Agenda packet, regular meeting — Palm Desert City Council, June 12, 2025 (part 2 of 11)

ADDENDA CONFIRMATION
No addenda issued

QUESTIONNAIRE

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

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

2. Experience and Technical Competence
A. Background: Provide history of the firm’s consulting experience which specifically addresses the individual or firm’s experience with similar Service as described in this RFP.

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

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

B. Key Personnel: Identify key persons that will be principally responsible for working with the Authority. Indicate the role and responsibility of each individual.
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Request For Proposal - Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes - Updated Pricing Proposal

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

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

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

Fred_Rock_Pools_Inc._Commercial_Pool_and_Spa_Maintenance_and_Repair_Service_at_Apartment_Complexes_(Addendum_#2_Re vision).pdf

2. Non-Collusion Declaration*
The undersigned declares:

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

The Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The Bid is genuine and not collusive or sham. The Bidder has not directly or indirectly induced or solicited any other Bidder to put in a false or sham bid. The Bidder has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone else to put in a sham bid, or to refrain from bidding. The Bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the Bid Price of the Bidder or any other Bidder, or to fix any overhead, profit, or cost element of the Bid Price, or of that of any other Bidder. All statements contained in the Bid are true. The Bidder has not, directly or indirectly, submitted his or her Bid Price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose. 259
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Request For Proposal - Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes - Updated Pricing Proposal

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

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

Confirmed

3. Enter your valid CA Contractors State License Board (CSLB) number* Please enter your License Number here. This will be verified against the state database. 924163
Click to Verify Value will be copied to clipboard

4. Enter your California Department of Industrial Relations (DIR) Registration number* Please enter your Public Works Contractor DIR Number. This will be verified against the state database. 2000007385
Click to Verify Value will be copied to clipboard

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

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

N/A
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Request For Proposal - Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes - Updated Pricing Proposal

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7. Changes to Agreement*
The Authority standard professional services agreement contract is included as an attachment herein. The Proposer shall identify any objections to and/or request changes to the standard contract language in this section of the proposal (or type "N/A"). If you are identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect theAuthority's decision to enter into an Agreement.

N/A

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

Maximum response length: 5000 characters
N/A

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

Cover_letter_Expirence_Key_personnel.pdf

10. List the Signatory(s) Authorized to Sign and Bind an Agreement.* (If two (2) signatures are required, include the following information for both signatories)

1. Full Name

2. Title

3. Physical Business Address

4. Email Address
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Request For Proposal - Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes - Updated Pricing Proposal

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5. Phone Number
Alfredo V. Esparza
President/Owner of Fred Rock Pools, Inc.
68090 Bella Vista Rd. Cathedral City, Ca. 92234
[email protected]
760-343-6279

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

PRICE TABLES

DAILY MAINTENANCE COST PROPOSAL
The undersigned, hereby declare that they have carefully examined the location of the proposed work, familiarized themselves with the local conditions affecting the cost of the work, and have read and examined the terms and conditions for the following project:
“COMMERCIAL POOL AND SPA MAINTENANCE AND REPAIR SERVICE AT APARTMENT COMPLEXES” The undersigned, hereby propose to furnish all labor, materials, equipment, tools, transportation, and services, and to discharge all duties and obligations necessary and required to perform and complete the Project in strict accordance with the Vendor Price Quote. It is understood that the price shown herein includes all routine and daily maintenance described in the Scope of Services of the RFP and shall be inclusive of all costs for the Proposer to accomplish the work. For each item, the averaged one-month maintenance cost shall be indicated, and the total of these costs shall be extended for the two-year term of the Agreement:
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Request For Proposal - Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes - Updated Pricing Proposal

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Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 California Villas 77-107 California Drive (1) Swimming Pool 1 Month $950.00 $950.00 2 California Villas 77-107 California Drive (1) Spa 1 Month $300.00 $300.00 3 Candle Wood 74000 Shadow Mountain Drive (1) Swimming Pool 1 Month $730.00 $730.00 4 Candle Wood 74000 Shadow Mountain Drive (1) Spa 1 Month $300.00 $300.00 5 Carlos Ortega Villas 77-915 Avenue of the States (1) Swimming Pool 1 Month $730.00 $730.00 6 Catalina Gardens 73-600A Catalina Way (1) Swimming Pool 1 Month $730.00 $730.00 7 Desert Pointe 43-805 Monterey Avenue (1) Swimming Pool 1 Month $730.00 $730.00 8 Laguna Palms 73875 Santa Rosa Way (1) Swimming Pool 1 Month $730.00 $730.00 9 Las Serenas 73-315 Country Club Drive (3) Swimming Pools 1 Month $2,850.00 $2,850.00 10 Las Sernas 73-315 Country Club Drive (1) Spa 1 Month $300.00 $300.00 11 Neighbors 73-535 Santa Rosa Way (1) Swimming Pool 1 Month $730.00 $730.00 12 One Quail Place 72-600 Fred Waring Drive (4) Swimming Pools 1 Month $4,230.00 $4,230.00 13 One Quail Place 72-600 Fred Waring Drive (4) Spas 1 Month $1,200.00 $1,200.00 14 Taos Palms 44-830 Las Palmas Avenue (1) Swimming Pool 1 Month $730.00 $730.00 15 The Pueblos 73-695 Santa Rosa Way (1) Swimming Pool 1 Month $730.00 $730.00 TOTAL $15,970.00
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Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes - Updated Pricing Proposal [FRED ROCK POOLS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes - Updated Pricing Proposal

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YEARLY COST PROPOSAL
Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 California Villas 77-107 California Drive (1) Swimming Pool 1 Year $11,400.00 $11,400.00 2 California Villas 77-107 California Drive (1) Spa 1 Year $3,600.00 $3,600.00 3 Candle Wood 74000 Shadow Mountain Drive (1) Swimming Pool 1 Year $8,760.00 $8,760.00 4 Candle Wood 74000 Shadow Mountain Drive (1) Spa 1 Year $3,600.00 $3,600.00 5 Carlos Ortega Villas 77-915 Avenue of the States (1) Swimming Pool 1 Year $8,760.00 $8,760.00 6 Catalina Gardens 73-600A Catalina Way (1) Swimming Pool 1 Year $8,760.00 $8,760.00 7 Desert Pointe 43-805 Monterey Avenue (1) Swimming Pool 1 Year $8,760.00 $8,760.00 8 Laguna Palms 73875 Santa Rosa Way (1) Swimming Pool 1 Year $8,760.00 $8,760.00 9 Las Serenas 73-315 Country Club Drive (3) Swimming Pools 1 Year $34,200.00 $34,200.00 10 Las Sernas 73-315 Country Club Drive (1) Spa 1 Year $3,600.00 $3,600.00 11 Neighbors 73-535 Santa Rosa Way (1) Swimming Pool 1 Year $8,760.00 $8,760.00 12 One Quail Place 72-600 Fred Waring Drive (4) Swimming Pools 1 Year $50,760.00 $50,760.00 13 One Quail Place 72-600 Fred Waring Drive (4) Spas 1 Year $14,000.00 $14,000.00 14 Taos Palms 44-830 Las Palmas Avenue (1) Swimming Pool 1 Year $8,760.00 $8,760.00 15 The Pueblos 73-695 Santa Rosa Way (1) Swimming Pool 1 Year $8,760.00 $8,760.00 264
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Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes - Updated Pricing Proposal [FRED ROCK POOLS, INC.] RESPONSE DOCUMENT REPORT
Request For Proposal - Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes - Updated Pricing Proposal

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Line Item Description Quantity Unit of
Measure
Unit Cost Total
TOTAL $191,240.00

ADDITIONAL SERVICES COST PROPOSAL
Extra/Additional Work and/or Emergency Responses are subject to Authority authorization. Written estimates shall be submitted for approval prior to the purchase of parts and/or installation thereof. Provide hourly costs associated with the types of services listed that are outside of the scope of daily maintenance:

Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 Response to emergency call out within 2 hours of notification 1 Hourly $150.00 $150.00 2 Emergency Equipment Repairs (safety hazard resulting from callout) 1 Hourly $100.00 $100.00 3 Equipment Repairs Outside of Daily Maintenance 1 Hourly $100.00 $100.00 4 Extra work not pertaining to normal maintenance service. 1 Hourly $100.00 $100.00 5 Other extra work outside of routine maintenance 1 Hourly $100.00 $100.00 TOTAL $550.00
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1 FRED ROCK POOLS INC.

P.O. Box 1266
Cathedral City, CA 92235
Phone: (760) 343-6279
Fax: (760) 424-8139
Email: [email protected]
License No. 924163 (C-53 Swimming Pool Contractor) /DIR #2000007385 May 8, 2025
To:

Housing Authority of the County of Riverside
Finance Department
5555 Arlington Avenue
Riverside, CA 92504
Project Contact
Celina Cabrera
Management Analyst
Email: [email protected]
760-776-6449
Procurement Contract
Cristal Ortega
Management Analyst
Email: [email protected]
ph:760-776-6327
Subject: Proposal Submission for RFP #2025-RFP-170 – Commercial Pool and Spa Maintenance and Repair Service at Apartment Complexes
A. Cover Letter
Dear Selection Committee,
Fred Rock Pools Inc. is pleased to submit this proposal in response to RFP #2025-RFP-170 for Commercial Pool and Spa Maintenance and Repair Services. Established in 2008, our firm has built a reputation for quality, reliability, and strict compliance with health and safety standards. 266
2 As a licensed California C-53 Swimming Pool Contractor (License #924163), we are fully qualified and equipped to deliver the full range of services outlined in your request, from daily water treatment to complex equipment maintenance and emergency response.

Under the leadership of owner Alfredo V. Esparza, our team brings over 15 years of professional experience in the pool and spa industry. Our technicians are thoroughly trained in all aspects of pool maintenance and repair, including:
● Daily chemical balancing, brushing, vacuuming, and debris removal ● Skimming and cleaning of all pools and spas in accordance with Riverside County Health Department and California Department of Public Health requirements ● Detailed record-keeping of chemical levels and services performed ● Preventative equipment maintenance: pumps, filters, heaters, controllers, and auto-fill systems
● Reporting and coordination of necessary repairs and warranty services ● Adherence to all applicable Cal/OSHA and environmental health regulations ● Timely emergency responses within a 2-hour window
We commit to delivering exceptional, code-compliant service with a focus on safety, reliability, and accountability. Our team will maintain clean and functional equipment rooms, ensure regular communication with Authority personnel, and submit all required documentation including daily logs, monthly condition reports, and repair summaries.

Our executive approach is built around consistency, transparency, and responsiveness. We will deploy qualified personnel to manage day-to-day operations, ensure full documentation for audits, and use a proactive communication strategy to avoid downtime or compliance issues.

Authorized to negotiate terms and compensation on behalf of Fred Rock Pools Inc. is:

Alfredo V. Esparza
Owner, Fred Rock Pools Inc.

P.O. Box 1266
Cathedral City, CA 92235
Phone: (760) 343-6279
267
3 Fax: (760) 424-8139
Email: [email protected]
We appreciate your consideration of our proposal and welcome the opportunity to support the Housing Authority with reliable, professional pool and spa maintenance services.

Sincerely,
Alfredo V. Esparza
Owner, Fred Rock Pools Inc.

B. Experience and Technical Competence

1. Background
Fred Rock Pools Inc., established in 2008, brings over 15 years of proven expertise in pool and spa maintenance, repairs, and consultation services. As a licensed C-53 Swimming Pool Contractor (CA License #924163), we have successfully served a wide variety of multi-unit residential and resort-style properties across Riverside County and surrounding regions. Our company has a deep understanding of public health regulations, environmental safety, and best practices in pool care that are critical for properties governed by high compliance standards.

Owner Alfredo V. Esparza has provided years of expert consulting focused on optimizing long-term pool performance, safety, and cost-efficiency. His work includes developing tailored cleaning and maintenance programs, conducting site audits, providing emergency preparedness planning, troubleshooting chemical and mechanical issues, and ensuring full compliance with regulations set forth by the Riverside County Environmental Health Department and Cal/OSHA.

Our service model emphasizes:
● Routine and preventative maintenance designed to minimize downtime and costly repairs ● Custom chemical balancing procedures for year-round water clarity and safety ● Equipment inspection protocols that support early detection of issues ● On-site personnel training and support for property managers and maintenance staff ● Emergency response strategies and safety plan development for high-risk scenarios 268
4 We are proud of our long-term client relationships and consistently deliver reliable, responsive, and regulation-compliant pool and spa services.

2. References – Relevant Projects
Below is a selection of recently completed projects that reflect our experience with pool and spa maintenance, resurfacing, equipment upgrades, and ongoing service responsibilities that match the scope and function of this RFP:

Desert Breezes Resort
Location: 77-955 Calle Las Brisas S., Palm Desert, CA 92211 Client Contact: Alvin Hippe, General Manager
Phone: (760) 345-2637 ext. 306
Email: [email protected]
Project Description:

Full-service pool remodeling and maintenance. Services included resurfacing of main pool and (3) spas, chemical start-up procedures, skimmer replacement, and establishment of ongoing pool and spa maintenance program in compliance with Riverside County Health Department standards.

Cathedral Canyon Country Club HOA #18
Contact: Kai Kushen
Phone: (760) 799-5895
Client: Personalized Property Management
Project Description:

Maintenance and service of Pools #1, #2, and #3. Services included leak detection, VGB (Virginia Graeme Baker Act) drain compliance, full resurfacing, chemical start-up procedures, and monthly maintenance scheduling. Ongoing consultation provided to property management to improve long-term system performance.

Tuscany Villas
Location: 703 Allegheny Ave. #27, Beaumont, CA 92223
Contact: Tony
Phone: (909) 993-3011
Project Description:

VGB compliance upgrades, spa tile bead blasting, resurfacing, installation of secure handrails, 269
5 chemical system start-up, and initiation of a customized maintenance program. Project included a post-renovation facility audit and emergency protocol consultation to ensure compliance and preparedness.

Fred Rock Pools Inc. is committed to delivering high-quality, compliant, and proactive pool and spa services backed by a depth of technical knowledge and a focus on client-specific needs. 270
6 C. Firm Staffing and Key Personnel

1. Staffing
Fred Rock Pools Inc. will assign a dedicated team of experienced professionals to perform the daily, preventative, and emergency pool and spa maintenance services required under this contract. The following staff members will be directly assigned to this project:
● Alfredo V. Esparza – Owner / Field Supervisor
● Michael Nieto – Pool Maintenance Technician II
● Alfredo Esparza Jr. – Pool Maintenance Technician I
● Saul Chavez – Pool Maintenance Technician I
These individuals have extensive experience in routine pool service, equipment maintenance, chemical balancing, VGB compliance, and emergency response. All field staff are fully trained in Cal/OSHA safety regulations and health department protocols.

Fred Rock Pools Inc. also has a workforce of 16 additional trained employees who can be mobilized immediately to support this project, ensuring adequate staffing at all times, including coverage for holidays, absences, or emergency situations.

2. Key Personnel
The following individuals will be principally responsible for managing and coordinating all services with the Authority:
● Alfredo V. Esparza – Owner / Staff Manager
Role: Principal contact for the Authority; oversees all service operations, quality assurance, compliance with health regulations, and emergency response coordination. He will also handle communications regarding service performance, repairs, and any escalated issues.
● Magdalena Rojo – Administrative Assistant
Role: Handles scheduling, documentation, reporting, and administrative support. She will ensure the timely submission of daily logs, monthly reports, repair records, and all required communications with the Authority.

3. Team Organization
271
7 Fred Rock Pools Inc. operates under a clearly defined organizational structure to ensure efficient delivery of services and accountability:
● Alfredo V. Esparza serves as both Owner and Field Supervisor, providing direct oversight of all pool technicians, coordinating service schedules, ensuring compliance with standards, and interfacing with the Authority.
● Field Technicians I & II (Nieto, Esparza Jr., Chavez) are responsible for the hands-on daily maintenance of all pools and spas, including chemical balancing, skimming, brushing, vacuuming, basket cleaning, and equipment checks. ● Magdalena Rojo ensures administrative coordination, documentation tracking, and accurate reporting, maintaining all service logs and communication records required by the Authority.

This team is structured to deliver consistent, high-quality service with minimal reliance on external resources and maximum responsiveness to Authority needs.

4. Subcontractors
Fred Rock Pools Inc. is fully self-contained and capable of performing all services in-house.

No subcontractors will be utilized for this contract. All work—including daily maintenance, preventative equipment servicing, reporting, repairs, and emergency response—will be performed by trained Fred Rock Pools Inc. personnel to ensure quality control and clear accountability.

D. Proposed Method to Accomplish the Work

1. Technical and Management Approach
Fred Rock Pools Inc. will deliver comprehensive, compliant, and proactive commercial pool and spa maintenance services by applying a structured, safety-focused approach based on over 15 years of industry experience. Our method integrates daily operational consistency, preventive maintenance, responsive repair management, detailed documentation, and regulatory compliance to ensure the highest standards in water safety, cleanliness, and equipment functionality.

Our technical and management approach includes the following key components:

A. Daily Pool and Spa Service Execution
272
8 ● Technicians will visit each site daily to inspect and service all pools and spas in accordance with Riverside County Health Department, California Department of Public Health, and Cal/OSHA standards.
● Tasks include:
○ Skimming, vacuuming, brushing, and emptying baskets.
○ Measuring and adjusting chlorine, pH, alkalinity, calcium hardness, and cyanuric acid levels.
○ Cleaning tiles, inspecting pool surfaces, and checking for cracks or leaks. ○ Ensuring no debris from maintenance remains by end-of-day. ● Technicians will calibrate automatic controllers, check autofill valves, and make real-time adjustments as needed.

B. Preventive Maintenance Program
● Monthly inspection of pool equipment rooms, ensuring cleanliness, equipment function, and identifying early signs of wear or failure.
● Scheduled maintenance of pumps, filters, heaters, valves, and controllers, including lubrication, seal replacement, and filter backwashing/cleaning. ● Any potential concerns will be logged and brought to the attention of the Authority via the 30-Day Comprehensive Pool and Equipment Update Report.

C. Chemical Handling and Compliance
● All chemicals will be handled off-site unless specific regulatory documentation permits limited on-site storage.
● Technicians are trained in Cal/OSHA chemical safety standards, using appropriate PPE and safe transport/storage protocols.
● MSDS sheets will be maintained for all chemicals used. 273
9 D. Documentation and Reporting
● Daily service logs will include date, time, chemical levels, adjustments made, services performed, and technician signature.
● Logs will be submitted weekly to property management. ● Monthly reports will summarize all maintenance activities, equipment status, and any repairs or upcoming needs.
● All repair activities will be logged separately and made available for audit upon request.

E. Repair Services and Warranty Tracking
● All non-routine repair work will be proposed in writing and submitted for prior approval. ● Repair logs will include part numbers, cost breakdowns, warranty status, and detailed action summaries.
● Fred Rock Pools Inc. will manage warranty claims directly with manufacturers and provide timely status updates to the Authority.

F. Emergency Response
● Emergency response service will be available 24/7, with a guaranteed 2-hour response time for hazards impacting public safety or operations. ● All emergency actions will be followed up with written documentation and recommended follow-up work, if needed.
274
10 2. Year One – Draft Schedule of Tasks, Milestones, and Deliverables Month Tasks & Milestones Deliverables
Month 1 - Onboarding with Authority
- Site audits of each property
- Baseline chemical testing & equipment
inventory
- Establish reporting schedule
- Initial Site Audit Reports
- Equipment Inventory List
- Weekly Logs Begin
Months 2–12 - Daily pool and spa service
- Weekly log submission
- Monthly equipment room inspections
- Preventive maintenance as scheduled
- Equipment calibration
- Emergency response readiness
maintained
- Weekly Logs
- Monthly Pool, Spa, and
Equipment Reports
- Repair Logs (as needed)
- Warranty Updates (as
needed)
Quarterly (Every 3
Months)
- Internal team review of each site
- Adjustments to service plan as needed
- Internal Service Review
Summaries
End of Year - Annual assessment of service
performance
- Recommendations for Year Two
upgrades/improvements
- Year-End Service Report
- Renewal Plan Proposal
275
11 Fred Rock Pools Inc. is confident in our capacity to exceed service expectations while maintaining regulatory compliance and public safety.
276
12 Michael Nieto
69991 Papaya Lane
Cathedral City, CA 92234
📞 (760) 673-6600
✉️ [email protected]
Objective
Dedicated and experienced Pool Technician with over 8 years of hands-on expertise in pool maintenance and plumbing. Committed to delivering high-quality service, ensuring client satisfaction, and maintaining safe, clean, and functional swimming environments.

Professional Experience
Extreme Clean Pool Service – Cathedral City, CA
Pool Technician / Pool Maintenance & Plumbing
February 2016 – Present
● Perform routine pool maintenance including skimming, vacuuming, brushing, and chemical balancing.
● Diagnose and repair pool equipment including pumps, filters, heaters, and automated systems.
● Conduct plumbing tasks such as pipe installation, leak detection, and repair. ● Educate clients on proper pool care and safety measures. ● Maintain accurate service records and schedule follow-ups to ensure optimal pool condition.
● Respond promptly to customer service calls and emergency repair requests.

Education
Cathedral City High School – Cathedral City, CA
High School Diploma, 1997
Skills
● Water chemistry and chemical balancing
● Pool equipment installation and repair
277
13 ● Leak detection and pipe repairs
● Pool automation systems
● Customer service and communication
● Time management and scheduling
● Safety compliance and regulation knowledge
● Troubleshooting mechanical and plumbing issues
● Seasonal pool opening and closing procedures
● Equipment maintenance and tool handling
278
14 Alfredo Esparza Jr.
68090 Bella Vista Road
Cathedral City, CA 92234
📞 (760) 641-0740
✉️ [email protected]
Objective
Motivated and reliable Pool Maintenance Technician with hands-on experience in residential and commercial pool care. Skilled in routine servicing, troubleshooting, and specialized tasks including acid washing. Dedicated to ensuring clean, safe, and fully operational pool environments for clients.

Professional Experience
Fred Rock Pools Inc. – Cathedral City, CA
Pool Maintenance Technician
November 2022 – Present
● Perform routine cleaning services including skimming, vacuuming, brushing, and filter maintenance.
● Test and balance water chemistry for safe and optimal pool conditions. ● Conduct acid washes to restore pool surfaces and improve appearance. ● Identify and troubleshoot equipment issues such as pump or filtration failures. ● Assist with minor pool plumbing and system repairs.
● Provide friendly and informative customer service to residential and commercial clients. ● Keep detailed service logs and communicate regularly with management regarding pool conditions.

Education
Rancho Mirage High School – Rancho Mirage, CA
High School Diploma, 2024
Skills
279
15 ● Pool water chemistry & balancing
● Acid washing and surface restoration
● Pool vacuuming and debris removal
● Filter cleaning and maintenance
● Equipment troubleshooting and minor repairs
● Routine pool servicing and inspections
● Knowledge of pool safety protocols
● Reliable time management and route efficiency
● Strong communication and customer service
● Basic plumbing related to pool systems
280
16 Saul Chavez
31190 Avenida El Pueblo
Cathedral City, CA 92234
📞 (442) 218-6368
✉️ [email protected]
Objective
Experienced and versatile professional with a strong background in sales, management, and pool maintenance. Proven success in overseeing commercial pool operations and managing teams, projects, and client relations. Seeking opportunities to apply leadership, technical, and customer service skills in a dynamic and results-driven environment.

Professional Experience
Fred Rock Pools – Cathedral City, CA
Sales, Pool Technician, Pool Maintenance, Site Supervisor April 2018 – Present
● Supervise teams in the daily maintenance and servicing of commercial and residential pools.
● Ensure compliance with health and safety standards in commercial pool environments. ● Manage schedules, assign routes, and oversee quality control for all service technicians. ● Maintain client relationships and assist with sales of new maintenance packages and equipment upgrades.
● Perform technical services including chemical balancing, equipment repair, and troubleshooting.
● Conduct staff training on best practices and safety procedures.

Owner – The Block Bar and Grill – Cathedral City, CA
September 2012 – March 2018
● Oversaw all aspects of restaurant operations, including staffing, budgeting, vendor relations, and customer satisfaction.
281
17 ● Developed marketing strategies and community partnerships to drive business growth. ● Managed payroll, inventory, and compliance with health and safety regulations. ● Built and led a cohesive team to provide excellent service in a fast-paced environment.

Manager – A & J’s Moving and Delivery – Cathedral City, CA April 2003 – June 2012
● Managed moving crews and delivery schedules across the Coachella Valley region. ● Handled customer service, scheduling, conflict resolution, and logistics coordination. ● Ensured safe handling of items and client satisfaction during relocation projects.

Sales Representative – United Rentals – Palm Springs, CA February 1996 – February 2003
● Provided equipment rental solutions to commercial clients in the construction industry. ● Built a loyal customer base through exceptional service and consistent follow-up. ● Coordinated deliveries and returns with dispatch and logistics teams.

Education
Mt. San Jacinto High School – San Jacinto, CA
High School Diploma, June 1992
Skills
Management & Leadership:
● Team supervision and staff development
282
18 ● Route scheduling and task delegation
● Client relationship management
● Commercial pool compliance and safety oversight
● Budgeting and cost control
● Operations and logistics management
● Performance monitoring and quality assurance
Technical & Industry-Specific:
● Pool chemical testing and water balancing
● Equipment installation and troubleshooting
● Commercial pool system oversight
● Filter, pump, and heater maintenance
● Knowledge of pool safety and regulatory compliance
● Sales of pool services and equipment upgrades
283
MV Magdalena V. Rojo
CATHEDRAL CITY, CA 92234 442-402-8353
[email protected]

PROFESSIONAL

SUMMARY
Administrative professional with a history of meeting company goals utilizing organized practices. Skilled in working under pressure and adapting to new situations and challenges to best enhance the company brand.

SKILLS Customer Relations
Team building
Exceeding sales goals
Workflow Planning
Stock Management
Special Assignments
Problem-Solving Strengths
Profit and Loss Control
WORK HISTORY OFFICE MANAGER 05/2015 to CURRENT
Fred Rock Pools, Inc. | PO Box 790
Maintained computer and physical filing systems.

Created, maintained and updated filing systems for paper and electronic documents.

Updated reports, managed accounts, and generated reports for company database.

Coordinated special projects and managed schedules.

Process weekly payroll, payroll taxes & monthly reconciliation in quickbooks
Record keeping, bookkeeping, QuickBooks knowledgeable
Developed and maintained successful relationships with vendors, suppliers and contractors.

STORE MANAGER 11/2009 to 05/2015
Tween Brands Inc. Justice | Palm Desert, CA
Managed inventory control, cash control, and store opening and closing procedures. Store 458 was awarded #1 in shrink control in the district in 2011
Managed store employees successfully in fast-paced environment through proactive communication and positive feedback and role playing with sales associates and lead staff,
Completed point of sale opening and closing procedures.

Rotated merchandise and displays to feature new products and promotions.

Maintained proper product levels and inventory controls for merchandise and organized backroom to facilitate effective ordering and stock rotation. 284
Assisted with hiring, training and mentoring new staff members.

Maximized sales to exceed monthly goals & continuously hold #1 store in district
Minimized shrinkage through excellent customer service and adherence to standard practices.

ASSISTANT MANAGER 01/1996 to 03/2000
Vons Palm Springs, CA
Supervised day-to-day operations to meet performance, quality and service expectations.

Completed regular inventory counts to verify stock levels, address discrepancies, and forecast future needs.

Offered hands-on assistance to customers, assessing needs, and maintaining current knowledge of consumer preferences.

Helped with planning schedules
Developed loyal and highly satisfied customer base through proactive management of team customer service strategies.

Mentored team members to enhance professional development and accountability in workplace.

EDUCATION High School Diploma 06/1994
Palm Springs High School, Palm Springs, CA
285
286

Page 1 of 2 ends

PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: June 12, 2025
PREPARED BY: Celina Cabrera, Senior Management Analyst
SUBJECT: AUTHORIZE THE USE OF QUILL, WAXIE, LOWE’S, HD SUPPLY, HOME

DEPOT, AND SHERWIN WILLIAMS FOR OPERATIONAL SUPPLIES

FOR THE PALM DESERT HOUSING AUTHORITY FOR FISCAL YEAR
2025-26
RECOMMENDATION:

1. Authorize Quill, LLC, for recurring office supplies in an amount not to exceed $17,000.

2. Authorize Brady Plus dba Waxie Sanitary Supply for recurring purchase of janitorial and sanitary supplies in an amount not to exceed $17,000.

3. Authorize Lowe’s Home Centers, Inc., for recurring purchase of materials, supplies, and appliances in an amount not to exceed $215,000.

4. Authorize Home Depot U.S.A., Inc., for recurring purchase of materials and supplies in an amount not to exceed $55,000.

5. Authorize HD Supply Facilities Maintenance for recurring purchase of materials and supplies in an amount not to exceed $230,000.

6. Authorize Sherwin Williams Company for recurring purchase of paint and supplies in an amount not to exceed $45,000.

7. Authorize the disposal and recycling of inefficient, damaged, obsolete, and non-functioning appliances as appropriate in accordance with Environmental Protection Agency (“EPA”) standards and declare a surplus at the time of removal from the properties.

BACKGROUND/ANALYSIS:

The Palm Desert Housing Authority (“Authority”) property management conducts recurring purchases of a variety of items for the Authority owned properties throughout the year such as cabinets, counter tops, appliances, paint, building materials, plumbing supplies, bathroom fixtures, janitorial supplies, tools, office supplies, and any other necessary miscellaneous maintenance, repair, and operating supplies.

Since 2012, the Authority has secured national government cooperative pricing by being members to the national cooperative Omnia Partners. Quill, Waxie, Lowe’s, Home Depot, HD Supply, and Sherwin Williams are national cooperative contract holders. Omnia Contract numbers are R190304, 152610, R240805, 16154, 2020002299, and 02-147 respectively. All have confirmed to extend their national cooperative contract pricing and terms to the Authority, pursuant to the Muni Code. Palm Desert Municipal Code Section 3.30.160(E) allows participation in cooperative pricing when a competitive bid has already been completed.

The procurement of appliances from Lowe’s includes delivery and, whenever appropriate, the removal and recycling of old appliances. Staff request authorization to dispose of or recycle all appliances removed from the Properties in accordance with EPA standards for responsible 287
Palm Desert Housing Authority
Authorize the Use of Multiple OMNIA Partner Vendors for FY 2025/26

Page 2 of 2 ends

appliance disposal at appropriate recycling centers. Such disposed of or recycled inefficient, damaged, obsolete, and non-functioning appliances are also requested to be declared as surplus at the time they are removed,
Requested amounts for each of the vendors are based on the actual expenses of the current fiscal year (FY 2024-25 YTD) plus 10%.

Legal Review:

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

Appointed Body Recommendation:

The Housing Commission reviewed this item at their May 14, 2025 meeting and approved recommendation to the Housing Authority Board with a 5-0 vote.

FINANCIAL IMPACT:

The FY 2025-26 Proposed Annual Budget includes funding in the respective Authority Complex accounts for each of the properties. Therefore, there is no financial impact to the General Fund with this action.

ATTACHMENTS:

1. Omnia Partners Participation Letter- Quill, LLC

2. Omnia Partners Participation Letter- Brady Plus dba Waxie Sanitary Supply

3. Omnia Partners Participation Letter- Lowe’s Home Centers, Inc.

4. Omnia Partners Participation Letter- Home Depot U.S.A., Inc.

5. Omnia Partners Participation Letter- HD Supply Facilities Maintenance

6. Omnia Partners Participation Letter- The Sherwin Williams Company 288
289
290
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com

March 13, 2025
To Whom It May Concern:

Palm Desert Housing Authority submitted a participation form and was accepted as a member of OMNIA Partners on September 26th, 2012.

The OMNIA Partners Participation Number assigned to the Palm Desert Housing Authority is:
4001732.

Palm Desert Housing Authority is currently participating in OMNIA Partners Contracts with Lowes Home Centers, Inc., Home Depot U.S.A., Inc., HD Supply Facilities Maintenance, SherwinWilliams, The Garland Company, Inc., Waxie Sanitary Supply, Quill Corporation, Engineered Floors & Mohawk industries.

Palm Desert Housing Authority has requested access to Brady Plus (Waxie) contract number 152610, Jan San supplies, maintenance repairs, operational supplies and services and food services disposables. Palm Desert Housing Authority has been granted access to utilize Brady Plus (Waxie) Contract number 152610, Jan San supplies, maintenance repairs, operational supplies and services and food services disposables, pending their board approval.

Your dedicated Regional Manager is Ann Larson, [email protected].

Thank you for your participation with OMNIA Partners.

Sincerely,
291
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com
Doug Brown
Senior Director, Membership Operations
292
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com

March 20, 2025
To Whom It May Concern:

Palm Desert Housing Authority submitted a participation form and was accepted as a member of OMNIA Partners on September 26th, 2012.

The OMNIA Partners Participation Number assigned to the Palm Desert Housing Authority is:
4001732.

Palm Desert Housing Authority has requested access to utilize Lowes, Maintenance, Repair & Operations (MRO) Supplies & Related Services. Palm Desert Housing Authority has been granted access to utilize Lowes, Maintenance, Repair & Operations (MRO) Supplies & Related Services , pending their board approval.

Your dedicated Regional Manager is Ann Larson, [email protected].

Thank you for your participation with OMNIA Partners.

Sincerely,
Doug Brown
Senior Director, Membership Operations
293
5001 Aspen G
rove Drive
Franklin, TN 37067
(866) 875-3299| www.omniapartners.com
294
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com

March 20, 2025
To Whom It May Concern:

Palm Desert Housing Authority submitted a participation form and was accepted as a member of OMNIA Partners on September 26th, 2012.

The OMNIA Partners Participation Number assigned to the Palm Desert Housing Authority is:
4001732.

Palm Desert Housing Authority has requested access to The Home Depot contract number 16154, Maintenance, repair, operating &Industrial supplies and related products & services.

Palm Desert Housing Authority has been granted access to utilize The Home Depot contract number 16154, Maintenance, repair, operating &Industrial supplies and related products & services, pending their board approval.

Your dedicated Regional Manager is Ann Larson, [email protected].

Thank you for your participation with OMNIA Partners.

Sincerely,
295
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com
Doug Brown
Senior Director, Membership Operations
296
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com

March 20, 2025
To Whom It May Concern:

Palm Desert Housing Authority submitted a participation form and was accepted as a member of OMNIA Partners on September 26th, 2012.

The OMNIA Partners Participation Number assigned to the Palm Desert Housing Authority is:
4001732.

Palm Desert Housing Authority has requested access to HD Supply contract number 2020002299 , Janitorial Supplies and related products and equipment. Palm Desert Housing Authority has been granted access to utilize HD Supply Contract number 2020002299, Janitorial Supplies and equipment, pending their board approval.

Your dedicated Regional Manager is Ann Larson, [email protected].

Thank you for your participation with OMNIA Partners.

Sincerely,
Doug Brown
297
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com
Senior Director, Membership Operations
298
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com

March 20, 2025
To Whom It May Concern:

Palm Desert Housing Authority submitted a participation form and was accepted as a member of OMNIA Partners on September 26th, 2012.

The OMNIA Partners Participation Number assigned to the Palm Desert Housing Authority is:
4001732.

Palm Desert Housing Authority has requested access to Sherwin-Williams contract number 02- 147, Paint and related products and services. Palm Desert Housing Authority has been granted access to utilize Sherwin-Williams Contract number 02-147, Paint Supplies and related products, pending their board approval.

Your dedicated Regional Manager is Ann Larson, [email protected].

Thank you for your participation with OMNIA Partners.

Sincerely,
Doug Brown
299
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com
Senior Director, Membership Operations
300

Page 1 of 2 ends

PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: June 12, 2025
PREPARED BY: Celina Cabrera, Senior Management Analyst
SUBJECT: APPROVE AMENDMENT NUMBER 1 TO HA48600 WITH MOHAWK

COMMERCIAL FOR THE PROCUREMENT OF FLOOR COVERINGS AT

PALM DESERT HOUSING AUTHORITY PROPERTIES IN AN AMOUNT
NOT TO EXCEED $250,000 FOR FISCAL YEAR 2025-26.

RECOMMENDATION:

1. Approve Amendment No. 1 to contract HA48600 with Mohawk Commercial, Inc. (“Mohawk”) for the procurement of floor coverings and installation at Palm Desert Housing Authority (“Authority”) properties in an amount not to exceed $250,000 for Fiscal Year 2025/26.

2. Authorize Special Counsel to make necessary nonmonetary changes to the agreement.

3. Authorize the Executive Director to execute agreement, amendments, changes, and all documents necessary to effectuate this action in accordance with Section 3.30.170 of the PDMC.

BACKGROUND/ANALYSIS:

On average, Palm Desert Housing Authority (“Authority”) replaces damaged, deteriorated, or inefficient flooring in approximately 20% of its total units annually. Flooring products typically replaced include vinyl, carpet, carpet tile, tile, underlayment, padding, adhesives, and more.

Mohawk Commercial, Inc., is a national government cooperative contract holder with Omnia, offering floor coverings and related supplies at the government cooperative rate. Omnia satisfies the City’s bidding requirements pursuant to Section 3.30.160(E) of the Palm Desert Municipal Code,
On November 14, 2024, the Authority entered contract HA48600 with Mohawk Commercial for floor covering services in an amount not to exceed $175,000 and allows for the renewal for four additional 1-year terms. At that time, Mohawk was added as a flooring contractor. The budget for flooring procurement and installation was split between two contractors: Sid’s Carpet Barn, which installs the product Engineered Floors, and Mohawk. Each had a contract for $175,000 for a combined flooring budget of $350,000.

For FY 2025-26, staff is recommending the use of one national cooperative flooring contractor, Mohawk, for PDHA’s flooring needs. This request is the first amendment to renew for one year, and to increase the not to exceed compensation for one vendor from $175,000 to $250,000.

Legal Review:

This report has been reviewed by the City Attorney’s Office. 301
Palm Desert Housing Authority
Contract HA48600 Amendment No. 1- Mohawk Commercial

Page 2 of 2 ends

Appointed Body Recommendation:

The Housing Commission will review this item at its regular meeting on June 11, 2025. Upon request a verbal report will be provided.

FINANCIAL IMPACT:

The Housing Authority FY 2025-26 proposed budget includes appropriations in the relative Authority Complex account for each of the properties. There is no financial impact to the General Fund with this action.

ATTACHMENTS:

1. Omnia Partners Participation Letter- Mohawk Group

2. Action Stamped Staff Report from November 14, 2024

3. Executed Agreement HA48600

4. Draft Agreement
302
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com

March 20, 2025
To Whom It May Concern:

Palm Desert Housing Authority submitted a participation form and was accepted as a member of OMNIA Partners on September 26th, 2012.

The OMNIA Partners Participation Number assigned to the Palm Desert Housing Authority is:
4001732.

Palm Desert Housing Authority has requested access to Mohawk Group contract number 2020002149, systemwide flooring. Palm Desert Housing Authority has been granted access to utilize Mohawk Group contract number 2020002149, systemwide flooring, pending their board approval.

Your dedicated Regional Manager is Ann Larson, [email protected].

Thank you for your participation with OMNIA Partners.

Sincerely,
Doug Brown
303
5001 Aspen Grove Drive
Franklin, TN 37067
(866) 875-3299 | www.omniapartners.com
Senior Director, Membership Operations
304
YES: 5
NO: 0
ABSTAIN: 0
CONFLICT: 0

ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES Minute Action Summary
Palm Desert City Council - Regular Meeting
Agenda Number: 13.f.

Title: AWARD CONSTRUCTION SERVICES AGREEMENT NO. HA48600 WITH MOHAWK COMMERCIAL, INC., FOR FLOOR COVERINGS AT PALM DESERT

HOUSING AUTHORITY PROPERTIES
Date: Thursday, November 14, 2024
Motion by: Councilmember Nestande
Seconded by: Mayor Pro Tem Harnik
Authorize the use of Mohawk Commercial, Inc., an Omnia Partners (“Omnia”) national government cooperative contract holder for flooring and outdoor surfaces solutions, contract 2020002149, at the Palm Desert Housing Authority pursuant to Section 3.30.160(E) of the Palm Desert Municipal Code.

1. Award a Short- Form Construction Contract No. HA48600 with Mohawk Commercial, Inc., for procurement and installation of floor coverings and related supplies and services at the Authority’ s properties for a term of one ( 1) year, with an option to renew for up to four additional one-year terms, in an annual amount not to exceed $175,000 annually.

2. Authorize the Executive Director to execute the agreement, take any necessary actions to facilitate execution of agreement with Mohawk Commercial, Inc., and execute any documents necessary to effectuate the actions taken herewith.

3. YES: 5 NO: 0 ABSTAIN: 0 CONFLICT: 0 ABSENT: 0
Motion Carried
Mayor Pro Tem Harnik
Mayor Quintanilla
Councilmember Kelly Councilmember
Nestande
Councilmember Trubee
305
ABSENT: 0
306

Page 1 of 2 ends

PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: November 14, 2024
PREPARED BY: Celina Cabrera, Management Analyst
SUBJECT: AWARD CONSTRUCTION SERVICES AGREEMENT WITH MOHAWK COMMERCIAL, INC., FOR FLOOR COVERINGS AT PALM DESERT

HOUSING AUTHORITY PROPERTIES
RECOMMENDATION:

1. Authorize the use of Mohawk Commercial, Inc., an Omnia Partners (“ Omnia”) national government cooperative contract holder for flooring and outdoor surfaces solutions, contract 2020002149, at the Palm Desert Housing Authority pursuant to Section 3.30.160(E) of the Palm Desert Municipal Code.

2. Award a Short-Form Construction Contract with Mohawk Commercial, Inc., for procurement and installation of floor coverings and related supplies and services at the Authority’s properties for a term of one (1) year, with an option to renew for up to four additional oneyear terms, in an annual amount not to exceed $175,000 annually.

3. Authorize the Executive Director to execute the agreement, take any necessary actions to facilitate execution of agreement with Mohawk Commercial, Inc., and execute any documents necessary to effectuate the actions taken herewith.

BACKGROUND/ANALYSIS:

The Authority is currently under contract with Sid’s Carpet Barn, Inc., for these same services.

Adding Mohawk Commercial will provide additional flexibility and improve efficiencies in addressing flooring needs as they arise at the Authority’s properties.

Legal Review:

This report has been reviewed by the City Attorney’s Office. 111 307
Palm Desert Housing Authority
Mohawk Commercial, Inc. for Palm Desert Housing Authority Flooring

Page 2 of 2 ends

Appointed Body Recommendation:

The Housing Commission will review this recommendation at its regular meeting on November 13, 2024. Upon request, a verbal report will be provided at the Authority’s regular meeting on November 14, 2024.

FINANCIAL IMPACT:

Funds for this agreement are included in the Housing Authority’s Fiscal Year 2024-25 Annual Budget, allocated across the appropriate Authority accounts for each property. This action will have no financial impact to the General Fund.

ATTACHMENTS:

1. Omnia Partners Participation Letter- Mohawk Commercial, Inc.

2. Draft Agreement

3. Draft Bonds
112 308
Contract No. HA48600
1 PALM DESERT HOUSING AUTHORITY

SHORT FORM CONSTRUCTION CONTRACT

1. Parties and Date. This Agreement is made and entered into this 14th day of November, 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 Mohawk Commercial, Inc., a Delaware Corporation, with its principal place of business at 160 S. Industrial Blvd. Calhoun, GA 30701 ("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 Procurement and Installation of Floor Coverings and Related Supplies, Equipment and Services 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.

2.3 Project.

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

Procurement and Installation of Floor Coverings and Related Supplies, Equipment and Services Project
(hereinafter referred to as “the Project”).

2.4 Project Documents & Certifications. Contractor has obtained, and delivers concurrently herewith, Performance and Payment Bonds 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:
• Services/Schedule (Exhibit “A”)
• Plans and Specifications (Exhibit “B”)
• Special Conditions (Exhibit “C”)
• Contractor’s Certificate Regarding Workers’ Compensation (Exhibit “D”) • Public Works Contractor Registration Certification (Exhibit “E”) • Payment and Performance Bonds (Exhibit “F”)

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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 309
Contract No. HA48600
2 conditions, technical specifications, plans/construction drawings, general contract terms, scope of work, standard plans, advertisements for bid/proposals, bids/proposals or other documents submitted by Contractor.

3.1.2 Term. The term of this Agreement shall be from October 1, 2024, to June 30, 2025, unless earlier terminated as provided herein. The Authority shall have the unilateral option, at its sole discretion, to renew this Agreement for no more than four additional one-year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Service.

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 or otherwise agreed to by both parties in writing. 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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 310
Contract No. HA48600
3 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.

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.

Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 311
Contract No. HA48600
4 3.3 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Work under this Contract within an agreed upon time period for the Work and subject to standard manufacturing lead times, beginning the effective date of the work order approval (“Contract Time”). Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed by the Authority and agreed to by Contractor. 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 ($500.00) 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.

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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 312
Contract No. HA48600
5 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 One Hundred Seventy Five Thousand and 00/100 Dollars ($175,000.00) (“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, 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. NOT APPLICABLE

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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 313
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6 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. NOT APPLICABLE

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.

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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 314
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7 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 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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 315
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8 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 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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 316
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9 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 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.

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10 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.

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.

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11 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 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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 319
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12 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; (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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 320
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13 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

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.

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14 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 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:

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15 (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.

3.11.1.10Government 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 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.

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16 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, except for exclusions listed in Contractor’s bid proposal, 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 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.

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17 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 $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 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; (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.

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18 3.14.1.5 Pollution Liability Insurance [Reserved]

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.

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 and non-contributory basis for the benefit of Authority before the Authority’s own insurance or self insurance 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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 326
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19 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.

3.14.2.10 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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 327
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20 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 are fully the responsibility of Contractor.

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.

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 Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 328
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21 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 in accordance with Contractor’s applicable written products and services warranties, which are hereby incorporated by reference. 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, 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, or to provide the same, comparable or higher quality products to resolve defective Work, 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.

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22 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 the Jessica Gonzales, Housing 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 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.

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23 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: Mohawk Commercial, Inc.
160 S Industrial Blvd
Calhoun, GA 30701
Attn: Brandi Purkey
Authority: Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: Jessica Gonzales, Housing Manager
Any notice so given shall be considered received by the other Party three (3) days after deposit 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.

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24 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.

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.

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25 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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26 SIGNATURE PAGE TO SHORT FORM CONSTRUCTION AGREEMENT

BY AND BETWEEN THE PALM DESERT HOUSING AUTHORITY
AND MOHAWK COMMERCIAL, 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:

Isra Shah
Best Best & Krieger LLP
Special Council

CONTRACTOR
By:

Its: President______________________
Printed Name: Mike Gallman_____________
By:

Its: VP Finance ____________________
Printed Name: Alex Munhoz_____________
988270 _____________________
Contractor’s License Number and
Classification
1000025095 ______________________
DIR Registration Number (if applicable)
City Clerk QC: MN
Contracts QC: _____
Insurance:

Initial Review _____
Final Approval ____
Bonds: _____
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EXHIBIT “A”

SERVICES / SCHEDULE
This agreement includes and hereby incorporates in full by reference the Scope of Services as provided in the OMNIA Partners Purchasing Alliance Agreement for Flooring Products and Installation Services Contract No. 2020002149, with Mohawk Commercial, Inc., (“the Piggyback Contract”), and the respective Request for Proposal issued June 24, 2019, and any amendments thereof.

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EXHIBIT “B”

PLANS AND SPECIFICATIONS
This agreement includes and hereby incorporates in full by reference the Scope of Services as provided in the OMNIA Partners Purchasing Alliance Agreement for Flooring Products and Installation Services Contract No. 2020002149, with Mohawk Commercial, Inc., (“the Piggyback Contract”), and the respective Request for Proposal issued June 24, 2019, and any amendments thereof.

Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 336
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EXHIBIT “C”

SPECIAL CONDITIONS
ARTICLE 1. BONDS
Concurrently with this Contract, the Contractor shall deliver to the Authority four identical counterparts of the Performance Bond and Payment Bond on the forms supplied by the Authority and included as Exhibit “F” to the Contract. The surety supplying the bond must be an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, authorized to do business as such in the State of California and satisfactory to the Authority. The Performance Bond and the Payment Bond shall be for one hundred percent (100%) of the Total Contract Price.

Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 337
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EXHIBIT “D”
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.

Contractor
By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)
Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B Mike Gallman
President Commercial
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Exhibit “E”

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: ____Mohawk Commercial, Inc.________ DIR Registration Number: ___1000025095________________
DIR Registration Expiration: __06/30/2025_________________ Small Project Exemption: _____ Yes or __X__ 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.” Docusign Envelope ID: 3EBCCF1D-18A2-493A-9A38-8271AD19A00B 339
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AMENDMENT NO. 1 TO THE SHORT FORM CONSTRUCTION CONTRACT BETWEEN THE PALM DESERT HOUSING AUTHORITY AND MOHAWK COMMERCIAL, INC.

1. Parties and Date.

This Amendment No. 1 to the SHORT FORM CONSTRUCTION CONTRACT, HA48600, is made and entered into as of this 1st day of July, 2025, by and between the Palm Desert Housing Authority (“Authority”) and Mohawk Commercial, Inc., a Corporation, with its principal place of business at 160 S. Industrial Blvd., Calhoun, GA 30701 ("Vendor"). The Authority and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. Recitals.

2.1 Agreement. The Authority and Mohawk Commercial, Inc. have entered into an agreement entitled “Short Form Construction Contract, HA 48600” dated November 14, 2024 (“Agreement” or “Contract”) for the purpose of retaining the services of Mohawk Commercial, Inc., to provide Procurement and Installation of Floor Coverings and Related Supplies, Equipment, and Services Project.

2.2 Amendment. The Authority and Mohawk Commercial, Inc. desire to amend the Agreement to increase compensation and extend term.

2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to 3.18.17 of the Agreement.

3. Terms.

3.1.2 Term. Section 3.1.2 of the Agreement is hereby amended in its entirety to read as follows:

Term. The term of this Agreement shall be from July 1, 2025, to June 30, 2026, unless earlier terminated as provided herein. The Authority shall have the unilateral option, at its sole discretion, to automatically renew this Agreement for no more than (3) additional one-year terms.

Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of the Agreement if necessary to complete the Service.

3.7.1 Compensation . Section 3.7.1 of the Agreement is hereby amended in its entirety to read as follows:

Amount of Compensation. As consideration for performance of the Work required herein, Authority agrees to pay Contractor the Total Annual Contract Price Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) (“Total Contract Price”) for actual work conducted 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.

3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1.
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3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1.

3.4 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR AMENDMENT NO. 1 TO SHORT FORM CONSTRUCTION

CONTRACT BETWEEN THE PALM DESERT HOUSING AUTHORITY
AND MOHAWK COMMERICIAL, INC.

IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 1 to the SHORT FORM CONSTRUCTION CONTRACT as of the day and year first above written.

PALM DESERT HOUSING AUTHORITY
By:

Chris Escobedo
Interim Executive Director
Attest:

By:

Anthony J. Mejia
Secretary
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
Special Counsel
MOHAWK COMMERICAL, INC., A

CORPORATION
By:

Mike Gallman
President
By:

Alex Munhoz
VP Finance
Clerks QC: ________
Contracts QC: ________
Insurance:
___________
Initial Review
___________
Final Review
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PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: June 12, 2025
PREPARED BY: Celina Cabrera, Senior Management Analyst
SUBJECT: AWARD CONTRACT TO TRI-STAR CONTRACTING II, INC., FOR

DEMOLITION AND PARTIAL REMOVAL OF WATER FEATURE AT ONE
QUAIL PLACE APARTMENTS (PROJECT NO. CHA00012)
RECOMMENDATION:

1. Award Contract to Tri-Star Contracting II, Inc., for demolition and partial removal of water feature at One Quail Place Apartments, in an amount not to exceed $128,362.

2. Authorize the Director of Finance to set aside a 20% contingency in the amount of $25,672 for unforeseen circumstances.

3. Authorize Special Legal Counsel to make necessary non-monetary changes to the contract.

4. Authorize the Executive Director to approve and execute the contract, change orders up to contingency amount, amendments, and any other documents necessary to effectuate this action in accordance with Section 3.30.170(B) of the Palm Desert Municipal Code.

5. Authorize the Executive Director to execute the Notice of Completion and the City Clerk file the same upon satisfactory completion of the project.

BACKGROUND/ANALYSIS:

Prior to 2015, One Quail Place featured 10 water ponds distributed throughout the property.

However, in 2015, 9 of these ponds were removed due to aging equipment, escalating utility costs, and ongoing maintenance challenges. The ponds were backfilled and integrated into the surrounding landscape design. The remaining water feature, located at the front entrance of the property and the subject of this staff report, was retained at that time because its equipment had been updated and remained functional.

On February 4, 2025, property management notified staff of a leak in the entrance water feature, resulting in water pooling and running across the parking lot. V.M. Pool Service and Repair, the service contractor, promptly drained the water from the feature and shut down the equipment to prevent further water loss and potential safety hazards. The contractor has provided an initial estimate of $6,800 for exploratory work to determine the source of the leak. At this time, staff has not authorized the exploratory work pending further direction.

Staff further assessed the situation and considered many things such as anticipated costs associated with repairing an aging, non-essential water feature, the City's water conservation goals, the need for equipment replacement, and ongoing operation and maintenance expenses.

As a result of the assessment, staff solicited bids to remove the ponded water areas of the water feature while retaining the existing rock and boulder structure as much as possible to integrate into the surrounding low-maintenance desert landscaping. 345
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On March 18, 2025, a bid request for the Demolition and Partial Removal of the Water Feature at One Quail Place Apartments was posted on the City’s online bid management portal Open Gov (Project ID: 2025-RFP-168) to registered vendors pursuant to Section 3.30.095 of the PDMC. A mandatory pre-proposal meeting was held on March 27, 2025, wherein seven contract companies were in attendance. Proposals were due on April 18, 2025, and three proposals were received.

A selection committee, comprised of representatives from the Housing, Capital Improvements, and Landscape teams, was formed to evaluate the proposals and score them according to the following criteria that were provided in the published RFP:
 Clarity and conformance of the proposal to the RFP (10%)  Content of the proposal, including the work plan (30%)  Proposer’s experience and performance (25%)
 Team members’ experience (10%)
 Fee Proposal (25%)
The proposals were ranked cumulatively as follows:

Tri-Star Contracting II, Inc. received the highest evaluation score due to their completeness, accuracy, responsiveness to the bid documents, and the city’s experience and knowledge of the qualifications and reliability of the bidder. Tri-Star’s proposal demonstrated capability and experience aligning with the scope of work that demonstrates their ability to meet the Authority’s project requirements and standards for successful project delivery. Tri-Star is the best overall value to provide the required service to the Authority.

Although Tri-Star is not the lowest bidder, prior experience with American Heritage Pool has demonstrated delays in schedule and multiple change orders resulting in increased costs.

Additionally, American Heritage Pool did not provide sufficient documentation to demonstrate their ability to meet the Authority’s project requirements and standards for successful project delivery.

The removal of the non-essential water feature at the entrance of the property will save approximately $15,000 per year in annual maintenance, as well as water and electric utilities.

Legal Review:

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

Appointed Body Recommendation:

The Housing Commission will review this recommendation at its regular meeting on June 11, 2025. Upon request, a verbal report will be provided.

Proposer Ranking Overall Proposal Score Cost Proposal
Tri-Star Contracting II, Inc. 1 63.33 $128,362.00
Sky Construction Services, Inc. 2 59.00 $160,912.00
American Heritage Pool Corporation 3 45.67 $51,253.50
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FINANCIAL IMPACT:

Funds are available in the FY 2024-25 Annual Budget in Housing Authority Account No. 8714195-4331100. Therefore, there is no financial impact to the General Fund with this action.

ATTACHMENTS:

1. Estimate provided by V.M. Pool Service and Repair for Exploratory Work

2. Tri-Star Contracting II, Inc. Bid

3. Draft Short Form Construction Contract

4. Draft Payment and Performance Bond
347
348
Estimate
Date
2/4/2025
Estimate #
94 Name / Address
One Quial Place
72600 Fred Waring
Palm Desert Ca
92260
V.M.Pool Service and Repair
40395 Firenze, Ct
Indio
CA 92203
Project
Total
Description Qty Rate Total
Pond Repair Prevailing Wages
Water appeared rolling over the parking lot and i dug and it was discovered that the water appears from the bottom of the fountain.

To fix this water leak it is necessary to empty the fountain, remove all the gravel that exists and apply a cement with sealant on the affected surface. [ If when we discover the entire surface we notice that the cement has to be demolished to repair a PVC pipe under the concrete , this would already be an extra Charge]
6,800.00 6,800.00
Sales TaxSale Tax Item 8.00% 0.00
$6,800.00
349
350
351
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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 June, 2025, 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 Tri-Star Contracting II, Inc., a Corporation, with its principal place of business at 15-501 Little Morongo Road, Desert Hot Springs, CA 92240 ("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 Demolition 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: Demolition and Partial Removal of Water Feature at One Quail Apartments

2.3 Project.

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

Demolition and Partial Removal of Water Feature at One Quail Apartments Project No. CHA00012
(hereinafter referred to as “the Project”)

2.4 Project Documents & Certifications. Contractor has obtained, and delivers concurrently herewith, applicable performance bond, payment bond, insurance documents 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:
 Services/Schedule (Exhibit “A”)
 Special Conditions (Exhibit “B”)
 Contractor’s Certificate Regarding Workers’ Compensation (Exhibit “C”)  Public Works Contractor Registration Certification (Exhibit “D”)  Request for Proposal published on March 18, 2025 (Exhibit “E”)  Contractor’s Bid (Exhibit "F”)

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 specifications, plans/construction drawings, general contract terms, scope of work, standard 353
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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 “A” attached hereto and incorporated herein by this reference. Special Conditions, if any, relating to the Work are described in Exhibit “B” attached hereto and incorporated herein by this reference.

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. 354
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3.3 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Work under this Contract within 60 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 ($500) 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. 355
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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 Not to Exceed Contract Price of One Hundred Twenty-Eight Thousand Three Hundred Sixty Two Dollars and 00/Cents ($128,362.00) (“Total Contract Price”) for actual work conducted, 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.

Contractor may be required to furnish a detailed schedule of values upon request of the Authority 356
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and in such detail and form as the Authority shall request, showing the quantities, unit prices, 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.

3.7.4 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 357
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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.

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.

If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at the Contractor’s principal place of business and at the Project site. Contractor shall defend, indemnify, and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

3.8.2 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.
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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 “D” 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.

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 359
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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.

3.9.1.2 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.

3.9.3 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.

3.9.8 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.

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

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.

The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the 363
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California Public Contract Code. This Section shall be construed to be consistent with all applicable law, including but not limited to these statutes.

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
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(D) Narrative analysis of claim merit
(E) Analysis of Claim cost, including calculations and
supporting documents
(F) Time impact analysis in CPM format

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.
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(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 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.

3.11.1.9 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.

3.11.1.10 Government Code Claim Procedures.
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(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 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.

3.12 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 367
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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.

3.14 Insurance.

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 $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 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.

3.14.1.3 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:
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(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; (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.

3.14.1.5 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

3.14.2.3 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 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.

3.14.2.6 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.

3.14.2.9 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 370
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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.

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.

3.14.2.16 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.

3.15Bond Requirements.

3.15.1 Payment Bond. If required by law or otherwise specifically requested by Authority in Exhibit “B” 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 “B”” 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.

3.16 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 372
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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, 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 “C” 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.

3.18 General Provisions.

3.18.1 Authority’s Representative. The Authority hereby designates Jessica Gonzales, Housing 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 373
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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 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.

3.18.4 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.

Contractor: Tri-Star Contracting II, Inc.
15-501 Little Morongo Rd
Desert Hot Springs, CA 92240
ATTN: Daniel Willis, Secretary
Authority: Palm Desert Housing Authority
73-510 Fred Waring Drive
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Palm Desert, CA 92260-2578
ATTN: Jessica Gonzales, Housing Manager
Any notice so given shall be considered received by the other Party three (3) days after deposit 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.

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

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.

3.18.15 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.

Box 26000, Sacramento, California 95826.

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 N/A
[Signatures on Next Page]
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909195
1000004952

SIGNATURE PAGE TO SHORT FORM CONSTRUCTION AGREEMENT

BY AND BETWEEN THE PALM DESERT HOUSING AUTHORITY
AND TRI-STAR CONTRACTING II, 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:

Chris Escobedo
Interim Executive Director
Attest:

By:

Anthony J. Mejia
Secretary
Approved as to form:

By:

Israh Shah
Best Best & Krieger LLP
Special Council
By:

Bryan Willis
President
By:

Daniel Willis
Secretary
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
Clerks QC: ________
Contracts QC: _____
Insurance:
___________
Initial Review
___________
Final Review
Bonds: _________
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Exhibit “A”
Revised 07-2023
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EXHIBIT “A”

SCOPE OF SERVICES
Examination
Interested contractors must survey existing site conditions and make an independent determination as the extent of the demolition required.

Proposers must attend a mandatory pre-bid meeting that will be held on Thursday, March 27, 2025 at 9 a.m.

The location is a large multi-family apartment complex and the feature to be removed is at the front of the property. All safety precautions shall be made to secure the construction/demolition site and prevent foot traffic from traversing the area.

Preparation
Contractor must:
 Secure al necessary permits from the Palm Desert Permit Center to cut and/or cap all utilities including water, gas, electricity, and sewer.  Contact Dig Safe and coordinate identification of all underground utilities.  Coordinate inspections with the City of Palm Desert Building and Safety Department.  Make all preparations to secure and protect the existing trees located on the property.  Must drain, purge, or otherwise remove, collect, and dispose of chemicals, gases, explosives, acids, flammables, or other dangerous material before proceeding with demolition operations.
 Not obstruct streets, walks, or other adjacent occupied or used facilities without permission from the Housing Authority or City of Palm Desert authorities having jurisdiction.
 Erect temporary protection such as walks, fences, railings, canopies, and covered passageways where required.

Demolition
Contractor shall demolish and remove all structures, facilities, other debris (including brush) that compromise the work site, and completely remove the same from the site.

Contractor shall perform demolition operations in accordance with all applicable laws and regulations and the following general policies:
 Ensure minimum interference with roads, streets, walks, and other adjacent occupied and used facilities.
 Conduct demolition operation to prevent injury to people and damage to adjacent buildings and facilities.
 Ensure safe passage of people around demolition area.  Dispose of demolished items and materials promptly. On-site storage of removed items is prohibited.
 Break up and remove concrete on grade, unless discussed otherwise to remain.  Below grade structures, foundation, boulders encased with concrete, rocks, and pond slab shall be completely removed.
 Removal and disposal of existing spillways, weirs, pond structures, including mass footings if encountered, rip rap features of waterfalls, low level, and mid-level supply piping.
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Special Conditions
The Contractor shall preserve all surrounding buildings and property. Contractor should note the proximity of surrounding buildings. Any damage to surrounding buildings or property will be promptly repaired by the Contractor at its sole expense.

This project is a prevailing wage project and requires DIR registration.

The Contractor must adhere to City Ordinance regarding noise making hours pursuant to Palm Desert Municipal Code Section 9.24:

October 1 - April 30 Monday - Friday 7:00 a.m. - 5:30 p.m.

Saturday 8:00 a.m. - 5:00 p.m.

Sunday and Holidays None
May 1 - September 30 Monday - Friday 5:30 a.m. - 7:00 p.m.

Saturday 8:00 a.m. - 5:00 p.m.

Sunday and Holidays None
Disposal of Demolished Materials
The Contractor must promptly and properly dispose of demolished materials. The Contractor may not allow demolished materials to accumulate on-site.

The Contractor shall transport all demolished materials off-site and legally dispose of them. The Contractor must supply the Palm Desert Housing Authority with copies of all landfill and disposal receipts.

Restoration
 Fill below-grade areas and voids resulting from demolition of concrete slabs and structures to meet existing site grades and profile.
 Install irrigation lines and emitters to support sod installation and 20 5-gallon planters of comparable existing landscape plants. Field coordination is expected with the landscape inspector assigned.
 10-20% reuse of existing boulders for aesthetic rock placement within landscape area is expected. Field coordination is expected with the landscape inspector assigned.

Inclusions
Specific Inclusions for the Scope of Work includes, but is not limited to:
 The Bid Package Contractor is responsible for:
o Completing all work included in this Scope of Work.
o Furnishing all labor, materials, appliances, tools, equipment, facilities, transportation, applicable taxes, permits, and services necessary for and incidental to, performing all operations in connection with this Bid Package.
o Completing all work as detailed herein as well as indicated in plans and specifications in accordance with approved project documents. o Multiple mobilizations may be required to perform this work. o Attend and participate in coordination meetings (date and time to be determined by construction manager).
o Providing representation by someone with authority to make schedule and manpower decisions when the Contractor's work is being performed on site or when specifically requested by Construction Manager.
 The Bid Package Contractor is responsible for:
o Securing the area for safety
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o Storage and security of own materials and equipment located on jobsite. o Supplying and installing own yard and security fence if required for storage. o Note: On-Site storage, laydown areas, parking, and access is limited and controlled by the Construction Manager.
o Own employee parking.
o Daily clean up of debris and removal of same from project site. o Mitigate and prevent dust, noise, and traffic for own work.  The Bid Package Contractor is responsible for:
o Connecting to utilities at provided power sources.
o Attend and participate in a pre-construction conference. o Responsible for all trucking operations associated with own work, including street clean up, flag people, and routing requirements.
o Export of spoils from job site from own work.
o Provide dumpsters, secure them, and arrange for disposal and removal of own work. 380
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Exhibit “B”
Revised 07-2023
BBK 72500.00001\32375220.1
EXHIBIT “B”

The surety supplying the bond must be an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, authorized to do business as such in the State of California and satisfactory to the Authority. The Performance Bond and the Payment Bond shall be for one hundred percent (100%) of the Total Contract Price.
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Exhibit “C”
Revised 07-2023
BBK 72500.00001\32375220.1
Bryan Willis
CEO
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.

TRI-STAR CONTRACTING II, INC.

By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)
382
Contract No. ______________
Exhibit “G”
Revised 07-2023
BBK 72500.00001\32375220.1
Tri-Star Contracting II, Inc.
1000004952
X
Tri-Star Contracting II, Inc.

Bryan Willis, CEO
June 30, 2025
EXHIBIT “D”

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.

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.” 383
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
EXHIBIT “E”
REQUEST FOR PROPOSAL PUBLISHED MARCH 18, 2025
384
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
385
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
386
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
387
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
388
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
389
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
390
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
391
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
392
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
393
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
394
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
395
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
396
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
397
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
398
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
399
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
400
Contract No. ______________
Exhibit “E”
Rev 10-19
72500.00001\32375220.1
401
Contract No. ______________
Exhibit “G”
Revised 07-2023
BBK 72500.00001\32375220.1
EXHIBIT “F”
CONTRACTOR’S BID
402
Contract No. ______________
Exhibit “F”
Rev 10-19
72500.00001\32375220.1
403
Contract No. ______________
Exhibit “F”
Rev 10-19
72500.00001\32375220.1
404
Contract No. ___________
Exhibit “C”
Revised 11-2-20
BBK 72500.00001\32374915.1

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the Palm Desert Housing Authority (hereinafter referred to as “Authority”) has awarded to Tri-Star Contracting II, Inc., (hereinafter referred to as the “Contractor”) an agreement for Demolition and Partial Removal of Water Feature at One Quail Place Apartments (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated June 12, 2025 (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, Tri-Star Contracting II, Inc., the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the Authority in the sum of One Hundred Twenty-Eight Thousand Three Hundred Sixty Two and 00/100 Dollars, ($128,362.00), 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 elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by 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:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
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(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.
[SIGNATURES ON NEXT PAGE]
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Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____.
(Corporate Seal)
Contractor/ Principal
By________________________________
Printed name: Bryan Willis
Title: President
(Corporate Seal) Surety
By: ________________________________
Printed Name: _______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.

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

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety and
Agent or Representative for
service of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
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Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
408
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
409
Contract No. ___________

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS That
WHEREAS, the Authority of Palm Desert (hereinafter designated as the “Authority”), by action taken or a resolution passed June 12, 2025 has awarded to Tri-Star Contracting II, Inc., hereinafter designated as the “Principal,” a contract for the work described as follows:

Demolition and Partial Removal of Water Feature at One Quail Place Apartments the “Project”).; and
WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated June 12, 2025, (“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 One Hundred Twenty Eight Thousand Three Hundred Sixty Two and 00/100 Dollars, ($128,362.00) 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 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 410
Contract No. ___________
modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or Authority and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code. [SIGNATURES ON NEXT PAGE]
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Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By ________________________________
Printed name: Bryan Willis
Title: President
(Corporate Seal) Surety
By: ________________________________
Printed Name: _______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
412
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
414

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PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: June 12, 2025
PREPARED BY: Lucero Leyva, Senior Project Manager
SUBJECT: AWARD CONTRACT TO GARLAND/DBS, INC., FOR ROOF

REPLACEMENTS AT LAS SERENAS, NEIGHBORS AND PUEBLOS
(PROJECT NO. CHA00011)
RECOMMENDATION:

1. Award the construction contract to Garland/DBS, Inc., for Roof Replacements at Las Serenas, Neighbors, and Pueblos (Project No. CHA00011) in an amount not to exceed $4,594,147.

2. Authorize the Director of Finance to set aside contingency in the amount of $459,415 for unforeseen conditions.

3. Authorize Director of Finance to appropriate $369,415 from Housing Authority Reserve to Account No. 8714195-4331100.

4. Authorize the Chairperson and/or the Executive Director to execute the Agreement and written requests for change orders up to the contingency amount, amendments, 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 Housing Authority Board has approved the engagement of Garland/DBS, Inc. (Garland) to perform a comprehensive roof assessment, along with necessary repairs and related services, across the full portfolio of properties owned by the Palm Desert Housing Authority (Housing Authority). At the request of City staff, Garland conducted assessments of all properties and identified Las Serenas, Neighbors, and Pueblos as having the most urgent roof maintenance needs.

Site specific information:
 Las Serenas Apartment – 20 Buildings with 150 Units
 Neighbors Apartments – 3 Buildings with 24 Units
 Pueblos Apartments – 3 Buildings with 15 Units
The scope for this project includes:
 Removal and replacement of existing low slope roofing systems down to the substrate  Repair or replacement of damaged substrate, fascia, insulation and decking  Installation of a new roof system using Garland specified materials  Upgrades to the drainage system
415
City of Palm Desert
Award Contract to Garland/DBS, Inc., for Roof Replacements Project (CHA00011)

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Please see attached “Garland/DBS, Inc. PDHA Proposal” for the complete description of scope of work.

The delivery method for this project involves Garland/DBS, Inc. serving as the prime contractor, responsible for supplying the roofing materials, while a subcontractor provides the labor and installation with the firm names listed below. Garland provided the Housing Authority with three competitive contractor bids for the roof replacement and/or repair work. Each bid included two distinct scopes of work for the Las Serenas Apartments:
 Option 1 includes targeted roof repairs, with replacement of damaged tiles as needed and matching existing materials to maintain visual consistency.  Option 2 includes the roof repairs outlined in Option 1 for the Neighbors and Pueblos apartments, as well as the installation of a new waterproofing layer and full tile replacement for all 20 buildings in the Las Serenas complex.

These options were developed at the request of City staff following Tropical Storm Hilary, which resulted in approximately 28 emergency roof repair incidents at Las Serenas. Subsequent inspections revealed significant signs of deterioration in the visible portions of the underlayment—the primary waterproof barrier of the roof system—raising concerns about the overall integrity of the roof. Based on these findings, staff evaluated long-term repair solutions.

Both proposed options include a five-year installation warranty from the contractor and a 30-year material warranty from Garland. The following is a summary of the bids submitted for option 1 and 2:
 Option 1 – Roof Repairs for all three Properties
R&R Roofing & Waterproofing, Inc. $2,041,076
Chapman Coast Roof Co $2,432,401
Commercial Roofing Systems $2,498,181
 Option 2 – Complete Tile Replacement of Las Serenas Apartment and Roof Repairs for Neighbors and Pueblos Apartments
R&R Roofing & Waterproofing, Inc. $4,594,147
Chapman Coast Roof Co $6,125,644
Commercial Roofing Systems $6,751,025
R&R Roofing & Waterproofing, Inc., submitted the lowest bids across both options.

The Housing Authority seeks to enter into an agreement with Garland under Omnia Contract No.

PW1925 (a copy of which is on file with the City Clerk of Palm Desert) to carry out the proposed project. Omnia is a cooperative purchasing organization formed to help public agencies and nonprofits across the United States reduce procurement costs by leveraging collective purchasing power. It achieves this by issuing solicitations and awarding contracts through a lead public 416
City of Palm Desert
Award Contract to Garland/DBS, Inc., for Roof Replacements Project (CHA00011)

Page 3 of 3 ends

agency for commonly used products and services, ensuring pricing is fair, reasonable, and competitive. In accordance with Section 3.30.160(E) of the Palm Desert Municipal Code, the Housing Authority is permitted to utilize cooperative pricing agreements such as Omnia’s for purchases made through approved vendors.

Staff recommends awarding the contract for the Roof Replacements Project at Las Serenas, Neighbors, and Pueblos to Garland/DBS, Inc., with R&R Roofing and Waterproofing, Inc. serving as their subcontractor. This recommendation is based on the comprehensive scope of work outlined in Option 2, which includes both targeted roof repairs and full roof replacements as specified.

Legal Review:

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

FINANCIAL IMPACT:

Funds for this purpose have been budgeted as part of the FY 2024-25 Annual Budget, however an appropriation is necessary to cover a portion of the 10% contingency being requested for any unforeseen circumstances. Any unused contingency amount will be returned and reallocated upon completion. This action does not have a financial impact to the General Fund.

PDHA Roof Replacements Project (CHA00011) Approved
Budget Expenditures AvailableBalance
Housing Authority Replacement Expenditures Fund (8714195- 4331100) 4,684,147
Construction Contract:

Garland/DBS, Inc. 4,594,147
Appropriation/Contingency 369,415 459,415
Totals 5,053,562 5,053,562 0
ATTACHMENTS:

1. Garland/DBS, Inc., Proposal #25-CA-250256

2. Draft Construction Contract

3. Payment and Performance Bonds
417
418
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PALM DESERT HOUSING AUTHORITY

CONTRACT FOR CONSTRUCTION
This Agreement is made and entered into this 12th day of June, 2025, 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, Inc., a Corporation, with its principal place of business at 3800 East 91st Street, Cleveland OH 44105 ("Contractor").

WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:

ARTICLE 1. SCOPE OF WORK.

The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project:

Las Serenas, Neighbors and Pueblos Roof Replacement and Repairs Project Project No. CHA00011
(hereinafter referred to as “the Project”).

The scope of the project includes the removal and replacement of existing low slope roofings systems down to the substrate, repair and/or replacement of damaged substrate, fascia, insulation and decking, installation of a new roof system using Garland Specified materials and upgrades to the drainage system.

Contractor is an independent contractor and not an agent of the Authority. The Contractor and its surety shall be liable to the Authority for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPLETION.

Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the Authority’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 120 Working Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE.

The Authority shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of FOUR MILLION FIVE HUNDRED

NINETY-FOUR THOUSAND ONE HUNDRED FORTY-SEVEN DOLLARS
($4,594,147). Payment shall be made as set forth in the General Conditions. The Authority will pay to Contractor compensation based upon the prices set forth in the Bid Schedule.

ARTICLE 4. LIQUIDATED DAMAGES.

Contractor acknowledges that the Authority will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature 419
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BBK 72500.00001\32374943.1
of the Project, it would be impracticable or extremely difficult to determine the Authority’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the Authority the sum of $1,000 for each and every Day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the Authority may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the Authority, in case of Contractor's default, from terminating the Contractor.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT.

The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Bid Forms
Bid Acknowledgement
Bid Schedule
Bid Guarantee
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Public Works Contractor DIR Registration Certification
Performance Bond
Payment (Labor and Materials) Bond
Contract for Construction
General Conditions
Special Conditions
Specifications
Addenda
Construction Plans and Drawings
Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9
Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition
California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition
Work Area Traffic Control Handbook, latest edition
Reference Specifications
Approved and fully executed Change Orders
Permits
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. 420
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All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE.

Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.

ARTICLE 7. INDEMNIFICATION AND INSURANCE.

A. Indemnification

1. To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the Authority’s choosing), indemnify, and hold harmless the Authority, its officials, officers, agents, employees, and representatives, and each of them from and against:
(a) Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the Authority or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the Authority or its officials, officers, employees, or authorized volunteers;
(b) Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements;
(c) Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; (d) Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Contract.

Such costs, expenses, and damages shall include all costs, including 421
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attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party.

2. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the Authority choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the Authority, its officials, officers, agents, employees and representatives.

Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the Authority, its officials, officers, employees, agents, employees, and representatives, in any such suit, action or other legal proceeding.

Contractor shall reimburse the Authority, its officials, officers, agents, employees, 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. The only limitations on this provision shall be those imposed by Civil Code section 2782.

3. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article.

B. Insurance

1. 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.

2. 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. 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, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

4. 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, automotive liability and employer’s liability. Such policy or policies shall include the following terms and conditions:

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;
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(a) Pay on behalf of wording as opposed to reimbursement; and (b) Concurrency of effective dates with primary policies; and (c) Policies shall “follow form” to the underlying primary policies; and (d) Insureds under primary policies shall also be insureds under the umbrella or excess policies.

5. Workers’ Compensation Insurance. Contractor shall 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, its officers, agents, employees, and volunteers.

6. Fidelity Coverage. [Reserved]

7. 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 Agreement 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.

C.Other Provisions or Requirements

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.

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 its officers, officials, employees, and agents shall continue as additional insureds under such policies.

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 and non-contributory basis for the 423
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benefit of Authority before the Authority’s own insurance or self-insurance shall be called upon to protect it as a named insured.

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, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage.

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.

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.

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

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.

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.
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10. Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to 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.

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 its officers, officials, employees, agents, and volunteers 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.

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.

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.

14. Pass Through Clause. Contractor agrees to ensure that its sub-consultants, subcontractors, 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.

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.

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.

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.

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. 425
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19. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

ARTICLE 8. PREVAILING WAGES.

Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the Authority’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site.

ARTICLE 9. FALSE CLAIMS.

Contractor acknowledges that if a false claim is submitted to the Authority, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the Authority seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees.

Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE TO LONG 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:

Chris Escobedo
Interim Executive Director
Attest:

By:

Anthony J. Mejia
Secretary
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
Special Counsel
GARLAND/DBS, INC., A CORPORATION
By:

Brian Lambert
President
By:

Ron Seitz
Director of Construction
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
Clerks QC: _____
Contracts QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
_____
Bonds
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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 June 12, 2025 has awarded to Garland/DBS, Inc. hereinafter designated as the “Principal,” a contract for the work described as follows:

Las Serenas, Neighbors, Pueblos Roof Replacement and Repairs Project CHA0011 (the “Project”); and
WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated June 12, 2025 (“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 FOUR MILLION FIVE HUNDRED NINETY-FOUR THOUSAND ONE HUNDRED FORTY-SEVEN DOLLARS, ($4,594,147) 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.

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or 435
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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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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 Las Serenas, Neighbors, Pueblos Roof Replacement and Repairs Project CHA0011 (hereinafter referred to as the “Project”).

NOW, THEREFORE, we, Garland/DBC Inc., the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the Authority in the sum of FOUR MILLION FIVE HUNDRED NINETY-FOUR THOUSAND ONE HUNDRED FORTY-SEVEN DOLLARS, ($4,594,147), 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:
(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 437
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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.

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.

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.
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(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 hereto.
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Palm Desert City CouncilJune 12, 2025

Palm Desert City Council
June 12, 2025