Agenda packet, regular meeting — Palm Desert City Council, August 28, 2025 (part 6 of 9)

Superb Engineering, Inc.

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22. How many years has Bidder’s organization been in business as a Contractor? * 4 23. List the Signatory(s) Authorized to Sign and Bind an Agreement.* (If two (2) signatures are required, include the following information for both signatories)

1. Full Name

2. Title

3. Physical Business Address

4. Email Address

5. Phone Number
Corporation (C-Corp): Requires two signatures from authorized officers— one from President or Vice President, and the other from the Secretary or Treasurer.

An alternate signatory may be used if authorized by a Notarized Corporate Resolution or Article of Authority.

Sole Proprietorship, Non-Profit, Single LLC: Only the one signature is necessary.

Estela Candelario
President
2947 West Lincoln Street, Unit 105, Banning, CA 92220
[email protected]
1008
[SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
IFB No. 2025-IFB-200
Construct Cahuilla Hills Park and Trailhead ADA Improvements [SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
Invitation For Bid - Construct Cahuilla Hills Park and Trailhead ADA Improvements

Page 11 ends

(909) 262-4626

24. Nondiscrimination Certification*
The City of Palm Desert is committed to promoting equal opportunity in its contracting activities. We ensure that all individuals seeking to do business with the city treat contractors, subcontractors, and employees fairly, without discrimination based on race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, sexual orientation, or membership in any other protected class.

For any purchase exceeding $10,000, vendors must certify compliance with the City’s nondiscrimination policy (G.C. 3.30.200) before contract award. No contract will be awarded until the contractor submits this certification.

By clicking the confirmation box below, the vendor certifies that they have read the code and agree to comply with its requirements.

Failure to comply may result in termination of any agreement entered into with the vendor.

Confirmed

PRICE TABLES

SITE WORK
Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 Mobilization, Demobilization & Final Cleanup (5%) 1 LS $52,498.00 $52,498.00 2 Clearing and Grubbing 1 LS $8,066.00 $8,066.00
3 Demolition and removal of existing P.C.C. 1 LS $7,128.00 $7,128.00 4 Dust Control / Stormwater BMPs 1 LS $11,890.00 $11,890.00 5 Site Grading (Earthwork), including report 1 LS $44,490.00 $44,490.00 1009
[SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
IFB No. 2025-IFB-200
Construct Cahuilla Hills Park and Trailhead ADA Improvements [SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
Invitation For Bid - Construct Cahuilla Hills Park and Trailhead ADA Improvements

Page 12 ends

Line Item Description Quantity Unit of
Measure
Unit Cost Total
6 Replace all existing metal signs and posts with like kind 1 LS $1,211.00 $1,211.00 7 P.C.C. Concrete (6") 750 SF $15.40 $11,550.00
8 Parking lot signing and striping 1 LS $4,125.00 $4,125.00 9 Install Black Truncated Dome Detectable Warning Panel 25 SF $62.70 $1,567.50 10 Concrete Wheel Stop (all spaces) 13 EA $203.50 $2,645.50 11 Paint 4" White Parking Stripe (includes all ADA markings/signage) 1 LS $4,367.00 $4,367.00 12 P.C.C. Meandering Sidewalk (4") 6,200 SF $17.15 $106,330.00 13 Concrete Pavers with Soldier Course Edge 675 SF $42.82 $28,903.50 14 Stabilized and Wet Rolled Compacted D.G. Path (3") 5,000 SF $2.91 $14,550.00 15 Concrete Mow Curb (6" x 6") 860 LF $22.00 $18,920.00 16 BBQ 2 EA $2,232.00 $4,464.00
17 Hot Coal Bin 2 EA $1,885.00 $3,770.00
18 Concrete trash receptacle with logo 11 EA $3,692.00 $40,612.00 19 Concrete bench with logo 11 EA $3,283.00 $36,113.00
20 Picnic table (square with chess board) 1 EA $3,297.00 $3,297.00 21 Picnic table (72") 3 EA $2,480.00 $7,440.00
1010
[SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
IFB No. 2025-IFB-200
Construct Cahuilla Hills Park and Trailhead ADA Improvements [SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
Invitation For Bid - Construct Cahuilla Hills Park and Trailhead ADA Improvements

Page 13 ends

Line Item Description Quantity Unit of
Measure
Unit Cost Total
22 Picnic table (92") 3 EA $2,314.00 $6,942.00
23 ADA picnic table (102") 1 EA $3,197.00 $3,197.00
24 ADA picnic table (square) 2 EA $3,039.00 $6,078.00
25 Drinking fountain 2 EA $8,105.00 $16,210.00
26 Leaning rail 8 EA $2,489.00 $19,912.00
27 Removable bollards 2 EA $1,466.00 $2,932.00
28 Bike rack 1 EA $2,281.00 $2,281.00
29 Dog waste station 1 EA $1,125.00 $1,125.00
30 Install shade structure (owner supplied) 1 LS $46,754.00 $46,754.00 31 Furnish and install drainage system 1 LS $23,261.00 $23,261.00 32 Boulder wall 1,015 LF $106.06 $107,650.90
33 Soil testing, soil preparation, fine grading, and weed control 1 LS $19,222.00 $19,222.00 34 Project Lighting and Electrical 1 LS $125,367.00 $125,367.00 TOTAL $794,869.40

LANDSCAPING
1011
[SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
IFB No. 2025-IFB-200
Construct Cahuilla Hills Park and Trailhead ADA Improvements [SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
Invitation For Bid - Construct Cahuilla Hills Park and Trailhead ADA Improvements

Page 14 ends

Line Item Description Quantity Unit of
Measure
Unit Cost Total
35 Remove Trees per plan 30 EA $846.95 $25,408.50
36 Relocate Trees per plan 0 LS $0.00
37 Mulch 1,675 SF $2.43 $4,070.25
38 3/8” Diameter decomposed granite perimeter ribbon sheet L-12 4,760 SF $3.11 $14,803.60 39 ¾” Diameter Crushed Rock 18,500 SF $1.69 $31,265.00
40 2”-4” Crushed Rock 2,250 SF $3.06 $6,885.00
41 Landscape Boulders 22 EA $304.00 $6,688.00
42 Landscape Lighting 1 LS $52,250.00 $52,250.00
43 Furnish and Install Landscape Irrigation 1 LS $60,006.00 $60,006.00 44 Parkinsonia “Blue Palo Verde” 5 EA $1,013.00 $5,065.00 45 Prosopis ‘AZT’ “Thornless Hybrid Mesquite 6 EA $1,166.00 $6,996.00 46 Acacia Aneura “Mulga” 10 EA $1,105.00 $11,050.00
47 Chilopsis Linearis “Desert Willow” 6 EA $999.00 $5,994.00 48 Agave Webberi “Weber’s Agave” 6 EA $137.00 $822.00
49 Hesperaloe Parviflora ‘Desert Flamenco’ 26 EA $47.00 $1,222.00 50 Aloe Barbadensis “Aloe Vera” 6 EA $29.00 $174.00
1012
[SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
IFB No. 2025-IFB-200
Construct Cahuilla Hills Park and Trailhead ADA Improvements [SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
Invitation For Bid - Construct Cahuilla Hills Park and Trailhead ADA Improvements

Page 15 ends

Line Item Description Quantity Unit of
Measure
Unit Cost Total
51 Muhlenbergia Capillaris ‘Regal Mist’ 19 EA $25.37 $482.03 52 Aristida Purpurea “Purple Three Awn” 27 EA $28.12 $759.24 53 Bouteloua Curtipendula “Sideoats Grama” 30 EA $26.33 $789.90 54 Larrea Tridentata “Creosote Bush” 36 EA $44.41 $1,598.76 55 Calliandra California “Baja Fairy Duster” 40 EA $32.59 $1,303.60 56 Leucophyllum Pruinosum ‘Sierra Bouquet’ 3 EA $39.01 $117.03 57 Russelia Equisetiformis “Coral Fountain” 9 EA $26.40 $237.60 58 Abutilon Palmerii “Indian Mallow” 6 EA $32.59 $195.54 59 Berlandiera Lyrata “Chocolate Daisy” 4 EA $52.14 $208.56 60 Encelia Farinosa “Brittlebush” 73 EA $31.22 $2,279.06 61 Salvia Clevelandii “Cleveland Sage” 6 EA $27.09 $162.54 62 Justicia Spicigera “Mexican Honeysuckle” 5 EA $39.01 $195.05 63 Sphaeralcea Ambigua “Desert Globemallow” 7 EA $31.22 $218.54 64 Asclepias Linaria “Pineneedle Milkweed” 4 EA $40.36 $161.44 65 Dalea Greggii “Trailing Indigo Bush” 2 EA $40.36 $80.72 66 Eremophila Glabra Var. ‘Mingenew Gold’ 51 EA $32.59 $1,662.09 1013
[SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
IFB No. 2025-IFB-200
Construct Cahuilla Hills Park and Trailhead ADA Improvements [SUPERB ENGINEERING] RESPONSE DOCUMENT REPORT
Invitation For Bid - Construct Cahuilla Hills Park and Trailhead ADA Improvements

Page 16 ends

Line Item Description Quantity Unit of
Measure
Unit Cost Total
67 Lantana Montevidensis “Purple Color” 11 EA $25.03 $275.33 68 Chrysactinia Mexicana “Parry’s Penstemon” 12 EA $31.84 $382.08 69 Penstemon Ambiguus “Pink Plains Penstemon” 13 EA $52.14 $677.82 70 Penstemon Parryi “Parry’s Penstemon” 11 EA $39.01 $429.11 71 90-Day Plant Maintenance Period 1 LS $9,701.00 $9,701.00 TOTAL $254,616.39
1014

DESIGNATION OF SUBCONTRACTORS
The subcontractor(s) listed below will perform work or labor or render service to the contractor in or about the construction of the work or improvement, or are subcontractors licensed by the State of California who will, under subcontract to the contractor, specially fabricate and install a portion of the work or improvement according to detailed drawings contained in the Contract Documents, in an amount in excess of one-half of one percent (0.5%) of the contractor’s total bid.

Notwithstanding the foregoing, if the work involves the construction of streets and highways, then the Bidder shall list each subcontractor who will perform work or labor or render service to the Bidder in or about the work in an amount in excess of one-half of one percent (0.5%) of the Bidder’s Total Bid Price or $10,000, whichever is greater. No additional time shall be granted to provide the below requested information.

In compliance with the Subletting and Subcontracting Fair Practices Act Chapter 4 (commencing at Section 4100), Part 1, Division 2 of the California Public Contract Code, the Bidder shall set forth below:
(a) The portion of the work to be done by the subcontractor; (b) The name and the location of the place of business; (c) The California contractor license number; and
(d) The DIR public works contractor registration number.

If a Bidder fails to specify a subcontractor or if a Bidder specifies more than one subcontractor for the same portion of work, then the Bidder shall be deemed to have agreed that it is fully qualified to perform that portion of work and that it shall perform that portion itself.

Portion of
Work to be
done by
Subcontractor
Percent of
Total Base
Bid
Name of
Subcontractor
Location
of
Business
CSLB
Contractor
License
No.

DIR
Registration
Number
Electrical &
Lighting
14% Brudvik, Inc.

Electrical
Contractor
Palm
Springs, CA
482623 1000009363
6/30/26
Surveying &
Staking

0.5% On Point Land
Surveying Inc.

Redlands,
CA
LS-8133 1000003100
6/30/26
1015
Portion of
Work to be
done by
Subcontractor
Percent of
Total Base
Bid
Name of
Subcontractor
Location
of
Business
CSLB
Contractor
License
No.

DIR
Registration
Number
(Attach additional sheets if necessary)
1016

BIDDER INFORMATION AND EXPERIENCE FORM
A. INFORMATION ABOUT BIDDER
(Indicate not applicable (“N/A”) where appropriate.)
NOTE: Where Bidder is a joint venture, pages shall be duplicated and information provided for all parties to the joint venture.

1.0 Name of Bidder: __Superb Engineering, Inc._____________________

2.0 Type, if Entity: __S. Corporation___________________________________

3.0 Bidder Address:_2947 West Lincoln Street, Unit 105, Banning, CA 92220__ _____________________________________________________________ _None______________________________(909) 269-2333 _____________ Facsimile Number Telephone Number
[email protected] _____________________________ Email Address

4.0 How many years has Bidder’s organization been in business as a Contractor? _4_____________________________

5.0 How many years has Bidder’s organization been in business under its present name? __4______________________

5.1 Under what other or former names has Bidder’s organization operated?___N/A_________________________________ ____

6.0 If Bidder’s organization is a corporation, answer the following:

6.1 Date of Incorporation: __05/22/2023_____________________

6.2 State of Incorporation: __California ______________________

6.3 President’s Name: __Estela Candelario

6.4 Vice-President’s Name(s): __Estela Candelario_____________ ________________________________

6.5 Secretary’s Name: __ Estela Candelario_______________

6.6 Treasurer’s Name: __ Estela Candelario ______________ 1017

7.0 If an individual or a partnership, answer the following:

7.1 Date of Organization: _N/A_______________________________

7.2 Name and address of all partners (state whether general or limited partnership):
___N/A ____________________________________________________ ___________________________________________________________ ___________________________________________________________

8.0 If other than a corporation or partnership, describe organization and name principals:
___________N/A_____________________________________________ ___________________________________________________________

9.0 What type of work does the Bidder normally perform with its own forces? __Planting, Irrigation, Aggregates, Grading, Concrete, Traffic Control, Site __Furnishings and Drainage______________________________

10.0 Has Bidder ever failed to complete any work awarded to it? If so, note when, where, and why:
__No_______________________________________________________ ___________________________________________________________

11.0 Within the last five years, has any officer or partner of Bidder’s organization ever been an officer or partner of another organization when it failed to complete a contract? If so, attach a separate sheet of explanation:
__No_______________________________________________________ ___________________________________________________________

12.0 List Trade References:
__Imperial Sprinker Supply (760) 574-4142
__Southwest Boulder & Stone (760) 451-3333________ ______ __Herc Rentals (442) 599-1235___________________ ______ __Maria Ojeda & Associates (562) 619-6193________ ______ [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
1018
B. LIST OF CURRENT PROJECTS (BACKLOG)
[**Duplicate Page if needed for listing additional current projects.**] Project Client Reference
(agency
name/contact
info)
Description of
Bidder’s Work
Completion Date Cost of Bidder’s
Work
Eastern Ave
Improvements
Jay Baggs
(986) 218-1800
L&I,
Aggregates
December 2025 $494,989
Eastvale Median
Improvements
Jimmy Chung
(951) 703-4473
L&I, Traffic
Control,
Electrical,
Concrete
September 2025 $835,317
Big Canyon
Restoration
Project - Phase
3 City of Newport
Rob Stein
(949) 644-3322
Restoration /
reclamation
February 2026 $5,242,833
1019
LIST OF COMPLETED PROJECTS – LAST THREE YEARS
[**Duplicate Page if needed for listing additional completed projects.**] Please include only those projects which are similar enough to demonstrate Bidder’s ability to perform the required Work.

Project Client Reference
(agency
name/contact
info)
Description of
Bidder’s Work
Completion Date Cost of Bidder’s
Work
City of Palm
Desert
Shawn Muir
(760) 776-6481
L&I,
Aggregates
Q1 2025 $1,031,528
City of
Commerce
Roy Koo
(909) 595-8599
Paving, L&I at
Medians
Q1 2025 $1,984,602
Pacific West
Builders
Mike Ashley
(559) 246-0403
L&I, DG Q4 2024 $489,376
1020
C. EXPERIENCE AND TECHNICAL QUALIFICATIONS QUESTIONNAIRE Personnel:

The Bidder shall identify the key personnel to be assigned to this project in a management, construction supervision or engineering capacity.

1. List each person’s job title, name and percent of time to be allocated to this project:

Superintendent, Raul Ponce, 20%
President, Estela Candelario, 10%
Foreman, TBD, 100%

2. Summarize each person’s specialized education:

Raul Ponce – 29 Years in the Construction Industry
Estela Candelario – B.S. Construction Management, 9 Years in the Construction Industry

3. List each person’s years of construction experience relevant to the project:

Raul Ponce – 15 Years
Estela Candelario – 7 Years

4. Summarize such experience:

Raul Ponce - Managing Public Works projects, managing teams of 10 or more Estela Candelario - Project management, scheduling, budgeting, etc.

Bidder agrees that personnel named in this Bid will remain on this Project until completion of all relevant Work, unless substituted by personnel of equivalent experience and qualifications approved in advance by the City.
1021
D. ADDITIONAL BIDDER’S STATEMENTS:

If the Bidder feels that there is additional information which has not been included in the questionnaire above, and which would contribute to the qualification review, it may add that information in a statement here or on an attached sheet, appropriately marked:

_______
1022
1023
1024
1025
08/06/25
Jesus Ponce,
The following is the Dun & Bradstreet D-U-N-S® Number for SUPERB ENGINEERING INC.

D-U-N-S number: 129417522
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1026
Federally required documents must be submitted with
your bid to the contract award
This project has federal requirements of the U.S. Department of Housing and Urban Development (HUD). lf you have questions regardingthese requirements, please contact:

Christopher Gerry
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
(760)776-6335
Unless otherwise stated, the following documents must be submitted by the contractor with the bid proposal:
o Proof of registration in the System for Award Management (www.sam.sov) o Proof of registration in the D&B Data Universal Numbering System (https://iu pdate.d nb.com/iU pdate/com panvlooku p. htm) o Section 3 Contract Clause (Exhibit 1)
o New Hire Calculation Form (Exhibit 2)
o Contractor's Section 3 Affirmative Action Plan (Exhibit 8) with proof of publication o Section 3 Contract Award Considerations (Exhibit 9) with proof of publication o Women/Minority Business Owned Enterprises Good Faith Efforts (Exhibit 12) o Non-collusion Affidavit (Exhibit 15)
o Federal Lobbyist Requirements Certification (Exhibit 15) o Certification and Understanding of Authorization (Exhibit 17) o To be filed by subcontractor(s) as well
o AdditionalWageRateClassification
o lf the contractor needs an additionaljob classification, said contractor must submit with the bid proposal a written, signed request naming the work classification(s) and the wage rate(s), including proposed fringe benefits. 1027
B.

Page 4 of 28 ends

Exhibit 1
Section 3 Contract Clause
A. The work io be performed under this contract number by and between the City of Palm Desert, hereinafter referred to as "City" 6p6 Superb Engineering, lnc' , hereinafter referred to as
F.
"Contractor", is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended 12 U.S.C. 1701u (section 3). Section 3 ensures that employment and other economic opportunities generated HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low-and very low-income persons.

The parties to this contract agree to comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other constraint that would prevent them from complying with the Part 135 regulations.

The Contractor agrees to include a Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 135, and agrees to take appropriate action, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The Contractor will not subcontract with any subcontractor where the Contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135.

The Contractor will certify that any vacant employment positions, including training positions, that are filled (1)afterthe Contractor is selected but before the contract is executed, and (2)with persons other than those to whom the regulations of 24 CFR part 135 requlre employment opportunities to be directed, were not to circumvent the Contractor's obligations under 24 CFR part 135.

Noncompliance with regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted projects.

The Contractor by this signature affixed hereto declares under penalty of perjury: Contractor has read City requirements and accepts all its requirements contained therein for all of his/her operations within the City of Palm Desert.

EstelaCandelario,President 811112025
Signature
1074243
Print Name and Title Date
129417522
Contractor License Number & Designation DUNS Number
Revised February 14,2024
1028

Page 5 of 28 ends

Exhibit 2
Section 3 New Hire Calculation Form
Project Name: Construct Cahuilla Hills Park and Trailhead ADA lmprovements Project Address / Location: 1 72-700 Tierre Del Oro, Palm Desert 92260 Contractor Name: Superb Engineering, lnc.

Contractor Contact: Estela Candelario
Contractor Telephone Number: (909) 262-4626
Contractor Email Addres5; [email protected] Section 3 Resident Hiring Goals
Trade/Craft Number of New Hires
Total Number of New Hires:

Total number of Section 3 resident new hires necessary to comply with contract:

Silnature of Con
Revised February 14,2024
Laborers TBD TBD
1029

1. 2.

Page 12 of 28 ends

Exhibit 8
Affirmative Action Plan
The undersigned contractor agrees to implement the following affirmative action steps directed at increasing the utilization of lower income residents and business concerns in Riverside County.

Take affirmative action to ensure that employees or applicants for employment or training are not discriminated against because of race, color, religion, sex or national origin.

Send a notice of the contractor's Section 3 commitment to each labor organization or representative of workers and post a copy of the notice at a conspicuous place available to employees and applicants for employment or training.

To the greatest extent feasible, make a good faith effort to recruit for employment or training lower income residents from the County, and to award contracts to business concerns which are located in or owned in substantial part by persons residing in the County through use of: local advertising media, signs placed at the project site and notification to community organizations and public or private lnstitutions operating within or serving the project area such as Service Employment and Redevelopment (SER), Opportunities lndustrialization Center (OlC), Urban League, Contracted Employment Program, U.S. Employment Service, Chamber of Commerce, labor unions, trade associations and business concerns.

Maintain a file of all low-income area residents who applied for employment or training either on their own or on referralfrom any source, and the action taken with respectto each area resident.

5. Maintain a file of all business concerns located in the County who submitted a bid for work on the project, and the action taken with respect to each bid.

6. Maintain records, including copies of correspondence, memoranda, etc., which document that affirmative action steps have been taken.

7. lncorporate the Section 3 clause provisions in all subcontracts, and require subcontr )to submit a Section 3 Affirmative Action Plan.

Superb Engineering, lnc.

Company Name
2947 West Lincoln St, Unit '105, Banning,
Signature
CA92220 Estela Candelario

3. 4.

Address: Street, City, State, Zip
129417522
Printed Name
President
DUNS Number Title
RevisedFebruary 14,2024
1030

Page 13 of 28 ends

Exhibit 9
Section 3 Contract Award Consideration
Bidder's Name: Superb Engineering, lnc
Please check the numbered statement that is applicable to your business:

1. My business qualifies as a Section 3 business concern:
lfyou have checked the statement#1 above please read the attached Section 3 Business Concern Preference - Bidding Requirements.

Please check the applicable qualification for statement # 1:
51% owned by Section 3 residents; or
Permanent, full-time employees include at least 30% Section 3 residents; or Will subcontract more than 25% of the dollar award of all subcontracts to be awarded to business concern(s) that meet either of the two preceding qualifications.

Note: You are required to list all subcontractors and owner-operators in your bid statement.

2. X My business does not qualify as a Section 3 business concern.

Note: Section 3 business concern definitions are located in this projecf s Contrad Documents & Specifications Monualwithin the section titled Sedion 3 Economic Opportunities Plon.

Estela Candelario
Print Name
8t11/2025
Business Date
RevisedFebruary 14,2024
1031

Page 16 of 28 ends

Exhibit 12
Women Owned/Minority Owned Enterprises (WMBE) Good Faith Efforts Proiect Name: Construct Cahuilla Hills Park and Trailhead ADA lmprovements Proiect Number: 2025-lF8-200
Project Locationr 172-700 Tierre DelOro, Palm Desert 92260 Pursuant to 24 CFR Part 85 5 85.36 (e) of Code of Federal Regulations, contractor must take all necessary affirmative steps to assure that minority business firms, women's business enterprises and Iabor surplus firms are used whenever possible.

Contractor shall submit the following information to demonstrate that a good faith effort has been made to comply with the above section of the Code of Federal Regulations. Submittal of this form, in and of itself, may not provide sufficient documentation to demonstrate that good faith effort was made. Documentation such as copies of advertisement, letters of solicitation, telephone logs, rejected quotes, etc. should accompany this form.

L. The names and dates of advertisement of each newspaper, trade paper, and minority-focus paper in which a request for W/MBE participation for this project was placed by the bidder:

Names of Newspaper Date of Advertisement

2. The names and dates of written notices sent to WMBE soliciting bids for this project and methods used for following up initial solicitation to determine whether the WMBE were interested.

Names of
WMBE Solicited
Dates of
Solicitation
Follow-up Methods
and Dates

3. The items of work the bidder made available to WMBE firms, including, where appropriate, any breaking down of the contracts into economically feasible units to facilitate WMBE participation, and the information furnished to WMBE such as plans, specifications, and requirements for the work.

Items of Work:

Breakdown of ltems:
lnformation Furnished:

RevisedFebruary 14,2024

NONE NONE NONE NONE
1032
Page U of 28
Exhibit 12 (cont.)

4. Efforts made to assist WMBE in obtaining bonding, lines of credit or insurance, and any technical assistance related to plans, specifications and requirements for the work provided to WM BE:

Any added data that demonstrates a good faith effort, such as previous contracts with W/MBE assistance agencies:

I declore under penalty of perjury that the foregoing informotion is true ond correct to the best of my knowledge. I understond thotthe City of Polm Desert ond/orthe U.S. Deportment of Housing ond Urbon Development moy verify the informotion provided herein in connection with W/MBE complionce evoluotion/audit octivities ond that foilure to f ully ond truthfully complete this form moy result in economic or other sanctions.

Business Raciai/rthnic/Gender Cooe:

Circle the :unrber representative of at least 51% of business owner(s) and controller(s). lf 51% is not owned or conti-oiled by a single nurnber-, piease circle what appears as the most appropriate number. l- = White lnieri:ans 2 = Black Americans
5 = Asian/Pacific Americans
Yes X
3 = Native Americans
@ Hisoanic Americans 6 = Hasidic Jews
Woman Orn,rred Business: No
Na me of ContractorAu bcontractor:
93-331 8797
2947 West Lincoln Street, Unit 105
Banning, CA92220
Address (Street, City, State, Zlp):

ReviscdFebruary 14,2024

NONE NONE
1033
Page20 ol 28
Exhibit 15
Non-collusion Affidavit
(Title 23 United States Code Section 112 and
Public Contract Code Section 7106)
ln accordance with Title 23 United States Code Section 112 and Public Contract Code 7106, the bidder declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that 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, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contrac! that all statements contained in the bid are true; and, further, that 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, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid.

Estela Candelario President
Print Name
2947 West Lincoln Street, Unit 105, Banning, C492220
Title
8t11t2025
Date
Revised February 14,2024
1034

ACKNOWLEDGMENT
A notary public or other otficer 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 Galifornia f7 .

County ot Ktl/er>iJf )
o^ ff ,t f zr berore *",5s, 6,;on 4;^"zq , Notary pubric personally appeared ijs**l^ (a^de )+r, ct
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 PENALry OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

JOSE BRIAN ESPINOZA
Notary Public - California
Riverside County
Commission e 2414445
Ay Comm. Exaires sep 1, 2025
Signature -./'u r'?
Clear Form
1035
Exhibit 16
Federal Lobbyist Requirements Certifi cation
Name of Firm: Superb Engineering, lnc. Date:

Address: 2947 West Lincoln Street, Unit 105, Banning
8t11/2025

Page 21 of 28 ends

State: CA ZipCode: 92220 Telephone: (909)269-2333
Acting on behalf of the above-named firm as its Authorized Official, I make the following certification to the Department of Housing and Urban Development (HUD) and the City of Palm Desert:

No Federal appropriated funds have been paid, by or on behalf of the above-named firm to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, loan, or cooperative agreement, and any extenslon, continuation, renewal, amendment, or modification thereof; and
lf any funds other than Federal approprrated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee or any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the above-named firm shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying" in accordance with its instructions; and
The above-named firm shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accord ingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into the transaction imposed by Section 1352 Title 31 U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than S10,000 and not more than S100,000 for each such failure.

Authorized Official:

Title: President
Date: 811112025
RevisedFebruary 14,2024

1..

2. 3.

Name:

Signatu re:
1036

Page 22 of 28 ends

Exhibit 17
Certification of U ndersta ndi ng a nd Authorization
This is to certify that the principals and the authorized payroll officer, below, have read and understand the minutes of the preconstruction conference and the labor standards clauses pertaining to the subject project.

The following person(s) is designated as the payroll officer for the undersigned and is authorized to sign the Statement of Compliance, which will accompany our weekly certified payroll reports for this project:

Estela Candelario
Superb Engineering, lnc.

Estela Candelario
Printed Name
President
Title
8t11/2025
Date
1074243
Contractor/Subcontractor License No.
129417522
DUNS Number
RevisedFebruary 14,2024
PayrollOfficer's
Payroll Signature
1037
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Jesus Ponce,
The foilowing is the Dun & Bradstreet D-U-N-S@ Number for SUPERB ENGINEERINGINC.

D-U -N-S number: 129417 522
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A 2025 Dun & Bradstreet, lnc. All rights reserved. | 5335 Gate Pkwy, Jacksonville, FL 32256, USA
1039
1040
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 Superb Engineering, Inc., (hereinafter referred to as the “Contractor”) an agreement for Cahuilla Hills Park Improvements (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 August 28, 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, Superb Engineering, Inc., the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of One Million Forty-Nine Thousand Four Hundred Eighty-Five Dollars and 79/100, ($1,049,485.79), 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
1041
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]
1042
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.
1043
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
1044
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1045
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 August 28, 2025, has awarded to Superb Engineering, Inc., hereinafter designated as the “Principal,” a contract for the work described as follows:

Cahuilla Hills Park Improvements 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 August 28, 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 One Million Forty-Nine Thousand Four Hundred Eighty-Five Dollars and 79/100, ($1,049,485.79) 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 1046
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]
1047
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.
1048
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1049
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1050
1051
1052
1053
1054
1055
1056
1057
1058
1059
1060
1061
1062
1063
1064
STATE
HWY 74

P ITAHAYA ST
TOWN
CENTER
SHADOW

MOUNTAIN DR
PAIN T
E
R S
PATH

EL P ASEO

PARK VIEW DR
SA
N
P
AB
LO
AV
E

FRED WARING DR

HAYSTACK RD

EL PASEO

EDGEHILL
DR

SAN GORGONIO WAY
STATE
HWY
111

MONTEREY
AVE

GRAPEVI NE ST

BURSERA WAY
VISTA
PASEO
WAY

CAHUILLA
HILLS
PARK
STATE
HWY 74

P ITAHAYA ST
TOWN
CENTER
SHADOW

MOUNTAIN DR
PAIN T
E
R S
PATH

EL P ASEO

PARK VIEW DR
SA
N
P
AB
LO
AV
E

FRED WARING DR

HAYSTACK RD

EL PASEO

EDGEHILL
DR

SAN GORGONIO WAY
STATE
HWY
111

MONTEREY
AVE

GRAPEVI NE ST

BURSERA WAY
VISTA
PASEO
WAY

CAHUILLA
HILLS
PARK
0 0.25 0.5
Miles
City of Palm Desert
1065
1066
1067
1068

Page 1 of 4 ends

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Neal Ennis, Project Manager
SUBJECT: AWARD A CONSTRUCTION CONTRACT TO ALL AMERICAN BUILDING

SERVICES FOR THE UNIVERSITY PARK DRIVE ON-STREET PARKING IMPROVEMENTS PROJECT (CPL00004) – 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 Manager to submit a determination of Categorical Exemption.

2. Award a construction contract to All American Building Services, of Santa Clarita, California, for the University Park On-Street Parking Project in the amount of $417,214.69, plus a $41,721.47 contingency for unforeseen expenses.

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

4. 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).

5. 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.

BACKGROUND/ANALYSIS:

University Dog Park is a 2.3-acre public park located at University Park Drive and College Drive.

The park includes separate fenced areas for large and small dogs, a water fountain, picnic pavilions and restrooms. It currently provides 13 parking spaces, including two Americans with Disabilities Act (ADA)-compliant stalls.

In 2023, following resident complaints regarding insufficient parking, the City Council directed staff to conduct a parking assessment study in the vicinity of the park. The study was intended to identify alternatives to increase parking capacity.

Appointed Body Recommendation:

On January 17, 2024, the Active Transportation Program (ATP) City Council Subcommittee reviewed the study findings and considered three design alternatives. The Subcommittee favored ‘Alternative 3’ presented in this staff report.

On March 14, 2024, the City Council held a study session to review the traffic assessment findings for University Dog Park and evaluate parking improvement concepts. Staff presented three concepts.
1069
City of Palm Desert
Award Construction Contract for University Park Drive On-Street Parking Improvements Project

Page 2 of 4 ends

 Alternative 1: Parking Pocket on College Drive adding 8 parking spaces at an estimated cost of $88,800 per space.
 Alternative 2: Parking Area West of the Dog Park adding 34 parking spaces at an estimated cost of $62,900 per space.
 Alternative 3: Street Parking on University Park Drive adding 42 parking spaces at an estimated cost of $10,500 per space.

Based on City Council direction, staff worked with Kimley-Horn and Associates to develop the design for Alternative 3, which removes the existing median and bike lane, diverts the bike lane onto the sidewalk, and creates parking on both sides of University Park Drive. This option maximizes parking capacity at a lower unit cost and is appropriate for the posted 35 MPH speed limit.

Project Description:

The project will modify the existing median on University Park Drive and improve the parking lot at University Dog Park to provide additional parking, enhance pedestrian safety, and meet ADA accessibility standards. Improvements include construction of an ADA-compliant parking area, sidewalk, and crosswalk equipped with Rectangular Rapid Flashing Beacons (RRFBs) for increased visibility.

Key elements of the project are as follows:
 Addition of on-street parking to accommodate up to 42 vehicles  Construction of five ADA-compliant curb ramps
 Reconstruction of approximately 2,000 square feet of sidewalk  Removal of the landscaped median island
 Pavement and roadway realignment in place of the removed median  Installation of a marked crosswalk with RRFB.
 Pedestrian-scale lighting to improve nighttime crossing visibility and safety These improvements will increase parking capacity for park users while enhancing accessibility and pedestrian safety in the surrounding area.

Environment Review:

Staff recommends 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 improvements to, and the reconstruction or rehabilitation of, existing facilities other than buildings.

Request for Bids:

The project was advertised via the City’s bid portal, OpenGov, (Project ID# 2025-IFB-199), and seven bids were received electronically on August 7, 2025:

Contractor Location Base Bid
All American Building Services Santa Clarita, CA $417,214.69 1070
City of Palm Desert
Award Construction Contract for University Park Drive On-Street Parking Improvements Project

Page 3 of 4 ends

LC Paving & Sealing San Marcos, CA $434,921.50
Granite Construction Company Indio, CA $440,044.00
Inland Highway Services Corporation Fontana, CA $449,773.50 Leonida Builders, Inc. Fontana, CA $472,754.00
Van Engineering, Inc. Wildomar, CA $500,884.50
Tri-Star Contracting II, Inc. Desert Hot Springs, CA $516,473.40 The Engineer’s Estimate for the project was $546,152. All American Building Services submitted a bid of $417,214.69, which falls within the budget. Staff has reviewed the bid documents and determined that the bid submitted by All American Building Services is responsive, responsible, and in compliance with all specifications, including all required forms. Based on this review, staff recommends awarding the construction contract to All American Building Services.

Legal Review:

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

FINANCIAL IMPACT:

Funding for this project’s construction is provided in the approved FY 2025-26 Financial Plan and included in the Five-Year Capital Improvement Project (CIP) list, utilizing Gas Tax funds from account 2114134-4400200. This action will have no fiscal impact on the General Fund.

Authorized Budgets Date
Authorized Total Measure AFund 213
Gas Tax
Fund 211
Eng & Design Budget FY23/24 5/23/2024 85,017.50 85,017.50 Construction Budget FY25/26 7/1/2025 650,000.00 650,000.00 Total Authorized Budget to Date 735,017.50 85,017.50 650,000.00 Authorized Expenditures Date
Authorized Total
Measure A
Fund 213
Gas Tax
Fund 211
Kimley-Horn & Assoc.
(Eng & Design #C41380) 5/23/2024 85,017.50 85,017.50
Total Authorized Expenditures to Date 85,017.50 85,017.50 - Construction: All American Building Services* 417,214.69 417,214.69 Contingency 10%* 41,721.47 41,721.47
Remaining Project Budget Available 191,063.84 - 191,063.84 *This request
Any remaining project funds available upon completion of the project will be reallocated to other eligible projects.

ATTACHMENTS:

1. Construction Contract
1071
City of Palm Desert
Award Construction Contract for University Park Drive On-Street Parking Improvements Project

Page 4 of 4 ends

2. Contractor Bid

3. Payment and Performance Bonds Template

4. CEQA Notice of Exemption

5. Vicinity Map

6. Project Overlay

7. ATP, Study Session Presentation
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CITY OF PALM DESERT

CONTRACT FOR CONSTRUCTION
This Agreement is made and entered into this 28th day of August, 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 All American Building Services, a Corporation, with its principal place of business at PO Box 802586, Santa Clarita, CA 91380 ("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:

University Park Drive On-Street Parking Improvements
Project No. CPL00004
(hereinafter referred to as “the Project”).

The Removal and Replacement of concrete sidewalk panels, ADA, ramps, crosswalk installation RRFB signage, paving, and striping improvements.

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 Four Hundred Seventeen Thousand Two Hundred Fourteen Dollars and 69/100 ($417,214.69). 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 of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages.

Accordingly, Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as 1073
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fixed and liquidated damages the sum of One Thousand Dollars ($1,000) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule, or Project milestones established pursuant to the Contract.

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.

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 1074
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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 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 1075
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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:

A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;
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(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.

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 1077
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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 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. 1078
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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.

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. 1079
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19. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

ARTICLE 8. PREVAILING WAGES.

Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the 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 BUILDING SERVICES
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

ALL AMERICAN BUILDING SERVICES, A

CORPORATION
By:

Anthony Innabi
President
By:

Anthony Innabi
Treasurer
CLSB# 921499 Class A General
Contractor’s License Number and
Classification
DIR# 1000790148
DIR Registration Number (if applicable)
City Clerk QC: _____
Contracts QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
_____
Bonds
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City of Palm Desert
CP - Capital Improvement Projects
Jess Culpeper, Director of Capital Projects
73-510 Fred Waring Drive, Palm Desert, CA 92260
[ALL AMERICAN BUILDING SERVICES] RESPONSE DOCUMENT REPORT IFB No. 2025-IFB-199
University Park Drive On-Street Parking Improvements
RESPONSE DEADLINE: August 7, 2025 at 3:00 pm
Report Generated: Tuesday, August 19, 2025
ALL AMERICAN BUILDING SERVICES Response

CONTACT INFORMATION
Company:

ALL AMERICAN BUILDING SERVICES
Email:
[email protected]
Contact:

ANTHONY INNABI
Address:

PO Box 802586
SANTA CLARITA, CA 91380
Phone:
(323) 422-6013
Website:

ALLAMERICANREBUILD.COM
Submission Date:

Aug 7, 2025 10:56 AM (Pacific Time)
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ADDENDA CONFIRMATION
Addendum #1
Confirmed Aug 4, 2025 11:45 AM by ANTHONY INNABI
Addendum #2
Confirmed Aug 4, 2025 11:45 AM by ANTHONY INNABI
Addendum #3
Confirmed Aug 4, 2025 11:46 AM by ANTHONY INNABI

QUESTIONNAIRE

1. BID ACKNOWLEDGMENT*
To 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.

1. In response to the Contract Documents for project number CPL00004and in accordance with the accompanying Instructions to Bidders, the undersigned hereby proposes to the City to furnish all labor, technical and professional services, supervision, materials and equipment, other than materials and equipment specified as furnished by the City, and to perform all operations necessary and required to construct the Project in accordance with the provisions of the Contract Documents and any addenda thereto, and at the prices stated opposite the respective items set forth in the Bid Schedule.

2. This Bid constitutes a firm offer to the City which cannot be withdrawn for 90 calendar days after the date set for opening of Bids, or until a Contract is executed by the City and a third party, whichever is earlier.

3. The undersigned certifies that it has examined and is fully familiar with all of the provisions of the Contract Documents and any addenda thereto; that it has carefully checked all of the words and figures shown in its Bid Schedule; that it has carefully reviewed the accuracy of all statements in this Bid and attachments hereto; and that it understands and agrees that the City will not be responsible for any errors or omissions on the part of the undersigned in preparing this Bid. 1084
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4. If awarded a Contract, the undersigned agrees to execute and deliver to the City within ten (10) Days after date of receipt of Notice of Award, a signed Contract and the necessary Performance Bond, Payment Bond, and Certificates of Insurance and Endorsements.

5. All Bid Forms, which have been completed and executed by undersigned Bidder, are incorporated by this reference and made a part of this Bid.

6. The undersigned is hereby representing that it is and will be properly licensed both at the time that it submits a Bid as well as at the time the Contract is awarded, if the Contract is awarded to the undersigned.

A. If Individual Contractor. Undersigned certifies that it is now licensed in accordance with the provisions of the Contractor's License Law of the State of California; or
B. If Joint Venture. Undersigned certifies that the individual members of the joint venture are now licensed in accordance with the provisions of the Contractor's License Law of the State of California.

I hereby certify under penalty of perjury under the laws of the State of California that all of the information submitted in connection with this Bid and all of the representations made herein are true and correct.

Confirmed

2. BID SCHEDULE*
IMPORTANT:

THE ELECTRONIC #BID SCHEDULE MUST BE COMPLETED BY EACH BIDDER AND PROPERLY SUBMITTED ON OPENGOV PROCUREMENT.

FAILURE TO COMPLETE THE BID SCHEDULE WILL RESULT IN AN INCOMPLETE AND NON-RESPONSIVE BID.

THE ELECTRONIC BID SCHEDULE WILL BE INCORPORATED INTO THE CONTRACT DOCUMENTS.

The costs for any Work shown or required in the Contract Documents, but not specifically identified as a line item are to be included in the related line items and no additional compensation shall be due to Contractor for the performance of the Work. All blank spaces appearing in the Electronic Bid Schedule must be filled in. Failure to fill in any blank spaces may render the bid non-responsive. 1085
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The estimated quantities for Unit Price items are for purposes of comparing Bids only and the City makes no representation that the actual quantities of work performed will not vary from the estimates. Final payment shall be determined by the Engineer from measured quantities of work performed based upon the Unit Price.

If the Contract Documents specify Alternate Bid items, the City can choose to include any, all, or none of the Alternate Bid items in the Work. If the City selects any of the Alternate Bid items, the corresponding Alternate Bid prices shall be added to or deducted from Base Bid Price for the Work. The City can award/select Alternate Bid items at any time(s).

I certify that I have read, understood the above statement.

Confirmed

3. BID GUARANTEE*
IF SUBMITTING AN ORIGINAL BID BOND: Please download the Bid Bond Form under #ATTACHMENTS, and Mail or hand deliver in a sealed and labeled envelope including the Project Number, Project Title, and Project Due Date visible on the outside of the envelope to the City Clerk's Office located at 73-510 Fred Waring Drive, Palm Desert, CA 92260 before the bid submittal deadline.

IF SUBMITTING CASH OR CASHIER'S CHECK: Mail or hand deliver in a sealed and labeled envelope including the Project Number, Project Title, and Project Due Date visible on the outside of the envelope to the City Clerk's Office located at 73-510 Fred Waring Drive, Palm Desert, CA 92260 before the bid submittal deadline.

IF SUBMITTING AN E-BID BOND: follow E-Bid Bond instructions.

E-Bid Bond via Surety2000 (submitted electronically under E-Bid Bond)

4. E-Bid Bond
Please enter your Bid Bond information from Surety2000 below ONLY IF YOU ARE NOT SUBMITTING A HARD COPY BID BOND, CASH, OR CASHIER'S CHECK.

Bond ID: SCA0807767016
Vendor ID: 19445
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5. Enter Surety Company "Name" who Issued Bid Guarantee * This information will be verified against the California Department of Insurance Website.

The Ohio Casualty Company
Click to Verify Value will be copied to clipboard

6. DESIGNATION OF SUBCONTRACTORS*
Please download the below documents, complete, and upload. • DESIGNATION_OF_SUBCONTRACTO...

DESIGNATION_OF_SUBCONTRACTORS.pdf

7. BIDDER INFORMATION AND EXPERIENCE FORM*
Please download the below documents, complete, and upload. • BIDDER_INFORMATION_AND_EXPE...

BIDDER_INFORMATION_AND_EXPERIENCE_FORM.pdf

8. 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 1087
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thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.

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

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

Confirmed

9. PUBLIC WORKS CONTRACTOR DIR REGISTRATION CERTIFICATION* Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See http://www.dir.ca.gov/Public-Works/PublicWorks.html for additional information.

No bid will be accepted, nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work.

Bidder hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relations.

Unless Bidder is exempt pursuant to the small project exemption, Bidder further acknowledges:

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

2. Bidder shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project.

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

Confirmed
1088
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10. 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. 1000790148
Click to Verify Value will be copied to clipboard

11. Enter your valid CA Contractors State License Board (CSLB) number* Please enter your License Number here. This will be verified against the state database. 921499
Click to Verify Value will be copied to clipboard

12. CONTRACTOR’S CERTIFICATE REGARDING WORKERS’ COMPENSATION* I am aware of the provisions of section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Contract.

Confirmed

13. Fleet Compliance Certification*
I hereby acknowledge that I have reviewed the California Air Resources Board’s policies, rules and regulations and are familiar with the requirements of Title 13, California Code of Regulations, Division 3, Chapter 9, effective on January 1, 2024 (the “Regulation”). I hereby certify, subject to penalty for perjury, that the option checked below relating to the Bidder’s fleet, and/or that of their subcontractor(s) (“Fleet”) is true and correct:

The Fleet is subject to the requirements of the Regulation, and the appropriate Certificate(s) of Reported Compliance have been attached hereto.

14. Fleet Compliance Documentation*
Please attach supporting documentation for the selection made in the above item. 1089
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CARB_Cert_2026.pdf

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

16. Type your Legal Company Name Here*
State your Company's Name Here. This will be verified against the California Secretary of State's Website.

ALL AMERICAN BUILDING SERVICES
Click to Verify Value will be copied to clipboard

17. How many years has Bidder’s organization been in business as a Contractor? * 17 18. List the Signatory(s) Authorized to Sign and Bind an Agreement.* (If two (2) signatures are required, include the following information for both signatories)

1. Full Name

2. Title

3. Physical Business Address

4. Email Address

5. Phone Number
Corporation (C-Corp, S,B, Stock etc.): Requires two signatures—both from authorized officers (e.g., President, Vice President, Secretary, or Treasurer). If signing authority is not held by a President, Vice President, Treasurer, or Secretary, a Corporate Resolution or Article of Authority is needed to verify the signer’s authorization.

LLC: Usually requires one signature from an authorized member or manager. For significant contracts (e.g., over $50,000 for construction or over $25,000 for service agreements), additional approvals or signatures may be required. 1090
[ALL AMERICAN BUILDING SERVICES] RESPONSE DOCUMENT REPORT IFB No. 2025-IFB-199
University Park Drive On-Street Parking Improvements
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Sole Proprietorship, Non-Profit, Single LLC: Only the one signature is necessary.

Anthony Innabi, President, PO Box 802586 Santa Clarita, CA 91380, [email protected], 323-422-6013 Anthony Innabi, Treasurer, PO Box 802586 Santa Clarita, CA 91380, [email protected], 323-422-6013

19. Nondiscrimination Certification*
The City of Palm Desert is committed to promoting equal opportunity in its contracting activities. We ensure that all individuals seeking to do business with the city treat contractors, subcontractors, and employees fairly, without discrimination based on race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, sexual orientation, or membership in any other protected class.

By clicking the confirmation box below, the vendor certifies that they have read the code and agree to comply with its requirements.

Failure to comply may result in termination of any agreement entered into with the vendor.

Confirmed

PRICE TABLES

BASE BID SCHEDULE
Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 Mobilization 1 LS $32,000.00 $32,000.00
2 Project Traffic Control 1 LS $13,000.00 $13,000.00

3.1 Roadway Grading and Excavation 4,500 SF $7.00 $31,500.00 1091
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University Park Drive On-Street Parking Improvements
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Line Item Description Quantity Unit of
Measure
Unit Cost Total

3.2 Remove Vegetation, Debris, Hardscaping, and Boulders in Conflict with plans, (median island, and future crosswalk)
1 EA $8,000.00 $8,000.00

3.3 Remove, Cap, Restore Irrigation 1 LS $17,000.00 $17,000.00

3.4 Remove Existing Curb 800 LF $7.00 $5,600.00

3.4A Remove Existing Curb and Gutter 200 LF $7.00 $1,400.00

3.4B Remove Existing Sidewalk 2,000 SF $7.00 $14,000.00

3.5 Sawcut and Remove Existing Asphalt Concrete 5,000 SF $7.00 $35,000.00

3.6 Cold Mill Asphalt Concrete Pavement 2,500 SF $2.29 $5,725.00

3.7 Construct 5" Asphalt Concrete Pavement 150 TON $198.00 $29,700.00

3.7A Construct 10" Asphalt Concrete Pavement 65 TON $265.25 $17,241.25

3.7B Fill in 3" AC Crack with Hot Mix AC Fines, 20 LF $95.00 $1,900.00

3.7C Construct Asphalt Concrete Variable Overlay (crosswalk, parking area) 2,500 SF $3.25 $8,125.00

3.8 Construct 10" Class II Aggregate Base 150 CY $157.25 $23,587.50

3.9 Construct Concrete Sidewalk - include extension from STA 12+22.62 to STA 11+46.75 AND STA 11+.06 to STA 10+64.
2,000 SF $21.93 $43,860.00

3.10 Construct 8" Curb and Gutter - Type 1 160 LF $67.00 $10,720.00

3.10A Construct 6" Curb - Type 2 260 LF $60.00 $15,600.00 1092
[ALL AMERICAN BUILDING SERVICES] RESPONSE DOCUMENT REPORT IFB No. 2025-IFB-199
University Park Drive On-Street Parking Improvements
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Line Item Description Quantity Unit of
Measure
Unit Cost Total

3.10B Construct Retaining Curb - to include extension from STA 12+22.62 to STA 11+46.75 AND STA 11+.06 to STA 10+64.
213 LF $62.00 $13,206.00

3.11 Construct Curb Ramp 5 EA $3,100.00 $15,500.00

4.1 Remove Traffic Stripes and Pavement Marking and Pavement Markers 1 LS $16,375.00 $16,375.00

4.2A Pavement Markings Per Caltrans Standard Plans A24C 2 EA $125.00 $250.00

4.2B Install Type IV (L) Arrow Per Caltrans Standard Plans A24A 4 EA $75.00 $300.00

4.2C Install Type IV (R) Arrow Per Caltrans Standard Plans A24A 2 EA $75.00 $150.00

4.2D Install Pavement Marking as Shown Per Caltrans Standard Plans A24D 100 SF $12.00 $1,200.00

4.2E Install Pavement Marking as Shown Per Caltrans Standard Plans A24G 25 SF $15.00 $375.00

4.2F Install 12 Foot Wide White Ladder Crosswalk Per Caltrans Standard Plans A24F 1 SF $3,275.00 $3,275.00

4.2G Install Detail 22 Per Caltrans Standard Plans A20A 250 LF $11.00 $2,750.00

4.2H Install Detail 29 Per Caltrans Standard Plans A20B 350 LF $22.00 $7,700.00

4.2I Install Detail 38 Per Caltrans Standard Plans A20C 250 LF $10.00 $2,500.00

4.2J Install Reb Curb Markings 1 LS $1,055.00 $1,055.00

4.2K Install 4" White Parallel Parking Striping 100 LF $12.00 $1,200.00

4.2L Install 4" White Parking Line as Shown Per Caltrans Standard Plans A90A 250 LF $12.00 $3,000.00 1093
[ALL AMERICAN BUILDING SERVICES] RESPONSE DOCUMENT REPORT IFB No. 2025-IFB-199
University Park Drive On-Street Parking Improvements
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Line Item Description Quantity Unit of
Measure
Unit Cost Total

4.2M Install 12" White Limit Line Pavement Marking as Shown Per Caltrans Standard Plan A24G
30 LF $15.00 $450.00

4.3 Detectable Warning Surface 1 LS $3,750.00 $3,750.00

4.4 Remove Existing Sign and Post 11 EA $250.00 $2,750.00

4.4A Remove Existing Sign on Post 1 EA $75.00 $75.00

4.4B New Sign 11 EA $375.00 $4,125.00

4.4C New Sign on Post or Pole 1 EA $175.00 $175.00

4.5 Wheel Stop 2 EA $125.00 $250.00

5.3 Foundations (Carmanah R920 Solar-Powered RRFB Complete ) 2 EA $600.00 $1,200.00

5.4 Standard, Steel Pedestals, and Posts - Furnish and Install Type 1-A Standard Pole 2 EA $500.00 $1,000.00

5.5 Traffic and Electrical Improvements (Furnish and Install Carmanah R920 SolarPowered RRFB Complete System or City approved Equal on New Pole and Foundation. Furnish and Install RRFB Assembly with Solar Engine) 1 LS $12,500.00 $12,500.00
6 Associated 1' T Cuts project wide Removals and Replacements 1 LS $8,144.94 $8,144.94 TOTAL $417,214.69
1094

Portion of
Work to be
done by
Subcontractor
Percent of
Total Base
Bid
Name of
Subcontractor
Location
of
Business
CSLB
Contractor
License
No.

DIR
Registration
Number
Asphalt and
Concrete
Installed

58.7% ABC
Resources, Inc
1527 W
State Street
Ontario, CA
91762-4034
538680 1000001608
1095
Portion of
Work to be
done by
Subcontractor
Percent of
Total Base
Bid
Name of
Subcontractor
Location
of
Business
CSLB
Contractor
License
No.

DIR
Registration
Number
(Attach additional sheets if necessary)
1096

1.0 Name of Bidder: ___________________________________________

2.0 Type, if Entity: ___________________________________________

3.0 Bidder Address: ___________________________________________ _____________________________________________________________ _____________________________________________________________ Facsimile Number Telephone Number
_____________________________________________________________ Email Address

4.0 How many years has Bidder’s organization been in business as a Contractor? ______________________________

5.0 How many years has Bidder’s organization been in business under its present name? ________________________

5.1 Under what other or former names has Bidder’s organization operated?_______________________________________________

6.0 If Bidder’s organization is a corporation, answer the following:

6.1 Date of Incorporation: ________________________________

6.2 State of Incorporation: ________________________________

6.3 President’s Name: ________________________________

6.4 Vice-President’s Name(s): ________________________________ ________________________________

6.5 Secretary’s Name: ________________________________

6.6 Treasurer’s Name: ________________________________
All American Building Services
Corporation
PO Box 802586 Santa Clarita, CA 91380
323-422-6013
[email protected]
17 6
Sole Propriter
5/2/2019
California
Anthony Innabi
Anthony Innabi
Anthony Innabi
1097

7.0 If an individual or a partnership, answer the following:

7.1 Date of Organization: ______________________________________

7.2 Name and address of all partners (state whether general or limited partnership):
___________________________________________________________ ___________________________________________________________ ___________________________________________________________

8.0 If other than a corporation or partnership, describe organization and name principals:
___________________________________________________________ ___________________________________________________________

9.0 What type of work does the Bidder normally perform with its own forces? ___________________________________________________________ ___________________________________________________________

10.0 Has Bidder ever failed to complete any work awarded to it? If so, note when, where, and why:
___________________________________________________________ ___________________________________________________________

11.0 Within the last five years, has any officer or partner of Bidder’s organization ever been an officer or partner of another organization when it failed to complete a contract? If so, attach a separate sheet of explanation:
___________________________________________________________ ___________________________________________________________

12.0 List Trade References:
___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Concrete, Asphalt, Electrical, Plumbing, Division 9 Interior Finishes NO
NO
1098
B. LIST OF CURRENT PROJECTS (BACKLOG)
[**Duplicate Page if needed for listing additional current projects.**] Project Client Reference
(agency
name/contact
info)
Description of
Bidder’s Work
Completion Date Cost of Bidder’s
Work
Colton Bike Path 1
City of Colton
Cristian Cruz
Office: (909) 370-5065
Direct: (909) 370-6138
E-mail: [email protected]
Bike Path &
Landscape improvement 9/2025 $650,450
EV Chargers Palm Springs Unified
School District EV Chargers Install 10/2025 $820,000
E. [email protected] |
P. 760.883.2710
1099
C. LIST OF COMPLETED PROJECTS – LAST THREE YEARS
[**Duplicate Page if needed for listing additional completed projects.**] Please include only those projects which are similar enough to demonstrate Bidder’s ability to perform the required Work.

Project Client Reference
(agency
name/contact
info)
Description of
Bidder’s Work
Completion Date Cost of Bidder’s
Work
See attached
1100
D. EXPERIENCE AND TECHNICAL QUALIFICATIONS QUESTIONNAIRE Personnel:

The Bidder shall identify the key personnel to be assigned to this project in a management, construction supervision or engineering capacity.

1. List each person’s job title, name and percent of time to be allocated to this project:

2. Summarize each person’s specialized education:

3. List each person’s years of construction experience relevant to the project:

4. Summarize such experience:

Cesar Angulo, Project Engineer
Abraham Ayala, Project Manager
1101
E. ADDITIONAL BIDDER’S STATEMENTS:

_______
If AABS is a lowest responsive bidder we can provide extensive resumes of all personell 1102
January 1, 2025
ABC RESOURCES, INC.
2/28/2026
131415
http://www.arb.ca.gov/doors/compliance_cert1.html
California Air Resources Board: Off-Road Diesel-Fueled Fleets Regulation file:///U:/Desktop/ABC%20Resources%20-California%20Air%20Reso... 1 of 1 2025-01-03, 11:22 AM
1103
1104
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 All American Building Services, (hereinafter referred to as the “Contractor”) an agreement for University Park Drive On-Street Parking Improvements (hereinafter referred to as the “Project”).

NOW, THEREFORE, we, All American Building Services, 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 Four Hundred Seventeen Thousand Two Hundred Fourteen Dollars and 69/100, ($417,214.69), 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.

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
1105
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.

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]
1106
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.
1107
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1108
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1109
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 August 28, 2025, has awarded to All American Building Services, hereinafter designated as the “Principal,” a contract for the work described as follows:

University Park Drive On-Street Parking Improvements (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 August 28, 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 Four Hundred Seventeen Thousand Two Hundred Fourteen Dollars and 69/100, ($417,214.69) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or 1110
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]
1111
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.
1112
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1113
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
1114
1115
1116
ge Drive
University
Park
Drive
n Dr
Baylor Way
University Dog
Park
University Park Drive
College Drive
College Drive
Duke
Drive
Cornell Way
Baylor Way
Gerald Ford Drive
College
Drive
University Park Drive
Oxford Lane
Cornell Way
University Park
East
Sources: Esri, TomTom, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community
University Park Drive
Median Removal
I
VICINITY MAP 1117
1118
1119
1120
University Dog Park:

Parking Study
Study Session
March 14, 2024
1121
Agenda
 Why Study Parking?
 Existing Conditions
 Alternatives
 Recommendation
1122
Why Study Parking?  Initially developed as a neighborhood park  Residential growth in North Sphere has increased demand on park space & parking  Existing: 1,890  Approved: 3,710  Under Review: 1,340  Under Construction: 770  5,800 additional homes in development
(308% increase over next 10 years)
Resident requests to increase parking
 Explore options to increase parking
1123
Existing Conditions
Parking Spaces
 13 parking spaces (2 ADA spaces)  On-street parking prohibited (both sides)
Roadway
 University Park Drive  46’ roadway (curb
-to-curb)
 11’ travel lane  6’ bike lane  12’ raised median island  35 MPH
 College Drive  46’ roadway (curb
-to-curb)
 11’ travel lane  6’ bike lane  12’ raised median island  40 MPH
1124
1125
1126
Alternative 1: Parking Pocket
 Construct a parking pocket
(south side of College Drive)
 Provides 8 additional parking spaces
(includes 1 ADA spaces)
 Requires retaining wall with fill to
bring parking area to street level
 Cost: $710,000 ($88,800 per space)
1127
Alternative 2: Parking Area
 Construct a parking area
(driveway into College Drive)
 Requires grading of slope
 Provides pedestrian access to
park from existing path
 Provides 34 additional parking spaces
(includes 2 ADA spaces)
 Cost: $2,140,000 ($62,900 per space)
1128
Alternative 3: Street Parking  Remove raised median on University Drive (Baylor Way & College Drive)
 Remove Class II bike lane & divert bicycle
traffic to sidewalk
 Realign travel lanes to accommodate left
& right turns (College Drive)
 Provides 42 additional parking spaces  Construct mid-block crosswalk with Rectangular Rapid Flashing Beacon (RRFB)
 Cost:  $440,000 (striped)
– $10,500 per space
 $694,000 (raised) - $16,500 per space
1129
Recommendation
Location Alternatives New
Spaces
Cost
Per
Space
Total
Cost
Alternative 1:

Parking Pocket
Build new parking pocket to
accommodate additional parking spaces
8 $88,800 $710,000
Alternative 2:

Parking Area
Build new parking area above park to
accommodate parking spaces
34 $62,900 $2,140,000
Alternative 3A:

Street Parking
(Raised
Crosswalk)
Remove existing median & bike lane,
construct crosswalk with RRFB, & divert
bike lane into sidewalk to accommodate
parking spaces on both sides of street
42 $16,500 $694,000
Alternative 3B:

Street Parking
(Striped
Crosswalk)
Remove existing median & bike lane,
construct crosswalk with RRFB, &
divert bike lane into sidewalk to
accommodate parking spaces on both
sides of street
42 $10,500 $440,000
1130
Questions
1131
El Paseo
Raised
Mid-block
Crossings
Study Session
March 14, 2024
1132
Agenda
 Why Study Crosswalks?
 Existing Raised Crosswalks
 Recommendations (Existing)
 New Crosswalk Alternatives
 Recommendations (New)
 Cost Summary 1133
Why Study Raised Crosswalks?
 Why study raised crosswalks on El Paseo?
 El Paseo merchants requested the City to install additional mid-block raised crosswalks on El Paseo (Highway 74 & San Pablo Avenue)  What locations are apart of the study?
 3 existing locations
 3 new locations
1134
 El Paseo (San Pablo Avenue & Larkspur Lane)
 El Paseo (Larkspur Lane & San Luis Rey Avenue)
 Larkspur Lane (El Paseo & Shadow Mountain Drive)
Rectangular
Rapid
Flashing
Beacons (RRFB)
Existing Raised Crosswalks
1135
1136
Recommendations:

Existing Raised Crosswalks
 Keep 3 existing raised crosswalks
 Replace the RRFB units at 3 locations
 Construct a sidewalk bulb-out
(Larkspur Lane)
1137
Recommendations: Existing Raised Crosswalks
Location Recommendation Cost
El Paseo (San Pablo Avenue to Larkspur Lane) • Retain existing raised crosswalk • Replace RRFB system
$130,000
El Paseo (Larkspur Lane to San Luis Rey Avenue) • Retain existing raised crosswalk • Replace RRFB system
$130,000
Larkspur Lane (El Paseo & Shadow Mountain Drive) • Construct a raised sidewalk bulb-out on east side & west sides
• Replace RRFB system
$240,000
Total: $500,000 1138
El Paseo
(Ocotillo Drive & Sage Lane)
El Paseo
(Sage Lane & Lupine Lane)
El Paseo
(Lupine Lane & San Pablo Avenue)
Raised Crosswalk
Alternatives Explored…
1139
Collision Data
 No vehicle-pedestrian collisions observed at location Field Observations
 Existing segment length is ~800 feet
 Located near restaurants & jewelry shop
 Connects to 2 pedestrian-only passages leading
to parking areas behind stores
 No driveways along this segment
Business Outreach
 Generally supportive
Recommendation
 Construct raised pedestrian crossing & RRFB system
 Cost: $470,000 (asphalt only)
Raised Mid-block Crosswalks:

El Paseo (Ocotillo Drive & Sage Lane)
El
Paseo
Ocotillo Drive
Sage Lane
1140
Collision Data
 No vehicle-pedestrian observed collisions at location Field Observations
 Existing segment length is ~675 feet
 Located near retails stores & 2 jewelry shop
 Connects to 2 pedestrian-only passages leading
to parking areas behind stores
 No driveways along this segment
Business Outreach
 Generally supportive
Recommendation
 Construct raised pedestrian crossing & RRFB system
 Cost: $470,000 (asphalt only)
Raised Mid-block Crosswalks:

El Paseo (Sage Lane & Lupine Lane) Sage Lane
Lupine Lane
El Paseo
1141
Collision Data
 No vehicle-pedestrian collisions observed at location Field Observations
 Existing segment length is ~510 feet
 Located near retails stores & coffee shop
 Connects shopping center into the interior
of the north side of block
 Terminates near existing driveway, which
creates potential for vehicle-pedestrian conflicts
Recommendation
 Not recommended
Raised Mid-block Crosswalks:

El Paseo (Lupine Lane & San Pablo Avenue) Lupine Lane
El Paseo
San Pablo Avenue
1142
Location Recommendation Cost
El Paseo
(Ocotillo Drive to Sage Lane)
Construct raised crosswalk w/RRFBs $470,000
El Paseo
(Sage Lane to Lupine Lane)
Construct raised crosswalk w/RRFBs $470,000
Total: $940,000
Improvement Cost
New High Visibility “Ladder” Type Striping (per location) $27,000 Brick Pavers (per location & 1 color design) $32,000
New Decorative “Flower” Art Paint (per new location) $34,000 Interlocking Pavers (per location & multi-color design) + $35,000 Additional Costs (Pavement Enhancements):

Base Costs (Asphalt Only):

Recommendations:

New Raised Crosswalks
1143
Interlocking Pavers
1144
1145
New or Existing
Location Location Asphalt Only
Ladder
Striping
Brick
Pavers
Decorative
Flower
Interlocking
Pavers
Existing El Paseo
(San Pablo Avenue to Larkspur Lane)
$130,000 $157,000 $162,000 $164,000 + $165,000
Existing El Paseo
(Larkspur Lane to San Luis Rey Avenue)
$130,000 $157,000 $162,000 $164,000 + $165,000
Existing Larkspur Lane
(El Paseo & Shadow Mountain Drive)
$240,000 $267,000 $272,000 $274,000 +$275,000
New El Paseo
(Ocotillo Drive to Sage Lane)
$470,000 $497,000 $502,000 $504,000 + $505,000
New El Paseo
(Sage Lane to Lupine Lane)
$470,000 $497,000 $502,000 $504,000 + $505,000
Total: $1,440,000 $1,575,000 $1,600,000 $1,610,000 + $1,615,000 1146
Questions
1147
1148

Page 1 of 3 ends

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Chris Gerry, Senior Project Manager
SUBJECT: APPROVE AMENDMENT NO. 1 TO C47800 WITH PAVEWEST, INC.,

FOR PARKING LOT REHABILITATION AND MAINTENANCE PROGRAM

AND TO APPROPRIATE FUNDING FOR CAPITAL IMPROVEMENTS AT
PRESIDENTS PLAZA III (PROJECT NO. MPL00002)
RECOMMENDATION:

1. Approve Amendment No. 1 to Agreement C47800 with PaveWest, Inc., for the Parking Lot Rehabilitation and Maintenance Program to increase annual compensation to $750,000.

2. Authorize transfer out/in in the amount of $365,000 from General Fund Facilities Reserve 1104199-4501000 to the Presidents’ Plaza III Account No. 2820000-3910000.

3. Authorize appropriation in the amount of $365,000 to the Presidents’ Plaza III Account No. 2824373-43320000.

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

5. Authorize the City Manager to execute the amendment, and any related documents necessary to effectuate this action, in accordance with Sections 3.30.160(I) and 3.30.170 of the Palm Desert Municipal Code.

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

BACKGROUND/ANALYSIS:

Overview:

The purpose of this action is to authorize funding within the Presidents Plaza III Property and Business Improvement District (District) to address deferred capital and maintenance needs.

Improvements will enhance safety, circulation, and appearance of the shared-use parking facilities. Council is also requested to amend the agreement with PaveWest to ensure these improvements can be completed without affecting other planned projects or unplanned needs.

By completing improvements ahead of the District’s next five-year renewal in Fiscal Year (FY) 2026-27, the City can address immediate needs while positioning for a reassessment process that aligns long-term maintenance and capital requirements with sustainable funding. This follows the strategy used during the 2022 renewal of PBID I-II.

District Background:

The District, established in 2001 under the State’s PBID Law, includes 16 commercial parcels located south of Palm Desert Drive at Highway 111 and north of El Paseo. Renewed every five years, the District provides a consistent funding mechanism for shared parking, lighting, landscaping, and circulation improvements.
1149
City of Palm Desert
President’s Plaza III

Page 2 of 3 ends

While assessments support routine maintenance, CPI adjustments have not kept pace with rising service costs. As a result, capital needs such as pavement rehabilitation, striping, and lighting upgrades have been deferred. Current funding shortfalls also prevent building adequate reserves for medium- and long-term needs.

Existing Conditions & Needs:

A recent traffic study confirmed that circulation, signage, and striping require upgrades, while pavement, lighting, and landscaping need targeted repairs. Photos of existing conditions are provided in Attachment 8. In FY 2024-25, direct costs exceeded revenues by about $40,000, a trend projected to continue.

Recommended Improvements:

Staff recommends the following targeted investments:

Improvement Estimated Cost
Asphalt, Striping & Signage $200,000
Concrete Repairs $50,000
Lighting $20,000
Landscaping $15,000
Subtotal $285,000
Reserve Fund Replenishment $80,000
Total $365,000
These improvements will restore functionality, improve appearance, and preserve the long-term usability of shared facilities.

Contract Amendment:

Staff recommends amending the City’s agreement with PaveWest by increasing the annual limit from $500,000 to $750,000. Staff believes it is in the best interest of the City to increase the compensation under the existing agreement with PaveWest in order to accomplish the City’s goal of completing Presidents Plaza III improvements without impacting other planned projects or unplanned needs. Staff recommends the City Council make a finding that entering into this Amendment No. 1 with PaveWest is in the best interest of the City pursuant to Palm Desert Municipal Code section 3.30.160(I). Amendment No. 1 is included as Attachment 3.

Next Steps:

Pavement and signage improvements are anticipated in September 2025, with remaining work to follow. Concurrently, staff will begin outreach to property owners ahead of the District’s FY 2026-27 renewal, when assessment levels will be re-evaluated to ensure sustainable funding.

Legal Review:

This report has been reviewed by the City Attorney’s Office. 1150
City of Palm Desert
President’s Plaza III

Page 3 of 3 ends

FINANCIAL IMPACT:

The total project budget, including replenishment of the District’s Reserve Fund, is estimated at $365,000. A transfer-in from the General Fund Facility Reserves will be necessary to support the appropriation necessary to fund and complete the improvements. The District’s available Reserve Fund has been nearly exhausted due to transfers made to offset maintenance shortfalls in FY’s 2024-25 and 2025-26. Assessment levels will be evaluated during the District’s next fiveyear renewal in FY 2026-27 to better align funding with long-term maintenance and capital requirements.

ATTACHMENTS:

1. Action Stamped Staff Report (August 22, 2024)

2. Agreement C47800

3. Amendment No. 1

4. Boundary Map

5. PBID Summary

6. Fiscal Year 2025/26 District Budget

7. Updated Striping and Signage Plan

8. Existing Conditions Photos
1151
1152

Page 1 of 2 ends

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 22, 2024
PREPARED BY: Bassam AL-Beitawi, Senior Project Manager
SUBJECT: AWARD A CONTRACT TO PAVEWEST, INC., FOR THE PARKING LOT REHABILITATION AND MAINTENANCE PROGRAM (PROJECT NO.

MPL00002)
RECOMMENDATION:

1. Award a contract to PaveWest, Inc., for the Parking Lot Rehabilitation and Maintenance Program in an amount not to exceed $368,000 for the first year and $500,000 annually thereafter for a one-year term with four one-year extensions.

2. Appropriate $97,742 from Presidents’ Plaza III – Parking Lot Maintenance Reserve Fund to Account No. 2824373-4332100.

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

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

BACKGROUND/ANALYSIS:

To maintain the safety and functionality of City-owned and managed parking lots, the City of Palm Desert (City) annually contracts for asphalt repairs, sealcoat, re-striping and other tasks.

As part of this commitment, on June 17, 2024, the City released a Request for Proposal (RFP) for the On-Call Parking Lot Maintenance Program (Program). This scope of work covers the larger sites listed below and may also extend to include smaller areas.  Civic Center Park  Ironwood Park
 Corporation Yard  Joe Mann Park
 Entrada del Paseo  Magnesia Falls Park
 Desert Willow  Presidents Plaza I-II
 Freedom Park  Presidents Plaza III
 Hovley Soccer Park  San Pablo Corridor
While past maintenance has been conducted on a project basis annually, City staff recommends moving forward on an on-call basis to provide greater flexibility and efficiency.

The City received three proposals by the deadline of July 17, 2024. The proposals were reviewed for clarity and conformance with the guidelines, content of the proposal, experience and performance, comments by references, and fee proposal (range of costs). The companies submitting proposals include:
1153
City of Palm Desert
ADA Parking Lot Rehab and Maintenance Program

Page 2 of 2 ends

Company Location
NGP, Inc. Perris, CA
PaveWest, Inc. Artesia, CA
We R Builders, Inc. Glendale, CA
A Selection Committee comprising of three staff members from the Public Works Department reviewed the proposals. Following an evaluation, the Committee proposes awarding a contract to PaveWest, Inc., (Contractor) for on-call services.

The Contractor also demonstrated conformance with the RFP by providing the content, including the format identified in the RFP. Furthermore, they provided the most competitive pricing, offering rates that were favorable when compared to other vendors. Almost all of the Contractor’s line items for seal coating, which constitutes the majority of the scope of work, were priced lower than those of the other two vendors. In addition, their firm staffing and key personnel have over 25 years of experience each in this field. Lastly, staff conducted a reference check on the Contractor, receiving commendable feedback on their past performance, including their responsiveness, work quality, and communication with their clients.

Legal Review:

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

FINANCIAL IMPACT:

The approved Capital Improvement Project (CIP) List for Fiscal Year 2024/25 includes $368,000 in Year 1 and $500,000 thereafter annually for year two through year five for Parking Lot Rehabilitation and Maintenance. Staff request an appropriation of $97,742 to Account No. 2824373-43321000 in order to include the Presidents Plaza III Parking Lot.

The table below notes the budget for Fiscal Year 2024-25:

Project Account Budget Expenses Appropriation
Requested
Parking Lot Rehabilitation &
Maintenance 1104313-4332000 $368,000 $368,000
Presidents Plaza III Parking Lot
Rehabilitation 2824373-4332100 $0.00 $97,742
Total $368,000 $465,742 ($97,742)
ATTACHMENTS:

1. Agreement

2. Payment and Performance Bonds

3. Proposal
1154
Contract No. C47800
1 Revised 01-2024
BBK 72500.00001\32374943.1

CITY OF PALM DESERT

MAINTENANCE SERVICES AGREEMENT

1. Parties and Date. 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 PaveWest, a Corporation, with its principal place of business at 11700 166th Street, Artesia, CA 90701 ("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:

On-Call Parking Lot Rehabilitation and Maintenance Program Project No. MPL00002
(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 August 22, 2024, to June 30, 2025, 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 four additional one-year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the 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 Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1155
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BBK 72500.00001\32374943.1
means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee.

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

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

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

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

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

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

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

Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1156
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BBK 72500.00001\32374943.1
to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

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

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

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

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

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

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

3.2.10.3 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall comply with all relevant provisions of City’s Minority Business Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1157
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BBK 72500.00001\32374943.1
Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

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

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

3.2.11 Insurance.

3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of City, and prior to commencement of the Services, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(B) Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1158
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coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
(a) A drop-down feature requiring the policy to
respond if any primary insurance that would
otherwise have applied proves to be uncollectible in
whole or in part for any reason;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall “follow form” to the underlying
primary policies.
(e) Insureds under primary policies shall also be
insureds under the umbrella or excess policies.
(D) Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives. (E) Fidelity Coverage. [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.

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.

Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1159
Contract No. C47800
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(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 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.

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(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.

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 Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1161
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subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.13 Bonds.

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

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

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

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

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

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3.2.15 Work Sites.

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

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

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

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

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

3.2.17 Warranty. Contractor warrants all Services under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1163
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warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed THREE HUNDRED SIXTY EIGHT THOUSAND Dollars ($368,000) for the first year and FIVE HUNDRED THOUSAND Dollars ($500,000) thereafter annually without written approval of the City Council or City Manager, as applicable.

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

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

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

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

3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1164
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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.

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.

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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: PAVEWEST, INC.
11700 166TH STREET
ARTESIA, CA 90701
ATTN: PAULINE DUVAL, PROJECT MANAGER
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: BASSAM AL-BEITAWI
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.2 Indemnification.

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

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

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

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

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

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

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

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

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

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

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

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

3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1167
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privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

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

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

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

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

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

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

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

BY AND BETWEEN THE CITY OF PALM DESERT
AND PAVEWEST, INC.

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

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
City Attorney

PAVEWEST, A CORPORATION
By:

Don Mangan
President
By:

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

SCOPE OF SERVICES
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EXHIBIT “B”

SCHEDULE OF SERVICES
The term of this Agreement shall be from August 22, 2024, to June 30, 2025, 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 Four (4) 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.

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EXHIBIT “C”

COMPENSATION
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EXHIBIT “C”

COMPENSATION
Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1175
Contract No. C47800
Exhibit “C”
Revised 01-2024
BBK 72500.00001\32374915.1
EXHIBIT “C”

COMPENSATION
Docusign Envelope ID: CEE2A9E9-3100-423D-B26F-D800BE71155B 1176
Contract No. C47800
AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY

OF PALM DESERT AND PAVEWEST

1. Parties and Date.

This Amendment No. 1 (“Amendment”) to the Maintenance Services Agreement is made and entered into as of August 28, 2025 by and between the City of Palm Desert, a municipal corporation organized and operating under the laws of the State of California (“City”), and PaveWest, a a Corporation with its principal place of business at 11700 166th Street, Artesia, CA 90701, Vendor. City and Vendor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

The Parties entered into an agreement titled Maintenance Services Agreement dated August 22, 2024 (“Agreement”).

Amendment Authority. This Amendment is authorized pursuant to Section 3.5.9 of the Maintenance Services Agreement.

3. Terms.

Amendment. The Agreement is hereby amended as follows:

Section 3.1.2 Term. The term of this Agreement shall be from July 1, 2025, through June 30, 2027, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two additional oneyear terms.

Section 3.3.1
Compensation.

Total compensation shall not exceed SEVEN HUNDRED FIFTY THOUSAND Dollars ($750,000) annually without written
approval of the City Council or City Manager, as applicable Continuing Effect of Agreement. Except as amended by this Amendment, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment.

Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment.

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

Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
1177
Contract No. ________
[Signatures on Following Page]

SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT BY AND BETWEEN THE

CITY OF PALM DESERT AND PAVEWEST
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

Clerk QC: ________
Contracts QC: ________
Insurance:
__________
Initial Review
___________
Final Approval

CITY OF PALM DESERT
By:

Chris Escobedo
Interim City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
City Attorney

PAVEWEST, A CORPORATION
By:

Don Mangan
President
By:

Jake Lewis
Secretary
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Contract No. ________
___________
Bonds
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2025/2026 President’s Plaza III Property and Business Improvement District Page 14 1181
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City of Palm Desert
Presidents’ Plaza Parking Lot III
Chronological History (2000 – Present)
Below is the chronological history of the Presidents’ Plaza Parking Lot III. Renewal dates for the Property and Business Improvement District (PBID) can be found on the following page.  Award Contract to Administer Property-based Business Improvement District (PBID) and design Parking Lot Reconstruction (November 9, 2000): City approved contract with MuniFinancial (now Willdan) in the amount of $17,860 for the administration of the potential PBID; note the PBID has not yet been formed at this time. City also approved a contract with Warner Engineering in the amount of $34,560 for the design of parking lot improvements.

Funding source was Unallocated Construction Tax funds. Staff report states, “The goals of this project are to obtain a public parking easement from the property owners and for a Business Improvement District to pay for ongoing maintenance of this public parking lot.”  Intent Meeting to Establish PBID and Authorize Solicitation of Design-build Proposals (April 12, 2001): City held intent meeting to establish PBID and approved various resolutions (01-46, 01-47, 01-48, 01-49). Minutes states, “…that petitions had been received from 13 of 16 property owners in support of the Business Improvement District… the project included the addition of approximately 108 parking spaces to the area, six different species of share trees, lighting, trash enclosures and recycle bins, enhanced drainage, and enhanced ADA parking stalls.” City also authorized staff to advertise and obtain design-build proposals for the parking lot reconstruction.
 Establish PBID (June 14, 2001): City held public hearing, approved various resolutions (01- 72, 01-73, 01-74, 01-75, 01-76) and held ballot vote (8-1) to establish PBID.  Award Design-Build Contract for Parking Lot Reconstruction (June 14, 2001): City awards design-build contract tor Dateland Construction in the amount of $1,041,735 in Unobligated General Fund Reserve for the reconstruction of the parking lot. Awarded same night as PBID establishment. City additionally approved two change orders bringing the total project amount to $1,072,337. Notice of Completion filed November 21, 2001.  Agency Assumes Responsibility for Project Costs (July 19, 2001): City and Agency approved resolutions (01-93, 422) approving payment by the Agency for all costs of the parking lot reconstruction. Parking lot is located within Project Area 1.  Award Construction Contract for Pavement Maintenance (September 22, 2005): City awards contract to Pacific Asphalt Services in the amount of $51,500 for slurry seal and repairs. City appropriated $29,567 from the President’s Plaza III Parking Lot Reserve Fund.

Notice of Completion filed January 12, 2006.
 Award Construction Contract for Pavement Maintenance (September 10, 2015): City approves construction contract with S2 Sealing and Striping in the amount of $64,990 for the City’s annual parking lot maintenance program, which includes Presidents’ Plaza III (1 of 5 locations selected). The work performed on Presidents’ Plaza III was paid for with funds from the PBID. Notice of Completion approved on June 9, 2016. 1183

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PBID Establishment & Renewal Dates
 PBID Established for 5 Years for 2001 - 2005 (June 14, 2001): Yes 88% No 12% o Approved Annual Assessment Levy
 July 31, 2002
 June 26, 2003
 June 24, 2004
 June 09, 2005
 Approved 5-Year District Renewal from 2006 - 2010 (June 8, 2006):Yes 79% No 21% o Approved Annual Assessment Levy
 June 28, 2007
 June 26, 2008
 June 11, 2009
 June 24, 2010
 Approved 5-Year Renewal from 2011 - 2015 (July 14, 2011): Yes 66% / No 34% o Approved Annual Assessment Levy
 June 28, 2012
 June 27, 2013
 June 26, 2014
 June 11, 2015
 Approved 5-Year Renewal from 2016 - 2020 (July 14, 2016): Yes 67% / No 33% o Approved Annual Assessment Levy
 July 13, 2017
 July 28, 2018
 June 13, 2019
 July 09, 2020
 Approved 5-Year Renewal from 2021 - 2025 (July 8, 2021): Yes 87% / No 13% o Approved Annual Assessment Levy
 July 14, 2022
 June 22, 2023
 June 27, 2024
 June 26, 2025
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2025/2026 President’s Plaza III Property and Business Improvement District Page 12 Maximum annual assessments for direct costs, district and county administration, and insurance are adjusted by 3% from the previous Fiscal Year for Fiscal Years 2021/2022 through 2025/2026. The PBID Advisory Board will determine the amount of any actual increase for those years which may not exceed 3% per year. (1) FY 2025/2026 Actual and Maximum Proposed Assessments are the same.

Sources: City of Palm Desert; Willdan Financial Services Table 4: Five Year Budget

Actual Proposed Assessment Maximum Proposed Assessment for Fiscal Years Budget Item FY 2025/2026 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 Direct Costs
Sweeping Services $7,014 $6,232 $6,419 $6,611 $6,810 $7,014 Landscape Contract Maintenance 7,891 7,011 7,221 7,438 7,661 7,891 Lighting Repair & Maintenance 2,104 1,870 1,926 1,983 2,043 2,104 Landscape Repair & Maintenance 6,137 5,453 5,616 5,785 5,959 6,137 Landscape Utilities - Water 3,507 3,116 3,209 3,306 3,405 3,507 Street Lighting Utilities - Electric 8,241 7,322 7,542 7,768 8,001 8,241 Landscape Utilities - Electric 877 779 802 826 851 877
Subtotal Direct Costs $35,771 $31,783 $32,735 $33,717 $34,730 $35,771 Indirect Costs
District Administration $6,137 $5,453 $5,616 $5,785 $5,959 $6,137 County Administration 114 101 104 107 110 114
Operating Reserve Fund Collection 1,000 1,000 1,000 1,000 1,000 1,000 Parking Lot Maintenance Fund Collection 6,200 6,200 6,200 6,200 6,200 6,200 Insurance 2,630 2,337 2,407 2,479 2,554 2,630
Subtotal Indirect Costs $16,080 $15,091 $15,327 $15,570 $15,824 $16,080 Levy Breakdown
Total District Costs $51,852 $46,873 $48,062 $49,287 $50,554 $51,852 Balance to Levy $51,852 $46,873 $48,062 $49,287 $50,554 $51,852 District Statistics
Total Parcels 16 16 16 16 16 16
Total Parcels To Levy 16 16 16 16 16 16
Total Parcels Square Footage 453,956 453,956 453,956 453,956 453,956 453,956 Levy Rate per Direct Costs per Sq Ft $0.0788 $0.0700 $0.0722 $0.0742 $0.0766 $0.0788 Levy Rate per Indirect Costs per Sq Ft $0.0354 $0.0332 $0.0338 $0.0342 $0.0348 $0.0354 Total Levy Rate per Square Foot $0.1142 $0.1032 $0.1058 $0.1086 $0.1114 $0.1142 Operating Reserve Fund Balance
Previous Balance $17,066 $13,066 $14,066 $15,066 $16,066 $17,066 Transfer In 1,000 1,000 1,000 1,000 1,000 1,000
Ending Balance $18,066 $14,066 $15,066 $16,066 $17,066 $18,066 Parking Lot Maintenance Fund Balance
Previous Balance $97,742 $72,942 $79,142 $85,342 $91,542 $97,742 Transfer In 6,200 6,200 6,200 6,200 6,200 6,200
Ending Balance $103,942 $79,142 $85,342 $91,542 $97,742 $103,942

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..\05_Aerials\Entire Parking Lot.jpg

PRESIDENT'S PLAZA III PROPERTY AND
BUSINESS IMPROVEMENT DISTRICT
ALTERNATIVE 1

NOT TO SCALE
1187
1188
Existing
Conditions:

Asphalt
1189
Existing
Conditions:

Landscaping
1190
Existing Conditions:

Concrete (Curb, Gutter & Sidewalk)
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Page 1 of 2 ends

PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Jessica Gonzales, Housing Manager
SUBJECT: RATIFY MODIFIED CONTRACT FOR AFFORDABLE HOUSING

COMPLIANCE AND PROPERTY MANAGEMENT SERVICES WITH

NATIONAL COMMUNITY RENAISSANCE
RECOMMENDATION:

Ratify modifications to the previously approved contract for affordable housing compliance and property management services for the Housing Authority-owned Properties with National Community Renaissance of California, a California public benefit corporation.

BACKGROUND/ANALYSIS:

On February 27, 2025, the Housing Authority Board (“Authority”) voted to enter into a Property Management Services contract (the “Agreement”) with National Community Renaissance of California (“National CORE”) to provide affordable housing compliance and property management services at Authority-owned properties (Contract No. HA48960). In connection with this action, the Board also executed an Addendum to the Agreement (the “Addendum”), which granted the Manager the right to enter the Properties during the Transition Period, from February 27, 2025, through July 1, 2025.

On May 22, 2025, the Authority Board approved a modified Agreement and Addendum, which included the following:
 Adjusted the commencement date of the Term from July 1, 2025, to June 1, 2025.  Reduced the monthly base fee retention amount from 10% to 3%.  Clarified language regarding overtime costs and the designation of certain personnel.

The Agreement required National CORE to secure specified insurance policies. Although National CORE’s insurance provider is able, in substance, to provide all necessary coverage, the insurance provider noted that the Agreement’s insurance provisions do not accurately reflect how the current coverage is structured. National CORE’s insurer required that the insurance language in the Agreement be revised to accurately reflect the structure of the liability coverage.

After further discussion with National CORE, the Authority, in consultation with its insurance provider California Joint Powers Insurance Authority (CJPIA) and Authority Special Counsel, agreed to the following changes:

Changes in
Agreement
Section
New Section
Added
Agreed Upon Modification
25 (c) 25 (h)
Sexual molestation coverage moved from Professional Liability (Errors & Omissions) policy to a new Commercial General Liability policy described in Section 25(h).
1193
Palm Desert Housing Authority
Approve Modified Contract with National CORE

Page 2 of 2 ends

Modifying the terms noted above accurately aligns National CORE’s insurance coverage with the required insurance coverage under the Agreement. To ensure the contract remained in effect without interruption, the Chairperson executed the Modified Agreement and Addendum with National CORE in advance.

Legal Review:

This report has been reviewed by the Authority’s special counsel, Richards Watson and Gershon.

Appointed Body Recommendation:

Not applicable. Resolution No. HA-93 provides that the Housing Commission shall review and make recommendations on all matters to come before the Authority except matters relating to the management and operations of the Authority.

FINANCIAL IMPACT:

There is no financial impact with this action.

ATTACHMENTS:

1. HA48960 Modified National CORE Contract

2. HA48960a Modified Addendum Agreement

3. Modified Management Services Agreement (Redlined)
24 25 (i)
Hazardous material and pollution coverage moved from Professional Liability (Errors & Omissions) policy to a new Pollution Liability policy described in Section 25(i).
1194
Contract No. HA48960
1 AGREEMENT FOR PROPERTY MANAGEMENT SERVICES
THIS AGREEMENT FOR PROPERTY MANAGEMENT SERVICES (this
“Agreement”) is made and entered into as of February 27, 2025, by and between the PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic having a principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, (the "Authority") and National Community Renaissance of California, a California Nonprofit Public Benefit Corporation, having a principal place of business at 9692 Haven Avenue, Suite 100, Rancho Cucamonga, California 91730 (the "Manager"). The Authority and the Manager may be referred to herein individually as a "Party" and collectively as the "Parties."

RECITALS
A. The Authority is a public body, corporate and politic, designated to be the operator of those certain real properties described on Exhibit A attached hereto and incorporated herein by this reference (the "Properties").

B. The Manager is engaged in the business of managing, maintaining, repairing, operating and leasing apartment buildings, and has represented to the Authority that the Manager is experienced and competent in said business.

C.The Authority and the Manager desire to enter into this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and of the mutual and dependent covenants contained in this Agreement, the Parties agree as follows:

1. Effective Date. The effective date of this Agreement (the "Effective Date") shall be June 1, 2025.

2. Appointment. The Authority hereby appoints the Manager and the Manager accepts appointment as the manager of the Properties on the terms and conditions set forth in this Agreement. The Parties acknowledge and agree that this Agreement is only a Management Agreement between the Parties, that the Parties are not joint venturers or partners, and that the Manager shall not be deemed to be an employee of the Authority. The Manager shall at all times be an independent contractor. The Manager agrees and covenants that it is not entitled to and will not take any tax position that is inconsistent with being a service provider to the Authority with respect to the Properties. By way of example only, the Manager hereby agrees and covenants that it will not claim any depreciation or amortization deduction, investment tax credit, or deduction for any payment of rent with respect to the Properties or any portion thereof.

Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1195
Contract No. HA48960
2 3. Professional Management Standards and the Administrative Plan. (a) The Manager agrees to exert its best efforts, to furnish the services of its organization, and to exercise the highest degree of professional competence in managing the Properties and to provide the Authority with the economic return consistent with proper management under the guidelines provided by Authority for affordable housing.
(b) The Manager shall manage, maintain, repair, operate and lease the Properties consistent with other multi-unit apartment complexes or similar type properties in the surrounding vicinity with comparable facilities and amenities. (c) Notwithstanding the authority granted to the Manager by this Agreement, the Manager agrees to abide by those standards and instructions that Authority may issue from time to time in connection with the Administrative Plan (the “Administrative Plan”). In the event of any inconsistency between this Agreement and the Administrative Plan, this Agreement shall control. The Administrative Plan adopted by Resolution No. HA-100, a copy of which shall be on file with the City Clerk, and any amendments thereto, include the statements of policies of the Authority for the purpose of property operations.
(d) The Manager hereby covenants and agrees to use the Manager's best efforts to actively manage, maintain, repair, operate and lease the Properties at their maximum potential, considering the Authority’s guidelines for affordable housing and the Administrative Plan. Manager will provide copies of any procedural manuals created for the purpose of implementing said Administrative Plan.
(e) The Manager shall be responsive to all tenant requests and concerns in a timely manner and shall make its best efforts to satisfy tenant requests and concerns at on-site offices. The Manager shall make its best efforts to notify Authority of tenant requests and concerns which are likely to be expressed by a tenant directly to the Authority. The Manager shall establish policies in order to address tenant requests and concerns and resolution in the event of a dispute in accordance with the Administrative Plan.
(f) Each of the Properties having sixteen (16) or more units shall have a member of the Manager’s management staff that shall live on-site, and serve as the caretaker for the Property at which they live (“On-site Caretaker”). The On-site Caretakers are expected to handle “routine after hours work” without having to incur overtime costs.

The Authority shall not be responsible for furnishings, equipment, postage, utilities, telephone, or such other ancillary costs of the on-site staff. The specific apartment shall be approved by the Authority prior to occupancy by staff. All other Properties having less than sixteen (16) units shall have a caretaker that lives on-site. All Properties will have an emergency contact available seven days a week, 24 hours a day. “Routine after hours work” shall include, without limitation, the following: (i) checks on security alarms or disturbances in common areas; (ii) assisting residents who are locked out of their units; Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1196
Contract No. HA48960
3 (iii) minor repairs of appliances, lighting or plumbing in units; (iv) maintenance of lighting in common areas; and (iv) locking and securing laundry rooms and other shared facilities.

4. Periodic Requirements
The Manager shall perform the following:
(a) Not less than once each week:
(i) A member of the Manager’s management staff will walk each property in its entirety to identify any items of concern that may or may not be visible from frequently traveled thoroughfare and prepare a detailed report of findings to be provided to Authority weekly.
(ii) Inspect all mechanical and physical systems located on the Properties and provide a report to Authority of said inspections monthly, or immediately if finding is of an emergency nature.
(b) Not less than once during every calendar month:
(i) Analyze the occupancy level of the Properties.
(ii) Analyze the financial condition of the Properties including, without limitation, cash flow, income, expenses, average turnover and turnover cost, and per unit average cost.
(iii) Provide Authority with a report regarding the status of maintenance and repair projects including those in process, upcoming, completed, and those that have not been completed or which are recommended and have not yet been implemented, and which are to be carried over to the next fiscal year. (c) Not less than once annually on or before February 1st:
(i) Prepare and deliver to Authority a comprehensive financial budget plan (Plan), described in Section 18, including reserve accounts where applicable, for the Properties for the upcoming fiscal year operations July 1 to June 30. (ii) Examine the general condition of the Properties, prepare a list of needed repairs and maintenance, and deliver that list to Authority along with the estimated costs for review. Once reviewed by Authority, incorporate estimations into the Plan. Said list will include all items identified by the Manager and be prioritized by the Manager in order of necessity. (i.e. Critical, Health and Safety, Necessary, Preventative, etc.)
(d) The Manager will notify Authority of work, supplies, services, maintenance, or repairs (emergency or otherwise) that were not included in the current operating budget but that may be necessary prior to the next operating budget year:

Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1197
Contract No. HA48960
4 (i) On or before December 1
st of each year, the Manager will
provide Authority a report of necessary budget adjustments to be made for work that was pre-approved by the Authority and estimates of anticipated work that is necessary and any justification.
(ii) In the event there are items that have not been included in the Plan or in Section 4(d)(i), above, then as necessary, the Manager will provide a report of those items by priority to the Authority. Authority staff will determine whether said requests should be forwarded as a special item to the Palm Desert Housing Authority Board (the “Authority Board”).
(e) On the basis of the information gathered pursuant to Sections (a)-(d) of this Section 4, the Manager shall recommend in writing amendments and updates to the Administrative Plan at least once annually on or before February 1st. The proposed amended Administrative Plan, together with any recommendations of the Manager for achieving maximum economic return of the Properties in light of the affordable housing requirements of the Properties, shall be submitted to the Authority. The Manager will continually review the Administrative Plan for the purpose of keeping the Authority advised of necessary or desirable changes.
(f) Crime-Free Multi Housing Program. Throughout the term of this Agreement, the Manager covenants and agrees to participate in and fully complete the City’s Crime-Free Multi Housing Program for the Properties. Evidence of compliance with this requirement shall be forwarded annually to the Authority within said twelve (12) month period.

5. Determination of Performance Criteria. The Parties have developed various performance criteria categories which will be used to evaluate the performance of the Manager. Such performance criteria categories are described on Exhibit G attached hereto and incorporated herein by reference.
(a) For each performance standard (as set forth in Request for Proposals, “Performance Standards”) that is not met in a given month by the Manager, the Authority may retain a portion of the monthly base fee owed to the Manager for the applicable month (the “Fee Retention”), as set forth below:
i. The Fee Retention shall be equal to 3% of the monthly base fee for each of the following performance standards that the Manager fails to meet in a given month: (i) Tenant Accounts Receivable, (ii) Vacancy rate, (iii) Vacant Unit Turn-around, and (iv) Work Order completion time. For the avoidance of doubt, when calculating the Fee Retention, a separate 3% retention shall apply for each performance standard that the Manager has failed to meet in a given month. For example, if the Manager fails to meet three of the above listed performance standards in a given month, the Fee Retention for that month would be 9%.

Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1198
Contract No. HA48960
5 ii. The Authority shall be entitled to retain 3% of the monthly base fee for each performance standard that the Manager has failed to meet in a given month until the Manager’s failure to meet such performance standard has been cured. A failure to meet a performance standard set forth in subsection (i) above shall be deemed cured when the cumulative average of performance of the applicable performance standard in the previous four month period is equal to the applicable performance standard. For example, if the Manager fails to achieve the then applicable vacancy rate standard in a given month, such failure to meet the vacancy rate standard shall not be deemed cured until the average of vacancy rate performance standards for a four month period is greater than or equal to the then-applicable vacancy rate standard. Once a Manager’s failure to meet a given performance standard has been cured, the Manager shall be entitled to payment of any fee retained for that performance standard.

6. Term. The Parties agree that the term ("Term") of this Agreement shall be for 61 months, commencing June 1, 2025, and ending June 30, 2030, and may be extended in accordance with the provisions of Section 28 below. Following the initial term of the contract, the Authority may opt to extend the contract for two (2) additional terms of three (3) years each term and expiring June 30, 2036. Contract extensions may be exercised contingent upon satisfactory performance and at the sole discretion of the Housing Authority, and in accordance with the provisions of Section 28 below.

Notwithstanding the foregoing, Manager shall have the right to enter the Properties during the Transition Period, pursuant to the terms of that certain Management Transition Addendum to Agreement for Property Management Services (the “Addendum”), attached hereto and incorporated herein by reference.

7. On-Site Management Office. The Authority shall provide adequate space on the Properties for a management office in accordance with Exhibit C attached hereto and incorporated herein by this reference. The Manager shall prepare and submit designs and budget for pre-approval to furnish and/or refurbish the management offices.

The Authority shall pay all approved expenses related to such office, including, but not limited to, furnishings, equipment, postage, office supplies, electricity, telephone, answering service, and security monitoring services, if any. The Authority shall retain ownership of all of the foregoing purchases.

8. Information on the Properties. The Manager acknowledges that it has been furnished with any available building plans and specifications as well as environmental reports, if available, for each of the Properties. The Manager also acknowledges that it has received copies of any available manufacturer's preventive maintenance schedules, guarantees and warranties pertinent to the fixtures, mechanical equipment, and appliances used in the operation of the Properties. The Manager shall maintain files for each of the Properties with current plans and specifications, environmental reports, manufacturer's preventive maintenance schedules, guarantees and warranties pertinent to any new installations, repairs, fixtures, appliances as well as any equipment, used in the operation of the Properties.

Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1199
Contract No. HA48960
6 9. Familiarity With Equipment. The Manager has become thoroughly familiar with the character, location, construction, layout, plan and operation of the Properties, and especially of the electrical, heating, plumbing, air conditioning and ventilation systems, and all other mechanical equipment, and the Manager shall maintain such familiarity.

10. Leasing. The Manager will act as the Authority's exclusive agent in leasing the dwelling units (each, a “Unit”, and collectively, the "Units") in the Properties. The following provisions will apply:
(a) The Manager shall use all reasonable efforts to keep the Properties leased by procuring tenants for the Properties and negotiating and executing on behalf of the Authority all leases for the Units. The Manager is authorized to enter into and execute initial leases with tenants for a minimum term of six (6) months and a maximum term of 12 months without the further written approval of the Authority. The Authority shall provide the Manager with income and rent guidelines for each of the Properties annually or as frequently as Department of Housing and Community Development (“HCD”) issues adjustments to the Riverside County Median Income levels. Such guidelines shall include a provision for utility allowances, if applicable, as set by the Riverside County Housing Authority which are in effect at the time the rents are established. Any lease for a shorter or longer period shall require the prior written consent of the Authority. The Manager shall also submit on or before the 10th of each month to the Authority copies of all notices terminating any tenant leases and all notices to vacate served on any tenant prior to the expiration of the lease term or after the expiration of the lease term if tenancy has converted to month-to-month, together with an explanation for the applicable notice. The Manager shall provide Authority with the equipment detail of each Unit annually for the purpose of determining the proper utility allowances by March 1st of each year. (b) The Manager shall lease all the Units in accordance with the terms of this Agreement, in compliance with all applicable federal, state, and local laws, in accordance with the Administrative Plan and any further direction from the Authority. (c) The Manager will be responsible for screening and selection of existing and prospective tenants in accordance with affordable housing guidelines and applicable federal, State and local laws. The Manager will follow the tenant selection policy described in the Administrative Plan and will show the Properties to all prospective tenants who qualify under the Authority’s affordable guidelines based on the waiting list policy and Unit availability.
(d) The Manager will prepare and verify eligibility certifications and recertifications in accordance with the guidelines established by the Authority. Rents will be adjusted pursuant to the Rent Setting Policy of the Authority adopted by Resolution HA-62, a copy of which shall be on file with the City Clerk, and any amendments thereto. (e) The Manager shall not decline to lease any Unit on the Properties to a prospective tenant, or otherwise discriminate, on the basis of race, color, national origin, ancestry, sex, gender, gender identity, gender expression, religion, physical or mental Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1200
Contract No. HA48960
7 disability, genetic information, marital status, familial status, sexual orientation, or any other classification then protected by law.
(f) Prior to executing any lease with a tenant, the Manager shall obtain the written consent of the prospective tenant to perform a complete background check, and shall perform same, including: (1) investigate the financial ability and history of the prospective tenant to pay rent, (2) perform necessary credit checks, (3) obtain references from employers and prior landlords, (4) verify the income of tenants as specified in the Administrative Plan, (5) verify all matters that are required to be checked by federal and/or state law, in accordance with the type of affordable funding involved, and (6) verify those matters that may and should be checked to ensure and promote the safety and welfare of all tenants of the Properties, the Manager’s staff and the public. A non-exclusive list of the required and permissive verifications, consent language and sampling of reputable online resources are set forth in Exhibit K, as may be modified by changes in applicable law. The Manager shall comply at all times with applicable federal, state and local law in all aspects of the tenant screening and application process.

11. Security Deposits. The Manager will collect, deposit, and disburse security deposits in accordance with the terms of each tenant's lease. The amount of each security deposit will be as specified in the Administrative Plan or applicable law. The collection and disbursement of security deposits will also be governed by the then applicable state and local laws. All tenant security deposits will be placed in one or more trust accounts separate from all other accounts and funds of the Manager and/or the Authority. The security account or accounts will be established at a bank as specified by the Authority whose deposits are insured by an agency of the United States government.

The security deposit account or accounts will be carried in the Authority's name and designated on record as “PDHA Security Deposit Account” and in addition, the Director of Finance of the City of Palm Desert (the "Director of Finance"), his/her designees, and up to four designated representatives of the Manager shall be included as signatories to the security deposit account or accounts. The balance of the security deposit account or accounts shall not be used to pay general operating expenses without the written consent of the Authority. Notwithstanding the foregoing, security deposits received must be documented and accounted for at all times and the Manager must comply with any applicable state and local laws concerning interest payments on security deposits. The number and structure of security deposit accounts is set forth in Exhibit D attached hereto and incorporated herein by this reference.

12. Collection of Rents and Other Receipts. The Manager will collect when due all rents, charges and other amounts receivable on the Authority's account in connection with the management, maintenance, repair, operation, and leasing of the Properties.

Such receipts (except for tenants’ security deposits, which will be handled as specified in Section 11 above) will be deposited in an account or accounts (the “General Operating Account”), separate from all other accounts and funds, of the Manager, at the bank as specified by the Authority whose deposits are insured by an agency of the United States Government. This account or accounts will be carried in the Authority's name and designated on record as “PDHA General Operating Account" and in addition, the Financial Operations Manager, the Director of Finance, his/her designees, and up to four designated representatives of the Manager shall be included as signatories to this Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1201
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8 account, or accounts. The number and structure of operating accounts is set forth in Exhibit D attached hereto and incorporated herein by this reference.

13. Enforcement of Leases. The Manager will ensure full compliance by each tenant with the terms of that tenant's lease. Involuntary termination of tenancies shall comply with all applicable laws and regulations. The Manager is designated as the Authority’s agent with the right to enter and take possession of the Units, in accordance with applicable law, and shall lawfully terminate any tenancy when, in the Manager's reasonable judgment, sufficient cause (including, but not limited to, nonpayment of rent) for such termination occurs under the terms of the tenant's lease. For this purpose, the Manager is authorized to consult with legal counsel qualified to bring unlawful detainer actions and to execute notices to vacate and judicial pleadings incident to such actions.

The Manager shall keep the Authority informed of such actions and follow such direction as the Authority may provide for the conduct of any such action. Attorney’s fees and costs incurred in connection with unlawful detainer actions will be paid out of the General Operating Account as an expense of the Properties. Notwithstanding the foregoing, the Manager is at all times ultimately responsible for the enforcement of leases. Payment by the Authority of legal fees and costs incurred in connection with unlawful detainer actions does not create an attorney-client relationship between the Authority and the Manager’s unlawful detainer legal counsel.

14. Maintenance and Repair. The Manager will maintain the Properties in good, clean, safe and sanitary condition in accordance with the Administrative Plan and local codes and in a condition acceptable to the Authority at all times. This will include, but not be limited to, cleaning, painting, plumbing, grounds care, and such other maintenance and repair works as may be necessary, subject to any limitations imposed by the Authority in addition to those contained herein. The Manager will ensure all vendors maintain the required licensing, insurance, permits, and approvals for any work performed in accordance with this Agreement, as well as all local, state, and federal codes and regulations. The Manager will maintain an on-site property entry log for all vendors.

Incident thereto, the following provisions will apply:
(a) The Manager will complete preventative maintenance activities in the most cost effective and efficient manner as possible, while maintaining the quality of the Properties.
(b) The Manager will contract in compliance with Section 21 hereof with qualified independent contractors for the maintenance and repair of roofs, air-conditioning and heating systems, and for extraordinary repairs beyond the capability of regular maintenance employees.
(c) The Manager is aware of the requirements of California Labor Code Section 1720 et seq., 1770 et seq., and 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. The projects performed under this contract may be subject to compliance monitoring and enforcement by the Department of Industrial Relations. If the services are Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1202
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9 being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, the Manager agrees to fully comply with such Prevailing Wage Laws, including but not limited to requirements related to public works contractor registration and maintenance and submittal of certified payroll records. The Authority shall provide the Manager with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. The Manager shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the services and shall post copies of the Manager’s principal place of business and at the project site. The Manager shall defend, indemnify, and hold the Authority, its elected official officers, employees, and agents free and harmless from any claim or liability arising of any failure or alleged failure to comply with the Prevailing Wage Laws. (d) The Manager will systematically receive and investigate all service requests from tenants, take such action thereon as may be warranted and will keep records of the same. Service requests will be addressed within four working days; provided, however, emergency requests will be received and serviced on a 24-hour basis.

The Manager shall promptly investigate and respond to serious complaints as appropriate, and shall comply with all applicable federal and state laws in connection with same, including but not limited to the requirements of the Fair Employment and Housing Act and other applicable fair housing laws, and shall promptly report such complaints and the Manager’s response thereto to the Authority. The Manager shall advise tenants to report to law enforcement all complaints involving actual or threatened criminal activity.

The Manager shall provide the Authority with a monthly summary of all serious complaints received by the Manager. This summary shall include a brief description of each complaint and the Manager’s response thereto.
(e) The Manager is authorized to purchase while complying with the provisions of Section 21, on behalf of the Authority, all materials, equipment, tools, appliances, supplies and services necessary for proper maintenance and repair. The Authority shall retain ownership of all said materials, equipment, tools, appliances and supplies.
(f) Notwithstanding any of the foregoing provisions, the prior written approval of the Authority will be required for any maintenance or repair project in which the overall cost is expected to exceed $15,000 for labor, materials, and/or otherwise in connection with the maintenance and repair of the Properties. This limitation does not apply to recurring expenses within the limits of the operating budget or to emergency repairs involving manifest danger to persons or property, or that are required to avoid suspension of any necessary service to the Properties. In the latter event, the Manager will inform the Authority in writing of the facts as promptly as possible. For purposes herein, “recurring expenses” shall include utilities, pest control, laundry services, pool services, courtesy patrol, regulatory permits, and vermin extermination. (g) The Manager shall enter into all service contracts (such as pool maintenance/repair, laundry, vermin extermination and landscape maintenance) in accordance with Section 21 and maintain all required permits and approvals on equipment, pools, facilities, etc. for each of the Properties.

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10 (h) The Manager shall not undertake any work of construction or any work which would modify or change the exterior of any building or grounds.

15. Utilities and Services. The Manager will make arrangements for water, electricity, gas, sewage and trash disposal, telephone and cable service for the Properties. The Manager will enter into such contracts as may be necessary to secure such utilities, acting as Manager for the Authority.

16. Employees.
(a) All personnel of the Manager involved with the management, maintenance, repair, operation or leasing of the Properties will be employees of the Manager and will be hired, paid, directed, supervised, and discharged by the Manager.

The Manager will provide sufficient resources (staff and/or services) in order to fulfill its obligations to the Authority under the terms of this Agreement. All costs associated with hiring and discharging of such employees will be borne by the Manager. The Manager warrants that it has established employment policies in accordance with employment laws and said policies include a drug free workplace or similar substance abuse policy, a zerotolerance violence in the workplace policy and all other policies mandated by state and Federal law. The Manager warrants that all of its employees meet all qualifications, licensing and code requirements, applicable to completing assigned tasks. The Manager warrants that training will be provided to employees as may be required by local, state or federal law and will be conducted by an individual or entities qualified to provide such training. It is understood that, subject to sub-Sections (b) and (c), below, all direct costs associated with employees working "on-site" and specifically identified on Exhibit F will be borne by the Authority to include their direct salary (but not bonuses or overtime that have not been preapproved by the Authority), Social Security taxes, employment taxes, medical insurance, Pension Plan, Worker's Compensation, uniforms, Housing allowance and other benefits (if applicable). Any costs associated with overtime will only be paid by the Authority when preapproved by the Authority. The Authority shall have the right to interview and approve the hiring of any prospective site managers or regional (non-site specific) staff included in Exhibit “F”. Only the cost of those positions set forth on Exhibit F shall be paid by the Authority. Positions may be added, deleted or modified from Exhibit F based on property need with approval of the Manager and the Executive Director of the Authority. Notwithstanding the foregoing, all personnel of the Manager are exclusively the employees of the Manager, and not of the Authority. (b) The Manager shall have full and exclusive responsibility and liability for payment of all federal, state and local payroll taxes and for contributions for unemployment insurance, Social Security (FICA) and other benefits imposed or assessed under any provision of law or by regulation, and which are measured by salaries, wages, or other remuneration paid or payable by the Manager to its employees engaged in any work in connection with this Agreement or indicated herein, for the payment of which the Authority will reimburse the Manager, subject to the written approval of the Finance Director. The Manager shall have full and exclusive responsibility and liability for the withholding and payment of any income taxes required to be withheld from the wages or salaries of said employees under any provision of law or regulation. The Manager agrees Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1204
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11 to save and hold the Authority harmless from all claims for penalties, interest, or costs which may be assessed under any law or any rules or regulations thereunder with respect to its failure or inability to perform the aforesaid responsibilities. (c) Upon ten days demand from the Authority, the Manager shall cause any employee of the Manager to be removed from the Properties, including any corporate employee not included on Exhibit F, at the Manager's sole cost and expense. (d) The Manager shall be solely responsible for the methods and means of managing its personnel to achieve the desired results. Authority’s authority over and involvement in the Manager’s employment matters shall be limited consistent with the Manager’s status as sole employer of its employees.

17. Disbursements from General Operating Account.
(a) From the funds collected and deposited by the Manager in the General Operating Account pursuant to Section 12 above, the Manager will make or request the following disbursements promptly when payable:
(i) The Manager shall request from the Director of Finance of the Authority reimbursement to the Manager for the actual compensation payable to employees specified in “Exhibit F”, together with the actual cost of the medical insurance, dental insurance, life insurance, Workers Compensation insurance, and taxes and assessments payable to local, state and federal governments actually paid by Manager in connection with the employment of such employees, as determined by the Manager and approved by the Director of Finance of the Authority, or his/her designees. The Manager shall be required to provide the Director of Finance of the Authority, or his/her designee, with financial statements or other documentation, as may be reasonably requested by the Director of Finance of the Authority, or his/her designee, substantiating the requested reimbursement.
(ii) Notwithstanding the provisions of sub-Section (a)(i), above, the Manager shall make disbursements of all sums otherwise due and payable by the Authority as expenses of the Properties authorized to be incurred by the Manager under the terms of this Agreement, including compensation payable to the Manager, pursuant to Section 27 below, for its services hereunder.
(iii) All checks between $2,500 and $4,999 shall require at least two signatures. All checks over $5,000 shall require at least two signatures, one of which must be the signature of an authorized representative of the Authority. a. Check requests for second signature must be
accompanied by adequate documentation to ensure that vendor limits are not exceeded. (iv) All wire transfers will be initiated by the Director of Finance of the Authority or his/her designee.
(b) Except for the disbursements mentioned in Section 12 above, funds will be disbursed or transferred from the General Operating Account only as the Authority Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1205
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12 may from time to time direct in writing. The Manager reimbursement checks in excess of $500 shall require signatures of both the authorized signatory of the Manager and the Finance Director of the Authority or his/her designee.
(c) In the event the balance in the General Operating Account is at any time insufficient to pay disbursements due and payable under Section 17(a) above, the Manager will inform the Authority prior to disbursing funds of that fact and the Authority’s Director of Finance will then remit to the Manager sufficient funds to cover the delinquency. In no event will the Manager be required to use its own funds to pay such disbursements that are directly related to the operation of the Properties. (d) The Authority will pay for or reimburse to the Manager only those expenses that are expressly authorized by this Agreement to be borne by the Authority.

Any expenses incurred by the Manager as a result of any legal judgment or administrative ruling against the Manager or its officers, employees or agents, or any monetary settlement in lieu of same to resolve any dispute, or the costs incurred by the Manager in connection therewith, including attorneys' fees for advice to or defense of the Manager, shall be the sole responsibility of the Manager. In the event any Authority monies have been disbursed for this purpose, the Manager shall immediately reimburse the Authority.

The Authority may, in its sole discretion, elect to pay or reimburse the Manager for all or a portion of such expenses and/or costs if the Authority deems that to be in the best interests of the Authority or the community which it serves or to promote the public health, safety and/or welfare, and only upon written agreement between the Authority and the Manager, signed by each of the Parties.

18. Budgets. The Manager will prepare and submit annual operating budgets for the Properties in forms satisfactory to the Director of Finance, which budgets shall include but not be limited to the following: Current Year Final Budget Adopted; Current Year Expected Actual; Upcoming Year Budget Request; Detailed Descriptions for any marginal deviations from Current Year; Detailed Descriptions for any Capital Expenditures for each Property; including Reserve Accounts where applicable; and Exhibit F described above. Except as permitted under Section 14(e) above, annual disbursements for operating expenses will not exceed the amount authorized by the approved budget without the prior written consent of the Authority. The Manager shall prepare a recommended operating budget for each fiscal year during the term of this Agreement, and shall submit to the Authority by March 1st of each year for the following fiscal year (July 1 to June 30). Additionally, the Manager shall prepare and submit to the Authority a budget for each fiscal year thereafter covering the period from July 1 through the next following June 30. Each year of the term the Authority will promptly inform the Manager of any changes incorporated in the approved budget, and the Manager will keep the Authority informed of any material anticipated deviation from the receipts or disbursements stated in the approved budget. The Manager may, upon the written request and after receipt of written approval of the Authority, make disbursements exceeding the budgeted allowances within the budgeted categories for the Properties.

19. Records and Reports. In addition to any requirements specified in the Administrative Plan or other provisions of this Agreement, the Manager will have the following responsibilities with respect to accounts and reports:

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13 (a) The Manager will establish and maintain, on a modified accrual basis, a comprehensive system of records, books and accounts in a manner satisfactory to the Authority. All records, books and accounts will be subject to examination at reasonable hours by any authorized representative of the Authority. The Manager shall maintain the books and records in good condition and order and shall preserve the books and records for such time-period as the Authority would be legally required to preserve and maintain the books and records.
(b) The Manager will be subject to a quarterly review and an annual audit conducted by a firm of the Authority's choice. The Manager agrees to make available all applicable records to the Authority's auditors for annual review. The report will be prepared in accordance with generally accepted auditing standards. The audit report submitted by the audit firm will also be subject to a single audit at the Authority's discretion. The preparer’s services will be an expense of the Authority. (c) The Manager will furnish information as may be requested by the Authority from time to time with respect to the financial, physical or operational condition of the Properties, including, without limitation: (i) calculation and billing rent and other tenant charges; (ii) maintaining accounts receivable and delinquency records; (iii) maintaining rent rolls; (iv) processing and paying operating and capital invoices; (v) recording activity and comparing such activity to budgeted amounts; (vi) reconciling all expenditures; (vii) remitting excess funds to the Authority and requesting needed funds from the Authority; (viii) processing payroll for personnel employed in the discharge of this Agreement and in compliance with taxing authorities and other reporting requirements associated with payroll; and (ix) reports detailed in Exhibit I. (d) By the 15th day of each month, the Manager will furnish the Authority with an itemized list of all delinquent accounts, including general operating accounts, as of the tenth day of the same month.
(e) The Manager shall submit to the Authority’s Finance Director those reports set forth in Exhibit H on the periodic basis set forth in Exhibit H. Reports designated as “monthly” on Exhibit H shall be submitted by the 15th day of each month; reports designated as “quarterly” shall be submitted by the 15th day of every third month, and reports designated as “annual” shall be submitted at the end of the fiscal year or the end of the calendar year as set forth on Exhibit H. In explanation but not limitation of the foregoing, the monthly reports to be submitted include: a statement of receipts and disbursements during the previous month; a schedule of accounts receivable and payable; reconciled bank statements for all accounts maintained by the Manager on behalf of the Authority reflecting disbursements and deposit amounts as of the end of the previous month; a copy of general ledger account transactions and monthly aggregate utility consumption by utility; and such other matters relative to the management, operation, and maintenance of the Properties including actual income and expense balances compared to budgeted or expected results as required by the Finance Director of Authority. Additional reports may be requested throughout the year as the Authority deems necessary.

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14 (f) On the 15th day of each month, the Manager will submit to the Authority the reports listed on Exhibit I attached hereto and incorporated herein by reference, to assist the Authority in determining compliance with that certain Stipulation for Entry of Judgment in case number Indio 51124 as consolidated with case numbers Indio 51143 and 51159 which has been provided to the Manager. (g) Confidentiality. All books, records, operating statements, leases, and other material or information relevant to the operation or financial nature of the Properties shall be maintained in the strictest confidence and shall not be available to any employee or salesperson of any affiliate of Manager, nor to any other party without the prior written consent of the Authority or under compulsion of law (e.g., subpoena).

20. Fidelity Bond. The Manager will place the Properties on a master fidelity bond, which provides blanket coverage equal to two months gross rent potential. The bond will provide coverage for all principals and agents of the Manager and all persons who participate directly or indirectly in the management of the Properties and their assets, accounts and records. The premiums for such a bond will be paid and borne by the Manager. Specifically, coverage for the Manager, including all applicable persons in the Manager's employ, will be paid by the Manager, and coverage for the Authority’s personnel, if applicable, will be paid by the Authority. Said fidelity bond shall be issued by a company which is reasonably acceptable to the Authority, and the Manager shall deliver to the Authority a copy of said fidelity bond upon execution by the Authority of this Agreement.

21. Bids, Discounts, Rebates or Commissions. The Authority and the Manager agree to adhere to the City of Palm Desert’s purchasing policy procedures set for the in Ordinance No. 1392 of the City of Palm Desert, and any amendments thereto, when obtaining contract materials, supplies and services for the Properties and to secure and credit to the Properties all discounts, rebates and commissions obtainable with respect to purchases, service contracts and all other transactions on behalf of the Properties. The Manager agrees that no goods and services shall be purchased from individuals, related companies and companies having a financial or pecuniary interest (a "conflict-of-interest") with the Manager. All vendor accounts shall be opened in the Authority's name, upon prior written approval of the Authority.

The Manager will develop detailed scopes of work, materials, supplies, equipment and contractual services for any work or repair the cost of which may exceed $15,000 for a single Unit or project. The Manager shall comply with the procedures set forth in Ordinance No. 1392 of the City of Palm Desert, and any amendments thereto, in connection with the purchase of any materials, supplies, equipment and contractual services to be paid for by the Authority under this Agreement.

Copies of all required bids and documentation of all other written or verbal cost comparisons made by the Manager shall be made part of the records of the Properties and shall be retained for three years from the date the work was completed or as required by the City of Palm Desert’s Retention Policy. This documentation shall be subject to inspection by the Authority, or its designee and the Manager agrees to submit such documentation upon request. Further, the Manager shall annually submit a report to the Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1208
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15 Authority describing the outcome of all bidding procedures, which report shall include the names of all bidders and the amount of their bids and shall indicate to which bidder the contract was awarded.

The Manager agrees to make available to the Authority, when requested, all records of the Manager, which relate to the provision of goods or services to the Authority whenever funds from the Properties have been used to pay for such goods and/or services (other than management services).

22. Resident Services Program. The Manager will be responsible for carrying out any resident retention or social services program described in the Administrative Plan and any other program or service that may become available that are in the best interest of the residents or community to promote public health, public safety or tenant welfare (collectively, the “Resident Services Program”). The Resident Services Program will be carried out by the Resident Services Coordinator, as designated on Exhibit F.

23. Resident - Management Relations. The Manager will establish quarterly meetings with tenants at Properties containing 150 or more units to encourage and promote communication and tenants’ initiatives.

24. Defense, Indemnity and Hold Harmless Agreement. Except for losses arising out of Manager’s sole negligence, gross negligence, or willful misconduct, or covered by insurance required by section 25, the Manager and Authority agree that the Manager, and their respective officials, officers, employees, and agents including the Manager (collectively “Indemnitees”) should, to the extent permitted by law, be fully protected against any loss, injury, damage, complaint, claim, lawsuit, cost, expense, attorneys fees, litigation costs, defense costs, court costs or any other cost arising out of or in any way related to the Manager’s performance of this Agreement. Accordingly, the provisions of this defense, indemnity and hold harmless provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to the Indemnitees. The Manager shall be named as an additional insured under the Authority’s comprehensive liability policy or coverage programs (as applicable) covering the Properties. Except as provided elsewhere in this Agreement, all Authority coverage programs shall be primary and non-contributory with any insurance maintained by indemnities. All obligations under this provision shall be paid by the Authority as they are incurred by the Manager. The Authority shall defend the Manager, and bear the expense thereof, with lawyers approved by the Manager, such approval which shall not be unreasonably withheld.

25. Professional Services Insurance Requirements.
(a) The Manager shall not commence work under this Agreement until it has provided evidence satisfactory to the Authority that it has secured all insurance required under this Section. In addition, the Manager shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the Authority that the subcontractor has secured all insurance required under this section.

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16 (b) Automobile Liability Insurance. The Manager shall maintain automobile liability insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Manager arising out of or in connection with Work to be performed under this Agreement, including $1,000,000 combined single limit for each accident including coverage for any owned, hired, nonowned or rented vehicles. (c) Professional Liability (Errors & Omissions). The Manager shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $2,000,000 per claim and policy shall not exclude discrimination, fair housing, and American with Disabilities act.

Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and the Manager agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this Agreement. If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement. (d) Workers’ Compensation/Employers' Liability Insurance. The Manager shall procure and maintain Workers' Compensation insurance complying with California workers’ compensation laws, including statutory limits for workers’ compensation and an Employer’s liability limit of $1,000,000 per accident or disease.

Unless otherwise agreed, this policy shall be endorsed to waive any right of subrogation as respects the Authority, the Successor Agency to the Palm Desert Redevelopment Agency, the City of Palm Desert, and their respective officials, officers, employees, volunteers, and agents.
(e) Fidelity Coverage. Consultant shall provide evidence of fidelity coverage on a blanket fidelity bond or other acceptable form. Limits shall be no less than $1,000,000 per occurrence.
(f) Cyber Liability Insurance. Consultant shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss, which shall include the following coverage:
i. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination, or use of the confidential information.
ii. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems.
iii. Liability arising from the failure of technology products (software) required under the contract for consultant to properly perform the services intended. iv. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep-linking or framing, and infringement or violation of intellectual property rights. v. Liability arising from the failure to render professional services.

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17 (g) Employment Practices Liability. The Manager shall maintain employment practices liability insurance in the minimum amount of $1,000,000 per occurrence/$2,000,000 general aggregate.
(h) The Manager will maintain Commercial General Liability Insurance coverage with respect to bodily injury, death and property damage (on an occurrence basis) in an amount of at least $1,000,000 per occurrence, $2,000,000 aggregate combined single limit for bodily injury and property damage, and $2,000,000 products/completed operations. Such policy will not have exclusions for Abuse and Molestation and/or Assault and Battery. Notwithstanding the provisions of this subclause (h) requiring the Manager to maintain the aforesaid insurance coverage, nothing herein shall modify or alter the provisions of Section 24 requiring that the Authority’s coverage program be primary and non-contributory nor modify or alter the Authority’s indemnification obligations as set forth therein.
(i) The Manager will maintain Pollution Liability Insurance coverage with an amount not less than $1,000,000 each occurrence/$2,000,000 aggregate. This policy shall provide coverage for bodily injury and property damage with no exclusions for asbestos, lead, mold, pollution, testing, underground storage tanks, laboratory analysis and/or soil work.
(j) Evidence of Insurance. The Manager shall provide evidence of the insurance required herein, satisfactory to the Authority, consisting of certificate(s) of insurance evidencing all of the coverages required by this Agreement. In addition, the Manager agrees to provide complete copies of all policies of insurance to the Authority annually or upon request. The Certificate(s) shall reflect that the insurer will provide 30- days notice of any cancellation or modification of coverage to the Additional Insureds, per the terms of the policy. The Manager agrees to require its insurer to modify the certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions. All insurance coverage and limits provided pursuant to this Agreement shall apply to the full extent of the policies involved, available or applicable.

Nothing contained in this Agreement or any other agreement relating to the Authority or its operations shall limit the application of such insurance coverage. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf and are to be provided on standard ISO forms noted above. All endorsements are to be received and approved by the Risk Manager prior to the commencement of work. (k) No Limitation on other Insurance. Requirements of specific coverage features or limits contained in this Section 25 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 and is not intended by any Party to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
(l) Subrogation. All general or auto liability insurance coverage provided pursuant to this Agreement, or any other agreements pertaining to the performance of this Agreement, shall not prohibit the Manager, its employees, or agents, from waiving Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1211
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18 the right of subrogation prior to a loss. The Manager hereby waives all rights of subrogation against the Authority, the Successor Agency to the Palm Desert Redevelopment Agency, and the City of Palm Desert.
(m) Authority's Right to Purchase Replacement Insurance. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, the Authority has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the Authority will be promptly reimbursed by the Manager.
(n) Proof of Insurance. The Manager shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished not more than 72 hours after the expiration of the coverage(s). Any actual or alleged failure on the part of the Authority or any other of the Additional Insureds under these requirements to request or obtain proof of insurance required under this Agreement in no way waives any right or remedy of the Authority or any other of the Additional Insureds, in this or any other regard.
(o) Subcontractor Proof of Insurance.
(i) Subcontractors Performing Recurring Work or Work in Excess of $2,500. The Manager shall require all subcontractors or other parties which provide (i) recurring services to the Properties, or (ii) services in excess of $2,500 in a six month Period (a "Major Subcontractor") to the Properties to provide the same minimum insurance coverage required of the Manager and Workers Compensation insurance to conform with the requirements of this section. The Manager 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. The Manager agrees that upon request, all agreements with Major Subcontractor, or others with whom the Manager contracts with on behalf of the Authority, will be submitted to the Authority for review. For purposes of this Section a contractor or party hired for the work shall be deemed to be performing "recurring work" in the event that contractor or party hired performs in excess of a single segregated or discrete project in any six-month period. The Manager agrees to obtain certificates evidencing such coverage and to make reasonable efforts to ensure that such coverage is provided as required herein. Failure of the Authority to request copies of such agreements will not impose any liability on or constitute waiver by the Authority of its rights hereunder. The Manager agrees to require that no contract used by any Major Subcontractor, or contracts the Manager enters into on behalf of the Authority, will reserve the right to charge back to the Authority the cost of insurance required by this Agreement.
(ii) Subcontractors Performing Nonrecurring Work or Work Less Than or Equal to $2,500. The Manager shall require all subcontractors or other parties which provide (i) nonrecurring services to the Properties, and (ii) services in an amount not to exceed $2,500 in a six-month Period (a "Nonrecurring Subcontractor") to provide Commercial General Liability insurance in the amounts set forth below and Workers Compensation insurance to conform with the requirements of this section. For purposes Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1212
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19 of Section 25, a contractor or party hired for the work shall be deemed to be providing "nonrecurring work," so long as that contractor or party hired for the work does not perform more than a single segregated or discrete project in a six-month period. In the event a Nonrecurring Subcontractor performs more than a single discrete project in a six-month period or work exceeding $2,500 in value, that Nonrecurring Subcontractor shall lose its status as a “Nonrecurring Subcontractor” and shall be automatically deemed a “Major Subcontractor”. The liability limits for Nonrecurring Subcontractors shall provide no less than $500,000 per occurrence for all coverages and $500,000 in the general aggregate.

The Manager agrees to verify such coverage and make reasonable efforts to ensure that such coverage is provided as required herein. The Manager agrees to require that no contract used by any Nonrecurring Subcontractor, or contracts the Manager enters into on behalf of the Authority, will reserve the right to charge back to the Authority the cost of insurance required by this Agreement. The Manager agrees that upon request, all agreements with Nonrecurring Subcontractors, or others with whom the Manager contracts on behalf of the Authority, will be submitted to the Authority for review. Failure of the Authority to request copies of such agreements will not impose any liability on the Authority nor constitute a waiver of the rights of the Authority hereunder.

26. Compliance With Governmental Orders. The Manager will take such action as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the Properties, whether imposed by federal, state, county or municipal authority. Notwithstanding the foregoing, the Manager shall take no such action so long as the Authority is contesting, or has affirmed its intention to contest, any such order or requirement. The Manager will notify the Authority in writing of all notices of such orders or other requirements as soon as possible from the time of their receipt.

27. Manager's Compensation. The Manager will be compensated for its services under this Agreement by monthly management fees. Such fees will be payable on the first day of each month, in arrears, for the services provided in the prior month for the term of this Agreement. For the purpose of this Section, the term ‘occupied units’ shall include those Units which are currently leased, on notice to vacate, or temporarily vacant due to a move out. For the avoidance of doubt ‘occupied units’ shall not include units occupied by the Manager’s management staff pursuant to Section 3(f). The Management Fee (“Fee”) shall be calculated monthly according to the following schedule:
(a) In the case of occupied units, each such monthly fee shall be in the amount of $63.00 per Unit per month commencing on June 1, 2025, and an increase of 3% commencing on July 1, 2027, and biannually every January 1st thereafter for the remainder of the Term of this Agreement including contract extensions, if any); except as follows:
(i) For Units where a Notice of Termination of Tenancy (“Notice”) was provided by the tenant as required (30 calendar day notice) and a Unit remains vacant for 30 calendar days or more, the Manager will not be entitled to the monthly fee, except in those circumstances where the vacancy is the result of the Authority’s leasing process for affordable Units.

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20 (ii) For Units where no Notice was given, the tenant chose to ‘quit’ or the tenant skipped, and a Unit remains vacant for 45 calendar days or more, the Manager will not be entitled to the monthly fee.
(b) In the case of unoccupied Units (except those Units described in Section 27(c-e) below), each such monthly fee shall be as follows:
(i) $63.00 per Unit per month for the first four months for Units that have been determined, in the Authority’s sole and absolute discretion, to be ‘unrentable’ or ‘down’ due to physical condition or damage. Unless otherwise determined by the Authority, the Manager is expected to repair said Units within the four months. If the Manager fails to repair units within the given time, no fee will be paid until the unit is available for occupancy.
(ii) No Fee will be paid for Units that are unrentable or down due to action or inaction by the Manager.
(c) In the case of Units that are newly constructed or newly renovated which will be added to Exhibit A, the Fee shall be $10 per Unit per month commencing at such time as the construction/renovation has reached 90% completion as determined by the contractor’s billing until Certificate of Occupancy, in the case of new Units, or Certificate of Completion, in the case of renovated Units, is issued. (d) In the case of Units which were ‘down’, as described in Section 27(b)(i) and direction has been given to the Manager by the Authority not to repair said Units, commencing with the fifth month, the Fee shall be reduced to $20 per Unit per month until the Manager is no longer responsible for said Units. (e) Except as otherwise expressly provided in this Agreement, all employees not identified in Exhibit F and other overhead expenses of the Manager (including but not limited to costs of office supplies and equipment, postage, transportation, travel expenses for managerial personnel and telephone services) will be borne by the Manager. All services for management, accounting, and reporting, with exception of the Authority's requested annual audit, shall be borne by the Manager.

In addition to the Management Fee, the site employees for the Properties shall be paid based on the Employee Salaries listed on Exhibit F attached hereto and incorporated herein by this reference.

28. Termination.
(a) Authority Termination for Convenience. Authority may terminate this Agreement for convenience (a “Termination for Convenience”) by giving not less than 180 days written notice of termination. The notice of termination shall specify that the termination is for the convenience of the Authority. Upon a Termination for Convenience, the Authority shall continue to pay the Manager for all work performed up to the date of the Termination for Convenience. The Manager shall be compensated only for those services that have been satisfactorily rendered to the Authority until the date of the Docusign Envelope ID: 33E6E631-016C-44B0-93C8-D72593EA227D 1214
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21 Termination for Convenience, and the Manager shall be entitled to no further compensation. Authority shall not be liable for any post-termination costs, lost profits, or other alleged damages resulting from a Termination for Convenience. (b) Termination For Cause: Either Party may terminate this Agreement with cause (a “Termination for Cause”) by giving written notice to the other Party not less than 90 days prior to the date of Termination for Cause. Any such written notice for cause shall specify the default or cause for termination. If the default or cause for termination specified has not been cured within 21 days of receipt of the notice, this Agreement shall terminate on the date of termination set forth in the notice. Upon termination, the Manager shall be compensated only for those services that have been satisfactorily rendered to the Authority until the date of the Termination for Cause, and the Manager shall be entitled to no further compensation.
(c) Termination at End of Term/Extension: At least ninety (90) days prior to the automatic termination of this Agreement (the “Negotiation Period”), and unless either Party has given timely notice under this Section prior thereto, the Parties shall initiate negotiations for a new agreement for Property Management Services and use best efforts and engage in good faith negotiations to finalize such agreement and obtain final approval thereof prior to the automatic termination of this Agreement. In the event such good faith efforts are not completed before the expiration of the Term, or in the event either Party gives notice to the other during the Negotiation Period of its decision not to enter into a further term, this Agreement may be extended for not more than ninety (90) days after the giving of such notice or June 30, 2030, whichever is later, upon the written authorization of the Executive Director of the Authority. Good faith negotiations may include an extension of this Agreement up to an additional forty-eight (48) months provided that any such extension shall require the authorization of the Authority Board and shall be in writing, as an Amendment to this Agreement, signed by both Parties.

Nothing herein shall prevent the Housing Authority Board from electing to issue a Request for Proposal for Property Management Services in lieu of negotiating with Manager. (d) Bankruptcy. In the event that a petition in bankruptcy is filed by either of the Parties, or in the event that either Party makes an assignment for the benefit of creditors to take advantage of any insolvency act, this Agreement shall automatically terminate.
(e) Sale of Properties. This Agreement shall automatically terminate, upon the sale of the Properties, or as to any Property, on the sale of such Property, except that, this provision shall not apply in the event of a sale, transfer, or re-conveyance by and between the former Palm Desert Redevelopment Agency, the Authority, the Successor Agency to the Palm Desert Redevelopment Agency, the City of Palm Desert, and/or any related or successor agency or entity.
(f) Addition of Properties. In the event the Authority adds a property to its operations portfolio, the Manager and Authority’s designee may agree in writing to amend Exhibit A for the inclusion of said property. Such amendment shall be subject to the terms and conditions herein from the effective date of the amendment.

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22 (g) Exchange of Documents. Upon termination of this Agreement, the Manager will submit to the Authority any financial statements requested by the Authority and, after the Parties have accounted to each other with respect to all matters outstanding as of the date of termination, the Authority will furnish the Manager security in form and principal amount satisfactory to the Manager against any obligations or liabilities which the Manager may properly have incurred on behalf of the Authority hereunder. All of the cash trust accounts, investments, equipment and records for the Properties will be turned over to the Authority within 30 days of the date this Agreement is terminated. The Parties hereby covenant and agree that the Authority shall own the books and records for the Properties and that the Manager shall hold the books and records for the Properties for the benefit of the Authority for an agreed upon period at the time of termination.

29. Manager's Indemnification. Subject to the Manager's indemnification obligations hereunder as set forth in Section 24, the Parties understand and agree:
(a) That the Authority has assumed and will maintain its responsibility and obligation through the Term of this Agreement for the finances and the financial marketability of the Properties; and
(b) That the Manager shall have no obligation, responsibility or liability to fund authorized costs, expenses, or accounts other than those funds generated by the Properties themselves or provided to the Properties or to the Manager by the Authority.

In accordance with the foregoing, the Authority agrees that the Manager shall have the right at all times to withdraw payment of its compensation, as provided for under Section 27 of this Agreement, from the General Operating account or accounts, immediately when such compensation is due and without regard to other property obligations or expenses conditioned on the Manager having satisfactorily discharged all duties and responsibilities under this Agreement. Moreover, the Authority hereby indemnifies the Manager and agrees to hold it harmless with respect to costs, expenses, accounts, liabilities and obligations of the Properties during the Term of this Agreement and further agrees to guarantee to the Manager the payment of its compensation under Section 27 of this Agreement during the Term of this Agreement to the extent that the Operating and Maintenance Account for the Properties are insufficiently funded for this purpose. Failure of the Authority at any time to abide by and to fulfill the foregoing shall be a breach of this Agreement entitling the Manager to obtain from the Authority, upon demand, full payment of all compensation owed to the Manager through the date of such breach.

30. Prohibition Against Assignment and Subcontracting Management Services.

The Manager shall not assign this Agreement or subcontract any management or other services, without the express prior written consent of the Authority.

31. Notices. Except as otherwise provided by law, any and all notices or other communications required or permitted by this Agreement or by law to be served on or given to either Party to this Agreement by the other Party shall be given in writing. All such notices or other communications shall be deemed duly served and given when personally delivered to the Party to whom they are so directed, or in lieu of personal service when deposited in the United States mail, first-class postage prepaid, addressed to the respective Party as set forth below:

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23 To the Authority:

Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attention: Housing Manager
To the Manager:

National Community Renaissance of California
9692 Haven Avenue, Suite 100
Rancho Cucamonga, CA 91730
Attention: Michael Ruane, President
Either Party may change its address for the purpose of this Section 31 by giving written notice of the change to the other Party in the manner provided in this Section.

32. General Provisions.
(a) Binding on Successors and Assigns. At all times, this Agreement will inure to the benefit of and constitute a binding obligation upon the Parties and their respective successors and assigns.
(b) Entire Agreement and Allowable Changes. This Agreement (including the Addendum) constitutes the entire Agreement between the Authority and the Manager with respect to the management and operation of the Properties, and all prior agreements between the Authority and the Manager regarding the subject matter of this Agreement (including the Addendum) are hereby superseded and replaced.

Changes hereto must be made by supplemental written agreement signed by the Parties.

Exhibits hereto may be amended as necessary by the written agreement of the Parties. (c) Attorneys' Fees. If any litigation is commenced between the Parties concerning the Properties, this Agreement, or the rights and duties of either Party with respect to this Agreement, the Party prevailing in the litigation shall be entitled, in addition to any other relief that may be granted in the litigation, to reasonable attorneys' fees and costs.
(d) Ambiguities. Each Party and their counsel have participated fully in the drafting of this Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply in interpreting this Agreement. (e) Severability of Agreement. If a court or an arbitrator of competent jurisdiction holds any provision of this Agreement to be illegal, unenforceable or invalid in whole or in part for any reason, the validity and enforceability of the remaining provisions, or portions of them will not be affected.

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24 (f) Approval by Authority. Whenever a provision of this Agreement requires the delivery of documents or reports, notifications, determinations, reimbursements or requests for funding, review, authorization or approval of the Authority, such approval may be given by the Executive Director of the Authority or his/her designee, unless Authority Board action is specified in this Agreement. (g) Word Usage. Unless the context clearly requires otherwise, (a) the plural and singular shall each be deemed to include the other; (b) the masculine, feminine, and neuter genders shall each be deemed to include the others; (c) "shall," "will," or "agrees" are mandatory, and "may" is permissive; (d) "or" is not exclusive; and (e) "includes" and "including" are not limiting.
[Signatures on following page]
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25 Clerk QC: _______
Contract QC: ________
Insurance:
__________
Initial Review
__________
Final Approval
IN WITNESS THEREOF, the Parties have executed this Agreement on the date first above written.

AUTHORITY:

PALM DESERT HOUSING AUTHORITY,
a public body, corporate and politic
By: _____________________________
Jan C. Harnik
Chairperson
ATTEST:

By: ______________________________
Anthony J. Mejia
Secretary
APPROVED AS TO FORM:

By: _____________________________
Isra Shah
Best Best & Krieger
General Counsel
MANAGER:

NATIONAL COMMUNITY
RENAISSANCE OF CALIFORNIA, a
California Nonprofit Public Benefit
Corporation
By: _________________________
Robert Diaz
Executive Vice President
By: __________________________
Michael Finn
Treasurer
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EXHIBIT A
(PROPERTIES)

PALM DESERT HOUSING AUTHORITY

AFFORDABLE HOUSING UNITS
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EXHIBIT B
[intentionally omitted]
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EXHIBIT C

MANAGEMENT OFFICES
Location of Management Offices
One Quail Place
(located in management office)
Las Serenas
(located in management office)
Catalina Gardens
(located in management office)
Desert Pointe
(located in management office)
California Villas
(located in management office)
Laguna Palms
(located in management office)
Carlos Ortega Villas
(located in management office)
Locations Managed
One Quail Place
Las Serenas and La Rocca Villas
Catalina Gardens, The Pueblos, Candlewood Apartments, and Sagecrest Senior Desert Pointe, Taos Palms and Neighbors Apartments
California Villas
Carlos Ortega Villas
Laguna Palms and Palm Village Apartments
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EXHIBIT D

DEPOSIT ACCOUNTS
The following security deposit accounts shall be maintained by the Manager for the benefit of the Authority:

TO BE PROVIDED BY THE CITY’S FINANCE DEPARTEMNT.

The following operating deposit accounts shall be maintained by the Manager for the benefit of the Authority:

TO BE PROVIDED BY THE CITY’S FINANCE DEPARTEMNT.

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EXHIBIT E

NON-COLLUSIVE AFFIDAVIT FORM

AFFIDAVIT
State of California )
)ss.

County of Riverside )
___________________________, being first duly sworn, deposes and says:

That he is ___________________________, the party making the foregoing proposal or bid, that such proposal or bid is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, sought by agreement or collusion, or communication or conference, with any person, to fix the bid price or affiant, or of any other bidder or to fix any overhead profit or cost element of said bid price, or that of any other bidder or to secure any advantage against the _________________________________________ or any person interested in the proposed contract, and that all statements in said proposal or bid are true.

Signature of Person Making Affidavit:
____________________________________
Subscribed and sworn to me this _______ day of __________________, 20___ My commission expires __________________, 20___
Notary Public Signature:_______________________
Official Seal:

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EXHIBIT F

PROPERTY STAFFING & SALARY RANGES
To be provided annually with the property budgets.

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EXHIBIT G

PERFORMANCE CRITERIA

1. PROPERTY PORTFOLIO NET OPERATING INCOME COMPARISON
a. Current Budget Year: July - June
b. Budgeted vs. Actual = Variance
c. Vacancy Rate Analysis

2. RESPONSE TO RESIDENT COMPLAINTS
a. Response to service requests/turn around time
b. Response to resident complaints and concerns - monthly meetings c. Response to resident complaints and concerns at site office

3. COMPLIANCE WITH AGREEMENT
a. Define any notable gross disparities from the Agreement on the following:
i. Report preparation and submittal promptness
ii. Responsiveness to Authority requests
iii. Method of accounting

4. CAPITAL IMPROVEMENTS SCHEDULE
a. Deferred Capital Improvement Schedule
b. Capital Improvement Program
c. Maintenance and general appearance of properties

5. OPERATIONS
a. Operational procedures to be audited:
i. Compliance with Stipulation
ii. Compliance with all laws including those related to property management, Fair Housing, and housing authorities
iii. Recertification
iv. Internal controls
v. Contract controls

6. ACCOUNTING AUDIT
a. Review of Annual Audit Findings
b. Quarterly Audits
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EXHIBIT G

PERFORMANCE CRITERIA

CONTINUED

7. AFFORDABLE HOUSING PROGRAM
a. Housing Authority goals
b. Management Company goals
c. Program implementation
d. Compliance with local, state, and Federal regulations e. Tenant Household Income Analysis

8. RESIDENT RELATIONS
a. Review summary responses of any resident surveys
b. Establishment of Tenant Exit Survey

9. GENERAL
a. General overview of previous operational year
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EXHIBIT H

LIST OF FINANCIAL REPORTS REQUIRED
Monthly Reports

1. Payroll register and invoices (may be submitted after every payroll or monthly).

2. Management Fee Report that includes Vacancies/Current Rental Activity submitted with invoice.

3. Disbursement/Expense Journals for each check run.

4. General Ledgers for all Properties.

5. Check Registers for all Properties.

6. Monthly Bank Reconciliations with Outstanding Check Registers.

7. Balance Sheets and/or Trial Balances for all Properties.

8. Rent Rolls for all Properties.

9. Delinquent A/R for all Properties.

10. Prepaid Listing for all Properties.

11. Income Statements with Monthly Budget Variance as well as Annual Variance.

12. Monthly Adjusting Journals.

13. Cash Receipts Journals.

Quarterly Reports

1. Security Deposit List for all Properties (If not included in the monthly rent roll)

2. Status Report on Items over 90 days (Requests to the Board for write offs, etc.)
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EXHIBIT H

LIST OF FINANCIAL REPORTS REQUIRED
- CONTINUED –
Annual Reports Required
At Fiscal Year End:

1. Schedule of Accounts Payable

2. Schedule of Accounts Receivable

3. Inventory of all Agency and Authority personal property and readily removable fixtures attached to the Properties.

4. Preliminary sets of Monthly closing reports, when requested.

5. Once audited, Final Set of all June Closing Reports

6. Schedule of Security Deposits Matching the Cash Held

7. The Report described in Section 21
At Calendar Year End:

1. Copies of the transmittals for Federal Reporting Requirements for W-2's and 1099's
Analytical Reports:

1. Upon request of the Authority, reports analyzing various information required in the above Financial Reports (May include summaries of all properties and/or multi-year information).

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EXHIBIT I
Leasing Reports:

1. Monthly Occupancy and Average Rent Statement

2. Monthly Net Operating Income Statement

3. Replacement Lists maintained continuously due at least once annually on June 30.

4. Resident Demographics Report

5. Service Request and Serious Complaints

6. Other reports as requested or as necessary to perform the requirements of the Agreement.

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EXHIBIT J
On-going services requiring written cost estimates will adhere to the City of Palm Desert’s purchasing policy procedures set for the in Ordinance No. 1392 of the City of Palm Desert, and any amendments thereto as required in Section 21 of the Management Agreement as well as for services listed below:

1. Landscape Contracts
a. Monthly Services
b. Annual Services including tree trimming, overseeding, and perennial flowers

2. Pest Control

3. Pool Services

4. Replacement Carpet and Vinyl

5. Laundry Services

6. Air Conditioning/Heating Unit Servicing, Cleaning, and Replacement Services

7. Carpet Cleaning

8. Flooring and Housekeeping Cleaning Services

9. Environmental Testing and Cleaning Services

10. Moving Company Services

11. Golf Cart Repair and Maintenance Services

12. Courtesy Patrol Services

13. Towing Services

14. Solar Maintenance Services

15. Elevator Maintenance Services
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EXHIBIT K

NON-EXCLUSIVE LIST OF REQUIRED AND PERMISSIVE BACKGROUND CHECK

INFORMATION BY TYPE OF FUNDING
Source of
Information
Information Federal Funds Involved Federal Funds Not Involved Investigation Disclosure &
Consent
Investigation Disclosure &
Consent
Law
Enforcement
Agencies
Illegal Drug Use Required Housing
Authority must
require &
applicant must
consent
May obtain Must notify
applicant, if
basis for denial
Drug use that Interferes
with Health & Safety of
Others
Required Housing
Authority must
require &
applicant must
consent
May obtain Must notify
applicant, if
basis for denial
Sex Offenses Required Housing
Authority must
require &
applicant must
consent
May obtain Must notify
applicant, if
basis for denial
“Serious” crimes
• Murder,
mayhem, rape,
burglary
• Hate crimes
• Offenses such as
firearms,
explosives
• Felonies
involving drugs,
alcohol
• Domestic
Violence
Required Housing
Authority must
require &
applicant must
consent
May obtain Must notify
applicant, if
basis for denial
Juvenile Records Prohibited N/A Prohibited N/A
Arrests Not Resulting in
Conviction
Prohibited N/A Prohibited N/A
State /
Federal
Government
Social Security Numbers Required Housing
Authority must
require &
applicant must
consent
May obtain Application
must indicate
disclosure is
voluntary
Citizenship / Residency Required Housing
Authority must
Prohibited N/A. But if
Housing
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require &
applicant must
consent
Authority has
unsolicited
evidence that
applicant is
undocumented,
it must reject
the application.

Income / Family
composition & tax info,
to verify eligibility
Required Housing
Authority must
require &
applicant must
consent
Required Housing
Authority must
require &
applicant must
consent.

Credit
Agencies
Investigative Consumer
Report
• Credit History
• Character
• Reputation
• Personal
Characteristics
• Mode of Living
May Obtain Housing
Authority must
notify
applicant
May Obtain Housing
Authority must
notify applicant
• Convictions
• Civil Actions
• Tax Liens
• Outstanding
Judgements
May Obtain
but only if
credit
agency has
verified
information
with 30 days
of disclosure
Housing
Authority must
notify
applicant
May Obtain
but only if
credit
agency has
verified
information
with 30 days
of disclosure
Housing
Authority must
notify applicant
• Bankruptcies
more than 10
years prior
• Civil judgement
more than 7
years old
Prohibited N/A Prohibited N/A
Public
Records
Obtained
from Other
Sources;
Interviews
with
Neighbors,
Friends &
Associates
Relevant background
information
• Creditworthiness
• Credit Standing
• Credit Capacity
• Civil Actions
• Convictions
• Tax Liens
• Outstanding
Judgements
• Character
• General
Reputation
May Obtain Must notify
applicant, if
basis for
denial.

Consent
recommended.

May Obtain Must notify
applicant, if
basis for denial.

Consent
recommended.

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• Personal
Characteristics
• Mode of Living
In addition to credit reporting agencies, background check information may be obtained from Westlaw, Lexis, DataQuick, Merlin, Choice Point, and similar reputable resources.

SAMPLE CONSENT BY APPLICANT
“I understand that the Housing Authority or its agent will perform a background check as a part of determining eligibility, including but not limited to obtaining information concerning my employment, credit history, benefits, income, assets, and criminal history, and by my signature below, I hereby authorize the Housing Authority or its agent to do so.”“I certify that the statements on this application are true and complete to the best of my knowledge and belief and I understand that they will be verified. I understand that any false statements made on this application or failure to make any required disclosures may cause me to be disqualified from initial or continuing eligibility for housing assistance and may result in eviction. I further understand that I am under a continuing obligation to inform the Housing Authority or its agent of any changes to any of the information provided in this Application, and that failure to promptly inform the Housing Authority or its agent of any changes may cause me to be disqualified from initial or continuing eligibility for housing assistance and may result in eviction.”
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Page 1 of 3 ends

Palm Desert City CouncilAugust 28, 2025

Palm Desert City Council
August 28, 2025