CULTURAL ARTS COMMITTEE
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: July 9, 2025
PREPARED BY: Erica Powell, Management Analyst
SUBJECT: CONSIDER PURCHASE OF RISING INVERSION SCULPTURE BY
CRISTOPHER CICHOCKI
RECOMMENDATION:
Recommend that the City Council approve expenditure in the amount of $150,000 for the purchase of Rising Inversion by artist Cristopher Cichocki (cha-house-key), to be permanently installed at Ironwood Park.
BACKGROUND/ANALYSIS:
Rising Inversion is a large-scale, site-specific sculpture originally commissioned by the Laguna Art Museum for its 11th annual Art & Nature program. Fabrication of the artwork was fully funded by the Museum, and the sculpture is now available for purchase at a cost that reflects the significant investment already made in its creation.
The artwork, measuring 12 feet tall by 40 feet long and weighing approximately 3,000 pounds, is constructed in a spherical formation with a depth ranging from five feet at the center to one foot at the edges. The surface is coated with a phosphorescent pigment that absorbs sunlight during the day and emits a soft glow at dusk, gradually fading as night falls—creating an immersive and interactive public art experience.
Ironwood Park, located at 47800 Chia Drive, is a tranquil desert setting with no existing public art. The proposed placement of Rising Inversion will offer residents, visitors, and park users an opportunity to engage with large-scale contemporary art in a serene and contemplative outdoor space.
In addition to its artistic merit and interactive quality, Rising Inversion holds special significance as the work of Cristopher Cichocki, a Palm Desert native whose internationally recognized career in contemporary art reflects the City’s ongoing commitment to nurturing and celebrating local talent.
Grant Funding Background:
In 2024, staff submitted Rising Inversion for consideration under the National Endowment for the Arts (NEA) Our Town grant. The project was deemed ineligible due to administrative criteria unrelated to the artistic quality or community impact of the proposal. In 2025, the project was again submitted under the ARTS in California Parks grant program, but it did not advance to the application stage. No specific reason for this decision was provided. 19557
Cultural Arts Committee
City of Palm Desert
(Consider Purchase of Rising Inversion Sculpture by Cristopher Cichocki)
Despite these grant outcomes, the value of the sculpture and the opportunity it presents for community engagement and cultural enrichment remain clear. Staff therefore recommends direct acquisition of the artwork using approved Public Art funds.
FINANCIAL IMPACT:
The total cost for the acquisition and installation of Rising Inversion is $150,000. Funds have been approved and are available in the Capital Projects Public Art Projects account. The artist will be responsible for all site preparation, transportation, logistics, and installation of the sculpture, ensuring minimal impact on City resources.
ATTACHMENTS:
1. Presentation for Rising Inversion by Cristopher Cichocki
2. Cristopher Cichocki Bio
3. LA Times article
4. Palm Springs Life article
5. Proposed Location at Ironwood Park
19658
Consider
Purchase of
Rising Inversion
CULTURAL ARTS COMMITTEE PRESENTATION
CITY OF PALM DESERT
197
Recommendation
Approve expenditure of $150,000
from the Capital Projects Public Art
Projects account for the purchase of
Rising Inversion by Cristopher
Cichocki (Cha-house-key), to be
permanently installed at Ironwood
Park.
198
Background
•Rising Inversion was originally commissioned by Laguna Art Museum.
•Fabrication is complete and fully funded by the Museum. •The 3,000-pound sculpture measures 12 ft x 40 ft, coated with phosphorescent pigment that glows at dusk.
199
Artistic and Community
Significance
•Interactive, large-scale public art installation
•Proposed for Ironwood Park, a serene desert location with no current public art
•Created by Palm Desert native Cristopher Cichocki
•Promotes local talent and expands cultural landscape
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Fiscal Analysis
Total cost for acquisition and installation: $150,000
The artist will be responsible for:
•Site preparation
•Transportation and logistics
•Installation
Funds approved and available in Public Art Capital Projects account. 203
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Cristopher Cichocki (pronounced CHA-HOUSE-KEY)
Artist bio
Cichocki studied at CalArts and Yale Norfolk School of the Art. His work is in permanent collections that include the J. Paul Getty Museum, Palm Springs Art Museum, Lancaster Museum of Art. Hailing from the Coachella Valley, Cichocki has explored the depths of the California desert over the past three decades, while generating exhibitions throughout North America, South America, Asia, and Europe. In 2014 Cichocki founded the curatorial platform Epicenter Projects that has recently partnered with Fondation LAccolade - Institute de France to create THE ELEMENTAL - a contemporary center for the arts located in Palm Springs focused on art, science, and environment.
SELECTED EXHIBITIONS & PERFORMANCES
2024 Inversion (solo), Saenger Galeria, Mexico City (forthcoming), NUCLEUS (solo), de Sarthe Gallery, Scottsdale, Arizona La Vision Revela lo Que El Tacto Ya Conoce, Land Rover Patria, Xappopan, Jalisco - 2023 - Fractal Traces (solo), Projecto Arte, Guadalajara, Mexico - Rising Inversion (solo), Laguna Art Museum / Art & Nature, Laguna Beach, California (solo) (forthcoming) - Primordial Water (solo), Laguna College of Art & Design Gallery, Laguna Beach, California (solo) (forthcoming) - Without Walls Festival presented by The La Jolla Playhouse & San Diego Symphony, The Rady Shell, San Diego, California - Evaporation Pools (solo), Desert Island, Rancho Mirage, California - 2022 - Desert Daze, Lake Perris, California - Coachella Music & Arts Festival, Empire Polo Field, Indio, California - The Gaia Hypothesis Chapter One: Earth, Fire, Water, Air curated by Christopher Yggdre, THE ELEMENTAL, Palm Springs, CA - When The Rubber Meets The Road, ALLEYESONME, San Bernardino, California - 2021- Nothing True Everything Is Alive curated by Christopher Yggdre presented by Fondation LAccolade, Espace Coeur Marias, Paris, France - Historic Ground, Galerie De Vijf Ramen, Arnhem, Netherlands - 2019 - Water Memory (solo) curated by Biennale Urbana, Castello 925, Venice, Italy - 30 Days In Paris (residency), Fondation LAccolade, Paris, France - Desert Sea (solo) Cathedral City, California - Phantom Horizons, Stuttgart International Film Festival, Stuttgart, Germany - The Wrong Digital Art Biennale, Centre del Carme Cultura Contemporània, Valencia, Spain - Rotation, The Ace, Palm Springs, California - Landworks, The Long Beach Island Foundation, Loveladies, New Jersey -Joshua Treenial, Joshua Tree, California - 2018 - Divisions of Land and Sea (solo) Museum of Art and History, Lancaster, California - BioPerversity, Nicodim Gallery, Los Angeles, California - The Paseo Project, Taos, New Mexico - Cinema Perpetuum curated by Lera Green, Minsk, Belarus - Perpetual Drone, Human Resources, Los Angeles, California - Desert Daze, Lake Perris, California - 2017 - Faultline, Mecca, California - Wake, A Ship in the Woods, Escondido, Focal Planes, Chungking Studio, Los Angeles, California - Desert Daze, The Institute of Mentalphysics, Joshua Tree, California - Desert Island, Coachella Valley Art Center, Indio, California - Dusk to Dust curated by John Knuth, Mt. San Jacinto College 214
Gallery, San Jacinto, California - 2016 - Biennale Urbana, Teatro Marinoni, Lido, Italy - Root Cycle (solo) Villa Angarano, Bassano del Grappa, Italy - Circular Dimensions (solo) Palm Springs Art Museum, Palm Springs, California - Open Desert, Palm Springs Art Museum, Palm Springs, California - 2015 - At The Surface (solo) Artere-A, Guadalajara, Mexico - Phantom Horizons curated by Robert Seidel, Künstlerhaus Bethanien, Berlin, Germany - Sssound Object, Mexicali Rose, Mexicali, Mexico - Experimental Video Showcase, The Drake, Toronto, Canada - Reflections On Water, Palm Springs Art Museum, Palm Springs, California - Temporary Radiation, 996 Laboratorio de Arte, Guadalajara, Mexico - Festival of Experimental Video, Museum of Moving Image, New York, New York - 2014 - Circulation (solo) Museum of Photographic Arts, San Diego, California - Škver Art Project, Klubvizija SC + MM Center Cinema, Zagreb, Croatia - Inversion (solo) Imperial Valley Art Gallery, Imperial, California - Los Angeles Film Festival, Los Angeles, California - Being Here and There curated by Sant Khalsa, Lancaster Museum of Art and History, Lancaster, California - META The Wrong New Digital Art Biennale, Galeria Municipal de Arte, Abrantes, Portugal - Summit Artistin-Residence, Summit, Eden, Utah - Shame curated by White Zinfandel Magazine, São Paulo International Art Fair, São Paulo, Brazil - Dry Heat: Four Artists In The California Desert curated by Steven Biller, Palm Springs Fine Art Fair, Palm Springs, California - 2013 - Desert Abyss: Cycle in Cycle (solo) Palm Springs Art Museum, Palm Springs, California - Desert Abyss: Dry Capsule (solo) Palm Springs Art Museum in Palm Desert, Palm Desert, California - Epicenter (solo) See Line Gallery, Los Angeles, California - Summit Outside, Summit, Eden, Utah - 2012 - Remains In The End Times, The Popular Workshop Gallery, San Francisco, California - 2011 - Rojo Nova, Casa França-Brasil, Rio De Janeiro, Brazil - Time Based Art Festival, Portland Institute of Contemporary Art, Portland, Oregon - Multiplicity Festival, Hi Future Theatre, Rio de Janerio, Brazil - Catalysts - 8 Artists on the San Andreas Fault, University of California Riverside, Palm Desert, California - Ende Tymes Festival, Silent Barn, Ridgewood, New York - Valley of The Ancient Lake, Salton Sea History Museum, North Shore, California - 2010 - Full Pull, Inter Arts Center, Malmö, Sweden - Rojo Nova Artscapes, Scion Building, Culver City, California - Rojo Nova, Museum of Image and Sound, São Paulo, Brazil - Desert Abyss: Origin (solo) Marks Art Center, Palm Desert, California - Plankton Robots, Fluxco, Los Angeles, California - 2008 - Elemental Shifting, Salvage Vanguard Theatre, Austin, Texas - SXSW Arts and Music Festival, Austin, Texas - 2007 - Monumento 872, Los Angeles, California - Everything Is Shifting, Pehrspace, Los Angeles, California -Druid Film Festival, Il Corral, Hollywood, California - Optical Projections, Machine Project, Los Angeles, California - 2006 - Wooster On Spring, The Candle Building, New York, New York - Turn The Screws Festival, Il Coral, Hollywood, California - 2005 - Ceremony, Bigoudi, Osaka, Japan 215
NEWS
Cristopher Cichocki’s ‘Rising Inversion’ grips viewers with phosphorescent glow Artist Cristopher Cichocki draws lines with a flashlight on his luminescent sculpture, “Rising Inversion,” the signature piece of the 11th annual Art & Nature program at north Main Beach Park in Laguna Beach on Thursday. (Don Leach / Staff Photographer) By Andrew Turner
Staff Writer | Contact
Nov. 4, 2023 12:58 PM PT
Beachgoers who came upon it simply couldn’t pass it and keep going.
A massive semicircular structure had been placed at Main Beach, due north of the boardwalk, and even in the daylight, its visitors stared perplexed.
Laguna Art Museum representatives filled them in, sharing that the scene before them was the featured exhibit for the institution’s 11th annual Art & Nature program.
6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 1/7 216
A crowd of guests waits to watch artist Cristopher Cichocki (in orange jacket) unveil “Rising Inversion” on Thursday. (Don Leach / Staff Photographer) Those who could were advised to stick around for sunset, when Coachella Valley artist Cristopher Cichocki’s headlining work would be officially introduced to the community.
Following a discussion by the artist to kick off the event, museum guests joined more members of the public patiently waiting to catch Cichocki’s sculpture, “Rising Inversion,” in full effect.
A look at the first reveal of Coachella Valley artist Cristopher Cichocki's "Rising Inversion," the featured exhibit of Laguna Art Museum's 11th annual Art & Nature program. @TheDailyPilot @CarolCormaci pic.twitter.com/L4pBL19s90 — Andrew Turner (@AndrewTurnerTCN) November 3, 2023
When the sun went down, Cichocki flashed a light over the sand and phosphorescent surface of the artwork, each wave of the mysterious wand-like device giving way to a new piece of what he called a “biomorphic light painting.” Gathered in the dark, a captive audience stood at rapt attention as the image came into being, its turquoise-tinted glow an homage to bioluminescence, an occurrence that happens every so often off the shore of Southern California. 6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 2/7 217
Artist Cristopher Cichocki’s “Rising Inversion” is set against a hillside at Main Beach Park in Laguna Beach. (Don Leach / Staff Photographer) The 3,000-pound structure, 12 feet tall and 40 feet long, dominated its location in front of a hillside above the surf line. Its depth ranged from 5 feet in the center to 1 foot at its edges, giving it a spherical appearance.
A high-density foam made the structure transportable. It was then sealed with concrete, a phosphorescent topcoat and sand from the shoreline of Laguna Beach.
While the artwork is located at Main Beach, placing it in front of the hillside and away from the downtown area was by design, Cichocki said.
6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 3/7 218
Artist Cristopher Cichocki begins the process of lighting his luminescent artwork “Rising Inversion” on Thursday. (Don Leach / Staff Photographer) “The phosphorescence is a pigment that I’ve been using in my work for almost two decades,” Cichocki said. “It’s a kind of custom varnish that I’ve created in relationship to this phosphorescent pigment. With just a matter of 30 minutes of sunlight, it will glow all night long. If you were to have zero light pollution, this thing would be looking as bright as this particular activation of the light painting.” Cichocki considers his work to be at the intersection of the natural world and industry. In 2022, he had the opportunity to exhibit and perform at the Coachella Valley Music and Arts Festival. “Circular Dimensions x Microscape,” his installation featuring 25,000 feet of PVC pipe, created a pavilion that served as his performance stage.
During its brief stay on Main Beach, “Rising Inversion” was the planned backdrop for an audiovisual performance by Cichocki on Saturday night.
6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 4/7 219
Artist Cristopher Cichocki walks to his featured exhibit “Rising Inversion” on Thursday in Laguna Beach. (Don Leach / Staff Photographer) “Circular Dimensions is my musical moniker,” Cichocki said. “It’s an audiovisual, ever-evolving series of performances that responds to the immediate site. I’ve been doing it for 10 years now, and there’s always some element of sound, some element of light, of video, kind of a multi-sensory environment.”
Cichocki said the sounds planned for Saturday night’s show included a combination of ambient sound, Gregorian chants and sounds heard in Laguna such as ocean waves and street traffic passing by in the dead of night. “If there’s nothing around and that car’s going down the vastness of Coast Highway, it actually sounds like a wave,” Cichocki added. “There’s this synthesis that occurs.”
6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 5/7 220
The sun sets on artist Cristopher Cichocki’s “Rising Inversion” in Laguna Beach on Thursday. (Don Leach / Staff Photographer) The final sunset for the work will fall on Sunday, which concludes this year’s Art & Nature festivities.
A graduate of Palm Desert High who went on to study at California Institute of the Arts, Cichocki said it was an honor to have his work featured in the Art & Nature program. He named off several headlining artists of the past, including Laddie John Dill, Lita Albuquerque and Phillip K. Smith III.
Julie Perlin Lee, executive director of Laguna Art Museum, said she consulted with former Art & Nature artists before landing on Cichocki as this year’s featured creative. She said that Cichocki had appeal as a multidisciplinary artist who had a history of being able to collaborate with multiple agencies on projects.
6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 6/7 221
Copyright © 2025, Los Angeles Times | Terms of Service | Privacy Policy | CA Notice of Collection | Do Not Sell or Share My Personal Information Artist Cristopher Cichocki draws lines with a flashlight on “Rising Inversion” at north Main Beach Park in Laguna Beach on Thursday. (Don Leach / Staff Photographer) “What was really fascinating to me is that Cristopher is an artist who is thinking on a huge timescale,” Perlin Lee said. “He thinks on geologic time, and that’s something that I think is really important for me, and I hope others are picking up on that when they see his project here, that we are very concerned with our environment today and our planet today. “So many of us are focused on the now, but I love that the undercurrent of Cristopher’s work is to think about the much bigger and broader picture, and not even just in terms of water and its scarcity here on Earth, but he also talks about in his work, he thinks about how water even got onto our planet in the first place when it was being formed.” Andrew Turner
Andrew Turner is a sports reporter for the Daily Pilot. Before joining the Pilot in October 2016, he covered prep sports as a freelancer for the Orange County Register for four years. His work also has been used by the Associated Press and California Rubber Hockey Magazine. While attending Long Beach State, he wrote for the college newspaper, the Daily 49er. He graduated with bachelor’s degrees in journalism and history. (714) 966-4611
6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 7/7 222
Cristopher Cichocki evolves the elements of ecology through light, sound, and post-industrial debris.
ARTS + CULTURE
Local Artist Cristopher Cichocki Provides a Glimpse
Inside The Elemental
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6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 1/17 223
May 28, 2025
Story by Shana Dambrot
An immersive array of light, painting, sculpture, and sound captured during Cristopher Cichocki's latest solo exhibition, Primordial Waters at The Elemental in Palm Springs.
PHOTOGRAPHY BY LANCE GERBER
Listen to this story:
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6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 2/17 224
For the better part of two decades, artist Cristopher Cichocki (pronounced cha-house-key) has been mining the dried-out seabeds and decaying infrastructures of the California desert — specifically the Coachella Valley and Salton Sea regions — gathering barnacles, emergency water canisters, misshapen fish skeletons, spiny succulents, and a variety of post-industrial debris to create a unique language of ecological elegy.
His latest exhibition, Primordial Waters at The Elemental in Palm Springs, was an interdisciplinary spectacle featuring paintings, sculpture, photography, projection, sound, and immersive environments, charting a conceptual narrative from prehistoric Paleozoic to futuristic fallout. (Primordial Waters closed in May, but Cichocki plans to mount a follow-up in October.)
6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 3/17 225
Cristopher Cichocki stands in front of his painting “Salt/Earth #2,” illuminated by UV light and glowing with phosphorescence, in his exhibition Primordial Waters at The Elemental.
6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 4/17 226
PORTRAIT BY VICTOR GONZALEZ
The Elemental itself is a fascinating node in Cichocki’s creative continuum. Founded in 2020 as a joint initiative between Cichocki and Catherine Dobler of Paris-based Fondation LAccolade, where he was an artist in residence, the expansive space functions as a contemporary art center, residency hub, and conceptual think tank with a growing educational program for high schoolers called New Generation Arts. “I was that kid,” Cichocki often says, referring to the desert youth who now benefit from mentorship opportunities with international artists and thinkers.
Cichocki’s long-form, multiyear approach to artmaking often unfolds in chapters. He revisits sites of ecological, cultural, and geological significance — the Salton Sea, the mud pots, the San Andreas Fault (where he also ran an outdoor residency called Epicenter Projects) — relentlessly investigating the intersection of art, ecology, and material science.
Cristopher Cichocki - Primordial Waters | PALM SPRINGS LIFE 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 5/17 227
A CalArts graduate who relocated from Wisconsin to Palm Desert with his family at age 10, he speaks of the Coachella Valley not as muse but as collaborator. He culls organic materials, intervenes with studio artifice and technology, and presents his findings in exhibitions and performances at venues such as the Palm Springs Art Museum and Lancaster Museum of Art & History (MOAH). His resume reads like a circuit map of experimental festivals and alternative biennales, from Coachella festival’s large-scale art program to Venice’s Biennale Urbana, São Paulo’s Museum of Image & Sound, Mexico City’s Zona Maco, and locations closer to his Palm Springs home.
The Elemental’s inaugural exhibition, The Gaia Hypothesis – Chapter One: Earth, Fire, Water, Air (2022), curated by Christopher Yggdre, celebrated lineages of influences and contemporaries, including Laura Grisi and Ana Mendieta, in dialogue with Cichocki’s work. It explored the classical elements through James Lovelock and Lynn Margulis’ 1970s theory that Earth behaves as a self-regulating organism.
Then, the group exhibition The Gaia Hypothesis – Chapter Two: Palm Trees Also Die (2023) examined sacred land stewardship through the lens of environmental collapse, with works addressing vanishing palm oases and the ancestral home of the Cahuilla people.
6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 6/17 228
View of the entrance of the exhibition The Gaia Hypothesis – Chapter One: Earth, Fire, Water, Air.
Installation view of the exhibition The Gaia Hypothesis – Chapter Two: Palm Trees Also Die. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 7/17 229
Series of photographs by Lance Gerber on view during the 2025 exhibition Modern/Desert at The Elemental. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 8/17 230
Photography by Glen Wexler on view during the 2025 exhibition Modern/Desert at The Elemental.
Immersive video by artist Mona Kuhn during the 2025 exhibition Modern/Desert at The Elemental. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 9/17 231
Primordial Waters is an evolving solo exhibition — overtly aquatic and lunar, in both material and poetic dimensions. He embraced not only the rippling blue Salton Seascape but also its hyper-salinated, post-human shimmer, encasing barnacles and debris from the shoreline in strangely alluring skins of chrome — sculptural works that read like relics of a lost civilization.
References to ancient and speculative technologies permeate the exhibition. Rusted Cold War emergency water canisters stamped “Property of the U.S. Government, 1953” rest alongside cinder blocks that evoke both brutalist fallout shelters and sacred desert architecture. Synthetic sand mingles with organic soil. Water, meant to save, instead seeps, rusts, and destroys. In his series Evaporation Lines, Cichocki renders old data-card topographies and patchwork grids in metallic watercolors, their surfaces catching light like liquid mercury. A cavernous black-light chamber cycles between daylight neutrals and hallucinogenic nocturnes, making the works appear to shape-shift under UV spectra.
At their core, they remain abstract, cosmic, molecular — fractal inversions of neurons, root systems, and galactic clusters.
There’s a robust art historical lineage here, one that includes light and space artists like Mary Corse and Lita Albuquerque, land art figures Robert Smithson and Nancy Holt, Vivian Suter’s canvas jungles, and Walter De Maria’s boxes of soil, bringing the vast terrain into human space and scale. Cichocki, too, brings the land inside — not only as material but as living, unpredictable systems. “We live not, in reality, on the summit of a solid earth, but at the bottom of an ocean of air,” he reminds us, citing Thales of Miletus’ prescient 600 B.C. observation on the intersection of natural science and human perception. Cichocki’s art translates that invisible connection into strikingly visible form. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 10/17 232
Cichocki’s Fractal Traces series of works on paper alongside his painting series Evaporation Lines, as seen in Primordial Waters.
His paintings and sculptural works embedded with sea salt, sand, and barnacles, as seen in Primordial Waters. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/ 11/17 233
Black-light causes a resin-cast aloe vera installation to glow in Primordial Waters.
Beyond the objects in the show, Primordial Waters comes alive through time-based elements. Video projections mimic lunar surfaces and phosphorescent marine life. A live microscope laboratory captures barnacles growing and mutating in real time. Audiovisual performances activate the space with soundscapes and ritual interventions. A resin-cast, Day-Glo aloe vera installation nods to both psychedelic bioluminescence and the practical vernacular of desert survival — and recalls the gorgeous and alarming impact of Cichocki’s earlier works.
Through The Elemental, Cichocki and Dobler have institutionalized their ethos. To date, more than 50 international artists have exhibited there, while high school mentees thread their own narratives into the desert’s cultural tapestry.
An annual residency program has brought practitioners like Sara Favriau, Marie-Luce Nadal, and Mona Kuhn into direct engagement with the region’s ecology. An upcoming expansion promises additional exhibition and performance space.
There’s a larger cosmology at work here — one where the desert is both graveyard and laboratory, where water is older than the sun, and where art might still function as witness and warning.
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Proposed location for installation of Rising Inversion – Ironwood Park, 47800 Chia Drive
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View from concrete path in park.
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CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: September 25, 2025
PREPARED BY: Mariela Salazar, Management Analyst
SUBJECT: RECEIVE AND FILE THE PARKVIEW OFFICE COMPLEX TENANT
UPDATE, ACKNOWLEDGING THE CONCLUSION OF TENANT LEASES
RECOMMENDATION:
Receive and file the Parkview Office Complex Report 2025, providing the City Council with the latest information on tenant occupancy and lease activity.
BACKGROUND/ANALYSIS:
This report is to inform the City Council of the plans for the Parkview Office Complex and to provide an update on the demolition of the two-story building to accommodate the future library.
The Parkview Office Complex (Complex), located adjacent to the Civic Center, has historically served as an office hub for government agencies, non-profit organizations, and private entities.
The Complex consisting of two buildings (the one-story single-tenant building, and a two-story multi-tenant building) until recently, provided stable tenancy and consistent rent revenue for the City of Palm Desert for over two decades.
In 2023, after many years of deferred maintenance, the future of the two-story building at the Complex was being evaluated by the City’s Economic Development team to determine marketability and the associated costs to bring it to current standards.
In March 2024, the City Council considered and ultimately decided to demolish the two-story building and use that site for the new Library. In anticipation of this transition, all remaining leases were modified to a month-to-month basis, not to exceed December 30, 2025. Staff has also proactively worked with tenants to identify relocation options and ensure continuity of operations. This effort has included direct coordination with local commercial brokers to identify available office spaces within the City to accommodate tenants’ needs.
The Capital Projects Department will oversee all aspects of demolition of the Parkview Building and the subsequent construction of the new Library.
Current Status:
As of September 2025, the two-story building remains partially occupied, with several tenants preparing for relocation in alignment with the lease expiration dates and the library’s capital improvement schedule.
239
City of Palm Desert
PARKVIEW OFFICE COMPLEX TENANT REPORT 2025
Tenant Unit No. Size Status
CV Association of Government Suite 212 988 SF Vacant
Anser Advisory Suite 132 345 SF Vacant
Golden Construction Suite 138 488 SF Vacating 9.30.25
CV Mountain Conservancy Suite 120 1,000 SF Vacant
Act for MS Suite 126 928 SF Vacant
Advantech Consultants Suite 110 1,250 SF Vacating 9.30.25 Congressman Calvert Suite 129 875 SF Vacant
Blieu Companies LLC Suite 117 1,227 SF Vacating 9.30.25 Desert Recreation District Suite 135 2,560 SF Vacant
California Dept of Food & Agriculture Suites 201/212 2,007 SF *See note below *Staff is assisting with office and government vehicle relocation for Food & Ag. Staff will return to the City Council to review a new lease that may accommodate parking 10 vehicles at the current site.
This would commence upon the conclusion of the existing office lease ending December 31, 2025, and execution of a new agreement between the City and State.
Overall, many of the remaining occupied suites will be vacant by the end of September. Staff continues to work closely with tenants and brokers to ensure successful transitions.
FINANCIAL IMPACT:
Upon completion of all tenant relocations and the demolition of the Parkview Office Complex two-story building, the City will no longer receive the associated rental revenue as part of the Enterprise Fund. Moving forward, the one-story building currently occupied by the Water Board and Rehabilitation Department have active 10-Year leases and will continue to generate revenue to support the Enterprise Fund. Staff is negotiating potential rental revenue through parking lease with the California Department of Food & Agriculture for 10 designated parking spaces.
Therefore, staff does not anticipate any direct impact to the General Fund for any Enterprise Fund related expenditures.
ATTACHMENTS:
1. Parkview Office Complex Report 2025
240
City of Palm Desert
Parkview Office Complex
Vacancy Rate Schedule by Suite
Sept 2025
Rentable Square Feet: 31,835
Square Feet Occupied: 6,298
% Occupied: 20%
% Vacant: 80%
Suite No. Tenant Square Ft.
10-101 Medium Conference Room -
10-104 Large Conference Room -
10-110 Advantec 1,250 Move Out Date 9/30/25
10-117 Blieu Companies LLC 1,227 Move Out Date 9/30/25
10-138 Golden Construction 488 Move Out Date 9/30/25
10-141 Small Conference Room -
10-201 State of California - Food & Ag 890
10-212 State of California - Food & Ag 1,117
10-214 Coachella Valley Association of Governments 1,326 Total Occupied Suites 6,298 sq/ft 20%
Suite No. Tenant Square Ft.
10-107 Vacant
10-113 Vacant
10-120
1,750
720
1,000
10-123
10-126
10-129
758
928
875
10-132
Vacant
Vacant
Vacant
Vacant
Vacant 1,345
10-135 Vacant 2,560
10-205 Vacant 5,730
10-209 Vacant 3,040
10-215 Vacant 4,507
10-219 Vacant 1,084
10-220 Vacant 1,240
Total Vacant Suites 25,537 sq/ft 80%
Vacancy Rate Summary
73-710 Fred Waring Drive- Two (2) Story Building
Occupied Suites
Vacant Suites
Move Out date 12/31/25
Move Out date 12/31/25
241
242
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: September 25, 2025
PREPARED BY: Mariela Salazar, Management Analyst
SUBJECT: RESOLUTION DECLARING CITY-OWNED PROPERTY LOCATED AT 72880 HIGHWAY 111 FORMERLY KNOWN AS THE SEARS BUILDING
AT WESTFIELD MALL, APN 640-140-020, AS SURPLUS LAND UNDER THE GOVERNMENT CODE SECTION 54221 AND FINDING THE ACTION
CATEGORICALLY EXEMPT FROM CEQA
RECOMMENDATION:
Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, DECLARING PURSUANT TO GOVERNMENT CODE SECTION 54221 THAT REAL PROPERTY OWNED BY THE CITY OF PALM DESERT LOCATED AT 72880 HIGHWAY 111 (APN 640-140-020), FORMERLY KNOWN AS THE SEARS BUILDING IS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE, AND FINDING THAT
SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), PURSUENT TO CEQA GUIDELINES SECTION 15312 (CLASS 12 – SURPLUS GOVERNMENT PROPERTY SALES), AND TAKING RELATED ACTIONS.” This action declares approximately 7.46 acres of city-owned property located on 72880 Highway 111 (APN 640-140-020), as surplus land in accordance with the California Surplus Land Act (SLA).
BACKGROUND/ANALYSIS:
On December 27, 2022, the City of Palm Desert purchased the former SEARS property, located at 72880 Highway 111, as part of a strategic economic development initiative. The property was acquired with the intent of ensuring local control in a key commercial corridor, supporting longterm redevelopment opportunities, and preventing prolonged vacancy at the prominent Highway 111 and Monterey Avenue intersection.
Pursuant to State law, public agencies must comply with the Surplus Land Act (SLA) prior to sale, lease, or transfer of property. The SLA requires local agencies to formally declare property as surplus through a City Council Resolution before initiating the required noticing process for affordable housing developers and eligible entities.
The SLA process as noted below does not authorize the disposition of the properties. Once the process is complete, staff will return to the City Council for approval to sell. If there is no interest in the properties, or if good faith negotiations are not successful, the City will have satisfied its SLA requirements, subject to review by HCD, and will be able to sell the properties on the open market.
243
City of Palm Desert
72880 HIGHWAY 111, FORMER DEARS BUILDING (APN 640-140-020)
SLA Process:
Staff is seeking approval from the City Council to initiate the disposition process through an Notice of Availability (NOA) and pursuant to the SLA for the City-owned parcels. As set forth below, staff is also seeking approval of the attached Resolution.
Environment Review:
Pursuant to the California Environmental Quality Act (CEQA), the proposal action is exempt from environmental review under CEQA Guidelines Section 15312 (Class 12 – Surplus Government Property Sales). The Property does not have significant value for wildlife habitat or other environmental purposes, and the use of the Property and adjacent property has not changed since the time of purchase by the public agency. Any future development or use of the Property by a purchaser will be subject to separate CEQA review by the appropriate lead agency at the time such development or use is proposed. This declaration of surplus land is therefore categorically exempt from further environmental review under CEQA.
FINANCIAL IMPACT:
An appraisal will be necessary to establish fair market value (FMV). Costs for the appraisal will be covered by available professional service funds in the Economic Development operational accounts. Once the SLA is completed and the property is sold at FMV, proceeds from the sale of the 7.46 acres will be deposited into the City’s Capital Project Funds, with a designated portion allocated to the Economic Development Fund. These funds may be used to support priority capital improvement projects or other Economic Development initiatives. 244
City of Palm Desert
72880 HIGHWAY 111, FORMER DEARS BUILDING (APN 640-140-020)
ATTACHMENTS:
1. Resolution declaring APN 640-140-020 as Surplus Land
2. Property map APN 640-140-020
245
246
RESOLUTION NO. 2025-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT DECLARING PURSUANT TO GOVERNMENT CODE SECTION
54221 THAT REAL PROPERTY OWNED BY THE CITY OF PALM
DESERT LOCATED IN THE SHOPS AT PALM DESERT MALL (APN
640-140-020), FORMERLY KNOWN AS THE SEARS BUILDIN, IS
SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE,
FINDING THAT SUCH DECLARATION IS EXEMPT FROM
ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA), PURSUANT TO CEQA
GUIDELINES SECTION 15312 (CLASS 12 – SURPLUS GOVERNMENT PROPERTY SALES), AND TAKING RELEVENT ACTIONS.
WHEREAS, the City of Palm Desert (“City”) is the owner in fee simple of that certain real property located within the Shops at Palm Desert Mall in the City of Palm Desert, County of Riverside, State of California Assessor’s Parcel Number 640-140-020 as further described in Exhibit A, attached hereto and incorporated herein by this reference (the “Property”); and
WHEREAS, under the Surplus Land Act, Government Code Section 54220 et seq.(“Act”), surplus land is land owned in fee simple by the City for which the City Council takes formal action in a regular public meeting declaring the land is surplus and not necessary for the City’s use. The land must be declared either surplus land or exempt surplus land; and
WHEREAS, under the Act, land is necessary for the City’s use if the land is being used, or is planned to be used pursuant to a written plan adopted by the City Council, for City work or operations; and
WHEREAS, the City has determined that the land is not being used, nor is it planned to be used pursuant to a written plan adopted by the City Council, for City work or operations; and
WHEREAS, the Property is approximately 324,957 square feet in size, is a vacant retail store (formerly Sears) and accompanying parking area within the Shops at Palm Desert Mall, and is not currently being used by the City; and WHEREAS, the City Council desires to declare that the Property is surplus land and not necessary for the City’s use; and
WHEREAS, the Act requires that before the City Council disposes of the Property or engages in negotiations to dispose of the Property, the City shall send a written notice of availability (“Notice of Availability”) of the Property to certain entities designated as recipients of the Notice of Availability (“Designated Entities”); and WHEREAS, the staff report presented to the City Council together with this Resolution contains the factual background and supporting information upon which the declaration and findings set forth herein are based;
247
Resolution No. 2025-___ Page 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert as follows:
SECTION 1. The above recitals are true and correct and are incorporated as a substantive part of this Resolution.
SECTION 2. The City Council finds that the Property is not necessary for the City’s use.
SECTION 3. The City Council hereby declares that the Property is surplus land pursuant to Government Code Section 54221(b)(1), and will be disposed of in accordance with the Act.
SECTION 4. The City Council directs the City Manager, or his designee, to issue a Notice of Availability to the Designated Entities in accordance with the Act.
SECTION 5. Pursuant to the California Environmental Quality Act (CEQA), The City Council finds that the sale of surplus property is categorically exempt from environmental review under CEQA Guidelines Section 15312 (Class 12 – Surplus Government Property Sales). The property does not have significant values for wildlife habitat or other environmental purposes, and the use of the Property and adjacent property has not changed since the time of purchase by the public agency.; and, the sale of the Property will not result in any physical changes to the environment. Any future development or use of the Property by a purchaser will be subject to separate CEQA review by the appropriate lead agency at the time such development or use is processed.
SECTION 6. The City Clerk of the City of Palm Desert is directed to file a Notice of Exemption pursuant to CEQA Guidelines Section 15062.
SECTION 7. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed. Such actions include issuing a Notice of Availability and negotiating in good faith in accordance with the requirements of the Act with any of the Designated Entities that submit a written notice of interest to purchase the Property in compliance with the Act.
SECTION 8. The City Clerk of the City of Palm Desert shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Palm Desert shall cause this Resolution and the City Clerk’s certification to be entered in the File of Resolutions of the Council of this City.
248
Resolution No. 2025-___ Page 3
ADOPTED ON , 2025.
ATTEST:
JAN C. HARNIK
MAYOR
___________________________
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2025-___ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on September 25, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on _______________. ________________________
ANTHONY J. MEJIA
CITY CLERK
249
Resolution No. 2025-___ Page 4
EXHIBIT A
PROPERTY DESCRIPTION
250
Resolution No. 2025-___ Page 5
(13} SOUTH 89° 55" 30" EAST,.207.5.2 FEET;
(14} NORTI-1mr cw 30• EAST, 22.50 FEET;
(15} SOUTH 89° 55" 30" EAST,5, 2_00 FEET;
(16} SOUTH oo•04"30" WEST, 137..43 FEET;
(17) NORTI-189° W .21" WEST, 120.0DFEET;
(18} SOUTH oo•04" 30" WEST 5.5.00 FEET;
(19} NORTI-189° W .21" WEST, 100.0DFEET:
(20} SOUTH oo•04"30'' WEST, 200..33 FEET;
(21} NORTI-186• 59139" WBST,19.2.11 FEET;
(22} NORTI-183• 04' 18" WBST; 175.41 FEET;
(23} NORTI-186• 59139" WBST,.207.5!1FEET TO THE BEGINNING OF A.TANGENT Oi..JRVE CONCAVE NORTHEASTERLY;
(24}THENCE NORTHWESTERLY ALONG,$,\ID CURVE talA.VlNG A RADUJS OF 18.00 REET, THRO!JGH A CENTRAL ANGLE OF 87 04' 09", AN ARC DISTANCE OF 27.l5 FEET;
(25.} NORTI-1OD' CW 30" EAST, rn.59 FEET;
(26} NORTI-189° 55' 30" WBST, M.00 FEET; TO THE POINT OF BEGINNING, THE ABOVE LEG.AL DESCRlPTION iS PURSUANT TO THAT OERTAIN CERTIFICATE OF COMPLIANCE REWR□ED JULY 9, HJ86, AS INSTRUMENT NO. "159865. AND RE-RECORDED NOVEMElER,6, 19!17, AS INSTRUMENT NO. 319672, BOTH OF OFFICIAL REOORDS
251
252
253
254
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: September 25, 2025
PREPARED BY: Ryan Gayler, Capital Projects Manager
SUBJECT: AWARD A TASK ORDER TO TKE ENGINEERING FOR GRANT
ADMINISTRATION AND DRAINAGE DESIGN SERVICES OF THE COOK STREET & GERALD FORD IMPROVEMENTS PROJECT (GDR00001)
RECOMMENDATION:
1. Award a task order to TKE Engineering, Inc., for grant administration and the design of drainage improvements to the intersection of Cook Street and Gerald Ford Drive in the amount of $743,000.
2. Ratify the execution of the Memorandum of Understanding between the Southern California Association of Governments and the City of Palm Desert, outlining the responsibilities of the parties regarding the grant funds.
3. Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, APPROVING THE EXECUTION OF AN AGREEMENT TO
RECEIVE FUNDING FROM THE REGIONAL EARLY ACTION PLANNING GRANT PROGRAM OF 2021.”
4. Authorize the City Attorney to make non-monetary changes to the task order and Resolution as necessary.
5. Authorize the City Manager to execute the task order and an addendum to the Memorandum of Understanding, refining the details of the MOU to match the proposed project.
BACKGROUND/ANALYSIS:
In 2023, the City of Palm Desert applied for a grant administered by the Southern California Association of Governments (SCAG). The grant is called Regional Utilities to Support Housing (RUSH), which is a pilot program under the Regional Early Action Planning (REAP) grant program. In December 2023, the City was awarded up to $8 million in grant funding, with a potential local match requirement of up to $6.5 million for drainage improvements along the northern boundary of the City. If the project will not utilize the entire award amount, the remainder of the grant funds will be reprogrammed to other projects by SCAG. The City initiated preliminary engineering, including hydrology and hydraulics, to determine the scope of potential projects.
The grant requires the project to be completely constructed by December 31, 2026.
In March 2025, the City Manager executed the original Memorandum of Understanding (MOU) with SCAG, securing grant funds while finalizing project scope and other key details. During the evaluation phase, several project alternatives were considered. However, most were ruled out due to significant land acquisition challenges. Primarily, private property owners were either unwilling to sell or imposed contingencies that made acquisition unfeasible. 255
City of Palm Desert
Authorize City Manager to execute a task order for the Cook Street & Gerald Ford Improvements
Through the preliminary engineering process, staff identified the Cook Street & Gerald Ford Retention Basin Project as the most viable and beneficial option for utilizing the SCAG grant.
The project aims to enhance transportation access during storm events, particularly for first responders stationed at the new fire station on Gerald Ford Drive. The primary goal is to reduce or eliminate flooding at the intersection of Cook Street and Gerald Ford Drive, an area where floodwaters can create access barriers for pedestrians, cyclists, and motorists. Flooding at this intersection can also impede access to the Cook Street interchange at Interstate 10. This project also meets the goals of the RUSH grant by encouraging infill housing development, giving builders confidence that both the development and its future residents will be protected from flood impacts.
With the project scope and estimated costs now finalized, the City is positioned to utilize $3,780,500 of the REAP 2.0 grant funding, with a local match of $195,000 as the City’s required contribution. The grant-funded portion will support the design of drainage improvements at the intersection and the construction of enhancements to the existing retention basin system located along the northern edge of the City, east of Cook Street (formerly known as the Mid-Valley Channel).
Also included in the design is a future retention basin on the north side of Gerald Ford Drive, along with a storm drain system to convey water from low-lying areas on the roadway. However, construction of the new retention basin and storm drain is not included in the current grantfunded scope, as the City has not yet acquired the necessary land. Moreover, due to the grant's expiration timeline, completing this portion of the project before the end of 2026 is not practicable.
The finalized project scope has been submitted to SCAG for approval, and SCAG is currently drafting a revised MOU to clearly reflect the updated project details. This MOU requires the City to adopt a resolution authorizing acceptance of the grant funds.
Given the complexity of grant administration and the condensed project timeline due to the grant expiration deadline, the City has requested a cost proposal for assistance from TKE Engineering, Inc., one of the City's on-call engineering consultants. These consultants were previously selected through a competitive procurement process, which included proposal evaluations and interviews by staff from multiple departments. The proposed scope of work includes grant administration, environmental documentation, and project design services, with a not-to-exceed cost of $743,000.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
Funds for this task order are available in the New Construction Fund (Fund 231) and are included in the approved FY 2025-26 Financial Plan and Capital Improvement Project (CIP) List. The grant operates on a cost-reimbursement basis, requiring the City to pay expenditures upfront 256
City of Palm Desert
Authorize City Manager to execute a task order for the Cook Street & Gerald Ford Improvements
and then submit invoices to SCAG for reimbursement. The table below outlines the project budget and expenditures to date:
Authorized Budgets
Date
Authorized Total
General
Fund
110
New
Const
Fund 231
Meas G
Fund 400
Preliminary Eng. Budget FY2023-24 4/1/2024 194,700 194,700 - - Eng. & Grant Admin Budget FY2025-26 7/1/2025 1,000,000 - 1,000,000 - Construction Budget FY2026-27 7/1/2025 8,500,000 - - 8,500,000 Construction Budget FY2027-28 7/1/2025 5,000,000 - - 5,000,000 Total Authorized Budget to Date 14,694,700 194,700 1,000,000 13,500,000 Authorized Expenditures
Date
Authorized Total
General
Fund
110
New
Const
Fund 231
Meas G
Fund 400
Q3 Consulting (Prelim Eng A47200) 4/1/2024 194,700 194,700 - - Total Authorized Expenditures to Date 194,700 194,700 - - Eng. & Grant Admin: TKE Engineering, Inc.* 743,000 - 743,000 - Remaining Project Budget Available 13,757,000 - 257,000 13,500,000 *This request
ATTACHMENTS:
1. Task Order- TKE GDR00001
2. Proposal
3. Resolution
4. M-035-25 REAP 2.0 RUSH Palm Desert MOU Executed
5. Vicinity Map
257
258
CITY OF PALM DESERT
TASK ORDER
Contract No / P.O. #:
Task Order No.:
Task Order Bonds Needed?: YES NO
Account No.:
Project No.:
Vendor No.:
Description of Work
Contract Purpose:
Contractor Name:
Project Manager:
This Task Order is hereby executed on:
The dollar amount for this task order is:
_________________________________________________________ dollars and ___/100 (___________) Estimated Completion Date:
The undersigned Contractor hereby agrees that it will provide all equipment, furnish all materials, except as may be otherwise noted above, and perform all work specified above in accordance with the Agreement identified above and will accept as full payment therefore in the amount shown above.
NOTE: No payments will be made prior
to City Manager or Council approval QC: _____
1. APPROVED BY:
____________________
City Manager 2. ACCEPTED BY: ______________________
Contractor
The Contractor is hereby authorized to perform the following work subject to the provisions of the Agreement identified above:
Retention Required?: YES NO
3. CERTIFIED FUNDS
AVAILABLE:
_____________________
Finance Director
A47461 P117104 ✔
✔
2314134-4400200 GDR00001 V0013783 Grant Administration, Design Engineering, and Environmental - Cook and Gerald Ford Ryan Gayler September 25, 2025 The work consists of the administration of the REAP 2.0 grant (SCAG), environmental compliance / regulatory permitting, and design of intersection improvements and drainage improvements at the retention basin system along the northerly edge of the City, east of Cook Street. The description of work is further defined in the proposal letter dated 9/11/2025.
Seven hundred forty-three thousand 00 $ 743,000.00 January 31, 2027 TKE Engineering, Inc. TKE Engineering, Inc. 259
260
September 11, 2025
Ryan Gayler, Capital Projects Manager
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, CA 92260
Subject: Proposal to Provide Professional Engineering Services for Design of Storm Drain and Regional Retention Basin Improvements
Dear Mr. Gayler,
The City of Palm Desert desires to retain professional engineering services for the construction of storm drain improvements and a regional retention basin to be installed on a City owned parcel adjacent to the railroad tracks immediately south of the Interstate 10 freeway and generally bounded between Cook Street, Gerald Ford Drive and the Los Arboles Apartment Complex. The project area currently experiences significant flooding in and around the intersection of Cook Street and Gerald Ford Drive during and after large rain events. The project is proposed to include preparation of two separate construction document packages for storm drain/channel improvements and the retention basin improvements. Construction will also be phased into 2 separate construction projects. The conceptual documents will be used to hold community meetings and obtain feedback from the local business owners and residents. Upon obtaining community comments, the City will provide ultimate direction for items to be incorporated into design.
Scope of Services
Our Scope of Services for the project is presented in the following paragraphs:
Task No. 1 – Project Administration
TKE’s Project Manager will be responsible for the entire project team. He will attend all meetings, prepare agendas and corresponding meeting minutes together with collection of signatures for meeting attendees (sign-in sheets). He will meet with the City at appropriate times and will meet as needed with agencies, residents, property owners, and utilities in addition to the meetings presented below. We will also update TKE’s project budget and schedule prior to each City meeting for discussion with staff.
Task No. 2 – Initial ‘Kick Off’ Meeting
Prior to commencement of services, we propose to meet City staff to review project obligations and to discuss all project requirements in detail. TKE’s Project Manager 73 - 9 9 3 H i g h w a y 1 1 1 , S u i t e 2 0 1 – P a l m D e s e r t – C A – 9 2 2 6 0 P h . ( 7 6 0 ) 8 9 5 - 1 9 4 9
w w w . t k e e n g i n e e r i n g . c o m
261
Letter to Ryan Gayler, City of Palm Desert (Cont.)
Proposal to Provide Professional Engineering Services for the Regional Retention Basin System
September 11, 2025 Page 2 of 9
and Project Engineer will attend the meeting to determine project protocol and obtain City record drawings.
Task No. 3 Records Research
We will research existing survey and utility records. The purpose of the records research is to assemble survey records to establish locations of street centerlines, street rights-of-way, and easements and determine locations of all existing utilities and improvements. The research will consist of assembling copies of assessors’ maps, tract maps, parcel maps, easement documents, monument ties, benchmark data, corner records, street improvement plans, and utility drawings. We will request the City provide copies of available pertinent City records, such as survey ties, benchmarks, and street, sewer, storm drain and/or water improvement plans. In addition, we will request the City provide a title report for the site.
We will notify Underground Service Alert to acquire a complete list of underground utility purveyors. For onsite work, the utility drawings will include existing drawings primarily provided from the City, and drawings and/or atlas maps from all private utility companies, and/or agencies.
We will send first utility notice letters to all identified utility companies and agencies requesting their data. We will maintain copies of the letters and correspondence for future reference. We shall also provide the City with a complete copy of all correspondence with all utility companies.
Task No. 4 Design Survey
We propose to use conventional survey to prepare the base construction drawings. Our field survey crew will locate existing street centerline monuments utilizing survey control data and set necessary aerial targets. The crew will measure the horizontal angle, horizontal distance, and vertical elevation difference between each survey monument. We will complete a traverse for each survey to ensure closure. Utilizing GPS survey methods, two first order horizontal monuments will be established for the project associating the survey to the NAD 83, California State Plane Coordinate System, Zone 5, Epoch 2011.0. The monuments will be adjusted to the California High-Precision Geodetic Network and its densification stations. Elevations will be tied to existing City benchmarks based on the NGVD 88 Datum. In addition, we will measure sewer and storm drain inverts. We will collect appropriate detail within the project limits and a minimum of one hundred (100) feet beyond the project site, as required, including channels, basins, spillways, access roads, slopes, walls, trees, landscaping, walkways, sidewalks, driveways, curbs, gutters, cross gutters, fire hydrants, water valves, manholes, water meters, signs, street lights, power poles, and all other visible features that may impact the construction of the proposed improvements.
262
Letter to Ryan Gayler, City of Palm Desert (Cont.)
Proposal to Provide Professional Engineering Services for the Regional Retention Basin System
September 11, 2025 Page 3 of 9
Task No. 5 Base Drawing Preparation
We will prepare the base construction drawings on 24” by 36” sheets with the City’s standard title block using AutoCAD Civil3D software, at a drawing scale of 1”=40’. The base construction drawings will include a plan view based on the accumulated conventional and aerial survey data. We will add the sheet north arrow, graphic scale, existing improvements and utilities (based on both assembled records and field data), property lines, public and private right-of-way, easement areas, assessor parcel numbers, street centerline, street names, building locations, water service locations; sewer manhole lids and water valve lids; cross gutters; driveways, pedestrian ramps; traffic stripes and legends; curb returns; details of private improvements, fences, gates, irrigation systems, mailboxes, trees and landscaping, and survey data to the drawings. Once the base drawings are complete, we will perform a careful field review to ensure all underground facilities are shown correctly.
Task No. 6 Hydrology/Hydraulic Analysis
TKE will prepare a preliminary project drainage study that will include all areas tributary to the project. We will estimate runoff quantities for 10-year, 50-year and 100-year storm event and needed drainage facilities and catch basins for the project area. The analysis will also determine basin sizing which will be analyzed in relation to the potential runoff volumes conveyed by the different storm frequencies.
The results of the drainage study will be assembled in a summary report. The report will include an executive summary, an introduction (including discussions on study area limits, existing runoff patterns, existing land uses, existing and proposed drainage infrastructure, and design criteria), and study scope (including discussions on hydrology methods used and system hydraulics) in accordance with Riverside County Flood Control and Water Conservation District standards.
The study will include calculation tables and figures necessary to support the report findings. We will include reference to existing reports adjacent to the project to ensure the system will be designed appropriately for any future funding requests.
Task No. 7 Preliminary Engineering
Preliminary engineering will include:
a. Master Plan and Other Document Review-TKE will review the City’s current drainage master plan and conceptual designs to determine design parameters.
Using the inflows and outflows maximum limits, basin capacity requirements will be determined for flood control.
b. Alternative Design Development-TKE anticipates that at least 2 different project design alternatives will be considered. The analysis of each alternative will consider factors such as environmental impacts, permitting requirements, storm drain improvement limits and basin sizing. Construction cost estimates 263
Letter to Ryan Gayler, City of Palm Desert (Cont.)
Proposal to Provide Professional Engineering Services for the Regional Retention Basin System
September 11, 2025 Page 4 of 9
and benefit cost analysis will be prepared for each alternative. All hydraulic calculations will be prepared using City approved software.
Task No. 8 Geotechnical Investigation
We would propose to retain Aragon Geotechnical Inc. (AGI) as a subconsultant to provide Geotechnical services for the project. AGI’s scope of services includes, mobilization with truck mounted drilling equipment, boring locations/elevations, utility locates, traffic control during drilling, drill and sample borings, Shelby Tube samples or blow counts in all borings at 5-foot intervals, laboratory testing, engineering analysis, and electronic boring logs.
Prior to the field investigation, AGI will prepare a plan showing the proposed boring locations. The plan will be submitted to the City for obtaining an encroachment permit to perform the borings. If traffic control is necessary when drilling, AGI will follow the City traffic control guidelines. AGI will also perform the following:
Δ Drilling, sampling and logging of necessary borings along roadway and below proposed culvert. AGI will notify Underground Service Alert. Borings include, the asphalt pavement thickness and base thickness will be noted during the boring operations.
Δ Design of street structural section using City provided traffic indices.
Δ Laboratory testing of representative soil samples to evaluate in-situ moisture content, density tests, infiltration rates, max density and optimum tests, sieve analysis, R-value, direct shear tests, consolidation and collapse tests and corrosivity characteristics of the on-site soils.
Δ Data compilation and geotechnical analysis of existing geotechnical maps, reports, and field and laboratory data to provide recommendations for pavement design. Analysis will include recommendations for new pavement section alternatives, based on the traffic indices and R-value testing.
Preparation of a report presenting findings, conclusions and recommendations pertaining to design, compaction requirements, subgrade preparation, and earthwork/embankment recommendations. In addition, the report will provide recommendations for asphalt pavement recycling and other recommendations, which would include cost saving treatment methods.
The report will also include
Δ Settlement and slope stability analysis for roadway fill areas and culverts and (updates there to).
Δ Suitability of existing soils to be excavated for reuse as embankment fill.
Task No. 9 Environmental Compliance
Tom Dodson and Associates (TDA) will prepare an Initial Study (IS) pursuant to the requirements of CEQA § 21080 and § 15060 through § 15065 of the CEQA Guidelines. Technical analyses will be conducted for each of the environmental 264
Letter to Ryan Gayler, City of Palm Desert (Cont.)
Proposal to Provide Professional Engineering Services for the Regional Retention Basin System
September 11, 2025 Page 5 of 9
factors, as warranted, and well-supported responses for all questions listed under each environmental factor in CEQA Guidelines will be provided.
The environmental review of the proposed project will be conducted at a design, construction and operation level of detail. The nature of the technical analyses to be undertaken will range from stand-alone technical studies such as those to be prepared. Focused analyses necessary to address specific questions under each environmental factor of the Environmental Checklist. Mitigation measures will be developed in proportion to the severity and probability of occurrence of the identified potentially significant effect.
It is their intent to work directly with the City Planning Staff assigned to the proposed project. Their approach also incorporates the need for multiple reviews of key documents (e.g., revisions to engineering and construction drawings and project specifications) and coordination with key components of the overall required services, to ensure that the document prepared is adequate and will best reflect the Lead Agency’s independent judgement. The close coordination between our Project Manager and City staff will also reflect the Lead Agency’s commitment to process and notice the anticipated IS/MND in a legally defensible and procedurally compliant manner.
Task No. 10 Preliminary Design Review Meetings
After the City has completed its review, we will meet with City staff to acquire Staff’s comments regarding project alternatives, project costs and alternative benefits. At the completion of the meeting, it is assumed that the City will select a project alternative to move into the design phase.
Task No. 11 Community Meetings
After completing the preliminary engineering, we will meet with City staff for discussion. Upon completion of the City’s review, TKE will work with City staff to begin planning for one public meeting. TKE will assist staff with scheduling and publishing of the meeting as required and will prepare all exhibits needed for the presentation. TKE will present the plan alternatives, discuss the pros and cons of each alternative and finally discuss the benefit cost analyses and recommended alternative. TKE will document all public comments for distribution to staff.
Task No. 12 60% Design
60% Design will include preparation of preliminary construction drawings, preliminary technical specifications, preliminary construction estimates.
Construction drawings will show proposed street, storm drain and basin improvements including locations of proposed storm drain pipe, channels, catch basins, basin slopes, access roads, inlet structures, spillways, curb, drive approaches, swales, and fencing. Proposed improvements will be designed in accordance with the 265
Letter to Ryan Gayler, City of Palm Desert (Cont.)
Proposal to Provide Professional Engineering Services for the Regional Retention Basin System
September 11, 2025 Page 6 of 9
City’s current design standards and specifications for ultimate street and drainage improvements.
For the drawings, we will prepare a title sheet, construction notes sheet, demolition plan sheets, drainage sheets, grading sheets, plan/profile for access road and curb and gutter, cross-section sheets, and necessary detail sheets.
The title sheet shall include the title of the job, a vicinity map showing the City in relationship to surrounding communities, a location map showing the project limits, a list of abbreviations used, benchmark data, general notes, construction notes and quantities, an index for the drawings, list of utilities with phone numbers, and references on the City’s standard title block.
The construction note sheet will show general construction notes and project specific requirements.
The demolition sheet will show existing improvement demolition including limits of removal. In addition, the plan will specify relocation of private improvements such as mailboxes, fences, drive approaches, etc. as required.
Construction sheets will show proposed site including locations of proposed inlet and outlet facilities, slopes, access roads, site limits, berms, and concrete structures. In addition, preliminary grades will be prepared to establish project grading requirements. The proposed improvements will be designed to minimize removals, grading and earthwork.
For drainage improvements, construction drawings will show proposed site including locations of proposed storm drain pipe, channels, headwalls and wingwalls, inlet and outlet facilities, slopes, access roads, site limits, berms, and concrete structures. In addition, preliminary grades will be prepared to establish project street regrading requirements. The proposed improvements will be designed to properly account for drain line installation and utilities.
Detail sheets will show inlet, outlet, and overflow structure details.
For the specifications, we will amend the City Standards Technical Provisions as required for the projects. The City standard specifications are supported by the Greenbook, State standard plans and specifications, and County Flood Control standards. The construction specifications will be prepared in Microsoft Word (2020 Version) format in accordance with City standards. Special provision will be added to the specifications as required to comply with regulatory agency requirements.
In addition, we will prepare quantity estimates for all proposed improvements prepared using an excel spreadsheet showing an itemized construction cost breakdown. Descriptions of work, unit prices, and quantities will be included in the spreadsheet.
Task No. 13 Regulatory Permitting Coordination
After 60% design is complete, plans and associated applications will be submitted to Union Pacific Railroad, Riverside County Flood Control and Water Conservation 266
Letter to Ryan Gayler, City of Palm Desert (Cont.)
Proposal to Provide Professional Engineering Services for the Regional Retention Basin System
September 11, 2025 Page 7 of 9
District, State Fish and Game, and the US Army Corps of Engineers, as appropriate.
TKE will track the permitting progress, meet with agency representatives as required and provide additional information as needed until permits are obtained.
Task No. 14 Coordination with Agencies/Utilities
After 60% design is complete, plans will be sent to agencies having facilities in the project areas requesting that they verify their facilities are shown correctly and that they furnish any construction requirements they desire. We will highlight each agency’s facilities and advise each of potential conflicts and relocation requirements.
We will request that they respond within two weeks and we will follow up with telephone calls to confirm all agency requirements have been incorporated. We will document all conferences with utilities and agencies and copy the City via e-mail.
Task No. 15 60% Design Review Meeting
After the City has completed its review, we will meet with City staff to acquire Staff’s comments.
Task No. 16 90% Design
90% design will include incorporation of City comments and final storm drain, basin and street design.
90% Design will be submitted with a project summary memorandum together with an updated project schedule, additional stakeholder meeting summary, if needed, and internal plan review documentation.
Task No. 17 90% Design Review Meeting
After the City has completed its review, we will meet with City staff to acquire Staff’s comments.
Task No. 18 Final Contract Documents
Final documents will include incorporation of City final comments, and final documents ready for public bidding. Final documents will include mylars and hard copy specifications with signatures and electronic copies of final documents.
Task No. 19 Final Coordination with Agencies/Utilities
After the final drawings are approved by the City, we will again submit them to all agencies/utilities having underground facilities in the project area requesting that they verify their facilities are shown correctly and we will advise them of the project construction schedule and relocation requirements. In addition, we will coordinate final relocation construction prior to project bidding. We will document all meetings and conferences with utilities and agencies.
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Letter to Ryan Gayler, City of Palm Desert (Cont.)
Proposal to Provide Professional Engineering Services for the Regional Retention Basin System
September 11, 2025 Page 8 of 9
Task No. 20 Grant Assistance
TKE will assist with grant administration in strict conformance with program requirements. Services will include:
Δ Review all City-Grant Agency contract documents.
Δ Prior to beginning to provide services, TKE will conference call with grant administrator to review implementation expectations.
Δ Assemble and submit initial documents to Grant Agency.
Δ Maintain project progress data and provide to Grant Agency.
Δ TKE will prepare a work schedule, which indicates the tasks, long lead work items, and the milestone dates to ensure the project meets the implementation requirements.
Δ Prepare progress invoices. The invoices will be sent electronically in draft format for Grant Agency’s project officer’s review. Upon notice that the invoice is consistent with requirements, TKE will submit invoices with supporting records including financial reports, and other records as needed.
Δ Quarterly progress reports-TKE will prepare quarterly progress reports including discussions of activities conducted, changed conditions encountered and their resolution, planned activities, request any needed special Grant Agency Assistance, and financial accounting of all project.
Δ Prepare forms for any change of scope, budget adjustment, schedule adjustment and progress reporting.
Δ Final Report-TKE will prepare a final report that will include a short project narrative describing the environmental and public health benefits of the project together with an assessment of how effective the project was in achieving the stated grant objectives within Grant Agency required time period after the conclusion of the project.
Task No. 21 Bidding and Construction Support
TKE will provide support during the bidding and construction phase. Work includes, but is not limited to, the following:
Δ Responding to questions during the project advertisement period, and log questions and responses. All communication will be directed to the Town for issuance to the bidders
Δ Attending pre-bid and pre-construction conference, job walk and field meetings, along with City staff. Attend construction coordination meetings, as requested by the City, to provide design clarifications or updates due to unforeseen field conditions or changes.
Δ Preparing addenda, as necessary, with coordination and issuance by the City and revise plans as-needed based on findings during the bidding phase Δ TKE will also review and evaluate contractor submittals and RFIs, including construction schedules and material submittals, to facilitate smooth project execution and clarification to construction documents. Respond to RFIs from the contractor during construction.
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Letter to Ryan Gayler, City of Palm Desert (Cont.)
Proposal to Provide Professional Engineering Services for the Regional Retention Basin System
September 11, 2025 Page 9 of 9
Δ Support City staff during construction phases, including design clarification and conflict resolution and change orders, as needed.
Fee
TKE’s fee to provide the scope of service described above is shown on the attached fee table breakdown. TKE will invoice monthly in accordance with our rate schedule and will not exceed our fee without prior approval from the City.
Thank you for the opportunity to submit our proposal to provide professional surveying services. If you have any questions, please contact me at (760) 895-1949.
Sincerely,
Terry Renner, P.E., P.L.S., Q.S.D.
Senior Vice President
TKE Engineering, Inc.
269
Total
Task No. Task Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ $
1. Project Administration 80 $ 14,000 48 $ 7,920 $ - $ - $ - $ - 80 $ 7,200 $ 29,120
2. Initial Kickoff Meeting 4 $ 700 4 $ 660 $ - 4 $ 620 $ - $ - 4 $ 360 $ 2,340
3. Records Research $ - 2 $ 330 $ - 4 $ 620 $ - $ - 12 $ 1,080 $ 2,030
4. Design Survey 2 $ 350 4 $ 660 $ - $ - $ - 80 $ 20,800 $ - $ 21,810
5. Base Construction Drawings 2 $ 350 8 $ 1,320 $ - 54 $ 8,370 80 $ 11,600 $ - $ - $ 21,640
6. Hydrology/Hydraulic Analysis 8 $ 1,400 40 $ 6,600 80 $ 12,800 64 $ 9,920 80 $ 11,600 $ - 8 $ 720 $ 43,040
7. Preliminary Engineering 8 $ 1,400 40 $ 6,600 32 $ 5,120 60 $ 9,300 80 $ 11,600 $ - 4 $ 360 $ 34,380
8. Geotechnical Investigation 2.) 4 $ 700 8 $ 1,320 $ - 8 $ 1,240 $ - $ - 8 $ 720 $ 26,530
9. Environmental Compliance 3.) 12 $ 2,100 24 $ 3,960 16 $ 2,560 24 $ 3,720 $ - $ - $ - $ 116,840
10. Preliminary Design Review Meeting 4 $ 700 4 $ 660 4 $ 640 $ - $ - $ - 2 $ 180 $ 2,180
11. Community Meeting 12 $ 2,100 12 $ 1,980 8 $ 1,280 8 $ 1,240 16 $ 2,320 $ - 24 $ 2,160 $ 11,080
12. 60% Design 4.) 64 $ 11,200 120 $ 19,800 80 $ 12,800 280 $ 43,400 320 $ 46,400 $ - 24 $ 2,160 $ 149,620
13. Regulatory Permitting Coordination 24 $ 4,200 40 $ 6,600 16 $ 2,560 24 $ 3,720 64 $ 9,280 $ - 16 $ 1,440 $ 77,300
14. 4 $ 700 8 $ 1,320 $ - 8 $ 1,240 $ - $ - 8 $ 720 $ 3,980
15. 60% Design Review Meeting 2 $ 350 2 $ 330 $ - $ - $ - $ - 1 $ 90 $ 770
16. 90% Design 4.) 40 $ 7,000 80 $ 13,200 40 $ 6,400 180 $ 27,900 220 $ 31,900 $ - 16 $ 1,440 $ 94,770
17. 90% Design Review Meeting 2 $ 350 2 $ 330 $ - $ - $ - $ - 1 $ 90 $ 770
18. Final Contract Documents 4.) 24 $ 4,200 40 $ 6,600 24 $ 3,840 80 $ 12,400 120 $ 17,400 $ - 12 $ 1,080 $ 47,830
19. 4 $ 700 8 $ 1,320 $ - 8 $ 1,240 $ - $ - 8 $ 720 $ 3,980
20. Grant Assistance 64 $ 11,200 80 $ 13,200 $ - 24 $ 3,720 $ - $ - 32 $ 2,880 $ 31,000
21. Bidding Assistance 16 $ 2,800 40 $ 6,600 $ - 24 $ 3,720 $ - $ - 16 $ 1,440 $ 14,560
22. 23. Subtotal: 380 $ 66,500 614 $ 101,310 300 $ 48,000 854 $ 132,370 980 $ 142,100 80 $ 20,800 276 $ 24,840 $ 735,570 Reimbursables (@1%):
1.)
$ 7,430
Total: $ 743,000
Rates: Notes:
Project Manager $ 175 /HR 1.) Reimbursables Include Cost for Prints, Copies, Mileage, Etc.
Project Engineer $ 165 /HR 2.) Aragon Geotechnical for Geotechnical Investigation Hydrology/Hydraulic Specialist $ 160 /HR 3.) Tom Dodson and Associates for Environmental Compliance Associate Engineer $ 155 /HR 4.) Knapp and Associates for Structural Design Assistant Engineer $ 145 /HR
Clerical $ 90 /HR
2-Man Survey Crew $ 260 /HR TKE Engineering, Inc.
Coordination with Agencies/Utilities
Final Coordination with Agencies/Utilities
$ 13,860
$ 22,550
$ 104,500
$ 199,650
$ 6,930
$ 49,500
$ 2,310
Associate Engineer Subconsultants
Hydrology/Hydraulic
Specialist
$
City of Palm Desert
Engineering Services for Design of Storm Drain and Regional Retention Basin Improvements Fee Schedule Breakdown
Project Manager Project Engineer Assistant Engineer 2-Man Survey Crew Clerical 270
RESOLUTION NO. 2025-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, APPROVING THE EXECUTION OF AN
AGREEMENT TO RECEIVE FUNDING FROM THE REGIONAL EARLY
ACTION PLANNING GRANT PROGRAM OF 2021
WHEREAS, the Regional Early Action Planning Grant Program of 2021 (“REAP
2.0”) program was established by the California state legislature as part of the 2021 California Comeback Plan under AB 140 to confront the statewide housing affordability crisis by building and expanding on the success of the REAP 2019 program by integrating housing and climate goals and allowing for broader planning and implementation investments to facilitate housing supply, choice, and affordability; and WHEREAS, REAP 2.0 funded activities must meet the program objectives, which are to accelerate infill development that facilitates housing supply, choice and affordability; affirmatively further fair housing; and reduce vehicle miles traveled. Further, all residential development must be in areas meeting the definition for “In Fill” provided in the REAP 2.0 state guidelines; and
WHEREAS, the Southern California Association of Governments (“SCAG”) issued a call for applications under the Projects to Accelerate Transitional Housing (”PATH”) Program; and
WHEREAS, SCAG intends to award $3,780,500 to the City of Palm Desert to complete and deliver the Cook Street and Gerald Ford Improvements project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:
SECTION 1. That the foregoing Recitals are true and correct and are incorporated herein by this reference.
SECTION 2. The City of Palm Desert hereby authorizes and directs such actions as are necessary and appropriate to accept the grant award of REAP 2.0 funds in the amount of $3,780,500 from SCAG.
SECTION 3. That the City Manager or his designee is hereby authorized and directed to:
1. Execute an agreement with SCAG and any amendments thereto;
2. Take all reasonably necessary and appropriate actions to complete the Cook Street and Gerald Ford Improvements project, fulfill all obligations required, and seek reimbursement of grant funds awarded, pursuant to the above referenced call for applications and in a manner consistent and in compliance with the REAP 2.0 guidelines and objectives and PATH Program guidelines and all applicable state and federal statutes, rules, regulations, and laws. 271
Resolution No. 2025-____ Page 2
ADOPTED ON ________________, 2025.
JAN C. HARNIK
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2025-__ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on September 25, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________.
ANTHONY J. MEJIA
CITY CLERK
272
MEMORANDUM OF UNDERSTANDING
No. M-035-25
SCAG Overall Work Program (OWP) No: 305-4925.01
Federal/State Awarding Agency: State of California, Department of Housing and Community Development
Funding Source: Regional Early Action Planning Grants Program of 2021 (REAP 2.0) Sub-Recipient Name: City of Palm Desert
Sub-Recipient’s UEI No: XLREHY4MDGW4
Total Amount of Federal Funds Obligated to Sub-Recipient: $0 Total Amount of Non-Federal Funds Obligated to Sub-Recipient: $8,000,000 Total Amount of the Sub-Award: $8,000,000
Subaward Period of Performance Start Date: See Section 37 Subaward Period of Performance End Date: June 30, 2026
Type of Contract: Project Specific
Method of Payment: See Section 6 of this MOU
Project R&D: N/A
Indirect Cost Rate for the Award: N/A
Fringe Benefits Cost Rate for the Award: N/A
Subaward Project Title: City of Palm Desert REAP 2.0 Regional Utilities Supporting Housing Program Grant – Capital Projects
Subaward Project Description: City of Palm Desert will utilize REAP 2.0 funding for a project that provides investments in utility infrastructure planning and capital improvements that will support jurisdictions in meeting the housing production goals defined in the 6th cycle RHNA, housing elements and REAP 2.0 Program objectives.
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 273
MOU No. :M-035-25
SCAG Project/OWP No.:305-4925.01
MEMORANDUM OF UNDERSTANDING
No. M-035-25
BETWEEN THE
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS
AND CITY OF PALM DESERT
FOR REAP 2.0 REGIONAL UTILITIES SUPPORTING HOUSING PROGRAM GRANT (SCAG Project/OWP No. 305-4925.01)
This Memorandum of Understanding (“MOU”) is entered into by and between the Southern California Association of Governments (“SCAG”) and City of Palm Desert (“Sub-Recipient”), for a Regional Utilities Supporting Housing (“RUSH”) Program Grant. SCAG and Sub-Recipient may be individually referred to as “Party” and collectively as “Parties.”
RECITALS
WHEREAS, the Regional Early Action Planning Grants Program of 2021 (“REAP 2.0”) was established with a principal goal to make funding available to Metropolitan Planning Organizations (“MPO”) and other regional entities for transformative planning and implementation activities that meet housing and equity goals, reduce Vehicle Miles Traveled per capita, and advance implementation of the region’s Sustainable Communities Strategy or Alternative Planning Strategy, as applicable; WHEREAS, the California Department of Housing and Community Development (“HCD”) administers REAP 2.0 in accordance with Health and Safety Code sections 50515.06 to 50515.10 (“Statutes”) and REAP 2.0 guidelines for MPO applicants released by HCD pursuant to the Statutes (“REAP 2.0 Guidelines”);
WHEREAS, SCAG is the federally designated MPO for Southern California, primarily responsible for the development of a Regional Transportation Plan/Sustainable Communities Strategy (“RTP/SCS” also known as “Connect SoCal”) for the counties of Imperial, Los Angeles, Orange, San Bernardino, Riverside, and Ventura;
WHEREAS, HCD awarded funds to SCAG under REAP 2.0;
WHEREAS, SCAG’s Regional Council authorized funding for the RUSH Program and approved the guidelines for the RUSH Program (“Program Guidelines”); WHEREAS, SCAG released a competitive Call for Applications for the RUSH Program; WHEREAS, Sub-Recipient, eligible for funds under the RUSH Program, developed and submitted a proposed project for the RUSH Program (“Project”);
WHEREAS, SCAG reviewed the Project and determined the Project to be consistent with the REAP 2.0 Guidelines and Program Guidelines, and approved the Project to receive funding; and WHEREAS, the purpose of this MOU is to describe the responsibilities of the Parties.
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 274
MOU No. :M-035-25
SCAG Project/OWP No.:305-4925.01
NOW THEREFORE, IT IS MUTUALLY AGREED THAT:
1. Recitals and Exhibits
The Recitals and all exhibits referred to in this MOU are incorporated herein by this reference and made a part of the provisions of this MOU.
2. Term
The Term of this MOU shall begin on the Effective Date and continue until June 30, 2026, (“Completion Date”), unless terminated earlier as provided herein. Time is of the essence in the performance of services under this MOU.
3. Scope of Work and Sub-Recipient’s Responsibilities
a. Sub-Recipient shall be responsible for implementing the Project in accordance with the “Scope of Work,” attached as Exhibit A.
b. Interim deliverables and tasks, including budgets and schedules, required to implement the Scope of Work shall be documented using the “Scope of Work Approval Form,” attached as Exhibit B (“SOW Approval Form”). The SOW Approval Form must be signed by SCAG Project Manager, SCAG Department Manager, SCAG Deputy Director or their designee, and Sub-Recipient prior to the performance of the work outlined in the SOW Approval Form. The SOW Approval Form may be signed by way of a manual or authorized digital signature, or a signature stamp. The SOW Approval Form may be used to document interim deliverables and interim deliverable budgets and schedules but may not be used to modify the deliverables and budget noted in this MOU. The SOW Approval Form may be amended subject to approval by SCAG. No amendment to the SOW Approval Form shall be valid unless made in writing and signed by the Parties. If there is a conflict between the SOW Approval Form and this MOU, this MOU shall prevail. c. Sub-Recipient must demonstrate a clear and significant nexus to all the REAP 2.0 Goals and Objectives, as described in Section 9 of this MOU, and must carry out the Project to meet the REAP 2.0 Goals and Objectives. Any lack of action or action inconsistent with REAP 2.0 Goals and Objectives may result in review and could be subject to modification of funding, termination of this MOU, and repayment of the Grant Funds.
d. In compliance with Section 3.e., Sub-Recipient may procure and manage one or more Consultants to ensure the Scope of Work, as outlined in the most current fully executed SOW Approval Form, is fully performed and the Project is completed in compliance with this MOU and all applicable laws and regulations.
e. As a recipient of federal and state funds, SCAG has the responsibility for ensuring that its procurement process complies with all applicable federal, state and funding requirements. For all agreements entered into containing funds provided under this MOU or to perform work under this MOU, Sub-Recipient shall procure in compliance with all applicable federal, state, and local laws Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 275
MOU No. :M-035-25
SCAG Project/OWP No.:305-4925.01
and regulations. All REAP 2.0 funded procurements must be conducted using a fair and competitive procurement process and sole source procurements are expressly prohibited. [ f. The term “Consultant(s)” shall hereinafter refer to all entities that Sub-Recipient procures, manages, or otherwise enters into contracts or agreements with, in furtherance of the Project or this MOU regardless of the timing, nature of service/work provided or type of organization, including but not limited to government entities, political subdivisions, subrecipients, consultants, contractors, service providers, suppliers, independent contractors, professionals, managers, architects, engineers, and subcontractors.
g. Upon request, Sub-Recipient shall provide information to the SCAG Project Manager regarding any existing solicitation including but not limited to Requests for Proposals, Invitation for Bids, Request for Qualifications, and Requests for Quotation (collectively “RFP”). For new RFPs developed or finalized after the Effective Date of this MOU, Sub-Recipient shall provide information to the SCAG Project Manager and obtain SCAG Project Manager’s written approval on any final RFP prior to its issuance. SCAG may require documentation of RFPs and Notices to Proceed before approval of invoice reimbursement.
h. When requested, Sub-Recipient shall provide other related documentation of compliance, as determined by SCAG, with applicable procurement requirements and terms and conditions of this MOU within ten (10) days of the request.
i. Sub-Recipient shall be responsible for conducting a complete detailed review of Consultant(s)’ invoices prior to payment. The review shall include, but not be limited to, ensuring: (1) the work included in the invoice is correctly invoiced and supported; (2) hours worked equal hours invoiced; (3) charged rates are equal to the contracted rates; (4) materials and services were received; and (5) that the work performed is consistent with the Scope of Work. Upon review, Sub-Recipient shall pay Consultant(s)’ invoices prior to submitting invoices to SCAG for reimbursement. j. Sub-Recipient shall be accountable to SCAG and HCD to ensure Consultant(s)’ performance. SubRecipient’s Project Manager shall be responsible for final approval of Consultant(s)’ deliverables consistent with the Scope of Work, as outlined in the most current fully executed SOW Approval Form; provided, however, that prior to approving a deliverable from the Consultant(s), SubRecipient’s Project Manager shall consult with SCAG’s Project Manager. k. Any and all notices, reports, or other communications required by this MOU, including but not limited to invoices, accounting reports, supporting documentation, and monitoring reports, shall be submitted under the penalty of perjury.
l. Sub-Recipient shall be responsible for ensuring compliance with all applicable California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) requirements, and, as applicable, shall serve as the implementing agency for environmental approval(s).
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 276
MOU No. :M-035-25
SCAG Project/OWP No.:305-4925.01
4. Project Management
a. All work under this MOU shall be coordinated with SCAG and Sub-Recipient through the Project Managers.
b. For purposes of this MOU, SCAG designates the following individual as its Project Manager:
Jessica Reyes Juarez
Associate Regional Planner
(213) 236-1802
[email protected]
SCAG reserves the right to change this designation.
c. For purposes of this MOU, Sub-Recipient designates the following individual(s) as its Project Manager:
Ryan Gayler
Capital Projects Manager
(760) 776-6393
[email protected]
Sub-Recipient reserves the right to change this designation upon written notice to SCAG.
5. Funding
Grant Funds: $8,000,000
Match Contribution: $6,500,000
a. SCAG’s contribution to the Project is funded wholly with REAP 2.0 funds, in an amount not to exceed $8,000,000 (“Grant Funds”).
b. Sub-Recipient shall provide a minimum of $6,500,000 of match in support of the Project ("Match Contribution"). Match Contribution must be identified in writing and if applicable the associated commitments obtained, before the Sub-Recipient can incur any costs for which the Sub-Recipient will request reimbursement. Match Contribution must adhere to the terms and conditions of this MOU. Nothing shall prohibit the Sub-Recipient from providing additional Match Contribution to the Project, but the Grant Funds contributed by SCAG shall not exceed the Grant Funds, regardless of any increased Match Contribution. Match Contribution may be Cash or In-Kind.
i. Match Contribution may be Cash or In-Kind.
1. For the purposes of this MOU, Cash Match Contribution is an actual cash contribution. Cash Match Contribution shall be substantiated by identifying its source, including a contact name, address and telephone number and the task(s) to which the Cash Match Contribution will be applied.
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MOU No. :M-035-25
SCAG Project/OWP No.:305-4925.01
2. For the purposes of this MOU, In-Kind Match Contribution is the value of any real property, equipment, goods, or services contributed to the Project that would have been allowable costs if the Sub-Recipient was required to pay for such costs with Grant Funds. In-Kind Match Contribution may consist of personnel time, contributions provided by third parties, including labor, vouchers, equipment or other tangible or allowable real property. InKind Match Contribution shall be substantiated by providing the amount, a description, documented market or book value, and its source or owner, including a contact name, address and telephone number and the task(s) to which the In-Kind Match Contribution will be applied.
c. SCAG shall not be obligated to make payments for any costs that exceed the Grant Funds. SCAG shall not be obligated to pay for any increase in costs which exceeds the budget included in this MOU and the most current fully executed SOW Approval Form. SCAG shall not be obligated to make payments from any source other than funds provided by HCD to SCAG pursuant to REAP
2.0. In the event HCD terminates its agreement to provide funds or reduces the funds provided, SCAG shall have the right to terminate this MOU, in accordance with Section 17, or to amend this MOU to reflect the changes in funding.
d. SCAG shall make payments to Sub-Recipient only for work performed as part of the Scope of Work, as outlined in the most current fully executed SOW Approval Form, and consistent with REAP 2.0 Goals and Objectives, REAP 2.0 Guidelines, and Program Guidelines. e. SCAG reserves the right, in its sole discretion, to discontinue funding the Project and/or terminate this MOU as described in Section 17.
f. Any costs for which Sub-Recipient receives reimbursement or credit that is determined by a subsequent audit or other review by either SCAG, HCD, other State authorities or federal cognizant agency to be ineligible or otherwise unallowable, shall be repaid by Sub-Recipient within thirty (30) calendar days of Sub-Recipient receiving notice or a written demand for reimbursement from SCAG. Such repayment may include interest, penalties, or related fees, as determined by HCD or other State authorities. Should Sub-Recipient fail to reimburse unallowable costs due to SCAG within thirty (30) calendar days of demand, or within such other period as may be agreed between both parties hereto, SCAG is authorized to withhold and/or off-set future payments to Sub-Recipient.
6. Invoices
a. This MOU is a Cost Reimbursement agreement. Amounts claimed must reflect the actual incurred and paid cost of completed work. The actual incurred and paid costs may not exceed the Project’s budget set forth in this MOU and the most current fully executed SOW Approval Form. All invoices submitted to SCAG for payment shall be e-mailed to [email protected] (file cannot exceed 10MB) and copy the SCAG Project Manager. All invoices submitted to SCAG for the Project shall reference the OWP Project Number (OWP No. 305-4925.01).
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b. By the twenty-first day following the start of a new month (i.e., January 21, February 21, March 21), Sub-Recipient shall submit an invoice to SCAG using the electronic “Invoice Template” in accordance with the invoice submittal instructions and requirements noted in Exhibit C. Invoices must be submitted in both PDF format and Excel file format. Invoices shall contain a progress report portion which serves to confirm that the services have been performed and can be paid. All invoiced costs must be substantiated, by providing documented support for the expense incurred, such as copies of payroll reports, paid invoices, and proof of payment. The invoice progress report shall serve as the formal progress report for the Project and shall be signed by the Sub-Recipient.
The progress report shall include, in narrative form, a description of services performed by SubRecipient’s staff and Consultant(s) as well as progress toward completion of tasks related to the Project for the invoiced period and progress achieved toward the REAP 2.0 Goals and Objectives.
SCAG shall review invoices for compliance with this MOU. If SCAG determines that an invoice is compliant with this MOU, SCAG shall approve the invoice and issue payment to the SubRecipient. If SCAG determines that an invoice is not compliant with this MOU or the most current fully executed SOW Approval Form, SCAG may withhold and/or off-set future payment(s) to the Sub-Recipient.
c. SCAG shall reimburse Sub-Recipient as promptly as SCAG’s fiscal procedures permit, using Electronic Fund Transfer, available at: ACH Vendor Payment Authorization Form, upon receipt of itemized invoices submitted in accordance with this MOU. Sub-Recipient shall complete the ACH Vendor Payment Authorization Form and email it to [email protected], prior to executing this MOU.
d. Incomplete or inaccurate invoices may be returned to Sub-Recipient for correction without payment until corrected and approved. SCAG may, at its discretion, disallow any unsupported costs and process the invoice. If Sub-Recipient corrects the error, the disallowed items can be included in the next set of invoices.
e. Travel expenses and per diem rates are not to exceed the rates and policies specified by the State of California Department of Human Resources, which can be found at:
https://www.calhr.ca.gov/employees/pages/travel-reimbursements.aspx.
The Parties acknowledge that SCAG’s fiscal year is from July 1 to June 30. Sub-Recipient agrees to submit all invoices to SCAG for services rendered through June 30th, no later than July 21st during the Term of this MOU. SCAG shall not be obligated to pay Sub-Recipient for any invoice received after such date.
f. Sub-Recipient shall submit its final invoice to SCAG within thirty (30) days of the completion of the Project, but no later than within thirty (30) days after all Grant Funds have been expended.
SCAG shall not be obligated to pay-Sub Recipient for any invoice received after such date. g. Sub-Recipient will require that its Consultant(s) pay any contractors and subcontractors for satisfactorily completed work no later than ten (10) days of receipt of each payment from SubRecipient. The ten (10) calendar days period is applicable unless a shorter period is required by applicable law.
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7. Reporting
a. At any time during the term of this MOU, SCAG may request additional information, as needed, to demonstrate satisfaction of all requirements identified in the MOU and the most current fully executed SOW Approval Form.
b. By February 10 of each year following receipt of funding pursuant to this MOU, Sub-Recipient shall submit an Annual Report using the “Report Template,” attached as Exhibit D. The Annual Report shall include, in narrative form, a description of services performed by Sub-Recipient’s staff and Consultant(s) as well as progress toward completion of tasks related to the Project for the prior year, a reporting of all costs incurred for that period, and progress achieved toward the REAP
2.0 Goals and Objectives.
c. When a Project is finalized, and no later than the Completion Date, Sub-Recipient shall submit a Close-Out Report for the Project. At the time of the execution of this MOU, HCD has not provided the requirements for the Close-Out Report due to HCD by all grantees at the conclusion of the grant performance period. Therefore, the Close-Out Report format required by SCAG of SubRecipient is not available at this time, but will be provided when it becomes available. d. All reports submitted to SCAG shall reference the OWP Project Number (OWP No. 305-4925.01).
8. Accounting
a. Sub-Recipient shall establish and maintain an accounting system and reports that properly accumulate incurred Project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (“GAAP”), enable the determination of incurred costs as interim points of completion, and provide support for payment vouchers and invoices. b. Sub-Recipient shall establish a separate ledger account for receipts and expenditures of Grant Funds and maintain expenditure details in accordance with the Scope of Work, as outlined in the most current fully executed SOW Approval Form.
c. Sub-Recipient shall maintain documentation of its normal procurement policy and competitive procurement bid process and completed procurements, and financial records of expenditures incurred during the course of the Project in accordance with GAAP.
9. Allowable Uses of Grant Funds
a. Grant Funds shall be expended in compliance with the REAP 2.0 Goals and Objectives. i. REAP 2.0 Goals (“Goals”) are to invest in housing, planning, and infill housing-supportive infrastructure across the entire state in a manner that reduces Vehicle Miles Traveled (“VMT”), increases housing affordability, and advances equity. More detailed information on the Goals can be found in Section 201 of the REAP 2.0 Notice of Funding Availability (“NOFA”) and Final Guidelines for MPO Applicants and are made a part of the provisions of this MOU as if set forth in full.
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ii. REAP 2.0 Objectives (“Objectives”) include: (1) accelerating infill development that facilitates housing supply, choice, and affordability; (2) affirmatively furthering fair housing; (3) reducing vehicle miles traveled. More detailed information on the Objectives can be found in Section 202 of the REAP 2.0 NOFA and Final Guidelines for MPO Applicants and are made a part of the provisions of this MOU as if set forth in full. b. Grant Funds shall only be used by Sub-Recipient for activities approved by SCAG and included in the Scope of Work, as outlined in the most current fully executed SOW Approval Form. c. Grant Funds may not be used for administrative costs of persons employed by Sub-Recipient for activities not directly related to eligible activities. d. There must be a strong implementation component for the funded activity through REAP 2.0, including, where appropriate, agreement by Sub-Recipient to submit the completed planning document or effort to the applicable board, council, or other entity for adoption or approval. If Sub-Recipient does not formally request adoption or approval of the funded activity, it may be subject to repayment of the Grant Funds.
10. Work Products
a. For purposes of this MOU, “Work Products” shall mean all deliverables created or produced under this MOU including, but not limited to, all deliverables conceived or made either solely or jointly with others during the term of this MOU and during a period of six months after the termination thereof, which relates to the Project. Work Products shall not include real property or capital improvements. Work Products includes all deliverables, inventions, innovations, improvements, or other works of authorship Sub-Recipient or Consultant(s) may conceive of or develop in the course of this MOU, whether or not they are eligible for patent, copyright, trademark, trade secret or other legal protection.
b. Sub-Recipient shall submit one (1) electronic copy of all Work Products associated with the Project to the assigned SCAG Project Manager.
c. SCAG shall own all Work Products and may, at its sole discretion, grant to Sub-Recipient a perpetual royalty-free, non-assignable, non-exclusive and irrevocable license to reproduce, publish or otherwise use Work Products related to the Project and developed as part of this MOU; provided, however, that any reproduction, publishing, or reuse of the Work Products will be at Sub-Recipient’s sole risk and without liability or legal exposure to SCAG.
11. Amendments
No amendment or variation of the terms of this MOU shall be valid unless made in writing and signed by the Parties. If an amendment is to become effective before the date of full execution by the Parties, the effective date of such amendment shall be no earlier than the date that SCAG received the request.
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12. Notices
Any notice or notices required or permitted to be given pursuant to this MOU may be personally served on the other Party by the Party giving such notice, or may be served by certified mail, return receipt requested, to the following addresses:
To SCAG: Cindy Giraldo
Chief Financial Officer
Southern California Association of Governments
900 Wilshire Blvd., Suite 1700
Los Angeles, CA 90017
(213) 630-1413
[email protected]
SCAG reserves the right to change this designation.
To Sub-Recipient:L. Todd Hileman
City Manager
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
760-776-6488
[email protected]
13. Insurance
a. Sub-Recipient, at their own expense, shall procure and maintain policies of insurance, or provide evidence of self-insurance, of the types and amounts below, for the duration of the MOU. The policies shall state they afford primary coverage.
Insurance Type Requirements Limits
General Liability Commercial General
Liability insurance with
coverage at least as broad as
Insurance Services Office
form CG 00 01.
Not less than $5,000,000 per occurrence,
$10,000,000 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.
Automobile
Liability
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 Sub-Recipient arising out of or
in connection with work to be performed under
this MOU, including coverage for any owned,
hired, non-owned, or rented vehicles, in an
amount not less than $5,000,000 combined single
limit for each accident.
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Workers’
Compensation/
Employer’s Liability
Workers’ Compensation
insurance as required by the
State of California and
Employer’s Liability
Insurance. Not required for
sole proprietors or SubRecipient with no
employees.
Including Occupational Diseases in accordance
with California Law and Employers’ Liability
Insurance with a limit of not less than $1,000,000
each accident.
Professional
Liability Insurance
Professional Liability (Errors
and Omissions) insurance
appropriate to the SubRecipient’s profession.
With limits of not less than $1,000,000 per
occurrence. In addition, it shall be required that the
professional liability insurance policy remain in
effect for three (3) years after the Completion Date
of this MOU.
Builders Risk Upon commencement of
construction and with
approval of SCAG, SubRecipient shall obtain and
maintain builder’s risk
(course of construction) for
the entire duration of the
Project. Not required for
Projects without
construction.
Sub-Recipient shall purchase and maintain
property insurance written on a builder’s risk
“Special Form Cause of Loss” or equivalent
policy form in an amount not to exceed amount
of the Contract, plus the cost of materials supplied
or installed by others on a full replacement cost
basis. The Builder’s Risk policy shall include a
soft cost endorsement that covers soft costs equal
to twenty percent (20%) of the Contract’s full
value. Soft costs are defined as certain expenses,
in addition to labor and materials, required to
complete the Project that has been delayed due to
unexpected physical damage and include, but are
not limited to, the following: legal/accounting
fees, design or other professional fees, financing
costs, taxes, general administration, lease
expenses, permit fees and insurance premiums.
This insurance shall include the interests of the
Additional Insureds as named below, SubRecipient and the subcontractors of every tier on the Project as insureds. The insurance shall cover
without limitation, loss or damage to the Work
arising from the perils covered under “Special
Form Cause of Loss” form coverage including,
without duplication of coverage for theft, fire,
lightning, explosion, or hail, smoke, aircraft or
vehicles, riot or civil commotion, vandalism,
malicious mischief, collapse, earthquake, flood,
windstorm, false-work, testing and delay of
startup, temporary buildings, property in transit
and while stored at a temporary location, debris
removal including demolition occasioned by
enforcement of any applicable legal
requirements, and shall cover reasonable
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compensation for Sub-Recipient’s services and
expenses required as a result of such loss. During
the Project construction period, Sub-Recipient
and its subcontractors shall mutually waive all
rights of recovery against each other and against
the Additional Insureds identified below for
damages caused by fire or other perils covered by
the Builders Risk “Special Form Cause of Loss”
insurance. All applicable policies of insurance
covering the Work or the property of the SubRecipient or subcontractor shall be endorsed to provide a waiver of subrogation in favor of the
Additional Insureds identified below, SubRecipient and all subcontractors of every tier.
Further, Sub-Recipient hereby releases, and shall
cause its subcontractors to release, the
Indemnitees identified in section 14 from any and
all claims, losses and damages caused by fire or
other perils covered by the Builders Risk “Special
Form Cause of Loss” insurance. There shall be no
deductible or self-insured retention exceeding
$10,000.00 per loss, other than earthquake or
flood which may have deductible or self-insured
retentions not exceeding $50,000.00. The policy
may have sublimits not less than the following:
Earthquake $5,000,000.00 Flood $1,000,000.00
Pollution Liability Coverage shall provide for
liability arising out of
sudden, accidental, and
gradual pollution, and
remediation. Not required
for Projects without
construction.
The policy limit shall be no less than $1,000,000
per claim and in the aggregate. All activities
contemplated in this MOU shall be specifically
scheduled on the policy as “covered operations.”
The policy shall provide coverage for remediation
of the site in the event of an environmental
contamination event arising out of the materials,
supplies, products, work, operations, or
workmanship.
Products/Completed
Operations
Coverage
Coverage shall extend a
minimum of three (3) years
after project completion. Not
required for Projects without
construction.
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. SCAG, its officials, officers, agents, and
employees, shall be included as additional
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insureds under the Products and Completed
Operations coverage.
b. Higher Limits: no representation is made that the minimum insurance requirements of this MOU are sufficient to cover the indemnity or other obligations of Sub-Recipient under this MOU. c. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
i. SCAG, its officials, employees, and volunteers are to be covered as additional insureds, as respects to liability arising out of the activities performed by or on behalf of Sub-Recipient; products and completed operations of Sub-Recipient; premises owned, occupied or used by SubRecipient; or automobiles owned leased, hired or borrowed by Sub-Recipient. The coverage shall contain no special limitations on the scope of protection afforded to SCAG, its officials, and employees.
ii. For any claims related to this Project, Sub-Recipient’s insurance coverage shall be primary insurance as respects SCAG, its officials, and employees. Any insurance or self-insurance maintained by SCAG shall be excess of Sub-Recipient’s insurance and shall not contribute with it.
iii. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to SCAG, its officials, and employees. iv. Sub-Recipient’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. d. The Workers’ Compensation and Employer’s Liability policies shall include a waiver of subrogation endorsement in favor of SCAG, its, officials, employees, and volunteers. e. Any deductibles or self-insured retentions in amounts over $10,000 must be declared to and approved by SCAG.
f. Insurance is to be placed with California admitted insurers with a current A.M. Best’s rating of no less than A and be admitted, unless otherwise approved by SCAG. g. Sub-Recipient shall furnish SCAG with original endorsements and certificates of insurance evidencing coverage required by this clause. All documents are to be signed by a person authorized by that insurer to bind coverage on its behalf. All documents are to be received and approved by SCAG before work commences. Upon request of SCAG at any time, Sub-Recipient shall provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications.
h. Sub-Recipient agrees to ensure that its Consultant(s) provide the same minimum insurance coverage and endorsements required of Sub-Recipient. Sub-Recipient 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. However, in the event Sub-Recipient’s Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 285
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Consultant(s) cannot comply with this requirement, which proof must be submitted to SCAG, SubRecipient shall be required to ensure that its Consultant(s) provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Consultant(s) scope of work and services, with limits less than required of the Sub-Recipient, but in all other terms consistent with the Sub-Recipient’s requirements under this MOU. This provision does not relieve Sub-Recipient of its contractual obligations under the MOU and/or limit its liability to the amount of insurance coverage provided by its Consultant(s). This provision is intended solely to provide Sub-Recipient with the ability to utilize Consultant(s) who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of SubRecipient under this MOU given the limited scope of work or services provided by the Consultant(s). Sub-Recipient agrees that upon request, all agreements with Consultant(s) will be submitted to SCAG for review.
14. Indemnification
Sub-Recipient shall fully defend, indemnify and hold harmless SCAG, its members, officers, employees, and agents from any and all claims, losses, liabilities, damages, expenses, suits or actions including attorneys’ fees, brought forth or arising under any theories or assertions of liability, occurring by or resulting from or otherwise related to the Project or this MOU. Such obligations shall not, however, extend to any claims, losses, liabilities, damages, expenses, suits, or actions that arise from SCAG’s gross negligence or willful misconduct.
15. Disputes
Except as otherwise provided in this MOU, any dispute arising under this MOU which is not resolved by mutual agreement shall be decided through binding arbitration by a three (3) member panel in accordance with the rules of the American Arbitration Association and as provided in this provision.
If this provision differs from the rules of the American Arbitration Association, then this provision shall control. Sub-Recipient shall continue with the responsibilities under this MOU during any dispute until the dispute is resolved. A judgment upon the award rendered by arbitration may be entered into any court having jurisdiction thereof. The arbitration panel shall have the authority to grant any remedy or relief that would have been available to the Parties had the matter been heard in a court of law. Following arbitration, the arbitration panel shall prepare a written decision containing the essential findings and conclusions on which the award is based so as to ensure meaningful judicial review of the decision. All expenses and fees for the arbitrator and expenses for hearing facilities and other expenses of arbitration shall be borne equally by both Parties unless they agree otherwise or unless the arbitrator in the award assesses such expenses against one of the parties or allocates such expenses other than equally between the Parties. Either Party may bring an action in court to compel arbitration under this MOU and to enforce an arbitration award.
16. Noncompliance
a. In the event of nonperformance or noncompliance with any requirement of this MOU, including but not limited to Project eligibility, schedule, deliverables, or milestone timelines, as outlined in the most current fully executed SOW Approval Form, SCAG may:
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i. Issue a written notice to stop work. If such notice is provided, Sub-Recipient and its Consultant(s) shall immediately cease all work under the MOU. SCAG has the sole discretion to determine that Sub-Recipient is in compliance with the terms and conditions after a stop work order, and to deliver a written notice to Sub-Recipient to resume work under this MOU. ii. Require repayment of the Grant Funds.
iii. Terminate this MOU pursuant to Section 17.
b. Notwithstanding the provisions set forth above, or any other provision contained in this MOU, no remedy conferred by any of the specific provisions of this MOU or the SOW Approval Form, is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy existing at law or in equity or by statute or otherwise.
17. Termination of MOU
a. Termination for Cancellation or Reduction in REAP 2.0 Funding. In the event HCD terminates or cancels funding to SCAG, this MOU is deemed to be terminated and SCAG shall be relieved of any and all obligations under this MOU as of the effective date of HCD’s termination. In the event HCD reduces funding to SCAG, SCAG shall have the unilateral right to stop work, proportionally reduce funding to Sub-Recipient or terminate this MOU.
b. Termination for Convenience. Either Party may terminate this MOU at any time by giving written notice to the other party of such termination at least thirty (30) calendar days before the effective date of such termination. Should SCAG terminate the MOU for convenience, upon receipt of the notice of termination, Sub-Recipient shall immediately take action to avoid incurring any additional obligation costs or expenses except as may be necessary to terminate its activities or the activities of its Consultant(s). SCAG shall pay Sub-Recipient its reasonable and allowable costs through the effective date of termination and is not liable for any expenses after termination, including any costs associated with Consultant(s). In such event, all finished or unfinished Work Products shall be provided to SCAG.
c. Termination for Cause. If through any cause, either Party shall fail to timely and adequately fulfill its obligations under this MOU, or if either Party violates any of the covenants, terms, or stipulations of this MOU, the non-breaching Party shall thereupon have the right to terminate the MOU by giving not less than ten (10) calendar days written notice to the breaching Party of the intent to terminate and specifying the effective date thereof. The non-breaching Party shall provide a reasonable opportunity for the breaching Party to cure prior to termination. In no event shall such opportunity to cure extend beyond the term of the MOU. In the event that SCAG invokes this termination for cause provision, Sub-Recipient shall reimburse SCAG for all funds provided for the Project and all finished or unfinished Work Products shall be provided to SCAG at its option.
18. Records Retention
a. Sub-Recipient and its Consultant(s) shall maintain and make available, in accordance with Section 19 of this MOU, all source documents, books and records connected with the Project, documentation of its normal procurement policy and competitive procurement bid process and Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 287
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completed procurements related to the Project, all work performed under this MOU, all evidence of environmental clearance, and evidence demonstrating the funding was used for the appropriate purposes for a minimum of five (5) years after December 31, 2026. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. b. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records shall be retained and made available by Sub-Recipient and its Consultant(s) for five (5) years after: (a) the conclusion or resolution of the matter; (b) the date an audit resolution is achieved for each annual SCAG OWP; or (c) December 31, 2026, whichever is later.
19. Monitoring and Audits
a. SCAG may monitor expenditures and activities of Sub-Recipient and its Consultant(s) as SCAG deems necessary to ensure compliance with the MOU, the Statutes, the REAP 2.0 Guidelines and the Program Guidelines.
b. At any time during the term of this MOU, SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives may perform or cause to be performed a financial audit of any and all phases of the Project. At their request, Sub-Recipient shall provide, at its own expense, a financial audit prepared by an independent certified public accountant.
c. Sub-Recipient agrees that SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives shall have the right to review, obtain, and copy all records and supporting documentation related to the performance of this MOU. Sub-Recipient agrees to provide any relevant information requested. Copies shall be made and furnished to SCAG upon request at no cost to SCAG.
d. Sub-Recipient agrees to permit SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this MOU, the Statutes, the REAP 2.0 Guidelines, or applicable state and federal laws, rules, and regulations. e. If there are audit findings from SCAG or HCD’s audit, Sub-Recipient must submit a detailed response acceptable to SCAG or HCD for each audit finding within ninety (90) days of the audit finding report.
20. Small Business and Disabled Veteran Business Enterprise Participation a. If for this MOU Sub-Recipient made a commitment to achieve small business participation, then Sub-Recipient must within 60 days of receiving final payment under this MOU (or within such other time period as may be specified elsewhere in this MOU) report to SCAG the actual percentage of small business participation that was achieved. (Gov. Code § 14841.) Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 288
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b. If for this MOU Sub-Recipient made a commitment to achieve disabled veteran business enterprise (“DVBE”) participation, then Sub-Recipient must within 60 days of receiving final payment under this MOU (or within such other time period as may be specified elsewhere in this MOU) certify in a report to SCAG: (1) the total amount the Sub-Recipient received under the MOU; (2) the name and address of the DVBE(s) that participated in the performance of the MOU; (3) the amount each DVBE received from the Sub-Recipient; (4) that all payments under the MOU have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (M&V Code § 999.5(d); Gov. Code § 14841.)
21. Compliance with Laws, Rules, and Regulations
a. Sub-Recipient agrees to comply with all federal, state, and local laws, rules, and regulations applicable to this MOU.
b. Non-Discrimination/Equal Employment Opportunity
i. During the performance of this MOU, Sub-Recipient assures that no person shall be denied the MOU’s benefits, be excluded from participation or employment, be denied Project benefits, or be subjected to discrimination based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, under the Project or any program or activity funded by this MOU, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 U.S.C. §§ 3601-20) and all implementing regulations, the Americans with Disabilities Act (“ADA”) of 1990 (42 U.S.C. §§ 12101 et seq.) and all applicable regulations and guidelines issued pursuant to the ADA, and the Age Discrimination Act of 1975 and all implementing regulations. Sub-Recipient shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. ii. Sub-Recipient shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code § 12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs. tit. 2, § 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§ 11135-11139.5), and the regulations or standards adopted by HCD to implement such article.
iii. Sub-Recipient shall permit access by representatives of the Department of Fair Employment and Housing, SCAG, and HCD upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as the Department of Fair Employment and Housing, SCAG, or HCD shall require to ascertain compliance with this Section. iv. Sub-Recipient shall give written notice of its obligations under this Section to labor organizations with which they have a collective bargaining or other agreement.
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v. Sub-Recipient shall adopt and implement affirmative processes and procedures that provide information, outreach, and promotion of opportunities in the Project to encourage participation of all persons regardless of race, color, national origin, sex, religion, familial status, or disability. This includes, but is not limited to, a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 C.F.R. § 92.351. c. Recycling Certification. Sub-Recipient shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to SCAG regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub.
Contract Code § 12205).
d. Anti-Trust Claims. Sub-Recipient, by signing this MOU, hereby certifies that if these services or goods are obtained by means of a competitive bid, the Sub-Recipient shall comply with Title 1, Division 5, Chapter 11 of the California Government Code (Gov. Code §§ 4550-4554). e. Child Support Compliance Act. If the Grant Funds provided under this MOU are in excess of $100,000, Sub-Recipient acknowledges in accordance with Public Contract Code 7110, that:
i. Sub-Recipient recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code; and
ii. Sub-Recipient, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. f. Priority Hiring Considerations. If this MOU includes services in excess of $200,000, the SubRecipient shall give priority consideration in filling vacancies in positions funded by the MOU to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code §10353.
g. Loss Leader. If this MOU involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC § 10344(e).)
22. Public Works and Construction
Without limiting the generality of Section 21.a., Sub-Recipient agrees to ensure compliance with all applicable legal authority regarding construction standards and requirements, including but not limited to the following:
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a. Labor Code Requirements
i. Sub-Recipient is hereby put on notice that the Project under the MOU may qualify as a public works project and Sub-Recipient will therefore be required to determine whether the Project falls under a classification that would require payment of prevailing wages. Services constituting public works are described in California Labor Code Sections 1720-1861, as may be amended or recodified by legislative action from time-to-time.
ii. If a Project qualifies as a public works project, Sub-Recipient shall be the Awarding Body for the public works project and required to comply with all requirements applicable to the Awarding Body.
iii. If Sub-Recipient or its Consultant(s) will perform services that require payment of prevailing wages, they are required to register with the California Department of Industrial Relations (DIR) in order to be compliant with the law. Neither Sub-Recipient nor its Consultant(s) may work on a public works project without a current and active DIR registration. iv. In the event that Sub-Recipient or its Consultant(s) engages in the performance of a public work under this MOU as defined by Labor Code Section 1770 et seq., Sub-Recipient and its Consultant(s) shall be required to cause such employees who are entitled to prevailing wages, to be paid the required wage amounts pursuant to applicable state law. Sub-Recipient and its Consultant(s) shall ensure compliance with the State of California’s General Prevailing Wage Rate requirements in accordance with California Labor Code, Section 1770, and all Federal, State, and local laws and ordinances applicable to the work.
v. Sub-Recipient further acknowledges that any work that qualifies as a public work within the meaning of California Labor Code Section 1720 shall require Sub-Recipient and its Consultant(s) to comply with the provisions of California Labor Code Sections 1775 et seq. Sub-Recipient agrees to ensure compliance with Labor Code Section 1776 regarding retention and inspection of payroll records and noncompliance penalties, Labor Code Section 1777.5 regarding employment of registered apprentices, and Labor Code Section 1813 regarding forfeiture for violations of the maximum hours per day and per week provisions contained in the same chapter. b. Sub-Recipient shall comply with all applicable federal, state, and local procurement requirements for public works and construction projects and shall advertise, open bids, award, and approve all construction contracts in accordance with the California Public Contract Code and the California Labor Code.
c. All construction contracts for the Project shall be administered and managed by Sub-Recipient.
Sub-Recipient shall prepare or have prepared a detailed schedule of performance for the Project, ensuring that all construction is completed within the timeline allowed by the MOU. Sub-Recipient shall be responsible for requiring the construction contractor to furnish any applicable labor and material bonds and payments and performance bonds naming the Sub-Recipient as obligee, and SCAG as additional obligee, or an insurance policy in lieu of such bonds.
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d. Sub-Recipient agrees to procure any and all permits, licenses and approvals necessary to complete the Project, including those necessary to perform design, construction, operation and maintenance, and to comply with all California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) requirements applicable to the Project. Sub-Recipient shall pay all charges and fees and give all notices necessary or incidental to the Project. e. Sub-Recipient shall prepare, or have prepared, all plans, specifications and estimates for the Project and ensure that the Project complies with all applicable federal and state accessibility requirements, including but not limited to the Americans with Disabilities Act, including its implementing regulations at 24 CFR Part 8 and any amendments, and California Government Code Section 4450, and applicable requirements and guidance provided in Title 24 of the California Code of Regulations, for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability.
f. Sub-Recipient shall conduct all necessary due diligence for the Project, including but not limited to performing necessary environmental assessments/review of environmental hazard reports, conducting engineer/geotechnical review, commissioning title reports to identify and evaluate the condition of title and encumbrances on the subject property, including but not limited to any covenants conditions and restrictions, determining the entity(ies) with site control, including whether any third parties have ownership or site control rights, and determining the suitability for the Project. g. Sub-Recipient shall ensure any contractors or subcontractors are paid in accordance with applicable laws and regulations.
h. Sub-Recipient shall comply with the procedure set forth in Public Contracts Code Section 9204 for processing contractor claims, paying undisputed amounts, and requiring mediation of disputed amounts.
i. Sub-Recipient shall be responsible for ensuring ongoing maintenance of the Project after completion.
SCAG shall not be responsible for ongoing maintenance of the Project after completion.
23. Conflict of Interest
The Parties shall comply with all applicable Federal and State conflict of interest laws, regulations, and policies.
24. Independent Contractor
Sub-Recipient and its Consultant(s) shall be independent contractors in the performance of this MOU, and not officers, employees, or agents of SCAG.
25. Assignment
Neither Party shall assign any rights or interests in this MOU, or any part thereof, without the written consent of each Party to this MOU, which consent may be granted, withheld, or conditioned in the consenting Party’s sole and absolute discretion. Any assignment without such written consent shall be Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 292
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void and unenforceable. The covenants and agreement of this MOU shall inure to the benefit of and shall be binding upon each of the Parties and their respective successors and assignees.
26. Release of Information
a. Subject to any provisions of law, including but not limited to the California Public Records Act, any Work Product or materials deemed confidential by either Party shall be held confidential by the receiving Party who shall safeguard such confidential materials from unauthorized disclosure, using the same standard of care to avoid disclosure as the receiving Party treats its confidential information, but in no case less than reasonable care. Nothing furnished to either Party which is otherwise known or is generally known, or has become known, to the related industry shall be deemed confidential.
b. Sub-Recipient shall not release any information or Work Products to a third party or otherwise publish or utilize any information or Work Products obtained or produced by it as a result of or in connection with the performance of services under this MOU without the prior written authorization of SCAG, except as provided under this MOU or as required by law (including, without limitation, pursuant to the California Public Records Act). c. All public-facing communications materials relating to this MOU, or its subject matter, shall acknowledge SCAG. Communications materials include, but are not limited to, site signage, printed information materials, print and online publications, websites, advertisements, video, public service announcements, social media postings, events, media advisories, news releases, and all other related materials.
d. To ensure consistency of public information about SCAG programs and funded work products, Sub-Recipient is required to notify and coordinate with SCAG Project Manager who will coordinate with SCAG’s Manager of Media & Public Affairs or a specified designee on any media inquiries or plans for proactively providing information to media outlets. e. All communication materials must be provided to SCAG Project Manager prior to completion so that inclusion of this element can be confirmed.
27. Non-Exclusivity
Nothing herein is intended nor shall be construed as creating an exclusive arrangement between SCAG and Sub-Recipient. This MOU shall not restrict SCAG from acquiring similar, equal or like services from other entities or sources.
28. Severability
If any provision of this MOU is held to be illegal, invalid, or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable, and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby.
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29. Survival
The following sections survive expiration or termination of this MOU:
Section 5 (Funding)
Section 10 (Work Products)
Section 12 (Notices)
Section 13 (Insurance)
Section 14 (Indemnification)
Section 15 (Disputes)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 26 (Release of Information)
Section 31 (Jurisdiction and Venue)
Section 32 (Waiver)
30. Flow-Down Provisions
Sub-Recipient shall include the following provisions in all agreements entered into containing funds provided under this MOU, require the provisions below that survive expiration or termination of this MOU to survive, and shall include a requirement in all agreements that each of them in turn include the requirements in all contracts and subcontracts they enter into to perform work under the Project.
SCAG does not have a contractual relationship with Sub-Recipient’s Consultant(s), and Sub-Recipient shall be fully responsible for monitoring and ensuring compliance with these provisions.
Section 3.c. (Scope of Work and Sub-Recipient’s Responsibilities – nexus to REAP 2.0) Section 3.e. – 3.g. (Scope of Work and Sub-Recipient’s Responsibilities – procurements) Section 3.k. (Scope of Work and Sub-Recipient’s Responsibilities – penalty of perjury) Section 5.e. (Funding – repayment of ineligible costs)
Section 6 (Invoices)
Section 7 (Reporting)
Section 8 (Accounting)
Section 9 (Allowable Uses of Grant Funds)
Section 10 (Work Products)
Section 13 (Insurance)
Section 14 (Indemnification)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 20 (Small Business and Disabled Veteran Business Enterprise Participation) Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 24 (Independent Contractor)
Section 25 (Assignment)
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Section 26 (Release of Information)
Upon SCAG’s request, Sub-Recipient shall provide SCAG a copy of any such agreement.
31. Jurisdiction and Venue
This MOU shall be deemed an agreement under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. Subject to the provisions in Section 15, the Parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that the venue of any action brought thereunder shall be Los Angeles County, California.
32. Waiver
No delay or failure by either Party to exercise or enforce at any time any right or provision of this MOU shall be considered a waiver thereof of such Party’s right thereafter to exercise or enforce each and every right and provision of this MOU. A Waiver to be valid shall be in writing but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver.
33. Standard of Care
Sub-Recipient and its Consultant(s) shall perform the work required for the Project under this MOU in accordance with generally accepted industry standards, practices, and principles applicable to such work.
34. Force Majeure
Neither Party shall be liable or deemed to be in default for any delay or failure in performance under this MOU or interruption of services resulting, directly or indirectly, from acts of nature, civil or military authority, acts of public enemy, war, strikes, labor disputes, pandemics, or any other similar cause beyond the reasonable control of the Parties, provided that the Party seeking to delay or excuse its performance as a result of such event shall notify the other Party in writing of such circumstances within not more than ten (10) days following the first occurrence of the event forming the basis of the delay or excuse of performance. In the event that the Party seeking to delay or excuse its performance fails to timely deliver the notice described in the previous sentence, then such event shall not relieve the Party from its timely performance.
35. Entire MOU
This MOU, comprised of these terms and conditions, the attached exhibits, and any properly executed amendments, represents and contains the entire agreement of the Parties with respect to the matters set forth herein. This MOU supersedes any and all prior negotiations, discussions and, if any, previous agreements between the Parties with respect to the matters set forth herein.
36. Execution
This MOU, or any amendments related thereto, may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.
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The signature page of this MOU or any amendments may be executed by way of a manual or authorized digital signature. Delivery of an executed counterpart of a signature page to this MOU or an amendment by electronic transmission scanned pages shall be deemed effective as a delivery of a manually or digitally executed counterpart to this MOU or any amendment.
37. Effective Date
This MOU shall be effective as of the last date on which the document is executed by all Parties.
38. Authority
Sub-Recipient warrants and certifies that it possesses the legal authority to execute this MOU and to undertake the Project, and, if applicable, that a resolution, motion, or similar action has been fully adopted or passed, as an official act of Sub-Recipient's governing body, authorizing receipt of the Grant Funds, and directing and designating the authorized representative(s) of Sub-Recipient to act in connection with the Project and to provide such additional information as may be required by SCAG.
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SIGNATURE PAGE TO
MEMORANDUM OF UNDERSTANDING
No. M-035-25
IN WITNESS WHEREOF, the Parties have caused this Memorandum of Understanding to be executed by their duly authorized representatives as of the dates indicated below:
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (“SCAG”) By: _______________________________________________ _________________ Cindy Giraldo Date
Chief Financial Officer
APPROVED AS TO FORM:
By: _______________________________________________ _________________ Richard Lam Date
Senior Deputy Legal Counsel
CITY OF PALM DESERT (“Sub-Recipient”)
By: _______________________________________________ _________________ L. Todd Hileman Date
City Manager
APPROVED AS TO FORM:
By: _______________________________________________ _________________ Isra Shah Date
City Attorney
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3/17/2025
3/18/2025
3/18/2025
297
Exhibit A – Scope of Work
Project Name: Flood Control Infrastructure for Housing Need Project Description:
The project will expand the City’s utility capacity to mitigate future severe flooding that could damage ongoing developments and existing affordable housing infrastructure along the I‐10 corridor and the project site, which covers approximately 6.5 linear miles along Interstate 10. The project includes a match of $6.5 million to fully acquire all the proposed lots which will house the proposed flood control measures. Planned improvements include design and construction of the following elements:
stormwater conveyance systems, flood control barriers, retention and detention basins, and stormwater parks.
Final Deliverable:
Site Acquisition Executed Agreements
100% Design Plans, Specifications, and Cost Estimates Final Environmental Clearance
Project Construction Monthly Reports
Survey and written summary of visual inspection
Notice of Completion
Project Budget: $8,000,000
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Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program]
Scope of Work Approval Form - Project Summary
1 Subrecipient: [Grantee Name]
Project #1: [Project Name]
☒ Original Scope of Work Approval
☐ Revision Requested to Add, Remove, or Change Project Manager ☐ Revision Requested to Project Tasks (Please check all that apply) ☐ Revise/Delete a Previously Approved Task ☐ Revise Task Budget ☐ Change Project/Task Date ☐ Change in Deliverable (Interim) ☐Other (Please describe)
SCAG Approval Date: ___________________________
Revision No. NUMBER
Revision Effective Date: _________________________
Original Approved Summary of Projects Tasks (approved on DATE) Project/Activity Tasks Outline
Task and subtasks Staff
Costs
Consultant
Costs
Total
Costs
Begin
Date
End
Date
Deliverables
1.0 Project
Administration
2.0 Project
Management
3.0 [task name]
Total Project
Cost
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Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program]
Scope of Work Approval Form - Project Summary
2 Requested Revisions to Project Tasks
If a revision is requested, please also update the project/activity task outline(s) below and highlight the changes.
Revised Project/Activity Tasks Outline
Task and subtasks Staff
Costs
Consultan
t Costs
Total
Costs
Begin
Date
End
Date
Deliverables
Total Project
Cost
Route all budget changes to Accounting and B&G.
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Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program]
Scope of Work Approval Form - Project Summary
3 Signatures below to approve revisions also indicate approval of any modifications to subsequent pages.
Revision Approval Requested By: Revision Approved By:
Project Manager SCAG Department Manager
Name / Title Name / Title
_____________________________________ ______________________________________ Signature Date Signature Date
Revision Approved By:
SCAG Deputy Director or Authorized Designee
Name / Title
________________________________________
Signature Date
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Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program]
Scope of Work Approval Form - Project Summary
4 Project Metrics
Each REAP 2.0 project requires metrics to quantitatively measure the project’s outcome. Project metrics selected on this form will be included in the REAP 2.0 SRP2 quarterly progress reporting form. Please select all metrics that will apply to your approved projects:
1. Sample
☐ Sample
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Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program]
Scope of Work Approval Form - Project Summary
5 1 [name of grantee: project name]
_____ (Insert Number of) Procurements Expected for this Project Brief Description of Project: (Pulled from project application) Revision Summary:
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Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program]
Scope of Work Approval Form - Project Summary
6 Signatures on this page indicate approval of the initial Scope of Work Approval Form in its entirety. Revisions do not require new signatures in this section.
Initial SAF Approved By: Initial SAF Approved By: SRP2
Project Manager SCAG Department Manager
Name / Title Name / Title
_____________________________________ ______________________________________ Signature Date Signature Date
Initial SAF Approved By:
SCAG Deputy Director or Authorized Designee
Name / Title
________________________________________
Signature Date
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Exhibit C
Invoice Submittal Requirements
SCAG will provide the Sub-Recipient an Invoice Template in Excel file format. The Invoice Template must be used to request reimbursement from SCAG. Detailed submittal instructions for filling out and submitting are provided in the Invoice Template. The Invoice Template may be amended from time to time and does not guarantee that any invoices will be approved or that the Sub-Recipient will receive payment. The Invoice Template will require information and supporting documentation such as, but not limited to:
a. SCAG’s “Bill To” information as stated in the above paragraph “b.” of this section; b. Invoice number specified by the Sub-Recipient. The invoice number must be unique for each invoice submitted;
c. Invoice date;
d. Billing period specified with beginning and ending dates. The beginning date must not be sooner than the MOU Effective Date of the Agreement, or within any previous billing dates;
e. Total amount due for the billing period;
f. MOU Number, SCAG Project/OWP Number, and the MOU Term Date; g. Project Title;
h. Agency Name, Agency Project Manager Name, and Project Manager Email Address; and i. SCAG Project Manager Name.
j. Progress report
k. Cost by task and/or cost category
l. Detailed description of Other Direct Charges
m. Proof of payment
n. Timesheets
o. Payroll report/Payroll registers
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Exhibit D – Sub-Recipient Report Template
PENDING GUIDANCE FROM HCD
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GERALD FORD DRCOOK ST
GERALD FORD DR
TECHNOLOGY DR
COLLEGE DR
Copyright nearmap 2015
Cook Street and Gerald Ford Improvements
I
VICINITY MAP
DESIGN AND
CONSTRUCT
DESIGN ONLY
307
308
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: September 25, 2025
PREPARED BY: Shawn Muir, Community Services Manager
SUBJECT: AMENDMENT NO. 3 TO CONTRACT NO. C39690 – LEASE AGREEMENT
WITH THE DESERT RECREATION DISTRICT TO FINALIZE
NECESSARY BUILDING IMPROVEMENTS AT PALM DESERT
COMMUNITY CENTER AND ADOPT AMORTIZATION SCHEDULE
RECOMMENDATION:
1. Approve Amendment No. 3 to Contract No. C39690 amending the lease agreement with the Desert Recreation District for the Palm Desert Community Center.
2. Authorize the City Attorney to make non-monetary changes to the amendment.
3. Authorize City Manager to execute said amendment upon approval by the City Attorney.
BACKGROUND/ANALYSIS:
Since 2016, the City of Palm Desert (City) and Desert Recreation District (DRD) have been working to update and improve the Palm Desert Community Center, located at 43900 San Pablo Avenue. The City owns the facility, and DRD operates it according to a lease agreement effective January 1, 2020.
In June 2023, the City Council approved Amendment No. 1 to the lease agreement, authorizing a Tenant Improvement Allowance to fund DRD’s required improvements. The amendment also established a bi-annual lease payment to recover costs plus interest associated with the allowance and extended the lease term to 35 years to accommodate repayment.
The project was originally scheduled for completion in October 2024 but was delayed until January 2025 due to additional inspection requirements from the Fire Marshal. On February 27, 2025, the City Council approved Amendment No. 2 extending the deadline for DRD’s final reimbursement request to April 1, 2025. DRD missed the deadline and instead submitted its request on June 26, 2025. Despite the delay, the repayment schedule began as planned on July 1, 2025.
DRD has requested that the City contribute additional funds for improvements that fall under the City’s maintenance responsibilities. The original scope of services was estimated at $35,000; however, this amount inadvertently excluded the City’s full project costs, which total $373,659.
These costs cover foundation and civil work, including concrete, ADA compliance, demolition, and related repairs. A formal request to cover the complete City-related costs was submitted in a letter dated July 1, 2025 (attached).
309
City of Palm Desert
Amendment No. 3 to DRD Lease Agreement
The City Council's approval of the proposed Amendment No. 3 will result in:
An updated amortization schedule for DRD’s repayment of improvement costs (excluding the additional City related work); and
Inclusion of a Final Project Close-Out Acknowledgement to be signed by DRD, which will:
o Confirm all contracted improvements under IFB# 23-05-001-PW were completed to the satisfaction of the District;
o Accept the quality and scope of work as final and complete; and o Acknowledge that no further disbursement requests will be made under the Tenant Improvement Allowance.
All other terms of the lease will remain unchanged.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
The change in lease terms will include an update to the lease payment from DRD in accordance with the agreed-upon terms, reducing the amount for City related work totaling $373,659.
Description Amount
Original Estimate/Project NTE Approved $12,500,000
Amendment No. 1 (Bid Award) ($6,671,701)
Amendment No. 2 (C/O’s & Time) $1,443,445
Amendment No. 3 (this request) ($373,659)
Final Amount Due for TI’s $6,898,085
The improvements at the Palm Desert Community Center qualify for the intended use and reimbursement of funds pursuant to the Bond Proceeds Funding Agreement. Therefore, these costs have no impact to the General Fund.
ATTACHMENTS:
1. C39690 Executed Lease Agreement
2. Amendment No. 1
3. Amendment No. 2
4. DRD Request Letter
5. Proposed Amendment No. 3, including final Amortization Schedule 310
CI Y 0 P M DES R
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infu, c' i[ yofpalmdcsrrt.ur,
January 13, 2020
Mr. Kevin Kalman
General Manager
Desert Recreation District
45305 Oasis Street
Indio, California 92201
Dear Pd+ i: rJ a
Subject: Contract No. C39690 - Lease Aareement for the Palm Desert Communitv Center Buildinq Located at 43900 San Pablo
Avenue ( APN 622- 250- 0161
At its regular meeting of December 12, 2019, the Palm Desert City Council, by Minute Motion, authorized: 1) Mayor to execute subject Lease Agreement befinreen the City of Palm Desert and Desert Recreation District; 2) City Attorney to make non- substantive changes to the Agreement prior to final execution.
Enclosed is a fully executed Lease Agreement for your records. If you have any questions or require additional information, please do not hesitate to contact us.
Sincerely,
RACHELLE D. KLASSEN, MMC
CITY CLERK
RDK/ mgs
Enclosure ( as noted)
cc/ enc: Ryan Stendell, Director of Community Development Finance Department
iJ' , .,,_, a•:>
311
CONTRACT N0. C39690
LEASE AGREEMENT
THIS LEASE AGREEMENT (" Lease") is entered into as of January 1, 2020 (" Term Commencement Date"), hy and between the CITY OF PALM DESERT, a California municipal corporation (" Lessor") and the DESERT RECREATION DISTRICT, a California special district Lessee"). L,essor and Lessee are sometimes referred to individually as " Party" and collectively as Parties."
RECITAI, S
WHEREAS, Lessee previously owned certain real property in the City of Palm Desert, California, cansisting of two (2) parcels of approximately thirty two ( 32) acres, including a recreation building and other improvements (" District Property"); and, WHEREAS, the City or Palm Desert and the former Redevelopment Agency own a civic center site of approximately sixty three ( 63) acres on the northeast corner of Fred Waring Drive and San Pablo Avenue (" Civic Center Property"); and, WHEREAS, pursuant to an Exchange Agreement and Transfer lnstructions dated October 13, 1988, an Agreement for Cooperation dated October 13, 1988, and a Lease Agreement dated 1990, Lessee conveyed District Property to Lessor as consideration for the continued lease of operational facilities for Lessee on the Civic Center Property and a long term lease of a community recreation building constructed by Lessor for Lessee on the Civic Center Property (" Palm Desert Community Center"); and,
WHEREAS, the leased premises are located at 43900 San Pablo Avenue, Palm Desert, California 92260 (" Premises"), as legally described in Exhibit " A" attached hereto and incoiporated herewith, and include all improvements located thereon, including capital improvements to the Premises as of the Term Commencement Date and as added or upgraded pursuant to the provisions of this Lease, including the City Improvements a5 defined in Section 5. 2, along with the existing recreation building with dressing and activity rooms, reception area, storage, other usable space, and associated landscaping (" Improvemen[ s"); and, WHEREAS, the Parties now wish to provide for the amendment and extension of their previous lease agreement and address future improvements and ongoing repairs to the Premises on the terms and conditions set forth in this L.ease; and, WHEREAS, upon the terms and conditions set forth hereinafter, Lessor desires ta lease the Premises to Lessee, and Lessee desires to lease the Premises from Lessor for the specific use and purpose of providing a recreation center(" Specific Use"); and, NOW THLRLFOR, in consideration of the above recitals anci of the mulual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
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ARTICLE 1
TERM OF LEASE
1. 1 Term. The " Term" of this Lease shall be twenty- five ( 25) years, commencing on January 20, 2020 ( the " Term Commencement Date") with an option to renew the Lease at the Parties' mutual discretion for five ( 5), five ( 5)- year terms, unless terminated earlier by Lessor or Lessee ( subject to terms herein).
1. 2 Date of Lease and Legal Effect. The terms, covenants, and conditions of this Lease shall become legally binding on the Term Commencement Date.
1. 3 Termination. The Parcies may not terminate this L.ease during the first twenty five ( 25) years of the Term or during any of the five ( 5)- year renewals. With a minimum six ( 6) months' notice either Party may terminate this Lease prior to any subsequent renewal date. This provision shall not apply in the event of a breach of the Lease or the mutual written agreement of the Parties.
ARTICLE 2
RENT
2. 1 Base Rent. During the term of this L.ease, Lessee shall pay to I.essor for each year from the Term Commencement Date One Dollar ($ 1. 00) (" Base Rent"). The Base Rent owing for lhe full term of the Lease shall be payable in advance of the Term Commencement Date.
ARTICLF, 3
USE OF PREMISES AND COMPLIANCE WITH I,AW
3. 1 Use and Continuous Operation Covenant. Lessor' s primary purpose for entering into this Lease is to provide for the operation of the Premises for the general public for the usual and customary services and facilities provided by the Desert Recreation District, including athletic facilities, recreational programs, and activities. Lessee shall routinely report to the City of Palm Desert' s Parks and Recreation Commission at its regular meetings, but not less than once a year, a schedule of the availability of all facilities and of all programs and activities to be conducted on the Premises, including the time, date, and duration of such programs and activities. The concept of wholesome, affordable family recreation shall be promoted. Should the Lessee wish to substantially change programs and activities available at the facility, Lessee will provide Lessor an explanation of the changes desired and agrees to meet and confer with Lessor with the goal of mitigating any Lessor concerns regarding those desired changes.
3. 2 Fees and Char The Lessee shall be responsible for setting fees and charges for participation in its various programs and activities conducted on the Premises or for use of the Premises provided. lt is the Lessor' s and Lessee' s goal to permit participation by all socio- economic groups in the programs and activities conducted on the Premises. Reasonable cost of operation shall include, but not be limited to, all direct or indirect costs, such as overhead and amortization of capital improvements as otherwise allowed by law. The Lessee' s schedule of fees under this Section
3. 2 shali be submitted to the Lessor for prior written approval and any substantial changes to or 7zsoo. ar ie? ax iaa3. i 2-
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deviations from such schedule thereafter must be approved in writing by the Lessor. essor' s consent to any fees or charges will not be unreasonably withheld.
3. 3 Reports and Records. The Lessee shall maintain accurate records of the costs and revenues associated with operation of the Premises and the various programs and activities conducted on the Premises. Such records shall be available to Lessor for inspection upon request.
3. 4 Parkin. The Lessor shall make available and maintain at acceptable standards sufficient public parking to serve the Premises within the Palm Desert Civic Center area, specifically including handicapped and bicycle parking. Lessee acknowledges it does not have exclusive use of the entire parking area.
3. 5 Compliance with Law. Except as otherwise provided in Section 3. 5. 1 and Article 5 hereof as Lessee' s specific obligations, L,essee, at Lessee' s expense, shall promptly comply with all present and future laws, ordinances, orders, rules, regulations, and requirements of all governmental authorities having jurisdiction affecting the Premises ( or the cleanliness, safety, occupancy, and use of the same), whether or not any such law, ordinance, order, rule, substantial or unforeseen, or ordinary or extraordinary, or shall necessitate structural changes of the Improvements or interfere with the u e and enjoyment of the Premises. lf any governmenlal license or permit shall be required for the proper and lawfiil conduct of the Premises, Lessee shall procure and thereafter maintain such license or permit at its sole cost and expense and shall submit the same for inspection by Lessor.
3. 5. 1 Notwithstanding the provisions of Section 3. 5, the Parties acknowledge that the Premises require a new roof and HVAC system, and repair of the Foundation. Lessor will be responsible for the cost of such major repairs, as provided in Article 5, below. The provisions of Section 3. 5 shall not be construed to require Lessee to make those City Improvements at its expense.
3. 6 Hazardous Substances. Lessee shall ensure that there shall not be kept, used, or sold in, upon or about the Premises any hazardous or toxic materials, chemicals, gasoline, petroleum distillate or other petroleum products, or any other substance or material of any explosive, infla nmable, hazardous, toxic, or radioactive nature which may endanger or damage any part of the Premises, its occupants or invitees, or present any unusual fire, explosion or other damaging or dangerous hazard, or present the possibility of contamination by toxic or hazardous waste.
3. 7 Nondiscrimination. Lessee covenants and agrees for itself, its agents and assigns, and all persons or entities claiming under or through it and this Lease is made and accep[ ed upon and subject to the following conditions:
That there shall be no discrimination against or segregation of any person, or group of persons on account of any basis listed in subdivision ( a) or ( d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12936. 1, subdivision ( m) and paragraph ( 1) of subdivision p) of Section 12955 and Section 12955. 2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Premises nor shall the Lessee, itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy, of lessees, sublessees, sublessee or vendees in the Premises. 72500. 00916L32481443.{ 3-
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3. 8 Liens. Lessee shall keep the Premises, including the Improvements, and the urn ture, fixtures and equipment (" FF& E") and any and all parts thereof, free from any and all liens arising out of any work performed, materials furnished or obligations incurred by or for Lessee, and agree to cause to be discharged of record any mechanics' or materialmen' s lien within twenty ( 20) calendar days after the lien has been fled or within ten ( 10) calendar days after receipt of written request from Lessor, whichever shall be the sooner. Lessee shall give Lessor at least fifteen ( 15) calendar days written notice prior to commencing or causing to be commenced any work on the Premises ( whether prior or subsequent to the commencement of the Term), so that Lessor shall have reasonable opportunity to file and post notices of non-responsibility for Lessee' s work. Lessor• may condition its consent to work upon Lessee posting lien and material and/ or completion bonds in amounts as may be necessary to cover the anticipated cost of such work and potential overruns. Lessee shall reimburse I.essor for any and all costs and expenses which may be incurred by Lessor by reason of the filing of any such liens and/ or removal of same, such reimbursement to be made within ten (] 0) calendar days after receipt by Lessee from Lessor of a statement setting forth the amount of the costs and expenses.
3. 9 CASp Disclosure. L,essee caused the Premises to be inspected by a Certified Access Specialist (" CASp") ( as defined in California Civil Code section 1938) in 2011 and will cause an additional inspection during 2019.
ARTICLE 4
OWNERSHIP OF IMPROVEMENTS
During the Term of this Lease, all Improvements and FF& E that are provided by Lessee or purchased or paid for by Lessee shatl remain the property of Lessee. During the Term of this Lease, all Improvements and FF& E that are provided by Lessor or purchased or paid for by Lessor sh ll remain the property of Lessor.
ARTICLE 5
EXPENSES AND IMPROVEMENTS
5. 1 Pavment of Expenses. Lessee shall pay all of the costs and expenses for the operation, management, and maintenance of the Premises. Such expenses shall include, without limitation, the following: (i) expenses incurred by Lessee in connection with the Premises for general maintenance, painting, lighting, cleaning, security, fire protection; ( ii) subject to Section 3. 5. 1 and this Article, all charges, surcharges and other levies imposed by, and all costs ( whether or not capital in nature) of compliance with the requirements of any federal, state, or local governmental agency reguiating use of the Premises; and ( iii) the actua! cost of minor repairs to the Premises. As used herein, " minor repairs" means those repairs excluding the replacement of the roof, HVAC system, and repair of the Foundation as provided in Section 5. 2 below, and includes interior modifications to impmve the ability to provide recreati nal ervices. Min r re airs ftirther include those needed for the ongoing upkeep and maintenance of the Premises after completion of Lessor' s City Improvements.
5. 2 City Improvements. Lessor shall fund the following necessary major improvements and repairs to the Premises: replacement of the entire roof and associated repairs; replacement of the HVAC and associated ducting; and repair of the Foundation as determined to be necessarily 72500.( 916 3248{ 44. 1
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structurally (" City Improvements"). The repairs to be done by Lessor must either occur be o e or at generally the same time as those to be performed by Lessee.
5. 3 District Improvements. Lessee may design and fund a new front lobby, reconfigured weight room and office area, and a new preschool area to the rear of the Premises with an enclosed play area (" District Improvements"). As part of such work, Lessee may request and Lessor shall grant an additional area of the Civic Center Property and Exhibit " A" shall be amended accordingly.
5. 4 Improvements Project. The Parties agree that economic efficiency and continued service to the public support the performance of both City and District Improvements as one project Project"), with one bid process and prime contractor. Lessor and Lessee each will bear its own costs. Lessee shall he the lead agency for the design and construction of the City and Di trict Improvements and repairs provided in Section 5. 2 and 5. 3 as set out in Exhibit " B" attached and incorporated as if fully set forth herein.
ARTICI, E 6
MAINTENANCE OF LEASED PREMISES
6. 1 Lessee' s Obligations for Maintenance.
6. 1. 1 Lessee' s Obli at i,_ ons. Lessee shall be responsible for minor repairs, herein described as " District Improvements," at Lessee' s expense without cost to Lessor, and shall maintain in good order, condition, quality, and repair, the Premises and every part thereof, and any and all appurtenances thereto wherever located, and all other repairs, replacements, renewals, and restorations, ordinary and extraordinary, foreseen and unforescen.
6. 1. 2 Standard of Maintenance. Subject to Section 3. 5. 1, Lessee shall keep and maintain the Premises, including the Improvements thereon, and all FF& E, in a clean, sanitary, and safe condition in accordance with the laws of the State of California and in accordance with all directions, rules, and regulations of the health officer, Fire Marshal, building inspector, or other property officials of the governmental agencies having jurisdiction, and Lessee shall comply with all requirements of laws and ordinances affecting the Premises and the Improvements, all at the sole cost and expense of Lessee. At the time of the expiration of the tenancy created herein, Lessee shall surrender the Premises and the Improvcments thereon in the same order, condition, and repair as when received, reasonable wear and tear excepted.
6. 1. 3 Lessor' s Substitute Performance. In the event Lessee fails, refuses, or neglects to commence and complete promptly and adequately any of Lessee' s obligations pursuant to this Section, or to remove any lien, to pay any cost or expense relating to the matters described in Section 3. 8, Lessor may, but shall not be required to, make or complete any such repairs, remove such lien, or pay such cost and expense, and Lessee shall reimburse Lessor for all costs and expenses of Lessor thereby incurred within fifteen ( 15) calendar days after receipt by Lessee from Lessor of a statement setting forth the amount of such costs and expenses which shall be deemed to be additional rent and subject to the same consequences as herein provided for failure to pay rent. If reasonably possible under the circumstances, Lessor shall give Lessee written notice fifteen ( 15) calendar days. prior to commencement of any substitute performance. Any failure by Lessor to give such notice, however, shall not prejudice Lessor' s rights hereunder or alter Lessee' s obligations soo. cxx i zas iaa3. 5-
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hereunder. Lessor' s rights and remedies shall be in addition to any and all o[ her rights an emecT ies
provided under this Lease or at law.
6. 2 Lessor' s Obligations For Maintenance. Lessor shall maintain, repair, and replace the parking areas located adjacent to the Premises.
ARTICLE 7
INSURANCE AND INDEMNITY
7. 1 Lessee' sInsurance.
7. 1. 1 Types. Lessee, at no cost and expense to Lessor, shall procure and keep in full force and effect during the Term or cause to be procured and kept in full force and effect for the mutual benefit of Lessor and Lessee, insurance policies or self-insurance meeting the minimum requirements set forth below or such greater requirements that are generally obtained from time to time for properties, improvements, activities, and operations similar to those on the Premises in thc Southern California area.
Commercial general liability insurance with respect to the Premises and the operations of or on behalf of Lessee or its agents, officers, directors, and employees in, on or about the Premises in an amount not less than Three Million Dollars ($ 3, 000, 000) per occurrence combined single limit for bodily injury, personal injury, death and property damage, Three Million Dollars ($ 3, 000, 000) in aggregate subject to such increases in amount as Lessor may reasonably require from time to time.
Coverage shall include, but not be limited to personal injury liability, premises and operation, blanket contractual, cross liability, severability of interest, broad form property damage, and independent contractors. Lessee shal] cause Lessor and its officers, employees, and agents to be named as additional insureds on such policy or policies.
Worker' s compensation coverage as required by the laws of the State of California together with employer' s liability coverage.
With respect to the Improvements, FF& E, and other items of personal property located on or in the Premises, insurance against fire, flood, extended coverage, vandalism and malicious mischief, and such other additional perils, hazards and risks as now are or may be included in standard " all risk" forms in general use in Riverside County, California, for an amount equal to not less than the full current actual replacement cost thereof.
Such insurance shall include endorsements for the leasehold improvements, inflation coverage, plate glass, business interruption, sprinkler leakage and changed conditions. Lessor shall be an additional insured under such policy or policies and such insurance shall contain a replacement cost endorsement.
Standards. All policies of insurance required to be carried by Lessee under this Lease shall be written by responsible and solvent insurance companies authorized to do business in the State of California and rated no less than A V1I by A. M. Best' s Key Rating Guide. With Lessor' s prior written approval of the insurance coverage, any insurance required of Lessee hereunder may be fumished by Lessee under any blanket policy carried by Lessee. A copy of each paid- up policy evidencing such insurance (appropriately authenticated by the insurer) or a certificate of the insurer if approved by Lessor}, certifying that such policy has been issued, providing the coverage 72500. 00916 3348 I 3. 1 6-
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rcquired by this Section and containing provisions specificd herein, shall be delivered to Lessor p or
to the date Lessee is given possession of the Premises or as Lessor may otherwise require, and upon renewals, not less than thirty ( 30) days prior to the expiration of such coverage. Lessor may, at any time, and from time to time, inspect andlor copy any and all insurance policies required to be procured by Lessee hereunder. In no event shall the linnits of any policy be considered as limiting the liability of Lessee under this Lease.
Specific Provisions in Policy. Each policy evidencing insurance required to be carried by Lessee pursuant to this Article shall contain the following provisions or clauses:
a provision that the insurer will not cancel or materially change the coverage provided by such policy without frst giving Lessor thirty (30) days prior written notice; and a waiver by the Lessce' s insurer of any right to subrogation against L,essor, its agents, employees or representatives which arises or might arise by reason of any payment under such policy or policies or by reason of any act or omission of Lessor, its agents, employees or representatives.
If the services provided in relation to this Agreement relate in any way to minors, then this policy shall also include an endorsement for abuse and sexual molestation covering damages arising out of actual or threatened physical abuse, mental injury, sexual molestation, ncgligent: hiring, employment, supervision, investigation, reporling to proper authorities, and retention of any person for whom Lessee is responsible including, but not limited to, its employees and volunteers. Coverage shall be written on an occurrence basis in an amount of not less than 1, 000, 000 per occurrence, with an annual aggregate limit not less than 3, 000, 000.
Primary/ noncontributing. Coverage provided by Lessee shall be primary and any insurance or self-insurance procured or maintained by Lessor shall not be required to con[ribute 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 Lessor before the Lessor' s own insurance or self- insurance shall be called upon to protect it as a named insured.
Enforcement of contract provisions ( non estoppel). Lessee acknowledges and agrees that any actual or alleged failure on the part of the Lessor to inform Lessee of noncompliance with any requirement imposes no additional obligations on the Lessor nor does it waive any rights hereunder.
Prohibition of undisclosed coverage limitations. None of the coverages reyuired herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Lessor and approved of in writing.
Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Lessee' 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. 72500. 0091613Z4A 1443. 1 7-
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Pass Through Clause. Lessee agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Lessee, provide the same minimum insurance coverage and endorsements required of Lessee. Lessee 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. I.essee agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to Lessor for review.
Self-insured retentions. Any self-insured retentions must be declared to and approved by Lessor. Lessor reserves the right to require that self- insured retentions be elinunated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by Lessor.
Additional insurance. Lessee 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. Lessee' s personal property, fixtures, equipment, inventory and vehicles are not insured by Lessor against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other cause.
L.essor' s Substitute Performance. In the event that Lessee fails to procure, maintain andlor pay for at the times and for the durations specified in this Section 7. 1, any insurance reyuired by this Section, or fails to carry insurance required by law or governmental regulation, Lessor may but without obligation to do so) at any time or from time to time, after 3 days written notice to Lessee, procure such insurance and pay the premiums therefor, in which event Lessee shall repay Lessor all sums so paid by Lessor together a 10% handling charge, plus interest thereon as provided elsewhere herein, within fifteen ( 15) days following Lessor' s written demand to Lessee for such payment.
Covenant to Indemnify and Hold Harmless. Lessee shall indemnify, defend, protect and hold harmless Lessor, its officers, public officials, contractors, volunteers, attorneys, agents and employees, and save them from and against any and all claims, actions, losses, damages, liabilities, and expenses, including attorneys' fees, in connection with the loss of life, bodily injury and/or damage to property arising from or out of or in connection with any occurrence in, upon or at the Premises, or the occupancy or use by Lessee of the Premises or any part thereof, or arising from or out of Lessee' s failure to comply with any provision of this Lease or otherwise occasioned wholly or in part by any act or omission of Lessee, its officers, public officials, contractors, volunteers, attorneys, Agents and employees, servants, invitees or licensees, excepting that the foregoing indemnification and hold harmless provision shall not apply in the event of any uninsured willful or actively negligent misconduct on behalf of Lessor or any of its agents, representatives, or employees, or in the event any such claims, actions, losses, damages, liability, eosts, or expenses arise out of a breach by Lessor af its obligations under this Lease. 7250U. 00916 32481 A43. 1 g319
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If Lessor is madc a party to any litigation commenced by or against Lessee, rF-' t en Lessee shall indeiruufy, protect, defend and hold Lessor harrriless and shall pay all costs, expenses and reasonable attorneys' fees incurred or paid by Lessor in connection with such litigation. Lessor may, at its option, require Lessee to assume Lessor' s defense in any action covered by this Section 7. 2 through counsel selected by Lessor and reasonably satisfactory to Lessee. Except for that arising from the failure to make major repairs as defined herein, Only as provided in this Lease, Lessee, as a material part of the consideration to Lessor, hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises and Improvements from any cause whatsoever, and Lessee hereby waives all its claims in respect thereof against Lessor excepting only damage or injury arising out of( i) the uninsured willful or actively negligent misconduct of Lessor or any or its, public officials, contractors, volunteers, attorneys, agents and empioyees, or (ii) a breach by Lessor of its obligations under this Lease.
Waiver of Subrogation. Each party hereto does hereby waive, remise, release and discharge the other party hereto and any officers, public offici ls, contractors, volunteers, attorneys, agents and employees of such other party, of and from any liability whatsoever hereafter arising from ioss or damage for which Lessee has purchased a policy of" all risk" insurance. Lessee shall, upon ahtaining the policy of" all risk" insurance required hereunder, give notice to the insurance carrier or cacriers that the foregoing mutual waiver of subrogation is contained in this L,ease.
Exemption of Lessor from Liability. Except as provided herein and as arising fi•om the failure to makc major repairs, L,essor shall not be liable for injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee' s officers, public officials, contractors, volunteers, attorneys, agents and employees, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether said injury or damage results from conditions arising upon the Premises, from other sources or places, and regardless of whether the cause of such damage or injury or the means of repairing the same is accessible or not.
ARTICLE 8
UTILITY CHARGES
Lessee shall pay all charges for gas, water, sewer, electricity, telephone, security and other utility services used on or in the Premises together with any taxes or penalties thereon.
ARTICLE 9
ALTERATIONS AND ADDITIONS
Without Lessor' s prior written consent, which consent may be withheld or granted in Lessor' s sole discretion, except as provided in Articles 5 or 6 or as needed to make minor repairs as required under this Lease, Lessee shall not have the right to make major changes or alterations to the Premises or the Improvements whether structural or non- structural, systemic or non- systemic. If Lessor approves any alterations or additions, then before the commencement of any work, Lessee shall pay the amount of any increased premiums on insurance policies provided for hereunder.
Except as otherwise provided in Article 5, Lessor shall in no event be required to make any 72500.( x 16 32481443. 1 9-
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alterations, rebuilding, replacement, changes, additions or improvements or repairs to the remes.
If Lessee wishes to make any alteration or addition, or make any repairs to the Premises which would result in an alteration or addition to the Premises not otherwise addressed in this Lease, Lessec shall submit to Lessor for its approval documentation which describes the desired repairs, including floor plans, building sections, building materials and components, samples of proposed exterior building materials, and the like, to the extent relevant to the particular repair. All changes, alterations, rebuilding, replacements, additions, improvements and repairs to the Premises made by Lessee shall be deemed to have attached to the realty and to have become the property of Lessor upon thc expiration of the Term or the sooner termination of this Lease.
ARTICLE 10
DAMAGE OR DESTRUCTION; CASUALTY LOSS AND RESTORATION
10. 1 Non- Termination. Except as provided herein, no destruction or damage to the Improvcments or the Premises by fire, windstorm, or other casualty whether insured of uninsured shall entitle Lessee to terminate this Leasc. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to or destruction of the Premises and the Improvements with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent it is inconsistent herewith.
10. 2 Repair of Damage.
0. 2. 1 Obli ation to Repair Dama e Due to Casualty Covered bY Insurance. If the Premises are partially destroyed or rendered partially un- leasable by fire or other casualty required to be insured against by Lessee, Lessee shall promptly proceed to obtain insurance proceeds. The Premises shall be deemed partially destroyed if the cost of reconstruction exceeds fifty percent ( 50°l0) of the replacement cost of the Improvements. Upon adjustment of the loss and delivery of funds, Lessor shall commence taking the steps necessary to begin reconstruction and shall complete the same as soon as possible so that Lessee may continue in occupancy.
10. 2. 2 Obligation to Repair Damage Due to Casualty Not Covered bv Insurance or Followin a Total Destruction. If the Premises are totally or partially destroyed or rendered wholly un- leasable by a casualty not required to be insured against by Lessee, then either Lessee or Lessor shall have the right to terminate this Lease. Lessee may provide alternative sites for the programs provided before thc loss so that they may continue to serve the residents of[ he City and Lessor shall provide reasonable compensation therefor.
10. 3 Continued Operations. During any period of repair, Lessee may, to the extent it is safe or Lessee is able to do so, continue, or cause the continuation of, the operation of its Specitic Use on the Premises and use of the Premises by the Lessee to the extent reasonably practicable.
However, irrespective of the continued operation during such period of repair, the rent and other charges payable hereunder shall not be deferred and shall not be abated. Upon completion of such repair and restoration, Lessee shall promptly refixture and restock the Improvements and all FF& E, if necessary, substantially to the condition prior to the casualty, or as otherwise required by this Lease, whichever is greater, and shall reopen if closed by the casualty.
10. 4 Assi nment of Insurance Proceeds. If for any reason this Lease is terminated by reason of a casualty, all insurance proceeds covering the Improvements, the Premises, or the FF& E, 72500. 1x 16 324814d3. 1
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and any personal property used in the operation of the Premises, shall be the property of Lessor, and Lessee hereby assigns such insurance proceeds to Lessor.
ARTICLE 11
ASSIGNMENT AND 5UBL TTING
11. 1 Lessor' s Consent Rec uired. Notwithstanding any provision herein to the contrary, Lessee agrees and covenants ( which covenants shall be binding upon the successors and assigns of Lessee) that Lessee shall not, eithcr voluntarily or by operation of law, assign, sell, encumber, pledge or otherwise transfer all or any part of Lessee' s leasehold estate hereunder, or permit the Premises to be occupied by anyone other than Lessee, Lessee' s employees or invitees, or sublet the Premises, or any portion thereof, without Lessor' s prior written' consent. No assignment, whether voluntary oiinvoluntary, by operation of law, under legal process or proceedings, by receivership, in bankruptcy, or othei•wise, and no subletting shall be valid or effective without such prior written consent, and at Lessor' s election, shall constitute a default. Lessor' s consent to any proposed transfer of Lessee' s leasehold estate will not be unreasonably withheld.
11. 2 Lessee Remains Obligated. No sublet ing or assignment, even with the consent of Lessor, shall relieve Lessee of its obligation to pay rent and to perform all of its other obligations hereunder. The acceptance by Lessor of any payment due hereunder from any person or entity other than Lessee shall not be construed as a waiver by Lessor of any provision of this Lease or as a consent to any assignment or subletting. Consent by Lessor to an a.Ssignment of the Lease or to a subletting of the Premises shall not operate as a waiver or estoppel to the future enforcement by Lessor of its rights pursuant to this Lease to approve other assignments or sublettings.
ARTICI, E 12
DEFAULT
12. 1 Events of Default. The word " default," as used in this Section, shall mean and include any one or more of the following events or occurrences:
12. 1. 1 The failure by Lessee to make any payment of Base Rent, additional rent, or other payment required to be made by Lessee hereunder, when due and the continuance of such failure for a period of ten ( 10) calendar days after Lessor has given Lessee written notice specifying the same;
12. 1. 2 The failure of Lessee to perform any other term, condition, covenant or agreement of this Lease not previously described, and the continuation of such failure for a period of thirty ( 30) calendar days after Lessor shall have given Lessee written notice specifying the same, or in the case of a situation in which the default cannot reasonably be cured within thirty ( 3U) calendar days, if Lessee shall not promptly, within thirty ( 30) calendar days after receipt of such notice, commence to remedy the situation by a means that can reasonably be expected to remedy the situation within a reasonable period of time, and diligently pursue the same to completion;
12. 1. 3 The abandonment by Lessee of the Premises or a substantial portion thereof;
12. 2 Remedies.
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12. 2. 1 General, ln the event of any default by Lessce, including the expirationo any applicable cure period, Lessor may terminate Lessee' s right to possession of the Premises by any lawful means, in which case this Lease tihall terminate and Lessee shall immediately surrender possession of the Premises to Lessor.
12. 2. 2 ln such event Lessor shall be entitled to recover from Lessee:
12. 2. 2. 1 The worth at the time of award of the unpaid rent which had been earned at the time of termination;
12. 2. 2. 2 1'he worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such loss that Lcssee proves could have been reasonably avoided; 122. 2. 3 The worth at the time of award of the amount by which the unpaid rent for the balance of the Term after the time of award exceeds the amount of such loss that Lessee proves could be reasonably avoided; and
12. 2. 2. 4 Any other amount deemed necessary and/ or allowable by applicable statute or decision ta compensate Lessor for all the detriment proximately caused by Lessee' s failure to perform its obligations under this L,ease or which, in the ordinary course of events, would be likely to result therefrom, including, but not limited to, the cost of recovering possession of the Premises, expenses of reletting, expenscs of restoring the Premises to the condition required hereunder ( if applicable), reasonable attorneys' fees, and any other reasonable costs.
12. 2. 2. 5 The " worth at the time of award" of the amounts referred to in the subparagraphs, above, shall be computed by allowing interest at a rate equal to ten percent ( 10%) from the dates such amounts accrued to Lessor until the date of payment by Lessee.
12. 3 Cumulative Remedies. Except as may be specifically provided herein, the rights and remedies reserved to Lessor and Lessee herein, including those not specifically described, shall be cumulative and, except as provided by California statutory or case law in effect at the time, either Lessor or Lessee may pursue any or all of such rights and remedies at the same time or otherwise.
12. 4 Lessor' s Non- Waiver. No delay or omission of Lessee or Lessor to exercise any right or remedy shall be construed as a waiver of any right or remedy or ofany default by Lessee or Lessor hereundei•. The acceptance by Lessor of rent or any other charge hereunder shall not be a waiver of any preceding breach or default by Lessee of any provision hereof, other than the failure of Lessee to pay the particular rent accepted, regardless of Lessor' s knowledge of such preceding breach or default at the time of acceptance of such rent, or a waiver of Lessor' s right to exercise any remedy available to Lessor by virtue of such breach or default. The acceptance of any payment from a debtor in possession, a trustee, a receiver or any other person acting on behalf of Lessee or Lessee' s etitate shall not waive or cure a default under this Section.
12. 5 Lessor' s Reentrv. Lessee hereby irrevocably consents to Lessor' s peaceable reentry, if Lessor so elects, to the Premises upon the occurrence of any of the events of default specified above, including the expiration of any applicable cure period.
12. 6 Lessor' s Advances. In the event of any default by Lessee in the payment of money or default by Lessee in the performance of Lessee' s obligations required under this Lease, and the zsoo. 00v as i aa. i 12-
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expiration of any period expressly provided for herein for Lessee to cure said default a tethe delivery of notice by Lessor, in addition to the other remedies herein granted to Lessor, Lessor may, but shall not be obligated to do so, and without waiving or releasing Lessee from any obligations of this Lease make any payment and perform any other act on Lessee' s part to be made or performed as provided in this Lease. All sums paid by Lessor and all necessary incidental costs, together with interest thereon at the rate of ten percent ( 10%) per annum from the date of the payment by Lessor shall be payable by Lessee to Lessor on demand. The sums shall be deemed to be additional rent and subject to the same conseguences as herein provided for failure to pay rent.
12. 7 Default by Lessoi•. Lessor shall not be deemed to be in default in the performance of any obligation required to be perfot-med by it hereunder unless and uniil it has failed to perform such obligation within thirty ( 30) calendar days after written notice by Lessee to Lessor specifying in reasonable detail the nature and exlent of any such failure; provided, however, that if the nature of Lessor' s obligation is such that more than thirty (30) calendar days are required for its performance, then L,essor shall not be deemed to be in default if it shall commence such performance within such thirty (30) calendar day period and thereafter diligently prosecutes the same to completion.
12. 8 Le al Expenses and Collection Costs. If either Party incurs any expense, including actual costs of collection, reasonable attorneys' fees, expenses of discovery, preparation for litigation, expert witness feeti and litigation expenses and costs, in connection with any action or proceeding instituted by either Party by reason of any default or alleged default of the other Party hereunder, the party prevailing in such action or proceeding shall be entitled to recover its reasonable expenses from the other Party. For purposes of this provision, in any unlawful detainer or otheiaction or proceeding instituted by Lessor based upon any default or alleged default by Lessee hereundcr, Lessor shall be decmed the prevailing party if( a) judgement is entered in favor of Lessor or ( b) prior to trial or judgement Lessee shall pay the rent and charges claimed by Lessor, or eliminate the condition( s), cease the act( s) or otherwise cure the omission( s) claimed by Lessor to constitute a default by Lessee hereunder.
ARTICLE 13
HOLDING OVER
This Lease shall terminate and become null and void without further notice upon the expiration of the Term herein specified, and any holding over by Lessee after such expiration shall not constitute a renewal or extension hereof or give Lessee any rights under this Lease, except when in writing signed by both Parties hereto. If Lessee holds over at the Premises, Lessee shall be liable to Lessor for the fair rental value of the Premises during such period.
ARTICLE 14
ACCESS BY LESSOR
In addition to the right of Lessor to reserve use of the Premises under Article 3, Lessor and its agents, contractors, servants, and employees of Lessor shall have the right, after rcasonable notice to Lessee, to enter the Premises during normal business hours to ( a) examine the Premises, to perform any obligations of Lessor or to exercise any right or remedy reserved to Lessor 725(H).00916 324814A3. 1 13-
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in this Lease; ( b) exhibit the Premises to prospective purchasers, mortgagees or lessees o' Less• or' ti interest therein; ( c) make such repairs as Lessor may be entitled to make after a default by Lessee under Article 12, above; and ( d) take all materials into and upon the Premises that may be required in connection with such repairs, provided that any such entry sh ill be performed in such a manner that does not unreasonably interfere with Lessee' s use of thc Premises. If Lessor exercises its rights of entry in compliance with this Article l4, such entry shall not constitute a constructive or actual eviction of Lessee, in whole or in part, and the rent and other charges hereunder shall noi abate while any such repairs are being made. If, during the last month of the Term, Lessee shall have removed all oi• substantially all of Lessee' s property therefrom, Lessor may immediately enter and alter, renovate and redecorate the Premises without elimination or abatement of rent or other charges and without other compensation and such action shall have no effect upon this Lease. Nothing herein contained, however, shall be deemed or construed to impose upon Lessor any obligation, responsibility or liability whatsoever for the care, supervision or repair of the Premises.
ARTICLE 15
LESSEE' S OBI, IGATIONS AT THE F,ND OF THE TERM
Upon the expiration or sooner termination of this Lease, if the Lessee has faithfully and fully performed all of the terms, conditions, and covenants of this L. ase to be performed by the Lessee, but noi otherwise, the Lessee shall, at its sole cost and expense, remove from the Premises all of its movable trade fixtures and equipment, and such other items the Lessee has installed or placed on the Premises, and the Lessee tihall repair all damage to the Improvements resulting from such removal. The Lessee shall thereupon surrender the Premises and the Improvements in the same condition as they were when the Improvement were first completed, reasonable wear and tear and damage by any casualty excepted, clean and free of debris. The Lessee shall repair any damage to the Improveinents occasioned by the installation or removal of the Lessee' s trade fixtures, furnishings and equipment. I} the Lessee has not fully and faithfully performed all terms, conditions, and covenants of this L.ease to be performed by the Lessee, the Lessee shall nevertheless remove its personal property from the Premises in the manner aforesaid within fifteen ( 15) calendar days after receipt of written direction to do so from the Lessor. In the event the Lessee shall fail to remove any of its personal property as provided herein, the Lessor may, but is not obligated, at the Lessee' s expense and with interest at the highest rate then allowcd to be charged by non- exempt lenders under the usury laws of the State from the date of payment by the Lessor, remove all such personal property not so removed and repair all damage to the ImprovemenCs resulting from such removal and may, but is not obligated to, at the Lessec' s expense, store the same in any public or privatc warehouse, and the Lessor shall have no liability to the Lessee for any loss or damage to the Lessee' s property caused by or resulting from such removal. To the extent that Lessor has provided the major repairs, and subject to reasonable wear and tear, the Lessee shall leave the airlines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning, plumbing and fencing on the Premises in good operating condition.
ARTICLE 26
QUIET ENJOYMENT
Upon payment by Lessee of the rents provided herein, and upon the observance and performance of all of the covenants, terms, and conditions on the part of Lessee to be performed hereunder, Lessor covenants and warrants that Lessee may peaceably and quietly hold and enjoy the 72500.( X 16\ 32481443. 1 4-
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Premises for the Term.
ARTICLE 17
TAXES
Lessee shall be responsible for, and agrees to pay, as additional rent, prior to delinquency, any and all real estate or property taxes and assessments, special assessments, possessory interest taxes, levies, fees, and other governmental charges of every kind or nature hereinafter collectively called " Taxes") in the event such Taxes are levied or assessed by municipal, county, state, fedcral, or other t ucing or assessing authorities or governmental agencies or entities upon, against, or with respect to ( i) the Premises or any portion thereof; (ii) all fixtures, equipment, and any other property of any kind owned by Lessee or placed, installed, or located within, upon, or about the Premises for which Lessor mighl be assessed or which might become a lien on the Premises if not paid by Lessee; ( iii) all alterations, additions, and improvements of whatsoever kind or nature, if any, made to the Premises or the Improvements; ( iv) rentals or other charges payable by Lessee to Lessor ( other than state and federal income taxes applicable to Lessor}; and ( v) any other interest in the Premises ( including the leasehold interest created by this Lease), irrespective of whether any of the items described in clauses ( i) through ( v) above are assessed as real or personal property, and irrespective of whether any of such items are assessed to or against Lessor, Lessee or any other person.
ARTICLE 18
FORCE MAJEURE
In the event the performance by either Party of any of its obligations hereunder is delayed by reason of the act or neglect of the other Party, act of God, stormy or inclement weather, strike, labor dispute, boycott, lockout or other like defensive action by such Party, inability to obtain labor or materials, governmental restrictions, riot, insurrections, war, catastrophe, casualty, act of the public enemy, or any other cause ( financial inability excepted), whether similar or dissimilar, beyond the reasonable control of the Party from whom such performance is due, the period for the commencement or completion thereof shall be extended for a period equal to the period durinb which performance is so delayed.
AKTICLE 19
MISCELLANEOUS
19. 1 Assumption of Risk, Waiver, and Lessor' s Non-liability. To the maximum extent allowed by law, except for Lessor' s or Lessor' s officers, employees, and agents willful or actively negligent acts, Lessee assumes any and all risk of loss, damage or injury of any kind to any person or property which is in, on or about the Premises. Lessee' s assumption of risk shall include, without limitation, loss or damage caused by defects within the Premises or any fixture therein, accident, fire or other casualty on the Premises. To the maximum extent allowed by law, except for Lessor' s willful or actively negligent acts, Lessee hereby waives all claims and demands against Lessor, its respective officials, officers, employees, volunteers and agents for injury to persons, damage to property or any other interest of Lessee sustained by Lessor or any person claiming to be Lessee resulting from any occurrence on or about the Premises. 7? 00. 00916 124A 1443. 1 15-
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19. 2 Notices. All notices, demands, or other writings to be made, given or sent hereunder, or which may be so given or made or sent by either Lessor or Lessee to the other shall be deemed to have been given when in writing and personally delivercd or if mailed on the third ( 3rd) day after being deposited in the United States mail, certified or regis[ered, postage prepaid, and addressed to the respective Parties at their addresses set forth below:
To Lessor: To Lessee:
City of Palm Desert Desert Recreation District
73- 510 Fred Waring Drive 45- 305 Oasis Street
Palm Desert, California 92260 Indio, California 92201
Attn: City Manager Atln: General Manager
19. 3 Relationship of Parties. Nothing contained herein shall be deemed or construed by the Parcies hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the Parties hereto, it being understood and agreed that neither the method of computation of rent, nor any other provision contained herein, nor any acts of the Pai•ties herein, shall be deemed to create any relationship between the Parties hereto other than the relationship of Lessor and I.essee.
19. 4 Accord and Satisfaction. No payment by Lessee or receipt by Lessor of a Iesser amount than the rent or other charges herein stipulated shall be deemed to be other than on account of the earliest due stipulated rent or other charges, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent or other charges be deemed an accord and satisfaction, and Lessor shall accept such check or payment without prejudice to Lessor' s right to recover the balance of such rent or other charges or pursue any other remedy in this Lease provided.
19. 5 Time of Essence. Time is hereby expressly declared to be of the essence of this Lease and of each and every term, covenant, and condition hereof which relates to a date or period of time.
19. 6 Remedies Cumulative. The remedies herein given to Lessor and Lessee shall be cumulative and are given without impairing any other rights or remedies given Lessor and Lessce by statute or law now existing or hereafter enacted, and the exercise of any one remedy by Lessor or Lessee shall not exclude the exercise of any other remedy.
19. 7 Effect of Invalidity. If any term or provision of this Lease or the application thereof to any person or circun stances shall, to any extent, be invalid or unenforceable, the remaindcr of this Lease, or the application of its terms and provisions to persons and circumstances other than those to which it has been held invalid or unenforceable shall not be affected thereby, and each term and provision of this Lease shall be valid and enforceable to the fullest extent permitted by law. No acquisition by Lessor of all or any of the interest of L.essee in or to the Premises or the Improvements, and no acquisition by Lessee of all or any interest of Lessor in or to the Premises shall constitute or work a merger of the respective interest, unless expressly provided for. 72500. 00916 32481443. 1 i b327
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19. 8 Successors and Assi ns. This Lcase and the covenants and conditions contained herein shall be binding upon and inure to the benefit of and shall apply to the successors and assigns of Lessor and to the permitted successors and assigns of Lessee, and all references in this Lease to Lessee" or " Lessor" shall be deemed to refer lo and include all permitted successors and assigns of such Party.
19. 9 Entire A reement. This Lease and the Exhibits hereto contain the entire agreement of Lessor and Lessee wi[ h respect to the matters covered hereby, and no other agreement, statement of promise made by either Lessor or Lessee which is not con[ ained herein, shall be valid or binding.
No prior agrecment, understanding, or representalion peRaining t any such matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signcd by Lessor and Lessee.
19. 10 Interest on Past-Due Obli at ions• Any amount due from Lessee to Lessor hereunder which is not paid when due ( including, without limitation, amounts due as reimbursement to Lessor for costs incurred by Lessor in performing obligations of Lessee hereunder upon L.essee' s failure to so perform) shall bear interest at the rate of ten percent ( 10%) from the date due until paid, unless otherwise specifically provided herein, but the payment of the interest shail not excuse or cure any default by Lessee under this Lease.
19. 1 1 Controlling Law. This Lease shall be governed by and construed in accordance with the laws of the State of California.
19. 12 ecific Performance. Nothing contained in this Lease shall be construed as or shall have the effect of abridging the right of either Lessor or Lessee to obtain specific performance of any and all of the covenants or obligations of the other Party under this L,ease.
19. 13 Survival of Indemnities and Warranties. The obligations of the indemnifying Pariy under each and every indemnification and hold harmless provision contained in this Lease shall survive the expiration or earlier termination of this Lease to and until the last to occur of( a) the last date permitted by law for the bringing of any claim or action with respect to which indemnification may be claimed by the indemnified party against the indemnifying party under such provision or ( b) the date on which any claim or action for which indemnification may be claimed under such provision is fully and finally resolved, and, if applicable, any compromise thereof or judgement or award thereon is paid in full by the indemnifying party and the indemnified party is reimbursed by the indemnifying party for any amounts paid by the indemnified party in compromise thereof or upon judgment or award thereon and in defense of such action or claim, including reasonable attorneys' fees incurred. The representations, warranties, and covenants of the Parties contained herein shall survive the termination of this Lease without regard to any investigation made by the Parties.
19. 14 Severability. If any provision of this Lease is held to be invalid or void by a court of competent jurisdiction, the balance of the rovisions shall, nevertheless, remain in fu11 force and effect.
19. 15 Counterparts. This Lease may be executed in multiple counterparts each of which shall be deemed an original.
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19. 16 Recitals lncorporated. The recitals shown on the first page of this Lease are hereby incorporated into the Lease, and the Parties agree to the truth and accuracy of the facts contained therein.
Signature provision on following page.]
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IN WITNESS WHEREOF, the Parties hereto have executed this Lease as of the Term Commencement Date.
LESSEE I.ESSOR
DESERT RECREATION DISTRICT, CI1'Y OF PALM DESERT,
A Cali ornia special istrict A California municipal corporation r A
B y: B y: /., L'/ '
V
Ke Kalman cina I' estande
Gen ral Manager ayor
Dated: 3 V t' C Z L _ Dated: I — " zO
ATTEST:
B y:
Rac e] le D. Kl. ssen
City Clerk
APPROVED AS TO FORM: APPROVED AS TO FORM:
BEST BEST & IEGER LLP
B y:
Betsy Martyn, Esq. Rob rc w. t r: a s
City Attorne
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L 1 WTTNESS WHEREOF, the Parties hereto have executed this Lease as of the Tercn Commcncement Date.
LESSEE I ESSOR
DESERI' RECREATION DISTRICT, CITY OF PALM DESERT,
A California special district A California municipal corporation By: RY
Kevin Kalman Gina Nestande
General Manager tayor
Dated: Dated:
ATTEST:
By:
Rachelle D. Klassen
City Clerk
APPROVED AS TO FORM: APPROVED AS TO FORM:
BEST BEST& KRIEGER LLP
gy. ,,,
t- a- vyY By:
Betsy Martyn, Esq. Robert w. N rKre:,vr5
City Attorney
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CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189
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 Q j Q f G
On i e 7 t 2_L before me,
Date Here 1 s rt Name and Title o the Officer
personally appeared
Name ) of Signer( g)
who proved to me on the basis of satisfactory evidence to be the person(,) whose name( is/ afe subscribed to the within instrument and acknowledged to me that he/ sl e/ f iey executed the same in his,4 er N eicauthorized capaciry( j eS), and that by his/ klerl4kieir signaturej on the instrument the person, or the entity upon behalf of which the person( acted, executed the instrument.
I certify under PENALTY OF PERJURY under the
DELIA GRANADOS laws of the State of California that the foregoing Notuy PuDlic- C INorni paragraph is true and correct.
Rirersfd County WITNESS my hand and official seal. Commifslon M 2155041 M Comm. Ex ir s Jun 24, 2020
Signature
Ploce Notary Seol and/ or Stamp Above Signature of Notary Public
OPTIONAL
Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended documenf. j Description of Attached Docu ent
Title or Type of Document: : SA- i-t r z SL( c II.
r^
Document Date: Q, t_ T
n Z : Number of Pages:
Signer( s) Other Than Named Above:
Capacity(ies) Claimed by Signer( s)
Signer' s Name: Signer' s Name:
Corporate Officer- Title( s): Corporate Officer- Title( s):
Partner- Limited General Partner- Limited General
Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other: Other:
Signer is Representing: Signer is Representing:
2018 National Notary Association
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CONTRACT NO. C39690
EXHIBIT" A"
Legal Description
That certain real property situated in the City of Palm Desert, County of Riverside, State of California, as described as follows:
43900 San Pablo Avenue( APN: 622- 250- 016)
PARCEL 4 OF PARCEL MAP NO. 37347, IN THE CITY OF PALM DESERT, COUIVTY OF RIVERSID, STATE OF CAI, IFORNIA, AS PER MAP FILED IN BOOK 245, PAGES 100 THROUGH 1] 0, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDED OF SAIll COUNTY.
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Exhibit" B"
Project Improvements Agreement
The Parties ( individually refcrred to as " City" and " District") agree as follows as the design, plans, specifications, public works bidding process and project management for the Improvements set out in Article S of the Lease.
Citv Responsibilit
a. City wi( 1 pay for the cost of HVAC replacement, new roof and foundation repair as set out in Section 5. 2 of ihe Lease(" City Im rovements").
2. District Responsibility.
a. District shall pay to recon gure the Premises' inierior (" llistrict Improvements").
b. District shall pay for the Project design ( including City and District Improvements), if required, including plans, specifications, public works bidding process, and Project management for as set out in Sectians 5. 3 and 5. 4 of the Lease. i) The Project design shall be subject to review and reasonable approval by City prior to the commencement of any construction, and shall be finalized in consultation with City. Upon approval of the Project design by the District and City, funds shall be authorized and budgeted by City for payment for construction associated with the Project. ii) District shall issue a request for proposals for the construction management services for the Project and contract with the successful firm for these management services or shall determine itself to provide such services. District shall bear the cost of such management services. iii) District shall seek bids for the construction of the Project. a) The format used for all bid solicited by District for the Project shall require itemi-r.ation sufficient to allow quantities of each bid item to be easily discernible. If reyuested by City prior to the award of the bid, it shall be the responsibility of District to determine what, if any, portion of the work is an enhancement to any specifications by City for City Improvements, for which there shall be no City reimbursement.
b) The District shall use bidding procedures as required by state law for both parties.
c. Upon review and approval of the apparent low bidder costs by City, Dis[ ricl shall contract with the successful bidder for the construction of the Project. The City Foundation ImProvemen[ s shall be Phase 1 f the Projec[ and the City HVAC and roof repair along « ith the l istrict Improvements shall be Phase 2.
3. Payment Obli at IOnS: IVotwithstanding any other provisions herein, neither District nor City shall be obligated for any monetary contributions that have not been approved and budgeted for this Project. The budget for this Project will be based on the Engineer' s Estimate, and approved by City and District based on the lowest responsive bid received. Should the lowest responsive 21-
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AMENDMENT NO. 1 TO LEASE AGREEMENT
THIS AMENDMENT NO. 1 TO LEASE AGREEMENT Contract No. C39690 (“ First Amendment”) is entered as of June 8, 2023, by and between CITY OF PALM DESERT, a California municipal corporation (“ Lessor”), and the DESERT RECREATION DISTRICT, a California special district (“ Lessee”). Lessor and Lessee are sometimes referred to herein individually as a Party” or collectively as the “ Parties.”
RECITALS
WHEREAS, Lessor and Lessee previously entered into that certain Lease Agreement dated January 1, 2020 ( the “ Lease”), for the lease of the premises more particularly described therein located at 43900 San Pablo Avenue, Palm Desert, California 92260 ( the “ Premises”); WHEREAS, Lessee desires to make certain tenant improvements to the Premises as more particularly described on Exhibit A hereto and incorporated herein ( the “ Additional District Improvements”);
WHEREAS, Lessor will agree to provide a tenant improvement allowance to provide reimbursement to Lessee for the cost of such Additional District Improvements, subject to the limitations set forth herein;
WHEREAS, Lessor finds and determines that providing the tenant improvement allowance to facilitate the construction of the Additional District Improvements will enhance recreational opportunities available to the residents and taxpayers, and the Additional District Improvements will benefit the areas within the City of Palm Desert commonly known as Project Areas Nos. 2 and 3;
NOW THEREFORE, Lessor and Lessee desire to amend the Lease on the terms and conditions as provided in this First Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby mutually agree as follows:
1. Amendments to Lease. The Lease is hereby amended as follows:
a. Term. Section 1.1 of the Lease is hereby amended to read in its entirety as follows:
1.1 Term. The “ Term” of this Lease shall be thirty-five (35) years, commencing on January 20, 2020 ( the “ Term Commencement Date”) with an option to renew the Lease at the Parties’ mutual discretion for three ( 3), five (5)-year terms, unless terminated earlier by Lessor or Lessee ( subject to terms herein).”
b. Additional Rent. A new Section 2.2 is hereby added to the Lease to read as follows:
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Contract No. C39690
2 2.2 Additional Rent. In addition to the Base Rent, Lessor shall pay to Lessor on each January 1 and July 1, commencing on January 1, 2025, additional rent in the amount necessary to fully amortize the aggregate amount of the Tenant Improvement Allowance which was disbursed by Lessor in semi- annual payments with an interest rate of 3% per annum over the remaining portion of the initial Term (the “ Additional Rent”). An estimated Additional Rent payment schedule is attached hereto as Exhibit B. The interest component shall begin to accrue on the outstanding unamortized portion of the Tenant Improvement Allowance on the date that Lessor first disburses such Tenant Improvement Allowance or any portion( s) thereof. On or about December 1, 2024, Lessor shall provide to Lessee in writing the final amortization schedule for the payment of the Additional Rent based on the aggregate amount of the Tenant Improvement Allowance actually disbursed pursuant to this First Amendment, and taking into account the date of each disbursement with respect to calculating the interest component.”
c. Additional District Improvements. The Additional District Improvements described herein shall be included in the meaning of the term “ District Improvements” as used in the Lease, and shall be subject to the terms of the Lease, including Exhibit B thereto. d. Construction and Installation of Additional District Improvements. A new Section 5.5 is hereby added to the Lease to read as follows:
5.5 Construction and Installation of Additional District Improvements. The Lessee hereby agrees to use commercially reasonable efforts to construct and install the Additional District Improvements on or before the first anniversary of the execution of this First Amendment.”
e. Tenant Improvement Allowance. A new Section 5.6 is hereby added to the Lease to read as follows:
5.6 Tenant Improvement Allowance.
5.6.1 Amount of Tenant Improvement Allowance. Provided the Lessee is not then in default under the terms of this Lease, the Lessor will make available to Lessee for the construction of the Additional District Improvements, a maximum amount of the sum of Twelve Million Five Hundred Thousand and 00/100 Dollars ($ 12,500,000.00) ( the Tenant Improvement Allowance”), to be applied towards all hard and soft costs associated with any alterations, additions, installations, changes, improvements, and/or other renovation included in the Additional District Improvements, including but not limited to actual construction costs, architectural, design, and engineering fees, city building permit fees, and or other consultants (“ Tenant Improvements”). If the costs for the Tenant Improvements exceeds the Tenant Improvement Allowance, Lessee shall bear and pay the cost of such excess. If the actual cost of the Tenant Improvements is less than the Tenant Improvement Allowance, the remaining portion of the Tenant Improvement Allowance after disbursement for all costs incurred) shall be cancelled and no further disbursements of the Tenant Improvement Allowance shall be made.
5.6.2 Disbursement of Tenant Improvement Allowance. Provided the Lessee is not then in default under the terms of this Lease, the Lessor will disburse amounts from the Tenant Improvement Allowance from time to time ( but not more than once per DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 336
Contract No. C39690
3 month) following Lessor’ s receipt of ( i) a written request by Lessee requesting a disbursement from the Tenant Improvement Allowance and specifying the amount requested, ( ii) copies of invoices, including all reasonable detail relating thereto as may be requested by Lessor, for all work performed for which payment is being requested by Lessee, and ( iii) evidence satisfactory to Lessor that Lessee has paid all invoices for which disbursement is being requested from Lessor. All requests for disbursement from the Tenant Improvement Allowance shall be made on or before October 1, 2024.
5.6.3 Reimbursement of Tenant Improvement Allowance. Lessee shall reimburse Lessor for the amount of the Tenant Improvement Allowance disbursed to Lessee through the payment of Additional Rent in accordance with Section 2.2 hereof.” f. Maintenance. Section 6.1.1 of the Lease is hereby amended to read in its entirety as follows:
6.1.1 Lessee’ s Obligations. Lessee shall be responsible for minor repairs, herein described as “ District Improvements,” at Lessee’ s expense without cost to Lessor, and shall at Lessee’ s expense maintain in good order, condition, quality, and repair, the Premises including the Additional District Improvements) and every part thereof, and any and all appurtenances thereto wherever located, and all other repairs, replacements, renewals, and restorations, ordinary and extraordinary, foreseen and unforeseen.” g. Rental Interruption Insurance. A new Section 7.1.2 is hereby added to the Lease to read as follows:
7.1.2 Rental Interruption Insurance. In addition to the insurance required pursuant to Section 7.1.1 hereof, the Lessee shall procure and maintain, or cause to be procured and maintained, until the Tenant Improvement Allowance has been reimbursed in full pursuant to Section 2.2, rental interruption or use and occupancy insurance to cover loss, total or partial, of the use of any portion of the Premised constituting buildings or other improvements as a result of any of the hazards covered in the insurance required by Section 7.1.1. Lessor shall be named an additional insured or loss payee as applicable, and the insurance shall be issued by an insurance company meeting the requirements of Section
7.1.1. Such insurance shall be in an amount at least equal to the maximum Additional Rent coming due and payable during any two consecutive years. Such insurance may be maintained ( i) as part of or in conjunction with any other insurance coverage carried by the Lessee ( except that it may not be maintained in whole or in part in the form of selfinsurance by the Lessee); or (ii) in the form of the participation by the Lessee in a joint powers agency or other program providing pooled insurance. The net proceeds of such insurance, if any, shall be paid to Lessor for application to the payment of the Additional Rent.”
h. Abatement. A new Section 10.3 is hereby added to the Lease to read as follows:
10.3 Abatement Due to Damage or Destruction. The amount of Additional Rent will be abated during any period in which by reason of damage or destruction there is substantial interference with the use and occupancy by the Lessee of the Premises or any portion thereof. The amount of such abatement shall be determined by the Lessee such that DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 337
Contract No. C39690
4 the resulting Additional Rent represents fair consideration for the use and occupancy of the portions of the Premises that are available for use and occupancy. Such abatement shall continue for the period commencing with such damage or destruction and ending with the substantial completion of the work of repair or reconstruction. In the event of any such damage or destruction, this First Amendment shall continue in full force and effect and the Lessee waives any right to terminate this First Amendment by virtue of any such damage and destruction. Notwithstanding the foregoing, there shall be no abatement of Additional Rent under this Section 10.3 to the extent that the proceeds of hazard insurance, or rental interruption insurance, are available to pay Additional Rent which would otherwise be abated under this Section 10.3.”
2. Representations and Warranties. The Lessee makes the following covenants, representations and warranties to the Lessor as of the date of the execution and delivery of this First Amendment:
a. Due Organization and Existence. The Lessee is a recreation and park district duly organized and validly existing under the Constitution and laws of the State of California, has full legal right, power and authority under the laws of the State of California to enter into this First Amendment and to carry out and consummate all transactions contemplated hereby and thereby, and by proper action the Lessee has duly authorized the execution and delivery of this First Amendment.
b. Due Execution. The representatives of the Lessee executing this First Amendment have been fully authorized to execute the same pursuant to a resolution duly adopted by the Board of Directors of the Lessee.
c. Valid, Binding and Enforceable Obligations. This First Amendment has been duly authorized, executed and delivered by the Lessee and constitutes the legal, valid and binding agreement of the Lessee enforceable against the Lessee in accordance with its terms. d. No Conflicts. The execution and delivery of this First Amendment, the consummation of the transactions herein contemplated and the fulfillment of or compliance with the terms and conditions hereof, do not and will not conflict with or constitute a violation or breach of or default ( with due notice or the passage of time or both) under any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any indenture, mortgage, deed of trust, lease, contract or other agreement or instrument to which the Lessee is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Lessee, which conflict, violation, breach, default, lien, charge or encumbrance would have consequences that would materially and adversely affect the consummation of the transactions contemplated by this First Amendment or the financial condition, assets, properties or operations of the Lessee or its properties. e. Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the Lessee or of the voters of the Lessee, and no consent, permission, authorization, order or license of, or filing or registration with, any governmental authority is necessary in connection with the execution and delivery of this First Amendment, or the DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 338
Contract No. C39690
5 consummation of any transaction herein contemplated, except as have been obtained or made and as are in full force and effect.
f. No Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, educational or other governmental authority pending or, to the knowledge of the Lessee after reasonable investigation, threatened against or affecting the Lessee or the assets, properties or operations of the Lessee which, if determined adversely to the Lessee or its interests, would have a material and adverse effect upon the consummation of the transactions contemplated by or the validity of this First Amendment, or upon the financial condition, assets, properties or operations of the Lessee, and the Lessee is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, educational or other governmental authority, which default might have consequences that would materially and adversely affect the consummation of the transactions contemplated by this First Amendment or the financial conditions, assets, properties or operations of the Lessee or its properties.
3. Effectiveness of Agreement. Except as explicitly modified by this First Amendment, all of the terms and provisions of the Agreement are and remain in full force and effect.
4. Entire Agreement. This First Amendment and the Agreement represent the final and entire agreement between Lessor and Lessee regarding the subject matter hereof and thereof, and may not be contradicted by evidence of prior, subsequent, or contemporaneous oral agreements of the Parties.
5. Modification. No amendment or modification hereto shall be valid and binding unless expressed in writing and executed by both Parties hereto.
6. Authority. Each individual executing this First Amendment on behalf of an entity represents and warrants that he or she is duly authorized to execute and deliver this First Amendment on its behalf.
7. Counterparts. This First Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this First Amendment delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
Signatures on Following Page]
DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 339
Contract No. C39690
6 IN WITNESS WHEREOF, the Parties have caused this First Amendment to be executed by and through their respective authorized representatives, as of the date first above written.
Approved as to Form:
CITY ATTORNEY
By: ________________________________
Name: Isra Shah
Best Best & Krieger LLP
LESSEE:
DESERT RECREATION DISTRICT, A
California special district
By: ________________________________
Name: Kevin Kalman
Title: General Manager
Dated: ______________________
LESSOR:
CITY OF PALM DESERT,
a California municipal corporation
By:
Name: L. Todd Hileman
Title: City Manger
Dated: June 8, 2023
Attest
CITY CLERK
By: _____________________________
Anthony J. Mejia, MMC
DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 9/11/2023
340
Contract No. C39690
7 EXHIBIT A
ADDITIONAL DISTRICT IMPROVEMENTS
DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 341
Palm Desert Community Center Renovation Project – IFB# 23-05-001-PW List of Contracts to be Awarded based on lowest responsive and responsible bidders.
Continued on Page 2)
Bid Category #
BC” #) Bid Category Description Contract Being Awarded To Contract Value Agreement # 1 Selective Building Demo Demolition Specialist, Inc. $ 364, 000.00 23-08-014-PDCC 2 Earthwork & Asphaltic Paving Horizons Construction
Company International, Inc. $ 213,700.00 23-08-015-PDCC 3 Concrete: Structural & Site Bravo Concrete Construction Services, Inc. $ 379, 000.00 23-08-016-PDCC
4 Masonry NuWay, Inc. $ 134,800.00 23-08-017-PDCC
5 Steel: Structural & Miscellaneous White’s Steel, Inc. $ 191,500.00 23-08-018-PDCC 6 Rough Carpentry Core Contracting, Inc. $ 575,083.00 23-08-019-PDCC 7 Finish Carpentry & Casework Stolo Cabinets, Inc. $ 122,199.00 23-08-020-PDCC 8 Roofing Commercial Roofing Systems,
Inc. $ 634,264.00 23-08-021-PDCC
9 Aluminum & Glazing M-Tech Glass, Inc. $ 131, 093.00 23-08-022-PDCC 10 Metal Stud Framing, Insulation,
Drywall, & Plaster Sierra Lathing Co., Inc. $ 275,795.00 23-08-023-PDCC DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 342
Palm Desert Community Center Renovation Project – IFB# 23-05-001-PW List of Contracts to be Awarded based on lowest responsive and responsible bidders.
END)
Total Base Bids Received: $ 5,730,029.00
Alternate #1 – BC#14 – Added Cost: $ 97,300.00_______
Total Bids + Alternate #1: $ 5,828,229.00
Bid Category #
BC” #) Bid Category Description Contract Being Awarded To Contract Value Agreement # 11 Finish Flooring Del’ s Flooring $ 114, 427.00 23-08-024- PDCC 12 Ceramic Tile Continental Marble & Tile Co. $ 103, 621.00 23-08-025- PDCC 13 Acoustical Ceiling & Treatment Southcoast Acoustical Interiors, Inc. $ 139, 447.00 23-08-026- PDCC
14 Painting & Wall Covering Painting & Décor, Inc. $ 157, 900.00 Alt. 1 + $97,300.00 23-08-027- PDCC
15 Fire Sprinkler JPI Development Group, Inc. $ 139,000.00 23-08-028-PDCC 16 Plumbing: Site & Building Continental Plumbing, Inc. $ 293,000.00 23-08-029-PDCC 17 HVAC Franklin Mechanical Systems,
Inc. $ 502,500.00 23-08-030-PDCC
18 Electrical & Low Voltage RDM Electric Co., Inc. $ 633,000.00 23-08-031-PDCC 19 General Package Bogh Engineering, Inc. $ 625, 700.00 23-08-032- PDCC DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 343
Contract No. C39690
8 EXHIBIT B
ESTIMATED ADDITIONAL RENT PAYMENT SCHEDULE
DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 344
Loan amount $ 12,000,000.00
Annual interest rate 3.00%
Loan period in years 30
Start date of loan 1/ 1/ 2025
Payment Term Bi-Annually
Number of payments 60
Total interest $ 5,624,743.67
Total cost of loan $ 17,624,743.67
Pmt
No.
Payment Date
Beginning
Balance
Payment Principal Interest
Ending
Balance
1 1/ 1/ 2025 $ 12,000, 000. 00 $ 380, 000. 00 $ 200, 000. 00 $ 180, 000. 00 $ 11,814, 375. 71 2 7/ 1/ 2025 $ 11,814,375.71 $ 377,215.64 $ 200,000.00 $ 177,215.64 $ 11,628,287.36 3 1/ 1/ 2026 $ 11,628,287.36 $ 374,424.31 $ 200,000.00 $ 174,424.31 $ 11,441,733.79 4 7/ 1/ 2026 $ 11,441,733.79 $ 371,626.01 $ 200,000.00 $ 171,626.01 $ 11,254,713.84 5 1/ 1/ 2027 $ 11,254,713.84 $ 368,820.71 $ 200,000.00 $ 168,820.71 $ 11,067,226.34 6 7/ 1/ 2027 $ 11,067,226.34 $ 366,008.40 $ 200,000.00 $ 166,008.40 $ 10,879,270.11 7 1/ 1/ 2028 $ 10,879,270.11 $ 363,189.05 $ 200,000.00 $ 163,189.05 $ 10,690,844.00 8 7/ 1/ 2028 $ 10,690,844.00 $ 360,362.66 $ 200,000.00 $ 160,362.66 $ 10,501,946.82 9 1/ 1/ 2029 $ 10,501, 946. 82 $ 357, 529. 20 $ 200, 000. 00 $ 157, 529. 20 $ 10,312, 577. 40 10 7/ 1/ 2029 $ 10,312, 577. 40 $ 354, 688. 66 $ 200, 000. 00 $ 154, 688. 66 $ 10,122, 734. 56 11 1/ 1/ 2030 $ 10,122, 734. 56 $ 351, 841. 02 $ 200, 000. 00 $ 151, 841. 02 $ 9,932, 417. 11 12 7/ 1/ 2030 $ 9,932, 417. 11 $ 348, 986. 26 $ 200, 000. 00 $ 148, 986. 26 $ 9,741, 623. 86 13 1/ 1/ 2031 $ 9,741, 623. 86 $ 346, 124. 36 $ 200, 000. 00 $ 146, 124. 36 $ 9,550, 353. 63 14 7/ 1/ 2031 $ 9,550, 353. 63 $ 343, 255. 30 $ 200, 000. 00 $ 143, 255. 30 $ 9,358, 605. 23 15 1/ 1/ 2032 $ 9,358, 605. 23 $ 340, 379. 08 $ 200, 000. 00 $ 140, 379. 08 $ 9,166, 377. 45 16 7/ 1/ 2032 $ 9,166, 377. 45 $ 337, 495. 66 $ 200, 000. 00 $ 137, 495. 66 $ 8,973, 669. 11 17 1/ 1/ 2033 $ 8,973,669.11 $ 334,605.04 $ 200,000.00 $ 134,605.04 $ 8,780,479.00 18 7/ 1/ 2033 $ 8,780,479.00 $ 331,707.18 $ 200,000.00 $ 131,707.18 $ 8,586,805.90 19 1/ 1/ 2034 $ 8,586,805.90 $ 328,802.09 $ 200,000.00 $ 128,802.09 $ 8,392,648.63 20 7/ 1/ 2034 $ 8,392,648.63 $ 325,889.73 $ 200,000.00 $ 125,889.73 $ 8,198,005.97 21 1/ 1/ 2035 $ 8,198,005.97 $ 322,970.09 $ 200,000.00 $ 122,970.09 $ 8,002,876.69 22 7/ 1/ 20335 $ 8,002,876.69 $ 320,043.15 $ 200,000.00 $ 120,043.15 $ 7,807,259.60 23 1/ 1/ 2036 $ 7,807,259.60 $ 317,108.89 $ 200,000.00 $ 117,108.89 $ 7,611,153.46 24 7/ 1/ 206 $ 7,611, 153. 46 $ 314, 167. 30 $ 200, 000. 00 $ 114, 167. 30 $ 7,414, 557. 05 25 1/ 1/ 2037 $ 7,414, 557. 05 $ 311, 218. 36 $ 200, 000. 00 $ 111, 218. 36 $ 7,217, 469. 16 26 7/ 1/ 2037 $ 7,217, 469. 16 $ 308, 262. 04 $ 200, 000. 00 $ 108, 262. 04 $ 7,019, 888. 54 27 1/ 1/ 2038 $ 7,019, 888. 54 $ 305, 298. 33 $ 200, 000. 00 $ 105, 298. 33 $ 6,821, 813. 98 28 7/ 1/ 2038 $ 6,821, 813. 98 $ 302, 327. 21 $ 200, 000. 00 $ 102, 327. 21 $ 6,623, 244. 22 29 1/ 1/ 2039 $ 6,623, 244. 22 $ 299, 348. 66 $ 200, 000. 00 $ 99,348. 66 $ 6,424, 178. 05 Loan Details
Loan Summary
Desert Recreation District - TI Loan Calculator
Payments Based on 1/23/23 Construction Estimate - Less City Portion of Estimate DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 345
Pmt
No.
Payment Date
Beginning
Balance
Payment Principal Interest
Ending
Balance
30 7/ 1/ 2039 $ 6,424, 178. 05 $ 296, 362. 67 $ 200, 000. 00 $ 96,362. 67 $ 6,224, 614. 20 31 1/ 1/ 2040 $ 6,224,614.20 $ 293,369.21 $ 200,000.00 $ 93,369.21 $ 6,024,551.45 32 7/ 1/ 2040 $ 6,024,551.45 $ 290,368.27 $ 200,000.00 $ 90,368.27 $ 5,823,988.54 33 1/ 1/ 2041 $ 5,823,988.54 $ 287,359.83 $ 200,000.00 $ 87,359.83 $ 5,622,924.22 34 7/ 1/ 2041 $ 5,622,924.22 $ 284,343.86 $ 200,000.00 $ 84,343.86 $ 5,421,357.25 35 1/ 1/ 2042 $ 5,421,357.25 $ 281,320.36 $ 200,000.00 $ 81,320.36 $ 5,219,286.35 36 7/ 1/ 2042 $ 5,219,286.35 $ 278,289.30 $ 200,000.00 $ 78,289.30 $ 5,016,710.28 37 1/ 1/ 2043 $ 5,016,710.28 $ 275,250.65 $ 200,000.00 $ 75,250.65 $ 4,813,627.77 38 7/ 1/ 2043 $ 4,813, 627. 77 $ 272, 204. 42 $ 200, 000. 00 $ 72,204. 42 $ 4,610, 037. 55 39 1/ 1/ 2044 $ 4,610, 037. 55 $ 269, 150. 56 $ 200, 000. 00 $ 69,150. 56 $ 4,405, 938. 35 40 7/ 1/ 2044 $ 4,405, 938. 35 $ 266, 089. 08 $ 200, 000. 00 $ 66,089. 08 $ 4,201, 328. 91 41 1/ 1/ 2045 $ 4,201, 328. 91 $ 263, 019. 93 $ 200, 000. 00 $ 63,019. 93 $ 3,996, 207. 95 42 7/ 1/ 2045 $ 3,996, 207. 95 $ 259, 943. 12 $ 200, 000. 00 $ 59,943. 12 $ 3,790, 574. 18 43 1/ 1/ 2046 $ 3,790, 574. 18 $ 256, 858. 61 $ 200, 000. 00 $ 56,858. 61 $ 3,584, 426. 33 44 7/ 1/ 2046 $ 3,584, 426. 33 $ 253, 766. 39 $ 200, 000. 00 $ 53,766. 39 $ 3,377, 763. 10 45 1/ 1/ 2047 $ 3,377, 763. 10 $ 250, 666. 45 $ 200, 000. 00 $ 50,666. 45 $ 3,170, 583. 22 46 7/ 1/ 2047 $ 3,170, 583. 22 $ 247, 558. 75 $ 200, 000. 00 $ 47,558. 75 $ 2,962, 885. 39 47 1/ 1/ 2048 $ 2,962, 885. 39 $ 244, 443. 28 $ 200, 000. 00 $ 44,443. 28 $ 2,754, 668. 32 48 7/ 1/ 2048 $ 2,754, 668. 32 $ 241, 320. 02 $ 200, 000. 00 $ 41,320. 02 $ 2,545, 930. 70 49 1/ 1/ 2049 $ 2,545, 930. 70 $ 238, 188. 96 $ 200, 000. 00 $ 38,188. 96 $ 2,336, 671. 24 50 7/ 1/ 2049 $ 2,336,671.24 $ 235,050.07 $ 200,000.00 $ 35,050.07 $ 2,126,888.63 51 1/ 1/ 2050 $ 2,126,888.63 $ 231,903.33 $ 200,000.00 $ 31,903.33 $ 1,916,581.56 52 7/ 1/ 2050 $ 1,916,581.56 $ 228,748.72 $ 200,000.00 $ 28,748.72 $ 1,705,748.73 53 1/ 1/ 2051 $ 1,705,748.73 $ 225,586.23 $ 200,000.00 $ 25,586.23 $ 1,494,388.81 54 7/ 1/ 2051 $ 1,494,388.81 $ 222,415.83 $ 200,000.00 $ 22,415.83 $ 1,282,500.50 55 1/ 1/ 2052 $ 1,282,500.50 $ 219,237.51 $ 200,000.00 $ 19,237.51 $ 1,070,082.46 56 7/ 1/ 2052 $ 1,070,082.46 $ 216,051.24 $ 200,000.00 $ 16,051.24 $ 857,133.38 57 1/ 1/ 2053 $ 857, 133. 38 $ 212, 857. 00 $ 200, 000. 00 $ 12,857. 00 $ 643, 651. 93 58 7/ 1/ 2053 $ 643, 651. 93 $ 209, 654. 78 $ 200, 000. 00 $ 9,654. 78 $ 429, 636. 77 59 1/ 1/ 2054 $ 429, 636. 77 $ 206, 444. 55 $ 200, 000. 00 $ 6,444. 55 $ 215, 086. 57 60 7/ 1/ 2054 $ 215, 086. 57 $ 203, 226. 30 $ 200, 000. 00 $ 3,226. 30 $ 0.00
DocuSign Envelope ID: E56CACDF- 713E-4FFE-BB3E-F2A6C2C30339 346
AMENDMENT NO. 2 TO LEASE AGREEMENT
THIS AMENDMENT NO. 2 TO LEASE AGREEMENT (“Second Amendment”) is entered as of February 27, 2025, by and between CITY OF PALM DESERT, a California municipal corporation (“Lessor”), and the DESERT RECREATION DISTRICT, a California special district (“Lessee”). Lessor and Lessee are sometimes referred to herein individually as a “Party” or collectively as the “Parties.”
RECITALS
WHEREAS, Lessor and Lessee previously entered into that certain Lease Agreement dated January 1, 2020 (the “Lease”), for the lease of the premises more particularly described therein located at 43900 San Pablo Avenue, Palm Desert, California 92260 (the “Premises”);
WHEREAS, Lessor will agree to provide a tenant improvement allowance to provide reimbursement to Lessee for the cost of such Additional District Improvements, subject to the limitations set forth herein;
WHEREAS, Lessor finds and determines that providing the tenant improvement allowance to facilitate the construction of the Additional District Improvements will enhance recreational opportunities available to the residents and taxpayers, and the Additional District Improvements will benefit the areas within the City of Palm Desert commonly known as Project Areas Nos. 2 and 3;
NOW THEREFORE, Lessor and Lessee desire to amend the Lease on the terms and conditions as provided in this Second Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby mutually agree as follows:
1. Amendments to Lease. The Lease is hereby amended as follows:
a. Additional Rent. A new Section 2.2 is hereby added to the Lease to read as follows:
“2.2 Additional Rent. In addition to the Base Rent, Lessor shall pay to Lessor on each January 1 and July 1, commencing on July 1, 2025, additional rent in the amount necessary to fully amortize the aggregate amount of the Tenant Improvement Allowance which was disbursed by Lessor in semi-annual payments with an interest rate of 3% per annum over the remaining portion of the initial Term (the “Additional Rent”). An estimated Additional Rent payment schedule is attached hereto as Exhibit B. The interest component shall begin to accrue on the outstanding unamortized portion of the Tenant Improvement Allowance on the date Docusign Envelope ID: 0C228037-AE46-4ADD-9DE1-79AC7BCD052D 347
Contract No. C39690
2 that Lessor first disburses such Tenant Improvement Allowance or any portion(s) thereof. On or about June 1, 2025, Lessor shall provide to Lessee in writing the final amortization schedule for the payment of the Additional Rent based on the aggregate amount of the Tenant Improvement Allowance actually disbursed pursuant to this Second Amendment and taking into account the date of each disbursement with respect to calculating the interest component.” b. Tenant Improvement Allowance. A new Section 5.6 is hereby added to the Lease to read as follows:
“5.6 Tenant Improvement Allowance.
5.6.2 Disbursement of Tenant Improvement Allowance. Provided the Lessee is not then in default under the terms of this Lease, the Lessor will disburse amounts from the Tenant Improvement Allowance from time to time (but not more than once per month) following Lessor’s receipt of (i) a written request by Lessee requesting a disbursement from the Tenant Improvement Allowance and specifying the amount requested, (ii) copies of invoices, including all reasonable detail relating thereto as may be requested by Lessor, for all work performed for which payment is being requested by Lessee, and (iii) evidence satisfactory to Lessor that Lessee has paid all invoices for which disbursement is being requested from Lessor. All requests for disbursement from the Tenant Improvement Allowance shall be made on or before May 1, 2025.
3. Effectiveness of Agreement. Except as explicitly modified by this Second Amendment, all of the terms and provisions of the Agreement are and remain in full force and effect.
4. Entire Agreement. This Second Amendment and the Agreement represent the final and entire agreement between Lessor and Lessee regarding the subject matter hereof and thereof, and may not be contradicted by evidence of prior, subsequent, or contemporaneous oral agreements of the Parties.
5. Modification. No amendment or modification hereto shall be valid and binding unless expressed in writing and executed by both Parties hereto.
6. Authority. Each individual executing this Second Amendment on behalf of an entity represents and warrants that he or she is duly authorized to execute and deliver this Second Amendment on its behalf.
7. Counterparts. This Second Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Second Amendment delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
Docusign Envelope ID: 0C228037-AE46-4ADD-9DE1-79AC7BCD052D 348
Contract No. C39690
3 IN WITNESS WHEREOF, the Parties have caused this Second Amendment to be executed by and through their respective authorized representatives, as of the date first above written.
LESSOR:
CITY OF PALM DESERT,
a California municipal corporation
By: __________________________
Chris Escobedo
Interim City Manager
ATTEST
By: __________________________
Anthony J. Mejia
City Clerk
LESSEE:
DESERT RECREATION DISTRICT,
A California special district
By:_____________________________
Kevin Kalman
General Manager
Approved as to Form:
By:_________________________________
Isra Shah
Best Best & Krieger, LLP
City Attorney
Clerk QC: MN
Contracts QC: ______
Insurance:
_________
Initial review
_________
Final approval
Docusign Envelope ID: 0C228037-AE46-4ADD-9DE1-79AC7BCD052D 349
350
351
• Additional Foundation Repairs: During the course of construction, we encountered some additional needs related to the foundation. Specifically, additional concrete work was required to ensure the structural integrity of the restrooms and to address latent deficiencies in the foundation resulting from demolition adjacent to the lobby. This work, totaling $49,874, was negotiated with the contractor and authorized jointly through a series of change orders.
While our early correspondence indicated that the City's responsibility for foundation moisture mitigation and repairs would be $35,000, our current calculations, which include the items detailed above, show the actual total cost of the City's responsibility for the foundation and civil work associated with the project to be $373,659.
Since the City has already kindly repaid the District from its own funds for a $35,000 portion of that obligation, we are now respectfully requesting an additional reimbursement of $338,659, either to be reduced from the amount of the District's loan obligation or repaid directly by the City. This amount represents the true expense for the foundation and civil improvements, and I sincerely apologize for neglecting to identify this as the City's responsibility during budget discussions. A chart representing the total cost of this project is included on Page 3.
Please do not hesitate to reach out if you need any additional information or have any questions regarding this request. I truly appreciate your continued partnership and consideration in closing out this important community project.
Warm regards,
Kevin Kalman
General Manager
Desert Recreation District
352
353
354
AMENDMENT NO. 3 TO LEASE AGREEMENT
THIS AMENDMENT NO. 3 TO LEASE AGREEMENT NO. C39690 (“Third Amendment”) is entered as of September 25, 2025, by and between CITY OF PALM DESERT, a California municipal corporation (“Lessor”), and the DESERT RECREATION DISTRICT, a California special district (“Lessee”). Lessor and Lessee are sometimes referred to herein individually as a “Party” or collectively as the “Parties.”
RECITALS
WHEREAS, Lessor and Lessee previously entered into that certain Lease Agreement dated January 1, 2020 (the “Lease”), for the lease of the premises more particularly described therein located at 43900 San Pablo Avenue, Palm Desert, California 92260 (the “Premises”);
WHEREAS, Lessor will agree to provide a tenant improvement allowance to provide reimbursement to Lessee for the cost of such Additional District Improvements, subject to the limitations set forth herein;
WHEREAS, Lessor finds and determines that providing the tenant improvement allowance to facilitate the construction of the Additional District Improvements will enhance recreational opportunities available to the residents and taxpayers, and the Additional District Improvements will benefit the areas within the City of Palm Desert commonly known as Project Areas Nos. 2 and 3;
NOW THEREFORE, Lessor and Lessee desire to amend the Lease on the terms and conditions as provided in this Third Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby mutually agree as follows:
1. Amendments to Lease. The Lease is hereby amended as follows:
EXHIBIT “B” -
Estimated Additional Rent
Payment Schedule
Exhibit “B” is hereby removed in its entirety
and replaced with the attached Exhibit “B”.
3. Effectiveness of Agreement. Except as explicitly modified by this Third Amendment, all of the terms and provisions of the Agreement are and remain in full force and effect.
4. Entire Agreement. This Third Amendment and the Agreement represent the final and entire agreement between Lessor and Lessee regarding the subject matter hereof 355
Contract No. C39690
2 and thereof, and may not be contradicted by evidence of prior, subsequent, or contemporaneous oral agreements of the Parties.
5. Modification. No amendment or modification hereto shall be valid and binding unless expressed in writing and executed by both Parties hereto.
6. Authority. Each individual executing this Third Amendment on behalf of an entity represents and warrants that he or she is duly authorized to execute and deliver this Third Amendment on its behalf.
7. Counterparts. This Third Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Third Amendment delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. [Signatures on following page]
356
Contract No. C39690
3 IN WITNESS WHEREOF, the Parties have caused this Third Amendment to be executed by and through their respective authorized representatives, as of the date first above written.
LESSOR: LESSEE:
CITY OF PALM DESERT, DESERT RECREATION DISTRICT,
a California municipal corporation a California special district By: ____________________________ By:_____________________________ Chris Escobedo Gabriel Martin
City Manager General Manager
ATTEST:
By: ____________________________
Anthony J. Mejia
City Clerk
Approved as to Form:
By: ____________________________
Isra Shah
Best Best & Krieger, LLP
City Attorney Clerk QC:_______
Contracts QC:_______
Insurance:
__________
Initial Review
__________
Final Approval
357
EXHIBIT B-4
EXHIBIT B
Final Project Close-Out Acknowledgement
358
EXHIBIT B
-5
359
EXHIBIT B
-6
360
EXHIBIT B
-7
361
362
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: September 25, 2025
PREPARED BY: Shawn Muir, Community Services Manager
Veronica Chavez, Director of Finance
REQUEST: AUTHORIZATION FOR THE CITY MANAGER TO APPROVE NOTICES
TO PROCEED (NTPS) AND NOTICES OF COMPLETION (NOCS) FOR
CONTRACTS UNDER $250,000 IN ALIGNMENT WITH THE CITY’S
PURCHASING ORDINANCE
RECOMMENDATION:
Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT AUTHORIZING THE CITY MANAGER TO APPROVE NOTICES TO PROCEED (NTPs) AND NOTICES OF COMPLETION (NOCs) FOR CONTRACTS UNDER $250,000 IN ACCORDANCE WITH THE CITY’S PURCHASING ORDINANCE.” BACKGROUND/ANALYSIS:
The City of Palm Desert’s Purchasing Ordinance establishes contracting authority and procedures to ensure transparency, fiscal responsibility, and efficient operations. Under the ordinance, the City Manager is authorized to award contracts and make purchases up to $250,000 for those vendors who are vetted and listed on the approved vendor list.
Currently, staff prepares separate agenda items for City Council consideration of administrative documents related to such contracts, including Notices to Proceed (NTPs) and Notices of Completion (NOCs). These items are largely procedural once the contract has been awarded within the City Manager’s authority.
To streamline administrative processes and reduce agenda volume, staff recommends that the City Council delegate authority to the City Manager to approve NTPs and NOCs for administrative contracts up to $250,000. This will align with the City Manager’s existing contract authority and maintain consistency with the City’s Purchasing Ordinance.
Delegating approval of NTPs and NOCs to the City Manager for contracts within their existing authority will:
Improve efficiency and reduce administrative burden on City Council agendas. Ensure timely initiation and closeout of projects.
Maintain fiscal accountability under the Purchasing Ordinance, as contracts above $250,000 will continue to require Council approval.
The City Council will continue to receive report on contracts and projects for transparency and oversight in the monthly Procurement Report provided by the Finance Department. 363
City of Palm Desert
Adopt Resolution for City Manager Approval of NTPs and NOCs
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
There is no fiscal impact associated with this action. Contract expenditures remain subject to adopted budget appropriations and the City’s Purchasing Ordinance.
ATTACHMENTS:
1. Resolution No. 2025-___
364
RESOLUTION NO. 2025-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT AUTHORIZING THE CITY MANAGER TO APPROVE NOTICES
TO PROCEED (NTPs) AND NOTICES OF COMPLETION (NOCs) FOR
CONTRACTS UNDER $250,000 IN ACCORDANCE WITH THE CITY’S
PURCHASING ORDINANCE
WHEREAS, the City of Palm Desert Purchasing Ordinance establishes the City Manager’s authority to award and execute contracts up to $250,000; and WHEREAS, administrative documents such as Notices to Proceed (NTPs) and Notices of Completion (NOCs) are required to initiate and close out contracts; and WHEREAS, approval of such documents for contracts within the City Manager’s existing contract authority is procedural in nature and does not alter the fiscal or policy considerations of the contracts themselves; and
WHEREAS, delegating this approval authority to the City Manager will promote administrative efficiency, reduce unnecessary items on Council agendas, and allow for timely project initiation and completion;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:
SECTION 1. The City Manager is hereby authorized to approve Notices to Proceed (NTPs) and notices of completion (NOCs) for contracts up to $250,000, consistent with the authority provided in the City’s Purchasing Ordinance.
SECTION 2. This resolution shall take effect immediately upon adoption.
ADOPTED ON ________________, 2025.
JAN C. HARNIK
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
365
Resolution No. 2025-____ Page 2
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2025-__ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on _______________________, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________.
ANTHONY J. MEJIA
CITY CLERK
366
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: September 25, 2025
PREPARED BY: Brad Chuck, Public Works Superintendent
Shawn Muir, Community Services Manager
SUBJECT: APPROVE AMENDMENTS FOR LANDSCAPE MAINTENANCE
SERVICES AGREEMENTS ON LMA 6, 9, AND 17 (PROJECTS NO.
MLS00012, MLS00015, AND MLS00017)
RECOMMENDATION:
1. Approve Amendment No. 1 to Contract No. C45050 with Horizon Professional Landscape, Inc., of Coachella, CA, in the amount of $4,704, increasing the annual contract amount to $168,000.
2. Approve Amendment No. 1 to Contract No. C45060 with Mariposa Landscapes, Inc., of Irwindale, CA, in the amount of $8,935.92, increasing the annual contract amount to $366,370.32.
3. Approve Amendment No. 1 to Contract No. C43140 with Vintage Associates, Inc., of Bermuda Dunes, CA, in the amount of $10,200, increasing the annual contract amount to $351,000.
4. Authorize the City Attorney to make necessary non-monetary changes to the amendments.
5. Authorize the City Manager to execute amendments, change orders, and execute any other documents necessary to effectuate the actions taken herewith.
BACKGROUND/ANALYSIS:
The City of Palm Desert (City) contracts with contractors to provide landscape maintenance services for its Landscape Maintenance Areas (LMA’s). LMA’s are designated landscape zones requiring regular maintenance throughout the community. Each year, staff receives requests for Consumer Price Index (CPI) adjustments. The three agreements being presented for amendments were approved by Council at varying times. While some agreements delegate authority to the City Manager to administratively approve CPI adjustments, the original staff reports for these three agreements did not include that provision; therefore, City Council approval is required for the current request for cost “CPI” adjustment.
This year, vendors submitted cost “CPI” adjustment requests at varying times, each based on the data available at the time. The agreements do not all designate a deadline for cost adjustment requests. This is why the percentages requested differ by contractors. Staff recommend approving the requested adjustments, with an effective date of September 1, 2025.
Future requests will need to be submitted in April, using the March CPI published by the Bureau of Labor Statistics for Riverside County All-Items.
Contract No. C45050 – Horizon Professional Landscape (LMA 6):
367
City of Palm Desert
Approve Amendments for LMA 6, 9, and 17
On April 13, 2023, the City Council approved a three-year Maintenance Services Agreement with Horizon Professional Landscape, Inc., (Horizon) for Landscape Maintenance Area 6 (LMA 6). The contract was approved for $127,776. annually, and an option for two additional one-year extensions.
LMA 6 encompasses several landscaped areas throughout and surrounding the Desert Willow Golf Resort. This includes the roundabout planters and medians located along Desert Willow Golf Resort, as well as the landscaped overflow parking lot near the intersection of Country Club Drive and Desert Willow Drive. It also includes native plantings along internal parkways and roadways, as well as landscaped perimeter areas.
In Fiscal Year (FY) 2024-25, a new landscaped parking lot was added to the service area via change order to increase the contract by $31,680. annually. A 3% cost adjustment was also included in the Change Order for an additional $320 per month ($3,840 annually). These changes brought the total annual contract amount to $163,296.
Horizon has submitted a request for a 2.9% contract adjustment, citing increased operating costs related to fuel and labor. While historically such increases have used “CPI adjustments,” this request is based on actual cost impacts rather than a specific Bureau of Labor Statistics index.
The proposed adjustment would add $4,704 annually, bringing the new annual amount to $168,000. The CPI for All Items in Riverside County in March 2025 was 3.1%, therefore making this request within the normal adjustment rate. A summary of these adjustments is provided in the table below:
Item Monthly Cost Annual Cost
Yr 1 - Original Contract $10,648 $127,776
Change Order No. 1 (New Area) $2,640 $31,680
Change Order No. 1 (CPI Adjustment) $320 $3,840
Yr 2 - Revised Contract $13,608 $163,296
Proposed Amendment No. 1 (CPI 2.9%) $392 $4,704
Proposed Yr 3 Revised Contract Amount $14,000 $168,000
Contract No. C45060 – Mariposa Landscapes, Inc. (LMA 9):
A three-year Maintenance Services Agreement with Mariposa Landscapes, Inc., (Mariposa) was approved on April 13, 2023, for Landscape Maintenance Area 9 (LMA 9). The contract was approved for $357,434.40 annually, and an option for two additional one-year extensions.
LMA 9 includes several landscaped areas: the medians along El Paseo, Baja Park and Entrada del Paseo, the streetscape improvements along San Pablo Avenue (Phases 1 and 2), Alessandro Alley, and the grounds of the Portola Community Center and the Palm Desert Historical Society.
Mariposa has submitted a request for a 2.5% contract adjustment, citing increased operating costs related to fuel, materials, and labor. While historically these requests have used “CPI adjustments,” this request is based on actual cost impacts rather than a specific Bureau of Labor Statistics index. The proposed adjustment totals $8,935.92 annually, bringing the new annual 368
City of Palm Desert
Approve Amendments for LMA 6, 9, and 17
contract amount to $366,370.32. The CPI for All Items in Riverside County in March 2025 was
3.1%, therefore making this request within the normal adjustment rate. A breakdown of the adjustment is provided in the table below:
Item Monthly Cost Annual Cost
Yr 1 & 2 - Original Contract $29,786.20 $357,434.40
Proposed Amendment No. 1 – CPI (2.5%) $744.66 $8,935.92 Proposed Yr 3 Revised Contract Amount $30,530.86 $366,370.32 Contract No. C43140 – Vintage Associates, Inc. (LMA 17):
On May 26, 2022, the City Council approved a five-year Maintenance Services Agreement with Vintage Associates, Inc. (Vintage) for Landscape Maintenance Area 17 (LMA 17), with an annual contract amount of $340,800., including an option for three additional one-year extensions with an annual CPI adjustment upon request. However, City Manager authorization to approve future CPI adjustments was not included in the original staff report. For this reason, staff is bringing the item back to City Council to request authorization to streamline extension approvals.
LMA 17 includes a variety of public facilities and landscaped areas, such as Civic Center Park, the Tri-Cities Sports Fields, Magnesia Falls City and Shared Park, the perimeter landscaping around City Hall, the Park View Office Complex, as well as the state building grounds and the San Pascual Channel.
Vintage has submitted a request for a 3% contract adjustment to reflect increased operating costs. While historically these requests have used “CPI adjustments,” this request is based on actual cost impacts rather than a specific Bureau of Labor Statistics index. The proposed adjustment would add $10,200 annually, bringing the new annual contract amount to $351,000.
The CPI for All Items in Riverside County in March 2025 was 3.1%, therefore making this request within the normal adjustment rate. The breakdown is shown in the table below:
Item Monthly Cost Annual Cost
Yr 1-3 - Original Contract $28,400 $340,800
Proposed Amendment No. 1 – CPI (3%) $850 $10,200
Proposed Yr 4 Revised Contract Amount $29,250 $351,000
The cost adjustment requests included in this report are being presented later than anticipated requests were submitted at varying times for the FY 2025-26 service period. To improve consistency and transparency, staff recommends amending each agreement to include and standardize an April 1 deadline to submit requests, using the March CPI posted by BLS for Riverside County All-Items, to ensure all CPI adjustments can be reviewed and considered prior to the start of the new fiscal year.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
369
City of Palm Desert
Approve Amendments for LMA 6, 9, and 17
Sufficient budget has been included in the approved FY 2025-26 Financial Plan in the various Public Works Department operations budgets to cover these requests; therefore, there is no additional financial impact to the General Fund with this action.
The table below outlines the budgets and adjusted contract amount for each area:
Accounts /
Description
FY 2025/26
Budget
Adjusted Contract
Amount
Balance
Available
1104610-4332001 $285,000
1104610-4337100 $100,000
1104614-4337001 $320,000
1104614-4392101 $90,000
4414195-4332000 $150,000
C45050 LMA 6 – Horizon $168,000.00
C45060 LMA 9 – Mariposa $366,370.32
C43140 LMA 17 - Vintage $351,000.00
Total $945,000 $885,370.32 $59,629.68
Future year extensions and CPI requests will be contingent upon approval of the associated Annual Budget.
ATTACHMENTS:
1. LMA 6 Horizon Professional Landscape Request
2. LMA 9 Mariposa Landscapes, Inc. Request
3. LMA 17 Vintage Associates, Inc. Request
4. Amendment No. 1 Horizon Professional Landscape, Inc.
5. Amendment No. 1 Mariposa Landscapes, Inc.
6. Amendment No. 1 Vintage Associates, Inc.
370
HORIZON
PROFESSIONAL LANDSCAPE INC
48727 Charlton Peak
Coachella, CA 92236 CA LIC # 799029
Ph (760) 333-9371 Fax (760) 398-2250
Hello Brad.
We are requesting a price increase for Landscape Maintenance of LMA 6 for the year 2025-2026
CONTRACT No. C45050 (LMA 6)
We would like to apply for a 2.9% Consumer Price Index increase.
Labor and fuel cost have gone up.
Current contract price: $13,608.00 per month $163,296.00 for the year
2.9% increase: $ 392.00 per month $4,704.00 for the year $14,000.00 per month $168,000.00 for the year
Respectfully
__Rafael Mendoza L___
Rafael Mendoza June 17,2025
President
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Contract No. ________
AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND HORIZON PROFESSIONAL LANDSCAPE
1. Parties and Date.
This Amendment No. 1 (“Amendment”) to the MAINTENANCE SERVICES AGREEMENT is made and entered into as of September 25, 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 Horizon Professional Landscape, Inc., A CORPORATION with its principal place of business at 48727 Charlton Peak, Coachella, CA 92236, (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”
1.1 City Council Approval.
On September 25, 2025, City Council approved the award of this Amendment to the Contractor above.
2. Recitals.
The Parties entered into an agreement titled MAINTENANCE SERVICES AGREEMENT , dated April 13, 2023 (“Agreement”) for the purpose of retaining the services of Landscape Maintenance in Area No.6.
Amendment Authority. This Amendment is authorized pursuant to Section 3.5.9 of the Agreement.
On July 1, 2024, Change Order No. 1 was executed to include landscape maintenance of a new parking lot and to provide a 3% Consumer Price Index increase totaling an increase of $35,520.00, which increased total compensation in Section 3.3.1 to $163,296.00.
3. Terms.
Amendment. The Agreement is hereby amended as follows:
Section 3.3.1
Compensation.
Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed One Hundred Sixty-Eight Thousand and 00/100
Dollars ($168,000.00) annually without written approval of the City Council or City Manager, as applicable.
Exhibit “C”
Compensation.
The total annual compensation shall not exceed One Hundred Sixty-Eight Thousand and 00/100 Dollars ($168,000.00) per fiscal year and may only be adjusted for Consumer Price Index for all Urban Consumers (CPI-U) for the Riverside-San BernardinoOntario, CA Region (All Items) rate for the 12-month period ending 377
Contract No. ________
2 March, upon request, with written approval from the City Council or City Manager following FY 2025-26, 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.
[Signatures on Following Page]
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Contract No. ________
3 379
Contract No. ________
4 Clerk QC: ________
Contracts QC: ________
Insurance:
__________
Initial Review
___________
Final Approval
SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM DESERT
AND HORIZON PROFESSIONAL LANDSCAPE, INC.
IN WITNESS WHEREOF, each of the Parties has caused this Amendment 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 and Krieger, LLC
City Attorney
HORIZON PROFESSIONAL LANDSCAPE, INC.,
A CORPORATION
By:
Rafael Mendoza
President
By:
Eric Mendoza Lee
Vice President
380
Contract No. ________
AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND MARIPOSA LANDSCAPES, INC.
1. Parties and Date.
This Amendment No. 1 (“Amendment”) to the MAINTENANCE SERVICES AGREEMENT is made and entered into as of September 25, 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 Mariposa Landscapes, Inc., A CORPORATION with its principal place of business at 6232 Santos Diaz Street, Irwindale, CA 91702, (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”
1.1 City Council Approval.
On September 25, 2025, City Council approved the award of this Amendment to the Contractor above.
2. Recitals.
The Parties entered into an agreement titled MAINTENANCE SERVICES AGREEMENT , dated April 13, 2023 (“Agreement”) for the purpose of retaining the services of Landscape Maintenance in Area No. 9.
Amendment Authority. This Amendment is authorized pursuant to Section 3.5.9 of the Agreement.
3. Terms.
Amendment. The Agreement is hereby amended as follows:
Section 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-Six Thousand, Three Hundred Seventy and 32/100 Dollars ($366,370.32) annually without written approval of the City Council or City Manager, as applicable.
Exhibit “C”
Compensation.
The total annual compensation shall not exceed Three Hundred Sixty-Six Thousand, Three Hundred Seventy and 32/100
Dollars ($366,370.32) per fiscal year and may only be adjusted for Consumer Price Index for all Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario, CA Region rate (All Items) for the 12-month period ending March upon request, with written approval from the City Council or City Manager following FY 2025- 26, 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 381
Contract No. ________
2 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.
[Signatures on Following Page]
382
Contract No. ________
3 383
Contract No. ________
4 Clerk QC: ________
Contracts QC: ________
Insurance:
__________
Initial Review
___________
Final Approval
SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM DESERT
AND MARIPOSA LANDSCAPES, INC.
IN WITNESS WHEREOF, each of the Parties has caused this Amendment 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 and Krieger, LLC
City Attorney
MARIPOSA LANDSCAPES, INC., A
CORPORATION
By:
Terry Noriega
President
By:
Antonio Valenzuela
Secretary
384
Contract No. ________
AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND MARIPOSA LANDSCAPES, INC.
1. Parties and Date.
This Amendment No. 1 (“Amendment”) to the MAINTENANCE SERVICES AGREEMENT is made and entered into as of September 25, 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 Vintage Associates, Inc., A CORPORATION with its principal place of business at 78-755 Darby Road, Bermuda Dunes, CA 92203, (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”
1.1 City Council Approval.
On September 25, 2025, City Council approved the award of this Amendment to the Contractor above.
2. Recitals.
The Parties entered into an agreement titled MAINTENANCE SERVICES AGREEMENT , dated May 26, 2022 (“Agreement”) for the purpose of retaining the services of Landscape Maintenance in Area No. 17.
Amendment Authority. This Amendment is authorized pursuant to Section 3.5.9 of the Agreement.
3. Terms.
Amendment. The Agreement is hereby amended as follows:
Section 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 Fifty-One Thousand and 00/100
Dollars ($351,000.00) annually without written approval of the City Council or City Manager, as applicable.
Exhibit “C”
Compensation.
The total annual compensation shall not exceed Three Hundred Fifty-One Thousand and 00/100 Dollars ($351,000.00) per fiscal year and may only be adjusted for Consumer Price Index for all Urban Consumers (CPI-U) for the Riverside-San BernardinoOntario, CA Region rate (All Items) for the 12-month period ending March upon request, with written approval from the City Council or City Manager following FY 2025-26, 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 385
Contract No. ________
2 “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.
[Signatures on Following Page]
386
Contract No. ________
3 387
Contract No. ________
4 Clerk QC: ________
Contracts QC: ________
Insurance:
__________
Initial Review
___________
Final Approval
SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM DESERT
AND VINTAGE ASSOCIATES, INC.
IN WITNESS WHEREOF, each of the Parties has caused this Amendment 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 and Krieger, LLC
City Attorney
VINTAGE ASSOCIATES, INC., A
CORPORATION
By:
Kyle Gritters
President
By:
David Smith
Secretary
388