Agenda packet, regular meeting — Palm Desert City Council, December 12, 2024 (part 2 of 4)

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: December 12, 2024
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: RATIFY A LETTER OF SUPPORT FOR COACHELLA VALLEY BEHAVIORAL HEALTH HOSPITAL - 40 BED EXPANSION PROJECT
RECOMMENDATION:

Ratify the issuance of the letter of support for the Coachella Valley Behavioral Health’s 40-Bed Expansion Project.

BACKGROUND/ANALYSIS:

Coachella Valley Behavioral Health (CVBH), located in Indio, CA, is an 80-bed inpatient facility providing critical mental health services, including crisis stabilization, detoxification, and outpatient care for residents across the Coachella Valley and Riverside County. With increasing demand for mental health services driven by regional population growth and broader statewide needs, CVBH has proposed a 40-bed expansion to address capacity limitations and meet community health priorities.

Recognizing the importance of this project to the region, the City Council Ad Hoc Subcommittee on Legislative Affairs, consisting of Mayor Karina Quintanilla and Mayor Pro Tem Jan Harnik, authorized the issuance of a support letter to Coachella Valley Behavioral Health’s CEO on December 5, 2024. This letter endorses the expansion project and its application for Bond BHCIP Round 1: Launch Ready funding.

Staff has performed due diligence on this request. Based on this review, staff believes the support is justified, provided that communication protocols to address prior concerns with CVBH are implemented and maintained as part of this expansion.

Legal Review:

This report has been reviewed by the City Attorney’s Office.

FINANCIAL IMPACT:

There is no direct fiscal impact associated with this action.

ATTACHMENT:

1. Letter of Support for Coachella Valley Behavioral Health Expansion Project 167
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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: December 12, 2024
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: REAPPOINTMENT OF DOUGLAS WALKER AS THE CITY’S

REPRESENTATIVE TO THE COACHELLA VALLEY MOSQUITO AND

VECTOR CONTROL DISTRICT BOARD OF TRUSTEES
RECOMMENDATION:

Reappoint Douglas Walker as the City of Palm Desert’s representative to the Coachella Valley Mosquito and Vector Control District (CVMVCD) Board of Trustees for a four-year term ending January 1, 2029.

BACKGROUND/ANALYSIS:

The City of Palm Desert is required to appoint a representative to the Coachella Valley Mosquito and Vector Control District (CVMVCD) Board of Trustees for a new term beginning January 2025. Doug Walker has served as the City’s representative since his initial appointment in January 2007. His current term ends on January 6, 2025.

The CVMVCD Clerk of the Board has notified the City that a new appointment or reappointment is required. Per CVMVCD bylaws, the City’s representative must be in place prior to the first Monday in January for the upcoming term. The governing Health and Safety Code specifies that appointments are to be made for either two or four years.

In early November 2024, Mr. Walker informed the City Clerk’s Office that he is willing to continue serving if reappointed. He also expressed his availability to address the City Council, should they wish to hear from him directly.

On November 6, 2024, City staff informed the City Council Subcommittee on Boards and Commissions (Mayor Pro Tem Harnik and Councilmember Kelly) of the impending vacancy. The Subcommittee reviewed the matter and recommended Mr. Walker for reappointment.

Mr. Walker has professional and academic experience in entomology and natural resources, including a Master of Science degree in Entomology from the University of California, Davis. He served for 34 years as a faculty member and administrator at College of the Desert and held a California Pest Control Advisor License for over 40 years.

The City Council may choose to reappoint Mr. Walker or consider appointing an alternate Councilmember or qualified City resident to fill this role.

Legal Review:

This report has been reviewed by the City Attorney’s Office 171
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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: December 12, 2024
PREPARED BY: Carlos Flores, AICP, Principal Planner
SUBJECT: APPROVAL OF MILLS ACT CONTRACTS BETWEEN THE CITY AND

THE PROPERTY OWNER OF THREE INDIVIDUAL HISTORICAL

PROPERTIES
RECOMMENDATION:

1. Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM DESERT, CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 241 SANDPIPER STREET.”

2. Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM DESERT, CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 72541 EL PASEO, UNIT 1004.”

3. Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM DESERT, CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 45666 SHADOW MOUNTAIN DRIVE.”
BACKGROUND/ANALYSIS:

The Mills Act Program enables California cities to enter contracts with owners of historical properties (as designated by the City Council) to provide them with tax relief in exchange for a contract to actively participate in the restoration and maintenance of historical resources. A Mills Act contract is effective for an initial 10-year period and then is automatically extended annually for an additional year, unless, after the initial term, either the City or the owner, by written notice, decides not to renew the contract.

During the effective term of the contract, the property owner must improve, rehabilitate, or maintain the property consistent with the United State Secretary of the Interior’s Standards for Rehabilitation, and provide visibility of the historical resource from the public right-of-way and/or other accessible areas.

The Environmental Resources Element (ERE) of the General Plan describes the City’s goals and policies for the protection of cultural resources. Goals 6.9.4 and 6.9.5 state that the City will require sites with significant cultural resources and structures to be preserved. A property must be designated as a local Historic Landmark or be a contributing property to a Historic District to be enrolled in the program.

Currently, there are 44 properties participating in the program, with the last requests approved by the City Council in December 2023.
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City of Palm Desert
Mills Act Approvals

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The current proposed applicants utilized the updated Mills Act guidelines approved by City Council in 2024, including an updated contract and eligible scope of work checklist. The items presented include three (3) separate requests for Mills Act contracts, summarized in Table 1 below:

Table 1 – Proposed Mills Act contract properties
Case Number Address Landmark/District Name Council Designation date MILLS24-0002 241 Sandpiper Sandpiper Circle #2 2/10/2022 MILLS24-0005 72541 El Paseo, Unit 1004 Sandpiper Circles 5-10 3/23/2017 MILLS24-0006 45666 Shadow Mountain Dr Charles and June Gibbs House 10/26/2023 Legal Review:

This report has been reviewed by the City Attorney’s Office.

Environment Review:

Entering into a “Mills Act Contract” with the owners of historical property is not subject to the provisions of the California Environmental Quality Act (CEQA) because it is not a project as defined in CEQA Guidelines § 15378 (Definitions – Project). Implementation of the Mills Act is a government fiscal activity which does not involve commitment to any specific project resulting in a potentially significant physical impact on the environment (CEQA Guidelines § 15378 (b) (4)).

FINANCIAL IMPACT:

After the Mills Act Contracts are recorded, the County Assessor values the property by an income capitalization method, following guidelines provided by the State Board of Equalization.

Because of the timing and the method of valuing the restricted property, it is difficult to accurately estimate the tax savings and resulting fiscal impacts to the City under a particular historical property contract.

However, the Office of Historic Preservation (California Department of Parks and Recreation) estimates that property owners participating in the program may realize property tax savings of between 40% and 60% each year for newly improved or purchased older properties. The City’s property tax revenue will be reduced accordingly.

ATTACHMENTS:

1. Draft Resolution and Mills Act Contract for 241 Sandpiper Street (MILLS24-0002)

2. Draft Resolution and Mills Act Contract for 72541 El Paseo, Unit 1004 (MILLS24-0005)

3. Draft Resolution and Mills Act Contract for 45666 Shadow Mountain Drive (MILLS24-0006) 174
RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,

CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 241

SANDPIPER STREET
CASE NOS. MILLS24-0002
WHEREAS, the City Council of the City of Palm Desert is authorized by California Government Code § 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and WHEREAS, the City Council of the City of Palm Desert has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance, and rehabilitation of historic resources through financial incentives; and WHEREAS, the City Council of the Palm Desert has designated this property as a historic resource of the City of Palm Desert pursuant to the policies in the Title 29 of the Palm Desert Municipal Code; and
WHEREAS, Michael and Linda Cleeve are the owners of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 640-250-012-2, located at 241 Sandpiper Street, in the City of Palm Desert, California; and
WHEREAS, the City and the Owners, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and
WHEREAS, the City Council conducted a meeting in the Council Chamber of City Hall, 73510 Fred Waring Drive, Palm Desert, California, on December 12, 2024, for the purpose of considering approval of the historic property preservation agreement, and has duly considered all evidence and testimony of the applicant and interested parties, and the evaluation and recommendation by staff, present at said hearing; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) Environmental Resources Element Program 6.9.4 and 6.9.5 states that the City will require sites with significant cultural resources and structures to be preserved.
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b) The subject property, located at 241 Sandpiper Street, has been recognized as a historic asset in the community by its designation as a Contributing Asset to a Historic District by the City Council by Resolution No. 2022-07 on February 10, 2022. As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies 6.9.4 and 6.9.5 of the Environmental Resources Element.

SECTION 2. Environmental Determination. The City Council has determined that the above actions do not constitute a project, as defined in California Environmental Quality Act Guidelines § 15378 and are not subject to environmental review.

SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the Mills Act Agreement between the City of Palm Desert and the Owner of the Historic Property Located at 241 Sandpiper Street, to be entered into by the City and the property owners, Michael J Cleeve and Linda I Cleeve.

SECTION 4. City Manager Authorized to Sign Agreement for City. The City Council hereby authorizes the Community Development Director to execute said agreement on behalf of the Council of the City of Palm Desert.

SECTION 5. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City’s office at 73510 Fred Waring Drive, Palm Desert, CA 92260. Anthony J. Mejia, MMC, the City Clerk of the City of Palm Desert is the custodian of the record of proceedings.

SECTION 6. Effective Date. This Resolution shall become effective immediately upon its adoption.

ADOPTED ON _______________.

KARINA QUINTANILLA
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM DESERT )
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, DO HEREBY CERTIFY that the foregoing Resolution No. 24-__ was duly adopted by the City Council of the City of Palm Desert at a regular meeting held on the ___ day of December, 2024 by the following vote of the Council:

AYES:

NOES:

ABSENT:
(SEAL)
_________________________
ANTHONY J. MEJIA

CITY CLERK
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APPENDIX C
Recording Requested by: )
When Recorded Mail to: )
)

CITY OF PALM DESERT )
73-510 Fred Waring Drive )
Palm Desert, CA 92260 )
)
Attention: Cultural Resources )
Administrator )
)
)
)
(Space above for Recorder’s Office)

HISTORIC PROPERTY PRESERVATION AGREEMENT
(“MILLS ACT CONTRACT”)
between

THE CITY OF PALM DESERT
a California municipal corporation
and
Linda I Cleeve
Michael J Cleeve
Owner(s) of the property located at
241 Sandpiper Street
APN 640-250-012-2 ------
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APPENDIX C
HISTORIC PROPERTY PRESERVATION AGREEMENT (“MILLS
ACT CONTRACT”)
This agreement (“Agreement”) is made this _____ day of _________ 20__, by and between the City of Palm Desert, a California municipal corporation (“City”), and Michael J Cleeve and Linda I Cleeve (“Owner”).

RECITALS

1. California Government Code section 50280, et. seq. allow cities the discretion to enter into contracts with the owners of qualified historic properties, as defined in Government Code section 50280.1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property, so as to retain its characteristics as property of historic significance; and

2. Owner holds fee title to that certain real property, together with associated structures and improvements thereon, generally located at 241 Sandpiper Street within the City of Palm Desert, California (“Historic Property”). A legal description of the Historic Property is attached hereto as Exhibit “A,” and incorporated herein by this reference; and

3. On February 10 , 2022, the Cultural Resources Preservation Committee and/or the City Council designated the Historic Property as a historic resource, pursuant to the terms and provisions of Title 29 of the Palm Desert Municipal Code; and

4. City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character; and

5. Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of Chapter 3, Part 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom.

TERMS
NOW, THEREFORE, the City and Owner, in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows:

1. Effective Date and Term of Agreement. This Agreement shall be effective and 180

APPENDIX C
commence on December 12, 2024 (“Effective Date”), and shall remain in effect for a term of ten (10) years thereafter.

2. Yearly Renewal. Each year upon the anniversary of the Effective Date (“Renewal Date”), an additional one (1) year shall automatically be added to the remaining term of the Agreement, unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement.

3. Nonrenewal. If either the Owner or City desires at any point not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the party in advance of the Renewal Date (“Notice of Nonrenewal”). The Notice of Nonrenewal shall be effective, only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective, only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the remaining Agreement term.

4. Owner Protest of City Nonrenewal. Within fifteen (15) days of Owner’s receipt of the Notice of Nonrenewal from the City, Owner may file with the City a written protest of the Notice of Nonrenewal. Upon receipt of the written protest, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish to the City Council any information that Owner deems relevant, and shall furnish that which is requested or required by the City Council. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal.

5. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions:

A. Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Attached hereto as Exhibit “B” and incorporated herein by this reference, is a list of the minimum standards and conditions for the maintenance, use, protection, and preservation of the Historic Property, which shall be complied with by Owner at all times throughout the term of this Agreement. In addition, Owner shall comply with the terms of the City’s Cultural Resources Ordinance 1168 (Title 29 of the Palm Desert Municipal Code), and shall obtain any and all applicable permits 181

APPENDIX C
necessary to protect, preserve, restore, and rehabilitate the Historic Property, so as to maintain its historical and cultural significance.

B. Owner shall, where necessary, repair, maintain, restore, and rehabilitate the Historic Property according to the rules and regulations of both the Office of Historic Preservation of the State Department of Parks and Recreation, and the City of Palm Desert. The condition of the Historic Property’s exterior on the Effective Date of this Agreement is documented in the photographs attached hereto as Exhibit “C” and incorporated herein by this reference. At a minimum, Owner shall continually maintain the exterior of the Historic Property in the same condition as documented and depicted in Exhibit “C.” C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in Exhibit “D,” attached hereto and incorporated herein by this reference. All such projects shall be undertaken and completed in accordance with both the Secretary of Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings, in addition to the City of Palm Desert’s design guidelines.

D. Owner shall not be permitted to block the view corridor with any new structure such as walls, fences or shrubbery, so as to prevent the view of the Historic Property from the public right-of-way.

6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or the City, as may be necessary to determine Owner’s compliance with the terms and provisions of this Agreement.

7. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City, which the City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement.

8. Breach of Agreement; Remedies.

A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail, detailing Owner’s violations. If such violation is not corrected to the 182

APPENDIX C
reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City’s declaration of Owner’s breach of this Agreement, City may pursue any and all remedies available pursuant to local, state, or federal law, including those specifically provided for in this section.

B. Remedy - Termination. City may terminate this Agreement, if the City determines, following a duly noticed public hearing in accordance with Government Code section 50286, that: 1.) Owner breached any of the conditions of this Agreement; 2.) Owner allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property or; 3.) Owner failed to maintain and preserve the Historic Property in accordance with the terms of this Agreement. If this Agreement is terminated pursuant to this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Riverside, as required by Government Code section 50286.

C. Alternative Remedies. As an alternative to termination of this Agreement for Owner’s breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership.

9. Destruction of Property; Eminent Domain; Termination. If the Historic Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be replaced, this Agreement shall be terminated, because the historic value of the structure will have been deemed destroyed. If the Historic Property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of this Agreement, this Agreement shall be terminated. No cancellation fee pursuant to Government Code section 50286 shall be imposed if the Agreement is terminated, pursuant to this Section.

10. Waiver. City does not waive any claim of default by Owner, if City does not enforce or terminate this Agreement. All other remedies at law or in equity which are not otherwise 183

APPENDIX C
provided for in this Agreement or in City’s regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder.

11. Binding Effect of Agreement. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument herein after executed, covering or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions set forth in this Agreement, deed, or other instrument.

12. Covenants Run with the Land. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner.

13. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto:

City: City of Palm Desert
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260
Owner: Michael & Linda Cleeve
241 Sandpiper Street
PALM DESERT, CA 92211

14. Effect of Agreement. None of the terms, provisions or conditions of this Agreement 184

APPENDIX C
shall be deemed to create a partnership between the parties hereto or any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise.

15. Indemnity of City. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, arising out of or incident to (i) the direct or indirect use operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner’s activities in connection with the Historic Property; and (iii) any restrictions on the use or development of the Historic Property, from application or enforcement of Title 29 of the City’s Municipal Code, or from the enforcement of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, employees, and/or agents for all legal expenses and costs incurred by each of them. Owner’s obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, employees, or agents.

16. Binding Upon Successors. All of the agreements, rights, covenants, reservations and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever.

17. Legal Costs. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, conditions or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorneys’ fees to be fixed by the court, in addition to court costs and other relief ordered by the court.

18. Severability. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby.
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APPENDIX C

19. Recordation. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Riverside. Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract.

20. Amendments. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto.

21. Governing Law and Venue. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county.
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APPENDIX C
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written.

Dated: CITY OF PALM DESERT
By
ATTESTED TO:

By
Dated: ____________________ Owner
,Owner
,Owner

APPROVED AS TO FORM
City Attorney
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APPENDIX C
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 )
)ss

COUNTY OF RIVERSIDE )
On , before me, , the undersigned, a
notary public in and for said State, personally appeared personally known to me (or 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.

WITNESS my hand and official seal.

Notary Signature
188

APPENDIX C

EXHIBIT A

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

PARCEL 1:

LOT 49 OF TRACT 3103, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 54, PAGES 36 AND 38 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL 2:

AN UNDIVIDED ONE-TWENTY FOURTH (1/24th) INTEREST IN LOT 98 OF SAID TRACT 3103, AS SHOWN BY MAP ON FILE IN BOOK 54, PAGES 36 AND 38 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL 3:

TOGETHER WITH ALL BUILDING AND OTHER IMPROVEMENTS ON SAID PREMISES, AND EASEMENTS FOR SUPPORT AND SETTLEMENT WHERE SAID LOT ADJOINS LOTS 50 AND 51, TOGETHER WITH EASEMENTS FOR EAVES OR OVERHEADS AS SUCH EXIST AS OF AUGUST 20, 1965
APN: 340-250-012-2
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APPENDIX C

EXHIBIT B

MINIMUM STANDARDS AND CONDITIONS FOR

MAINTENANCE, USE, PROTECTION, AND PRESERVATION

OF HISTORIC PROPERTY

1. The Historic District Property shall comply with all regulations of Title 8 and Title 9 of the Palm Desert Municipal Code, including the definition of “Good Repair” as outlined in Section 29.20 and 29.60.160;

2. The Historic Property shall continue to be maintained in a manner consistent with the level of maintenance that has customarily been employed at the property and consistent with the typical condominium development in the Palm Desert Area.

3. The Historic Property shall not have non-operational vehicles or portions of them in public view.

4. The Historic Property Shall not have stagnant or standing water.

5. The Historic Property Shall not have overgrown or decaying landscaping. All landscape features should be maintained including, but not limited to, grass, trees, and any plantings.

6. The Historic Property shall prominently display and properly maintain its City Landmark plaque.
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APPENDIX C

EXHIBIT C

EXTERIOR PHOTOGRAPHS OF HISTORIC PROPERTY
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APPENDIX C

EXHIBIT D

PENDING AND REQUIRED PROJECTS FOR HISTORIC PROPERTY
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194
RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,

CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 72541 EL
PASEO, UNIT 1004
CASE NOS. MILLS24-0005
WHEREAS, the City Council of the City of Palm Desert is authorized by California Government Code § 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and WHEREAS, the City Council of the City of Palm Desert has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance, and rehabilitation of historic resources through financial incentives; and WHEREAS, the City Council of the Palm Desert has designated this property as a historic resource of the City of Palm Desert pursuant to the policies in the Title 29 of the Palm Desert Municipal Code; and
WHEREAS, the Winship Sian L Trust are the owners of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 640-210-022, located at 72541 El Paseo, Unit 1004, in the City of Palm Desert, California; and
WHEREAS, the City and the Owners, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and
WHEREAS, the City Council conducted a meeting in the Council Chamber of City Hall, 73510 Fred Waring Drive, Palm Desert, California, on December 12, 2024, for the purpose of considering approval of the historic property preservation agreement, and has duly considered all evidence and testimony of the applicant and interested parties, and the evaluation and recommendation by staff, present at said hearing; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) Environmental Resources Element Program 6.9.4 and 6.9.5 states that the City will require sites with significant cultural resources and structures to be preserved.
195
b) The subject property, located at 72541 El Paseo, Unit 1004, has been recognized as a historic asset in the community by its designation as a Contributing Asset to a Historic District by the City Council by Resolution No. 2017-30 on March 23, 2017. As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies 6.9.4 and 6.9.5 of the Environmental Resources Element.

SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the Mills Act Agreement between the City of Palm Desert and the Owner of the Historic Property Located at 72541 El Paseo, Unit 1004, to be entered into by the City and the property owners, Winship Sian L Trust.

SECTION 6. Effective Date. This Resolution shall become effective immediately upon its adoption.

ADOPTED ON _______________.

KARINA QUINTANILLA
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
196

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:
(SEAL)
_________________________
ANTHONY J. MEJIA

CITY CLERK
197
198

APPENDIX C
Recording Requested by: )
When Recorded Mail to: )
)

CITY OF PALM DESERT )
73-510 Fred Waring Drive )
Palm Desert, CA 92260 )
)
Attention: Cultural Resources )
Administrator )
)
)
)
(Space above for Recorder’s Office)

HISTORIC PROPERTY PRESERVATION AGREEMENT
(“MILLS ACT CONTRACT”)
between

THE CITY OF PALM DESERT
a California municipal corporation
and

WINSHIP SIAN L TRUST
Owner(s) of the property located at
72541 EL PASEO 1004, PALM DESERT CA, 92260
APN 640-210-022
199

RECITALS

2. Owner holds fee title to that certain real property, together with associated structures and improvements thereon, generally located at
72541 El Paseo, #1004 within the City of Palm Desert, California (“Historic Property”). A legal description of the Historic Property is attached hereto as Exhibit “A,” and incorporated herein by this reference; and

3. On March 23, 2017, the City Council designated the Historic Property as a historic resource, pursuant to the terms and provisions of Title 29 of the Palm Desert Municipal Code; and

TERMS
NOW, THEREFORE, the City and Owner, in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows:
200

APPENDIX C

1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on , 20 (“Effective Date”), and shall remain in effect for a term of ten (10) years thereafter.

5. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions:

APPENDIX C
Desert Municipal Code), and shall obtain any and all applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property, so as to maintain its historical and cultural significance.

D. Owner shall not be permitted to block the view corridor with any new structure such as walls, fences or shrubbery, so as to prevent the view of the Historic Property from the public right-of-way.

8. Breach of Agreement; Remedies.

A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified 202

APPENDIX C
mail, detailing Owner’s violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City’s declaration of Owner’s breach of this Agreement, City may pursue any and all remedies available pursuant to local, state, or federal law, including those specifically provided for in this section.

10. Waiver. City does not waive any claim of default by Owner, if City does not enforce 203

APPENDIX C
or terminate this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City’s regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder.

City: City of Palm Desert
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260
Owner:

14. Effect of Agreement. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto or any of their heirs, 204

APPENDIX C
successors or assigns, nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise.

APPENDIX C

20. Amendments. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto.

APPENDIX C
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written.

Dated: CITY OF PALM DESERT
By
ATTESTED TO:

By
Dated: ____________________ Owner
,Owner
,Owner

APPROVED AS TO FORM
City Attorney
207

STATE OF CALIFORNIA )
)ss

WITNESS my hand and official seal.

Notary Signature
208

APPENDIX C

EXHIBIT A

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

PARCEL 1:

LOT 20 OF TRACT 2659, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 47 PAGES 17 AND 18 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL 2:

AN UNDIVIDED ONE-SIXTEENTH INTEREST IN AND TO LOT 33 OF SAID TRACT 2659, FOR RECREATION PURPOSES AND THE FACILITIES THEREFOR.

PARCEL 3:

AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER A 20.00 FOOT ACCESS EASEMENT OVER LOTS 33 AND 34 OF SAID TRACT 2659 AS SOHWN ON THE

RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL 1.

APN: 640-210-022
209

APPENDIX C

EXHIBIT B

MINIMUM STANDARDS AND CONDITIONS FOR

MAINTENANCE, USE, PROTECTION, AND PRESERVATION

OF HISTORIC PROPERTY

3. The Historic Property shall not have non-operational vehicles or portions of them in public view.

4. The Historic Property Shall not have stagnant or standing water.

5. The Historic Property Shall not have overgrown or decaying landscaping. All landscape features should be maintained including, but not limited to, grass, trees, and any plantings.

6. The Historic Property shall prominently display and properly maintain its City Landmark plaque.
210

APPENDIX C

EXHIBIT C

EXTERIOR PHOTOGRAPHS OF HISTORIC PROPERTY
211
1004 SANDPIPER

FRONT (ENTRANCE) ELEVATION - LOOKING SOUTHWEST
1004 SANDPIPER STREET PHOTOGRAPHS
212
1004 SANDPIPER
1004 SANDPIPER STREET

EAST ELEVATION - ENTRY

EXTERIOR ELEVATIONS

NORTH ELEVATION

SOUTH ELEVATION
213
1004 SANDPIPER

LOOKING NORTHWEST

INTERIOR PHOTOGRAPHS - ATRIUM

LOOKING SOUTHEAST

LOOKING WEST

EXPOSED WOOD RAFTERS
214
1004 SANDPIPER

LOOKING WEST

INTERIOR PHOTOGRAPHS - ATRIUM

LOOKING EAST

LOOKING SOUTH
LOOKING NORTH NORTHWEST 215
1004 SANDPIPER

MOISTURE DAMAGE TO WOOD RAFTERS

INTERIOR PHOTOGRAPHS - ATRIUM

STRUCTURAL FRAMING CONCERNS

DAMAGED WOOD RAFTERS

RE-ROUTE REFRIGERANT LINES, REMOVE FROM ATRIUM, RESTORE GRILL 216
1004 SANDPIPER

LOOKING EAST

INTERIOR PHOTOGRAPHS - LIVING ROOM

LOOKING NORTHEAST

LOOKING NORTHWEST

LOOKING NORTHWEST
217
1004 SANDPIPER

LOOKING EAST

INTERIOR PHOTOGRAPHS - LIVING ROOM

LOOKING SOUTH

LOOKING WEST

LOOKING SOUTHEAST
218
1004 SANDPIPER

INTERIOR PHOTOGRAPHS - LIVING ROOM
REMOVE WALL OF SLIDING WOOD SHUTTERS, REPAIR/REPAINT REMOVE MIRRORS, RESTORE EXPOSED BLOCK SIM. TO EXTERIOR WALL 219
1004 SANDPIPER

INTERIOR PHOTOGRAPHS - LIVING ROOM

CEILING REPAIR PLASTER REPAIR CEILING & PLASTER REPAIR
220
1004 SANDPIPER

LOOKING NORTH

INTERIOR PHOTOGRAPHS - KITCHEN

LOOKING SOUTHWEST

LOOKING NORTH

LOOKING NORTHWEST
221
1004 SANDPIPER

LOOKING NORTH

INTERIOR PHOTOGRAPHS - KITCHEN

LOOKING EAST

SKYLIGHT
222
1004 SANDPIPER

INTERIOR PHOTOGRAPHS - KITCHEN

LOOKING NORTHWEST LOOKING WEST LOOKING SOUTHWEST
223
1004 SANDPIPER

INTERIOR PHOTOGRAPHS - KITCHEN

REPAIR/RESTORE ORIGINAL CABINETS REMOVE NON-ORIGINAL KITCHEN FLOOR REPAIR/RESTORE ORGINAL LAMINATE 224
1004 SANDPIPER

LOOKING EAST

INTERIOR PHOTOGRAPHS - PRIMARY BEDROOM

LOOKING SOUTH

LOOKING WEST

LOOKING NORTH
225
1004 SANDPIPER

REMOVE WALL FRAMING & DRYWALL, RESTORE EXPOSED BLOCK WALL INTERIOR

INTERIOR PHOTOGRAPHS - PRIMARY BEDROOM

REPAIR PLASTER
226
1004 SANDPIPER

LOOKING EAST

INTERIOR PHOTOGRAPHS - PRIMARY BATHROOM

LOOKING WEST

VANITY FLOORING
227
1004 SANDPIPER

LEAK INVESTIGATION, REPAIR, WALL REPAIR

INTERIOR PHOTOGRAPHS - PRIMARY BATHROOM DETAILS

RESTORE SHOWER TILE
RESTORE SHOWER ENCL. SHOWER DETAIL
228
1004 SANDPIPER

CLERESTORY WALL REPAIR WEST

INTERIOR PHOTOGRAPHS - PRIMARY BATHROOM DETAILS

CLERESTORY WALL REPAIR EAST
229
1004 SANDPIPER

LOOKING EAST
INTERIOR PHOTOGRAPHS - BEDROOM 2

LOOKING WEST

LOOKING SOUTH LOOKING NORTH
230
1004 SANDPIPER

LOOKING NORTHEAST
INTERIOR PHOTOGRAPHS - BATHROOM 2

TILE & GROUT REPAIR

RESTORE & RESET ORIGINAL SHOWER DOORS & TRACK
TILE & GROUT REPAIR 231
1004 SANDPIPER
INTERIOR PHOTOGRAPHS - BATHROOM 2

TILE & WALL REPAIR TILE & WALL REPAIR
232
1004 SANDPIPER

LOOKING SOUTHEAST

EXTERIOR PHOTOGRAPHS - SOUTH PATIO

LOOKING WEST

LOOKING SOUTHEAST LOOKING NORTH
233
1004 SANDPIPER

SOUTH ELEVATION VIEW OF MISSING BREEZE BLOCK

SOUTH PATIO DETAILS

VIEW OF MISSING/DAMAGED BREEZE BLOCK FROM PATIO

ORIGINAL DISPLACED AND DAMAGED BREEZE BLOCK
TO BE REPAIRED & RE-INSTALLED IN-KIND 234
1004 SANDPIPER

LOOKING NORTH

EXTERIOR PHOTOGRAPHS - NORTH PATIO

LOOKING WEST

LOOKING WEST DETAIL
235
1004 SANDPIPER

LOOKING NORTH

EXTERIOR PHOTOGRAPHS - NORTH PATIO
DETAIL

LOOKING EAST DETAIL
236
1004 SANDPIPER

NORTH & SOUTH PATIO RESTORATION

RESTORE MISSING ORIGINAL PLANTER IN NORTH PATIO REMOVE NON-ORIGINAL CERAMIC TILE IN BOTH NORTH & SOUTH PATIOS

RESTORE ORIGINAL FLOOR FINISH

NORTH PATION PLAN SHOWING LOCATION OF PLANTERS TO BE RESTORED 237
1004 SANDPIPER

PLASTER DAMAGE UNDER WEST SLIDING DOOR

NORTH PATIO DETAILS

PLASTER DAMAGE AT EAST PATIO

PLASTER DAMAGE UNDER WEST SLIDING DOOR
PLASTER DAMAGE UNDER EAST SLIDING DOOR 238
1004 SANDPIPER

LOOKING NORTHWEST

EXTERIOR PHOTOGRAPHS - LAUNDRY ROOM

INVESTIGATE POTENTIAL WATER ISSUES, REPAIR DAMAGED MATERIALS WATER INFILTRATION CONCERNS, REPAIR DAMAGED MATERIALS WATER INFILTRATION CONCERNS 239 1004 SANDPIPER

ORIGINAL ROOF REQUIRES COMPLETE REPLACEMENT
ROOF

ROOF MASTIC DAMAGED OR MISSING

SEVERELY DAMAGED ORIGINAL ROOF COATING
IMPROPERLY INSTALLED FLASHING 240
1004 SANDPIPER

ROOF DAMAGE

ROOF DETAILS

ROOF DAMAGE

ROOF DAMAGE
SKYLIGHT REPAIR 241
1004 SANDPIPER

REPLACE RECEPTACLES WITH GROUNDED (TYPICAL THROUGHOUT)

ELECTRICAL REPAIRS

REPLACE NON-WORKING STOVE HOOD/EXHAUST FAN

DANGEROUS MAIN ELECTRICAL PANEL SHOULD BE REPLACED
ADD ELECTRICAL BONDING TO INTERIOR PIPING 242
1004 SANDPIPER

REPLACE PLASTIC SUPPLY LINES (TYPICAL THROUGHOUT)

PLUMBING REPAIRS

REPLACE WATER HEATER PAN AND INSTALL DRAIN LINE

REPLACE ANGLE STOPS DUE TO AGE
REPLACE/REPAIR CONDENSATE DRAIN LINE 243
1004 SANDPIPER

SEAL LEAKING COIL PLENUM

PLUMBING/MECHANICAL REPAIRS

INSTALL MICROSWITCH TO SECONDARY CONDENSATE DRAIN LINE
REPLACE NON-COMPLIANT FLEXIBLE GAS SUPPLY REPLACE 40 YEAR OLD HEATING/AC CONDENSER 244 1004 SANDPIPER

RE-ROUTE & RE-INSULATE EXISTING REFRIGERANT LINES

PLUMBING/MECHANICAL REPAIRS

REPLACE DETERIORATED INSULATION ON REFIGERANT LINES
REPLACE NON-COMPLIANT VINYL DRYER VENT INSTALL EARTHQUAKE SHUT-OFF VALVE TO GAS LINE 245 1004 SANDPIPER

WINDOWS & DOORS

REPLACE DETERIORATED WINDOW FILM (TYPICAL THROUGHOUT)

RESTORE ORGINAL ALUMINUM SLIDERS
(TYPICAL FOR ALL SLIDING DOORS)
FABRICATE MISSING SCREENS FOR LIVING ROOM SLIDING DOORS 246 1004 SANDPIPER

PLASTER REPAIR

EXTERIOR PLASTER

REMOVE REFRIGERANT LINES, REPAIR PLASTER
PLASTER REPAIR PLASTER REPAIR 247

APPENDIX C

EXHIBIT D

PENDING AND REQUIRED PROJECTS FOR HISTORIC PROPERTY
248
8 10-Year Property Improvement Plan
For sample projects qualifying under the Mills Act see Appendix “A”. Attach additional sheets if necessary.

Year Proposed Project Estimated Cost
1 2
3 4
5 6
7 8
9 10
This schedule will be attached as an exhibit to the Historic Property Preservation Agreement (Mills Act Contract). It may be revised or updated by mutual consent of the property owner(s) and the Cultural Resources Administrator in the Department of Building and Safety.

All projects that affect the exterior of the property are subject to review and approval by the Cultural Resources Administrator and/or the Cultural Resources Preservation Committee before work begins. Work must meet all City requirements and the Secretary of the Interior’s Standards for Rehabilitation (Appendix B).

BREEZE BLOCK: IN-KIND (SAME MATERIAL, DESIGN, SIZE AND SHAPE) REPAIR IN-KIND ROOF REPLACEMENT: TEAR-OFF & INSTALL IN-KIND NEW ROOF & FLASHING

IN-KIND REPAIR/REFURBISH SKYLIGHTS
EXPOSED WOOD RAFTERS DRY ROT: IN-KIND REPAIR/REPLACE STRUCTURAL FRAMING INSULATION: INSTALL UV/SOLAR FILM TO GLASS, THROUGHOUT
PLUMBING: CLEAR DRAIN, WASTE, & VENT LINES (DWV)
ELECTRICAL: COMPLETE REWIRE & SERVICE UPGRADE
ELEC. BONDING

REPLACE OULETS THROUGHOUT, UPGRADE TO GROUNDED
NORTH & SOUTH PATIO RESTORATION: DEMO CERAMIC TILE, RESTORE

ORIGNAL PLANTERS & PATIO FLOOR FINISHES
DOOR REPAIR: REFURBISH EXISTING SLIDING DOORS & WINDOWS, THROUGHOUT PLUMBING: SERVICE/REFURBISH SEPTIC SYSTEM

REPLACE WATER HEATER (TANKLESS)
REPLACE ALNGLE STOPS, VINYL SUPPLY LINES, ETC.

RECOAT FOAM ROOF CAP SHEET (IN-KIND, SAME MATERIAL AS ORIGINAL) I MECHANICAL: REMOVE & INSTALL COMPLETE NEW SYSTEM

AIR CONDITIONING, HEATING UNIT

RE-ROUTE REFRIGERANT LINES, RESTORE FINISHES

CLEAN VENTILATION & DUCTWORK
$5,500
$4,000
$12,000
$1,000
$3,500
$10,000
$5,000
$10,000
$7,500
$3,000
$7,000
$25,000
$2,500
$30,000
$3,500
$15,000
RECOAT FOAM ROOF CAP SHEET (IN-KIND, SAME MATERIAL AS ORIGINAL) $7,000 249
250
RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,

CALIFORNIA, APPROVING A MILLS ACT AGREEMENT BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 45666

SHADOW MOUNTAIN DRIVE
CASE NOS. MILLS24-0002
WHEREAS, the City Council of the City of Palm Desert is authorized by California Government Code § 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and WHEREAS, the City Council of the City of Palm Desert has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance, and rehabilitation of historic resources through financial incentives; and WHEREAS, the City Council of the Palm Desert has designated this property as a historic resource of the City of Palm Desert pursuant to the policies in the Title 29 of the Palm Desert Municipal Code; and
WHEREAS, Andrew Stearn is the owner of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 640-293-003, located at 45666 Shadow Mountain Drive, in the City of Palm Desert, California; and
WHEREAS, the City and the Owners, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and
WHEREAS, the City Council conducted a meeting in the Council Chamber of City Hall, 73510 Fred Waring Drive, Palm Desert, California, on December 12, 2024, for the purpose of considering approval of the historic property preservation agreement, and has duly considered all evidence and testimony of the applicant and interested parties, and the evaluation and recommendation by staff, present at said hearing; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) Environmental Resources Element Program 6.9.4 and 6.9.5 states that the City will require sites with significant cultural resources and structures to be preserved.
251
b) The subject property, located at 45666 Shadow Mountain Drive has been recognized as a historic landmark by the City Council by Resolution No. 2023- 51 on October 26, 2023. As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies 6.9.4 and 6.9.5 of the Environmental Resources Element.

SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the Mills Act Agreement between the City of Palm Desert and the Owner of the Historic Property Located at 45666 Shadow Mountain Drive, to be entered into by the City and the property owners, Andrew Stearn.

SECTION 6. Effective Date. This Resolution shall become effective immediately upon its adoption.

ADOPTED ON _______________.

KARINA QUINTANILLA
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
252

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:
(SEAL)
_________________________
ANTHONY J. MEJIA

CITY CLERK
253
254

APPENDIX C
Recording Requested by: )
When Recorded Mail to: )
)

CITY OF PALM DESERT )
73-510 Fred Waring Drive )
Palm Desert, CA 92260 )
)
Attention: Cultural Resources )
Administrator )
)
)
)
(Space above for Recorder’s Office)

HISTORIC PROPERTY PRESERVATION AGREEMENT
(“MILLS ACT CONTRACT”)
between

THE CITY OF PALM DESERT
a California municipal corporation
and
Andrew Stearn

Owner(s) of the property located at
45666 Shadow Mountain Drive
APN 640-293-003 ---------
255

RECITALS

2. Owner holds fee title to that certain real property, together with associated structures and improvements thereon, generally located at 45666 Shadow Mountain Drive within the City of Palm Desert, California (“Historic Property”). A legal description of the Historic Property is attached hereto as Exhibit “A,” and incorporated herein by this reference; and

3. On October 26, 2023 the City Council designated the Historic Property as a historic resource, pursuant to the terms and provisions of Title 29 of the Palm Desert Municipal Code; and

TERMS
NOW, THEREFORE, the City and Owner, in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows:

1. Effective Date and Term of Agreement. This Agreement shall be effective and 256

APPENDIX C
commence on December 12, 2024 (“Effective Date”), and shall remain in effect for a term of ten (10) years thereafter.

5. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions:

APPENDIX C
necessary to protect, preserve, restore, and rehabilitate the Historic Property, so as to maintain its historical and cultural significance.

D. Owner shall not be permitted to block the view corridor with any new structure such as walls, fences or shrubbery, so as to prevent the view of the Historic Property from the public right-of-way.

8. Breach of Agreement; Remedies.

10. Waiver. City does not waive any claim of default by Owner, if City does not enforce or terminate this Agreement. All other remedies at law or in equity which are not otherwise 259

City: City of Palm Desert
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260
Owner: Andrew Stearn
1841 Wellington Road
Los Angeles, CA 90019

14. Effect of Agreement. None of the terms, provisions or conditions of this Agreement 260

APPENDIX C

20. Amendments. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto.

APPENDIX C
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written.

Dated: CITY OF PALM DESERT
By
ATTESTED TO:

By
Dated: ____________________ Owner
,Owner
,Owner

APPROVED AS TO FORM
City Attorney
263

STATE OF CALIFORNIA )
)ss

WITNESS my hand and official seal.

Notary Signature
264

APPENDIX C

EXHIBIT A

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

Lot 29 in Block D-6 of Palm Desert Unit No. 6 in the City of Palm Desert, County of Riverside, State of California, as per map recorded in Book 24, Page(s) 28 and 29 of Maps in the Office of the County Recorded of Riverside County
APN: 640-293-003
265

APPENDIX C

EXHIBIT B

MINIMUM STANDARDS AND CONDITIONS FOR

MAINTENANCE, USE, PROTECTION, AND PRESERVATION

OF HISTORIC PROPERTY

3. The Historic Property shall not have non-operational vehicles or portions of them in public view.

4. The Historic Property Shall not have stagnant or standing water.

5. The Historic Property Shall not have overgrown or decaying landscaping. All landscape features should be maintained including, but not limited to, grass, trees, and any plantings.

6. The Historic Property shall prominently display and properly maintain its City Landmark plaque.
266

APPENDIX C

EXHIBIT C

EXTERIOR PHOTOGRAPHS OF HISTORIC PROPERTY
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289

APPENDIX C

EXHIBIT D

PENDING AND REQUIRED PROJECTS FOR HISTORIC PROPERTY
Year Proposed Project Estimated Cost
1 Electrical – complete require, service and upgrade $11,000 2 Door – Replace exterior historic door $10,000
3 Window – repair and/or replace front exterior windows + sliding glass door
$15,000
4 Painting – exterior of house $13,000
5 Interior trim – refinish per historical report, beams need to be refurbished
$7,500
6 HVAC – maintenance/repair and possible replacement $10,000-$35,000 7 Pluming – upgrade system $5,000-$20,000
8 Weather proofing (windows, doors) $2,500-$6,000
9 Patch repair roof $20,000-$30,000
10 Repair and update contributing swimming pool and landscaping $20,000 290

Page 1 of 2 ends

PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: December 12, 2024
PREPARED BY: Celina Cabrera, Management Analyst
SUBJECT: REJECT ALL PROPOSALS SUBMITTED FOR POOL, SPA, AND WATER

FEATURE MAINTENANCE AND REPAIR AT HOUSING AUTHORITY

PROPERTIES
RECOMMENDATION:

1. Reject all proposals submitted for Pool, Spa, and Water Feature Maintenance and Repair at Housing Authority Properties.

2. Authorize staff to resolicit and advertise for pool and water feature maintenance and repair services at the Palm Desert Housing Authority residential rental properties.

BACKGROUND/ANALYSIS:

The Palm Desert Housing Authority currently has a Pool, Spa, and Water Feature Maintenance and Repair Agreement with Service First, Inc., for an annual cost of $138,573.11. The agreement expires on December 31, 2024.

Staff released a request for proposal for Pool, Spa, and Water Feature Maintenance and Repair on October 16, 2024, on the City of Palm Desert’s online bid management provider, OpenGov, as well as in the Desert Sun newspaper. Responses were due on November 19, 2024. Only one proposal was received.

Proposer Proposed Annual Amount
Service First, Inc. $380,818.44
The proposal submitted is nearly three times the current annual contract amount, making it unfeasible for the affordable housing budget. Qualified proposers must be available for daily maintenance service, respond within two hours in an emergency, be registered with the Department of Industrial Relations, hold a C-53 pool contractor license, and pay prevailing wage on repairs.

The Housing Authority will republish the request for proposal. In the interim, local qualified companies are being contacted to submit quotes for service to ensure no interruption with the legally required maintenance and service on the commercial pools, spas, and water feature at Authority properties.

Legal Review:

This report has been reviewed by the City Attorney’s Office. 291
Palm Desert Housing Authority
Reject Pool, Spa, and Water Feature Maintenance and Repair Proposals

Page 2 of 2 ends

Appointed Body Recommendation:

The Housing Commission will review this recommendation at its regular meeting on December 11, 2024. Upon request, a verbal report will be provided at the Authority’s regular meeting on December 12, 2024.

FINANCIAL IMPACT:

There is no direct fiscal impact related to this action except staff’s time to resolicit and the cost to advertise for pool and water feature maintenance and repair services at the Palm Desert Housing Authority residential rental properties. Funds for the contract are budgeted in the Housing fund. There is no impact to the General fund.
292

Page 1 of 2 ends

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: December 12, 2024
PREPARED BY: Shelby Goodwin, Special Events Coordinator SUBJECT: APPROVAL OF THE 2025 USA WOMEN’S MARATHON & HALF

MARATHON
RECOMMENDATION:

1. Temporary waiver of Palm Desert Municipal Code (PDMC) sections:
a. 11.01.20 (Hours of Use in City Parks)
b. 11.01.140 (Amplified Sound in City Parks)
c. 11.01.080.O (Placement of Advertising Signage in City Parks) d. 11.01.080 Q (Vendor Sales in City Parks)
e. 11.01.080 W (Possession/Consumption of Alcohol in City Parks) pursuant to PDMC

9.58.040

2. Authorize the City Manager to execute any documents that may be necessary to facilitate the event.

BACKGROUND/ANALYSIS:

The USA Women’s Marathon and Half Marathon is scheduled to take place on Saturday, January 11, 2025, in Palm Desert. The event will start and end at the Palm Desert Civic Center Park where pre- and post-event activities will take place. Such activities include prerecorded music, an awards ceremony, and a lifestyle expo focusing on recreation and fitness. In addition, champagne mimosas will be available in a gated area that will require a permit from the Department of Alcohol and Beverage Control.

This marks the return of the USA Women's Marathon and Half Marathon to Palm Desert after the last event in 2019. Although organizers planned a 2020 event, it was canceled due to the COVID-19 pandemic. USA Endurance Events, which hosts similar luxury running events in Florida, Tennessee, Arizona, and Texas, is the event organizer.  Marathon & Half Marathon Course: The marathon course will begin and end at the Palm Desert Civic Center Park and will require full closure of San Pablo from Fred Waring to Magnesia Falls, as well as a full closure of Magnesia Falls Drive from Portola Avenue to Monterey Avenue. The course will also require closure of the lane adjacent to the curb at the following locations: northbound Monterey Avenue from Magnesia Falls to Country Club, eastbound Country Club to Portola, southbound Oasis Club Drive to Hovley Lane East. From Hovely Ln. East to Civic Center Park, the westbound lane adjacent to the curb and the middle lane will be closed. The half marathon will cover this route once, while marathon participants will complete it twice. Note that this is the same course that was used in 2019 (previous traffic control plan attached for reference).
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City of Palm Desert
USA Women’s Marathon and Half Marathon

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 Public Safety: To ensure public safety, extensive police services will be in place along the course. Palm Desert Citizens on Patrol (COPS) will assist with volunteer support, helping offset some of the costs. Once the event is approved, staff will collaborate with the event producers, police, and fire departments to ensure the proper level of traffic control and public safety measures are implemented.
 Traffic Control/Impacts: Upon approval of the event, staff will work with the event producer and appropriate City departments to finalize a traffic control plan. Businesses and residents along the course will experience short periods of delayed access as runners pass through the area. However, where possible, the road closures and barricades along the course will allow residents/drivers to proceed with the assistance of designated public safety officers or COPS volunteers. In addition, traffic control cleanup will follow the last runner to ensure timely reopening of roads.

Legal Review:

This report has been reviewed by the City Attorney’s Office.

Strategic Plan:

Approval of the USA Woman’s Marathon & Half Marathon Event would impact the following priorities outlined in the 2013-2033 Strategic Plan, Envision Palm Desert – Forward Together:
 Parks and Recreation Priority 3: Make recreational and exercise opportunities available in all public spaces.
 Economic Development Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle.
 Tourism and Marketing Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination.

FINANCIAL IMPACT:

As part of the FY 2024/2025 Budget, the City Council approved a community event sponsorship in the amount of $5,000 for this event. Funds are available in Account Number 1104800- 4306201. All other costs associated with the event will be the responsibility of the organizer.

ATTACHMENT:

1. 2019 Traffic Control Plan (for reference)
294
295
USA Women’s Half & Full Marathon USA Endurance Events Tops N Barricades, Inc. (800)852-TOPS XX 6/17/19 2 of 3 Ron Fifield Pending Lee Ann 619-368-9944 296
USA Women’s Half & Full Marathon
USA Endurance Events
Tops N Barricades, Inc. (800)852-TOPS XX 6/18/19 3 of 3 Ron Fifield
Pending
Lee Ann 619-368-9944
297
298

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: December 12, 2024
PREPARED BY: Veronica Chavez, Director of Finance
Skky Garcia, Management Analyst
SUBJECT: RESOLUTIONS AUTHORIZING THE CITY MANAGER TO EXECUTE

AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND

FEE ADMINISTRATION FOR THE IMPLEMENTATION OF A LOCAL

TRANSACTIONS AND USE TAX AND THE AUTHORIZATION OF

EXAMINATION OF RECORDS
RECOMMENDATION:

1. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM DESERT, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE

AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND FEE

ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX.”

2. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY OF PALM DESERT

AUTHORIZING EXAMINATION OF SALES AND TRANSACTIONS AND USE TAXES RECORDS.”
BACKGROUND/ANALYSIS:

On June 13, 2024, the City Council unanimously adopted Resolution No. 2024-031, calling for the placement of a general tax measure on the ballot for the November 5, 2024, General Municipal Election. The ballot measure, identified as Measure G, proposed a one cent (1ȼ) general transaction and use tax (sales tax). According to the certified results from the Riverside County Registrar of Voters, Measure G was approved by a majority of votes cast in Palm Desert.

On December 12, 2024, the City Council is anticipated to adopt a resolution reciting the facts of the General Municipal Election and declaring the results based on the Riverside County Registrar’s Official Canvass Certificate and Official Statement of Votes Cast for Palm Desert.

Following the declaration of election results, the sales tax will become operative on April 1, 2025, and will remain in effect until repealed by voters.

Measure G provides that prior to the sales tax operative date, the City must contract with the California Department of Tax and Fee Administration (“Department”) to administer and operate the sales tax ordinance. The City is required to execute the Department’s agreement package and other pertinent forms.

While some components of the agreement package can be processed administratively by staff, City Council approval is required for the following:
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City of Palm Desert
Execution of CDTFA Agreements – Local Transactions and Use Tax

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1. Resolution Authorizing the City Manager to Execute the Department Agreements The resolution includes the following two exhibits:
 Exhibit 1: Preparatory Agreement
This agreement outlines the preparatory work required to administer the sales tax, including developing procedures, programming for data processing, designing forms, training staff, and other necessary tasks. Preparatory costs, as outlined in Revenue and Taxation Code Section 7272, are capped at $175,000 and include both direct and indirect expenses.
 Exhibit 2: Administrative Agreement
This agreement authorizes the Department to exclusively perform all functions related to the administration and operation of the sales tax ordinance. The Department will collect and transmit the tax revenue to the City, deducting administrative costs as specified by law.

2. Resolution Authorizing Examination of Confidential Tax Records This resolution designates authorized personnel, including the City Manager, Assistant City Manager, Finance Director, and the City’s consultant, Avenu Insights & Analytics, LLC (AKA Muniservices, LLC), to examine confidential sales tax records maintained by the Department.

This authorization complies with Revenue and Taxation Code Section 7056.

Once the resolutions are adopted and agreements executed, the Department will proceed with implementing the sales tax on the City’s behalf. The sales tax is scheduled to become operative on April 1, 2025.

Spending Priorities and Transparency
Measure G funds will serve as a critical resource to support identified priorities, ensuring continued investment in public safety, infrastructure, and essential services. The City Council has previously adopted a Five-Year Spending Plan and Priorities (Resolution No. 2024-034), which provides a framework for how these revenues will be allocated.

The spending plan highlights the City’s commitment to transparency and accountability by prioritizing investments in the following areas:

Public Safety
o Fire prevention and emergency response, including construction and rehabilitation of fire stations and staffing enhancements.
o Additional sworn law enforcement officers and technology upgrades to support proactive crime prevention and traffic enforcement.

Infrastructure Improvements
o Flood control measures, retention basin enhancements, and citywide facility maintenance.
300
City of Palm Desert
Execution of CDTFA Agreements – Local Transactions and Use Tax

Page 3 of 3 ends

Parks and Recreation
o Development of the North Sphere Regional Park.
o Completion of the Palm Desert Library construction project.

Financial Stability
o Replenishment of emergency and operational reserves to ensure resilience during unforeseen events.

The City remains committed to the responsible administration of Measure G revenues. Updates on the implementation of spending priorities will be provided regularly to the City Council, Finance Committee, and the community. These updates will include reports on expenditures, progress on approved projects, and outcomes of related initiatives. Additionally, all expenditures will undergo annual audits to confirm compliance with the Five-Year Spending Plan and ensure alignment with the community’s priorities.

FINANCIAL IMPACT:

Approval of these resolutions will enable the collection of sales tax, which is estimated to generate $25 million annually.

ATTACHMENTS:

1. Draft Resolution – Department Agreements
a. Exhibit A - Preparatory Agreement
b. Exhibit B - Administrative Agreement

2. Draft Resolution – Examination of Records
301
302
RESOLUTION NO. 2024-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM

DESERT, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO

EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF

TAX AND FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL

TRANSACTIONS AND USE TAX
WHEREAS, on December 12, 2024, the City Council approved Ordinance No. 1424 amending the City Municipal Code and providing for a local transactions and use tax: and
WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and
WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes, and WHEREAS, the Department requires that the City Council authorize the agreements:

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:

SECTION 1. Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement.

ADOPTED ON DECEMBER 12, 2024.

KARINA QUINTANILLA
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
303
Resolution No. 2024-____ Page 2
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 _______________________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________.

ANTHONY J. MEJIA

CITY CLERK
304

EXHIBIT A
(Rev. 07/24) 2

AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE

CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Palm Desert, California, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:

1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.

2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.

These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.

3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.

4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.

5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance.

City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. 305

EXHIBIT A
(Rev. 07/24) 2

6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)

7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail. Communications and notices to be sent to the Department shall be addressed to:

California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:

City of Palm Desert
Attention: City Manager & City Clerk
73510 Fred Waring Drive
Palm Desert, CA 92260

8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.

CITY OF PALM DESERT CALIFORNIA DEPARTMENT OF TAX

AND FEE ADMINISTRATION
By_________________________________ By _________________________________ (Signature) Administrator
Local Revenue Branch
Todd Hileman Date: _______________________________
City Manager
Date: _______________________________
306

EXHIBIT B
(Rev. 7/24) 1

AGREEMENT FOR STATE ADMINISTRATION

OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Palm Desert has adopted, and the voters of the City of Palm Desert (hereafter called “City” or “District”) have approved by the required majority vote, the City of Palm Desert Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:

ARTICLE I

DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:

1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.

2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 1424, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.

ARTICLE II

ADMINISTRATION AND COLLECTION

OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance. 307

EXHIBIT B
(Rev. 7/24) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.

C. Transmittal of money.

1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.

2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.

3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.

D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.

E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear. 308

EXHIBIT B
(Rev. 7/24) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears.

The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.

G. Records of the Department.

When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.

H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.

ARTICLE III

ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:

1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion 309

EXHIBIT B
(Rev. 7/24) 4
of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.

2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.

B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.

ARTICLE IV

COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.

ARTICLE V

MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.
310

EXHIBIT B
(Rev. 7/24) 5
Communications and notices to be sent to the Department shall be addressed to:

California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:

City of Palm Desert
Attn: City Manager
73510 Fred Warning Drive
Indio, CA 92260
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.

B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April 1, 2025. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.

C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. 311

EXHIBIT B
(Rev. 7/24) 6

ARTICLE VI

ADMINISTRATION OF TAXES IF THE

ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.

1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.

2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.

B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:

1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.

2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.

3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.

4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing 312

EXHIBIT B
(Rev. 7/24) 7
the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.

5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.

6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.

7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.

CITY OF PALM DESERT CALIFORNIA STATE DEPARTMENT OF

TAX AND FEE ADMINISTRATION
By_________________________________ By
(Signature) Administrator
Local Revenue Branch
Todd Hileman Date: _______________________________
City Manager
(Date)
313
314
RESOLUTION NO. 2024-____

A RESOLUTION OF THE CITY OF PALM DESERT AUTHORIZING

EXAMINATION OF SALES OR TRANSACTIONS AND USE TAXED

RECORDS
WHEREAS, pursuant to Ordinance Number 1424 of City of Palm Desert (District), and Revenue and Taxation Code section 7270, the District entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and
WHEREAS, the Board of the District deems it desirable and necessary for authorized officers, employees and representatives of the District to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the District pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department; Now, therefore, the board of the district of City of Palm Desert hereby resolves as follows:

Section 1. That the City Manager, Assistant City Manager and Finance Director, or other officer or employee of the District designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the District with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the District by the Department pursuant to the contract between the District and the Department.

Section 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of District transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the District:
(a) Budget Planning
(b) Economic Development
(c) Transportation Planning
315
Resolution No. 2024-____ Page 2
The information obtained by examination of Department records shall be used only for those governmental functions of the District listed above.

Section 3. That Avenu Insights & Analytics, LLC (AKA Muniservices, LLC) is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the District by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the District and the Muniservices, LLC:
a) has an existing contract with the District to examine those sales or transactions and use tax records;
b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information. c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

NOW, THEREFORE, BE IT RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of District transactions and use taxes by the Department pursuant to the contract between the District and the Department [and for those purposes relating to the governmental functions of the District listed in section 2 of this resolution.

Section 5. That this resolution supersedes all prior resolutions of the Board of the District adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.

INTRODUCED, APPROVED AND ADOPTED ON DECEMBER 12,2024.

KARINA QUINTANILLA
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
316
Resolution No. 2024-____ Page 3
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 _______________________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________.

ANTHONY J. MEJIA

CITY CLERK
317
318

Page 1 of 1 ends

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: December 12, 2024
PREPARED BY: Shawn Muir, Community Services Manager
SUBJECT: ACCEPT THE PALMA VILLAGE PARK IMPROVEMENTS AS

COMPLETE, AND AUTHORIZE THE CITY CLERK TO FILE THE NOTICE OF COMPLETION (PROJECT NO. MPK00007)
RECOMMENDATION:

1. Accept Contract No. C47470 for the Palma Village Park Improvements, Project No.

MPK00007, as completed in accordance with the plans and specifications.

2. Authorize the Mayor to execute and the City Clerk to file the Notice of Completion.

BACKGROUND/ANALYSIS:

On April 25, 2024, the City Council awarded Contract No. C47470 to Western State Builders, Inc., in the amount of $381,437, with an additional $78,000 contingency, to construct improvements at Palma Village Park.

Work commenced on October 21, 2024, and the following new improvements were made at Palma Village Park:
 Park Furnishings (3 picnic tables, 8 benches, 2 trash receptacles, 1 BBQ grill, 1 drinking fountain and 1 shade structure)
 Landscaping, hardscaping, and irrigation system
 Concrete pavement
On December 2, 2024, City staff conducted a final inspection with the contractor and confirmed that the project had been completed in accordance with the contract requirements.

Legal Review:

This report has been reviewed by the City Attorney’s Office.

FINANCIAL IMPACT:

There is no further financial impact associated with this action. The unused contingency funds in the amount of $78,000 will be returned to the Capital Projects Fund Balance for reallocation.

ATTACHMENTS:

1. Notice of Completion

2. Vicinity Map
319
320
C:\Program Files\eSCRIBE\TEMP\19265662314\19265662314,,,01 Notice of Completion.docx To be recorded with the Riverside County Recorder
on or within 15 days after completion and acceptance by the City Council. NO RECORDING FEE PER
SECTION 6103 OF THE GOVERNMENT CODE.

APN 627-143-007 R/W NOTICE OF COMPLETION
(Cal. Civ. Code § 9200 et seq. – Public Works)
NOTICE IS HEREBY GIVEN:

1. That the interest or estate stated in paragraph 3 herein in the real property herein described is SOLELY OWNED by the CITY OF PALM DESERT, A MUNICIPAL CORPORATION, a political subdivision of the State of California, and whose address is 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA, 92260.

2. That the full name and address of the owner of said interest or estate is set forth in the preceding paragraph.

3. That the nature of the title of the stated owner, as set forth in paragraph 1, is FEE.

4. That on the 2nd day of December, 2024, work of improvement described as Palma Village Park Improvements, Project No. MPK00007 Contract No. C47470, on the real property herein described was completed.

5. That the name of the original contractor, if any, for said work of improvement was: Western State Builders, ,Inc.

6. That the real property herein referred to is situated in the City of Palm Desert, County of Riverside, State of California, and is described as Palma Village Park on San Carlos Avenue in Palm Desert, California, 92260.

CITY OF PALM DESERT

A MUNICIPAL CORPORATION
Date: By: _____________________________
Karina Quintanilla, Mayor

When recorded, return to:

Office of the City Clerk
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260

VERIFICATION
STATE OF CALIFORNIA }
} ss
COUNTY OF RIVERSIDE }
On , 2024, before me, Anthony J. Mejia, City Clerk of the City of Palm Desert, personally appeared Karina Quintanilla, Mayor of the City of Palm Desert, a Municipal Corporation, and acknowledged to me that the City of Palm Desert executed the same.
______________________
Anthony J. Mejia, City Clerk
Rev. February 2024
321
322
SAN
SAN

CARLOS AVE
SAN

PASCUAL
AVE

DE ANZA WAY
Copyright nearmap 2015
Palma Village Park Improvements Project
APN 627-143-009
Project No. MPK00007 I

VICINITY MAP
Palma Village Park
Improvements Project
APN 627-143-009
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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: December 12, 2024
PREPARED BY: Shawn Muir, Community Services Manager
SUBJECT: ACCEPT THE CIVIC CENTER DOG PARK IMPROVEMENTS PROJECT

AS COMPLETE, AND AUTHORIZE THE CITY CLERK TO FILE THE
NOTICE OF COMPLETION (PROJECT NO. CFA00011)
RECOMMENDATION:

1. Accept Contract No. C47580 with GameTime for the Civic Center Dog Park Improvements, Project No. CFA00011, as completed in accordance with the plans and specifications.

2. Authorize the Mayor to execute and the City Clerk to file the Notice of Completion.

BACKGROUND/ANALYSIS:

On May 23, 2024, the City Council awarded Contract No. C47580 to GameTime in the amount of $157,490, with an additional $20,000 contingency, to construct improvements at Civic Center Dog Park.

Work began on August 5, 2024, and the following new park furnishings were installed at Civic Center Dog Park:
 6 Concrete tables
 4 Drinking fountains
 1 Shade structure
During construction, Change Order No. 1 was issued in the amount of $12,549.66 for the installation of two additional drinking fountains and a deputy inspection for concrete footings and anchor bolts for the shade structure. The contract, plus one change order, totaled $170,039.66.

On November 26, 2024, City staff conducted a final inspection with the contractor and confirmed that the project had been completed in accordance with the contract requirements.

Legal Review:

This report has been reviewed by the City Attorney’s Office.

FINANCIAL IMPACT:

The unused contingency funds will be returned to the Capital Projects Fund Balance for reallocation. The table below outlines the unused Contingency funds.

GAMETIME TOTAL CONTRACT CONTINGENCY
5/23/2024 City Council Approval $157,490 $20,000
C/O 1 $12,549.66 ($12,549.66)
Completed Contract $170,039.66 $7,450.34
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City of Palm Desert
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ATTACHMENTS:

1. Notice of Completion

2. Vicinity Map
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C:\Program Files\eSCRIBE\TEMP\19271857434\19271857434,,,01 Notice of Completion(1).docx To be recorded with the Riverside County Recorder
on or within 15 days after completion and acceptance by the City Council. NO RECORDING FEE PER
SECTION 6103 OF THE GOVERNMENT CODE.

APN 622-250-014 R/W NOTICE OF COMPLETION
(Cal. Civ. Code § 9200 et seq. – Public Works)
NOTICE IS HEREBY GIVEN:

2. That the full name and address of the owner of said interest or estate is set forth in the preceding paragraph.

3. That the nature of the title of the stated owner, as set forth in paragraph 1, is FEE.

4. That on the 22nd day of November, 2024, work of improvement described as Civic Center Dog Pak Improvements, Project No. CFA00011 Contract No. C47580, on the real property herein described was completed.

5. That the name of the original contractor, if any, for said work of improvement was: GameTime of Fort Payne, Alabama.

6. That the real property herein referred to is situated in the City of Palm Desert, County of Riverside, State of California, and is described as Civic Center Dog Park on San Pablo in Palm Desert, California, 92260.

CITY OF PALM DESERT

A MUNICIPAL CORPORATION
Date: By: _____________________________
Karina Quintanilla, Mayor

When recorded, return to:

Office of the City Clerk
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260

PRIVATE RD
Copyright nearmap 2015
Civic Center Dog Park Improvements Project
Civic Center Dog Park
APN 622-250-014
Project No. CFA00011
I

VICINITY MAP
Civic Center Dog Park
Improvements Project
APN 622-250-014
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PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: December 11, 2024
PREPARED BY: Lucero Leyva, Senior Project Manager
SUBJECT: AWARD CONTRACT TO GARLAND/DBS, INC FOR THE SANTA ROSA ROOF REPLACEMENT PROJECT CHA00004
RECOMMENDATION:

1. Award the construction contract to Garland/DBS for the Santa Rosa Apartments Roof Replacement Project No. CHA00004 in an amount not to exceed $591,229.

2. Authorize the Director of Finance to set aside a 10% contingency in the amount of $59,122.90 for unforeseen conditions.

3. Authorize the Executive Director or designee to review and approve written requests for the use of the contingency amount.

4. Authorize the Chairperson and/or the Executive Director to execute the Agreement and any documents necessary to effectuate the actions taken herewith.

5. Authorize the Chairperson and/or Executive Director to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory completion of the Project.

BACKGROUND/ANALYSIS:

The Authority Board authorized the use of Garland/DBS, Inc. (“Garland”) for roof management assessment, repairs, and related services. Garland completed a roof assessment of Santa Rosa Apartments and found that the substrate and roof needed to be replaced. Garland is recommending the complete removal and replacement of the building’s roof, roof substrate, and wood fascia of all buildings at the Santa Rosa Apartments.

The existing roof is original from when the community was built in 1995 and staff agrees with the current conditions assessment and proposed recommendation from Garland. The proposed roof replacement includes a five (5) year installation warranty with the contractor and a ten (10) year manufacture warranty with Garland.

The Authority would like to enter into an agreement with Garland through the Omnia Contract No. PW1925 (A copy is on file with the City of Palm Desert’s City Clerk) to complete the proposed Project. Omnia is a cooperative purchasing organization, established through a collaborative effort to assist public agencies and non-profits across the United States with the specific purpose of reducing procurement costs by leveraging group volume. Omnia accomplishes this by soliciting proposals and awarding contracts that are held by a principal procurement agency for commonly purchased products and services at prices that have been assessed to be fair, reasonable, and competitive. The provisions of the City of Palm Desert Municipal Code Section

3.30.160(E) allow the Authority to participate as a government entity with Omnia under their cooperative pricing for purchases through the named vendor. 331
Palm Desert Housing Authority
Award Contract to Santa Rosa Roof Replacement Project CHA00004

Page 2 of 2 ends

Garland procured bids from three contractors in the Riverside County area to ensure the lowest market-adjusted price for the Project. R&R Roofing & Waterproofing Inc, of Lake Elsinore, provided the lowest bid to Garland in the amount of $591,299 plus $1,456.92 per square foot to provide additional insulation and decking replacement as needed (total roof square footage is approximately 3,095 square feet).

Staff recommends approval of this request to facilitate the continued routine and recurring maintenance at Santa Rosa Apartments for the fiscal year 2024/2025.

FINANCIAL IMPACT:

Funds have been included in the Housing Authority FY 2024/25 budget in the appropriate Authority account. There is no financial impact to the General Fund from this action.

ATTACHMENTS:

1. PDHA SR Omnia Proposal 24

2. Santa Rosa CHA00004 Contract
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333
334
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PALM DESERT HOUSING AUTHORITY

SHORT FORM CONSTRUCTION CONTRACT

1. Parties and Date. This Agreement is made and entered into this 12th day of December, 2024, by and between the Palm Desert Housing Authority, 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, (“Authority”) and Garland/DBS, a CORPORATION, with its principal place of business at 3800 East 91st Street, Cleveland Ohio 44105 ("Vendor").

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

2. Recitals.

2.1 Authority. Authority is a public agency organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.

2.2 Contractor. Contractor desires to perform and assume responsibility for the provision of certain construction services required by the Authority on the terms and conditions set forth in this Contract. Contractor represents that it is duly licensed and experienced in providing Removal and replacement of the building’s roof, roof substrate and wood fascia related construction services to public clients, that it and its employees or 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 Authority. The following license classifications are required for this Project: Santa Rosa Apartments Roof Replacement Project CHA00004

2.3 Project.

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

Santa Rosa Apartments Roof Replacement
Project No. CHA00004
(hereinafter referred to as “the Project”).

2.4 Project Documents & Certifications. Contractor has obtained, and delivers concurrently herewith, PERFORMANCE BOND, PAYMENT BOND, INSURANCE DOCUMENTS AND OTHER CERTIFICATION as required by the Contract.

3. Terms.

3.1 Incorporation of Documents. This Contract includes and hereby incorporates in full by reference the following documents, including all exhibits, drawings, specifications, and documents therein, and attachments and addenda thereto:
 Scope of Services and Schedule (Exhibit “A”)
 Plans and Specifications (Exhibit “B”)
 Contractor’s Certificate Regarding Workers’ Compensation (Exhibit “C”)  Public Works Contractor Registration Certification (Exhibit “D”)  Payment and Performance Bonds (Exhibit “E”)
 2024 Edition of the Standard Specifications for Public Works Construction (The Greenbook), Excluding Sections 1-9

3.1.1 Precedence. To the extent there is a conflict between any portions of this Contract, the order of precedence shall be as follows: change orders, special conditions, technical 335
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specifications, plans/construction drawings, general contract terms, scope of work, standard plans, advertisements for bid/proposals, bids/proposals or other documents submitted by Contractor.

3.2 Contractor’s Basic Obligation; Scope of Work. Contractor promises and agrees, at its own cost and expense, to furnish to the Authority all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately complete the Project, including all structures and facilities necessary for the Project or described in the Contract (hereinafter sometimes referred to as the “Work”), for a Total Contract Price as specified pursuant to this Contract. All Work shall be subject to, and performed in accordance with the above referenced documents, as well as the exhibits attached hereto and incorporated herein by reference. The plans and specifications for the Work are further described in Exhibit “B” attached hereto and incorporated herein by this reference. Special Conditions, if any, relating to the Work are described in Exhibit “C” attached hereto and incorporated herein by this reference.

3.2.1 Change in Scope of Work. Any change in the scope of the Work, method of performance, nature of materials or price thereof, or any other matter materially affecting the performance or nature of the Work shall not be paid for or accepted unless such change, addition or deletion is approved in advance and in writing by a valid change order executed by the Authority (“Change Order”).

3.2.1.1 Change Orders. Changes to the Contract Time (as defined in Section 3.3) or Total Contract Price shall be in the form of a written Change Order, either signed by both parties or issued unilaterally by the Authority. No adjustment shall be made to the Contract Time unless the delay impacts the critical path to completion and the delay was not caused in whole or in part by the Contractor. Failure to timely request a Change Order shall constitute a waiver of any right to adjust the Contract Time or the Total Contract Price. All requests for Change Orders shall be accompanied by detailed supporting documentation, including but not limited to payroll records, invoices, schedules, and any other documentation requested by the Authority for the purpose of determining the additional costs or the impact of any delay. If the change involves Work bid at a unit price, then the Total Contract Price shall be increased at the unit price. If there is no unit price, then the Total Contract Price shall be adjusted to account for costs actually incurred plus an allowed mark-up of fifteen percent (15%), which shall constitute the entire amount of profit, mark-ups, field or home office overhead costs, including personnel, equipment or office space, any materials, or any costs of equipment idle time for such work. Nothing herein shall prevent the Parties from agreeing to a lump sum cost.
(A) Changes Ordered By Authority. Authority may at any
time issue a written directive ordering additions, deletions, or changes to the Work. Contractor shall proceed with the work in accordance with the directive. To the extent the directive results in extra work or requires additional Contract Time, Contractor shall request a Change Order within seven (7) days of receiving the Work Directive. If any costs are not capable of being determined within seven (7) days, then Contractor shall request a Change Order within seven (7) days of when the costs are capable of being determined.
(B) Changes Requested By Contractor. With respect to any matter that may involve or require an adjustment to the Contract Time or the Contract Price, Contractor shall provide written notice of the underlying facts and circumstances that gave rise to the potential change within seven (7) days or prior to the alteration of conditions, whichever is earlier. Failure to give notice shall constitute a waiver of Contractor’s right to a change order. If any costs are not capable of being determined within seven (7) days, then Contractor shall request a Change Order within seven (7) days of when the costs are capable of being determined. 336
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3.2.2 Substitutions/”Or Equal”. Pursuant to Public Contract Code section 3400(b), the Authority may make a finding that designates certain products, things, or services by specific brand or trade name. Unless specifically designated in this Contract, whenever any material, process, or article is indicated or specified by grade, patent, or proprietary name or by name of manufacturer, such Specifications shall be deemed to be used for the purpose of facilitating the description of the material, process or article desired and shall be deemed to be followed by the words “or equal”.

Contractor may, unless otherwise stated, offer for substitution any material, process or article which shall be substantially equal or better in every respect to that so indicated or specified in this Contract. However, the Authority may have adopted certain uniform standards for certain materials, processes, and articles. Contractor shall submit requests, together with substantiating data, for substitution of any “or equal” material, process, or article no later than thirty-five (35) days after award of the Contract. To facilitate the construction schedule and sequencing, some requests may need to be submitted before thirty-five (35) days after award of Contract. Provisions regarding submission of “or equal” requests shall not in any way authorize an extension of time for performance of this Contract. If a proposed “or equal” substitution request is rejected, Contractor shall be responsible for providing the specified material, process, or article. The burden of proof as to the equality of any material, process or article shall rest with Contractor.

The Authority has the complete and sole discretion to determine if a material, process, or article is an “or equal” material, process or article that may be substituted. Data required to substantiate requests for substitutions of an “or equal” material, process or article data shall include a signed affidavit from Contractor stating that, and describing how, the substituted “or equal” material, process or article is equivalent to that specified in every way except as listed on the affidavit. Substantiating data shall include any and all illustrations, specifications, and other relevant data including catalog information which describes the requested substituted “or equal” material, process or article, and substantiates that it is an “or equal” to the material, process or article. The substantiating data must also include information regarding the durability and lifecycle cost of the requested substituted “or equal” material, process, or article. Failure to submit all the required substantiating data, including the signed affidavit, to the Authority in a timely fashion will result in the rejection of the proposed substitution.

Contractor shall bear all of the Authority’s costs associated with the review of substitution requests. Contractor shall be responsible for all costs related to a substituted “or equal” material, process, or article. Contractor is directed to the Special Conditions (if any) to review any findings made pursuant to Public Contract Code section 3400.

3.3 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Work under this Contract within 120 days, beginning the effective date of the Notice to Proceed (“Contract Time”). Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed by the Authority.

Such schedules or milestones may be included as part of Exhibits “A” or “B” attached hereto or may be provided separately in writing to Contractor. Contractor agrees that if such Work is not completed within the aforementioned Contract Time and/or pursuant to any such completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, it is understood, acknowledged and agreed that the Authority will suffer damage.

Pursuant to Government Code Section 53069.85, Contractor shall pay to the Authority as fixed and liquidated damages the sum of Five Hundred Dollars ($1,000) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule, or Project milestones established pursuant to the Contract. 337
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3.4 Standard of Performance; Performance of Employees. Contractor shall perform all Work under this Contract in a skillful and workmanlike manner, and 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 Work. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work 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 Work, including a Authority Business License, and that such licenses and approvals shall be maintained throughout the term of this Contract. Contractor shall perform, at its own cost and expense and without reimbursement from the Authority, any work necessary to correct errors or omissions which are caused by Contractor’s failure to comply with the standard of care provided for herein. Any employee who is determined by the Authority to be uncooperative, incompetent, a threat to the safety of persons or the Work, or any employee who fails or refuses to perform the Work in a manner acceptable to the Authority, shall be promptly removed from the Project by Contractor and shall not be re-employed on the Work.

3.5 Control and Payment of Subordinates; Contractual Relationship. Authority retains Contractor on an independent contractor basis and Contractor is not an employee of Authority.

Any additional personnel performing the work governed by this Contract on behalf of Contractor 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 under this Contract 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, and workers’ compensation insurance.

3.6 Authority’s Basic Obligation. Authority agrees to engage and does hereby engage Contractor to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provided in the Contract, the Authority shall pay to Contractor, as full consideration for the satisfactory performance by Contractor of the services and obligations required by this Contract, the below-referenced compensation in accordance with compensation provisions set forth in the Contract.

3.7 Compensation and Payment.

3.7.1 Amount of Compensation. As consideration for performance of the Work required herein, Authority agrees to pay Contractor the Total Contract Price of Five Hundred Ninety-one Thousand Two hundred Twenty-nine Dollars ($591,229.00) (“Total Contract Price”) provided that such amount shall be subject to adjustment pursuant to the applicable terms of this Contract or written Change Orders approved and signed in advance by the Authority.

3.7.2 Payment of Compensation. If the Work is scheduled for completion in thirty (30) or less calendar days, Authority will arrange for payment of the Total Contract Price upon completion and approval by Authority of the Work. If the Work is scheduled for completion in more than thirty (30) calendar days, Authority will pay Contractor on a monthly basis as provided for herein. On or before the fifth (5th) day of each month, Contractor shall submit to the Authority an itemized application for payment in the format supplied by the Authority indicating the amount of Work completed since commencement of the Work or since the last progress payment. These applications shall be supported by evidence which is required by this Contract and such other documentation as the Authority may require. The Contractor shall certify that the Work for which payment is requested has been done and that the materials listed are stored where indicated.

Contractor may be required to furnish a detailed schedule of values upon request of the Authority and in such detail and form as the Authority shall request, showing the quantities, unit prices, 338
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overhead, profit, and all other expenses involved in order to provide a basis for determining the amount of progress payments. Contractor shall submit its final invoice to Authority within thirty (30) days from the last date of the Work or termination in accordance with this Contract and failure by the Contractor to submit a timely invoice shall constitute a waiver of its right to final payment.

3.7.3 Prompt Payment. Authority shall review and pay all progress payment requests in accordance with the provisions set forth in Section 20104.50 of the California Public Contract Code. No progress payments will be made for Work not completed in accordance with this Contract. Contractor shall comply with all applicable laws, rules and regulations relating to the proper payment of its employees, subcontractors, suppliers, or others.

3.7.4 Contract Retentions. From each approved progress estimate, 5% will be deducted and retained by the Authority, and the remainder will be paid to Contractor. All Contract retention shall be released and paid to Contractor and subcontractors pursuant to California Public Contract Code section 7107.

3.7.5 Other Retentions. In addition to Contract retentions, the Authority may deduct from each progress payment an amount necessary to protect Authority from loss because of: (1) liquidated damages which have accrued as of the date of the application for payment; (2) any sums expended by the Authority in performing any of Contractor’s obligations under the Contract which Contractor has failed to perform or has performed inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be completed for the unpaid balance of the Total Contract Price or within the Contract Time; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from the Contract; (8) failure of Contractor to maintain or submit on a timely basis proper and sufficient documentation as required by the Contract or by Authority during the prosecution of the Work; (9) erroneous or false estimates by Contractor of the value of the Work performed; (10) any sums representing expenses, losses, or damages as determined by the Authority, incurred by the Authority for which Contractor is liable under the Contract; and (11) any other sums which the Authority is entitled to recover from Contractor under the terms of the Contract or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the Authority to deduct any of these sums from a progress payment shall not constitute a waiver of the Authority’s right to such sums.

3.7.6 Substitutions for Contract Retentions. In accordance with California Public Contract Code section 22300, the Authority will permit the substitution of securities for any monies withheld by the Authority to ensure performance under the Contract. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the Authority, or with a state or federally chartered bank in California as the escrow agent, and thereafter the Authority shall then pay such monies to Contractor as they come due. Upon satisfactory completion of the Contract, the securities shall be returned to Contractor. For purposes of this Section and Section 22300 of the Public Contract Code, the term “satisfactory completion of the contract” shall mean the time the Authority has issued written final acceptance of the Work and filed a Notice of Completion as required by law and provisions of this Contract. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. The escrow agreement used for the purposes of this Section shall be in the form provided by the Authority.

3.7.7 Payment to Subcontractors. Contractor shall pay all subcontractors for and on account of work performed by such subcontractors in accordance with the terms of their respective subcontracts and as provided for in Section 7108.5 of the California Business and Professions Code. Such payments to subcontractors shall be based on the measurements and estimates made and progress payments provided to Contractor pursuant to this Contract. 339
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3.7.8 Title to Work. As security for partial, progress, or other payments, title to Work for which such payments are made shall pass to the Authority at the time of payment. To the extent that title has not previously been vested in the Authority by reason of payments, full title shall pass to the Authority at delivery of the Work at the destination and time specified in this Contract. Such transferred title shall in each case be good, free, and clear from any and all security interests, liens, or other encumbrances. Contractor promises and agrees that it will not pledge, hypothecate, or otherwise encumber the items in any manner that would result in any lien, security interest, charge, or claim upon or against said items. Such transfer of title shall not imply acceptance by the Authority, nor relieve Contractor from the responsibility to strictly comply with the Contract and shall not relieve Contractor of responsibility for any loss of or damage to items.

3.7.9 Labor and Material Releases. Contractor shall furnish Authority with labor and material releases from all subcontractors performing work on, or furnishing materials for, the Work governed by this Contract prior to final payment by Authority.

3.8 Labor

3.8.1 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects.

Since the Work is being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Contractor agrees to fully comply with such Prevailing Wage Laws. Authority shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Contract. 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 Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify, and hold the Authority and their respective officers, agents, 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. Contractor and any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than the prevailing wage rates.

3.8.2 Apprenticeable Crafts. When Contractor employs workmen in an apprenticeable craft or trade, Contractor shall comply with the provisions of Section 1777.5 of the California Labor Code with respect to the employment of properly registered apprentices upon public works. The primary responsibility for compliance with said section for all apprenticeable occupations shall be with Contractor. The Contractor or any subcontractor that is determined by the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or such greater amount as provided by law.

3.8.3 Hours of Work. Contractor is advised that eight (8) hours labor constitutes a legal day’s work. Pursuant to Section 1813 of the California Labor Code, Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week, except when payment for overtime is made at not less than one and one-half (1-1/2) times the basic rate for that worker.

3.8.4 Payroll Records. Contractor and each subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight 340
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time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of Contractor in the manner provided in Labor Code section 1776. In the event of noncompliance with the requirements of this section, Contractor shall have 10 days in which to comply subsequent to receipt of written notice specifying in what respects such Contractor must comply with this section. Should noncompliance still be evident after such 10-day period, Contractor shall, as a penalty to Authority, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compliance is effectuated.

The amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on Contractor.

In accordance with Labor Code section 1771.4, the Contractor and each subcontractor shall furnish the certified payroll records directly to the DIR on a weekly basis and in the format prescribed by the DIR, which may include electronic submission. 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.

3.8.5 Contractor and Subcontractor Registration. 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. 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. Contractor is directed to review, fill out and execute the Public Works Contractor Registration Certification attached hereto as Exhibit “E” prior to contract execution. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

3.8.6 Labor Compliance; Stop Orders. This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be the Contractor’s sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract and applicable law. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Work, 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 subject to any applicable liquidated damages and shall not be compensable by the Authority.

Contractor shall defend, indemnify, and hold the Authority and their respective officers, agents, 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.

3.9 Performance of Work; Jobsite Obligations.

3.9.1 Water Quality Management and Compliance.

3.9.1.1 Water Quality Management and Compliance. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with 341
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all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Work 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); local 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.

3.9.1.2 Compliance with the Statewide Construction General Permit.

Contractor shall comply with all conditions of the most recent iteration of the National Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated with Construction Activity, issued by the California State Water Resources Control Board (“Permit”). It shall be Contractor’s sole responsibility to file a Notice of Intent and procure coverage under the Permit for all construction activity which results in the disturbance of more than one acre of total land area, or which is part of a larger common area of development or sale. Prior to initiating work, Contractor shall be solely responsible for preparing and implementing a Storm Water Pollution Prevention Plan (SWPPP) as required by the Permit. Contractor shall be responsible for procuring, implementing, and complying with the provisions of the Permit and the SWPPP, including the standard provisions, and monitoring and reporting requirements as required by the Permit. The Permit requires the SWPPP to be a “living document” that changes as necessary to meet the conditions and requirements of the job site as it progresses through difference phases of construction and is subject to different weather conditions. It shall be Contractor’s sole responsibility to update the SWPPP as necessary to address conditions at the project site.

3.9.1.3 Other Water Quality Rules Regulations and Policies. Contractor shall comply with the lawful requirements of any applicable municipality, drainage Authority, or local agency regarding discharges of storm water to separate storm drain systems or other watercourses under their jurisdiction, including applicable requirements in municipal storm water management programs.

3.9.1.4 Cost of Compliance. Storm, surface, nuisance, or other waters may be encountered at various times during construction of the Work. Therefore, the Contractor, hereby acknowledges that it has investigated the risk arising from such waters and assumes any and all risks and liabilities arising therefrom.

3.9.1.5 Liability for Non-Compliance. Failure to comply with the Permit is a violation of federal and state law. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to defend, indemnify, and hold harmless the Authority and their respective directors, officers, agents, employees, volunteers, and representatives for any alleged violations. In addition, Authority may seek damages from Contractor for any delay in completing the Work in accordance with the Contract, if such delay is caused by or related to Contractor’s failure to comply with the Permit.

3.9.1.6 Reservation of Right to Defend. Authority reserves the right to defend any enforcement action brought against the Authority for Contractor’s failure to comply with the Permit or any other relevant water quality law, regulation, or policy. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to reimburse the Authority for the costs (including the Authority’s attorney’s fees) associated with, any settlement reached between the Authority and the relevant enforcement entity.

3.9.1.7 Training. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies described in 342
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paragraph 3.9.1. Contractor further warrants that it, its employees, and subcontractors will receive adequate training, as determined by Authority, regarding the requirements of the laws, regulations and policies described in paragraph 3.9.1 as they may relate to the Work provided under this Contract. Upon request, Authority will provide the Contractor with a list of training programs that meet the requirements of this paragraph.

3.9.2 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. Contractor shall comply with the requirements of the specifications relating to safety measures applicable in particular operations or kinds of work. In carrying out its Work, 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 as applicable shall include, but shall not be limited to, adequate life protection and lifesaving equipment; adequate illumination for underground and night operations; instructions in accident prevention for all employees, such as machinery guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the proper inspection and maintenance of all safety measures. Furthermore, Contractor shall prominently display the names and telephone numbers of at least two medical doctors practicing in the vicinity of the Project, as well as the telephone number of the local ambulance service, adjacent to all telephones at the Project site.

3.9.3 Laws and Regulations. 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 Contract or the Work, 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 Work. If Contractor observes that the drawings or specifications are at variance with any law, rule, or regulation, it shall promptly notify the Authority in writing. Any necessary changes shall be made by written Change Order. If Contractor performs any work knowing it to be contrary to such laws, rules, and regulations and without giving written notice to the Authority, Contractor shall be solely responsible for all costs arising therefrom. Authority 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 Contract to the same extent as though set forth herein and will be complied with.

3.9.4 Permits and Licenses. Contractor shall be responsible for securing Authority permits and licenses necessary to perform the Work described herein, including, but not limited to, any required business license. While Contractor will not be charged a fee for any Authority permits, Contractor shall pay the Authority’s business license fee, if any. Any ineligible contractor or subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this Project.

3.9.5 Trenching Work. If the Total Contract Price exceeds $25,000 and if the Work governed by this Contract entails excavation of any trench or trenches five (5) feet or more in depth, Contractor shall comply with all applicable provisions of the California Labor Code, including Section 6705. To this end, Contractor shall submit for Authority’s review and approval a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.
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3.9.6 Hazardous Materials and Differing Conditions. As required by California Public Contract Code section 7104, if this Contract involves digging trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly, and prior to disturbance of any conditions, notify Authority of: (1) any material discovered in excavation that Contractor believes to be a hazardous waste that is required to be removed to a Class I, Class II or Class III disposal site; (2) subsurface or latent physical conditions at the site differing from those indicated by Authority; and (3) unknown physical conditions of an unusual nature at the site, significantly different from those ordinarily encountered in such contract work. Upon notification, Authority shall promptly investigate the conditions to determine whether a Change Order is appropriate. In the event of a dispute, Contractor shall not be excused from any scheduled completion date and shall proceed with all Work to be performed under the Contract but shall retain all rights provided by the Contract or by law for making protests and resolving the dispute.

3.9.7 Underground Utility Facilities. To the extent required by Section 4215 of the California Government Code, Authority shall compensate Contractor for the costs of: (1) locating and repairing damage to underground utility facilities not caused by the failure of Contractor to exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in the construction drawings; and (3) equipment necessarily idled during such work. Contractor shall not be assessed liquidated damages for delay caused by failure of Authority to provide for removal or relocation of such utility facilities.

3.9.8 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). Although CARB limits and requirements are broader, Contractor shall specifically be aware of their application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify Authority 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 Contract.

3.9.9 State Recycling Mandates. Contractor shall comply with State Recycling Mandates. Any recyclable materials/debris collected by the Contractor that can be feasibly diverted via reuse or recycling must be hauled by the appropriate handler for reuse or recycling.

3.9.10 Inspection Of Site. Contractor has visited sites where Work is to be performed and has become acquainted with all conditions affecting the Work. Contractor warrants that it has made such examinations as it deems necessary to determine the condition of the Work sites, its accessibility to materials, workmen and equipment, and to determine the Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money–will be allowed as to such matters.

3.9.11 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 Documents before commencing activities.

Errors, inconsistencies, or omissions discovered shall be reported to the Authority immediately and prior to performing any work or altering the condition.

3.9.12 Removal of Waste and Debris. 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 344
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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.

3.9.13 Notifications to Authority and Residents. The Contractor shall acknowledge that the Authority provides forty-eight (48) hours’ notice in advance of the start of any Work that is to occur at any residential unit. Contractor shall provide sufficient notice to the Authority before beginning any such Work so that the Authority may provide timely notice to residents.

3.9.14 Paths of Travel. Pedestrian paths of travel must be maintained 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 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 Authority shall be given at least 48-hours’ notice prior to the creation of any condition affecting pedestrian paths of travel.

3.10 Completion of Work. When Contractor determines that it has completed the Work required herein, Contractor shall so notify Authority in writing and shall furnish all labor and material releases required by this Contract. Authority shall thereupon inspect the Work. If the Work is not acceptable to the Authority, the Authority shall indicate to Contractor in writing the specific portions or items of Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed the incomplete or unsatisfactory Work, Contractor may request a re-inspection by the Authority. Once the Work is acceptable to Authority, Authority shall pay to Contractor the Total Contract Price remaining to be paid, less any amount which Authority may be authorized or directed by law to retain.

3.11 Claims; Government Code Claim Compliance.

3.11.1 Except as otherwise provided in this Contract, if any dispute shall arise between the Authority and Contractor regarding performance of the Work, or any alleged change in the Work, Contractor shall timely perform the disputed work and shall give written notice of a claim for additional compensation for the work to the Authority within three (3) days after commencement of the disputed work. Contractor’s failure to give written notice within the three (3)-day period constitutes an agreement by Contractor that it will receive no extra compensation for the disputed work and shall constitute a waiver of the right to further pursue the claim under the Contract or at law.

3.11.1.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims.

The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with all applicable law, including but not limited to these statutes.

3.11.1.2 Claims. For purposes of this Section, “Claim” means a separate demand by the Contractor for:
(A) An adjustment to the time for completion including, without limitation, for relief from damages or penalties for delay assessed by the Authority; 345
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(B) Payment by the Authority of money or damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled; or (C) An amount the payment of which is disputed by the
Authority.

A “Claim” does not include any demand for payment for which the Contractor has failed to provide notice, request a Change Order, or otherwise failed to follow any procedures contained in the Contract Documents.

3.11.1.3 Filing Claims. Claims governed by this Section may not be filed unless and until the Contractor completes any and all requirements of the Contract Documents pertaining to notices and requests for changes to the Contract Time or Contract Price, and Contractor’s request for a change has been denied in whole or in part. Claims governed by this Section must be filed no later than thirty (30) days after a request for change has been denied in whole or in part or after any other event giving rise to the Claim. The Claim shall be submitted in writing to the Authority and shall include on its first page the following words in 16-point capital font: “THIS IS A CLAIM.” The Claim shall include all the information and documents necessary to substantiate the Claim, including but not limited to those identified below. Nothing in this Section is intended to extend the time limit or supersede notice requirements otherwise provided by Contract Documents. Failure to follow such contractual requirements shall bar any Claims or subsequent proceedings for compensation or payment thereon.

3.11.1.4 Supporting Documentation. The Contractor shall submit all claims in the following format:
(A) Summary description of Claim including basis of
entitlement, merit and amount of time or money requested, with specific reference to the Contract Document provisions pursuant to which the Claim is made (B) List of documents relating to claim:
(1) Specifications
(2) Drawings
(3) Clarifications (Requests for Information)
(4) Schedules
(5) Other
(C) Chronology of events and correspondence
(D) Narrative analysis of claim merit
(E) Analysis of Claim cost, including calculations and
supporting documents
(F) Time impact analysis in CPM format
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3.11.1.5 Authority’s Response. Upon receipt of a Claim pursuant to this Section, the Authority shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the Claim will be processed and made within 60 days after the Authority issues its written statement.
(A) If the Authority needs approval from its governing body to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the Authority’s governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the Authority shall have up to three (3) days following the next duly publicly noticed meeting of the Authority’s governing body after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
(B) Within 30 days of receipt of a Claim, the Authority may request in writing additional documentation supporting the Claim or relating to defenses or Claims the Authority may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of the Authority and the Contractor. The Authority’s written response to the Claim, as further documented, shall be submitted to the Contractor within 30 days (if the Claim is less than $50,000, within 15 days) after receipt of the further documentation, or within a period of time no greater than that taken by the Contractor in producing the additional information or requested documentation, whichever is greater.

3.11.1.6 Meet and Confer. If the Contractor disputes the Authority’s written response, or the Authority fails to respond within the time prescribed, the Contractor may so notify the Authority, in writing, either within 15 days of receipt of the Authority’s response or within 15 days of the Authority’s failure to respond within the time prescribed, respectively, and demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, the Authority shall schedule a meet and confer conference within 30 days for settlement of the dispute.

3.11.1.7 Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the Authority shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the Authority issues its written statement. Any disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the Authority and the Contractor sharing the associated costs equally. The public entity and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing, unless the parties agree to select a mediator at a later time.
(A) If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. (B) For purposes of this Section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through 347
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negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this Section.
(C) Unless otherwise agreed to by the Authority and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced. (D) The mediation shall be held no earlier than the date the Contractor completes the Work or the date that the Contractor last performs Work, whichever is earlier. All unresolved Claims shall be considered jointly in a single mediation unless a new unrelated Claim arises after mediation is completed.

3.11.1.8 Procedures After Mediation. If following the mediation, the Claim or any portion remains in dispute, the Contractor must file a Claim pursuant to Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code prior to initiating litigation. For purposes of those provisions, the running of the period of time within which a Claim must be filed shall be tolled from the time the Contractor submits his or her written Claim pursuant to subdivision (a) until the time the Claim is denied, including any period of time utilized by the meet and confer conference.

3.11.1.9 Civil Actions. The following procedures are established for all civil actions filed to resolve Claims of $375,000 or less:
(A) Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the terms of this Contract.

The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court. (B) If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration. In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction law, and (B) any party appealing an arbitration award who does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney’s fees on appeal of the other party.

3.11.1.10 Government Code Claim Procedures.
(A) This Section does not apply to tort claims and nothing in this Section is intended nor shall be construed to change the time periods for filing tort claims or actions specified by Chapter 1 (commending with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.5 of Title 1 of the Government Code. (B) In addition to any and all requirements of the Contract Documents pertaining to notices of and requests for adjustment to the Contract Time, Contract Price, or compensation or payment for additional work, disputed Work, construction claims and/or 348
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changed conditions, the Contractor must comply with the claim procedures set forth in Government Code Section 900, et seq. prior to filing any lawsuit against the Authority. (C) 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 adjustment of the Contract Time or Contract Price for additional work, disputed Work, construction claims, and/or changed conditions have been followed by Contractor. If Contractor does not comply with the Government Code claim procedure or the prerequisite contractual requirements, Contractor may not file any action against the Authority.
(D) A Government Code claim must be filed no earlier than the date the Work is completed or the date the Contractor last performs Work on the Project, whichever occurs first. A Government Code claim shall be inclusive of all unresolved Claims known to Contractor or that should reasonably by known to Contractor excepting only new unrelated Claims that arise after the Government Code claim is submitted.

3.11.1.11 Non-Waiver. The Authority’s failure to respond to a Claim from the Contractor within the time periods described in this Section or to otherwise meet the time requirements of this Section shall result in the Claim being deemed rejected in its entirety and shall not constitute a waiver of any rights under this Section.

3.12 Loss and Damage. Except as may otherwise be limited by law, Contractor shall be responsible for all loss and damage which may arise out of the nature of the Work 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 Work until the same is fully completed and accepted by Authority. In the event of damage proximately caused by an Act of God, as defined by Section 7105 of the Public Contract Code, the Authority may terminate this Contract pursuant to the termination provisions provided herein; provided, however, that the Authority needs to provide Contractor with only one (1) day advanced written notice.

3.13 Indemnification.

3.13.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the Authority and their respective officers, agents, 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 Contractor’s services, the Project or this Contract, 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 Authority. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor’s indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole or active negligence or willful misconduct of the Authority or the Authority’s agents, servants, or independent contractors who are directly responsible to the Authority, or for defects in design furnished by those persons.

3.13.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of Authority’s choosing and at Contractor’s own cost, expense, and risk, any and all Claims 349
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covered by this section that may be brought or instituted against the Authority and their respective officers, agents, employees, volunteers and representatives. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the Authority and their respective officers, agents, employees, volunteers, and representatives as part of any such claim, suit, action, or other proceeding. Contractor shall also reimburse the Authority for the cost of any settlement paid by the Authority and their respective officers, agents, employees, volunteers, and representatives as part of any such claim, suit, action, or other proceeding. Such reimbursement shall include payment for Authority’s attorney’s fees and costs, including expert witness fees.

Contractor shall reimburse the Authority and their respective officers, agents, 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 Contract, and shall not be restricted to insurance proceeds, if any, received by the Contractor, the Authority and their respective officers, agents, employees, volunteers and representatives.

3.14 Insurance.

3.14.1 Minimum Requirements. Without limiting Contractor’s indemnification of the Authority, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to the Authority.

3.14.1.1 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, and a $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended.

Any endorsement restricting standard ISO “insured contract” language will not be accepted.

3.14.1.2 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 Contract, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

3.14.1.3 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, automobile 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 in the event that 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; 350
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(D) Policies shall “follow form” to the underlying primary policies; and
(E) Insureds under primary policies shall also be insureds under the umbrella or excess policies.

3.14.1.4 Workers’ Compensation Insurance. Contractor may maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to Authority, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the Authority and their respective officers, agents, employees, volunteers, and representatives.

3.14.1.5 Pollution Liability Insurance Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to the Authority providing coverage for liability arising out of sudden, accidental, and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Contract shall be specifically scheduled on the policy as “covered operations”. The policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites.

3.14.1.6 Builder’s Risk Insurance. [RESERVED]

3.14.2 Other Provisions or Requirements

3.14.2.1 Proof of Insurance. Contractor shall provide certificates of insurance to Authority 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 Authority’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with Authority at all times during the term of this contract. Authority reserves the right to require complete, certified copies of all required insurance policies, at any time.

3.14.2.2 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, its agents, representatives, employees, or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. The Authority and their respective officers, agents, employees, volunteers, and representatives shall continue as additional insureds under such policies.

3.14.2.3 Primary/Non-Contributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by Authority 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 351
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and non-contributory basis for the benefit of Authority before the Authority’s own insurance or selfinsurance shall be called upon to protect it as a named insured.

3.14.2.4 Products/Completed Operations Coverage. Products/ completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The Authority and their respective officers, agents, employees, volunteers, and representatives shall be included as additional insureds under the Products and Completed Operations coverage.

3.14.2.5 Authority’s Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements, or is canceled and not replaced, Authority has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by Authority will be promptly reimbursed by Contractor, or Authority will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, Authority may cancel this Contract.

3.14.2.6 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 Authority’s Risk Manager.

3.14.2.7 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the Authority and their respective officers, agents, 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 Authority and their respective officers, agents, employees, volunteers, and representatives and shall require similar written express waivers and insurance clauses from each of its subcontractors.

3.14.2.8 Enforcement of Contract Provisions (non-estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the Authority to inform Contractor of non-compliance with any requirement imposes no additional obligations on the Authority nor does it waive any rights hereunder.

3.14.2.9 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 Authority 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 Authority. 352
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3.14.2.10 Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide the Authority 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.

3.14.2.11 Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the Authority and their respective officers, agents, employees, volunteers, and representatives shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Contractors Additional Insured Endorsement for the ongoing (i.e. ISO Form CG 20 10 07 04) and completed operations (i.e. ISO Form CG 20 37 07 04) of Contractor.

3.14.2.12 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 Authority and approved of in writing.

3.14.2.13 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.

3.14.2.14 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 Authority for review.

3.14.2.15 Authority’s Right to Revise Requirements. The Authority 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 substantial additional cost to the Contractor, the Authority and Contractor may renegotiate Contractor’s compensation. If the Authority reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice.

3.14.2.16 Self-Insured Retentions. Any self-insured retentions must be declared to and approved by Authority. Authority 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 Authority.

3.14.2.17 Timely Notice of Claims. Contractor shall give Authority prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Contract, and that involve or may involve coverage under any of the required liability policies.

3.14.2.18 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. 353
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3.15Bond Requirements.

3.15.1 Payment Bond. If required by law or otherwise specifically requested by Authority in Exhibit “C” and Exhibit “F” attached hereto and incorporated herein by reference, Contractor shall execute and provide to Authority concurrently with this Contract a Payment Bond in an amount required by the Authority and in a form provided or approved by the Authority. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the Authority.

3.15.2 Performance Bond. If specifically requested by Authority in Exhibit “C” and Exhibit “F” attached hereto and incorporated herein by reference, Contractor shall execute and provide to Authority concurrently with this Contract a Performance Bond in an amount required by the Authority and in a form provided or approved by the Authority. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the Authority.

3.15.3 Bond Provisions. Should, in the Authority’s sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the effected bond within (ten) 10 days of receiving notice from the Authority. 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 Authority, 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 Contract until any replacement bonds required by this Section are accepted by the Authority. To the extent, if any, that the Total Contract Price is increased in accordance with the Contract, Contractor shall, upon request of the Authority, cause the amount of the bond to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the Authority. If Contractor fails to furnish any required bond, the Authority may terminate the Contract for cause.

3.15.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be accepted. 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 Authority.

3.16 Warranty. Contractor warrants all Work under the Contract (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 Contract 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 Authority of any defect in the Work or non-conformance of the Work to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the Authority 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 Work 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-year period, commencing with the date of acceptance of such corrected Work. Contractor shall perform such tests as the Authority may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, 354
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including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the Work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the Authority, regardless of whether or not such warranties and guarantees have been transferred or assigned to the Authority by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the Authority. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the Authority, the Authority 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 Authority for any expenses incurred hereunder upon demand.

3.17 Employee/Labor Certifications.

3.17.1 Contractor’s Labor Certification. By its signature hereunder, Contractor certifies that he is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s 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 Work. A certification form for this purpose, which is attached to this Contract as Exhibit “D” and incorporated herein by reference, shall be executed simultaneously with this Contract.

3.17.2 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.

3.17.3 Verification of Employment Eligibility. By executing this Contract, Contractor verifies 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 subcontractors and sub-subcontractors to comply with the same.

3.18 General Provisions.

3.18.1 Authority’s Representative. The Authority hereby designates Lucero Leyva, Senior Project Manager, or his or her designee, to act as its representative for the performance of this Contract (“Authority’s Representative”). Authority’s Representative shall have the power to act on behalf of the Authority for all purposes under this Contract except for increasing the Total Contract Price. Contractor shall not accept direction or orders from any person other than the Authority’s Representative or his or her designee.

3.18.2 Contractor’s Representative. Before starting the Work, Contractor shall submit in writing the name, qualifications, and experience of its proposed representative who shall be subject to the review and approval of the Authority (“′Contractor’s Representative”). Following approval by the Authority, Contractor’s Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Contract. Contractor’s Representative shall supervise and direct the Work, using his best skill and attention, and shall be responsible for all construction means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Work under this Contract. Contractor’s Representative shall 355
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devote full time to the Project and either he or his designee, who shall be acceptable to the Authority, shall be present at the Work site at all times that any Work is in progress and at any time that any employee or subcontractor of Contractor is present at the Work site. Arrangements for responsible supervision, acceptable to the Authority, shall be made for emergency Work which may be required. Should Contractor desire to change its Contractor’s Representative, Contractor shall provide the information specified above and obtain the Authority’s written approval.

3.18.3 Termination. This Contract may be terminated by the Authority at any time, either with or without cause, by giving Contractor three (3) days advance written notice. In the event of termination by the Authority for any reason other than the fault of Contractor, the Authority shall pay Contractor for all Work performed up to that time as provided herein. In the event of breach of the Contract by Contractor, the Authority may terminate the Contract immediately without notice, may reduce payment to Contractor in the amount necessary to offset the Authority’s resulting damages, and may pursue any other available recourse against Contractor. Contractor may not terminate this Contract except for cause. In the event this Contract is terminated in whole or in part as provided, the Authority may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. If this Contract is terminated as provided, the Authority may require Contractor to provide all finished or unfinished documents, data, diagrams, drawings, materials, or other matter prepared or built by Contractor in connection with its performance of this Contract. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.

3.18.4 Contract Interpretation. Should any question arise regarding the meaning or import of any of the provisions of this Contract or written or oral instructions from the Authority, the matter shall be referred to the Authority’s Representative, whose decision shall be binding upon Contractor.

3.18.5 Anti-Trust Claims. This provision shall be operative if this Contract is applicable to California Public Contract Code Section 7103.5. In entering into this Contract to supply goods, services or materials, Contractor hereby offers and agrees to assign to the Authority all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the Authority tender final payment to Contractor, without further acknowledgment by the Parties.

3.18.6 Notices. All notices hereunder and communications regarding interpretation of the terms of the Contract or changes thereto shall be provided by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows:

Contractor: Garland/DBS, INC
3800 East 91st Street
Cleveland, OH 44105
ATTN: Division Controller
Authority: Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: Lucero Leyva, Capital Projects Department
Any notice so given shall be considered received by the other Party three (3) days after deposit 356
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in the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.18.7 Time of Essence. Time is of the essence in the performance of this Contract.

3.18.8 Assignment Forbidden. Contractor shall not, either voluntarily or by action of law, assign or transfer this Contract or any obligation, right, title or interest assumed by Contractor herein without the prior written consent of the Authority. If Contractor attempts an assignment or transfer of this Contract or any obligation, right, title or interest herein, Authority may, at its option, terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to Contractor or its assignee or transferee.

3.18.9 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

3.18.10 Laws; Venue. This Contract shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Contract, the action shall be brought in a state or federal court situated in the County of Riverside, State of California.

3.18.11 Counterparts. This Contract may be executed in counterparts, each of which shall constitute an original.

3.18.12 Successors. The Parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract.

3.18.13 Solicitation. 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 Contract. 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 Contract. For breach or violation of this warranty, the Authority shall have the right to terminate this Contract without liability.

3.18.14 Conflict of Interest. 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 Contract. 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 Contract. For breach or violation of this warranty, the Authority shall have the right to rescind this Contract without liability. For the term of this Contract, no director, official, officer or employee of the Authority, during the term of his or her service with the Authority, shall have any direct interest in this Contract, or obtain any present or anticipated material benefit arising therefrom.

3.18.15 Certification of License.

3.18.15.1 Contractor certifies that as of the date of execution of this Contract, Contractor has a current contractor’s license of the classification indicated below under Contractor’s signature.
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3.18.15.2 Contractors are required by law to be licensed and regulated by the Contractors’ State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four (4) years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O.

Box 26000, Sacramento, California 95826.

3.18.16 Authority to Enter Contract. Each Party warrants that the individuals who have signed this Contract have the legal power, right and authority to make this Contract and bind each respective Party.

3.18.17 Entire Contract; Modification. This Contract contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Contract may only be modified by a writing signed by both Parties.

3.18.18 Non-Waiver. None of the provisions of this Contract shall be considered waived by either party unless such waiver is specifically specified in writing.

3.18.19 Authority’s Right to Employ Other Contractors. The Authority reserves right to employ other contractors in connection with this Project or other projects.

3.18.20 Federal Provisions. Reserved.
[Signatures on Next Page]
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SIGNATURE PAGE TO SHORT FORM CONSTRUCTION AGREEMENT

BY AND BETWEEN THE PALM DESERT HOUSING AUTHORITY
AND GARLAND/DBS, Inc.

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

PALM DESERT HOUSING AUTHORITY
By:

L. Todd Hileman
Executive Director
Attest:

By:

Anthony J. Mejia
Secretary
Approved as to form:

By:

Israh Shah
Best Best & Krieger LLP
Special Council
GARLAND/DBS, Inc.

By:

Printed Name:

By:

Printed Name:

Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
QC: _____
Contract QC_____
Insurance:
_____
Initial Review
_____
Final Approval
Bonds: _____
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EXHIBIT “A”

SCOPE OF SERVICES AND SCHEDULE
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EXHIBIT “B”

PLANS AND SPECIFICATIONS
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EXHIBIT “C”
CONTRACTOR’S CERTIFICATE REGARDING WORKERS’ COMPENSATION LABOR CODE - SECTION 1861
I, the undersigned Contractor, am aware of the provisions of Section 3700, et seq., of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of the Code, and I, the undersigned Contractor, agree to and will comply with such provisions before commencing the performance of the Work on this Contract.

Garland/DBS, Inc.

By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)
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EXHIBIT “D”

PUBLIC WORKS CONTRACTOR 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/PublicWorks/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.

Contractor 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.1
Name of Contractor:

DIR Registration Number:

DIR Registration Expiration: _________________________
Small Project Exemption: _____ Yes or _____ No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further acknowledges:

1. Contractor shall maintain a current DIR registration for the duration of the project.

2. Contractor 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.

3. Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is non-responsive.

Name of Contractor: ___________________
Signature:

Name and Title:

Dated:

1 If the Project is exempt from the contractor registration requirements pursuant to the small project exemption under Labor Code Sections 1725.5 and 1771.1, please mark “Yes” in response to “Small Project Exemption.” 363
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EXHIBIT “E”

PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the Palm Desert Housing Authority (hereinafter designated as the “Authority”), by action taken or a resolution passed December 12, 2024 has awarded to Garland/DBS, Inc. hereinafter designated as the “Principal,” a contract for the work described as follows:

Santa Rosa Apartments Roof Replacement Project CHA00004 (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 December 12, 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 Authority in the penal sum of FIVE HUNDRED NINETY-ONE THOUSAND TWO HUNDRED TWENTY-NINE DOLLARS, ($591,229.00) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by 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 364
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released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or 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 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.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal) Surety
By
Attorney-in-Fact
Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
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Rev 10-19
72500.00001\32375220.1

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the Palm Desert Housing Authority (hereinafter referred to as “Authority”) has awarded to Garland/DBS Inc., (hereinafter referred to as the “Contractor”) an agreement for Santa Rosa Roof Replacement Project CHA00004 (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 December 12, 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, Crossfire Corp., 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 Authority in the sum of FIVE HUNDRED NINETY-ONE THOUSAND TWO HUNDRED TWENTY-NINE DOLLARS, ($591,229.00), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the Authority, its officers and agents, 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 Authority, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the 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 Authority’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 Authority to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the Authority’s option:
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(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 Authority, 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 Authority under the Contract and any modification thereto, less any amount previously paid by the Authority to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the Authority 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 Authority under the Contract and any modification thereto, less any amount previously paid by the Authority to the Contractor and any other set offs pursuant to the Contract Documents.

Surety expressly agrees that the Authority 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 Authority, when declaring the Contractor in default, notifies Surety of the Authority’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.
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IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__).
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal)
Surety
By

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

STAFF REPORT
MEETING DATE: December 12, 2024
PREPARED BY: Luis Moctezuma, Management Analyst
Amy Lawrence, Deputy Director of Economic Development
SUBJECT: AWARD CONTRACT TO HF&H CONSULTANTS, LLC, FOR SOLID

WASTE, RECYCLING, AND ORGANICS CONSULTING SERVICES
RECOMMENDATION:

1. Award Contract to HF&H Consultants, LLC, of Irvine, California, for Solid Waste, Recycling, and Organics Consulting Services for a three-year term, in an annual amount not to exceed $145,000 plus 4% annual cost adjustment in each subsequent year.

2. Authorize contingency in the amount of $10,000 annually for unforeseen circumstances.

3. Authorize the City Attorney to make any necessary nonmonetary changes to the agreement.

4. Authorize the City Manager to execute the agreement, any documents necessary to effectuate the actions taken herewith, and approve written contract amendment and change order requests for unanticipated conditions per Section 3.30.170 of the Palm Desert Municipal Code.

BACKGROUND/ANALYSIS:

On September 17, 2024, staff issued a Request for Proposals (RFP) for Solid Waste, Recycling, and Organics Consulting Services, requesting assistance with the following specialized services:
 Implementation of the City's solid waste management, recycling programs, and organics diversion initiatives.
 Technical support for administration of the City’s solid waste franchise agreement with Burrtec Waste and Recycling Services.
 Compliance with and legislative review of current and future state mandates and regulations, e.g. SB 1383, SB 54, etc.
 CalRecycle support with annual calls and site visits, mandatory reporting, etc.

In response, the following four proposals were received and evaluated based on their industry experience, technical expertise, and proposed method to accomplish work.

Company Location Cost for Year One of
the Agreement
Aptim Environmental & Infrastructure, LLC San Diego, CA $45,500 EcoNomics, Inc. Del Mar, CA $114,915
HF&H Consultants, LLC Irvine, CA $115,000
Raftelis Financial Consultants, Inc. Los Angeles, CA $74,900 In evaluating the four proposals, Raftelis Financial Consultants, Inc., specialized more in conducting collection and disposal system rate studies and lacked experience with providing the 369
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services being requested. While Aptim Environmental & Infrastructure, LLC’s, scope of services were clear, their proposal lacked comparable technical expertise. The two final proposers, EcoNomics, Inc., and HF&H Consultants, LLC, scored very similarly, and both seem to have the experience and technical expertise necessary to meet the City’s needs.

Although HF&H Consultant’s (HF&H) bid was slightly higher than EcoNomics, Inc.’s, staff recommends awarding the contract to HF&H given their technical expertise and proposed method to accomplish the work. The City currently contracts with HF&H for these services, and the benefit of maintaining a consultant who is familiar with the City's current franchise agreement and specific programs and challenges outweighs the cost difference.

For background, in 2019, the City contracted with HF&H to draft and negotiate the current 11- year franchise agreement with Burrtec that was adopted in 2022. Since that time, HF&H has been providing technical support related to the City’s contract with Burrtec to include contract monitoring, rate adjustment reviews, diversion reporting, and more. HF&H staff assisted Palm Desert to become an early adopter of many aspects related to the State-mandated diversion of organic waste (SB 1383). This included working with the City and Burrtec on the strategy for rolling out the residential three bin system (making Palm Desert the first in the Coachella Valley), as well as implementation of policies and programs related to paper and organics procurement and commercial edible food recovery. They also developed Palm Desert’s required implementation record and have provided ongoing assistance with recordkeeping requirements.

They have proven to have a great working relationship with CalRecycle staff and a track record of mitigating risk, helping the City to avoid fines and remain in good standing through program implementation.

Given that HF&H has an intimate knowledge of the City’s franchise agreement with Burrtec, has helped the City remain in good standing with CalRecycle through early roll-out of SB 1383 programs, and is regarded as an industry expert for SB 1383 and other regulatory compliance, staff recommends the City Council award the contract to HF&H.

The recommendation also includes funding for mandatory audit work, as needed. CalRecycle’s Jurisdiction and Agency Compliance and Enforcement (JACE) Branch has begun performing compliance evaluations on select jurisdictions in California. Per State law, every jurisdiction must undergo a compliance evaluation at least every four years and Palm Desert has yet to complete this task. A JACE compliance evaluation is a complete review of the City’s solid waste and recycling program implementation, including compliance with AB 939, AB 341, AB 1826, SB 1383, as well as audits of the implementation record, disposal and hauler reporting, and more.

It is estimated that the compliance evaluation could take a minimum of six months to over a year to complete.

Legal Review:

This report has been reviewed by the City Attorney’s Office. 370
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FINANCIAL IMPACT:

Staff is recommending approval of a contract in the amount of $145,000 plus 4% annual cost adjustment for a term of three years, with two additional one-year extensions, pending budget approval for each subsequent year.
*Once Task E (JACE Compliance Review) has been completed, contract will be opened for the base service amount in each subsequent year.

Funds for this contract were included in the FY 2024-25 Recycle Fund, Account No. 2364195- 4309000. Staff will budget accordingly during future annual budget approval processes. No General Fund monies will be expended for these services.

Staff is also recommending a $10,000 annual contingency for unforeseen circumstances.

ATTACHMENTS:

1. HF&H Consultants, LLC Proposal

2. HF&H Consultants, LLC Fee Proposal

3. Contract Scope of Services

4. Draft Contract
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EXHIBIT “A”

SCOPE OF SERVICES
The following represents the general scope of work for Project:

1. CalRecycle Support. Consultant will represent the City with CalRecycle matters in relation to the City’s solid waste and recycling activity. Consultant’s assistance with CalRecycle shall include and is not limited to:

A. Work with CalRecycle staff to answer and document any questions or concerns regarding the City’s solid waste, recycling and organics programs. Consultant shall respond to City's request to contact CalRecycle for any issue or concern.

B. Assist with preparation of any required CalRecycle reports for City review including the CalRecycle annual report (EAR report). Assistance shall include the collection of all required data from the franchise hauler and the operators of any other recycling programs in the City (e.g. supermarket back hauling of organics and cardboard) and from local recycling facilities, other private recyclers, and any other data collection required for CalRecycle reports.

C. Support the City with SB 1383 requirements such as edible food recovery, record keeping, reporting, waiver administration, and enforcement.

2. Provide Technical and On-Call Support for the Administration of the City’s Solid Waste Franchise Agreement. Consultant shall provide support to the City with the administration of the City’s agreement with its solid waste and recycling collection, transportation, and processing service provider (“Hauler”) including the following activities:

A. Maintain a checklist of all contract requirements and due dates contained in the contract.

B. Support the City in various virtual or in-person meetings with Hauler, including monthly progress meetings, to discuss the status of all tasks in progress, problems encountered, diversion rates, education and outreach, etc.

C. Prepare monthly progress and diversion reports for the City.

D. Review reports and correspondence submitted by Hauler, track recycling program implementation for reporting purposes of state mandated recycling programs such as AB 939, AB 341, AB 1826, and SB 1383.

E. Review records associated with all required waste audits and contamination monitoring including Hauler’s facilities and at residential, multi-family, and business properties.

F. Assist the City with processing any request for a rate increase or other requests pursuant to the Hauler’s contract requirements.

G. Assist with contract amendments, if necessary.
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3. Technical Assistance. Provide ongoing technical assistance and expertise on solid waste, recycling, and organics state mandates with particular emphasis on SB 1383 and its implementation, programming, reporting and enforcement requirements.

4. Perform Other Duties as Assigned by the City. Consultant shall perform other duties as assigned by the City to ensure successful compliance with state solid waste and recycling mandates, and administration of the City’s Franchise Hauler’s agreement.

Examples of other duties as assigned are as follows:

A. Research and evaluate potential solid waste, recycling, and organics programs and outreach initiatives required to comply with applicable state law.

B. Support with evaluating staffing needs to implement programs and initiatives.

C. Assist with drafting City ordinances related to solid waste, recycling, and organics services.

5. Additional Services. The Consultant is invited to offer additional services at their discretion to ensure for successful support of existing programs, compliance with state solid waste and recycling mandates, and administration of the Hauler’s agreement. 410
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CITY OF PALM DESERT

PROFESSIONAL SERVICES AGREEMENT

1. Parties and Date. This Agreement is made and entered into this 1st day of January, 2025, 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 HF&H Consultants, a Limited Liability Company, with its principal place of business at 2081 Business Center Drive, Suite 265, Irvine, California, 92612 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. Recitals.

2.1 Project.

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

SOLID WASTE, RECYCLING, AND ORGANICS CONSULTING SERVICES (hereinafter referred to as “the Project”).

2.2 Consultant.

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

Consultant is duly licensed and has the necessary qualifications to provide such services.

3. Terms.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant 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 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 January 1, 2025, to December 31, 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 two (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.

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates.

The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Any personnel performing the Services shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees, or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their 411
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performance of Services under this Agreement and as required by law. Consultant 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. Consultant 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. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant 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 Consultant shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause.

The key personnel for performance of this Agreement are as follows: Haley Kunert, Senior Project Manager.

3.2.5 City's Representative. The City hereby designates Luis Moctezuma, Management Analyst, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative").

City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.6 Consultant's Representative. Consultant hereby designates Haley Kunert, Senior Project Manager, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her 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.

3.2.7 Coordination of Services. Consultant 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.

3.2.8 Standard of Care; Performance of Employees. Consultant 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. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants 412
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shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant 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 Consultant's failure to comply with the standard of care provided herein. Any employee of the Consultant or its sub-consultants 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 Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also 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 separately agreed upon in writing by the City and Consultant (“Performance Milestones”).

Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement.

Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation.

Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

3.2.10 Laws and Regulations; Employee/Labor Certification. Consultant 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 and shall give all notices required by law. Consultant 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. 413
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3.2.10.1 Employment Eligibility; Consultant. Consultant 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 sub-subconsultants to comply with the same. Consultant 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 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, physical disability, ancestry, sex, age, marital status, gender, gender identity, gender expression, sexual orientation, reproductive health decision making, veteran or military status, or any other consideration made unlawful by federal, state, or local laws. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also 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.

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

3.2.11 Insurance.

3.2.11.1 Minimum Requirements. Without limiting Consultant’s indemnification of City, and prior to commencement of the Services, Consultant 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. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(B) Automobile Liability Insurance. Consultant 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 Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Professional Liability (Errors & Omissions) Insurance.

Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the 414
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effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. (D) Workers’ Compensation Insurance. Consultant shall
maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers, and representatives.
(E) Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant shall 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:
(1) 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;
(2) Pay on behalf of wording as opposed to reimbursement; (3) Concurrency of effective dates with primary policies; and (4) Policies shall “follow form” to the underlying primary policies.
(5) Insureds under primary policies shall also be insureds under the umbrella or excess policies.
(4) Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name
infringement or improper deep-linking or framing, and
infringement or violation of intellectual property rights. (5) Liability arising from the failure to render professional services
If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for an additional period of three (3) years following termination of the Agreement.

3.2.11.2 Other Provisions or Requirements.
(A) Proof of Insurance. Consultant 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 Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
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(B) Duration of Coverage. Consultant shall procure and
maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his/her agents, representatives, employees or subconsultants. (C) Primary/Non-Contributing. Coverage provided by
Consultant 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 selfinsurance 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 Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may terminate this Agreement.
(E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(G) Enforcement of Contract Provisions (non estoppel).

Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant 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 Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 416
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(I) Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, 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 Consultant’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. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review.
(N) City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant’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. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(Q) Additional Insurance. Consultant 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 Services. 417
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3.2.12 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority.

Consultant must comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. Failure to comply with laws, regulations, and ordinances listed in this Section is a violation of federal and state law. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations, and policies of this Section.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed one hundred forty-five thousand dollars ($145,000.00) for the first year plus 4% annual cost adjustment in each subsequent year without written approval of the City Council or City Manager, as applicable.

3.3.2 Payment of Compensation. Consultant shall submit to City monthly invoices which provide a detailed description of the Services and hours rendered by Consultant.

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

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

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.4 Labor Code Requirements.

3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or 418
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"maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, agents, 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.

3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of Services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, agents, volunteers and representatives free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant.

3.4.3 Labor Certification. By its signature hereunder, Consultant 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 Worker's 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.

3.5 Accounting Records.

3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant 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. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.6 General Provisions.

3.6.1 Termination of Agreement.

3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by 419
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giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.

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

3.6.1.3 Early Termination. Notwithstanding any provision herein to the contrary, if for any fiscal year of this Agreement the City Council fails to appropriate or allocate funds for future payment under the Agreement after exercising reasonable efforts to do so, the City may upon seven (7) days’ written notice, order work on the Project to cease. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation.

3.6.1.4 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.

3.6.2 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:

Consultant: HF&H Consultants, LLC
2081 Business Center Drive, Suite 265
Irvine, CA 92612
ATTN: Haley Kunert, Senior Project Manager
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: Economic Development Department
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.

3.6.3 Ownership of Materials and Confidentiality.

3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data 420
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magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents.

3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsultants, or those provided to Consultant by the City.

3.6.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents, and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment, or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.

3.6.3.4 Indemnification – Documents and Data. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted.

3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in 421
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connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.6.3.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information.

Consultant shall indemnify, defend, and hold harmless the City, and its officers, directors, employees, agents, volunteers and representatives from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.6.4 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.

3.6.5 [Reserved]

3.6.6 Indemnification.

3.6.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subconsultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, volunteers, or representatives.

3.6.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be 422
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limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.6.7 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.

3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County.

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

3.6.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.6.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties.

3.6.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services 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.

3.6.13 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 Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, 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.

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

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

3.6.16 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. 423
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3.6.17 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.

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

3.6.19 Authority to Enter Agreement. Consultant 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.

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

3.6.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT

AND HF&H CONSULTANTS, LLC
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

HF&H CONSULTANTS, A LIMITED

LIABILITY COMPANY
By:

Its:

President
Printed Name:

Rob Hilton
By:

Its:

Senior Vice President
Printed Name:

Laith Ezzet
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
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EXHIBIT “A”

SCOPE OF SERVICES
The following represents the general scope of work for Project:

C. Support the City with SB 1383 requirements such as edible food recovery, record keeping, reporting, waiver administration, and enforcement.

A. Maintain a checklist of all contract requirements and due dates contained in the contract.

C. Prepare monthly progress and diversion reports for the City.

E. Review records associated with all required waste audits and contamination monitoring including Hauler’s facilities and at residential, multi-family, and business properties.

F. Assist the City with processing any request for a rate increase or other requests pursuant to the Hauler’s contract requirements.

G. Assist with contract amendments, if necessary.
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Examples of other duties as assigned are as follows:

A. Research and evaluate potential solid waste, recycling, and organics programs and outreach initiatives required to comply with applicable state law.

B. Support with evaluating staffing needs to implement programs and initiatives.

C. Assist with drafting City ordinances related to solid waste, recycling, and organics services.

5. Additional Services. The Consultant is invited to offer additional services at their discretion to ensure for successful support of existing programs, compliance with state solid waste and recycling mandates, and administration of the Hauler’s agreement. 427
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EXHIBIT "B"

SCHEDULE OF SERVICES
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EXHIBIT "C"

COMPENSATION
HF&H Consultants will perform the scope of work based on time and materials, not to exceed $145,000 for the first contract year. The annual base service cost will adjust by four percent (4%) as estimated in the table below.

Professional Fees
Hourly rates for professional and administrative personnel through December 31, 2025 are listed below, and will adjust by four percent (4%) each January 1 thereafter:

Position Hourly Rate
Executive $329 - $365
Senior Project Manager $299 - $320
Manager $265 - $295
Senior Associate $220 - $260
Associate Analyst $195 - $210
Assistant Analyst $165 - $185
Administrative Staff $125 - $160
Direct Expenses
Standard charges for common direct expenses are as follows:

Automobile Travel Prevailing IRS mileage rate
Telephone No charge
Public Conveyances Actual
Outside Reproduction Actual
Postage, Overnight Mail, Couriers Actual
Other out-of-pocket expenses Actual
In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino-Ontario, CA. 429
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Palm Desert City CouncilDecember 12, 2024

Palm Desert City Council
December 12, 2024