Palm Desert City Council
June 12, 2025

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: June 12, 2025
PREPARED BY: Brad Chuck, Public Works Superintendent
Shawn Muir, Community Services Manager
SUBJECT: AWARD CONTRACT TO HORIZON PROFESSIONAL LANDSCAPE, INC., OF COACHELLA, CA, FOR LANDSCAPE MAINTENANCE AREA NO. 7
AND ADDITIONAL WORK (PROJECT NO. MLS00013)
RECOMMENDATION:

1. Award a Maintenance Services Agreement to Horizon Professional Landscape, Inc., Coachella, California, for Landscape Maintenance Area No. 7 at an annual amount of $236,460, subject to CPI increases, for a three-year term with two one-year extensions.

2. Authorize additional work in an amount not to exceed $60,000 per fiscal year.

3. Authorize the City Attorney to make necessary non-monetary changes to the agreement.

4. Authorize the City Manager to execute agreement, amendments, changes, and any documents necessary to effectuate this action.

BACKGROUND/ANALYSIS:

A Landscape Maintenance Area (LMA) is a designated area where multiple maintenance zones are consolidated under a single contract to improve coordination, reduce costs, and ensure consistent service delivery. The level of service provided within each LMA is aligned with the available funding in its respective budget. Landscape Maintenance Area 7 (LMA 7) encompasses 30 Landscape and Lighting Districts as well as the three Presidents’ Plaza parking lots. The current contract for LMA 7 is scheduled to expire on June 30, 2025.

The City released a Request for Proposals (RFP) on March 18, 2025, through the City’s bid management portal OpenGov (PROJECT ID: 2025-RFP-169), and received five proposals by the April 17 deadline. A selection committee evaluated the submissions based on clarity, quality of the work plan, relevant experience, references, and cost. The proposals were ranked as follows:

VENDOR LOCATION RANK BID

AMOUNTS

ADDITIONAL
WORK
TOTAL
AMOUNT
Horizon Professional Landscape Coachella, CA 1 $236,460 $60,000 $296,460 Universal Green Desert Hot Springs, CA 2 $305,544 $80,000 $385,544 Urban Habitat Palm Desert, CA 3 $223,812 $60,000 $283,812 Mariposa Landscapes Irwindale, CA 4 $121,560 $30,000 $151,560 Excel Landscape Corona, CA 5 $582,120 $145,000 $727,120 The following table outlines a staff comparison between the five proposals:
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Award Contract for Maintenance Landscape Area No. 7

Excel Landscape Mariposa
Landscapes Urban Habitat Universal Green Horizon Professional Landscape Overall Score 53.13 56 59.25 67.75 70
Staffing and
Equipment
3-Person Crew 5-Person Crew 10-Person Crew 6-Person Crew  1 part-time
supervisor
 1 3-person
crew and 1 2-
person crew
 1 full-time
irrigation
technician
 3 service
trucks and 1
dump truck
 2 laborers (3
days per week),
 1 irrigation
technician
(3 days per
month)
 2 service trucks
 1 supervisor (as
needed)
 3 full-time
personnel
 1 irrigation
technician
(as needed)
 4 service trucks
 1 full-time
foreman
 Three crews of a
total of 7
personnel
 1 full time
irrigation
technician
 6 service trucks
 1 full-time
supervisor
 2 full-time
personnel
 2 part-time
personnel
 1 full-time
irrigation
technician
 4 service trucks
(1 dedicated to
LMA 7)
Proposal
Review
Highlights
 Highest cost
 Proposal did not
adequately
address
evaluation criteria
 Proposed staffing
levels did not align
with the required
service frequency
and scope for
LMA 7.
 This misalignment
contributed to a
lower evaluation
score.
 Offered a
competitive price,
but staffing plan
was insufficient for
the scale and
demands of LMA 7.
 Lack of a
designated
irrigator—a critical
role for irrigation
maintenance and
repairs—impacted
evaluation.
 Submitted a
complete work plan.
 Proposal was ~30%
higher in cost than
the top-ranked
proposer.
 Received lower
scores for overall
experience.
 Demonstrated a
balanced approach
with strong
qualifications and
relevant experience.
 Included a
comprehensive
staffing plan and
clear strategy.
 Not the lowest cost
proposer but offered
the best overall
value for LMA 7’s
operational needs.

A full-time irrigator is preferred to ensure efficient maintenance, support water conservation efforts, and allow for timely resolution of irrigation issues, which are critical to effective landscape management.

Based on this review, staff recommends awarding a contract to Horizon Professional Landscape, Inc., for a three-year term beginning July 1, 2025, with two optional one-year extensions. The base contract includes routine maintenance activities such as raking, weed abatement, pruning, irrigation inspections, trash and debris removal, and other services performed in accordance with a City-provided frequency schedule.

In addition, staff recommends allocating $60,000 per fiscal year (approximately 25% of the contract amount) for additional work, ensuring the contract remains within budget while allowing flexibility to address unplanned but necessary maintenance needs. This may include, but is not limited to, irrigation and lighting repairs, emergency tree work, plant replacements, pest control, damage repair due to accidents or vandalism, sign replacements, and minor enhancement projects. Using the primary maintenance contractor for such work is typically the most costeffective and responsive option, as their crews are already familiar with the area and working onsite.

Legal Review:

This report has been reviewed by the City Attorney’s Office. 1174
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Award Contract for Maintenance Landscape Area No. 7

FINANCIAL IMPACT:

The annual maintenance budget for Landscape Maintenance Area No. 7 is included in the Public Works Department’s proposed operations budget for Fiscal Year 2025-26. This budget falls under the 33 Landscape and Lighting District (LLD) accounts and is based on the available levied amounts for each assessment district.

The table below outlines the proposed budget and contract amount:
33 LLD Accounts FY 2025/26 Budget Contract Amount Balance LMA 7 - Monthly Maintenance $236,460 $236,460 $0
LMA 7 – Extra Work per FY $138,890 $60,000 $78,890
Total $375,350 $296,460 $78,890
The remaining balance of $78,890 will be available for other services as needed; therefore, there is no financial impact to the General Fund. Funding for this agreement in future fiscal years will be contingent upon City Council approval of the corresponding budget requests.

ATTACHMENTS:

1. Maintenance Services Agreement

2. Payment and Performance Bonds

3. Proposal

4. LMA 7 Vicinity Map
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CITY OF PALM DESERT

MAINTENANCE SERVICES AGREEMENT

1. Parties and Date. This Agreement is made and entered into this 12th day of June, 2025, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, (“City”) and Horizon Professional Landscape Inc., a Corporation, with its principal place of business at 48727 Charlton Peak Street, Coachella, CA 92236 ("Vendor").

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

2. Recitals.

2.1 Contractor.

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

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

2.2 Project.

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

Landscape Maintenance Area (LMA) 7 Project
Project No. MLS00013
(hereinafter referred to as “the Project”).

3. Terms.

3.1 Scope of Services and Term.

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

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

3.1.2 Term. The term of this Agreement shall be from July 1, 2025, to June 30, 2028, unless earlier terminated as provided herein. The City shall have the unilateral option at its sole discretion, to renew this Agreement automatically for no more than 2 additional one-year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the 1177
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means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee.

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

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

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

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

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

3.2.5 Contractor’s Representative. Contractor hereby designates Rafael Mendoza, President, or his or her designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement.

The Contractor’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

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

3.2.7 Standard of Care; Performance of Employees. Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees, and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. 1178
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Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.8 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum of Two Hundred Fifty Dollars ($250.00) per day for each and every calendar day of delay beyond the Performance Time or beyond any completion schedule or Project milestones established pursuant to this Agreement.

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

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

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

3.2.10.2 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services.
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3.2.10.3 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

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

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

3.2.11 Insurance.

3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of City, and prior to commencement of the Services, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(B) Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each 1180
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accident. The City’s Risk Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
(a) A drop-down feature requiring the policy to
respond if any primary insurance that would
otherwise have applied proves to be uncollectible in
whole or in part for any reason;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall “follow form” to the underlying
primary policies.
(e) Insureds under primary policies shall also be
insureds under the umbrella or excess policies.
(D) Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives. (E) Fidelity Coverage. (Reserved)
(F) Cyber Liability Insurance. (Reserved)
(G) Pollution Liability Insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to the City 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

3.2.11.2 Other Provisions and Requirements.
(A) Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. 1181
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City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(B) Duration of Coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by Contractor, his/her agents, representatives, employees, or subconsultants. (C) Primary/Non-Contributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement.
(E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, and shall require similar written express waivers and insurance clauses from each of its subcontractors. (G) Enforcement of Contract Provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained 1182
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by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(I) Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. (K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
(L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (M) Pass Through Clause. Contractor agrees to ensure that its subconsultants, sub-contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. (N) City’s Right to Revise Specifications. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. (O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(P) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(Q) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 1183
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3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.13 Bonds.

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

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

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

3.2.13.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best’s rating no less than A:VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City. 1184
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3.2.14 Accounting Records. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.2.15 Work Sites.

3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements.

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

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

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

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

3.2.17 Warranty. Contractor warrants all Services under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) 1185
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damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total annual compensation shall not exceed Two Hundred Thirty-Six Thousand, Four Hundred Sixty Dollars ($236,460.00) without written approval of the City Council or City Manager, as applicable. The City may request additional work at the same rates and manner as set forth in this Agreement on an as needed basis as specified in Section 3.3.5. Contractor shall not perform Extra Work, presume Extra Work will be guaranteed, nor be compensated for Extra Work without written authorization from the City. Work performed as Extra Work shall not exceed the amount of Sixty Thousand Dollars ($60,000.00) per fiscal year. Contractor shall not be reimbursed for any expenses unless authorized by the City Council or City Manager, as applicable.

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

3.3.2.1 Retainer. (Reserved)

3.3.3 Deductions. City may deduct or withhold, as applicable, from each progress payment an amount necessary to protect City from loss because of: (1) stop payment notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3) sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Agreement; and (4) any other sums which the City is entitled to recover from Contractor under the terms of the Agreement or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such sums. 1186
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3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City.

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

3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at the Contractor’s principal place of business and at the Project site. Contractor shall defend, indemnify, and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

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

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

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

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

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

3.5 General Provisions.

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

Contractor: Horizon Professional Landscape, Inc.
48727 Charlton Peak Street
Coachella CA, 92236
ATTN: Rafael Mendoza, President
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: Randy Chavez, Director of Public Works
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.2 Indemnification.

3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of 1188
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the Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorneys’ fees and other related costs and expenses except such Claims caused by the sole or active negligence or willful misconduct of the City.

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

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

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

Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the Contractor, the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.

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

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

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

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

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

3.5.8 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be 1189
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construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to the City include its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

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

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

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

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

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

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

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

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

3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties.
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3.5.18 Federal Provisions. RESERVED.
[SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT
AND HORIZON PROFESSIONAL LANDSCAPE, INC.

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

CITY OF PALM DESERT
By:

Chris Escobedo
Interim City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
City Attorney

HORIZON PROFESSIONAL LANDSCAPE,
INC., A CORPORATION
By:

Rafael Mendoza
President
By:

Eric Mendoza Lee
Vice-President
799029
Contractor’s License Number and
Classification
1000534321
DIR Registration Number (if applicable)
City Clerk QC: _____
Contracts QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
_____
Bonds (Only if above $25,000)
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EXHIBIT “A”

SCOPE OF SERVICES

1. SCOPE OF WORK
The work consists of furnishing all labor, materials, necessary tools and machinery, supervision, and all utility and transportation services required to provide landscape maintenance services for City of Palm Desert Landscape and Lighting Districts in accordance with the Contract Documents at the following locations:

1.1 LOCATIONS

1. Waring Court – Parkways along the subdivision perimeter fronting Fred Waring Drive and Phyllis Jackson Lane (approximately 12,262 sq. ft.)

2. Vineyards (Portola Wall) – Raised planter area on the west side of Portola Avenue, north and south of Rutledge Way, as shown on the map (approximately 6,320 sq. ft.)

3. Portola Place – Parkways along the subdivision perimeter on Portola Avenue and Santa Rosa Way. Includes the small landscaped strip on the west side of the subdivision on Olive Court (approximately 5,881 sq. ft.)

4. The Grove – Parkways along the subdivision perimeter on Deep Canyon Road and on Royal Canyon Lane along the block walls (approximately 18,415 sq. ft.). There is one (1) Doggie Pot station

5. Palm Gate – Parkways along the subdivision perimeter on Deep Canyon Road, north of Moss Rose Drive and north of Lavender Way (approximately 7,320 sq. ft.)

6. Primrose II – Parkways along the north side of Hovley Lane East between Carlotta and Hemingway and west of Hemingway (approximately 5,370 sq. ft.)

7. Desert Mirage – Parkways and entrance islands of the Desert Mirage development on the west side of Cook Street, south of Frank Sinatra Drive (approximately 22,998 sq. ft.) 1193
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8. Canyon Crest – Lavender Way: approximately 480 lineal feet of parkway along Deep Canyon Road, 600 lineal feet of parkway on Columbine Drive, and 188 lineal feet at the CVWD well site at Lavender Way and Amaryllis Way (approximately 16,782 sq. ft.)

9. College View Estates I – Parkway along Shepherd Lane on College View Circle West and College View Circle East. Parkway along Portola Avenue (approximately 11,920 sq. ft.). There is one (1) Doggie Pot station

10. College View Estates II – 300 lineal feet of parkway along Portola Avenue; approximately 560 lineal feet of parkway along Shepherd Lane on Scholar Lane West and Scholar Lane East (approximately 8,158 sq. ft.)

11. Sundance West – Shepherd Lane parkway (west side) north side of Chinook Circle to south side of Kokopelli Circle (approximately 6,600 sq. ft.). There are two (2) Doggie Pot stations

12. Sundance East – Shepherd Lane parkway (east side) north and south sides of Chinook Circle. Parkway along Portola Avenue (approximately 6,960 sq. ft.). There is one (1) Doggie Pot station.

13. Petunia I – Parkways on the west and east sides of Shepherd Lane, on Petunia Place West and Petunia Place East. Parkway along Portola Avenue (approximately 9,660 sq. ft.)

14. Boulders – Parkway on Shepard Lane, west side north and south of Alpine Lane (approximately 3,600 sq. ft.)

15. Kaufman & Broad – Street parkways on Frank Sinatra Drive at the Kaufman & Broad development west of Portola Avenue. Includes a retention basin on the interior of the development and the landscaped parkway on Hollister Drive at the CVWD well site west of Drexel Drive. (approximately 43,628 sq. ft.). There is one (1) Doggie Pot station

16. Palm Desert Country Club – Landscaped areas along the south side of Hovley Lane East between Kansas Street and Idaho Street and small section of parkway west of Kansas Street to edge of development. Included are the medians and the traffic circle on 1194
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Avenue of the States from Washington Street to Michigan Avenue (approximately 27,047 sq. ft.)

17. Presidents Plaza I - Parking lots located between Highway 111 and El Paseo on the north and south boundaries and Portola Avenue and San Luis Rey on the east and west and:

18. Presidents Plaza II - Parking lots located between Highway 111 and El Paseo on the north and south boundaries and San Luis Rey and Larkspur Lane on the east and west (combined I & II approximately 16,193 sq. ft.)

19. Presidents Plaza III - - Parking lot located between Highway 111 and El Paseo on the north and south boundaries and Highway 74 and Sage Lane on the west and east (approximately 31,865 sq. ft.)

20. The Glen – Glenwood Lane; approximately 990 lineal feet of parkway along Hovley Lane West and Monterey Avenue (approx. sq. ft. 8,248)

21. Monterey Meadows – Clover and Meadow Lanes; approximately 660 lineal feet of parkway along Hovley Lane West (approx. sq. ft. 3,160). There is one (1) Doggie Pot station

22. Sonata I – Sonata Court; approximately 990 lineal feet of parkway along Hovley Lane West and Portola Avenue (approx. sq. ft. 10,044). There is one (1) Doggie Pot station

23. Sonata II – Posada Court and Via Fonda; approximately 1,980 lineal feet of parkway along Hovley Lane West (approx. sq. ft. 19,320). There is one (1) Doggie Pot station

24. Hovley Estates – Centennial Circle; approximately 330 lineal feet of parkway along Hovley Lane West and a 6,500 square foot retention basin at the back of the cul-de-sac (approx. sq. ft. 12816)

25. La Paloma I – Avenida Arcada; approximately 341 lineal feet of parkway along Hovley Lane West and a 6,500 square foot retention basin at the cul-de-sac (approx. 12041 sq. ft.)

26. La Paloma II – Avenida; approximately 337 lineal feet of parkway along Hovley Lane West and a 6,500 square foot retention basin at the cul-de-sac. (approx.. sq. ft. 13095) 1195
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27. La Paloma III – Avenida Solana; approximately 330 lineal feet of parkway along Hovley Lane West, no retention basin (approx.. sq. ft. 3,600)

28. Hovley Collection – Avenida Calafia and Avenida Estrada: Approximately 660 lineal feet of parkway along Hovley Lane West and a 15,400 square foot retention basin at the back of the streets (approx. sq. ft. 22,120)

29. Sandpiper Court – Approximately 170 lineal feet of landscaped parkway on the south side of Hovley Lane and Sandpiper Court and 6,600 square foot retention basin at the south end of the cul-de-sac (approx. sq. ft. 10,100)

30. Sandpiper Court West – Approximately 150 lineal feet of landscaped parkway on the south side of Hovley Lane at Sandpiper Court West and a 6,500 square foot retention basin at the south end of the cul-de-sac (approx.. sq. ft.

31. Hovley Court West – Approximately 300 lineal feet of parkway along Hovley Lane West and 550 lineal feet along Monterey Avenue south of Hovley Lane West (approx. sq. ft. 12,675)

32. Diamondback – Diamondback Road; approximately 280 lineal feet of parkway along Hovley Lane West (approx. sq. ft. 3,600)

33. Palm Court – Palm Court; approximately 280 lineal feet of parkway along Hovley Lane West (approx. sq. ft.3,600)

2.0 GENERAL SERVICES TO BE PERFORMED
Contractor shall provide the necessary labor and equipment to maintain the areas listed in the specified locations, at the level of maintenance and service defined by City of Palm Desert. The work shall include, but is not limited to, proper horticultural practices, as defined in the City of Palm Desert Landscape Maintenance Manual, maintenance of all landscape materials and hardscape structures as designated in the following specifications and per the Frequency Schedule.

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

2.2 Contractor shall provide personnel fully trained in all phases of landscape maintenance, tree maintenance, and irrigation maintenance and operation. Contractor shall provide personnel capable of effective verbal communication with City of Palm Desert representatives. If City of 1196
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Palm Desert deems personnel to be inadequate to accomplish the task, City of Palm Desert may require that the personnel be removed from the job site and replaced with personnel demonstrating the appropriate level of job knowledge, skills, and verbal communication to effectively accomplish the work.

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

2.4 Contractor shall replace, at no additional cost to City of Palm Desert for labor or materials, any plant or tree that dies beginning 30 days from commencement of the contract throughout the term of the contract, if such plant or tree demise is due to neglect, lack of maintenance, or otherwise improper care.

2.5 Contractor shall remove debris caused by all maintenance activities, including pruning and tree maintenance, on the same working day that such debris is generated.

2.6 Contractor shall provide the labor and equipment for the application of fertilizers and fertilizers with pre-emergent and post-emergent. Fertilizers with pre-emergent and postemergent will be supplied by Contractor and reimbursed by the City of Palm Desert at actual cost plus 15% mark-up. City of Palm Desert reserves the right to purchase standard fertilizer.

The application of fungicides will be performed outside the scope of this contract.

2.7 Monthly reports for irrigation, green waste and pesticide application shall be submitted no later than the first Monday of each month, for the preceding month. Monthly payments will not be processed until all required reports are received.

2.7.1 The Irrigation Monthly Report shall include, but not necessarily be limited to, the following:
date, irrigation technician identification, site identification, controller and valve identification, description of service and/or repair, statement of plant material condition as relates to water needs, and a section for general notes or comments.

2.7.2 The Green Waste Monthly Report submittal shall include the green waste facility tipping ticket. The tipping ticket shall be clearly legible and shall contain the name and address of the waste facility, the weight, and the City of Palm Desert’s name.

2.7.3 The Pesticide Application Monthly Report shall consist of a copy of the monthly report submitted to the Riverside County Agricultural Commissioner or, in the case of no pesticide applications made, a statement to that effect in the form of a letter or memorandum to City of Palm Desert.

3. SPECIFIC SERVICES TO BE PERFORMED

3.1 Litter and Trash Control

3.1.1 Contractor shall remove and appropriately dispose of all plant litter (broken branches, broken limbs, excessive leaf-drop); trash and/or paper, cans, bottles, broken glass; dog 1197
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droppings and any other out-of-place or discarded items. Plant litter includes plant debris caused by extreme temperatures or high winds.

3.1.2 Where trashcans and/or doggy stations are present, Contractor shall remove and dispose of their contents and replace the liners (City of Palm Desert may provide trash bags).

Contractor shall wipe surfaces clean with a non-toxic cleaning solution.

3.2 Pest Control

3.2.1 Gophers will be controlled on an as-needed basis using City of Palm Desert-approved traps, within the scope of this contract. Ground squirrel control will be performed on an asneeded basis and is outside the scope of this contract.

3.2.2 Ants will be controlled on an as-needed basis, and is included in the scope of the contract.

Red Imported Fire ant control is outside the scope of this contract. If Red Imported Fire ants are encountered the Contractor shall report the discovery to the City of Palm Desert prior to the end of the workday.

3.2.3 Contractor shall immediately report any bee activity (swarms or hives) detected to the City of Palm Desert. Bee removal is the responsibility of City of Palm Desert.

3.2.4 Aphids will be chemically controlled on oak trees in parking lots and along parkways. Fruit set will be chemically controlled on olive trees. These trees are located adjacent to parking lots, sidewalks, and hardscape areas designated for pedestrian traffic and use. Any recommended chemical treatment and the schedule for its application must be reviewed and approved in advance by City of Palm Desert. City of Palm Desert, at its discretion, may require from Contractor all Material Safety Data Sheets, pesticide labels, and Pesticide Control Advisor recommendations for all pesticide applications performed. Contractor will be responsible for the material and labor and perform this work as well for all posting as required by label and law.

3.2.5 Contractor shall provide control and/or eradication of all weeds, as needed. Areas to be weeded include: planters, gravel and decomposed granite areas, sidewalks, curbs, expansion joints, fence lines, drainage areas, cobble areas, bare areas, and the area around trees.

3.2.6 Mechanical and/or chemical methods of weed control are acceptable for annual and perennial weeds with the exception of Bermuda grass, nutsedge, and bindweed, which shall be controlled by chemical means only.

3.2.7 Contractor shall remove any debris generated by the weed control process after weeds have been sprayed and plant death has occurred.

3.2.8 Weeds in turf areas will be managed on an as-needed basis and shall be considered extra work.

3.3 Plant Maintenance

3.3.1 All plant material in the public right-of-way shall be maintained behind the curb line and/or sidewalk to allow for the safe passage of vehicles, pedestrians and/or the public.

3.3.2 Dead flower stalks shall be pruned from plants at the conclusion of flowering. If plants (such as agaves) die after flowering, Contractor will remove the entire plant and, if needed, shall repair the irrigation and backfill the hole. There shall be no dead blossoms, stalks, branches or 1198
Contract No. ___________
Exhibit “A”
Revised 01-2024
BBK 72500.00001\32374915.1
foliage left on an otherwise healthy plant for more than one month, unless otherwise directed by City of Palm Desert and/or the contract documents. If offshoots are present, they will be left in place, and irrigation will be adjusted to assure adequate water supply to the offshoots.

3.3.3 Dead or weather-damaged plant material shall be pruned or removed under direction from City of Palm Desert within one week of notification.

3.3.4 The City of Palm Desert encourages contractors to familiarize themselves with the City of Palm Desert’s “Landscape Maintenance Guidelines” book. The book, intended to serve as a visual guide to contractors, also provides pruning techniques and a calendar for ideal maintenance timing. The City of Palm Desert may, at its own discretion, alter time-lines or techniques and supply additional reference materials, as the City of Palm Desert deems necessary.

3.3.5 Plant material will be pruned as needed, to keep plant material to scale based on the planter size, plant species, plant location and for safety purposes. The City of Palm Desert will work with the Contractor to determine appropriate size for each plant species. In addition, the Contractor shall perform a yearly pruning to reduce the size and density of all shrubs and groundcovers, as directed by the City of Palm Desert.

3.3.6 Plant material installed by the Contractor shall be warrantied for a period of ninety days from the date of acceptance by the City’s Representative.

3.4 Tree Maintenance

3.4.1 All tree pruning shall be consistent with the current and applicable International Society of Arboriculture (ISA) guidelines, the American National Standards Institute (ANSI) standards, the City of Palm Desert's Landscape Maintenance Guidelines book and the Tree Pruning Ordinance.

3.4.2 Contractor shall perform safety and sucker pruning on all trees (including palms) eight feet (8) in height and under. All broadleaf and palm tree pruning will be performed outside this contract. Contractor shall prune fronds, flowers, and seed pods on all palms that have six (6) feet of brown trunk or less. City of Palm Desert may request that a Certified Arborist be on site when Contractor’s staff safety prunes trees.

3.4.3 Tree branches shall be pruned as needed for traffic and pedestrian safety. Sidewalk clearance will be eight (8) feet and vehicular clearance fourteen (14) feet from grade. Any broken, dead or detached limb is considered a hazard and upon notice from City of Palm Desert, Contractor must remove such limbs by close of business the same day.

3.4.4 Trees broken or damaged as a direct result of storm, wind, accident, vandalism or structural failure shall be pruned and/or removed, upon City of Palm Desert’s request to Contractor, within 24 hours of notification and shall be an extra to this contract. Any debris blocking roadways or parking areas shall be removed within one hour of notification to Contractor. Replacement of trees and plants caused by reasons not related to contractual maintenance shall be reimbursable at an extra cost.

3.4.5 Trees planted by the Contractor shall be warrantied for a period of one-year from the date of the acceptance by the City’s Representative.

3.5 Turf Maintenance – General
1199
Contract No. ___________
Exhibit “A”
Revised 01-2024
BBK 72500.00001\32374915.1

3.5.1 All turf areas must be mowed in a manner that provides for the adequate and safe use of each facility for its intended purpose.

3.5.2 Bermuda grass will be mowed at ¾” height during the active-growth period.

3.5.3 Rye grass will be mowed at 1” height starting with its first cut after over-seeding and continuing until spring when the Bermuda grass becomes active.

3.5.4 All turf areas will be mowed weekly and may be mowed with rotary mowers; however, if City of Palm Desert deems that the finished turf surface is irregular, aesthetically unacceptable, or if it creates a potential public safety issue, City of Palm Desert will require the turf area to be mowed with a reel mower. Excess clippings will be raked, swept and/or vacuumed leaving a regular, clean, acceptable and safe turf surface. Removal of clippings will be at no extra cost to the City of Palm Desert.

3.5.5 Detailing and edging of turf shall include chemical and/or mechanical detailing using a string trimmer or an edger around buildings, sidewalks, mow strips, paved areas, valve boxes, goal posts, light fixtures, fence lines, walls, along infield edges, behind back-stops, drainage areas, and bare areas in planters. Only an edger shall be used on but not be limited to hardscape areas such as sidewalks and mow strips. All other areas may use an edger or string trimmer as appropriate and as approved by City of Palm Desert.

3.5.6 Contractor shall provide the labor and equipment for the application of fertilizers and fertilizers with pre-emergent(s) and post-emergent(s). Contractor will supply fertilizer and fertilizer with pre-emergent and post-emergent. City of Palm Desert may supply standard fertilizer. In the event Contractor supplies standard fertilizer, the City of Palm Desert will reimburse Contractor at actual cost plus 15% mark-up. The Contractor shall apply irrigation immediately following any fertilizer application to effectively wash the product into the soil.

Contractor shall also post notifications as required by the product labeling and law.

3.5.7 Mechanical core aeration shall be performed to a minimum depth of four inches (4”).

Cores may be swept or mowed and dispersed during mowing operations unless otherwise requested by City of Palm Desert

3.6 Turf Maintenance – Over-seeding

3.6.1 Turf areas designated for over-seeding will be indicated in the Frequency Schedule. City of Palm Desert will provide specific dates for the over-seeding schedule.

3.6.2 Contractor shall begin lowering the height of the turf during the scheduled weekly mowing approximately three weeks before the final cut. One week before the final cut, Contractor will reduce irrigation to the minimum in the turf areas. Contractor shall mow turf to a height of onehalf inch (1/2”) and mower blades shall not be allowed to disturb the soil.

3.6.3 All grass clippings generated from this process will be vacuumed, swept or raked after each cut.

3.6.4 A light irrigation syringe cycle will be applied before the final cut to keep the dust levels to a minimum (per Coachella Valley Association of Governments guidelines).

3.6.5 The City of Palm Desert may supply grass seed. However, the City of Palm Desert may request that Contractor supply City of Palm Desert specified grass seed and be reimbursed at 1200
Contract No. ___________
Exhibit “A”
Revised 01-2024
BBK 72500.00001\32374915.1
the cost of material plus an allowable mark-up of fifteen percent (15%). The application rate for the seed shall be no less than ten (10) pounds per 1,000 square feet. The Contractor shall also spot seed and mulch as necessary, areas after germination to ensure a well-covered rye stand, at no additional labor cost as directed by the City of Palm Desert. The Contractor is to verify and confirm quantity of seed bags with City of Palm Desert personnel prior to installation and after seeding task is complete.

3.7 Turf Maintenance for Non-Over-seeded Areas

3.7.1 From November 1 through March 31, mowing and irrigation on non-over-seeded turf areas will be reduced per the Frequency Schedule.

3.8 Hardscape, and Decomposed Granite (DG) Planter Areas

3.8.1 Contractor shall remove any sand, gravel, grass, and plant clippings or debris from all sidewalk and hardscape areas after all maintenance activities or as indicated in the Frequency Schedule.

3.8.2 Daily sidewalk cleaning shall consist of removing debris from sidewalks by blowing or sweeping. Blower throttle to be maintained at the lowest practical setting possible.

3.8.3 Contractor shall rake planter areas. Contractor shall also rake underneath living plant material, unless directed not to do so by City of Palm Desert. Slope areas are to be raked horizontally and not from top to bottom. If existing grade is adversely affected by raking activities, Contractor shall re-establish an appropriate grade to the satisfaction of City of Palm Desert.

3.8.4 Contractor shall remove litter and debris obstructing spillways and their associated drain grates. This activity shall take place according to the Frequency Schedule, and after a rain event as determined by City of Palm Desert staff.

3.8.5 Contractor shall utilize pressure-washing equipment with a minimum pressure rating of 3000 PSI to pressure-wash the following items: playground equipment, monuments, signs, sidewalks, curbs, gutters, drains, benches, dog park fixtures, drinking fountains, picnic tables, and other miscellaneous hardscape fixtures, in accordance with the Frequency Schedule. The Contractor shall, as directed by the City of Palm Desert, employ a scrub brush and a City of Palm Desert-approved non-toxic biodegradable cleaning agent to adequately clean the aforementioned items, in a manner deemed acceptable by the City of Palm Desert. The cost for this work shall be considered included in the contract lump sum bid price, and no additional compensation shall be provided for this work.

3.9 Irrigation System Maintenance

3.9.1 The operation, maintenance, and scheduling of all irrigation controllers and attached sensors shall be the responsibility of Contractor. Contractor will adjust the controllers, sensor equipment, and schedules based on property microclimates, ET, rain events, and over-seeding schedules. Contractor will schedule irrigation to provide adequate irrigation to plant material while conserving water as much as possible. NOTE: Irrigation systems that are not Smart Controllers and will require manual adjusting.
1201
Contract No. ___________
Exhibit “A”
Revised 01-2024
BBK 72500.00001\32374915.1

3.9.2 All irrigation systems and their individual components shall be kept in adjustment to ensure proper water coverage and prevent unacceptable conditions such as insufficient water distribution (plant death), overspray, excessive runoff, and erosion.

3.9.3 Repairs or replacements to the irrigation system shall be made with like parts.

3.9.4 Contractual irrigation system maintenance includes all labor for system inspections, adjustments, repairs and installations for all system components, in-line irrigation valves, including internal and electrical components, irrigation wires from the timer to the valve, and all mainline and lateral line repairs two inches (2”) and smaller in diameter, unless damage is caused by vandalism. Should vandalism occur, the Contractor is to notify City of Palm Desert staff immediately and prior to the repair work. All irrigation rotors, bubblers, emitters, associated fittings, and valve boxes shall be included under contractual system maintenance. Any repair work outside of this scope will be considered extra work and paid accordingly. All parts shall be provided by the Contractor and will be reimbursed by the City of Palm Desert at actual cost plus a fifteen percent (15%) mark-up, unless the replacement is due to damage caused by the Contractor’s operation, in such case the Contractor shall bear the entire cost. Adjustments, repairs and installations shall include:

3.9.4.1 Valves: electrically actuated irrigation control valves, quick coupler valves, end line flush valves, lateral line flush valves, and master valves. All valves will be checked for proper operation, leaks, and solenoid function and connections (where applicable).

Automatic valves will be activated from the irrigation controller, not from the bleeder valve.

3.9.4.2 The electrical circuit from the irrigation controller to the valve will be checked for proper operation. Labor cost for the actuator’s replacement shall be included in the contract lump sum bid price, and no additional compensation shall be allowed therefor.

3.9.4.4 Filter, filter screen, and filter valve box cleaning.

3.9.4.4 Lateral lines will be checked for breaks and leaks, and will be flushed at least yearly and additionally when necessary to ensure proper system performance.

3.9.4.5 Emission device and valve box checks, adjustments, installation, maintenance and repairs shall include: sprinkler head and valve box height adjustment and replacement; nozzle spray pattern adjustment; nozzle cleaning and replacement; bubbler head height adjustment, cleaning, and replacement; tree well repair; and drip emitter cleaning, replacement, removal and plugging if no plant material is present. Installation of new emitters, or bubblers, as required to ensure the health of plant material, shall be included in the contract lump sum bid price and no additional compensation shall be allowed therefor.

3.9.4.6 The Contractor shall perform, at a minimum, a weekly visual irrigation Inspection, within the designated landscape maintenance area, for leaks, dry areas, and vandalism. Contractor shall take appropriate action to immediately stabilize the system. Such actions shall be reported to the City of Palm Desert within twentyfour (24) hours of discovery and performance of necessary repairs. 1202
Contract No. ___________
Exhibit “A”
Revised 01-2024
BBK 72500.00001\32374915.1

3.9.4.7 Contractor shall maintain an adequate supply of irrigation parts readily available to Contractor’s irrigation technician for making routine repairs of main and lateral lines two inch (2”) in diameter and smaller without leaving the irrigation site.

3.9.5 Non-contractual irrigation system repairs:

3.9.5.1 No non-contractual work will be initiated without an approved City of Palm Desert Work Order.

3.9.5.2 When irrigation system malfunction or damage is detected, the repair of which is noncontractual in nature, Contractor will flag the location and notify City of Palm Desert before the close of business the same workday.

3.9.5.3 Upon receipt of an approved Work Order, repairs to a non-operational and/or damaged irrigation system shall be completed within 24 hours, or as otherwise indicated on the Work Order.

3.9.5.4 All repairs deemed non-contractual will be paid on a time-and-materials basis.

3.9.5.5 Labor will be billed per the rates under the Performance of Extra Work heading.

3.9.5.6 Materials will be billed at “cost plus 15%” or, at City of Palm Desert’s discretion; materials may be supplied to Contractor by City of Palm Desert.

3.9.5.7 Contractor shall return to City of Palm Desert all irrigation parts that have been replaced.

3.9.5.8 City of Palm Desert will perform regular inspections of irrigation systems to ensure accuracy of Contractor’s irrigation reports. If discrepancies are found, City of Palm Desert shall consider this a performance deficiency.
1203
Contract No. ___________
Exhibit “B”
Revised 01-2024
BBK 72500.00001\32374915.1
EXHIBIT “B”

SCHEDULE OF SERVICES
The term of this Agreement shall be from July 1, 2025, to June 30, 2028, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two (2) additional one-year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.
1204
Contract No. ___________
Exhibit “C”
Revised 01-2024
BBK 72500.00001\32374915.1
EXHIBIT “C”

COMPENSATION
The total annual compensation shall not exceed Two Hundred Thirty-Six Thousand, Four Hundred Sixty Dollars ($236,460.00) per fiscal year and may only be adjusted for Consumer Price Index for all Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario, CA Region rate for the 12-month period ending May, with written approval from the City Council or City Manager following FY 2025-26, as applicable. The City may request additional work at the same rates and manner as set forth in this Agreement on an as needed basis as specified in Section 3.3.5. Contractor shall not perform Extra Work, presume Extra Work will be guaranteed, nor be compensated for Extra Work without written authorization from the City. Work performed as Extra Work shall not exceed the amount of Sixty Thousand Dollars ($60,000.00) per fiscal year.

Payment and Performance Bonds apply and will follow after the compensation. 1205
Contract No. ___________
Exhibit “C”
Revised 01-2024
BBK 72500.00001\32374915.1
1206
Contract No. ___________
Exhibit “C”
Revised 01-2024
BBK 72500.00001\32374915.1
1207
1208
Contract No. ___________
Exhibit “C”
Revised 11-2-20
BBK 72500.00001\32374915.1

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to Horizon Professional Landscape Inc, (hereinafter referred to as the “Contractor”) an agreement for Landscape Maintenance Area No. 7 Project, Project No. MLS00013 (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, Horizon Professional Landscape, Inc, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the annual sum of Two Hundred Ninety-Six Thousand, Four Hundred Sixty Dollars, ($296,460.00), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

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

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

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

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]
1210
Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____.
(Corporate Seal)
Contractor/ Principal
By ____________________ ____
Printed name: _______________________
Title: ______________________________
(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.
1211
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1212
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1213
Contract No. ___________

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS That
WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed June 12, 2025, has awarded to Horizon Professional Landscape, Inc, hereinafter designated as the “Principal,” a contract for the work described as follows:

Landscape Maintenance Area No. 7 Project, Project No. MLS00013 (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 City in the annual penal sum of Two Hundred Ninety-Six Thousand, Four Hundred Sixty Dollars, ($296,460.00) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or 1214
Contract No. ___________
attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]
1215
Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By ____________________ ____
Printed name: _______________________
Title: ______________________________
(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.
1216
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1217
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1218
City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-169
Landscape Maintenance Area (LMA) No. 7
RESPONSE DEADLINE: April 17, 2025 at 5:00 pm
Report Generated: Tuesday, April 29, 2025
HORIZON PROFESSIONAL LANDSCAPE INC Response

CONTACT INFORMATION
Company:

HORIZON PROFESSIONAL LANDSCAPE INC
Email:
[email protected]
Contact:

Rafael Mendoza
Address:
48727 Charlton Peak St
Coachella, CA 92236
Phone:
(760) 333-9371
Website:

N/A
Submission Date:

Apr 17, 2025 3:37 PM (Pacific Time)
1219
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-169
Landscape Maintenance Area (LMA) No. 7
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 7

ADDENDA CONFIRMATION
Addendum #1
Confirmed Apr 7, 2025 2:19 PM by Rafael Mendoza

QUESTIONNAIRE

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

A. Cover Letter

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

B. Experience and Technical Competence

1. Background: Provide history of the firm’s consulting experience which specifically addresses the individual or firm’s experience with similar Service as described in this RFP.

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

C. Firm Staffing and Key Personnel

1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as well as your firm’s capacity to provide additional personnel as needed. 1220
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-169
Landscape Maintenance Area (LMA) No. 7
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 7

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

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

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

D. Proposed Method to Accomplish the Work

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

Palm_Desert_Presentation_LMA_7.docx

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. 1221
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-169
Landscape Maintenance Area (LMA) No. 7
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 7

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. 799029
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. 1000534321
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
1222
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-169
Landscape Maintenance Area (LMA) No. 7
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 7

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

Crew_Resumes.docx

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) A. Full Name
B. Title
C. Physical Business Address
D. Email Address
1223
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-169
Landscape Maintenance Area (LMA) No. 7
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 7

E. Phone Number
Rafael Mendoza
President
48727 Charlton Peak St, Coachella, CA 92236
[email protected]
760-333-9371
Eric Mendoza Lee
Vice-President
48727 Charlton Peak St, Coachella, CA 92236
[email protected]
760-485-4737

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

LANDSCAPE AND LIGHTING DISTRICTS
1224
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-169
Landscape Maintenance Area (LMA) No. 7
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 7

Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 Waring Court 12 Months $219.00 $2,628.00
2 Vineyards 12 Months $230.00 $2,760.00
3 Portola Place 12 Months $219.00 $2,628.00
4 The Grove 12 Months $1,200.00 $14,400.00
5 Palm Gate 12 Months $137.00 $1,644.00
6 Primrose I 12 Months $340.00 $4,080.00
7 Desert Mirage 12 Months $565.00 $6,780.00
8 Canyon Crest 12 Months $295.00 $3,540.00
9 College View Estates I 12 Months $295.00 $3,540.00
10 College View Estates II 12 Months $330.00 $3,960.00
11 Sundance West 12 Months $290.00 $3,480.00
12 Sundance East 12 Months $160.00 $1,920.00
13 Petunia I 12 Months $340.00 $4,080.00
14 Boulders 12 Months $520.00 $6,240.00
15 Kaufman & Broad 12 Months $1,000.00 $12,000.00
16 Palm Desert Country Club 12 Months $900.00 $10,800.00 1225
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-169
Landscape Maintenance Area (LMA) No. 7
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 7

Line Item Description Quantity Unit of
Measure
Unit Cost Total
17 President's Plaza I 12 Months $2,805.00 $33,660.00
18 President's Plaza II 12 Months $2,805.00 $33,660.00
19 President's Plaza III 12 Months $3,600.00 $43,200.00 20 The Glen 12 Months $295.00 $3,540.00
21 Monterey Meadows 12 Months $145.00 $1,740.00
22 Sonata I 12 Months $365.00 $4,380.00
23 Sonata II 12 Months $800.00 $9,600.00
24 Hovley Estates 12 Months $150.00 $1,800.00
25 La Paloma I 12 Months $165.00 $1,980.00
26 La Paloma II 12 Months $165.00 $1,980.00
27 La Paloma III 12 Months $140.00 $1,680.00
28 Hovley Collection 12 Months $400.00 $4,800.00
29 Sandpiper Court 12 Months $170.00 $2,040.00
30 Sandpiper Court West 12 Months $175.00 $2,100.00
31 Hovley Court West 12 Months $255.00 $3,060.00
32 Diamondback 12 Months $115.00 $1,380.00
1226
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-169
Landscape Maintenance Area (LMA) No. 7
[HORIZON PROFESSIONAL LANDSCAPE INC] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 7

Line Item Description Quantity Unit of
Measure
Unit Cost Total
33 Palm Court 12 Months $115.00 $1,380.00
TOTAL $236,460.00
1227

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029

HORIZON

PROFESSIONAL LANDSCAPE
INC.
“Standing where others aim…”
LIC: 799029
COACHELLA. CA
PHONE: (760) 333-9371
1228

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
Cover Letter:

Horizon Professional landscape Inc. is a company established in the Coachella Valley in 2001 and has been dedicating our work locally since then. The areas of work we cover range from general maintenance to landscape re-designs, most throughout Palm Desert.

After working for several years in most Cities of The Coachella Valley, we decided to narrow our radius of operation, selecting The City of Palm Desert as the center of all.

We recognized and preferred the challenges that this City faced in its intends and the need to grow. And admired the dedication, the knowledge and professionalism of the staff.

Horizon Professional Landscape Inc is currently maintaining Desert Willow Golf Course Perimeter (LMA 06 and LMA 07); and have crews working in Palm Desert every day with trucks and equipment ready to assist in case of emergency or any request needing fast attention.

We hope to continue operating in Palm Desert and would like to thank you for the opportunity to submit our proposal for LMA 7.

Rafael Mendoza Rafael Mendoza L.

Horizon Professional Landscape Inc
1229

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
Experience:

We have completed several projects for the city of Palm Desert and are comfortable working with the city inspectors and staff.

Project Client Description of Bidder’s
Work
Completion Date

DESERT WILLOW,

COUNTRY CLUB DR

REHABILITATION
CITY OF PALM DESERT LANDSCAPE UPGRADE 12/2020

WASHINGTON RAMP

CALSENSE CONTROLLER

CITY OF PALM DESERT UPGRADING OF

CONTROLLER AND
VALVES
07/2021

DESERT WILLOW GOLF

CART BRIDGE REPAIR

CITY OF PALM DESERT REMOVE AND REPLACE

ALL WOOD STRUCTURE
01/2021

FREEDOM PARK PICKLE

BALL COURT

IMPROVEMENTS

CITY OF PALM DESERT LANDSCAPE

IMPROVEMENTS
04/2020

SUNBURST RV STORAGE GUY EVANS LANDSCAPE

CONSTRUCTON
01/27/2023
Desert Willow
Perimeter
Landscape and
Lighting
Rehabilitation Phase
2 Project
CITY OF PALM DESERT LANDSCAPE UPGRADE 08/2023
1230

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
Staff:

Rafael Mendoza, President
I am a certified Landscape Technician and have received training in tree pruning. I hold a QAL category B for Pesticides, as well as a Pesticide Business License.

Eric Mendoza Lee, Irrigation Technician, Pesticide Applicator Eric is a Landscape technician in training, assisting in irrigation repairs and concerns. He is our Herbicide applicator and holds a QAL Category B.

Julian Gonzalez, Foreman
Julian is our Foreman, he has over 20 years of experience with Horizon, maintaining our commercial areas and projects.

Daniel Aguayo, Crew
Daniel has been with the company for 5 years now. He has been maintaining areas of Palm Desert since before joining us, making him very familiar with the jobsites.

Jalil Mendoza, Crew Helper
Jalil is the newest team member. With now 1 year of experience, she is an essential part of the team.

Emilio Parada, Foreman
Emilio has over 20 years of experience with Horizon, maintaining our commercial areas and projects.
1231

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029

REFERENCES

AGENCY AND

CONTRACT

CONTRACT SITE CONTRACT
AMOUNT

CONTRACT TERM FIRST YEAR

CONTRACT

CONTACT

INFORMATION
City of Palm
Desert
73510 Fred Waring
Dr. Palm Desert, CA
92260
Desert Willow
Golf Course
Perimeter
(LMA 6)
Desert Willow Dr.

Palm Desert, CA
92260
$163,096
2018-Present
Erin Bohler
(760) 851-5244
City of Palm
Desert
73510 Fred Waring
Dr. Palm Desert, CA
92260
Landscape
Maintenance
Area 7
$217,980
2021-Present
Joe Rojas
(760)574-4153
Greenwood
& McKenzie
440 First Street,
Ste 201 Tustin,
CA 92780
Village Plaza
HWY 11 & Village
Ctr Dr Indian
Wells, CA 92210
$55,000 2002-Present
Matt Anderson
(714) 544-4603
1232

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
Ocean
Properties
1919 Grand Ave
Ste 2A San Diego,
CA 92109

ONE EL PASEO
PLAZA
El Paseo and HWY
111
Palm Desert, CA
92260
$35,000 2004-Present
Sam Rasmussen
(619) 997-6828
1233

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
Proposed Method to accomplish work:

HORIZON PROFESSIONAL LANDSCAPE INC has done work for
the City of Palm Desert since 2002. We know and understand the expectations of the city. We have met the standards of the tasks.

We are currently servicing the LMA 07 since 2021, and even though our contract requires monthly service, we follow a weekly schedule, servicing every job, every week. We have a supervisor and irrigation tech, besides our maintenance crews, to respond to emergencies and take care of issues.

Out of the 33 jobs, four stand out.
-THE GROVE: because it has lawn and requires more attention. -PRESIDENTS PLAZA I, PRESIDENTS PLAZA II, AND PRESIDENTS PLAZA III: because it is a newly renovated parking lot, expectations are higher from tenants. We check and clean trash enclosures twice a week, because of homeless activity and illegal dumping.

Planters facing the street have to always look clean.
1234

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
Work Examples:
1235

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
1236

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
1237

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
1238

HORIZON PROFESSIONAL LANDSCAPE INC
“Standing where others aim…”
Coachella, CA PH: (760)-333-8349 Lic# 799029
1239
Crew:

Rafael Mendoza, President
I am a certified Landscape Technician and have received training in tree pruning. I hold a QAL category B for Pesticides, as well as a Pesticide Business License.

Eric Mendoza Lee, Irrigation Technician, Pesticide Applicator Eric is a Landscape technician in training, assisting in irrigation repairs and concerns. He is our Herbicide applicator and holds a QAL Category B.

Julian Gonzalez, Foreman
Julian is our Foreman, he has over 20 years of experience with Horizon, maintaining our commercial areas and projects.

Daniel Aguayo, Crew
Daniel has been with the company for 5 years now. He has been maintaining areas of Palm Desert since before joining us, making him very familiar with the jobsites.

Jalil Mendoza, Crew Helper
Jalil is the newest team member. With now 1 year of experience, she is an essential part of the team.

Emilio Parada, Foreman
Emilio has over 20 years of experience with Horizon, maintaining our commercial areas and projects.
1240
cy Ln
ald Ford Dr
Hovley Lane W
Monterey Ave
Portola Avenue
Frank Sinatra Drive
Monterey Avenue
Gerald Ford Drive
Monterey
Country Club
Desert Willow
Palm Desert
Bursera Way
111
Shadow
Mountain
Resort
Ivey Ranch
Country Club
Varner Rd
Yucca Ln
Avenue 38
Warner Trai
Merle Drive l
Wa shington St
Fred Waring Dr
Hovley Lane E
Frank Sinatra Drive
Gera ld Ford Drive
Cook Street
Washington Street
Fred Waring Drive
Classic Club
Golf Course
Indian Wells
Golf Course
Toscana
Country Club
Indian Ridge
Country Club
Palm Valley
Country Club
The Lakes
Country Club
Desert Falls
Country Club
Palm Desert
Country Club
Coachella
Valley National
Wildlife Refuge
Miles Ave
Fairway Dr
111
El Dorado
Country Club
Indian Wells
Country Club
Vintage Club
Indian Wells

HOVLEY LN E

PORTOLA AVE

COUNTRY CLUB DR

COOK ST

COUNTRY CLUB DR

HOVLEY LN E

COOK ST

MAGNESIA FALLS DRSAN PABLO AVE

ELDORADO DR

HOVLEY LN E

OASIS CLUB DR

COUNTRY CLUB DR

WASHINGTON ST

FRANK SINATRA DR

ELDORADO DR

TAMARISK ROW DR
INTERSTATE 10

COOK ST

FRANK SINATRA DR

PORTOLA AVE

MONTEREY AVE

MONTEREY AVE

PORTOLA AVE

GERALD FORD DR

COOK ST

GERALD FORD DR
INTERSTATE 10

HOVLEY LN W

PORTOLA AVE
HWY 111 MONTEREY AVE

FRED WARING DR WARNER TRL

FRED WARING DR
HWY 111

EL PASEO

DEEP CANYON RD

COOK ST

FAIRWAY DR

MOUNTAIN DR
SHADOW
HWY 74

PORTOLA AVE

MONTEREY AVE

EL PASEO

FRED WARING DR

ELDORADO DR

VARNER RD

MILES AVE

DINAH SHORE DR
Sources: Esri, TomTom, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community
LMA 7
I

VICINITY MAP
Landscape Area 7
I 2025
Shepherd Lane
Frank Sinatra Drive
P
ortola Avenue
Gerald Ford Drive

PORTOLA AVE

GERALD FORD DR
Sources: Esri,
TomTom, Garmin,

FAO, NOAA, USGS,
© OpenStreetMap
contributors, and the
GIS User Community
Vista Dunes Rd
Verbenia Rd
Hovley Lane W
Monterey Ave

HOVLEY LN W

MONTEREY AVE
Sources: Esri, TomTom,
Garmin, FAO, NOAA, USGS,
1241
1242

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: June 12, 2025
PREPARED BY: Neal Ennis, Project Manager
SUBJECT: APPROVE CHANGE ORDER NO. 1 TO CONTRACT C47860 WITH ALL

AMERICAN ASPHALT FOR THE HAYSTACK ROAD TRAFFIC CALMING
AND SAFETY IMPROVEMENTS PROJECT, PROJECT NO. CST00006
RECOMMENDATION:

1. Authorize an increase of $22,973.56 to the contingency budget to account for unforeseen construction-related issues.

2. Approve Change Order No. 1 to Contract C47860 with All American Asphalt, of Corona, CA, in the amount of $78,090.56 for the Haystack Road Traffic Calming and Safety Improvement Project (CST00006).

BACKGROUND/ANALYSIS:

On August 22, 2024, the City Council awarded a contract to All American Asphalt in the amount of $551,177, plus 10% contingency. This project provided slurry seal coat from Hwy 74 to Portola Ave, as well as driving lane alignment modifications, ADA improvements, crosswalks, and dedicated bike lanes. The goal of this project was to implement the active transportation plan and increase pedestrian safety features.

During the construction phase, a number of unforeseen issues emerged that required additional work beyond the original project scope. One major issue was the large gutter extensions that stuck out into the driving lane, creating uneven surfaces that were unsafe for cyclists to ride over.

To address this, the extensions were removed and replaced with asphalt surfacing to improve the smoothness and overall rideability for bicycles. Additionally, the quantity of materials and labor required for the installation of ADA-compliant ramps significantly exceeded the initial estimates included in the bid documents. These issues led to an increase in the project costs and require an adjustment to the budget. Of the total change order amount, 88% ($68,938.05) is attributed to an unforeseen safety issue, while the remaining 12% ($9,152.51) covers additional material and labor for the ADA ramps.

The original approval included contingency in the amount of $55,177, intended to cover additional work due to field conditions, but is not sufficient. The total cost for the required materials and labor amounts to $78,090.56. Consequently, staff is requesting an additional $22,973.56 to cover these costs and finalize payment to the contractor.

Legal Review:

This report has been reviewed by the City Attorney’s Office. 1243
City of Palm Desert
Approve Change Order No. 1 to Contract C47860 - Haystack Road Traffic Calming (CST00006)

FINANCIAL IMPACT:

The Haystack Road Traffic Calming Project was approved as part of the Fiscal Year 2024-25 Capital Improvement Program (CIP) under Measure A account 2134565-5000909. This action will have no impact on the General Fund.

The table below outlines the current project budget and associated costs:

Haystack Road Traffic Calming Project (CST00006) Approved Budget Expenditures AvailableBalance
Haystack (CST00006) 1,159,779.97
Engineering Design (KOA Corporation #C37870A) 317,396.81 Traffic Safety - Radar Speed Signs (TrafficCalm Systems) 24,669.16 Plan Review (Michael Baker Int'l #C40520) 2,750.00
Construction Mgmt (Anser Advisory #C44810) 206,930.00
Const-Intersection Mods (Chrisp Co. #C43340) 56,857.00
Const-Curb Ramps & Bikeway Imps (All American Asphalt
#C47860) 551,177.00
Const-10% Contingency 55,117.00
Less: Change Order #1 (This Request) 78,090.56
Change Order #1 (Increase to Contingency Necessary) 22,973.56 Totals 1,237,870.53 1,237,870.53 0
ATTACHMENTS:

1. Change Order No. 1 to Contract C47860

2. Contractor Proposal

3. Vicinity Map

4. C47860 All American Asphalt

5. Staff Report Award Contract C47860
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Contractor shall construct, furnish all supervision, labor, services, equipment, and materials, and perform all work necessary or required to fully complete the changes to the Contract described in this Change Order for the amount agreed upon between the Contractor and the City of Palm Desert (“City”).

Contract Purpose:

Contractor Name:
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C47860 24251535
1 ✔
2134565-5000909
CST00006
V0014033
Haystack Road Curb Ramps & Class II Bikeway
All American Asphalt
Neal Ennis
Remove Existing AC Pavement and Base (100.5 SF) $ 804.00 Remove Existing PCC Sidewalk (321.75 SF) $ 1,287.00
Asphalt Concrete (49.54 Tons) $ 61,925.00
Slurry Seal (1,061 SF) $ 318.30
PCC Sidewalk (610.17 SF) $ 9,152.51
6" PCC Curb (273.5 LF - Quantity Reduction) ($ 13,675.00) 12" Curb (0.5 LF - Quantity Reduction) ($ 22.50)
Cross Gutter and Spandrel (732.05 SF) $ 18,301.25
($ 13,697.50) $ 91,788.06
$ 78,090.56
Existing large spandrel gutter extensions that extended into the driving lane, creating potential safety concerns and limiting accessibility for cyclists and quantity of materials and labor required for the installation of ADA-compliant ramps exceeded the initial estimate.
$ 551,177.00
$ 55,117.00
$ 606,294.00
$ 551,177.00
$ 78,090.56
-$ 22,973.56
$ 55,117.00
$ 0.00
$ 78,090.56
-$ 22,973.56
The amount of the contract will be increased by the sum of:

Seventy Eight Thousand Ninety 56 $ 78,090.56
$ 629,267.56
1245
Continued from Front
Contract No. _________ Contract Change Order No. ___
Contract Time Extension: __________________________
Contractor accepts the terms and conditions stated above as full and final settlement of any and all claims arising out of or related to the subject of this Change Order and acknowledges that the compensation (time and cost) set forth herein comprises the total compensation due for the work or change defined in the Change Order, including all impact on any unchanged work. Execution of this Change Order by the Contractor constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the City from all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of the Change Order, whether known or unknown, including but not limited to direct and indirect costs and/or damages for delay, disruption, acceleration, loss of productivity, and stacking of trades, as well as any and all consequential damages. The adjustments to the Contract Price and Contract Time in this Change Order constitute the entire compensation and/or adjustment thereto due to Contractor, including but not limited to all direct, indirect, consequential, profit, labor, equipment, tools, idle time, incidentals, and overhead (field and home office) costs, due to Contractor arising out of or related to the change in the work covered by this Change Order. The Contractor hereby releases and agrees to waive all rights, without exception or reservation of any kind whatsoever, to file any further claim or request for equitable adjustment of any type, for any reasonably foreseeable cause that shall arise out of, or as a result of, this Change Order and/or its impact on the remainder of the work under the Contract. This Change Order will become a supplement to the Contract and all provisions will apply hereto.

1. REQUESTED BY: ______________________
Department Director 2. ACCEPTED BY: ______________________Contractor

3. CERTIFIED FUNDS

AVAILABLE
______________________
Finance Director 4. APPROVED BY: ______________________ ,QWHULPCity Manager NOTE: No payments will be made prior
to City Manager RU Council approval
QC: _____
C47860 1
N/A
1246
1247
1248
Edgehill
Fron
Tamarisk Street
Canal Arroyo
Skyward Way
Haystack Road
Amber Street
Alamo Drive
Deer Grass Drive
Somera Road
Bel Air Road
Homestead Road
Ajo Lane
Calle De Los Campesinos
Mesa View Drive
74 Marrakesh
Country Club
Haystack Road
C Marrakesh Drive alliandra Street
Chia Drive
Silver Spur Trail
Sun Corral Trail
Buckboard Trail
Agave Lane
Boxthorn Lane
Reserve Drive
Dalea Lane
Portola
Ave
n
u
e
The Reserve
The Living
Desert Zoo &
Gardens
Loma Linda University, City of Palm Desert, County of Riverside, Bureau of Land Management, Esri, HERE, Garmin, INCREMENT P, USGS, EPA, USDA, Sources: Esri, TomTom, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community
Haystack Road Traffic Calming Project
Project Number CST00006
I
VICINITY MAP 1249
1250
Contract No. C47860
1 Revised 01-2024
BBK 72500.00001\32374943.1

CITY OF PALM DESERT

CONTRACT FOR CONSTRUCTION
This Agreement is made and entered into this 22nd day of August, 2024, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260- 2578, (“City”) and All American Asphalt, a Corporation, with its principal place of business at P.O. Box 2229, Corona, CA 92878 ("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:

Haystack Road Traffic Calming and Safety Improvements
Project No. CST00006
(hereinafter referred to as “the Project”).

Haystack Road Curb Ramps & Class II Bikeway Project:

Install Class II Bike Lanes and Other Striping Improvements on Haystack Road.

The Scope of work consists of demolition and removal of existing improvements, base, roadway markings, etc. needed to perform the work shown on the plans, preparation of existing subgrade, placement of erosion control measures, construction of new pavement and curb, application of street striping, markings, crosswalks and bike paths, installation of traffic signs.

Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City 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 City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 90 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 City 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 Five Hundred, Fifty-One Thousand, One Hundred, Seventy-Seven Dollars ($551,177.00). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule.

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ARTICLE 4. LIQUIDATED DAMAGES.

Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $1,000.00 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 City 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 City, 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
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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.

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 City’s choosing), indemnify, and hold harmless the City, 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 City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City 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; Docusign Envelope ID: 5842D46A-4402-4221-BD8C-ED6DACFB7304 1253
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(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 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 City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees, and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, 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 City, 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 City.

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 Docusign Envelope ID: 5842D46A-4402-4221-BD8C-ED6DACFB7304 1254
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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;
(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 City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers.

6. Pollution Liability Insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to the City 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 City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

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 Docusign Envelope ID: 5842D46A-4402-4221-BD8C-ED6DACFB7304 1255
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City 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 City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

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

5. City’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, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this 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 City’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 City, 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 City, 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 City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City 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 Docusign Envelope ID: 5842D46A-4402-4221-BD8C-ED6DACFB7304 1256
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insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

10. Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) Day notice of cancellation (except for nonpayment for which a ten (10) Day notice is required) or nonrenewal of coverage for each required coverage.

11. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City 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 City 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 City for review.

15. City’s Right to Revise Requirements. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) Days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice.

16. Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.

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17. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this 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.

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 City’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 City, 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 City 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 CITY OF PALM DESERT

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

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
City Attorney

ALL AMERICAN ASPHALT, A

CORPORATION
By:

Edward Carlson
Vice President
By:

Michael Farkas
Secretary
CLSB#267073 Class A – General Engineering
Contractor’s License Number and
Classification
DIR#1000001051
DIR Registration Number (if applicable)
QC: MN
Insurance:
_____
Initial Review
_____
Final Approval
_____
Bonds
Docusign Envelope ID: 5842D46A-4402-4221-BD8C-ED6DACFB7304 1259
1260

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 22, 2024
PREPARED BY: Neal Ennis, Project Manager
SUBJECT: AWARD CONTRACT C47860 TO ALL AMERICAN ASPHALT FOR THE

HAYSTACK ROAD TRAFFIC CALMING AND SAFETY IMPROVEMENTS
PROJECT, PROJECT NO. CST00006
RECOMMENDATION:

1. Award a Contract C47860 with All American Asphalt, of Corona, CA, in the amount of $551,177, plus a 10% contingency, for the Haystack Road Traffic Calming and Safety Improvements Project, Project No. CST00006.

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

3. Authorize the City Manager to execute the agreement and any written requests for change orders up to contingency amount, amendments, and any other documents necessary to effectuate this action, in accordance with Section 3.30.170 of the Palm Desert Municipal Code.

4. Authorize the City Manager to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory project completion.

BACKGROUND/ANALYSIS:
• In May 2021, the City Council approved amendments one and two of Contract C37870A with KOA Corporation to include professional engineering services for the Haystack Road Traffic Calming and Safety Improvements Project.
• Community engagement meetings were held with residents and cyclists to provide preferences and guidance related to the project.
o Community engagement meeting #1 – May 2021
o Community engagement meeting #2 – July 2021
o Community engagement meeting #3 – October 2021
o Community engagement meeting #4 – October 2023
• The consistent feedback regarding cyclist safety prompted a redesign to better serve the community and increase anticipated safety and use.
• The project was scaled back from Class IV bike lane design, which included dedicated separated bike lanes, to an improved Class II painted buffered bike lane design. This project includes asphalt slurry seal of Haystack Road, as well as ADA improvements and crosswalks at intersections along Haystack Road.

Request for Bids:

The project was advertised for proposals through the City’s bid management portal, OpenGov, and on July 26, 2024, two proposals were received electronically. 1261
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Award Contract C47860 with All American Asphalt for Project No. CST00006

Contractor Location Bid Amount
All American Asphalt Corona, CA $551,177.00
Pavement Coatings Co. Jurupa Valley, CA $620,724.55
The engineer’s estimate for the construction of this project is $653,000. Staff reviewed the bids received and determined that All American Asphalt submitted the lowest responsive bid. All American Asphalt has performed well for the City on previous projects. Staff recommends awarding the contract to All American Asphalt in an amount not to exceed of $551,177.

Legal Review:

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

FINANCIAL IMPACT:

Funds for this project were included in the approved Capital Improvement Project (CIP) list for Fiscal Year 2024-25 under the Measure A Fund Account No. 2134565-5000909. There is no financial impact to the General Fund from this action.

Project - CST00006
Haystack Road Traffic Calming
Measure A Approved FY
2024-25 Budget
Project
Expenditures
Funding Source 2134565-5000909 $2,034,665
Plan Review $1,625
Engineering/Design $329,020
Materials and Supplies $24,669
Construction $551,177
Construction Management $206,930
Contingency $55,117
Remaining Project Budget $866,127
ATTACHMENTS:

1. All American Asphalt Proposal

2. Construction Contract C47860

3. Payment and Performance Bonds
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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: June 12, 2025
PREPARED BY: Neal Ennis, Project Manager
SUBJECT: AWARD CONSTRUCTION CONTRACT TO AMERICAN CIVIL
CONSTRUCTORS WEST COAST, LLC, PURSUANT TO THE FY 2024-25 BRIDGE PREVENTATIVE MAINTENACE PROGRAM, PROJECT NO.

MFA00007 – CEQA DETERMINATION
RECOMMENDATION:

1. Make a finding that the project is categorically exempt from further review under the California Environmental Quality Act (CEQA) Guidelines, pursuant to Class 1, Section 15301 (Existing Facilities), and authorize the City Engineer to submit a Notice of Exemption.

2. Award contract to American Civil Constructors West Coast, LLC, of Benicia, CA, in the amount of $737,000 for the Bridge Preventative Maintenance Program (BPMP), Project No.

MFA00007.

3. Authorize the Director of Finance to set aside a 10% contingency in the amount of $73,700.

4. Authorize the City Attorney to make necessary non-monetary changes to the agreement.

5. Authorize the City Manager to execute the agreement and any written requests for change orders up to the contingency amount, amendments, and any other documents necessary to effectuate this action, in accordance with Palm Desert Municipal Code Section 3.30.170(B).

6. Authorize the City Manager to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory completion of the Project.

7. Authorize the City Manager to negotiate a Reimbursement Agreement with the City of Rancho Mirage.

BACKGROUND/ANALYSIS:

At its April 22, 2021, meeting, the City Council awarded Contract No. C41340 to Dokken Engineering for engineering and design of bridge maintenance based on recent bridge inspection reports, and to establish a preventative bridge maintenance plan in the form of a Bridge Preventative Maintenance Plan (BPMP) Report, so the City is proactively managing its bridge structures. The structures planned for repair under this work come from the recommendation of Dokken Engineering and are included in the maintenance plan. 1263
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Award Contract to American Civil Constructors West Coast for the BPMP Project (MFA00007)

Under this method, the BPMP outlines recommended improvements to be implemented in fiveyear annual cycles. The FY 2024-25 cycle includes the bridges listed below, along with a summary of the planned scope for reference. The selection of these 2 bridges was determined through a comprehensive assessment that balanced priority infrastructure needs within the allotted Measure A Budget for this purpose.
 Bridge No. 56C-0326 Tierra Del Oro over the Palm Valley Channel  Bridge No. 56C-0502 Palm Canyon Drive Bridge over the Rancho Mirage Channel Staff recommend that the City Council find that the project is categorically exempt from CEQA, pursuant to Class 1, Section 15301 (Existing Facilities) under the CEQA Guidelines, as the project involves the repair and maintenance of existing streets, sidewalks, gutters, and similar facilities. A summary of the planned scope of work from Dokken is included as Attachment 6, attached hereto for reference.

Project Descriptions:

Bridge No. 56C-0326 Tierra Del Oro over the Palm Valley Channel – The scope of work includes various concrete repairs to the approach abutment, removal and replacement of joint seals, and the application of water sealant material to the bridge deck. These efforts will improve the planned life cycle, and the integrity of the bridge structure.

Bridge No. 56C-0502 Palm Canyon Drive Bridge over the Rancho Mirage Channel – Caltrans identifies the street as Palm Canyon Drive in their database, but it is actually Highway 111. The scope of work on this structure includes the removal and replacement of joint seals, asphalt concrete removal to expose the bridge deck, and the application of water sealant material to the bridge deck. These efforts will improve the planned life cycle, and the integrity of the bridge structure.

Additionally, the area of asphalt removal has been extended to Parkview Drive to enhance road quality within the City of Palm Desert. As part of these improvements, the wearing course of asphalt on Highway 111 will be replaced and re-striped, providing cohesive upgrades to the infrastructure within the designated removal limits.

Highway 111 will be temporarily reduced to 1 eastbound and 1 westbound travel lane to accomplish this work. Traffic signal timing modifications have been designed and are scheduled for implementation to ease congestion. In addition, advanced driver notifications will be deployed through changeable message signboards, the Engage Palm Desert platform, social media channels, and local media partners.

Coordination with the City of Rancho Mirage during design, planning, and bidding has been completed, and the City of Rancho Mirage has committed to perform the same efforts within its respective city limits. To accommodate the necessary requirements and lane restrictions outlined above, this project is planned to take place this summer, during the period of lowest seasonal population.
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Award Contract to American Civil Constructors West Coast for the BPMP Project (MFA00007)

Requests for Bids:

The project was advertised via the City’s bid portal, OpenGov Project ID# 2025-IFB-178, and one bid was received electronically on May 20, 2025.

Contractor Location Base Bid
American Civil Constructors West Coast, LLC Benicia, CA $737,000 The all-inclusive engineer’s estimate was $767,500, and American Civil Constructors West Coast, LLC, bid in the amount of $737,000 is within the estimate. Staff reviewed the bid documents, and all the required forms were submitted and recommends approval.

Legal Review:

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

FINANCIAL IMPACT:

Funding for this project is included in the approved Capital Improvement Project (CIP) list for Fiscal Year 2024-25 in Measure A Account No. 2134359-4400100. This action will have no impact to the General Fund.

Project - MFA00007
Bridge Preventative Maintenance Program (BPMP)
FY 24/25
Budget
FY 24/25
Expenditures
Remaining
Budget
Measure A Funds (2134359-4400100) $1,142,141
Engineering Design (Dokken Engineering) $53,065
Construction: American Civil Constructors $737,000
10% Contingency $73,700
Totals $1,142,141 $863,765 $278,376
Coordination efforts with the City of Rancho Mirage are ongoing regarding cost sharing. Their portion of Bridge 56C-502 represents approximately $160,000 in value, which is approximately 50% of the improvement value of the shared asset. While the Rancho Mirage has not yet formally agreed to the cost-sharing terms, discussions are progressing. To avoid unnecessary delays to the overall project schedule, staff recommends moving forward with contractor approvals, while negotiations with the City of Rancho Mirage continue.

ATTACHMENTS:

1. Construction Contract

2. Contractor Bid

3. Payment and Performance Bonds

4. CEQA Notice of Exemption

5. Vicinity Map

6. Dokken Report
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CITY OF PALM DESERT

CONTRACT FOR CONSTRUCTION
This Agreement is made and entered into this 12th day of June, 2025, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, (“City”) and American Civil Constructors West Coast, a Limited Liability Company, with its principal place of business at 2990 Bay Vista Court, Suite D, Benicia, CA, 94510 ("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:

Bridge Preventative Maintenance Program – Cycle 2024/2025 Project No. MFA00007
(hereinafter referred to as “the Project”).

The scope of work consists of joint seal repairs, concrete spall removal and replacement, grinding of existing asphalt pavement, treatment of bridge deck, hot mix asphalt, traffic striping and pavement markings and other items shown on the plans.

Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City 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 City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 90 Calendar 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 City 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 SEVEN HUNDRED THIRTYSEVEN THOUSAND DOLLARS ($737,000). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule.

ARTICLE 4. LIQUIDATED DAMAGES.

Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature 1267
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of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $1,000 for each and every Calendar 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 City 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 or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, 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. 1268
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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 City’s choosing), indemnify, and hold harmless the City, 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 City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City 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 1269
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faithfully perform the Work and all of Contractor’s obligations under Contract.

Such costs, expenses, and damages shall include all costs, including 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 City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees, and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, 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 City, 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 City.

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:
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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;
(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 City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, 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 City 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 City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

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 City and its officers, officials, employees, and agents shall continue as additional insureds under such policies.
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3. Primary/Non-Contributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

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

5. City’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, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this 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 City’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 City, 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 City, 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 City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City 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 1272
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type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

10. Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) Day notice of cancellation (except for nonpayment for which a ten (10) Day notice is required) or nonrenewal of coverage for each required coverage.

11. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City 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 City 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 City for review.

15. City’s Right to Revise Requirements. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) Days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice.

16. Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.

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

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 City’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 City, 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 City 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 CITY OF PALM DESERT

AND AMERICAN CIVIL CONSTRUCTORS WEST COAST, LLC
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

CITY OF PALM DESERT
By: _____________________________
Chris Escobedo
Interim City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
City Attorney

AMERICAN CIVIL CONSTRUCTORS WEST

COAST, A LIMITED LIABILITY COMPANY
By:

Jeff Foerste
President
License No. 1011546 Class A - General
Contractor’s License Number and
Classification
DIR No.1000035713
DIR Registration Number
City Clerk QC: _____
Contracts QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
_____
Bonds
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PRICE TABLES
Line Item Description Quantity Unit of Measure Unit Cost Total 1 MOBILIZATION &

DEMOBILIZATION
1 LS $36,000.00 $36,000.00
2 CITY OF RANCHO MIRAGE

ENCROACHMENT PERMIT

AND INSPECTION

PROCESS ALLOWANCE
1 LS $10,000.00 $10,000.00
3 AIR EMISSIONS

MONIITORING PLAN
1 LS $9,000.00 $9,000.00
4 TRAFFIC CONTROL AND

CONSTRUCTION STAGING
1 LS $110,000.00 $110,000.00
5 POTHOLING - LOCATE,

PROTECT & RESTORE

EXISTING UTILITIES AND

IMPROVEMENTS
1 LS $9,000.00 $9,000.00
6 SURVEY MONUMENT

PRESERVATION
1 LS $5,000.00 $5,000.00
7 RECORD DRAWINGS (AsBuilts) PLANS 1 LS $4,000.00 $4,000.00 8 REMOVE UNSOUND

CONCRETE
15 CF $1,000.00 $15,000.00
9 REMOVE EXISTING

ASPHALT CONCRETE

OVERLAY
5000 SF $9.50 $47,500.00
10 REMOVE EXISTING JOINT
SEAL
75 LF $150.00 $11,250.00
11 RECONSTRUCT OVERSIDE
DRAIN - 56C-0326
75 SF $225.00 $16,875.00
12 RECONSTRUCT CURB
AND GUTTER - 56C-0326
25 LF $400.00 $10,000.00
13 RECONSTRUCT MINOR

CONCRETE SPILLWAY -
56C-0326
35 SF $350.00 $12,250.00
14 GRIND EXISTING ASPHALT

CONCRETE PAVEMENT
(2"min)
20500 SF $4.25 $87,125.00
15 SAWCUT 1 LS $4,000.00 $4,000.00
16 JOINT SEAL 75 LF $206.00 $15,450.00
17 RAPID STRENGTH

CONCRETE
1 LS $12,000.00 $12,000.00
18 CLEAN AND PREPARE

BRIDGE DECK FOR
TREATMENT.
6550 SF $7.00 $45,850.00
19 FURNISH BRIDGE DECK

TREATMENT MATERIAL
1 LS $17,000.00 $17,000.00
5/28/25, 4:51 PM American Civil Constructors West Coast LLC Response https://procurement.opengov.com/governments/76010/projects/160519/evaluation/proposals/314824 1/2 1277
20 TREAT BRIDGE DECK 6550 SF $14.00 $91,700.00
21 REMOVE AND

RECONSTRUCT

CONCRETE MANHOLE
RING
1 EA $6,500.00 $6,500.00
22 HOT MIX ASPHALT (Type
A)
320 TONS $475.00 $152,000.00
23 TRAFFIC STRIPING AND

PAVEMENT MARKINGS
1 LS $9,500.00 $9,500.00
Total $737,000.00
5/28/25, 4:51 PM American Civil Constructors West Coast LLC Response https://procurement.opengov.com/governments/76010/projects/160519/evaluation/proposals/314824 2/2 1278
Contract No. ___________
Exhibit “C”
Revised 11-2-20
BBK 72500.00001\32374915.1

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to American Civil Constructors West Coast, LLC, (hereinafter referred to as the “Contractor”) an agreement for Bridge Preventative Maintenance Program Cycle 2024-2025 (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 April 25, 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, American Civil Constructors West Coast, LLC, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of SEVEN HUNDRED THIRTY-SEVEN THOUSAND Dollars, ($737,000), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
1279
Contract No. ___________
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.
(3) Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

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

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

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]
1280
Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____.
(Corporate Seal)
Contractor/ Principal
By ____________________ ____
Printed name: _______________________
Title: ______________________________
(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.
1281
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1282
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1283
Contract No. ___________

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS That
WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed June 12, 2025, has awarded to American Civil Constructors West Coast, LLC, hereinafter designated as the “Principal,” a contract for the work described as follows:

Bridge Preventative Maintenance Program Cycle 2024-2025 Project (the “Project”).; and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated April 25, 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 City in the penal sum of SEVEN HUNDRED THIRTY-SEVEN THOUSAND Dollars, ($737,000) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or 1284
Contract No. ___________
attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]
1285
Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20___.
(Corporate Seal)
Contractor/ Principal
By ____________________ ____
Printed name: _______________________
Title: ______________________________
(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.
1286
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1287
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1288
Notice of Exemption FORM “B”

NOTICE OF EXEMPTION
TO:

Office of Planning and Research
P. O. Box 3044, Room 113
Sacramento, CA 95812-3044
FROM: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Clerk of the Board of Supervisors
or
County Clerk
County of: Riverside
2724 Gateway Dr, Riverside,
CA 92507

1. Project Title: City of Palm Desert – Bridge Preventative Maintenance Program Cycle 2024-2025

2. Project Applicant: City of Palm Desert

3. Project Location – Identify street address and
cross streets or attach a map showing project
site (preferably a USGS 15’ or 7 1/2’
topographical map identified by quadrangle
name):

In the public right-of-way of Tierra Del Oro from Bridge Abutment to Bridge Abutment, as well as In the public
right-of-way of Highway 111 from Rancho Mirage City
Limits to Park View Drive, and Hwy 111, in Palm
Desert, CA 92260.

4. (a) Project Location – City: Palm Desert (b) Project Location – County: Riverside

5. Description of nature, purpose, and
beneficiaries of Project:

Rehabilitate the bride structure and street section and apply bridge deck preservation products.

6. Name of Public Agency approving project: City of Palm Desert

7. Name of Person or Agency undertaking the
project, including any person undertaking an
activity that receives financial assistance
from the Public Agency as part of the activity
or the person receiving a lease, permit,
license, certificate, or other entitlement of use
from the Public Agency as part of the activity:

City of Palm Desert.

8. Exempt status: (check one)
(a) Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA Guidelines § 15268)
(b) Not a project.
(c) Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c))
(d) Categorical Exemption.

State type and section
number:

Class 1 (c) – State CEQA Guidelines § Section 15301
(e) Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a))
(f) Statutory Exemption.

State Code section number:
(Public Resources Code (CEQA Statute) § 21080.35)
(g) Other. Explanation: General Rule – Section 15061(b)(3)

9. Reason why project was exempt: This proposal is for the repair and maintenance of existing public streets, sidewalks, gutters and similar 1289
Notice of Exemption FORM “B”
facilities.

10. Lead Agency Contact Person: Neal Ennis, Project Manager Telephone: (760) 851-4976

11. If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing.

12. Has a Notice of Exemption been filed by the public agency approving the project?  Yes No

13. Was a public hearing held by the lead agency to consider the exemption?  Yes No If yes, the date of the public hearing was: July 13, 2023 Signature:__________________________________ Date:_______________ Title: City Engineer
 Signed by Lead Agency  Signed by Applicant
Date Received for Filing:
(Clerk Stamp Here)
Authority cited: Sections 21083 and 21100, Public Resources Code.

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. 1290
HWY 111

EDGEHILL DR

PAINTERS PATH
HWY 111

PARK VIEW DR

PARK VIEW DR

FRED WARING DR

HAHN RD

SAN JUAN DR

MIMOSA DR

ACACIA DR

CHOLLA DR
DESERT

CROSSINGS DR

PITAHAYA ST

BEAVERTAIL ST

HEDGEHOG ST

EDGEHILL DR

YUCCA CT

TOWN CENTER WAY

PAINTERS PATH

ACACIA DR

ADONIS DR

CACTUS DR
VISTA
ORO

BRUSHWOOD
DR

MANZANITA
DR

EL PASEO

SAN LUIS DR

ACACIA DR

GLORIANA DR

ARBOLEDA AVE

SIERRA VISTA

SIERRA VISTA

TAMPICO DR

RANCHO GRANDE

FAIRHAVEN DR
SONORA
DR

SONORA DR

FAIRHAVEN DR

HAHN RD

JOSHUA RD

ONE QUAIL PL

ONE QUAIL PL

VISTA PASEO

CHELSEA CIR SAGE
CT

GREENE WAY
CAROB
CT

VISTA MONTE

CHELSEA CIR

SANDPIPER

VISTA BONITA
PASEO
VISTA
CIR
HWY 74

PAINTERS PATH

EL PASEO PASEO VISTA WAY
MONTE
VISTA
VISTA
AZUL

SHADOW MOUNTAIN DR
HWY 111

EL PASEO

PLAZA WAY

FLEETWOOD CIR

TIERRA DEL ORO
TANQUE

DE AGUA RD

VISTA DE FLORES

VERBA SANTA DR W
VISTA
BONITA
Copyright nearmap 2015
2024-2025 BRIDGE PREVENTATIVE MAINTENACE PROGRAM
PROJECT NO. MFA00007
I
Bridge No. 56C-0326
Tierra Del Oro over the
Palm Valley Channel

VICINITY MAP
Bridge No. 56C-0502
Highway 111 Bridge over the
Rancho Mirage Channel
1291
1292
Field Review
Prior to conducting field reviews, the inspection reports for the 11 bridges that are currently on the Caltrans Structures Maintenance and Investigation (SM&I) Local Agency Bridge List under the City of Palm Desert’s jurisdiction were reviewed. The Caltrans inspection reports provided by the City are provided in Appendix D.

Field reviews were conducted from July 10th through July 17th of 2021, to include all accessible bridges within the limits of the City of Palm Desert, including bridges not listed within the Caltrans SM&I Local Agency Bridge List for the City of Palm Desert. Each bridge was inspected to evaluate the need for maintenance, and to identify maintenance activities eligible for Caltrans’ Bridge Preventive Maintenance Program (BPMP) funding. Additional recommended maintenance activities that are not eligible for BPMP funding were also noted. Maintenance recommendations, if noted in the most recent Caltrans Bridge Inspection Report (BIR), were confirmed. A field inspection was completed, and photographs were taken to document existing conditions. Field review photos are provided in Appendix E.

Summary and Conclusions
A ranking procedure was developed and documented as part of the City's Preventive Bridge Maintenance Plan. The result is a detailed BPMP listing that includes recommended preventive maintenance work and a work prioritization ranking for each bridge listed below.

Priority
Bridge
Number Facility Carried Feature Intersected Work Description 1 55C-0467 Monterey Ave Whitewater River
• Repair Deck. This will require AC
removal, deck treatment, repairing
soffit cracks, and grinding approach
AC to conform to deck elevation.
• Replace compression joint seal.
• Repair existing scour
countermeasures.
2 56C-0502 Palm Canyon
Drive Rancho Mirage Channel
• Repair Deck. This will require AC
removal, deck treatment, repairing
soffit cracks, and grinding approach
AC to conform to deck elevation.
• Repair Cracks on pile extensions.
3 55C-0550 Magnesia Falls Dr San Pascual Channel
• Repair Deck. This will require AC
removal, deck treatment, repairing
soffit cracks, and grinding approach
AC to conform to deck elevation.
4 56C-0549 Portola Avenue Whitewater River
• Repair Deck. This will require AC
removal, deck treatment, repairing
soffit cracks, and grinding approach
AC to conform to deck elevation.
• Replace compression joint seal.
5 56C-0327 Thrush Road Palm Valley Stormwater
Channel
• Replace compression joint seal.

Remove unsound concrete and RSC
patch.
6 56C-0326 Tierra Del Oro Palm Valley Stormwater
Channel
• Replace compression joint seal.

Remove unsound concrete and RSC
patch.
1293
7 56C-0329 Park View Drive Palm Valley Stormwater
Channel
• Replace compression joint seal.

Remove unsound concrete and RSC
patch.
8 56C-0167 Fred Waring Drive Palm Valley Stormwater
Channel • Repair Spalled surface area
9 56C-0347 Portola Avenue Haystack Channel • Repair Spalled surface area 10 56C-0494 Cook Street Whitewater River • Debris removal. Not eligible for HBP reimbursement
11 56C-0594 Palm Canyon
Drive Palm Valley Channel • No maintenance recommended
12 56C-0653 Cholla Way Palm Valley Stormwater
Channel • No maintenance recommended
13 56C-0654 Heliotrope Drive Haystack Channel • No maintenance recommended 14 N/A Painters Path Palm Valley Stormwater
Channel • No maintenance recommended.
15 N/A Cholla Way
(Culvert)
Palm Valley Stormwater
Channel Tributary • No maintenance recommended.
16 N/A Alamo Drive Haystack Channel • No maintenance recommended 17 N/A Fred Waring Drive
(Culvert) South Palm Channel • No maintenance recommended.

References

1. California Department of Transportation, Bridge Preventive Maintenance Program Guidelines for Local Agencies, Caltrans, Sacramento, 2015.

2. Caltrans Local Assistance Procedures Guidelines, Chapter 6, Caltrans, Sacramento, 2021.

3. Caltrans Local Assistance Procedures Manual, Caltrans, Sacramento, 2021.

4. U.S. Department of Transportation, Federal Highway Administration, Recording and Coding Guide for Structure Inventory and Appraisal of the Nation's Bridges, Report No. FHWA-PD-96- 001, Washington D.C., 1995.

1294

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: June 12, 2025
PREPARED BY: Mariela Salazar, Management Analyst
Martin Alvarez, Director of Economic Development
SUBJECT: APPROVE THE PURCHASE AND SALES AGREEMENT FOR AN 8.0

ACRE PORTION OF PARCEL KNOWN AS LOT E BETWEEN THE CITY

OF PALM DESERT AND BLIEU COMPANIES LLC
RECOMMENDATION:

1. Approve the Purchase and Sales Agreement (PSA) between the City of Palm Desert and Blieu Companies LLC, for the sale of Lot E on the northeast corner of Desert Willow Drive.

2. Authorize the City Manager to execute all necessary documents to complete the transaction.

BACKGROUND/ANALYSIS:

The City of Palm Desert owns an approximately 11-acre parcel known as Lot E, located at the northeast corner of Desert Willow Drive and Country Club Drive. This parcel is undeveloped land, with the APNs 620-370-002, 620-370-003, 620-370-004, 620-370-017, 620-370-018, 620- 370-020, 620-370-033, and 620-370-043. This PSA will sell 8-acres to Blieu Companies LLC for the purpose of developing a 130 multi-family development with 33 units being dedicated for affordable housing.

In accordance with the requirements of the California Surplus Land Act (SLA), the City initiated and completed the SLA process for the subject property with the assistance of special counsel, BWS Law Firm, allowing for a period of negotiations as required under Government Code Section 54220 et seq.

Purchase and Sale Summary:

PURCHASE PRICE DEVELOPMENT INTENT TERM AND DUE DILIGENCE Fair Market Value:
$4,5000,000 to be paid in
cash at closing.

The developer plans to
construct 130 multi-family
rental housing units, with a
minimum of 33 units
designated as affordable for
lower-income households,
meeting the 25%
affordability requirement.
90-day due diligence period for buyer
investigations, 9-month entitlement period for
buyer to secure land-use approvals, 1 year period
thereafter to secure affordable housing funding,
and escrow to close no later than 15 days after the
funding contingency period, with up to two 90-day
extension options.

DEPOSIT AND

CONSIDERATION

TITLE AND

CONDITION CONTINGENCIES

AFFORDABLE HOUSING

REQUIREMENTS
A refundable $90,000
deposit (2% of the
purchase price), and a
non-refundable
Property to be sold "AS
IS, WHERE IS" subject
to standard due
diligence and title
review.

Close of escrow is
contingent upon
successful
entitlements and
funding approval.

The deed includes affordability
covenants requiring affordability
for 55 years (rental) or 45 years
(ownership).
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City of Palm Desert
Blieu Companies LLC Purchase and Sales Agreement

independent consideration
of $100.

Next Steps:

Following City Council approval of the Purchase and Sale Agreement with Blieu Companies LLC for the Desert Willow parcel Lot E, staff will proceed with the following steps to complete the transaction and support project implementation:
 Open Escrow
Within seven (7) days of City Council approval, both parties will execute the Agreement and submit it to the Title Company to formally open escrow.  Collect Buyer’s Initial Deposit
Buyer shall deposit $90,000 (2% of the purchase price) with the Title Company on the next business day after the Agreement becomes effective.  City to Provide Property Documents
Within five (5) calendar days of escrow opening, the City will provide Buyer with all available property-related documents, including plans, reports, and environmental studies.
 Buyer Evaluation Period (90 Days from Escrow Opening) Buyer will have 90 days to evaluate the property’s suitability, conduct site inspections (including any necessary environmental or soils testing), and review the preliminary title report.
 Buyer Entitlement Period (9 Months from Escrow Opening) Buyer will pursue required planning and zoning approvals, including environmental clearance, specific plan amendments, and tentative map approvals, with support from staff in the City’s proprietary capacity.
 License Termination
City will ensure that the Desert Wave Ventures license is terminated no later than one (1) business day following the expiration of the Entitlement Period or as otherwise directed by the Buyer.
 Buyer Funding Approval Period (1 Year after Entitlement Period) Buyer will secure funding commitments for the development of the project. If unsuccessful within this timeframe, Buyer may cancel escrow and receive a refund of the deposit.
 Funding Contingency Period (6 Months following Funding Approval Period) If Buyer fails to secure a funding allocation within this additional six-month period, Buyer may again cancel escrow and receive a full refund.
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City of Palm Desert
Blieu Companies LLC Purchase and Sales Agreement

 Close of Escrow
Upon satisfaction of all contingencies, the transaction will proceed to closing. Buyer may extend the escrow period for two additional 90-day terms with proper notice. Title will transfer via grant deed, subject to conditions outlined in the Agreement.  Post-Close City Monitoring
Following close of escrow, City staff will monitor the project to ensure compliance with the affordable housing development requirements, including income and affordability covenants, as stipulated in the recorded grant deed.

FINANCIAL IMPACT:

In 2018, the City used General Fund monies to acquire this property from the SARDA for $2.67M.

Approval of the Purchase and Sale Agreement with Blieu Companies LLC will result in sales proceeds in the amount of $4,500,000, net of closing costs, to replenish the City’s General Fund.

The Buyer will provide payment in full at the close of escrow less any deposits made by the buyer.

The City is responsible for customary closing costs, including the California Land Title Association (CLTA) portion of the title insurance premium and documentary transfer taxes. The Buyer is responsible for the cost of the American Land Title Association (ALTA) title insurance premium, title endorsements, recording fees, and escrow-related expenses.

This transaction also eliminates future maintenance and liability costs/obligations associated with the vacant property while supporting the development of affordable multi-family housing consistent with the City’s Housing Element goals and State mandates.

ATTACHMENTS:

1. Purchase and Sales Agreement

2. Grant Deed

3. Property Map
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1301
1302
1303
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PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS
This PURCHASE AND SALE AGREEMENT AND ESCROW
INSTRUCTIONS (the “Agreement”) is dated as of the “Effective Date”, defined below, and is entered into by and between the City of Palm Desert, a California charter city (“SELLER”) and Blieu LLC, a California limited liability company (“BUYER”). For purposes of this Agreement, the Effective Date is the date which is later to occur of: (i) the last date the BUYER and SELLER executes this Agreement, and (ii) the date the City Council of the SELLER approves this Agreement.

RECITALS
A. City owns the real property located at the northeast corner of Desert Willow Drive and Country Club Drive in the City of Palm Desert, County of Riverside, State of California, consisting of approximately 8.0 acres (APNs 620- 370-002, 620-370-003, 620-370-004, 620-370-017, 620-370-018, 620-370-020, 620-370-033, and 620-370-043) (“Property”) as more particularly described in Exhibit A attached hereto and incorporated herein.

B. The SELLER desires to sell to BUYER, and BUYER desires to purchase the Property on the terms set forth in this Agreement for BUYER’s development of a multi-family affordable rental housing development of up to 130 units (the “Project”), or as otherwise approved by the City of Palm Desert during design of the Project.

C. SELLER and BUYER have reached mutual agreement and desire to voluntarily enter into this Agreement to transfer the Property subject to the conditions and requirements set forth herein.

NOW, THEREFORE, in consideration of the foregoing, and the terms and conditions of this Agreement, the SELLER and BUYER hereby agree as follows:

Section 1. Recitals.

The recitals set forth above are true and correct and incorporated herein as a substantive part of this Agreement by this reference.

Section 2. Purchase and Sale of Property.
(a) Subject to all of the terms, conditions and provisions of this Agreement and for the consideration set forth below, SELLER hereby agrees to sell, convey and transfer to BUYER and BUYER hereby agrees to acquire all of the right, title and interest of SELLER in and to the Property (the “Transaction”). 1311
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(b) The Property will be conveyed to BUYER when the Purchase Price is paid in full in accordance with this Agreement.

Section 3. Consideration; Deposit.
(a) The purchase price to be paid for the Property (the “Purchase Price”) shall be an amount equal to FOUR MILLION FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($4,500,000.00) (“Purchase Price”) for the Property. The Purchase Price shall be payable in cash or Immediately Available Funds (hereinafter defined) at the Closing (hereinafter defined) subject to offsets and credits as described in this Agreement. On and after the Closing, BUYER is responsible for dedicating any public rights-of-way on the Property and granting any easements required in connection with the development and use of the Property. SELLER will cooperate in connection with any such dedication and the granting of easements necessary for the construction or development of the Property by BUYER, as provided in this Agreement, but SELLER shall not be required to incur any third-party costs or expenses in connection with such cooperation. The covenants and obligations of the parties set forth in this Section will survive the Closing.
(b) Contemporaneously with the execution and delivery of this Agreement, BUYER has delivered to SELLER and SELLER hereby acknowledges the receipt of One Hundred Dollars ($100.00) (the “Independent Consideration”), which amount the parties bargained for and agreed to as adequate and sufficient consideration for BUYER’s exclusive right to inspect and purchase the Property pursuant to this Agreement and for SELLER’s execution, delivery and performance of this Agreement. The Independent Consideration is in addition to and independent of any other consideration or payment provided in this Agreement, is nonrefundable, is fully earned and shall be retained by SELLER notwithstanding any other provision of this Agreement.
(c) BUYER, the next business day after the Effective Date, shall deliver, in cash or Immediately Available Funds, an amount equal to NINETY THOUSAND AND 00/100 Dollars ($90,000.00) (the “Deposit”), which equals 2.0% of the Purchase Price, to [Fidelity National Title Company, 4400 MacArthur Blvd., Suite 200, Newport Beach, CA, 92660 Attn: Brenna Ryan, Escrow Officer, Telephone: (949) 221-4763, Email: [email protected]] (the “Title Company”).

Upon receipt of the Deposit from BUYER, the Title Company is hereby directed to immediately invest the Deposit in a federally-insured, interest-bearing account acceptable to BUYER and SELLER. The timely delivery of the Deposit is a condition precedent to the ongoing validity of this Agreement, and the failure of BUYER to timely deliver the Deposit as provided for herein shall at SELLER’s option, subject to Section 17(a) below, cause this Agreement to be terminated, and thereafter neither party shall have any further right or obligation under this Agreement, unless expressly provided otherwise in this Agreement. The Deposit shall become immediately non-refundable to BUYER upon delivery to the Title Company, except only in the event of BUYER’s termination of this Agreement as 1312
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a result of SELLER’s Default (as such term is defined in Section 17(b) below) that remains uncured for the time period specified in Section 17(b), below, or a failure of any of Conditions to BUYER’s Obligations set forth in Section 7(b) below or as otherwise set forth herein. The Deposit shall be applicable to the Purchase Price at the Closing. As used herein, the term “Immediately Available Funds” shall mean payment by cashier’s check or certified check drawn on a national banking association acceptable to Seller or by wire transfer of cash, as BUYER may choose.
(d) If the Closing under this Agreement occurs, the Title Company shall apply the Deposit and any interest earned thereon against the Purchase Price due SELLER at Closing. In the event that this Agreement otherwise terminates, all interest earned on the Deposit shall be paid to the party entitled to receive such Deposit.

Section 4. Leases; Licenses.

SELLER and BUYER hereby acknowledge that the Property is subject to that certain License Agreement, by and between SELLER and Desert Wave Ventures, LLC, dated January 1, 2024 a copy of which have been delivered to BUYER (the “License”). SELLER, at its sole cost and expense, shall cause the License and all rights of use by the licensees thereunder to terminate and licensees shall vacate the Property as a condition for the benefit of BUYER to the Close of Escrow. SELLER shall be entitled to terminate the License at any time, however, in order to assure that the License has been terminated by the Close of Escrow, SELLER shall terminate the License and licensees shall vacate the Property no later than (i) one (1) business day following the expiration of the Entitlement Period (as defined in Section 8(b), below); or (ii) such later date as may be identified in a written notice from BUYER to SELLER given prior to the expiration of the Entitlement Period. Subsequent to the execution of this Agreement and continuing until the Close of Escrow or the earlier termination of this Agreement, SELLER shall not enter into any lease or license affecting the Property without obtaining the prior written consent of BUYER.

Section 5. Opening of Escrow.
(a) The transfer and sale of the Property shall take place through escrow (the “Escrow”) and such Escrow shall be administered by Title Company.

The Escrow shall be deemed open (“Opening of Escrow”) upon the receipt by the Title Company of a copy of this Agreement executed by SELLER and BUYER.

SELLER and BUYER shall each execute this Agreement and open escrow within seven (7) days after approval of this Agreement by the SELLER’s City Council.

The date of Opening of Escrow shall be memorialized by Title Company in writing delivered to the parties.
(b) If this Agreement is terminated or Escrow is cancelled as a result of a default by the SELLER, then SELLER shall be solely responsible to the 1313
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Title Company for payment of all customary and reasonable escrow cancellation charges to the Title Company without further or separate instruction to the Title Company. If this Agreement is terminated or Escrow is cancelled for any reason other than the SELLER’s default, then BUYER shall be solely responsible to the Title Company for payment of all customary and reasonable escrow cancellation charges to the Title Company without further or separate instruction to the Title Company.

Section 6. Due Diligence Period
(a) As used in this Agreement, the term “Due Diligence Period” shall refer to a period of time to expire at 5:00 p.m., Pacific Time, on the date which is ninety (90) days from the Opening of Escrow to allow the BUYER the opportunity to investigate the condition and suitability of the Property and the Real Property Materials, defined below, for BUYER’s intended use. In the event BUYER finds the Property unsatisfactory for any reason, at its sole discretion, BUYER shall notify SELLER and Title Company in writing prior to the expiration of the Due Diligence Period and, thereafter, SELLER and BUYER shall have no further obligation to each other, Escrow shall be cancelled and this Agreement shall automatically terminate on the date of such election and the parties shall each be relieved and discharged from all further responsibility or liability under this Agreement; provided however that SELLER shall promptly return any Deposit (including interest accrued thereon), less the Independent Contract Consideration, to BUYER and BUYER shall pay any Escrow cancellation charges. BUYER’s failure to give written notice of termination to the SELLER on or before the expiration of the Due Diligence Period shall constitute an election by BUYER to waive the termination right contemplated under this Section 6(a) and proceed with this Agreement, subject to all of the other terms and conditions of this Agreement. .
(b) SELLER hereby grants to BUYER for use by BUYER and its officers, directors, employees, agents, representatives, tenants, prospective tenants, contractors, and other persons accessing the Property by, through or with the permission or under the direction or auspices of BUYER, a limited and revocable license to enter upon the Property for purposes of (a) conducting BUYER’s due diligence inspection and/or (b) obtaining data and making surveys and tests, including, without limitation, soil and groundwater testing, determined reasonably necessary by BUYER to permit it to determine the physical condition of the Property and any hazardous substances located thereon and to determine the suitability of the Property for development in accordance with BUYER’s development plans, provided that, BUYER shall (i) give the SELLER forty eight (48) hours telephonic, electronic mail or written notice of any intended access which involves work on the Property; and (ii) conduct no Invasive Investigations without the written consent of the SELLER. In this regard, the term “Invasive Investigations” means and refers to environmental testing, sampling, invasive testing, or boring into the soils. If BUYER desires to conduct any Invasive Investigations it will first provide SELLER with a written statement describing the 1314
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scope of any such Invasive Investigations. SELLER will not unreasonably withhold, condition or delay its consent to any such Invasive Investigations and will be deemed to have given its consent to the specified scope of such Invasive Investigations if SELLER does not (within three (3) business days following receipt of the proposed scope of such Invasive Investigations) give BUYER a written statement identifying those items to which SELLER has an objection. (c) SELLER shall, within five (5) calendar days of the Opening of Escrow, provide BUYER with copies of all plans, reports, studies, investigations and other materials SELLER may have in its possession or control that are pertinent to the Property and its use, condition or development (“Real Property Materials”), provided that to the extent that SELLER has provided BUYER with information relating to the condition of the Property, SELLER makes no representation or warranty with respect to the accuracy, completeness or methodology or content of such reports or information. Continuing until the Closing or earlier termination of this Agreement, SELLER shall deliver to BUYER additional Real Property Materials in SELLER’s possession or reasonable control as and when SELLER acquires same.
(d) BUYER shall exercise its diligent and good faith efforts to cause the Title Company to issue and deliver to SELLER and BUYER a Preliminary Title Report (“Title Report”) within ten (10) business days following the Effective Date and BUYER shall have twenty (20) days following receipt thereof, (the “Title Review Period”), within which to notify SELLER of any exceptions to title as shown in the Title Report which BUYER disapproves; provided, however, BUYER hereby approves the following exceptions: (a) the lien of any non-delinquent property taxes and assessments (which, if any exist, shall be prorated by the Title Company at Closing); (b) this Agreement, and (c) the covenants, conditions and restrictions set forth in the Deed, defined below (collectively, the “Permitted Exceptions”). Any exceptions, other than the Permitted Exceptions, which are timely disapproved by BUYER in writing pursuant to this Section 6(d) shall be referred to collectively as the “Title Objections”. If BUYER fails to notify SELLER of its disapproval of any matters shown in the Title Report within the Title Review Period, BUYER shall conclusively be deemed to have approved such matters. Any such matter not disapproved in writing by BUYER within the Title Review Period shall also constitute a Permitted Exception hereunder.
(e) If BUYER notifies SELLER of any Title Objections within the Title Review Period then, at SELLER's sole discretion, SELLER may elect (but shall not be obligated) to remove or cause to be removed any of the Title Objections at SELLER's expense, which removal shall be subject to BUYER's reasonable approval. SELLER may notify BUYER in writing (“SELLER’s Title Notice”) within three (3) business days after receipt of BUYER's notice of Title Objections (“SELLER’s Cure Notice Period”) whether SELLER elects to remove the same, and, by the Closing, SELLER shall remove those Title Objections elected to be removed by SELLER in SELLER’s Title Notice. SELLER's failure to 1315
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deliver SELLER’s Title Notice to BUYER shall constitute SELLER's election not to cure such Title Objections. Notwithstanding the foregoing, SELLER agrees to remove as exceptions to title to the Property the following prior to the Closing Date (i) all delinquent taxes and assessments and interest and penalties thereon affecting the Property, if any, (ii) all Mortgages and deeds of trust if any, (iii) all mechanic's liens, if any, not created by BUYER or resulting from BUYER's Inspections, and (iv) any exceptions or encumbrances to title which are created after the Effective Date without the written consent of BUYER (“Required Removables”). If SELLER elects or is deemed to have elected not to cause any Title Objections to be removed, BUYER in its sole discretion shall be entitled to terminate this Agreement by delivery of written notice to SELLER of such termination within five (5) days after the expiration of the SELLER Cure Notice Period. If BUYER terminates this Agreement, BUYER shall be entitled to receive a refund of any Deposit plus any interest earned thereon and neither BUYER nor SELLER shall have any further obligation under this Agreement, except for the obligations which expressly survive the termination of this Agreement. If BUYER fails to give SELLER notice of its termination election prior to the date specified in the preceding sentence, BUYER shall be deemed to have approved the condition of title to the Property and all title exceptions in the Title Report and survey-related exceptions shall be deemed to be additional Permitted Exceptions, excluding only those impermissible exceptions SELLER elected to cure as provided above, and any Required Removables.

Section 7. Close of Escrow.
(a) As used herein, “Close of Escrow” means and refers to the close of Escrow for the Property and the transfer of fee title to the Property by the SELLER to the BUYER pursuant to grant deed in the form of Exhibit “B” attached hereto (the "Deed"). The Close of Escrow shall take place on the Closing Date.

The “Closing Date” shall mean the date on which the conditions set forth in this Agreement for the Close of Escrow and for the transfer of the Property have been satisfied, and the Deed is recorded by the Title Company; provided that in no event shall BUYER be obligated to close unless it has received at least ten (10) days’ advance notice from the SELLER of the anticipated date for satisfaction of such conditions to Close of Escrow. The Property shall be transferred to BUYER at the Close of Escrow; provided that, within the periods of time set forth in this Agreement: (i) BUYER has not terminated this Agreement, (ii) BUYER has accepted the Deed, and (iii) all other conditions of the Close of Escrow set forth in this Agreement, including without limitation as set forth in Sections 7(b) and 7(c) below, have been met and BUYER has paid, or caused to be paid to the Title Company all applicable Escrow costs relating to such closing for which BUYER is responsible pursuant to this Agreement. The Close of Escrow shall occur on a date that is no later than fifteen (15) days after the expiration of the Funding Contingency Period (defined below). The BUYER may elect to extend the Close of Escrow for two ninety (90) day periods. The effectiveness of either such 90-day 1316
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extension requires that BUYER deliver written notice of the exercise of an extension of the Close of Escrow to SELLER not less than thirty (30) days prior to (i) the expiration of the six (6) month period following BUYER’s waiver of its Entitlement Contingency, or, (ii) the expiration of the first 90-day extension, as the case may be.

In the event all of the conditions set forth in Section 7(b) are not satisfied or waived as of the date that is fifteen (15) days following expiration of the Funding Contingency Period, as the same may be extended (the “Outside Closing Date”), BUYER may terminate this Agreement and/or exercise such rights and remedies, if any, that it may have pursuant to the terms of this Agreement.

Likewise, in the event all of the conditions set forth in Section 7(c) are not satisfied or waived as of the Outside Closing Date, SELLER may terminate this Agreement and/or exercise such rights and remedies, if any, that it may have pursuant to the terms of this Agreement.
(b) Conditions to BUYER's Obligations. BUYER's obligation to consummate the Close of Escrow is conditioned on all of the following:
(1) SELLER's Closing Deliveries. At Close of Escrow,
SELLER shall deliver the following to the Title Company:
(i) The Deed, executed and acknowledged by
SELLER.
(ii) Documentation to establish to the Title
Company's reasonable satisfaction the due authorization of the person(s) executing the instruments contemplated under this Section 7(b)(1) on behalf of SELLER.
(iii) an affidavit of non-foreign status of SELLER
under the Foreign Investment in Real Property Tax Act.
(iv) a settlement statement showing both the
SELLER’s and the BUYER’s credits and debits consistent
with this Agreement (the “Settlement Statement”).
(v) any transfer declarations required by applicable
law;
(vi) a bring down certificate remaking the
representations and warranties of SELLER under the Section 13(a), below.
(vii) a State of California Form 593 C.
(viii) an owner’s affidavit in form and substance
reasonably acceptable to Title Company to delete the nonsurvey related standard, pre-printed exceptions. (ix) any other customary closing documents in form
and substance reasonably satisfactory to SELLER to
consummate the Transaction.
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(2) Pre-Existing Obligations. There shall exist no leases, licenses (including, without limitation, the License), contracts or rights of occupancy or other agreements or contracts with respect to the Property entered into by SELLER that shall survive the Close of Escrow.
(3) Title Conditions Satisfied. The Title Company shall be in a position to issue the Title Policy to BUYER in the amount of the Purchase Price with respect to the Property subject only to the exceptions permitted by Section 11 of this Agreement.
(4) Entitlements. BUYER shall have received final
approval (beyond any challenge or appeal period with no challenge or appeal then pending) of all necessary land-use approvals, (including but not limited to CEQA, specific plan, development agreement and tentative subdivision map for the Project), authorizations and entitlements, to develop the Property as an affordable multi-family residential subdivision.
(5) Funding Allocation. BUYER shall have secured an
affordable housing funding allocation, or other sources of funding, that shall be ready to close concurrently with or promptly following the Close of Escrow. (6) SELLER’s Deliveries Complete. SELLER shall have
delivered all of the documents and other items required pursuant to Section 7(b)(1) and shall have performed all other material obligations under this Agreement to be performed by SELLER at or prior to the Close of Escrow provided that SELLER shall have a reasonable opportunity to cure any such default after receiving written notice thereof from BUYER.
(7) Representations True. All representations and
warranties made by SELLER in this Agreement shall be true and correct in all material respects on and as of the Closing Date, as if made on and as of such date.
(c) Conditions to SELLER's Obligations. SELLER's obligation to consummate the Close of Escrow is conditioned on all of the following:
(1) BUYER's Closing Deliveries. At the Close of Escrow, BUYER shall deliver the following:
(i) The Purchase Price less any Deposit and any
Escrow Extension Deposit, if paid, as adjusted for
apportionments and other adjustments required under this Agreement, plus any other amounts required to be paid by BUYER at the Close of Escrow.
(ii) Documentation to establish to the Title
Company's reasonable satisfaction the due authorization of the person(s) executing the instruments contemplated under this Section 7(c)(1) on behalf of BUYER.
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(iii) The Settlement Statement.
(iv) any transfer declarations required by applicable
law;
(v) any other customary closing documents in form
and substance reasonably satisfactory to BUYER to
consummate the Transaction.
(2) BUYER's Deliveries Complete. BUYER shall have
delivered all of the documents and other items required pursuant to Section 7(c)(1) and shall have performed all other material obligations to be performed by BUYER at or prior to the Close of Escrow provided that BUYER shall have a reasonable opportunity to cure any such default after receiving written notice thereof from SELLER.
(3) Conformance with City Zoning Ordinance and Development Code. BUYER shall have received final approval (beyond any challenge or appeal period with no challenge or appeal then pending) of all necessary land-use approvals, (including but not limited to CEQA, specific plan, development agreement, precise plan, and tentative subdivision map for the Project), authorizations and entitlements, to develop the Property as an affordable multifamily residential subdivision, adhering to the requirements set forth in the City’s Zoning Ordinance and the City’s Development Code, which includes the Multifamily and Mixed-Use Objective Design Standards (Ordinance No. 1411) (4) BUYER’s Project Financing. BUYER shall have delivered to SELLER not less than sixty (60) days prior to Close of Escrow documentation evidencing funds and/or financing that in the sole reasonable determination of SELLER is sufficient to develop the Property as an affordable multi-family residential subdivision.
(5) Representations True. All representations and warranties made by BUYER in this Agreement shall be true and correct in all material respects on and as of the Closing Date, as if made on and as of such date. (d) Waiver or Failure of Conditions Precedent. At any time on or before the date specified for the satisfaction of any condition, SELLER or BUYER may elect in writing to waive the benefit of any such condition to its obligations hereunder. By closing the Transaction, SELLER and BUYER shall be conclusively deemed to have waived the benefit of any remaining unfulfilled conditions set forth in this Section 7.

Section 8. Processing of Entitlements.
(a) SELLER covenants and agrees that SELLER will reasonably cooperate with BUYER in connection with the processing by BUYER of the Entitlements deemed necessary by BUYER for the development of the Property during Escrow. SELLER acknowledges that such cooperation shall include whatever actions may be reasonably necessary or helpful to enable BUYER to 1319
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process its Entitlements, provided that such assistance shall be at no cost or expense to SELLER and shall be performed in SELLER’s proprietary capacity as the Property owner. Notwithstanding anything to the contrary in this section, nothing in this Agreement shall require SELLER to approve entitlements sought by BUYER in SELLER’s regulatory capacity, and when acting in its regulatory capacity, SELLER may approve, conditionally approve, modify, or deny BUYER’s applications in SELLER’s sole discretion, to the extent permitted by law. Such entitlements to be processed by BUYER may include, without limitation, a zone change, a tentative subdivision map, a final subdivision map, an environmental impact report, associated development permits and related permits, agreements and approvals requested from the City of Palm Desert or any other governmental agency having jurisdiction over the Property as BUYER may determine to be necessary or helpful to enable BUYER to develop the Property in accordance with its development plans and in a manner permitting construction and operation on the Property consistent with BUYER’s development and use plans (collectively "Entitlements"). Such cooperation shall include facilitating BUYER in entering into development agreements, investigating public financing and forming special improvement districts, executing, as may be requested by the City of Palm Desert or any other governmental agency having jurisdiction over the Property, applications, permits or approvals required for the submittal of the Entitlements and, if applicable, executing the final map, if requested by BUYER, and providing BUYER and BUYER's agents, employees and independent contractors access to the Property to perform any investigations or tests necessary for the processing of such Entitlements. The parties acknowledge that the intent of this provision is that SELLER will cooperate with BUYER and participate in such meetings if other governmental agencies require the owner of the Property to be in attendance at such meetings. To the extent such attendance is required, BUYER will use reasonable efforts to provide SELLER with advance notice and to schedule such meetings at a time which is reasonably acceptable to SELLER. Upon submittal of any such applications, permits, deeds or maps to SELLER, SELLER shall, no later than seven (7) days after delivery of such documents, deliver the same to BUYER. (b) BUYER shall in good faith diligently make all reasonable efforts to (i) obtain Entitlements within the nine (9) month period following the Opening of Escrow pursuant to Section 5(a) (the “Entitlement Period”). (c) If BUYER is not otherwise in default or in breach of this Agreement, if BUYER should fail to obtain such Entitlements within the Entitlement Period for any reason or if such Entitlements are issued but are not Final by the end of such Entitlement Period, BUYER may cancel Escrow and receive a full refund of the Deposit together with any accrued interest thereon.

Section 9. Funding Approval Period; Funding Allocation Period.

BUYER shall in good faith diligently make all reasonable efforts to obtain affordable housing funding approval, or other sources of funding, within one (1) year from the expiration of the Entitlement Period. If BUYER is not otherwise in 1320
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default or in breach of this Agreement, if BUYER should fail to obtain such affordable housing funding approval, or other sources of funding within one (1) year from the expiration of the Entitlement Period on terms and conditions subject to BUYER’s sole satisfaction (the “Funding Approval Period”), BUYER may cancel Escrow and receive a full refund of the Deposit together with any accrued interest thereon.

If BUYER has not received an affordable housing funding allocation, or other sources of funding, within six (6) months from the expiration of the Funding Approval Period (the “Funding Contingency Period”), BUYER may cancel Escrow. and receive a full refund of the Deposit together with any accrued interest thereon.

Section 10. Escrow Instructions.

SELLER and BUYER each agree to execute and deliver to the Title Company the customary supplemental written escrow instructions (consistent with the terms of this Agreement) of the Title Company. In the event of a conflict between the additional terms of such customary supplemental escrow instructions of the Title Company and the provisions of this Agreement, this Agreement shall supersede and be controlling.

Section 11. Conveyance of Title.

The Title Company shall be instructed to record the Deed in the Official Records of Riverside County, California, if and when the parties have (i) confirmed that the conditions to Close of Escrow have been satisfied, (ii) Title Company holds the funds for the SELLER as set forth on the Settlement Statement and as contemplated herein, (iii) Title Company is prepared to issue to BUYER an ALTA owner’s extended coverage policy of title insurance (“Title Policy”) with liability in an amount equal to the Purchase Price with respect to the Property and such other endorsements to the policy as may be reasonably requested by BUYER, insuring that fee title to the Property is vested in BUYER, free and clear of options, rights of first refusal or other purchase rights, leases or other possessory interests, lis pendens and monetary liens and/or encumbrances and subject only to:
(a) non-delinquent real property taxes;
(b) dedication of streets abutting the Property;
(c) zoning ordinances;
(d) utility easements common to any subdivision of which the Property is a part that are approved by BUYER; and
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(e) such other title exceptions, if any, resulting from documents being recorded or delivered through Escrow in accordance with the provisions of this Agreement.

Section 12. Conveyance AS IS, WHERE IS and SUBJECT TO ALL FAULTS. (a) BUYER shall accept the delivery of possession of the Property (including but not limited to, subterranean structures and soil conditions), in an “AS IS,” “WHERE IS” and ‘SUBJECT TO ALL FAULTS” condition. BUYER hereby acknowledges that it has relied solely upon its own investigation of the Property and its own review of such information and documentation as it deems appropriate.

BUYER is not relying on any statement or representation by SELLER, any employee, official or consultant of SELLER relating to the condition of the Property.

SELLER makes no representations or warranties as to whether the Property presently complies with environmental laws or whether the Property contains any hazardous substance.
(b) From and after the Close of Escrow, BUYER, on behalf of itself and its successors, waives and releases SELLER and its successors and assigns from any and all costs or expenses whatsoever (including, without limitation, attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen, arising from or relating to any of the following matters and conditions relating to the Property which exist as of the date of the Close of Escrow:
(i) the physical condition of the Property or any above ground or underground improvements thereon, (ii) the condition of the soils, (iii) the suitability of the soils for the improvement of any proposed project, or (iv) any law or regulation applicable thereto; provided that the foregoing release shall not extend to (1) any breach by SELLER of any of the representations or warranties of the SELLER set forth in Section 14(a) of this Agreement, (2) any breach by SELLER of any of the covenants or obligations set forth in this Agreement or in any other instrument or document executed pursuant to this Agreement, (3) any claim that is the result of the negligence or willful misconduct of SELLER or (4) any actions of SELLER which occur following the Close of Escrow.
(c) BUYER expressly waives any rights or benefits available to it with respect to the foregoing release under any provision of applicable law which generally provides that a general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time the release is agreed to, which, if known to such creditor, would materially affect a settlement.

By execution of this Agreement, BUYER acknowledges that it fully understands the foregoing, and with this understanding, nonetheless elects to and does assume all risk for claims known or unknown, described in this Section 12 without limiting the generality of the foregoing:

The undersigned acknowledges that it has been advised by legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows:
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“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH

THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN

HIS OR HER FAVOR AT THE TIME OF EXECUTING THE

RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE

MATERIALLY, AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR.”
The undersigned, being aware of this Code section, hereby expressly waives any rights it may have thereunder, as Well as under any other statutes or Common law principles of similar effect.

Initials of BUYER: ________
(d) The provisions of this Section 12 shall survive the Close of Escrow, and shall be binding upon BUYER.
(e) SELLER shall assist and cooperate with BUYER in
endeavoring to remove title exceptions unacceptable to BUYER, but SELLER shall have no obligation to cause such objections to be removed or to expend any sums in such endeavor, except that SELLER shall remove all monetary liens and encumbrances created by or as a result of SELLER’s activities, including, without limitation, any liens or encumbrances associated with (i) any delinquent tax or assessment applicable to the Property; (ii) any indebtedness secured by a deed of trust, assignment of rents or other similar encumbrance; and (iii) any labor or materials supplied to the Property that are not the result of any act or neglect of BUYER or anyone acting for or on behalf of BUYER.
(f) SELLER covenants not to further encumber and not to place any further liens or encumbrances on the Property, including, but not limited to, covenants, conditions, restrictions, easements, liens, options to purchase, rights of first offer options to lease, leases, tenancies, or other possessory interests. (g) SELLER also covenants not to authorize or permit others to take any action that adversely affects the physical condition of the Property or its soils.

Section 13. Closing Costs, Prorations, Possession.
(a) BUYER shall pay the premium for the ALTA extended
coverage Title Policy, cost of procuring a survey and all requested ALTA survey policy endorsements, and the cost of recording the Deed. (b) SELLER shall pay 100% of any documentary or other transfer taxes payable on account of the conveyance of the Property to BUYER, CLTA portion of the Title premium , and the Title Company’s charges and fees which may be charged by the Title Company in connection with the Close of Escrow. 1323
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(c) BUYER shall be entitled to exclusive possession of the Property immediately upon the Close of Escrow.
(d) All prorations shall be made in accordance with customary practice in Riverside County, except as otherwise expressly provided in this Agreement. All prorations shall be on an "actual day" basis and a three hundred sixty-five (365) day year.

Section 14. Representations and Warranties.
(a) SELLER hereby makes the following representations,
covenants and warranties as of the Effective Date and as of the Closing Date:
(1) Power and Authority. SELLER has the legal power,
right and authority to enter into this Agreement and to execute the instruments and documents referenced herein, and to consummate the Transaction contemplated hereby.
(2) Requisite Action. SELLER has taken all requisite
action and obtained all requisite consents in connection with entering into this Agreement and the instruments and documents referenced herein and the consummation of the Transaction contemplated hereby, and no consent of any other party is required.
(3) Enforceability of Agreement. The persons executing
this Agreement and any instrument or document referenced herein for or on behalf of SELLER have been duly authorized to so act on behalf of SELLER and this Agreement and any such instrument or document is valid and legally binding on SELLER and enforceable against SELLER in accordance with their respective terms.
(4) No Litigation. There is no pending or, to the best of SELLER’s knowledge, threatened claims, action, allegations or lawsuit of any kind, whether for personal injury, property damage, property taxes, or otherwise, that could affect the Property.
(5) No Violation. Neither the execution of this Agreement or the other instruments and documents referenced herein nor the performance by SELLER of its obligations hereunder and thereunder shall result in a breach or constitute a default under any agreement, document, instrument or other obligation to which SELLER is a party or by which SELLER may be bound or a breach or violation under law, statute, ordinance, rule, governmental regulation, state constitution, or any writ, injunction, order or decree of any court or governmental body applicable to SELLER, the Property, or the transaction contemplated hereby. 1324
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(6) Leases. There are no leases affecting any portion of the property.
(7) Operation and Condition Pending Closing. Between
the date of this Agreement and the Close of Escrow hereunder, SELLER will continue to manage, operate and maintain the Property in the same manner as existed prior to the execution of this Agreement.
(8) Contracts. The License comprises the only existing
contract or agreement to which SELLER is a party related to the Property. There are no contracts or agreements to which SELLER is a party or rights of third parties relating to the operation, maintenance, development, improvement, lease, possession or ownership of the Property which will survive the Close of Escrow. (9) Hazardous Substances. To SELLER’s knowledge,
except for violations cured or remedied on or before the Effective Date, SELLER has not received any written notice from any governmental authority of (and SELLER is not aware of) any violation of any laws, ordinance, rule, or regulation of any governmental authority affecting or relating to the Property, including any laws pertaining to Hazardous Substances (defined below) applicable to the Property. For the purposes of this Agreement, “Hazardous Substances” shall mean: (a) a “hazardous substance” pursuant to section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601(14), section 311 of the Federal Water Pollution Control Act, 33 U.S.C. §1321, as now or hereafter amended; (b) a “hazardous waste” pursuant to section 1004 or section 3001 of the Resource Conservation and Recovery Act, 42 U.S.C. §§6903, 6921, as now or hereafter amended; (c) a toxic pollutant under section 307(a)(1) of the Federal Water Pollution Control Act, 33 U.S.C. §1317(a)(1); (d) a “hazardous air pollutant” under section 112 of the Clean Air Act, 42 U.S.C. §7412, as now or hereafter amended; (e) a “hazardous material” under the Hazardous Materials Transportation Uniform Safety Act of 1990, 49 U.S.C. App. §1802(4), as now or hereafter amended; (f) toxic or hazardous pursuant to regulations promulgated now or hereafter under the aforementioned laws; or (g) presenting a risk to human health or the environment under other applicable federal, state or local laws, ordinances, or regulations, as now or as may be passed or promulgated in the future.
(10) Mechanic’s Liens. There are no claims for labor
performed for, or materials furnished to or with respect to, the Property which could give rise to a mechanic's lien on the Property.
(11) No Options. SELLER has not entered into any
agreements currently in effect pursuant to which SELLER has granted any rights of first refusal to purchase all or any part of the Property, options to purchase all or any part of the Property or other rights whereby any individual or entity has the right to purchase all or any part of the Property.
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All representations and warranties contained in this Section 14(a) are true and correct on the date hereof and on the Closing Date and shall survive the Close of Escrow.
(b) Warranties and Representations by BUYER. BUYER hereby makes the following representations, covenants and warranties and acknowledges that the execution of this Agreement by SELLER has been made in material reliance by SELLER on such covenants, representations and warranties:
(1) BUYER has the legal right, power and authority to enter into this Agreement and the instruments and documents referenced herein and to consummate the Transaction contemplated hereby. The persons executing this Agreement and such other instruments as may be referenced herein on behalf of BUYER hereby represent and warrant that such persons have the power, right and authority to bind BUYER.
(2) BUYER has taken all requisite action and obtained all requisite consents in connection with entering into this Agreement and the instruments and documents referenced herein and the consummation of the Transaction contemplated hereby, and no consent of any other party is required. (3) This Agreement is, and all instruments and documents to be executed by BUYER pursuant to this Agreement shall be, duly executed by and are or shall be valid and legally binding upon BUYER and enforceable in accordance with their respective terms.
(4) Neither the execution of this Agreement nor the
consummation of the Transaction contemplated hereby shall result in a breach of or constitute a default under any other agreement, document, instrument or other obligation to which BUYER is a party or by which BUYER may be bound, or a breach or violation under law, statute, ordinance, rule governmental regulation or any writ, injunction, order or decree of any court or governmental body applicable to BUYER.

All representations and warranties contained in this Section 14(b) are true and correct on the date hereof and on the Closing Date and shall survive the Close of Escrow.

Section 15. Conflict of Interest.

No member, official or employee of either party having any conflict of interest, direct or indirect, related to this Agreement and the use and development of the Property shall participate in any decision relating to the Agreement. The parties represent and warrant that they do not have knowledge of any such conflict of interest.

Section 16. Nonliability of Officials and Employees.
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No officer, official or employee of SELLER shall be personally liable to BUYER, or any successor in interest of such other party, in the event of any default or breach or for any amount which may become due hereunder, or on any obligations under the terms of this Agreement.

Section 17. Indemnification.

BUYER agrees to indemnify and hold SELLER and its officers, employees and agents harmless from and against all damages, judgments, costs, expenses and attorney’s fees arising from or related to any act or omission of BUYER in performing its due diligence investigations under Section 6(a) and (b), above; provided that the foregoing indemnity shall not apply to the extent of (a) the negligence or willful misconduct of SELLER; (b) breach of Seller’s representations or warranties or (c) the existence of any hazardous materials which were at, in, under, over or upon the Property as of the Opening of Escrow, unless the condition of any such hazardous materials was exacerbated in a negligent manner by an affirmative act of BUYER. SELLER shall give BUYER written notice of the occurrence of a claim, litigation or other matters for which SELLER seeks indemnity under this Section as promptly as practicable following SELLER’S knowledge of the occurrence of such matter and SELLER shall reasonably cooperate with BUYER in the defense of any such claim or matter and shall not take any action that would adversely affect BUYER’s defense of such matter.

Section 18. Default.
(a) Default by BUYER; Limitation on Liability; Liquidated Damages. IN THE EVENT BUYER BREACHES THIS AGREEMENT AND IF

BUYER FAILS TO CURE ANY SUCH FAILURE TO COMPLETE THE CLOSE OF ESCROW WITHIN TEN (10) DAYS FOLLOWING RECEIPT OF A WRITTEN

NOTICE FROM SELLER INDICATING THE NATURE OF ANY DEFAULT ON

THE PART OF BUYER, THE SELLER SHALL RETAIN ANY DEPOSIT, PLUS ANY INTEREST ACCRUED THEREON, AS SELLER’S SOLE REMEDY FOR BUYER’S FAILURE TO CLOSE OR FOR ANY DEFAULT ON THE PART OF

BUYER UNDER THIS AGREEMENT, AND IN SUCH A CASE, BOTH PARTIES

SHALL BE RELIEVED OF AND RELEASED FROM ANY FURTHER LIABILITY HEREUNDER. THE PARTIES HAVE AGREED THAT SELLER'S ACTUAL

DAMAGES, IN THE EVENT OF A DEFAULT BY BUYER, WOULD BE
EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. SELLER

AND BUYER AGREE THAT ANY DEPOSIT, PLUS ANY INTEREST ACCRUED

THEREON IS A FAIR AND REASONABLE AMOUNT TO BE RETAINED BY SELLER AS AGREED AS LIQUIDATED DAMAGES IN LIGHT OF SELLER’S

REMOVAL OF THE PROPERTY FROM THE MARKET AND THE COSTS

INCURRED BY SELLER, AND SHALL NOT CONSTITUTE A PENALTY OR A FORFEITURE.
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BY PLACING ITS INITIALS BELOW, EACH PARTY SPECIFICALLY

CONFIRMS THE ACCURACY OF THE STATEMENTS MADE ABOVE AND THE

FACT THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO

EXPLAINED, AT THE TIME THIS AGREEMENT WAS MADE, THE
CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION.

INITIALS: SELLER: _________BUYER: ____

1.1 (b) Default By SELLER; Other Failure To Consummate
Agreement. IN THE EVENT OF ANY DEFAULT ON THE PART OF SELLER

UNDER THIS AGREEMENT, WHICH SELLER FAILS TO CURE WITHIN TEN (10) DAYS FOLLOWING RECEIPT OF A WRITTEN NOTICE, BUYER SHALL HAVE THE RIGHT, IN BUYER’S SOLE DISCRETION AND AS ITS SOLE AND

ONLY REMEDIES HEREUNDER TO THE EXCLUSION OF ALL OTHER

POTENTIAL REMEDIES, TO EITHER (I) TERMINATE THIS AGREEMENT AND

RECEIVE ANY DEPOSIT, PLUS ANY INTEREST ACCRUED THEREON, IN

WHICH EVENT THIS AGREEMENT SHALL AUTOMATICALLY TERMINATE

AND BE OF NO FURTHER FORCE OR EFFECT AND NEITHER PARTY SHALL

HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, OTHER

THAN PURSUANT TO ANY PROVISION HEREOF WHICH EXPRESSLY
SURVIVES THE TERMINATION OF THIS AGREEMENT; or (II) BRING AN ACTION FOR SPECIFIC PERFORMANCE.

INITIALS: SELLER: _________BUYER: ____
Section 19. Assignment/Binding Contract.

BUYER shall not assign this Agreement to any party without the prior written consent of SELLER, provided that the BUYER may assign this Agreement to one of its Affiliates. For purposes of this provision, “Affiliate” shall mean any parent or subsidiary of BUYER, any partnership including BUYER or any entity which BUYER has a direct ownership interest, or any entity which BUYER indirectly controls, is controlled by, or is under common control with BUYER, including any partnership, joint venture, corporation, trust or other entity, which is directly or indirectly, through one or more intermediaries, controlled or managed in whole or in part by BUYER. This Agreement may be not assigned by SELLER without the prior written consent of BUYER which consent BUYER shall not unreasonably withhold. No assignment of this Agreement shall release the assignor from its obligations hereunder unless and until the assignee agrees to be bound by the relevant terms of this Agreement and assumes assignor’s obligations in a written Assignment and Assumption Agreement and that shall be subject to the SELLER’s reasonable approval.

Section 20. Notices, Demands and Communications Between the Parties. 1328
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Any approval, disapproval, demand, document or other notice (“Notice”) which either party may desire or be required to give to the other party under this Agreement must be in writing and shall be given by certified mail, return receipt requested and postage prepaid, personal delivery, or reputable overnight courier (but not by facsimile ), to the party to whom the Notice is directed at the address of the party as set forth below, or at any other address as that party may later designate by Notice.

To SELLER: City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
Attn: City Manager
Email: [email protected]
With a copy to: Robert F. Messinger, Esq.

Burke, Williams & Sorensen, LLP
18300 Von Karman Avenue, Suite 650
Irvine, CA 92612
To BUYER: Blieu LLC
2000 E. 4th Street, Suite 205
Santa Ana, CA 92705-3907
Attn: Mark Bigley, Vice President
Email: [email protected]
Notice may also be perfected by email by sending to the relevant email address set forth above.

Section 21. Proprietary and Governmental Roles; Actions by Parties.

Except where clearly and expressly provided otherwise in this Agreement, the capacity of the SELLER in this Agreement shall be as owner, lessor, assembler, redeveloper and/or seller of property only (“Proprietary Capacity”), and any obligations or restrictions imposed by this Agreement on the SELLER, shall be limited to that capacity and shall not relate to, constitute a waiver of, supersede or otherwise limit or affect the exercise by the SELLER of its governmental authority (“Governmental Capacity”) with respect to any matter related to this Agreement. Determinations of the SELLER in its Proprietary Capacity shall be made by SELLER in its reasonable discretion. In any instance in which a Party shall be requested to consent to or approve of any matter with respect to which such Party’s consent or approval is required by any of the provisions of this Agreement, such consent or approval shall be given in writing. In addition, whenever not expressly otherwise stated: (a) the SELLER when acting in its Governmental Capacity shall be permitted to utilize its sole discretion with respect to matters requiring its approval except as otherwise specified in any 1329
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applicable Governmental Requirements; (b) the SELLER when acting in its Proprietary Capacity shall not unreasonably withhold, condition or delay its approvals with respect to matters requiring its approval under this Agreement; and (c) BUYER shall not unreasonably withhold, delay or condition its consent with respect to matters requiring its approval under this Agreement.

Section 22. Time of the Essence.

Time is of the essence with respect to the Close of Escrow and all of the provisions of this Agreement.

Section 23. Miscellaneous.
(a) This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and together shall constitute one and the same agreement, with one counterpart being delivered to each party hereto. (b) All periods of time referred to in this Agreement shall include all Saturdays, Sundays and state or national holidays, provided that if the date or last date to perform any act or give any notice with respect to this Agreement shall fall on a Saturday, Sunday or state or national holiday, such act or notice may be timely performed or given on the next succeeding day which is not a Saturday, Sunday or state or national holiday.
(c) The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render the other provisions hereof unenforceable, invalid or illegal.
(d) SELLER and BUYER each represents to the other that it has not engaged the services of any finder or broker and that it is not liable for any real estate commissions, broker’s fees, or finder’s fees which may accrue by means of the conveyance of the Property as described in this Agreement, or the negotiation and execution of this Agreement. Each party shall indemnify, defend, protect and hold the other party harmless from any and all Claims based upon any assertion that such commissions or fees are allegedly due from the party making such representations.

Section 24. Additional Agreements; Further Assurances.

Each of the parties hereto shall execute and deliver such documents as the other party shall reasonably request in order to consummate and make effective the Transaction; provided, however, the execution and delivery of such documents shall not result in any additional liability or cost to the executing party.

Section 25. Entire Agreement.
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(a) This Agreement and the exhibits attached hereto constitute the entire understanding and Agreement of the parties.
(b) This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto with respect to the Property. (c) The headings to the sections and paragraphs of this Agreement are for convenience of reference only, do not form a part of this Agreement and shall not in any way affect its interpretation. (d) Unless otherwise indicated, references in this Agreement to Sections, paragraphs, clauses and exhibits are to the same contained in or attached to this Agreement and all attachments referenced in this Agreement are incorporated in this Agreement by this reference as though fully set forth in this Section.

Section 26. Approval.
(a) City Council. This Agreement is subject to, and will have no force or effect until and unless first approved by the City Council of the City of Palm Desert. All amendments of this Agreement shall be in writing and shall require the approval of the City Council on behalf of SELLER and the approval of BUYER. (b) Administrative Approvals. Following its approval by the City Council, this Agreement shall be administered by the City Manager or his or her designee. Except where the terms of this Agreement expressly require the approval of a matter or the taking of any action by the City Council, any matter to be approved by the SELLER shall be deemed approved, and any action to be taken by the SELLER shall be deemed taken, upon the written approval by the City Manager (or designee). The City Manager or designee shall have the authority to issue interpretations with respect to this Agreement and to determine whether any action requires the approval of the City Council.
[Signatures on following pages]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the dates set forth below.

SELLER Signatory Page
SELLER:

Date: June 12, 2025
CITY OF PALM DESERT, a charter city
and municipal corporation
By: ____________________________

CHRIS ESCOBEDO

INTERIM CITY MANAGER
APPROVED AS TO FORM:

By: __________________________

ISRA SHAH

BEST BEST & KRIEGER

CITY ATTORNEY
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BUYER Signatory Page
BUYER:

Date: ___________2025 BLIEU LLC, a California limited liability company
By:_______________________________

MARK BIGLEY

VICE PRESIDENT
APPROVED AS TO FORM:

By:_______________________________
, Counsel
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EXHIBIT “A”

LEGAL DESCRIPTION OF THE PROPERTY
That certain real property located in the City of Palm Desert, Riverside County, State of California consisting of eight parcels as more particularly described as follows:

Parcel 1 (APN 620-370-002)
Parcel 2 (APN 620-370-003)
Parcel 3 (APN 620-370-004)
Parcel 4 (APN 620-370-017)
Parcel 5 (APN 620-370-018)
Parcel 6 (APN 620-370-020)
Parcel 7 (APN 620-370-033)
Parcel 8 (APN 620-370-043)
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EXHIBIT “A-1”

PROPERTY DEPICTION
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EXHIBIT “B”

FORM OF DEED

GRANT DEED
RECORDING REQUESTED BY:

Title Company
MAIL TAX STATEMENTS TO:

AND WHEN RECORDED MAIL TO:

Attn:
(SPACE ABOVE THIS LINE FOR RECORDER’S USE)
APNS:

Documentary Transfer Tax: $____________
Based on full value of property conveyed.
[__] unincorporated area; [ X ] City of Palm Desert.

GRANT DEED
For valuable consideration, receipt of which is hereby acknowledged, The CITY OF PALM DESERT, a California charter city (the “Seller"), hereby grants and conveys to BLIEU LLC, a California limited liability company (“Buyer”), the real property hereinafter referred to as the “Property”, described in Exhibit A attached hereto and incorporated herein, subject to the existing easements, restrictions and covenants of record, and the covenants set forth in this Grant Deed.

1. The Buyer covenants by and for itself and any successors in interest that not less than twenty-five percent (25%) of the total number of residential units developed on the Property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. Rental units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership 1336
-27-
housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in-interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code.

2. The Buyer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Buyer itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land.

The Buyer shall refrain from restricting the rental, sale or lease of the Property on the basis of race, color, religion, sex, marital status, ancestry or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
(a) In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land.”
(b) In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:
“That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to 1337
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the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.”
(c) In contracts: “There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises.”
[Signature Block Begins on Following Page]
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4927-7723-8550 v1 29
SELLER:

CITY OF PALM DESERT, a California
charter city
By:

Chris Escobedo, Interim City Manager
Date:

Attest:

By:

Anthony J. Mejia, City Clerk
Date:

Approved as to form:

By:

Isra Shah, City Attorney
Date:
[Signatures Continued on Following Page]
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4927-7723-8550 v1 30
BUYER:

BLIEU LLC,
a California limited liability company
By: ____ Date: ______
Mark Bigley, Vice President
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