTY, to other activities as determined by COUNTY, after COUNTY provides appropriate written notice to CITY. COUNTY's decision not to extend the completion schedule associated with the project(s), or to reprogram the entitlement funds associated with the project(s), will not excuse CITY from complying with terms of this Agreement.
8. DETERMINATION OF PROJECTS TO BE FUNDED AND
DISTRIBUTION OF ENTITLEMENT FUNDS.
CITY agrees to submit to COUNTY in writing, no later than the date specified by COUNTY prior to each program year, the activities that the CITY desires to implement with its entitlement funds, said designation to comply with statutory and regulatory provisions governing citizen's participation. Said designation is to be reviewed by the COUNTY's Housing and Workforce Solutions to determine that the projects are eligible under Federal regulations for 394
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
funding and inclusion in the One Year Action Plan of the County’s Five-Year Consolidated Plan and consistent with both Federal and COUNTY policy governing use of Community Development Block Grant (CDBG) funds.
In the event that CITY fails to submit to COUNTY the identified activities that the CITY desires to implement with its entitlement funds by the date specified prior to each program year, the COUNTY may determine the activities to be funded, without consent of the CITY, consistent with both Federal and COUNTY policy governing use of Community Development Block Grant (CDBG) funds.
Consistent with Sections 3, 4, 5, 6, and 7 of this Agreement, COUNTY's Board of Supervisors will make the final determination of the distribution and disposition of all CDBG funds received by COUNTY pursuant to the Act.
9. COMMUNITY DEVELOPMENT BLOCK GRANT MANUAL.
CITY warrants that those officers, employees, and agents, retained by it and responsible for implementing projects funded with CDBG have received, reviewed, and will follow the Community Development Block Grant Manual that has been prepared and amended by COUNTY, which Manual is incorporated herein and made a part hereof by this reference.
10. REAL PROPERTY ACQUIRED OR PUBLIC FACILITY
CONSTRUCTED WITH CDBG FUNDS.
When CDBG funds are used, in whole or in part, by CITY to acquire real property or to construct a public facility, CITY shall comply with the National Environmental Policy Act of 1969 (42 U.S.C. § 4321, et seq.), the California Environmental Quality Act (Cal. Pub. Resources Code § 21000, et seq.), the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. § 4630, et seq.), and California Government Code Sections 7260 et seq., as those laws may be amended from time-to-time and any Federal or state regulations issued to implement the aforementioned laws.
In addition, the following is to occur:
(a) Title to the real property shall vest in CITY;
395
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
(b) The real property title will be held by or the constructed facility will be maintained by the CITY for the approved use until five years after the date that the project is reported as “Completed” within the annual Consolidated Annual Performance and Evaluation Report.
(c) While held by CITY, the real property or the constructed facility is to be used exclusively for the purpose for which acquisition or construction was originally approved by COUNTY;
(d) CITY shall provide timely written notice to COUNTY of any action which would result in a modification or change in the use of the real property purchased or improved, in whole or in part, with CDBG or HOME funds from that planned at the time of acquisition or improvement, including disposition.
(e) CITY shall provide timely written notice to citizens and opportunity to comment on any proposed modification or change;
(f) Written approval from COUNTY must be secured if the property or the facility is to be put to an alternate use that is or is not consistent with Federal regulations governing CDBG funds;
(g) Should CITY desire during the five (5) year period to use the real property or the constructed facility for a purpose not consistent with applicable Federal regulations governing CDBG funds or to sell the real property or facility, then:
(i) If CITY desires to retain title, it will have to reimburse either COUNTY or the Federal government an amount that represents the percentage of current fair market value that is identical to the percentage that CDBG funds initially comprised to when the property was acquired or the facility was constructed;
(ii) If CITY sells the property or facility, or is required to sell the property or facility, CITY is to reimburse the COUNTY an amount that represents the percentage of proceeds realized by the sale that is identical to the percentage that CDBG funds comprised of the monies paid to initially acquire the property or construct the facility. This percentage amount will be calculated after deducting all actual and reasonable cost of sale from the sale proceeds. 396
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
11. DISPOSITION OF INCOME GENERATED BY THE EXPENDITURE
OF CDBG FUNDS.
CITY shall inform COUNTY in writing of any income generated by the expenditure of CDBG funds received by CITY from COUNTY. CITY may retain program income so generated and may only be used for eligible activities, as determined by the COUNTY, in accordance with all CDBG requirements, including all requirements for citizen participation.
The COUNTY is required by HUD to monitor and report the receipt and use of all program income. CITY is required to track, monitor, and report any and all program income as requested by COUNTY.
12. TERMINATION.
Except as provided for in Section 2, CITY and COUNTY cannot terminate or withdraw from this Agreement while it remains in effect.
13. NOTICES.
All correspondence and notices required or contemplated by this Agreement shall be delivered to the respective parties at the addresses set forth below and are deemed submitted two days after their deposit in the United States mail, postage prepaid:
COUNTY OF RIVERSIDE CITY OF
Heidi Marshall, Director Todd Hileman, City Manager
County of Riverside HWS City of Palm Desert
P.O. Box 1528 73510 Fred Waring Drive
Riverside, CA 92502 Palm Desert, CA 92260
14. AGREEMENT ADMINISTRATION.
397
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
The City Manager in the case of the City of Murrieta, and the Director of Housing and Workforce Solutions, in the case of the County of Riverside, or their designee, shall administer the terms and conditions of this Agreement for their respective city or county.
15. COOPERATION; FURTHER ACT.
The PARTIES shall cooperate fully with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purpose of the Agreement.
16. NO THIRD-PARTY BENEFICIARIES.
This Agreement is made and entered into for the sole protection and benefit of the PARTIES hereto and shall not create any rights in any third parties. No other person or entity shall have any right or action based upon the provisions of the Agreement.
17. SECTION HEADINGS.
The Section headings herein are for the convenience of the PARTIES only and shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the provisions or language of this Agreement.
18. FORMER AGREEMENTS UTILIZING COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS BETWEEN COUNTY AND CITY.
All agreements between CITY and COUNTY regarding the use of CDBG funds for fiscal years 1975-76 through fiscal years 2023-2024, and any Supplemental Agreements there under, shall remain in full force and effect. If the language of this Agreement is in conflict or inconsistent with the terms of any prior said agreements between CITY and COUNTY, the language of this Agreement will be controlling.
19. INDEMNIFICATION
CITY agrees to indemnify, defend, and hold harmless COUNTY and its authorized officers, employees, agents, and volunteers from any and all claims, actions, losses, damages, and/or liability arising from CITY acts, errors or omissions and for any costs or expenses incurred by COUNTY on account of any claim therefore, except where such indemnifications is prohibited by law. CITY shall promptly notify COUNTY in writing of the occurrence of any such claims, 398
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
actions, losses, damages, and/or liability.
CITY shall indemnify and hold harmless COUNTY against any liability, claims, losses, demands, and actions incurred by COUNTY as a result of the determination by HUD or its successor that activities undertaken by CITY under the program(s) fail to comply with any laws, regulations, or policies applicable thereto or that any funds billed by and disbursed to CITY under this Agreement were improperly expended.
20. COMPLIANCE WITH LAWS AND REGULATIONS.
By executing this Agreement, the Parties hereby certify that they will adhere to and comply with all Federal, state and local laws, regulations and ordinances.
21. ENTIRE AGREEMENT.
It is expressly agreed that this Agreement embodies the entire agreement of the Parties in relation to the subject matter hereof, and that no other agreement or understanding, verbal or otherwise, relative to this subject matter, exists between the Parties at the time of execution.
22. SEVERABILITY.
Each paragraph and provision of this Agreement is severable from each other provision and in the event any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provision will never the less continue in full force without being impaired or invalidated in any way.
23. ASSIGNMENT.
CITY shall not make any sale, assignment, conveyance or lease of any trust or power, or transfer in any other form with respect to this Agreement, or delegate or assign any interest in this Agreement without prior written approval of the County.
24. INTERPRETATION AND GOVERNING LAW.
This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are 399
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof.
25. WAIVER.
Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter.
26. JURISDICTION AND VENUE.
Any action at law or in equity arising under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed in the Superior Court of California, County of Riverside, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court or jurisdiction.
27. AMENDMENTS
No change, amendment, or modification to the Agreement shall be valid or binding upon CITY or COUNTY unless such change, amendment, or modification is in writing and duly executed. CITY and COUNTY agree to adopt any necessary amendments to this Agreement to incorporate changes required by HUD as set forth in the Urban County Qualification Notice.
Amendments must be submitted to HUD as provided in the Urban County Qualification Notice and failure to do so will void the automatic renewal for such qualification period.
28. SPECIAL PROVISIONS FOR METROPOLITAIN CITY/URBAN
COUNTY JOINT RECIPIENT:
(a) The CITY is part of the Urban County Program for purposes of planning and implementation for the entire period of the Urban County Qualification for program years 2024-25, 2025-26, and 2026-27 under the CDBG program.
(b) HUD will consider the CITY as a unit of general local government that is part of the COUNTY’s Urban County program.
(c) HUD shall determine the annual amount of CDBG allocation to which the 400
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
CITY is entitled, and the COUNTY will be the grant recipient. (d) The CITY’s allocation will be that portion of the total annual allocation as specified by written notice from HUD, less thirteen (13%) to be retained by the COUNTY for administration of the Urban County CDBG program.
(e) In the event that the COUNTY receives supplemental CDBG funding from HUD, pursuant to a national emergency, disaster, or economic recovery, the CITY will receive its allocation of said supplemental CDBG funding if HUD has determined the CITY’s portion of the COUNTY’s allocation. The CITY’s supplemental CDBG allocation will be subject to the retention of administrative funding found in Paragraph (d) of this Section and subject to applicable provisions of Sections 3, 4, 5, 6, and 7 of this Agreement. (f) All other terms and conditions applicable to an Urban County participating city shall apply to the CITY.
29. PROHIBITION OF CDBG FUND TRANSFER
The CITY may not sell, trade, or otherwise transfer all or any portion of the CDBG funds to another such cooperating city, metropolitan city, urban county, or Indian tribe, that directly receives CDBG funds in exchange for any other funds, credits, or non-Federal considerations. CITY must use the CDBG funds for activities eligible under Title I of the ACT.
30. AUTHORITY TO EXECUTE.
The persons executing this Agreement or exhibits attached hereto on behalf of the Parties to this Agreement hereby warrant and represent that they have the authority to execute this Agreement and warrant and represent that they have the authority to bind the respective Parties to this Agreement to the performance of its obligations hereunder.
31. INCORPORATION OF RECITALS
The Parties hereby affirm the facts set forth in the recitals above. Said recitals are incorporated herein and made an operative part of this Agreement.
32. COUNTERPARTS
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. 401
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
33. ELECTRONIC SIGNATURE
Each party of this Amendment to Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this Agreement. The parties further agree that the electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code.
In the event that any signature is delivered by facsimile or electronic transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as though such facsimile or electronic signature page were an original thereof.
The Parties may sign in writing or by electronic signature. An electronic signature, facsimile copy, or computer image of a signature will be treated, and will have the same effect as, an original signature, and will have the same effect, as an original signed copy of this document. This Acknowledgement may be amended or modified only by a written instrument signed by authorized representatives of both Parties.
34. COUNTERPARTS
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. [SIGNATURE ON FOLLOWING PAGE]
402
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
IN WITNESS WHEREOF, the COUNTY and CITY have executed this Agreement on the date shown below.
Date: _______________________
COUNTY OF RIVERSIDE, CITY OF PALM DESERT,
a political subdivision of the a Charter City
State of California
BY: ____________________________ BY: _________________________ Heidi Marshall, Director City Manager
Housing and Workforce Solutions
APPROVED AS TO FORM: ATTEST:
Minh C. Tran, County Counsel
BY: ________________________
By: __________________________________ City Clerk
Paula S. Salcido, Deputy County Counsel
APPROVED AS TO FORM:
BY: __________________________
City Attorney
403
Joint Recipient Cooperation Agreement For CDBG Funds 2025-2026
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
COUNTY COUNSEL CERTIFICATION
The Office of County Counsel of the County of Riverside hereby certifies that the terms and provisions of this Agreement are fully authorized under state and local law and that the Agreement provides full legal authority for the COUNTY to undertake, or assist in undertaking, essential community development and housing assistance activities specifically urban renewal and publicly assisted housing.
Minh C. Tran
County Counsel
By:
Deputy, Paula S. Salcido
404
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: June 13, 2024
PREPARED BY: Anthony J. Mejia, City Clerk
REQUEST: AMENDMENT NO. 6 TO THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS ASSEMBLY BILL 2766 MEMORANDUM OF
UNDERSTANDING
RECOMMENDATION:
1. Approve Amendment No. 6 to the Coachella Valley Association of Governments (CVAG) Assembly Bill 2766 Memorandum of Understanding (MOU), extending the term through June 30, 2026, and maintaining the contributions at 75% for the Regional PM 10 Street Sweeping Program.
2. Authorize the City Attorney to make any necessary nonmonetary changes to the agreement.
3. Authorize the Mayor to execute the agreement.
BACKGROUND/ANALYSIS:
Since the early 1990s, CVAG and its member agencies have cooperated on the Regional PM 10 Street Sweeping Program. As such, CVAG member agencies have participated in the AB 2766 MOU, where they contribute 75% of their AB 2766 funds to CVAG for the program.
This program is a key component of the Coachella Valley’s State Implementation Plan to address high levels of PM 10, which places the Coachella Valley in a non-attainment designation.
In June 2020, the CVAG Executive Committee approved Amendment No. 5 to the MOU for a term of four years, ending on June 30, 2024. On April 29, 2024, the CVAG Executive Committee approved Amendment No. 6 to the MOU to extend the term for an additional two years, ending on June 30, 2026, and maintaining the existing 75% contribution for the Regional PM 10 Street Sweeping Program.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
The City of Palm Desert receives approximately $74,000 annually from South Coast Air Quality District for programs that promote the goal of attaining Federal and State air standards. As a result of the MOU, an estimated annual amount of $55,500 (75%) is transmitted to CVAG for its participation in the Regional PM 10 Street Sweeping Program. The remaining amount (25%) is utilized for other programs such as charging station monitoring software, employee rideshare, and the annual Sunline Student Art Bus Wrap. Therefore, other than administrative costs, there is no financial impact on the general fund.
405
City of Palm Desert
Amendment No. 6 to AB 2766 MOU with CVAG
ATTACHMENTS:
1. Amendment No. 6 to MOU
2. CVAG Executive Committee Staff Report, dated April 29, 2024 406
407
408
409
410
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: June 13, 2024
PREPARED BY: Shawn Muir, Community Services Manager
REQUEST: AUTHORIZE THE CITY MANAGER TO APPROVE THE PURCHASE OF 169,000 POUNDS OF GRASS SEED FROM THE LOWEST
RESPONSIBLE BIDDER FOR FISCAL YEAR 2024/25 (PROJECT NO.
MLS00021)
RECOMMENDATION:
1. Authorize the City Manager to approve the purchase of 169,000 pounds of grass seed from the lowest responsible bidder for Fiscal Year 2024/25.
2. Authorize the City Manager to execute the agreement.
BACKGROUND/ANALYSIS:
The City of Palm Desert (City) and Desert Willow Golf Resort (DWGR) purchase grass seed on an annual basis to overseed City parks, sports fields, greenbelts, the DWGR’s Firecliff and Mountain View golf courses. Each year, the City and DWGR combine their seed orders to maximize cost savings.
Seed growers typically release their seed prices to suppliers the first or second week of July for the overseeding season. Various seed suppliers have informed City staff that seed production is stabilizing and prices will continue to be competitive. However, increased fuel charges and inflation will impact the final cost per seed pound. Although City staff anticipates there will be enough seed availability to overseed the City’s and DWGR’s turf areas, increased transportation costs are factored in to ensure prompt delivery.
The City and DWGR staff discussed the option of receiving bids before the first week of July to meet DWGR’s delivery deadline of September 9, 2024. The cost of seed fluctuates annually and can be challenging to estimate. This year, rye seed prices are projected to range between $1.50 to $1.75 per pound.
Based on information received thus far, the seed costs for Fiscal Year 2024-25 are anticipated to replicate last year’s prices. The following table provides the historical seed cost per pound, as well as the estimated cost for fiscal year 2024/25:
*Estimate
Seed
Price Per Pound
2020 2021 2022 2023 2024*
Perennial rye grass seed blend $1.04 $1.75 $2.20 $1.50 $1.50 Perennial rye grass seed, Apron $1.14 $2.00 $2.25 $1.58 $1.58 Poa Trivialis grass seed $3.20 $4.00 $5.25 $4.99 $4.99
411
City of Palm Desert
Delegate and Authorize the City Manager to Approve the Purchase of Grass Seed
**Estimate includes tax and shipping plus 10% markup for cost variation.
City staff has advertised through OpenGov a Request for Quotes with a due date of July 12, 2024. Due to the City Council’s summer meeting schedule, time needed to execute the agreement, and delivery schedule deadlines, City staff is requesting authorization for the City Manager to approve the purchase of 169,000 pounds of grass seed to the lowest, responsible bidder. This expediency will help secure the lowest possible price and the seed quantity required for a successful overseeding season.
Legal Review:
This report has been reviewed by the City Attorney’s office.
Strategic Plan:
The Parks and Recreation Priority 1 Goal is highlighted with this project. Priority 1 Goal mandated that our park system be maintained in a high-quality state.
FINANCIAL IMPACT:
The proposed operations budget for the Public Works Department includes funds in the amount of $100,000 under various operating accounts. Although staff anticipates seed costs to remain the same as last fiscal year, it does anticipate using additional seed and an increase in fuel charges. The City will use 46,000 pounds of Perennial Rye Grass Seed (estimated at $1.50/per pound or $69,000); approximately $81,000, including sales tax and shipping.
Although staff expect seed costs to remain the same as last fiscal year, it has budgeted a 10% markup from last year’s cost to ensure adequate funding. The following is the estimated allocation budget for each account; however, this does not necessarily mean that the amount will be limited to these areas, that the full amount will be allocated to each budget nor that the full amount will be spent:
FY 2024-25 Account # Budget Funds Available
Civic Center Park 1104610-4332001 $40,000
Tri-Cities Sports Facilities 1104610-4337100 $20,000
Parks 1104611-4332001 $30,000
Haystack Greenbelt 2764374-4332100 $10,000
Desert Willow Golf Resort 4414159-4809200 $225,000
$325,000
The Firecliff Renovation will not impact the need for rye grass seed. Desert Willow Golf Resort will use the remaining 123,000 pounds of seed for the approximate amount of $218,000, which
COST BREAKDOWN
Year DWGR Cost City Cost Total
2019 $137,301.20 $32,127.20 $169,428.40
2020 $149,177.40 $35,859.20 $189,039.60
2021 $230,500.00 $59,500.00 $290,000.00
2022 $312,044.00 $80,597.00 $392,641.00
2023 $207,807.00 $64,553.00 $272,360.00
2024** $218,197.00 $81,399.00 $299,596.00
412
City of Palm Desert
Delegate and Authorize the City Manager to Approve the Purchase of Grass Seed
has been included in the DWGR operations budget. Therefore, there will be no further financial impact beyond the contract amount to the general fund.
413
414
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: June 13, 2024
PREPARED BY: M. Gloria Sanchez, Records Coordinator
REQUEST: RESOLUTION TO AUTHORIZE DESTRUCTION OF OBSOLETE
RECORDS FROM THE CITY MANAGER DIVISION
RECOMMENDATION:
Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, SETTING FORTH ITS FINDINGS AND AUTHORIZING THE
DESTRUCTION OF PAPER RECORDS FROM THE OFFICE OF THE CITY MANAGER, AS INDICATED ON THE RECORDS RETENTION SCHEDULE (ADOPTED DECEMBER 15, 2022), RECORDS FROM 1994 THROUGH 2019.”
BACKGROUND/ANALYSIS:
Government Code Section 34090 permits the destruction of City records with the written consent of the City Attorney and approval of the City Council. The City’s records retention program, adopted on December 15, 2022, by Resolution No. 2022-98, establishes retention periods for all City records and provides for the systematic destruction of obsolete records.
Attached is Exhibit “A” the Records Destruction Certificate which lists the records submitted for destruction. The Certificate will be reviewed and signed by the City Attorney as well as the City Clerk prior to destruction of all records.
FINANCIAL IMPACT:
Destroying obsolete records reduces the costs associated with offsite document storage and records management.
ATTACHMENTS:
1. Resolution
2. Records Destruction Certificate – Exhibit “A”
415
416
Form RS-2/2023
C:\Program Files\eSCRIBE\TEMP\15503362220\15503362220,,,01 Resolution.docx Thursday, June 06, 2024 RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, SETTING FORTH ITS FINDINGS AND AUTHORIZING THE
DESTRUCTION OF PAPER RECORDS FROM THE OFFICE OF THE CITY
MANAGER, AS INDICATED ON THE RECORDS RETENTION SCHEDULE (ADOPTED DECEMBER 15, 2022), RECORDS FROM 1994 THROUGH 2019 (EXHIBIT A)
WHEREAS, the Office of the City Manager of the City of Palm Desert, California, has records that have met or exceeded the retention period caused by the official files, records, exhibits, and other documents of said office pursuant to the Retention Schedule set forth on City Council Resolution No. 2022-98; and
WHEREAS, said files are not the subject of any claim, litigation, investigation, or audit.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:
Section 1. That the above recitations are true and correct and constitute the findings of the City Council in this matter.
Section 2. That it does hereby approve the destruction of all documents and records from files as set forth in Exhibit “A,” attached hereto, which have met or exceeded their retention period.
Section 3. That the Citizens on Patrol unsuccessful applications, Citizens on Patrol inactive applications, and Citizens on Patrol general files have exceeded their retention period (Exhibit A). Digital and paper records will be destroyed.
ADOPTED ON _________, 2024.
____________________________
KARINA QUINTANILLA, MAYOR
ATTEST:
________________________________
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2024-___ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on _____________, 2024, by the following vote:
417
RESOLUTION NO. 2024-
June 6, 2024
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEROF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on __________________.
________________________________
ANTHONY J. MEJIA
CITY CLERK
418
Citywide Records Management Policy Resolution No. 2022-71 Resolution No. 2024-
EXHIBIT A
CITY OF PALM DESERT
AUTHORITY TO DESTROY OBSOLETE RECORDS
I consent to the destruction of these obsolete records according to accepted policies and procedures.
City Clerk Date City Attorney Date
Approved by City Council:
Original: City Clerk’s Office
Dept. Retention
No.
Description
of Record
Years
Covered
Retention
Period
Shred or
Discard
City
Manager CM-002
Citizens on Patrol –
Unsuccessful
Applications
2012-2017 3 yrs. Shred
City
Manager CM-003 Citizens on Patrol –Applications 2004-2017 Inactive/Separation + 3 yrs. Shred City
Manager CM-004 Citizens on Patrol –General Files 1994-2019 2 yrs. Shred 419
420
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: June 13, 2024
PREPARED BY: Michelle Nance, Deputy City Clerk
REQUEST: RECEIVE AND FILE THE INVESTMENT REPORT, GENERAL FUND,
PARKVIEW OFFICE COMPLEX, AND DESERT WILLOW GOLF RESORT
FINANCIAL MONLTHLY REPORTS FOR JANUARY THROUGH APRIL,
2024
RECOMMENDATION:
Receive and file the monthly Investment Report, General Fund, Parkview Office Complex, and Desert Willow Golf Resort Financial Monthly Reports for January through April 2024.
BACKGROUND/ANALYSIS:
On March 26, 2024, and May 28, 2024, the Finance Committee reviewed the financial reports.
The Finance Committee reviews the reports on a bi-monthly basis and then the reports are forwarded to the City Council.
Staff recommends the reports be received and filed.
FINANCIAL IMPACT:
There is no financial impact with this action.
ATTACHMENTS:
1. City Treasurer’s Investment Report
2. General Fund Report
3. Parkview Office Complex Report
4. Desert Willow Golf Resort Financial Report
421
422
Monthly Investment Summary Report
January 2024
_________________________________________________________________________________
CITY OF PALM DESERT
Y I E L D P E R F O R M A N C E
The City’s current benchmark, 5-year
T-Bills, aligns with the current 0-5
years investment strategy. The City’s
performance of 4.82% is doing better
than the 5-year T-Bill benchmark
which was at 3.91%.
A C T I V I T Y
Investment transactions were
executed in accordance with the
California State Government Code,
the City’s Investment Policy, and all
bond indentures.
Key Highlights:
• 5.5 million withdrawn from
CAMP to meet policy
requirements.
• 5 million in Corporates
matured and reinvested in
US Treasury
• Asset Class Money Market
Funds have been added.
These funds include the
sweep account for the main
checking account and funds
pending reinvestment.
O V E R V I E W
This report summarizes the City’s
investment activities and Staff analysis
for the month ending January 31, 2024.
I N V E S T M E N T S U M M A R Y
$ Millions
Beginning Ending
Book Value Purchases & Redemptions & Book Value % of
Asset Class 1/1/2024 Deposits Withdrawals 1/31/2024 Portfolio Agencies $ 15.97 $ - $ - $ 15.97 6.5%
Corporates 24.99 - (5.00) 19.99 8.1%
US Treasury 16.99 7.49 - 24.48 9.9%
CAMP Pool 176.04 0.81 (5.50) 171.34 69.4%
LAIF Pool 0.91 0.01 - 0.92 0.4%
County Pool 2.75 - - 2.75 1.1%
Money Market Funds 8.57 13.92 (10.88) 11.61 4.7%
Investments
Total $ 246.21 $ 22.23 $ (21.38) $ 247.06 100%
Custodian ^ 65.54 0.57 - 66.11
Trustee ^ 2.95 - - 2.95
Cash 1.86 33.06 (29.80) 5.11
Cash & Cash
w/Fiscal Agents
Total $ 70.35 $ 33.63 $ (29.80) $ 74.18
Total $ 316.56 $ 55.86 $ (51.18) $ 321.24
^ = Restricted funds based upon bond indenture terms.
4.53 4.59
4.82 4.82 4.9
4.82 3.3
3.59 3.67 3.843
3.929 4.012
4.23 4.6 4.82
4.31 3.84 3.91
5.52 5.55 5.56 5.58 5.55 5.54
3 3.5
4 4.5
5 5.5
6 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan
Yield Performance - Total Porfolio In Percentages
City Yield LAIF Yield 5Y T-Bill CAMP
423
Monthly Investment Summary Report
January 2024
_________________________________________________________________________________
CITY OF PALM DESERT
C U R R E N T A S S E T A L L O C A T I O N
As noted above Money Market Funds
have been added to the Investment
Allocations.
Additionally, the Local Government
Allocation has been brought within the
Max Allocation.
M A N A G E D P O R T F O L I O M A T U R I T I E S
The managed
portfolio is
continuing to be
diversified with
41.37% of
investments
scheduled to mature
in 2-5 years. This is
bring the City more
in line with our 0-5
year investing
strategy.
Agencies,
6.46%
Corporates,
8.09%
US Treasury,
9.91%
Local Govt,
70.84%
Money
Market
Funds, 4.70%
0% 25% 50% 75% 100%
Agencies
Corporates
US Treasury
Local Govt
Money Market Funds
Investment Allocation Actual to Max
Allocation
Max Allocation Allocation
0.00%
10.00%
20.00%
30.00%
0-6M 6-12M 1-2Y 2-3Y 3-4Y 4-5Y
29.34%
21.09%
8.20%
15.11%
13.36% 12.90%
Investment Maturity
424
Monthly Investment Summary Report
January 2024
_________________________________________________________________________________
CITY OF PALM DESERT
M O N T H L Y M A R K E T V A L U E C H A N G E S
For January there was an overall increase of 4.583% compared to the prior month.
Market Values December January $ Change
Federal Agency 17,386,214.86 15,629,622.00
(1,756,592.86) *
Corporate Note 24,601,929.00 19,678,474.00
(4,923,455.00) *
US Treasury 15,591,367.00 24,910,023.56
9,318,656.56 *
Total 57,579,510.86 60,218,119.56
2,638,608.70 4.583%
* The high dollar changes between investment types are related to PFM better diversifying our portfolio, in line with our current portfolio, to take better advantage of high available yields.
This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund city expenditures for the next six months. US Bank Custody Services has provided market value prices for all corporate securities. All balances are bank balances. The "% of Portfolio" calculation on the Portfolio Summary page omits demand deposits. _______________________________________________
Veronica Chavez, Finance Director
Veronica Chavez (Mar 11, 2024 11:29 PDT) Mar 11, 2024
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
Parameters: Query: Fund Summary
Fund Summary Report County of Riverside Treasurer-Tax Collector Bank: oneof
Account Number: oneof 052460, 052470
Counterparty: equalto
Run Date: 05-Feb-2024 12:33:23 PM User: Susan
From :
To :
As at :
01-Jan-2024
31-Jan-2024
05-Feb-2024
Balance Calculation Based On: Value Date
Account Number Account Name Balance Forward Total Receipts Total Payments Total 052460 City Of Palm Desert $2,745,508.13 $0.00 $0.00 $2,745,508.13 Printed on 2/5/2024 End of Report Page 1 of 1
443
RDA Successor Agency
Monthly Investment Summary Report
January 2024
_________________________________________________________________________________
CITY OF PALM DESERT
A C T I V I T Y
2nd half tax payment
received, Debt service
transferred to trustee.
Replated payments will go
out 02/01 and 04/01.
This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Pursuant to ABX126, the availability of cash to fund the Palm Desert RDA Successor Agency's debt service is dependent upon the County of Riverside and the State of California. All balances are bank balances. _______________________________________________
Veronica Chavez, Finance Director
O V E R V I E W
This report summarizes the RDA
Successor Agency investment activities
for the month ending January 31, 2024.
I N V E S T M E N T S U M M A R Y
Beginning Ending
Book Value Purchases & Redemptions & Book Value
Asset Class 1/1/2024 Deposits Withdrawals 1/31/2024
CAMP Pool 6,140.97 28.79 - 6,169.76
LAIF Pool 769.22 7.73 - 776.95
County Pool 349.70 - - 349.70
Investments
Total $ 7,259.89 $ 36.52 $ - $ 7,296.41
Trustee ^ 15,780,923.66 14,485,878.62 (7,436,391.08) 22,830,411.20 Cash 2,859,202.62 10,731,461.00 (7,050,371.02) 6,540,292.60 Cash & Cash
w/Fiscal Agentys
Total $ 18,640,126.28 $ 25,217,339.62 $ (14,486,762.10) $ 29,370,703.80 Total $ 18,647,386.17 $ 25,217,376.14 $ (14,486,762.10) $ 29,378,000.21 ^ = Restricted funds based upon bond indenture terms.
Veronica Chavez (Mar 11, 2024 11:29 PDT) Mar 11, 2024
444
445
446
447
448
Palm Desert Housing Authority
Monthly Investment Summary Report
January 2024
_________________________________________________________________________________
CITY OF PALM DESERT
This investment portfolio complies with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund Housing Authority operations for the next six months. All balances are bank balances.
_______________________________________________
Veronica Chavez, Finance Director
O V E R V I E W
This report summarizes the Palm Desert
Housing Authority investment activities
for the month ending January 31, 2024.
I N V E S T M E N T S U M M A R Y
$ Millions
Beginning Ending
Book Value Purchases & Redemptions & Book Value
Asset Class 1/1/2024 Deposits Withdrawals 1/31/2024
CAMP Pool 55.35 0.26 - 55.61
LAIF Pool 1.01 0.01 - 1.02
Investments
Total $ 56.36 $ 0.27 $ - $ 56.63
Cash 1.48 0.77 (0.73) 1.52
Total $ 57.84 $ 1.04 $ (0.73) $ 58.15
^ = Restricted funds based upon bond indenture terms.
Veronica Chavez (Mar 11, 2024 11:29 PDT) Mar 11, 2024
449
450
451
452
01-2024 Investment summary
Final Audit Report 2024-03-11
Created: 2024-03-11
By: James Bounds ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAmiFfAzggFYVQtZFnn3B76VuLd9SV_cGs "01-2024 Investment summary" History
Document created by James Bounds ([email protected]) 2024-03-11 - 6:23:00 PM GMT- IP address: 64.60.5.80
Document emailed to Veronica Chavez ([email protected]) for signature 2024-03-11 - 6:24:02 PM GMT
Email viewed by Veronica Chavez ([email protected]) 2024-03-11 - 6:28:45 PM GMT- IP address: 152.39.237.199 Document e-signed by Veronica Chavez ([email protected]) Signature Date: 2024-03-11 - 6:29:36 PM GMT - Time Source: server- IP address: 64.60.5.80 Agreement completed.
2024-03-11 - 6:29:36 PM GMT
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
Y I E L D P E R F O R M A N C E
The City’s performance (in blue) of
5.08% is doing better than the 5-year
T-Bill benchmark (in green) which
was at 4.72%, which is raising. We
will monitor these yields with PFM.
A C T I V I T Y
Investment transactions were
executed in accordance with the
California State Government Code,
the City’s Investment Policy, and all
bond indentures.
Key Highlights:
• $2.95 million was allocated
to the CAMP project to
maintain sufficient liquidity
for anticipated May
expenditures.
O V E R V I E W
This report summarizes the City’s
investment activities and Staff analysis
for the month ending April 30, 2024.
I N V E S T M E N T S U M M A R Y
$ Millions
Beginning Ending
Book Value Purchases & Redemptions & Book Value % of
Asset Class 4/1/2024 Deposits Withdrawals 4/30/2024 Portfolio Federal Agency $ 18.48 $ 2.91 $ - $ 21.39 8.0%
Medium-Term Note 14.27 0.81 - 15.08 5.7%
US Treasury 32.95 - (6.52) 26.43 9.9%
Commercial Paper 0.66 2.95 - 3.61 1.4%
CAMP Pool 185.48 4.84 - 190.32 71.4%
LAIF Pool 0.92 0.01 - 0.93 0.3%
County Pool 2.77 - - 2.77 1.0%
Money Market Funds 10.14 6.03 (10.21) 5.97 2.2%
Investments
Total $ 265.68 $ 17.56 $ (16.73) $ 266.51 100%
Custodian ^ 66.68 0.29 - 66.97
Trustee ^ 14.24 - (7.33) 6.92
Cash 4.48 25.39 (25.58) 4.29
Cash & Cash
w/Fiscal Agents
Total $ 85.40 $ 25.68 $ (32.91) $ 78.17
Total $ 351.08 $ 43.24 $ (49.64) $ 344.68
^ = Restricted funds based upon bond indenture terms.
4.82 4.9 4.82 5 5.1 5.08
3.843
3.929 4.012
4.122 4.232
4.272
4.31 3.84 3.91
4.26 4.21 4.72
5.58 5.55 5.54 5.5 5.48 5.44
3 3.5
4 4.5
5 5.5
6 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr
Yield Performance - Total Portfolio In Percentages
City Yield LAIF Yield 5Y T-Bill CAMP
528
Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
C U R R E N T A S S E T A L L O C A T I O N
PFM is continuing to diversify
the portfolio by investing in
additional policy approved
asset classes such as
Commercial Paper.
M A N A G E D P O R T F O L I O M A T U R I T I E S
The managed portfolio is continuing
to balance the ladder of maturities
over 0-5 years.
Federal Agency,
8.03%
Medium-Term
Note, 5.66%
US Treasury,
9.92%
Commercial
Paper, 1.35%
Local Govt,
72.80%
Money Market
Funds, 2.24%
0% 25% 50% 75% 100%
Federal Agency
Medium-Term Note
US Treasury
Commercial Paper
Local Govt
Money Market Funds
Investment Allocation Actual to Max Allocation
Max Allocation Allocation
0.00%
10.00%
20.00%
30.00%
0-6M 6-12M 1-2Y 2-3Y 3-4Y 4-5Y
7.47%
23.71%
10.66%
24.83%
14.06%
19.27%
Investment Maturity
529
Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
M O N T H L Y M A R K E T V A L U E C H A N G E S
For the month of April, there was an overall decrease of 0.517% compared to the prior month.
Market Values March April $ Change
Federal Agency
18,212,367.34 21,092,928.65
2,880,561.31 *
Medium-Term
Note
14,237,943.07 14,883,786.90 645,843.83 *
US Treasury
33,061,197.29 26,237,073.48
(6,824,123.81) *
Commercial
Paper
658,889.17
3,614,241.19
2,955,352.02 *
Total
66,170,396.87 65,828,030.22
(342,366.65)
-
0.517%
This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund city expenditures for the next six months. US Bank Custody Services has provided market value prices for all corporate securities. All balances are bank balances. The "% of Portfolio" calculation on the Portfolio Summary page omits demand deposits. _______________________________________________
Veronica Chavez, Finance Director
Veronica Chavez (May 17, 2024 19:04 PDT)
530
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
May 01, 2024
LAIF Home
PMIAAverage Monthly
Yields
CITY OF PALM DESERT
CITY TREASURER
73-510 FRED WARING DRIVE
PALM DESERT, CA 92260-2578
Account Number:
April 2024 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type
Confirm
Number
Web
Confirm
Number Authorized Caller Amount
4/15/2024 4/12/2024 QRD 1751968 N/A SYSTEM 9,831.27
Account Summary
Total Deposit: 9,831.27 Beginning Balance: 920,108.22
Total Withdrawal: 0.00 Ending Balance: 929,939.49
5/1/24, 12 15 PM LAIF Regular Monthly Statement
https //laifms treasurer ca gov/RegularStatement aspx 1/1 557 Parameters: Query: Fund Summary
Fund Summary Report County of Riverside Treasurer-Tax Collector Bank: oneof
Account Number:
Counterparty: equalto
Run Date: 01-May-2024 10:18:07 AM User: Susan
From :
To :
As at :
01-Apr-2024
30-Apr-2024
01-May-2024
Balance Calculation Based On: Value Date
Account Number Account Name Balance Forward Total Receipts Total Payments Total 052460 City Of Palm Desert $2,774,885.66 $0.00 $0.00 $2,774,885.66 Grand Total: $2,775,239.10 $0.00 $0.00 $2,775,239.10
Printed on 5/1/2024 End of Report Page 1 of 1
558
Palm Desert Housing Authority
Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
A C T I V I T Y
This investment portfolio complies with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund Housing Authority operations for the next six months. All balances are bank balances.
_______________________________________________
Veronica Chavez, Finance Director
O V E R V I E W
This report summarizes the Palm Desert
Housing Authority investment activities
for the month ending April 30, 2024.
I N V E S T M E N T S U M M A R Y
$ Millions
Beginning Ending
Book Value Purchases & Redemptions & Book Value
Asset Class 4/1/2024 Deposits Withdrawals 4/30/2024
CAMP Pool 47.82 0.21 - 48.03
LAIF Pool 1.02 0.01 - 1.03
Investments
Total $ 48.84 $ 0.22 $ - $ 49.06
Cash 1.82 0.82 (0.56) 2.08
Total $ 50.66 $ 1.04 $ (0.56) $ 51.14
Veronica Chavez (May 17, 2024 19:04 PDT)
559
560
561
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
May 01, 2024
LAIF Home
PMIAAverage Monthly
Yields
PALM DESERT HOUSING AUTHORITY
CITY TREASURER
73-510 FRED WARING DRIVE
PALM DESERT, CA 92260-2578
Account Number:
April 2024 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type
Confirm
Number
Web
Confirm
Number Authorized Caller Amount
4/15/2024 4/12/2024 QRD 1750498 N/A SYSTEM 10,867.83
Account Summary
Total Deposit: 10,867.83 Beginning Balance: 1,017,134.55 Total Withdrawal: 0.00 Ending Balance: 1,028,002.38
5/1/24, 12 17 PM LAIF Regular Monthly Statement
https //laifms treasurer ca gov/RegularStatement aspx 1/1 562 563
RDA Successor Agency
Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
A C T I V I T Y
Debt service payments made.
This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Pursuant to ABX126, the availability of cash to fund the Palm Desert RDA Successor Agency's debt service is dependent upon the County of Riverside and the State of California. All balances are bank balances. _______________________________________________
Veronica Chavez, Finance Director
O V E R V I E W
This report summarizes the RDA
Successor Agency investment activities
for the month ending April 30, 2024.
I N V E S T M E N T S U M M A R Y
Beginning Ending
Book Value Purchases & Redemptions & Book Value
Asset Class 4/1/2024 Deposits Withdrawals 4/30/2024
CAMP Pool 6,225.42 27.77 - 6,253.19
LAIF Pool 776.95 8.30 - 785.25
County Pool 353.44 3.37 - 356.81
Investments
Total $ 7,355.81 $ 39.44 $ - $ 7,395.25
Trustee ^ 22,474,011.09 2,624,178.82 (5,236,542.53) 19,861,647.38 Cash 5,809,574.64 - (19,389.40) 5,790,185.24
Cash & Cash
w/Fiscal Agentys
Total $ 28,283,585.73 $ 2,624,178.82 $ (5,255,931.93) $ 25,651,832.62 Total $ 28,290,941.54 $ 2,624,218.26 $ (5,255,931.93) $ 25,659,227.87 ^ = Restricted funds based upon bond indenture terms.
Veronica Chavez (May 17, 2024 19:04 PDT)
564
565
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
May 01, 2024
LAIF Home
PMIAAverage Monthly
Yields
S/A TO THE PALM DESERT REDEVELOPMENT
AGENCY
FINANCE DIRECTOR
73-510 FRED WARING DRIVE
PALM DESERT, CA 92260-2578
Account Number:
April 2024 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type
Confirm
Number
Web
Confirm
Number Authorized Caller Amount
4/15/2024 4/12/2024 QRD 1750919 N/A SYSTEM 8.30
Account Summary
Total Deposit: 8.30 Beginning Balance: 776.95
Total Withdrawal: 0.00 Ending Balance: 785.25
5/1/24, 12 17 PM LAIF Regular Monthly Statement
https //laifms treasurer ca gov/RegularStatement aspx 1/1 566 567
04-2024 Investment summary
Final Audit Report 2024-05-18
Created: 2024-05-17
By: James Bounds ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAnXSWDVEwexMtlmQa-iwP_NihvkeeqDe9 "04-2024 Investment summary" History
Document created by James Bounds ([email protected]) 2024-05-17 - 8:56:50 PM GMT
Document emailed to Veronica Chavez ([email protected]) for signature 2024-05-17 - 8:57:00 PM GMT
Email viewed by Veronica Chavez ([email protected]) 2024-05-18 - 1:55:44 AM GMT
Document e-signed by Veronica Chavez ([email protected]) Signature Date: 2024-05-18 - 2:04:03 AM GMT - Time Source: server Agreement completed.
2024-05-18 - 2:04:03 AM GMT
568
Monthly Financial Report
January 2024
CITY OF PALM DESERT
OVERVIEW
This report summarizes the City’s
financial performance for the
month ending January 31, 2024.
Financial analysis for this report is
provided for the General Fund
REVENUES TO DATE
EXPLAINED
The first half of every fiscal year presents a
negative cash flow picture as our primary
revenue sources ramp up for the year for the
following reasons:
Property Tax is received in January/June.
Sales Tax is generally highest in Q4 and Q1.
Transient Occupancy Tax is also at its peak
in Q4 and Q1, as those times are considered
“season” for the desert. CY YTD Actual
reflects a slight decrease compared to PY
Actual and CY Budget. This is on trend with
current economic forecasts.
Budgets are approved as an annual total, so
for the purpose of this report YTD Budget is
calculated by percentage of PY YTD Actual.
General Govt costs include costs associated
with disaster/emergency expenditures
related to Tropical Storm Hillary.
Expenditure variances may result from
timing differences in billing.
GENERAL FUND SUMMARY
569
Monthly Financial Report
January 2024
CITY OF PALM DESERT
Timing of expenditures vary
throughout the fiscal year.
General Government costs
include insurance, internal
departments costs,
homelessness services, audit
and contributions.
EXPENDITURES TO DATE
GENERAL FUND EXPENDITURES
This summary report is
derived from detailed
financial information
generated by the City’s
Finance Department. If
you have questions or
would like additional
information on this report,
please contact the
Finance Department via
email at
[email protected]
YEAR OVER YEAR COMPARISON
570
Monthly Financial Report
February 2024
CITY OF PALM DESERT
OVERVIEW
This report summarizes the City’s
financial performance for the
month ending February 29, 2024.
Financial analysis for this report is
provided for the General Fund
REVENUES TO DATE
EXPLAINED
The first half of every fiscal year presents a
negative cash flow picture as our primary
revenue sources ramp up for the year for the
following reasons:
Property Tax is received in January/June.
Sales Tax is generally highest in Q4 and Q1.
Transient Occupancy Tax is also at its peak
in Q4 and Q1, as those times are considered
“season” for the desert. CY YTD Actual
reflects a slight decrease compared to PY
Actual and CY Budget. This is on trend with
current economic forecasts.
Budgets are approved as an annual total, so
for the purpose of this report YTD Budget is
calculated by percentage of PY YTD Actual.
General Govt costs include costs associated
with disaster/emergency expenditures
related to Tropical Storm Hillary.
Expenditure variances may result from
timing differences in billing.
GENERAL FUND SUMMARY
571
Monthly Financial Report
February 2024
CITY OF PALM DESERT
Timing of expenditures vary
throughout the fiscal year.
General Government costs
include insurance, internal
departments costs,
homelessness services, audit
and contributions.
EXPENDITURES TO DATE
GENERAL FUND EXPENDITURES
This summary report is
derived from detailed
financial information
generated by the City’s
Finance Department. If
you have questions or
would like additional
information on this report,
please contact the
Finance Department via
email at
[email protected]
YEAR OVER YEAR COMPARISON
572
Monthly Financial Report
March 2024
CITY OF PALM DESERT
OVERVIEW
This report summarizes the City’s
financial performance for the
month ending March 31, 2024.
Financial analysis for this report is
provided for the General Fund
REVENUES TO DATE
EXPLAINED
The first half of every fiscal year presents a
negative cash flow picture as our primary
revenue sources ramp up for the year for the
following reasons:
Property Tax is received in January/June.
Sales Tax is generally highest in Q4 and Q1.
Transient Occupancy Tax is also at its peak
in Q4 and Q1, as those times are considered
“season” for the desert. CY YTD Actual
reflects a slight decrease compared to PY
Actual and CY Budget. This is on trend with
current economic forecasts.
Budgets are approved as an annual total, so
for the purpose of this report YTD Budget is
calculated by percentage of PY YTD Actual.
General Govt costs include costs associated
with disaster/emergency expenditures
related to Tropical Storm Hillary.
Expenditure variances may result from
timing differences in billing.
GENERAL FUND SUMMARY
573
Monthly Financial Report
March 2024
CITY OF PALM DESERT
Timing of expenditures vary
throughout the fiscal year.
General Government costs
include insurance, internal
departments costs,
homelessness services, audit
and contributions.
EXPENDITURES TO DATE
GENERAL FUND EXPENDITURES
This summary report is
derived from detailed
financial information
generated by the City’s
Finance Department. If
you have questions or
would like additional
information on this report,
please contact the
Finance Department via
email at
[email protected]
ADMI N /GENERAL SERVIC E
*Administrative and General Services Breakouts provided at the request of Finance Committee Member Garcia 574
Monthly Financial Report
April 2024
CITY OF PALM DESERT
OVERVIEW
This report summarizes the City’s
financial performance for the
month ending April 30, 2024.
Financial analysis for this report is
provided for the General Fund
REVENUES TO DATE
EXPLAINED
The first half of every fiscal year presents a
negative cash flow picture as our primary
revenue sources ramp up for the year for the
following reasons:
Property Tax is received in January/June.
Sales Tax is generally highest in Q4 and Q1.
Transient Occupancy Tax is also at its peak
in Q4 and Q1, as those times are considered
“season” for the desert. CY YTD Actual
reflects a slight decrease compared to PY
Actual and CY Budget. This is on trend with
current economic forecasts.
Budgets are approved as an annual total, so
for the purpose of this report YTD Budget is
calculated by percentage of PY YTD Actual.
General Govt costs include costs associated
with disaster/emergency expenditures
related to Tropical Storm Hillary.
Expenditure variances may result from
timing differences in billing.
GENERAL FUND SUMMARY
575
Monthly Financial Report
April 2024
CITY OF PALM DESERT
*Administrative and General Services Breakouts provided at the request of Finance Committee Member Garcia Timing of expenditures vary
throughout the fiscal year.
General Government costs
include insurance, internal
departments costs,
homelessness services, audit
and contributions.
EXPENDITURES TO DATE
GENERAL FUND EXPENDITURES
This summary report is
derived from detailed
financial information
generated by the City’s
Finance Department. If
you have questions or
would like additional
information on this report,
please contact the
Finance Department via
email at
[email protected]
ADMIN/GENERAL SERVICES
576
Parkview Office Complex
Statement of Activities
Month Ended January 31,2024
January-24 January-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget 73-710 Fred Waring Dr. - Two (2) Story Building $ 2,521 $ (29,854) $ (32,375) -1284.31% -1184.31% $ 17,646 $ (9,716) $ (27,362) -155% -55% 73-720 Fred Waring Dr. - One (1) Story Building $ 3,188 $ 15,342 $ 12,154 381.31% 481.31% $ 22,313 $ 150,703 $ 128,390 575% 675% Combined Summary of Net Income $ 5,708 $ (14,513) $ (20,221) -354.23% -254.23% $ 39,958 $ 140,987 $ 101,029 252.84% 352.84% Summary of Net Income
$(35,000)
$(30,000)
$(25,000)
$(20,000)
$(15,000)
$(10,000)
$(5,000)
$-
$5,000
$10,000
$15,000
$20,000
Budget Actual
January Net Income
73-720 Fred Waring Dr. - One (1)
Story Building
73-710 Fred Waring Dr. - Two (2)
Story Building
$(20,000)
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Budget Actual
YTD Net Income
577
Parkview Office Complex
Statement of Activities
Month Ended January 31,2024
January-24 January-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues*
Rental $ 38,750 $ 18,208 $ (20,542) -53% 47% $ 271,250 $ 143,125 $ (128,125) -47% 53% Total Revenues $ 38,750 $ 18,208 $ (20,542) -53% 47% $ 271,250 $ 143,125 $ (128,125) -47% 53% Expenses**
Tenant Improvements $ 6,717 $ - $ (6,717) -100% 0% $ 47,017 $ - $ (47,017) -100% 0% Repairs & Maintenance- Building $ 1,550 $ 6,902 $ 5,352 345% 445% $ 10,850 $ 13,670 $ 2,820 26% 126% Repairs & Maintenance- Streets $ 1,033 $ 188 $ (845) -82% 18% $ 7,233 $ 940 $ (6,293) -87% 13% Repairs & Maintenance- Other Equip $ 1,033 $ - $ (1,033) -100% 0% $ 7,233 $ - $ (7,233) -100% 0% Utilities-Gas/Electric $ 7,059 $ 5,433 $ (1,625) -23% 77% $ 49,411 $ 43,528 $ (5,883) -12% 88% 444 CAM Janitorial Services $ 13,740 $ 29,645 $ 15,905 116% 216% $ 96,180 $ 71,571 $ (24,609) -26% 74% 444 CAM Landscaping Services $ 2,642 $ 4,000 $ 1,358 51% 151% $ 18,492 $ 14,000 $ (4,492) -24% 76% 444 CAM Alarm $ 315 $ 432 $ 117 37% 137% $ 2,205 $ 1,296 $ (909) -41% 59% 444CAM Pest Control $ 171 $ 165 $ (6) -3% 0% $ 1,194 $ 413 $ (781) -65% 35% 444 CAM Utilities-Waste Disposal $ 820 $ 483 $ (337) -41% 59% $ 5,740 $ 3,379 $ (2,361) -41% 59% 444 CAM Utilities-Water $ 400 $ 193 $ (207) -52% 48% $ 2,800 $ 1,127 $ (1,673) -60% 40% 444 CAM Utilities-Telephone $ 750 $ 621 $ (129) -17% 83% $ 5,250 $ 2,917 $ (2,333) -44% 56% Total Expenses $ 36,229 $ 48,063 $ 11,834 33% 133% $ 253,604 $ 152,841 $ (100,763) -40% 60% Operating Income $ 2,521 $ (29,854) $ (32,375) -1284% -1184% $ 17,646 $ (9,716) $ (27,362) -155% -55% Equipment Replacement Reserve $ - $ - $ - 0% 0% $ - $ - $ - 0% 0% Net Income $ 2,521 $ (29,854) $ (32,375) -1284% -1184% $ 17,646 $ (9,716) $ (27,362) -155.06% 281.62% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budet savings in other CAM line items.
Note: This schedule does not include rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-710 Fred Waring Drive- Two (2) Story Building
578
Parkview Office Complex
Statement of Activities
Month Ended January 31,2024
January-24 January-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues*
Rental $ 23,750 $ 36,984 $ 13,234 56% 156% $ 166,250 $ 221,565 $ 55,315 33% 133% Total Revenues $ 23,750 $ 36,984 $ 13,234 56% 156% $ 166,250 $ 221,565 $ 55,315 33% 133% Expenses**
Tenant Improvements $ 4,117 $ - $ (4,117) -100% 0% $ 28,817 $ - $ (28,817) -100% 0% Repairs & Maintenance- Building $ 950 $ 497 $ (453) -48% 52% $ 6,650 $ 3,340 $ (3,310) -50% 50% Repairs & Maintenance- Streets $ 633 $ - $ (633) -100% 0% $ 4,433 $ - $ (4,433) -100% 0% Repairs & Maintenance- Other Equip $ 633 $ - $ (633) -100% 0% $ 4,433 $ - $ (4,433) -100% 0% Utilities-Gas/Electric $ 5,894 $ 1,429 $ (4,465) -76% 24% $ 41,256 $ 17,968 $ (23,287) -56% 44% 555 CAM Janitorial Services $ 6,000 $ 17,954 $ 11,954 199% 299% $ 42,000 $ 41,893 $ (107) 0% 100% 555 CAM Landscaping Services $ 300 $ 600 $ 300 100% 200% $ 2,100 $ 2,100 $ - 0% 100% 555 CAM Alarm $ 315 $ 507 $ 192 61% 161% $ 2,205 $ 1,869 $ (336) -15% 85% 555 CAM Pest Control $ 171 $ 176 $ 6 3% 0% $ 1,194 $ 528 $ (666) -56% 44% 555 CAM Utilities-Waste Disposal $ 400 $ 351 $ (49) -12% 88% $ 2,800 $ 2,456 $ (344) -12% 88% 555 CAM Utilities-Water $ 400 $ 73 $ (327) -82% 18% $ 2,800 $ 428 $ (2,372) -85% 15% 555 CAM Utilities-Telephone $ 750 $ 56 $ (694) -93% 7% $ 5,250 $ 280 $ (4,970) -95% 5% Total Expenses $ 20,563 $ 21,642 $ 1,080 5% 105% $ 143,938 $ 70,862 $ (73,075) -51% 49% Operating Income $ 3,188 $ 15,342 $ 12,154 381% 481% $ 22,313 $ 150,703 $ 128,390 575% 675% Equipment Replacement Reserve $ - $ - $ - 0% 0% $ - $ - $ - 0% 0% Net Income $ 3,188 $ 15,342 $ 12,154 381% 126% $ 22,313 $ 150,703 $ 128,390 575% 675% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budet savings in other CAM line items.
Note: This schedule does not include rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-720 Fred Waring Drive- One (1) Story Building
579
Parkview Office Complex
Statement of Activities
Month Ended February 29,2024
February-24 February-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget 73-710 Fred Waring Dr. - Two (2) Story Building $ 2,521 $ 6,235 $ 3,714 147.33% 247.33% $ 20,167 $ (3,481) $ (23,648) -117% -17% 73-720 Fred Waring Dr. - One (1) Story Building $ 3,188 $ 31,510 $ 28,323 888.56% 988.56% $ 25,500 $ 182,213 $ 156,713 615% 715% Combined Summary of Net Income $ 5,708 $ 37,745 $ 32,037 561.23% 661.23% $ 45,667 $ 178,732 $ 133,065 291.38% 391.38% Summary of Net Income
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Budget Actual
February Net Income
73-720 Fred Waring Dr. - One (1)
Story Building
73-710 Fred Waring Dr. - Two (2)
Story Building
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
Budget Actual
YTD Net Income
580
Parkview Office Complex
Statement of Activities
Month Ended February 29,2024
February-24 February-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues*
Rental $ 38,750 $ 23,130 $ (15,620) -40% 60% $ 310,000 $ 166,255 $ (143,745) -46% 54% Total Revenues $ 38,750 $ 23,130 $ (15,620) -40% 60% $ 310,000 $ 166,255 $ (143,745) -46% 54% Expenses**
Tenant Improvements $ 6,717 $ - $ (6,717) -100% 0% $ 53,733 $ - $ (53,733) -100% 0% Repairs & Maintenance- Building $ 1,550 $ 8,177 $ 6,627 428% 528% $ 12,400 $ 21,847 $ 9,447 76% 176% Repairs & Maintenance- Streets $ 1,033 $ 188 $ (845) -82% 18% $ 8,267 $ 1,128 $ (7,139) -86% 14% Repairs & Maintenance- Other Equip $ 1,033 $ - $ (1,033) -100% 0% $ 8,267 $ - $ (8,267) -100% 0% Utilities-Gas/Electric $ 7,059 $ 6,530 $ (529) -7% 93% $ 56,469 $ 50,058 $ (6,411) -11% 89% 444 CAM Janitorial Services $ 13,740 $ 150 $ (13,590) -99% 1% $ 109,920 $ 71,721 $ (38,199) -35% 65% 444 CAM Landscaping Services $ 2,642 $ - $ (2,642) -100% 0% $ 21,133 $ 14,000 $ (7,133) -34% 66% 444 CAM Alarm $ 315 $ - $ (315) -100% 0% $ 2,520 $ 1,296 $ (1,224) -49% 51% 444CAM Pest Control $ 171 $ 83 $ (88) -52% 0% $ 1,364 $ 495 $ (869) -64% 36% 444 CAM Utilities-Waste Disposal $ 820 $ 483 $ (337) -41% 59% $ 6,560 $ 3,862 $ (2,698) -41% 59% 444 CAM Utilities-Water $ 400 $ 184 $ (216) -54% 46% $ 3,200 $ 1,310 $ (1,890) -59% 41% 444 CAM Utilities-Telephone $ 750 $ 1,101 $ 351 47% 147% $ 6,000 $ 4,018 $ (1,982) -33% 67% Total Expenses $ 36,229 $ 16,895 $ (19,334) -53% 47% $ 289,833 $ 169,736 $ (120,098) -41% 59% Operating Income $ 2,521 $ 6,235 $ 3,714 147% 247% $ 20,167 $ (3,481) $ (23,648) -117% -17% Equipment Replacement Reserve $ - $ - $ - 0% 0% $ - $ - $ - 0% 0% Net Income $ 2,521 $ 6,235 $ 3,714 147% 247% $ 20,167 $ (3,481) $ (23,648) -117.26% 679.32% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budet savings in other CAM line items.
Note: This schedule does not include rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-710 Fred Waring Drive- Two (2) Story Building
581
Parkview Office Complex
Statement of Activities
Month Ended February 29,2024
February-24 February-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues*
Rental $ 23,750 $ 36,984 $ 13,234 56% 156% $ 190,000 $ 258,549 $ 68,549 36% 136% Total Revenues $ 23,750 $ 36,984 $ 13,234 56% 156% $ 190,000 $ 258,549 $ 68,549 36% 136% Expenses**
Tenant Improvements $ 4,117 $ - $ (4,117) -100% 0% $ 32,933 $ - $ (32,933) -100% 0% Repairs & Maintenance- Building $ 950 $ 2,230 $ 1,280 135% 235% $ 7,600 $ 5,570 $ (2,030) -27% 73% Repairs & Maintenance- Streets $ 633 $ - $ (633) -100% 0% $ 5,067 $ - $ (5,067) -100% 0% Repairs & Maintenance- Other Equip $ 633 $ - $ (633) -100% 0% $ 5,067 $ - $ (5,067) -100% 0% Utilities-Gas/Electric $ 5,894 $ 2,241 $ (3,653) -62% 38% $ 47,149 $ 20,209 $ (26,940) -57% 43% 555 CAM Janitorial Services $ 6,000 $ 226 $ (5,774) -96% 4% $ 48,000 $ 42,119 $ (5,881) -12% 88% 555 CAM Landscaping Services $ 300 $ - $ (300) -100% 0% $ 2,400 $ 2,100 $ (300) -13% 88% 555 CAM Alarm $ 315 $ 154 $ (161) -51% 49% $ 2,520 $ 2,023 $ (497) -20% 80% 555 CAM Pest Control $ 171 $ 88 $ (83) -48% 0% $ 1,364 $ 616 $ (748) -55% 45% 555 CAM Utilities-Waste Disposal $ 400 $ 351 $ (49) -12% 88% $ 3,200 $ 2,807 $ (393) -12% 88% 555 CAM Utilities-Water $ 400 $ 72 $ (328) -82% 18% $ 3,200 $ 499 $ (2,701) -84% 16% 555 CAM Utilities-Telephone $ 750 $ 112 $ (638) -85% 15% $ 6,000 $ 392 $ (5,608) -93% 7% Total Expenses $ 20,563 $ 5,474 $ (15,089) -73% 27% $ 164,500 $ 76,336 $ (88,164) -54% 46% Operating Income $ 3,188 $ 31,510 $ 28,323 889% 989% $ 25,500 $ 182,213 $ 156,713 615% 715% Equipment Replacement Reserve $ - $ - $ - 0% 0% $ - $ - $ - 0% 0% Net Income $ 3,188 $ 31,510 $ 28,323 889% 111% $ 25,500 $ 182,213 $ 156,713 615% 715% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budet savings in other CAM line items.
Note: This schedule does not include rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-720 Fred Waring Drive- One (1) Story Building
582
Parkview Office Complex
Statement of Activities
Month Ended March 31,2024
March-24 March-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget 73-710 Fred Waring Dr. - Two (2) Story Building $ (10,713) $ (1,852) $ 8,861 -82.71% 17.29% $ (96,419) $ (5,333) $ 91,085 -94% 6% 73-720 Fred Waring Dr. - One (1) Story Building $ 16,422 $ 26,422 $ 10,001 60.90% 160.90% $ 147,794 $ 208,635 $ 60,842 41% 141% Combined Summary of Net Income $ 5,708 $ 24,570 $ 18,862 330.42% 430.42% $ 51,375 $ 203,302 $ 151,927 295.72% 395.72% Summary of Net Income
$(15,000)
$(10,000)
$(5,000)
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Budget Actual
March Net Income
73-720 Fred Waring Dr. - One (1)
Story Building
73-710 Fred Waring Dr. - Two (2)
Story Building
$(150,000)
$(100,000)
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Budget Actual
YTD Net Income
583
Parkview Office Complex
Statement of Activities
Month Ended March 31,2024
March-24 March-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues*
Rental $ 25,516 $ 19,591 $ (5,925) -23% 77% $ 229,644 $ 185,845 $ (43,799) -19% 81% Total Revenues $ 25,516 $ 19,591 $ (5,925) -23% 77% $ 229,644 $ 185,845 $ (43,799) -19% 81% Expenses**
Tenant Improvements [1] $ 6,717 $ - $ (6,717) -100% 0% $ 60,450 $ - $ (60,450) -100% 0% Repairs & Maintenance- Building [4] $ 1,550 $ 3,244 $ 1,694 109% 209% $ 13,950 $ 25,091 $ 11,141 80% 180% Repairs & Maintenance- Streets [3] $ 1,033 $ 188 $ (845) -82% 18% $ 9,300 $ 1,316 $ (7,984) -86% 14% Repairs & Maintenance- Other Equip [3] $ 1,033 $ 30 $ (1,003) -97% 3% $ 9,300 $ 30 $ (9,270) -100% 0% Utilities-Gas/Electric $ 7,059 $ 4,527 $ (2,532) -36% 64% $ 63,528 $ 54,585 $ (8,943) -14% 86% 444 CAM Janitorial Services $ 13,740 $ 10,476 $ (3,264) -24% 76% $ 123,660 $ 82,197 $ (41,463) -34% 66% 444 CAM Landscaping Services $ 2,642 $ 2,000 $ (642) -24% 76% $ 23,775 $ 16,000 $ (7,775) -33% 67% 444 CAM Alarm [2] $ 315 $ - $ (315) -100% 0% $ 2,835 $ 1,296 $ (1,539) -54% 46% 444CAM Pest Control $ 171 $ 165 $ (6) -3% 0% $ 1,535 $ 660 $ (875) -57% 43% 444 CAM Utilities-Waste Disposal $ 820 $ 483 $ (337) -41% 59% $ 7,380 $ 4,345 $ (3,035) -41% 59% 444 CAM Utilities-Water $ 400 $ 187 $ (213) -53% 47% $ 3,600 $ 1,498 $ (2,102) -58% 42% 444 CAM Utilities-Telephone $ 750 $ 143 $ (607) -81% 19% $ 6,750 $ 4,161 $ (2,589) -38% 62% Total Expenses $ 36,229 $ 21,443 $ (14,786) -41% 59% $ 326,063 $ 191,179 $ (134,884) -41% 59% Operating Income $ (10,713) $ (1,852) $ 8,861 -83% 17% $ (96,419) $ (5,333) $ 91,085 -94% 6% Equipment Replacement Reserve $ - $ - $ - 0% 0% $ - $ - $ - 0% 0% Net Income $ (10,713) $ (1,852) $ 8,861 -83% 17% $ (96,419) $ (5,333) $ 91,085 -94.47% -1707.81% [1] Tenant Improvements are negotiated as part of the lease agreement - there have been no tenant improvements to date. [2] Timing Variance - utility bills paid as received by Public Works [3] R&M work is performed on an as-needed basis
[4] Overage is offset by budget savings in R&M Streets and Other Equip *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings in other CAM line items.
Note: This schedule does not include budget or rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-710 Fred Waring Drive- Two (2) Story Building
584
Parkview Office Complex
Statement of Activities
Month Ended March 31,2024
March-24 March-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues*
Rental $ 36,984 $ 36,984 $ (0) 0% 100% $ 332,856 $ 295,533 $ (37,323) -11% 89% Total Revenues $ 36,984 $ 36,984 $ (0) 0% 100% $ 332,856 $ 295,533 $ (37,323) -11% 89% Expenses**
Tenant Improvements [1] $ 4,117 $ - $ (4,117) -100% 0% $ 37,050 $ - $ (37,050) -100% 0% Repairs & Maintenance- Building $ 950 $ 1,719 $ 769 81% 181% $ 8,550 $ 7,289 $ (1,261) -15% 85% Repairs & Maintenance- Streets[3] $ 633 $ - $ (633) -100% 0% $ 5,700 $ - $ (5,700) -100% 0% Repairs & Maintenance- Other Equip [3] $ 633 $ - $ (633) -100% 0% $ 5,700 $ - $ (5,700) -100% 0% Utilities-Gas/Electric [2] $ 5,894 $ 1,354 $ (4,540) -77% 23% $ 53,043 $ 21,563 $ (31,480) -59% 41% 555 CAM Janitorial Services $ 6,000 $ 5,985 $ (15) 0% 100% $ 54,000 $ 48,104 $ (5,896) -11% 89% 555 CAM Landscaping Services $ 300 $ 300 $ - 0% 100% $ 2,700 $ 2,400 $ (300) -11% 89% 555 CAM Alarm $ 315 $ 606 $ 291 92% 192% $ 2,835 $ 2,629 $ (206) -7% 93% 555 CAM Pest Control $ 171 $ 176 $ 6 3% 0% $ 1,535 $ 792 $ (743) -48% 52% 555 CAM Utilities-Waste Disposal $ 400 $ 351 $ (49) -12% 88% $ 3,600 $ 3,158 $ (442) -12% 88% 555 CAM Utilities-Water $ 400 $ 72 $ (328) -82% 18% $ 3,600 $ 571 $ (3,029) -84% 16% 555 CAM Utilities-Telephone [2] $ 750 $ - $ (750) -100% 0% $ 6,750 $ 392 $ (6,358) -94% 6% Total Expenses $ 20,563 $ 10,562 $ (10,001) -49% 51% $ 185,063 $ 86,898 $ (98,165) -53% 47% Operating Income $ 16,422 $ 26,422 $ 10,001 61% 161% $ 147,794 $ 208,635 $ 60,842 41% 141% Equipment Replacement Reserve $ - $ - $ - 0% 0% $ - $ - $ - 0% 0% Net Income $ 16,422 $ 26,422 $ 10,001 61% 264% $ 147,794 $ 208,635 $ 60,842 41% 141% [1] Tenant Improvements are negotiated as part of the lease agreement - there have been no tenant improvements to date. [2] Timing Variance - utility bills paid as received by Public Works. [3] R&M work is performed on an as-needed basis.
*Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings in other CAM line items.
Note: This schedule does not include budget or rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-720 Fred Waring Drive- One (1) Story Building
585
Parkview Office Complex
Statement of Activities
Month Ended April 30,2024
April-24 April-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget 73-710 Fred Waring Dr. - Two (2) Story Building $ (10,713) $ 9,519 $ 20,232 -188.85% -88.85% $ (107,132) $ 4,185 $ 111,317 -104% -4% 73-720 Fred Waring Dr. - One (1) Story Building $ 16,422 $ 28,742 $ 12,320 75.02% 175.02% $ 164,215 $ 237,377 $ 73,162 45% 145% Combined Summary of Net Income $ 5,708 $ 38,260 $ 32,552 570.25% 670.25% $ 57,083 $ 241,562 $ 184,479 323.17% 423.17% Summary of Net Income
$(20,000)
$(10,000)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
Budget Actual
April Net Income
73-720 Fred Waring Dr. - One (1)
Story Building
73-710 Fred Waring Dr. - Two (2)
Story Building
$(150,000)
$(100,000)
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Budget Actual
YTD Net Income
586
Parkview Office Complex
Statement of Activities
Month Ended April 30,2024
April-24 April-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues*
Rental $ 25,516 $ 26,320 $ 804 3% 103% $ 255,160 $ 212,165 $ (42,995) -17% 83% Total Revenues $ 25,516 $ 26,320 $ 804 3% 103% $ 255,160 $ 212,165 $ (42,995) -17% 83% Expenses**
Tenant Improvements [1] $ 6,717 $ - $ (6,717) -100% 0% $ 67,167 $ - $ (67,167) -100% 0% Repairs & Maintenance- Building [4] $ 1,550 $ 3,087 $ 1,537 99% 199% $ 15,500 $ 28,178 $ 12,678 82% 182% Repairs & Maintenance- Streets [5] $ 1,033 $ 376 $ (657) -64% 36% $ 10,333 $ 1,692 $ (8,641) -84% 16% Repairs & Maintenance- Other Equip [5] $ 1,033 $ - $ (1,033) -100% 0% $ 10,333 $ 30 $ (10,303) -100% 0% Utilities-Gas/Electric [2][3] $ 7,059 $ (3,409) $ (10,468) -148% -48% $ 70,587 $ 51,176 $ (19,411) -27% 73% 444 CAM Janitorial Services $ 13,740 $ 13,008 $ (732) -5% 95% $ 137,400 $ 95,205 $ (42,195) -31% 69% 444 CAM Landscaping Services $ 2,642 $ 2,000 $ (642) -24% 76% $ 26,417 $ 18,000 $ (8,417) -32% 68% 444 CAM Alarm $ 315 $ 432 $ 117 37% 137% $ 3,150 $ 1,728 $ (1,422) -45% 55% 444CAM Pest Control [3] $ 171 $ - $ (171) -100% 0% $ 1,705 $ 660 $ (1,045) -61% 39% 444 CAM Utilities-Waste Disposal $ 820 $ 483 $ (337) -41% 59% $ 8,200 $ 4,828 $ (3,373) -41% 59% 444 CAM Utilities-Water $ 400 $ 201 $ (199) -50% 50% $ 4,000 $ 1,698 $ (2,302) -58% 42% 444 CAM Utilities-Telephone $ 750 $ 624 $ (126) -17% 83% $ 7,500 $ 4,785 $ (2,715) -36% 64% Total Expenses $ 36,229 $ 16,801 $ (19,428) -54% 46% $ 362,292 $ 207,980 $ (154,312) -43% 57% Operating Income $ (10,713) $ 9,519 $ 20,232 -189% -89% $ (107,132) $ 4,185 $ 111,317 -104% -4% Equipment Replacement Reserve $ - $ - $ - 0% 0% $ - $ - $ - 0% 0% Net Income $ (10,713) $ 9,519 $ 20,232 -189% -89% $ (107,132) $ 4,185 $ 111,317 -103.91% 2659.79% [1] Tenant Improvements are negotiated as part of the lease agreement - there have been no tenant improvements to date. [2] Tenant Reimbursed 70% of Edison bills for two suites from Sept 2023- Jan2024. [3] Timing Variance - utility bills paid as received by Public Works [4] Overage is offset by budget savings in R&M Streets and Other Equip [5] R&M work is performed on an as-needed basis
*Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings in other CAM line items.
Note: This schedule does not include budget or rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-710 Fred Waring Drive- Two (2) Story Building
587
Parkview Office Complex
Statement of Activities
Month Ended April 30,2024
April-24 April-24 $ % % YTD YTD $ % %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues*
Rental $ 36,984 $ 36,984 $ (0) 0% 100% $ 369,840 $ 332,517 $ (37,323) -10% 90% Total Revenues $ 36,984 $ 36,984 $ (0) 0% 100% $ 369,840 $ 332,517 $ (37,323) -10% 90% Expenses**
Tenant Improvements [1] $ 4,117 $ - $ (4,117) -100% 0% $ 41,167 $ - $ (41,167) -100% 0% Repairs & Maintenance- Building $ 950 $ 1,334 $ 384 40% 140% $ 9,500 $ 8,622 $ (878) -9% 91% Repairs & Maintenance- Streets [2] $ 633 $ - $ (633) -100% 0% $ 6,333 $ - $ (6,333) -100% 0% Repairs & Maintenance- Other Equip [2] $ 633 $ - $ (633) -100% 0% $ 6,333 $ - $ (6,333) -100% 0% Utilities-Gas/Electric [3] $ 5,894 $ - $ (5,894) -100% 0% $ 58,937 $ 21,563 $ (37,374) -63% 37% 555 CAM Janitorial Services $ 6,000 $ 5,985 $ (15) 0% 100% $ 60,000 $ 54,089 $ (5,911) -10% 90% 555 CAM Landscaping Services $ 300 $ 300 $ - 0% 100% $ 3,000 $ 2,700 $ (300) -10% 90% 555 CAM Alarm $ 315 $ 144 $ (171) -54% 46% $ 3,150 $ 2,773 $ (377) -12% 88% 555 CAM Pest Control [3] $ 171 $ - $ (171) -100% 0% $ 1,705 $ 792 $ (913) -54% 46% 555 CAM Utilities-Waste Disposal $ 400 $ 351 $ (49) -12% 88% $ 4,000 $ 3,509 $ (491) -12% 88% 555 CAM Utilities-Water $ 400 $ 73 $ (327) -82% 18% $ 4,000 $ 644 $ (3,356) -84% 16% 555 CAM Utilities-Telephone $ 750 $ 56 $ (694) -93% 7% $ 7,500 $ 448 $ (7,052) -94% 6% Total Expenses $ 20,563 $ 8,242 $ (12,320) -60% 40% $ 205,625 $ 95,140 $ (110,485) -54% 46% Operating Income $ 16,422 $ 28,742 $ 12,320 75% 175% $ 164,215 $ 237,377 $ 73,162 45% 145% Equipment Replacement Reserve $ - $ - $ - 0% 0% $ - $ - $ - 0% 0% Net Income $ 16,422 $ 28,742 $ 12,320 75% 233% $ 164,215 $ 237,377 $ 73,162 45% 145% [1] Tenant Improvements are negotiated as part of the lease agreement - there have been no tenant improvements to date. [2] R&M work is performed on an as-needed basis
[3] Timing Variance - utility bills paid as received by Public Works *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings in other CAM line items.
Note: This schedule does not include budget or rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-720 Fred Waring Drive- One (1) Story Building
588
City of Palm Desert
Parkview Office Complex
Vacancy Rate Schedule by Suite
February 29,2024
Rentable Square Feet: 51,464
Square Feet Occupied: 34,027
% Occupied: 66%
% Vacant: 34%
Suite No. Tenant Square Ft.
10-101 Medium Conference Room -
10-104 Large Conference Room -
10-110 Advantec 1,250
10-113 Lift to Rise 720
10-117 Lift to Rise 1,227
10-120 State of California 1,000
10-123 Lift to Rise 758
10-126 ACT for Multiple Sclerosis 928
10-129 Congressman Ken Calvert 41st District 875
10-132 Anser Advisory 1,345
10-135 Desert Recreation District 2,560
10-138 Golden Construction 488
10-141 Small Conference Room -
10-201 State of California 890
10-212 State of California 1,117
10-220 Lift to Rise 1,240
Total Occupied Suites 14,398 sq/ft 45%
Suite No. Tenant Square Ft.
10-107 Vacant 1,750
10-205 Vacant 5,730
10-209 Vacant 3,040
10-215 Vacant 5,833
10-219 Vacant 1,084
Total Vacant Suites 17,437 sq/ft 55%
20-100 State of California 15,233
20-102 State of California 4,396
Total Occupied Suites 19,629 sq/ft 100%
Combined Vacancy Rate Summary
Occupied Suites
73-710 Fred Waring Drive- Two (2) Story Building
Occupied Suites
Vacant Suites
73-720 Fred Waring Drive- One (1) Story Building
589
City of Palm Desert
Parkview Office Complex
Vacancy Rate Schedule by Suite
April 30,2024
Rentable Square Feet: 51,464
Square Feet Occupied: 34,027
% Occupied: 66%
% Vacant: 34%
Suite No. Tenant Square Ft.
10-101 Medium Conference Room -
10-104 Large Conference Room -
10-110 Advantec 1,250
10-113 Lift to Rise 720
10-117 Lift to Rise 1,227
10-120 State of California 1,000
10-123 Lift to Rise 758
10-126 ACT for Multiple Sclerosis 928
10-129 Congressman Ken Calvert 41st District 875
10-132 Anser Advisory 1,345
10-135 Desert Recreation District 2,560
10-138 Golden Construction 488
10-141 Small Conference Room -
10-201 State of California 890
10-212 State of California 1,117
10-220 Lift to Rise 1,240
Total Occupied Suites 14,398 sq/ft 45%
Suite No. Tenant Square Ft.
10-107 Vacant 1,750
10-205 Vacant 5,730
10-209 Vacant 3,040
10-215 Vacant 5,833
10-219 Vacant 1,084
Total Vacant Suites 17,437 sq/ft 55%
20-100 State of California 15,233
20-102 State of California 4,396
Total Occupied Suites 19,629 sq/ft 100%
Combined Vacancy Rate Summary
Occupied Suites
73-710 Fred Waring Drive- Two (2) Story Building
Occupied Suites
Vacant Suites
73-720 Fred Waring Drive- One (1) Story Building
590
591
592
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616
617
618
619
620
621
622
623
624
625
626
627
628
629
630
631
632
633
634
635
636
637
638
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: June 13, 2024
PREPARED BY: Liberty Urban, Deputy Director of Finance
REQUEST: RECEIVE AND FILE THE PALM DESERT RECREATIONAL FACILITIES
CORPORATION ANNUAL FINANCIAL REPORT FOR FISCAL YEAR
ENDED JUNE 30, 2023
RECOMMENDATION:
Receive and file the Palm Desert Recreational Facilities Corporation (PDRFC) Annual Financial Report for fiscal year ended June 30, 2023.
BACKGROUND/ANALYSIS:
Lance, Soll & Lunghard, LLP performed and completed the annual independent audit for the fiscal year ended June 30, 2023. In the auditor’s opinion, the basic financial statements present fairly, in all material respects, the financial position of the Palm Desert Recreational Facilities Corporation (PDRFC) as of June 30, 2023, and the results of its operations of the year then ended, are in accordance with accounting principles generally accepted in the United States of America. In conducting the audit, the auditors are also required to test the PDRFC’s internal controls. Attached is the annual financial report, accompanied by the report issued by the auditors for the year ended June 30, 2023.
PDRFC represents the food and beverage operations at the Desert Willow Golf Resort Clubhouse. During Fiscal Year 2022-23, the PDRFC total net deficit increased by $82,882 from $980,429 to $1,063,311. This ongoing structural deficit is the result of the annual assessment of rent due to the golf course to keep the two operations distinct. It is primarily an accounting requirement that is functionally/historically supported by the available balance in the Desert Willow Golf Resort fund. Should the City Council wish to address the deficit with formal action, additional options will be provided by staff and included in a future report.
Appointed Body Recommendation:
This report was reviewed by the PDRFC Board of Directors at its annual meeting on June 10, 2024.
FINANCIAL IMPACT:
There is no financial impact associated with this action.
ATTACHMENTS:
1. Palm Desert Recreational Facilities Corporation Annual Financial Report for Fiscal Year ended June 30, 2023.
639
640
3$/0'(6(575(&5($7,21$/)$&,/,7,(6
&25325$7,21
),6&$/<($5(1'('-81(
$118$/),1$1&,$/5(3257
:,7+5(325721$8',7%<,1'(3(1'(17
&(57,),('358%/,&$&&2817$176
641
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
$QQXDO)LQDQFLDO5HSRUWZLWK5HSRUWRQ$XGLW
%\,QGHSHQGHQW&HUWLILHG3XEOLF$FFRXQWDQWV
)RUWKH<HDU(QGHG-XQH
642
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
$QQXDO)LQDQFLDO5HSRUWZLWK5HSRUWRQ$XGLW
%\,QGHSHQGHQW&HUWLILHG3XEOLF$FFRXQWDQWV
)RUWKH<HDU(QGHG-XQH
7DEOHRI&RQWHQWV
3DJH
1XPEHU
,QGHSHQGHQW$XGLWRUV¶5HSRUW 0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV %DVLF)LQDQFLDO6WDWHPHQWV
6WDWHPHQWRI1HW3RVLWLRQ
6WDWHPHQWRI5HYHQXHV([SHQVHVDQG&KDQJHVLQ1HW3RVLWLRQ 6WDWHPHQWRI&DVK)ORZV 1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV ,QGHSHQGHQW$XGLWRUV¶5HSRUWRQ,QWHUQDO&RQWURORYHU)LQDQFLDO5HSRUWLQJDQG&RPSOLDQFHDQG2WKHU 0DWWHUV%DVHGRQDQ$XGLWRI)LQDQFLDO6WDWHPHQWV3HUIRUPHGLQ$FFRUGDQFHZLWK Government Auditing Standards 643
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
,1'(3(1'(17$8',7256¶5(3257
7RWKH%RDUGRI'LUHFWRUV
3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ
&LW\RI3DOP'HVHUW&DOLIRUQLD
5HSRUWRQWKH)LQDQFLDO6WDWHPHQWV
Opinions
:HKDYHDXGLWHGWKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVRIWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ
WKH &RUSRUDWLRQ
D FRPSRQHQW XQLW RI WKH &LW\ RI 3DOP 'HVHUW &DOLIRUQLD DV RI DQG IRU WKH \HDU HQGHG -XQHDQGWKHUHODWHGQRWHVWRWKHILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\FRPSULVHWKH&RUSRUDWLRQ¶VEDVLF ILQDQFLDOVWDWHPHQWVDVOLVWHGLQWKHWDEOHRIFRQWHQWV ,Q RXU RSLQLRQWKHILQDQFLDO VWDWHPHQWV UHIHUUHGWR DERYH SUHVHQWIDLUO\ LQ DOOPDWHULDO UHVSHFWVWKH UHVSHFWLYH ILQDQFLDOSRVLWLRQRIWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ WKH&RUSRUDWLRQ
DFRPSRQHQWXQLWRIWKH
&LW\RI3DOP&DOLIRUQLDDVRI-XQHDQGWKHUHVSHFWLYHFKDQJHVLQILQDQFLDOSRVLWLRQDQGZKHUHDSSOLFDEOH FDVKIORZVWKHUHRIIRUWKH \HDUWKHQ HQGHG LQ DFFRUGDQFH ZLWK DFFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQWKH 8QLWHG6WDWHVRI$PHULFD
Basis for Opinions
:H FRQGXFWHG RXU DXGLW LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI$PHULFD
*$$6
DQGWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXGLWVFRQWDLQHGLQGovernment Auditing Standards LVVXHG E\WKH &RPSWUROOHU *HQHUDO RIWKH 8QLWHG6WDWHV 2XU UHVSRQVLELOLWLHV XQGHUWKRVH VWDQGDUGV DUHIXUWKHU GHVFULEHGLQWKH$XGLWRU¶V5HVSRQVLELOLWLHVIRUWKH$XGLWRIWKH)LQDQFLDO6WDWHPHQWVVHFWLRQRIRXUUHSRUW:HDUH UHTXLUHGWREHLQGHSHQGHQWRIWKH&RUSRUDWLRQDQGWRPHHWRXURWKHUHWKLFDOUHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKH UHOHYDQWHWKLFDOUHTXLUHPHQWVUHODWLQJWRRXUDXGLWV:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQW DQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQ Component Unit Reporting
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esponsibilities of Management for the Financial Statements 0DQDJHPHQWLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQRIWKHVHILQDQFLDOVWDWHPHQWVLQDFFRUGDQFH ZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD DQGIRUWKHGHVLJQLPSOHPHQWDWLRQ
DQGPDLQWHQDQFHRILQWHUQDOFRQWUROUHOHYDQWWRWKHSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQRIILQDQFLDOVWDWHPHQWVWKDWDUH IUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU 644
7RWKH%RDUGRI'LUHFWRUV
3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ
&LW\RI3DOP'HVHUW&DOLIRUQLD
,QSUHSDULQJWKHILQDQFLDOVWDWHPHQWVPDQDJHPHQWLVUHTXLUHGWRHYDOXDWHZKHWKHUWKHUHDUHFRQGLWLRQVRUHYHQWV FRQVLGHUHG LQWKH DJJUHJDWHWKDW UDLVH VXEVWDQWLDO GRXEW DERXWWKH&RUSRUDWLRQ¶V DELOLW\WR FRQWLQXH DV D JRLQJ FRQFHUQIRUWZHOYHPRQWKVEH\RQGWKHGDWHRIWKHILQDQFLDOVWDWHPHQWV Auditor’s Responsibilities for the Audit of the Financial Statements 2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDVDZKROHDUHIUHHIURP PDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLVVXHDQDXGLWRU¶V UHSRUWWKDWLQFOXGHVRXURSLQLRQ 5HDVRQDEOHDVVXUDQFHLVDKLJKOHYHORIDVVXUDQFHEXWLVQRWDEVROXWHDVVXUDQFHDQGWKHUHIRUHLVQRWDJXDUDQWHH WKDWDQDXGLWFRQGXFWHGLQDFFRUGDQFHZLWKWKH*$$6DQGGovernment Auditing StandardsZLOODOZD\VGHWHFWD PDWHULDOPLVVWDWHPHQWZKHQLWH[LVWV7KHULVNRIQRWGHWHFWLQJDPDWHULDOPLVVWDWHPHQWUHVXOWLQJIURPIUDXGLVKLJKHU WKDQIRURQHUHVXOWLQJIURPHUURUDVIUDXGPD\LQYROYHFROOXVLRQIRUJHU\LQWHQWLRQDORPLVVLRQVPLVUHSUHVHQWDWLRQV RUWKHRYHUULGHRILQWHUQDOFRQWURO0LVVWDWHPHQWVDUHFRQVLGHUHGPDWHULDOLILQGLYLGXDOO\RULQWKHDJJUHJDWHWKH\ FRXOGUHDVRQDEO\EHH[SHFWHGWRLQIOXHQFHWKHHFRQRPLFGHFLVLRQVRIXVHUVPDGHRQWKHEDVLVRIWKHVHILQDQFLDO VWDWHPHQWV
,QSHUIRUPLQJDQDXGLWLQDFFRUGDQFHZLWK*$$6DQGGovernment Auditing Standards,ZH
x ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSWLFLVPWKURXJKRXWWKHDXGLW x ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHILQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRU HUURU DQG GHVLJQ DQG SHUIRUP DXGLW SURFHGXUHV UHVSRQVLEOH WR WKRVH ULVNV 6XFK SURFHGXUHV LQFOXGH H[DPLQLQJRQDWHVWEDVLVHYLGHQFHUHJDUGLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDOVWDWHPHQWV x 2EWDLQDQXQGHUVWDQGLQJRILQWHUQDOFRQWUROUHOHYDQWWRWKHDXGLWLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUH DSSURSULDWHWLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRI WKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURO$FFRUGLQJQRVXFKRSLQLRQLVH[SUHVVHG x (YDOXDWHWKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGWKHUHDVRQDEOHQHVVRIVLJQLILFDQWDFFRXQWLQJ HVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWHWKHRYHUDOOSUHVHQWDWLRQRIWKHILQDQFLDOVWDWHPHQWV x &RQFOXGHZKHWKHULQRXUMXGJPHQWWKHUHDUHFRQGLWLRQVRUHYHQWVFRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVH VXEVWDQWLDOGRXEWDERXWWKH&RUSRUDWLRQ¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRUDUHDVRQDEOHSHULRGRI WLPH
:HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKHSODQQHG VFRSHDQGWLPLQJRIWKHDXGLWVLJQLILFDQWDXGLWILQGLQJVDQGFHUWDLQLQWHUQDOFRQWUROUHODWHGPDWWHUVWKDWZHLGHQWLILHG GXULQJWKHDXGLW
Other Reporting Responsibilities
Required Supplementary Information
$FFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDUHTXLUHWKDWWKHPDQDJHPHQW¶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¶VUHVSRQVHVWRRXULQTXLULHVWKHEDVLF ILQDQFLDOVWDWHPHQWVDQGRWKHUNQRZOHGJHZHREWDLQHGGXULQJRXUDXGLWRIWKHEDVLFILQDQFLDOVWDWHPHQWV:HGR QRWH[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFHRQWKHLQIRUPDWLRQEHFDXVHWKHOLPLWHGSURFHGXUHVGRQRWSURYLGH XVZLWKVXIILFLHQWHYLGHQFHWRH[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFH 2 645
7RWKH%RDUGRI'LUHFWRUV
3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ
&LW\RI3DOP'HVHUW&DOLIRUQLD
2WKHU5HSRUWLQJ5HTXLUHGE\Government Auditing Standards ,QDFFRUGDQFHZLWKGovernment Auditing StandardsZHKDYHDOVRLVVXHGRXUUHSRUWGDWHG)HEUXDU\RQ RXUFRQVLGHUDWLRQRIWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGRQRXUWHVWVRILWVFRPSOLDQFH ZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQWDJUHHPHQWVDQGRWKHUPDWWHUV7KHSXUSRVHRIWKDW UHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFHDQG WKHUHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURO RYHUILQDQFLDOUHSRUWLQJRURQFRPSOLDQFH7KDWUHSRUWLVDQLQWHJUDOSDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFHZLWK Government Auditing Standards LQ FRQVLGHULQJ WKH &RUSRUDWLRQ¶V LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ DQG FRPSOLDQFH
%UHD&DOLIRUQLD
)HEUXDU\
3 646
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
0$1$*(0(17¶6',6&866,21$1'$1$/<6,6
-XQH
2XUGLVFXVVLRQDQGDQDO\VLVRIWKHILQDQFLDOSHUIRUPDQFHRIWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ
WKH&RUSRUDWLRQ
DFRPSRQHQWXQLWRIWKH&LW\RI3DOP'HVHUWSURYLGHVDQRYHUYLHZRIWKH&RUSRUDWLRQ¶VILQDQFLDO DFWLYLWLHVIRUWKHILVFDO\HDUHQGHG-XQH3OHDVHUHDGLWLQFRQMXQFWLRQZLWKWKH3DOP'HVHUW5HFUHDWLRQDO )DFLOLWLHV&RUSRUDWLRQ¶VILQDQFLDOVWDWHPHQWV
),1$1&,$/+,*+/,*+76
x 3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ¶VQHWSRVLWLRQGHILFLWLQFUHDVHGE\IURP
WR
x 3DOP 'HVHUW 5HFUHDWLRQDO )DFLOLWLHV &RUSRUDWLRQ¶V JURVV VDOHV RI LQFUHDVHGE\
IURPWKHSUHYLRXV\HDU
x 3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ¶VJURVVSURILWLQFUHDVHGE\
IURPODVW\HDU7KH
JURVVSURILWPDUJLQ1LQFUHDVHGE\
x 3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ¶VFRVWRIJRRGVVROGLQFUHDVHGE\ IURP
WR
x 3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ¶VSelling and Administrative Expense Percentage2 LQFUHDVHG IURPWR
86,1*7+,6$118$/5(3257
7KLVDQQXDOUHSRUWFRQVLVWVRIDVHULHVRIILQDQFLDOVWDWHPHQWV 7KH6WDWHPHQWRI1HW3RVLWLRQDQG6WDWHPHQWRI 5HYHQXHV([SHQVHVDQG&KDQJHVLQ1HW3RVLWLRQ
RQSDJHVDQG
SURYLGHLQIRUPDWLRQDERXWWKHDFWLYLWLHVRI
WKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQDVDZKROHDQGSUHVHQWDORQJWHUPYLHZRIWKH&RUSRUDWLRQ¶V RSHUDWLRQV
7KH JURVV SURILW PDUJLQ LV FDOFXODWHG E\ GLYLGLQJ JURVV SURILW E\ JURVV VDOHV 7KH JURVV SURILW PDUJLQ LQGLFDWHV KRZ ZHOO VDOHV DUH SHUIRUPLQJ ZKHQ FRPSDUHG WR H[SHFWDWLRQV DQG WKH LQGXVWU\ 7KH FRUSRUDWLRQ H[SHFWHG DQ LQGXVWU\ JURVV SURILW PDUJLQ RI DSSUR[LPDWHO\
7KHVHOOLQJDQGDGPLQLVWUDWLYHH[SHQVHSHUFHQWDJHLVFDOFXODWHGE\GLYLGLQJWKHVXPRIWKH0DLQWHQDQFH 2SHUDWLRQVDQGWKH*HQHUDO $GPLQLVWUDWLYHFRVWV E\WKH JURVV VDOHV 7KLV SHUFHQWDJHLQGLFDWHV KRZ ZHOOWKH FRUSRUDWLRQ¶VRYHUKHDG LV PDLQWDLQHGLQ UHODWLRQWR VDOHV 7KHJRDOLVWRDUULYHDWRYHUKHDGFRVWRIDSSUR[LPDWHO\RUORZHU 4 647
5(3257,1*7+(&20321(1781,7$6$:+2/(
7KH 6WDWHPHQW RI 1HW 3RVLWLRQ DQG WKH 6WDWHPHQW RI 5HYHQXHV ([SHQVHV DQG &KDQJHV LQ 1HW3RVLWLRQ
2XUDQDO\VLVRIWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQDVDZKROHEHJLQVRQSDJH7KH&RUSRUDWLRQ SOD\V DQ LQGHSHQGHQW \HW YLWDO UROH LQ FRPSOHWLQJ WKH RYHUDOO SURMHFW NQRZQ DV 'HVHUW :LOORZ *ROI 5HVRUW
DPXQLFLSDOJROIFRXUVHRZQHGE\WKH&LW\RI3DOP'HVHUW 7KH&RUSRUDWLRQ¶VRQO\IXQFWLRQLVWRSURYLGHWKH
)RRGDQG%HYHUDJHRSHUDWLRQVDWWKH'HVHUW:LOORZ&OXEKRXVH7KHUHVWDXUDQWRSHUDWLRQZLWKLQWKHHQYLURQPHQW RIWKHJROILQGXVWU\LVDQHFHVVDU\FRPSOHPHQWWRDURXQGRIJROI7KHPDLQIRFXVRIRXUDQDO\VLVRIWKH3DOP'HVHUW 5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ¶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accrual basis of accounting. :LWKWKHDFFUXDOEDVLVRIDFFRXQWLQJ DOORIWKHFXUUHQW\HDU¶VUHYHQXHVDUHUHFRJQL]HGZKHQHDUQHGLQVWHDGRIUHFHLYHGDQGDOOH[SHQVHVDUHUHFRUGHG ZKHQLQFXUUHGLQVWHDGRIZKHQSDLG
7KHVHWZRVWDWHPHQWVUHSRUWWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ¶Vnet position DQGchanges in net position. 1HW SRVLWLRQ LV WKH GLIIHUHQFH EHWZHHQ DVVHWV DQG OLDELOLWLHV ZKLFK LV RQH ZD\ WR PHDVXUH WKH &RUSRUDWLRQ¶VILQDQFLDOKHDOWKRUfinancial position2YHUWLPHincreases or decreases LQWKH&RUSRUDWLRQ¶VQHW SRVLWLRQLVDQLQGLFDWLRQRIZKHWKHULWVfinancial health LVLPSURYLQJRUGHWHULRUDWLQJ7RGHWHUPLQHWKHSURILWDELOLW\ RI WKH &RUSRUDWLRQ FRQVLGHUDWLRQ VKRXOG DOVR EH JLYHQ WR RWKHU QRQILQDQFLDO IDFWRUV VXFK DV WKH FKDQJHV LQ FRQVXPHU VSHQGLQJ DV D GLUHFW UHVXOW RI WKH RYHUDOO HFRQRPLF LQGLFDWRUV DV ZHOO DV FKDQJHV LQWKH VLJQLILFDQW LQGXVWU\IDFWRUVVXFKDVSULFHSHUJROIURXQGDQGOHYHORIWRXULVP 7+(&20321(1781,7$6$:+2/(
7KH 3DOP 'HVHUW 5HFUHDWLRQDO )DFLOLWLHV &RUSRUDWLRQ¶V QHW SRVLWLRQ GHILFLW LQFUHDVHGE\ IURP
WR )RRGDQGEHYHUDJHRSHUDWLRQVKDYHUHVXPHGQRUPDODFWLYLWLHVVLQFHWKH&29,' VKXWGRZQV
DQGWKHUHFRYHU\RIEDQTXHWHYHQWVDQGRUJDQL]HGJURXSJDWKHULQJVKDYHEHHQVWURQJ:KLOHUHVWDXUDQWRSHUDWLRQV KDYH EHHQ KHDOWK\ WKH &RUSRUDWLRQ FRQWLQXHV WR H[SHULHQFH LQIODWLRQDU\ HFRQRPLF SUHVVXUHV DQG LQFUHDVHG PLQLPXPZDJHVXOWLPDWHO\UHVXOWLQJLQDQLQFUHDVHWRWKHQHWSRVLWLRQGHILFLWIRUILVFDO\HDUHQGHG-XQH 7KH UHVWDXUDQW RSHUDWLRQV UHFRJQL]HG D LQFUHDVH LQ JURVV UHYHQXHV DQG D QHW LQFUHDVH LQ RYHUDOO H[SHQGLWXUHVRILQGLFDWLQJWKDWH[SHQVHJURZWKRXWSDFHGUHYHQXHJURZWKE\DERXW GXULQJWKHILVFDO\HDU
2XUDQDO\VLVRQWKHQH[WSDJHIRFXVHVRQWKH1HW3RVLWLRQ 7DEOH
DQG&KDQJHVLQ1HW3RVLWLRQ
7DEOH
RIWKH
&RUSRUDWLRQ
5 648
7RWDODVVHWVLQFUHDVHGE\
SULPDULO\GXHWRLQFUHDVHGEDODQFHVRIFDVKDQGFDVKHTXLYDOHQWVRYHUWKH SULRU\HDU7RWDOOLDELOLWLHVLQFUHDVHGE\FRPSDUHGWRSULRU\HDUGULYHQE\LQFUHDVHVLQDGYDQFHVIURP UHODWHGSDUWLHVZKLFKZHUHSDUWLDOO\RIIVHWE\GHFUHDVHVLQXQHDUQHGUHYHQXHDQGLQOHDVHVSD\DEOH7KHGHFUHDVH LQOHDVHVSD\DEOHZDVUHODWHGWRWKHDQQXDOHQWU\IRUWKH&RUSRUDWLRQ¶VRQHOHDVHFXUUHQWO\VXEMHFWWR*$6% /HDVH UHSRUWLQJ UHTXLUHPHQWV1RWH WRWKHILQDQFLDO VWDWHPHQWV FRQWDLQV DGGLWLRQDO LQIRUPDWLRQ UHJDUGLQJWKLV OHDVH
$66(76
&XUUHQWDVVHWV
1RQFXUUHQWDVVHWV
727$/$66(76
/,$%,/,7,(6
&XUUHQWOLDELOLWLHV 1RQFXUUHQWOLDELOLWLHV
727$//,$%,/,7,(6
1(7326,7,21
'(),&,7
8QUHVWULFWHG
GHILFLW
727$/1(7326,7,21
'(),&,7
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
&21'(16('67$7(0(172)1(7326,7,21
-XQH
7DEOH
6 649
&RPSRQHQW$FWLYLWLHV
7RWDO UHYHQXH LQFUHDVHG E\
IURP
WR
GXULQJWKHILVFDO\HDU
7KLVILVFDO\HDUZDVWKHWZHQW\VHFRQG\HDURIRSHUDWLRQDWWKH'HVHUW:LOORZ&OXEKRXVH'XULQJWKLVILVFDO\HDU WKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQFRQWLQXHGWRPDUNHWWKHLUEDQTXHWVDQGRXWLQJVDJJUHVVLYHO\ LQWKHQDWLRQDOUHJLRQDODQGORFDOPDUNHWVDQGDGYHUWLVLQJFDPSDLJQWRPD[LPL]HUHYHQXHIRUILVFDO\HDUDQG EH\RQGIRFXVLQJRQ
x $WWUDFWLQJQHZDQGUHSHDWEXVLQHVV
x &RQWLQXHGSDWURQDJHRIFXVWRPHUVDQGFRUSRUDWHJURXSV x ,QFUHDVHGEDQTXHWDQGRXWLQJRSHUDWLRQV
x 0DUNHWLQJWRJROIHUVRQWKHJROIFRXUVH
$V7DEOHDERYHLQGLFDWHVWRWDORSHUDWLQJH[SHQVHVUHFRJQL]HGDQLQFUHDVHRIIURPWR
$VLJQLILFDQWFRPSRQHQWRIWKHLQFUHDVHZDVIURPLQFUHDVHGPDLQWHQDQFHDQGRSHUDWLRQVH[SHQVHV
SULPDULO\FDXVHGE\DQLQFUHDVHLQSD\UROOFRVWVLQWKHDPRXQWRI DORQJZLWKLQFUHDVHVLQVXSSO\H[SHQVHV
DQG HTXLSPHQW UHQWDO H[SHQVHV RI DQG UHVSHFWLYHO\ *HQHUDO $GPLQLVWUDWLYH H[SHQVHV LQFUHDVHGE\RYHUWKHSULRU\HDU7KHUHPDLQLQJLQFUHDVHVRSHUDWLQJH[SHQVHVZHUHFRPSRVHGRIYDULRXV
23(5$7,1*5(9(18(6
)RRGDQGEHYHUDJHVDOHV
727$/23(5$7,1*5(9(18(6
23(5$7,1*(;3(16(6
&RVWRIJRRGVVROG 0DLQWHQDQFHDQGRSHUDWLRQV *HQHUDODQGDGPLQLVWUDWLYH $PRUWL]DWLRQ 727$/23(5$7,1*(;3(16(6
23(5$7,1*,1&20(
12123(5$7,1*5(9(18(6
(;3(16(6
,QWHUHVWH[SHQVH
727$/12123(5$7,1*5(9(18(6
(;3(16(6
&+$1*(,11(7326,7,21
1(7326,7,21
'(),&,7
%(*,11,1*2)<($5
1(7326,7,21
'(),&,7
(1'2)<($5
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
&21'(16('67$7(0(172)5(9(18(6(;3(16(6
$1'&+$1*(6,11(7326,7,21
)RUWKH\HDUHQGHG-XQH
7DEOH
7 650
RWKHUH[SHQVHFDWHJRULHV$GGLWLRQDOO\&RVWRI*RRGV6ROGLQFUHDVHGE\ ZKLFKLVDWWULEXWDEOHWRULVLQJ
SULFHVGXHWRLQIODWLRQDQGLQFUHDVHVLQLQEDQTXHWVDQGRYHUDOOEXVLQHVVRSHUDWLRQV'XULQJWKHILVFDO \HDU PDQDJHPHQW FRQWLQXHG WR IRFXV RQ UHWDLQLQJ UHSHDW EXVLQHVV FRQWLQXHG SDWURQDJH DQG JURZLQJ WKH FRUSRUDWHDQGJURXSPDUNHWDVGHPDQGIRUJROIDQGDVVRFLDWHGUHFUHDWLRQDODFWLYLWLHVUHPDLQVVWURQJ 7KHGross Profit MarginLQFUHDVHGIURPWRODUJHO\GXHWRLQFUHDVHGEDQTXHWDQGRXWLQJVEXVLQHVV7KH Selling and Administrative Expense PercentageDOVRLQFUHDVHGGXULQJWKH\HDUIURPLQWRLQ &$3,7$/$66(76$1''(%7$'0,1,675$7,21&DSLWDO
$VVHWV'HEW$GPLQLVWUDWLRQ
7KH&RUSRUDWLRQ¶VRQO\FDSLWDODVVHWVDQGORQJWHUPOLDELOLWLHVUHODWHWRWKHOHDVHEHWZHHQWKH&RUSRUDWLRQDQGWKH &LW\RI3DOP'HVHUWIRUWKHXVHRIWKH'HVHUW:LOORZ*ROI&RXUVH&OXEKRXVH$VRI-XQHWKHYDOXHRIWKH OHDVHOLDELOLW\LV
7KH YDOXHRIWKH ULJKWWRXVHOHDVHGDVVHWDVRI -XQHRIZLWK DFFXPXODWHGDPRUWL]DWLRQRI0RUHLQIRUPDWLRQFDQEHIRXQGLQ1RWH (&2120,&)$&7256$1'1(;7<($5¶6%8'*(7
,QSUHSDULQJWKHEXGJHWIRUPDQDJHPHQWORRNHGDWWKHIROORZLQJHFRQRPLFIDFWRUV
x 3ULFHV
7KHSULFHVIRUJRRGVDQGVHUYLFHVLQWKHJROILQGXVWU\FRQWLQXHWRH[SHULHQFHLQFUHDVHGLQIODWLRQDU\ SUHVVXUHV,QDQHIIRUWWRPDLQWDLQWKHLQWHJULW\RIWKHSURGXFWV VHUYHG DW WKH UHVWDXUDQW 7KH 3DOP 'HVHUW 5HFUHDWLRQDO)DFLOLW\KDVLQFUHDVHGPHQXSULFHVEHWZHHQLQUHVSRQVHWRWKHLQFUHDVHGSUHVVXUHRQFRVWV DVVRFLDWHGZLWKODERUDQGVXSSOLHV&KDQJHVWRWKHPHQXZLOODOVREHLPSOHPHQWHGWRLQFRUSRUDWHFRVWHIIHFWLYH LWHPVDQGEHYHUDJHV6HFRQGDULO\PDQDJHPHQWFRQWLQXHVWRLPSOHPHQW EHWWHU FRVW FRQWURO PHDVXUHV WR HOLPLQDWH ZDVWDJH
x 1DWLRQDO(FRQRP\
7KHJROIDQGKRVSLWDOLW\LQGXVWULHVUHO\KHDYLO\RQDVWURQJQDWLRQDODQGORFDOHFRQRP\ :LWK D VWURQJ QDWLRQDO HFRQRP\ WKH PDUNHW GHPDQG IRU OHLVXUH DFWLYLWLHV VXFK DV JROI DQG GLQLQJ DUH
LQFUHDVHG
KRZHYHULQDQHFRQRPLFGRZQWXUQRUDVORZLQJRIWKHHFRQRP\WKHW\SLFDOWUHQGLVIRUFRQVXPHUV WRUHGXFHWKHLUFRQVXPSWLRQRIOHLVXUHDFWLYLWLHV7KHVWDWHRIWKHFXUUHQWHFRQRP\ZDVWDNHQLQWRFRQVLGHUDWLRQ ZKHQEXGJHWLQJIRUWKHILVFDO\HDU
x /DERU FRVW
7KH6WDWH RI&DOLIRUQLD KDVPDQGDWHG LQFUHDVHGPLQLPXPZDJH UDWHVZKLFK LQFUHDVHGIURP SHUKRXUWRSHUKRXUHIIHFWLYH-DQXDU\DQGLVPDQGDWHGWRLQFUHDVHWRSHUKRXURQ -DQXDU\)XUWKHULQ$SULORIWKH6WDWHRI&DOLIRUQLDKDVPDQGDWHGDOOIDVWIRRGZRUNHUPLQLPXP ZDJHWRLQFUHDVHWRSHUKRXU0DQDJHPHQWLVGHWHUPLQLQJWKHLPSDFWWRWKHUHVWDXUDQWZDJHVUHODWLQJWR WKHLQFUHDVHLQWKHPLQLPXPZDJHRIIDVWIRRGZRUNHUV7KHLQFUHDVHGPLQLPXPZDJHUDWHFRXSOHGZLWKWKH PDQGDWHG FKDQJHVLQHPSOR\HUSURYLGHGKHDOWK FDUHEHQHILWV $IIRUGDEOH&DUH$FW
SODFHVSUHVVXUHRQDQ
DOUHDG\ IUDJLOH IRRG LQGXVWU\ 7KH 3DOP 'HVHUW 5HFUHDWLRQDO )DFLOLWLHV &RUSRUDWLRQ KDV WDNHQ PHDVXUHV WR PDQDJHODERUFRVWVZLWKRXWDIIHFWLQJFXVWRPHUVHUYLFHDQGZLOOFRQWLQXHWRVHHNHIIHFWLYHDQGHIILFLHQWPHWKRGV WRLPSOHPHQWLQWKHLUGDLO\RSHUDWLRQV
$FRS\RIWKH&RUSRUDWLRQ¶VILQDQFLDOSODQFDQEHREWDLQHGE\FRQWDFWLQJWKH3DOP'HVHUW 5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ
VHHEHORZ
&217$&7,1*7+(&25325$7,21¶6),1$1&,$/0$1$*(0(17
7KLVILQDQFLDO UHSRUW LV GHVLJQHGWR SURYLGHWKH XVHUVZLWK D JHQHUDO RYHUYLHZRIWKH3DOP'HVHUW5HFUHDWLRQDO )DFLOLWLHV&RUSRUDWLRQDFRPSRQHQWXQLWRIWKH&LW\RI3DOP'HVHUW,I\RXKDYHTXHVWLRQVDERXWWKLVUHSRUWRUQHHG DGGLWLRQDOILQDQFLDOLQIRUPDWLRQFRQWDFWWKH&RQWUROOHUDWWKHDGGUHVVRIWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV &RUSRUDWLRQDW
'HVHUW:LOORZ'ULYH3DOP'HVHUW&DOLIRUQLD
8 651
PALM DESERT RECREATIONAL FACILITIES CORPORATION
Statement of Net Position
For the Year Ended June 30, 2023
ASSETS:
Current:
Cash and cash equivalents $ 1,216,690
Accounts receivable 33,236
Inventories 75,170
Prepaid expenses 10,937
Total current assets 1,336,033
Noncurrent:
Leased assets, net of accumulated amortization 2,494,164 Total noncurrent assets 2,494,164
TOTAL ASSETS 3,830,197
LIABILITIES:
Current:
Accounts payable 37,113
Accrued liabilities 137,002
Accrued interest payable 3,594
Advances from related party 1,998,564
Unearned revenues 188,193
Lease payable, due in one year 53,295
Total current liabilities 2,417,761
Noncurrent:
Lease payable, due in more than one year 2,475,747
Total noncurrent liabilities 2,475,747
TOTAL LIABILITIES 4,893,508
NET POSITION (DEFICIT):
Unrestricted (deficit) (1,063,311)
TOTAL NET POSITION (DEFICIT) $ (1,063,311)
See Notes to Basic Financial Statements.
9 652
PALM DESERT RECREATIONAL FACILITIES CORPORATION
Statement of Revenues, Expenses and Changes in Net Position For the Year Ended June 30, 2023
OPERATING REVENUES:
Food and beverage sales $ 4,875,792
TOTAL OPERATING REVENUES 4,875,792
OPERATING EXPENSES:
Cost of goods sold 1,342,255
Maintenance and operations 3,325,001
General and administrative 176,625
Amortization 71,262
TOTAL OPERATING EXPENSES 4,915,143
OPERATING INCOME (39,351)
NONOPERATING REVENUES (EXPENSES)
Interest expense (43,531)
TOTAL NONOPERATING REVENUES (EXPENSES) (43,531)
CHANGE IN NET POSITION (82,882)
NET POSITION (DEFICIT) - BEGINNING OF YEAR (980,429)
NET POSITION (DEFICIT) - END OF YEAR $ (1,063,311)
See Notes to Basic Financial Statements.
10 653
PALM DESERT RECREATIONAL FACILITIES CORPORATION
Statement of Cash Flows
For the Year Ended June 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers $ 4,891,749
Payments to suppliers (4,808,904)
NET CASH PROVIDED BY OPERATING ACTIVITIES 82,845
CASH FLOWS FROM NON-CAPITAL AND RELATED
FINANCING ACTIVITIES
Cash advanced from other funds 383,040
NET CASH PROVIDED BY NON-CAPITAL AND RELATED
FINANCING ACTIVITIES 383,040
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Interest paid on leases (43,531)
Principal paid on leases (52,396)
NET CASH USED BY CAPITAL AND RELATED
FINANCING ACTIVITIES (95,927)
NET INCREASE IN CASH AND CASH EQUIVALENTS 369,958
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 846,732
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1,216,690
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income $ (39,351)
Adjustments to reconcile operating income
to net cash provided by operating activities:
Changes in assets and liabilities:
Amortization 71,262
(Increase) decrease in receivables 71,946
(Increase) decrease in inventory (12,614)
(Increase) decrease in prepaid expenses (186)
Increase (decrease) in accounts payable (15,228)
Increase (decrease) in accrued liabilities 63,005
Increase (decrease) in unearned revenues (55,989)
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 82,845
See Notes to Basic Financial Statements.
11 654
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH
127(
25*$1,=$7,21$1''(6&5,37,212)7+(5(3257,1*(17,7< 7KH 3DOP 'HVHUW 5HFUHDWLRQDO )DFLOLWLHV &RUSRUDWLRQ WKH &RUSRUDWLRQ
LV D &RUSRUDWLRQ WKDW SURYLGHV IRRG DQG
EHYHUDJHVHUYLFHVH[FOXVLYHO\WRWKH'HVHUW:LOORZ*ROI5HVRUW WKH*ROI5HVRUW
7KH&RUSRUDWLRQLVDFRPSRQHQW
XQLW RI WKH &LW\ RI 3DOP 'HVHUW
WKH &LW\
DQG LV UHSRUWHG DV DQ (QWHUSULVH )XQG LQ WKH &LW\¶V EDVLF ILQDQFLDO VWDWHPHQWV7KH&RUSRUDWLRQZDVLQFRUSRUDWHGRQ)HEUXDU\
7KH%RDUGRI'LUHFWRUVRIWKH&RUSRUDWLRQ
FRQVLVWVRIWZRPHPEHUVRIWKH&LW\&RXQFLODQGWZRPHPEHUVRIWKHSXEOLFDWODUJH7KHDQQXDO%RDUGRI'LUHFWRU¶V PHHWLQJVDUHKHOGWKHVHFRQG0RQGD\RI-XQHDW
DPDWWKHSULQFLSDORIILFHRIWKH&RUSRUDWLRQ
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
$ %DVLF)LQDQFLDO6WDWHPHQWV
7KH EDVLF ILQDQFLDO VWDWHPHQWV DUH FRPSULVHG RI WKH 6WDWHPHQW RI 1HW3RVLWLRQ WKH 6WDWHPHQW RI 5HYHQXHV ([SHQVHV DQG &KDQJHV LQ 1HW 3RVLWLRQ WKH 6WDWHPHQW RI &DVK )ORZV DQG WKH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV
% %DVLVRI3UHVHQWDWLRQ
7KH EDVLF ILQDQFLDO VWDWHPHQWV RI WKH 3DOP 'HVHUW 5HFUHDWLRQDO )DFLOLWLHV &RUSRUDWLRQ KDYHEHHQSUHSDUHGLQ FRQIRUPLW\ZLWKWKHDFFUXDOEDVLVRIDFFRXQWLQJSULQFLSOHVDVDSSOLFDEOHWRJRYHUQPHQWXQLWV7KH*RYHUQPHQWDO $FFRXQWLQJ6WDQGDUGV%RDUGLVWKHDFFHSWHGVWDQGDUGVHWWLQJERG\IRUHVWDEOLVKLQJJRYHUQPHQWDODFFRXQWLQJ DQGILQDQFLDOUHSRUWLQJSULQFLSOHV
7KH DFFRXQWV RI WKH &RUSRUDWLRQ DUH DQ HQWHUSULVHIXQG $Q HQWHUSULVH IXQG LV D 3URSULHWDU\W\SHIXQGXVHGWR DFFRXQWIRU RSHUDWLRQV
D
WKDWDUHILQDQFHG DQG RSHUDWHG LQ DPDQQHU VLPLODUWRSULYDWHEXVLQHVVHQWHUSULVHV ZKHUHWKHLQWHQWRIWKHJRYHUQLQJERG\LVWKDWWKHFRVWV
H[SHQVHVLQFOXGLQJGHSUHFLDWLRQ
RISURYLGLQJJRRGVRUVHUYLFHVWRWKHJHQHUDOSXEOLFRQDFRQWLQXLQJEDVLVEH ILQDQFHGRUUHFRYHUHGSULPDULO\WKURXJKXVHUFKDUJHV
RU
E
ZKHUHWKHJRYHUQLQJERG\KDVGHFLGHGWKDWSHULRGLF
GHWHUPLQDWLRQRIUHYHQXHVHDUQHGH[SHQVHVLQFXUUHGDQGRUQHWLQFRPHLVDSSURSULDWHIRUFDSLWDOPDLQWHQDQFH SXEOLFSROLF\PDQDJHPHQWFRQWURODFFRXQWDELOLW\RURWKHUSXUSRVHV & 0HDVXUHPHQW)RFXVDQG%DVLVRI$FFRXQWLQJ
0HDVXUHPHQW IRFXV LV D WHUP XVHG WR GHVFULEH ³ZKLFK´ WUDQVDFWLRQV DUH UHFRUGHG ZLWKLQ WKH YDULRXV ILQDQFLDO VWDWHPHQWV %DVLV RI DFFRXQWLQJ UHIHUV WR ³ZKHQ´ WUDQVDFWLRQV DUH UHFRUGHG UHJDUGOHVVRIWKHPHDVXUHPHQW IRFXVDSSOLHG 7KHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVDUHUHSRUWHGXVLQJWKH³HFRQRPLFUHVRXUFHVPHDVXUHPHQW IRFXV´DQGWKH³DFFUXDOEDVLVRIDFFRXQWLQJ´5HYHQXHVDUHUHFRUGHGZKHQHDUQHGDQGH[SHQVHVDUHUHFRUGHG ZKHQDOLDELOLW\LVLQFXUUHGUHJDUGOHVVRIWKHWLPLQJRIUHODWHGFDVKIORZV ' 1HW3RVLWLRQ
,QWKH6WDWHPHQWRI1HW3RVLWLRQQHWSRVLWLRQLVFODVVLILHGLQWKHIROORZLQJFDWHJRULHV
x 1HWLQYHVWPHQWLQFDSLWDODVVHWV7KLVDPRXQWFRQVLVWVRIFDSLWDODVVHWVQHWRIDFFXPXODWHGGHSUHFLDWLRQDQG UHGXFHGE\RXWVWDQGLQJGHEWWKDWLVDWWULEXWHGWRWKHDFTXLVLWLRQFRQVWUXFWLRQRULPSURYHPHQWRIWKHDVVHWV x 5HVWULFWHG QHW SRVLWLRQ 7KLV DPRXQW LV UHVWULFWHG E\ H[WHUQDO FUHGLWRUV JUDQWRUV FRQWULEXWRUV RU ODZV RU UHJXODWLRQVRIRWKHUJRYHUQPHQWV
x 8QUHVWULFWHG QHW SRVLWLRQ 7KLV DPRXQW LV DOO QHWSRVLWLRQWKDW GR QRW PHHW WKH GHILQLWLRQ RI³QHWLQYHVWPHQW LQFDSLWDODVVHWV´RU³UHVWULFWHGQHWSRVLWLRQ´
:KHQERWKUHVWULFWHGDQGXQUHVWULFWHGUHVRXUFHVDUHDYDLODEOHIRUXVHWKH&RUSRUDWLRQPD\XVHUHVWULFWHGUHVRXUFHV RUXQUHVWULFWHGUHVRXUFHVEDVHGRQWKH%RDUG¶VGLVFUHWLRQ 12 655
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
( 2SHUDWLQJ5HYHQXHV
2SHUDWLQJUHYHQXHVVXFKDVIRRGDQGEHYHUDJHVDOHVUHVXOWLQJIURPH[FKDQJHWUDQVDFWLRQVDVVRFLDWHG ZLWK WKH SULQFLSDODFWLYLW\RIWKH&RUSRUDWLRQ ([FKDQJHWUDQVDFWLRQVDUHWKRVHLQZKLFKHDFKSDUW\UHFHLYHVDQGJLYHVXS HVVHQWLDOO\HTXDOYDOXHV
) &DVKDQG,QYHVWPHQWV
)RUSXUSRVHVRIWKH6WDWHPHQWRI&DVK)ORZVWKH&RUSRUDWLRQFRQVLGHUVDOOXQUHVWULFWHGKLJKO\OLTXLGLQYHVWPHQWV ZLWKDQLQLWLDOPDWXULW\RIWKUHHPRQWKVRUOHVVWREHFDVKHTXLYDOHQWV7KHFDUU\LQJYDOXHZDV DQGWKH
GHSRVLWYDOXHZDV
7KHGLIIHUHQFHLQFOXGHV RI GHSRVLWV LQ WUDQVLW DQG FKHFNV RXWVWDQGLQJ WRWDOLQJ IRU D QHW WRWDO RI
7KH &LW\ KDV LPSOHPHQWHG *$6% 6WDWHPHQW 1R ³'HSRVLW DQG ,QYHVWPHQW 5LVN 'LVFORVXUHV´ 7KLV SURQRXQFHPHQWLVDQDPHQGPHQWWR*$6%6WDWHPHQW1R*$6%1RHVWDEOLVKHVDQGPRGLILHVGLVFORVXUH UHTXLUHPHQWVUHODWHGWRGHSRVLWDQGLQYHVWPHQWULVNV7KHLQIRUPDWLRQUHTXLUHGE\*$6%6WDWHPHQW1RUHODWHG WRDXWKRUL]HGLQYHVWPHQWVFUHGLWULVNHWFLVDYDLODEOHLQWKHDQQXDOUHSRUWRIWKH&LW\ * ,QYHQWRULHVDQG3UHSDLG
,QYHQWRULHVLQWKHDPRXQWRIFRQVLVWHGRIPHUFKDQGLVHIRUVDOHVRIIRRGDQGEHYHUDJHVDUHUHSRUWHGDW ORZHURIFRVWRUPDUNHW&HUWDLQSD\PHQWVWRYHQGRUVWKDWUHIOHFWFRVWVDSSOLFDEOHWRIXWXUHDFFRXQWLQJSHULRGVDUH UHFRUGHGDVSUHSDLGFRVWVLQWKHILQDQFLDOVWDWHPHQWV$W-XQHWKHSUHSDLGEDODQFHZDV
+ %XGJHWDU\3ROLFLHV
.HPSHU6SRUWV0DQDJHPHQW,QFLVUHTXLUHGWRVXEPLWWRWKH&LW\DQRSHUDWLQJEXGJHWFRQWDLQLQJHVWLPDWHVRIDOO WKH &RUSRUDWLRQ H[SHQVHV IRU WKH QH[W RSHUDWLQJ \HDU LQFOXGLQJ H[SHQGLWXUHV IRU
D
SURSHUW\ RSHUDWLRQ DQG
PDLQWHQDQFH
E
UHSDLUV UHSODFHPHQWV D Q G DOWHUDWLRQV WKDW GR QRW FRQVWLWXWH FDSLWDO LPSURYHPHQWV
F
IXUQLVKLQJV DQG HTXLSPHQW DQGRSHUDWLQJ LQYHQWRU\ DQG G
DGYHUWLVLQJ VDOH DQG EXVLQHVV SURPRWLRQ7KH
EXGJHWLVUHTXLUHGWREHUHYLHZHGDQGDSSURYHGE\WKH&LW\SULRUWR-XO\VWHDFK\HDU , 1HZ$FFRXQWLQJ3URQRXQFHPHQWV
'XULQJWKH\HDUHQGHG-XQHWKH&RUSRUDWLRQLPSOHPHQWHG*$6%/HDVHV7KLVVWDWHPHQWUHTXLUHV UHFRJQLWLRQRIFHUWDLQOHDVHDVVHWVDQGOLDELOLWLHVIRUOHDVHVWKDWSUHYLRXVO\ZHUHFODVVLILHGDVRSHUDWLQJOHDVHVDQG UHFRJQL]HGDVLQIORZVRIUHVRXUFHVRURXWIORZVRIUHVRXUFHVEDVHGRQWKHSD\PHQWSURYLVLRQVRIWKHFRQWUDFW 127(
'8(7235,0$5<*29(510(17$1'81($51('5(9(18(
$ 'XHWR3ULPDU\*RYHUQPHQW
$VRI-XQHWKH&RUSRUDWLRQRZHGWKHIROORZLQJDPRXQWVWRSULPDU\JRYHUQPHQW
7KH&RUSRUDWLRQDPRXQWVRZHGWRSULPDU\JRYHUQPHQWUHSUHVHQWDPRXQWVRZHGWRWKH'HVHUW:LOORZ*ROI5HVRUW IRUPRQLHVSURYLGHGIRURSHUDWLRQVDQGSDVWGXHUHQWGXHWRWKH&LW\RI3DOP'HVHUWSHUWKHOHDVHDJUHHPHQWZLWK WKH&LW\IRUXVHRIWKHIDFLOLWLHV
VHH1RWH
'HVHUW:LOORZ*ROI&RXUVH
&LW\RI3DOP'HVHUW
13 656
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH
127(
'8(7235,0$5<*29(510(17$1'81($51('5(9(18(
&217,18('
% 8QHDUQHG5HYHQXH
7KHEDODQFHRI
UHSUHVHQWVWKHXQXVHGSRUWLRQVRISUHSDLGEDQTXHWV 127(
/($6(6
7KH &RUSRUDWLRQ LPSOHPHQWHG *$6% 6WDWHPHQW 1R LQ WKH ILVFDO \HDU HQGHG -XQH 7KH SULPDU\ REMHFWLYHRIWKLVVWDWHPHQWLVWRHQKDQFHWKHUHOHYDQFHDQGFRQVLVWHQF\RILQIRUPDWLRQDERXWJRYHUQPHQWV¶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
WRPDNHPRQWKO\IL[HGSD\PHQWVRI7KHOHDVHKDVDQLQWHUHVWUDWHRI7KHHVWLPDWHGXVHIXOOLIH ZDV \HDUV DV RI WKH FRQWUDFW FRPPHQFHPHQW 7KH YDOXH RI WKH ULJKWWRXVH DVVHW DV RI -XQH RI ZLWKDFFXPXODWHGDPRUWL]DWLRQRI
$VXPPDU\RIFKDQJHVLQOHDVHGDVVHWVDW-XQHZDVDVIROORZV
7KHIROORZLQJLVDVXPPDU\RIOHDVHSD\DEOHWUDQVDFWLRQVIRUWKH\HDUHQGHG-XQH %DODQFH %DODQFH
-XQH $GGLWLRQV 5HGXFWLRQV -XQH
5LJKWWRXVHOHDVHGDVVHWEHLQJDPRUWL]HG
/HDVHGDVVHWEXLOGLQJ
3D\PHQWVWRVXSSOLHUV $FFXPXODWHGDPRUWL]DWLRQ
/HDVHGDVVHWEXLOGLQJ
7RWDO /HDVHG DVVHWV QHW RI DFFXPXODWHG
DPRUWL]DWLRQ
%DODQFH %DODQFH 'XH:LWKLQ
-XQH 5HGXFWLRQV -XQH 2QH<HDU
/HDVHSD\DEOH
7RWDO
14 657
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH
127(
/($6(6
&217,18('
)XWXUHSULQFLSDODQGLQWHUHVWUHTXLUHPHQWVWRPDWXULW\IRUWKHOHDVHOLDELOLW\LVDVIROORZV
7KH RULJLQDO WHUPV RI WKH OHDVH LQGLFDWHG D OHDVH UDWH RI SHU PRQWK EHJLQQLQJ -XQH
2Q
0D\ WKH &RUSRUDWLRQ DSSURYHG DQ LQFUHDVH LQ WKH OHDVH SD\PHQW FRPPHQFLQJRQ -XO\7KH -XO\ OHDVH DPHQGPHQW VWLSXODWHG D QHZ OHDVH SD\PHQW RISHUPRQWK2Q0D\ WKH
%RDUG RI 'LUHFWRUV DSSURYHG D GHFUHDVH LQ WKH OHDVH SD\PHQW IURP WR FRPPHQFLQJ RQ -XO\
$W-XQHWKH&RUSRUDWLRQRZHGLQUHQWLQDUUHDUVWRWKH&LW\RI3DOP'HVHUW7KLV DPRXQWLVLQFOXGHGLQ$GYDQFHVIURP5HODWHG3DUWLHV
$ 0DQDJHPHQW$JUHHPHQW
7KH&RUSRUDWLRQLVPDQDJHGE\.HPSHU6SRUWV0DQDJHPHQW,QFXQGHUDQDJUHHPHQWWRPDQDJHDQGRSHUDWH 'HVHUW :LOORZ *ROI &RXUVH 2Q -XQH
D QHZ FRQWUDFW ZDV DSSURYHG ZLWK D FRPPHQFHPHQW GDWH RI -XO\ DQG DWHUPLQDWLRQ GDWH RI -XQH 7KHUH LV RQH \HDU RSWLRQWR H[WHQGWKHPDQDJHPHQW DJUHHPHQWIRUDQDGGLWLRQDOILYH\HDUVDWWKH&LW\¶VGLVFUHWLRQ 127(
5,6.0$1$*(0(17
7KH *ROI 5HVRUW LV FRYHUHG E\ LQVXUDQFH SXUFKDVHG E\ .HPSHU 6SRUWV 0DQDJHPHQW ,QF ZKLFK LQFOXGHV FRPPHUFLDO OLDELOLW\ DXWRPRELOH ZRUNHUV¶FRPSHQVDWLRQ DQG RYHUDOO XPEUHOOD H[FHVVOLDELOLW\ LQVXUDQFH WKURXJK $RQ5LVN6HUYLFHV,QFRI,OOLQRLV7KH&RUSRUDWLRQLVQDPHGDVDGGLWLRQDOLQVXUHG 127(
27+(5',6&/2685(6
7KH&RUSRUDWLRQKDVDQHWGHILFLWRIZKLFKZLOOEHHOLPLQDWHGE\LQFUHDVLQJUHYHQXHVWKURXJKEDQTXHW DQGGLQLQJUHVHUYDWLRQV
3ULQFLSDO ,QWHUHVW 7RWDO
)LVFDO<HDU 3D\PHQWV 3D\PHQWV 3D\PHQWV
7RWDO
15 658
3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21
1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH
127(
27+(5',6&/2685(6
&217,18('
7KH&RUSRUDWLRQKDVIHGHUDODQGVWDWHLQFRPHWD[1HW2SHUDWLQJ/RVVHV 12/
FDUU\IRUZDUGVRI
ZKLFK
ZLOOH[SLUHLQWKHQH[W\HDUVDVIROORZVDQGDSULRU12/LQFXUUHGLQILVFDO\HDU RIDQGDORVV
RILQFXUUHGLQILVFDO\HDUWKDWFDQEHFDUULHGIRUZDUGLQGHILQLWHO\VXEMHFWDQLQFRPHOLPLWDWLRQRI LQ\HDUXWLOL]HGIRUDFRPELQHG12/RI7KHUHZDVDQLQFUHDVHLQWKH12/FDUU\IRUZDUGRI IRUWKHWD[\HDU
7KH &RUSRUDWLRQ DQWLFLSDWHV WKDW LW LV PRUH OLNHO\ WKDQ QRW WKH EHQHILW IRU HDFK FHUWDLQ 6WDWH DQG )HGHUDO 12/ FDUU\IRUZDUGVZLOOEHUHDOL]HGEHIRUHWKHLUUHVSHFWLYHH[SLUDWLRQ
12/XWLOL]HGLQ
UHPDLQLQJ
LQGHILQLWH
LQGHILQLWH
LQGHILQLWH
7RWDO
16 659
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
,1'(3(1'(17$8',7256¶5(325721,17(51$/&21752/
29(5),1$1&,$/5(3257,1*$1'21&203/,$1&($1'27+(50$77(56 %$6('21$1$8',72)),1$1&,$/67$7(0(1763(5)250(',1$&&25'$1&( :,7+GOVERNMENT AUDITING STANDARDS
7RWKH%RDUGRI'LUHFWRUV
3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ
3DOP'HVHUW&DOLIRUQLD
:H KDYH DXGLWHG LQ DFFRUGDQFH ZLWK WKH DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI$PHULFDDQGWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXGLWVFRQWDLQHGLQGovernment Auditing StandardsLVVXHGE\ WKH&RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHVWKHILQDQFLDOVWDWHPHQWVRIWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV &RUSRUDWLRQ
WKH&RUSRUDWLRQ
DFRPSRQHQWXQLWRIWKH&LW\RI3DOP'HVHUW&DOLIRUQLD WKH&RUSRUDWLRQ
DVRIDQG
IRUWKH\HDUHQGHG-XQHDQGWKHUHODWHGQRWHVWRWKHILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\FRPSULVHWKH &RUSRUDWLRQ¶VEDVLFILQDQFLDOVWDWHPHQWVDQGKDYHLVVXHGRXUUHSRUWWKHUHRQGDWHG)HEUXDU\ ,QWHUQDO&RQWURORYHU)LQDQFLDO5HSRUWLQJ
,QSODQQLQJDQGSHUIRUPLQJRXUDXGLWRIWKHILQDQFLDOVWDWHPHQWVZHFRQVLGHUHGWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURO RYHU ILQDQFLDO UHSRUWLQJ
LQWHUQDO FRQWURO
DV D EDVLV IRU GHVLJQLQJ DXGLW SURFHGXUHV WKDW DUH DSSURSULDWH LQ WKH FLUFXPVWDQFHVIRUWKHSXUSRVHRIH[SUHVVLQJRXURSLQLRQVRQWKHILQDQFLDOVWDWHPHQWVEXWQRWIRUWKHSXUSRVHRI H[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURO$FFRUGLQJO\ZHGRQRWH[SUHVVDQ RSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURO $deficiency in internal controlH[LVWVZKHQWKHGHVLJQRURSHUDWLRQRID FRQWUROGRHVQRWDOORZPDQDJHPHQWRU HPSOR\HHV LQ WKH QRUPDO FRXUVH RI SHUIRUPLQJ WKHLU DVVLJQHG IXQFWLRQV WR SUHYHQW RU GHWHFW DQG FRUUHFW PLVVWDWHPHQWVRQDWLPHO\EDVLV$material weaknessLVDGHILFLHQF\RUDFRPELQDWLRQRIGHILFLHQFLHVLQLQWHUQDO FRQWUROVXFKWKDWWKHUHLVDUHDVRQDEOHSRVVLELOLW\WKDWDPDWHULDOPLVVWDWHPHQWRIWKHHQWLW\¶VILQDQFLDOVWDWHPHQWV ZLOO QRW EH SUHYHQWHG RU GHWHFWHG DQG FRUUHFWHG RQ DWLPHO\ EDVLV$significant deficiency LV D GHILFLHQF\ RU D FRPELQDWLRQRIGHILFLHQFLHVLQLQWHUQDOFRQWUROWKDWLVOHVVVHYHUHWKDQDPDWHULDOZHDNQHVV\HWLPSRUWDQWHQRXJK WRPHULWDWWHQWLRQE\WKRVHFKDUJHGZLWKJRYHUQDQFH
2XUFRQVLGHUDWLRQRILQWHUQDOFRQWUROZDVIRUWKHOLPLWHGSXUSRVHGHVFULEHGLQWKHILUVWSDUDJUDSKRIWKLVVHFWLRQDQG ZDVQRWGHVLJQHGWRLGHQWLI\DOOGHILFLHQFLHVLQLQWHUQDOFRQWUROWKDWPLJKWEHPDWHULDOZHDNQHVVHVRUVLJQLILFDQW GHILFLHQFLHV*LYHQWKHVHOLPLWDWLRQVGXULQJRXUDXGLWZHGLGQRWLGHQWLI\DQ\GHILFLHQFLHVLQLQWHUQDOFRQWUROWKDWZH FRQVLGHUWREHPDWHULDOZHDNQHVVHV+RZHYHUPDWHULDOZHDNQHVVHVPD\H[LVWWKDWKDYHQRWEHHQLGHQWLILHG &RPSOLDQFHDQG2WKHU0DWWHUV
$V SDUW RI REWDLQLQJ UHDVRQDEOH DVVXUDQFH DERXW ZKHWKHU WKH &RUSRUDWLRQ¶V ILQDQFLDO VWDWHPHQWV DUH IUHH IURP PDWHULDOPLVVWDWHPHQWZHSHUIRUPHGWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWV DQGJUDQWDJUHHPHQWVQRQFRPSOLDQFHZLWKZKLFKFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQILQDQFLDOVWDWHPHQWV +RZHYHU SURYLGLQJ DQ RSLQLRQ RQ FRPSOLDQFH ZLWK WKRVH SURYLVLRQV ZDV QRW DQ REMHFWLYH RI RXU DXGLW DQG DFFRUGLQJO\ZHGRQRWH[SUHVVVXFKDQRSLQLRQ7KHUHVXOWVRIRXUWHVWVGLVFORVHGQRLQVWDQFHVRIQRQFRPSOLDQFH RURWKHUPDWWHUVWKDWDUHUHTXLUHGWREHUHSRUWHGXQGHUGovernment Auditing Standards 660
7RWKH%RDUGRI'LUHFWRUV
3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ
3DOP'HVHUW&DOLIRUQLD
3XUSRVHRIWKLV5HSRUW
7KHSXUSRVHRIWKLVUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURODQGFRPSOLDQFHDQGWKH UHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURORURQ FRPSOLDQFH7KLVUHSRUWLVDQLQWHJUDOSDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFHZLWKGovernment Auditing Standards LQFRQVLGHULQJWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURODQGFRPSOLDQFH$FFRUGLQJO\WKLVFRPPXQLFDWLRQLVQRWVXLWDEOHIRU DQ\RWKHUSXUSRVH
%UHD&DOLIRUQLD
)HEUXDU\
18 661
662