Palm Desert City Council
June 25, 2026

C.“ Community Sponsorship Subcommittee” is comprised of the Mayor and Mayor Pro Tem, City Manager, Director of Finance, and the City Manager’ s designee( s) overseeing community event sponsorships.

D.“ Outside Agency” means a nonprofit organization that may be eligible to receive City funding and support to offer programs and services benefiting the City’s residents and visitors under guidelines and accountability measures implemented by the City’s Outside Agency/ Charitable Contributions Committee.

E.“ Recipient” means an organization or individual that is awarded a community event sponsorship under this Policy.

F.“ Sponsorship” means any financial or in-kind support from the City ( i.e., City staff time, public safety services, use of City facilities or property, permit fees, etc.) to the organizing agency that helps offset the costs of the event operations.

G.“ Sponsorship Agreement” means a binding agreement between the City and an organization or individual to pay a fee, provide services, share products or any combination thereof, including advertising and promotional opportunities between the City and an organization or individual.

H.“ Table Sponsorship” means a City sponsorship to cover the cost of a table at a non-City event allowing a group of individuals, often representing the City or involved in City-related initiatives, to attend the event without incurring individual expenses.

IV. GENERAL REQUIREMENTS, ELIGIBILITY CRITERIA, AND CONDITIONS A. Failure to comply with this Policy, including misuse of funds, may result in the forfeiture of funds and disqualification from future requests.

B. All applicants must submit a community event sponsorship application. Applications must be complete in order to be accepted. Applications must:

1. Describe the organization’ s purpose, years of operation, leadership team, and financial stability;

2. Include the estimated number of people that will attend the community event;

3. Describe the community event and explain how it benefits Palm Desert residents and visitors;

4. Indicate whether Applicant has received any or will apply for other sponsorships or sources of funding for the community event, and if so, which ones; and

5. Provide additional information as requested by staff to evaluate compliance with this Policy.

C. Due to limited resources, not all community event sponsorship requests are funded. The number of community events that the City sponsors varies annually. The City will evaluate each request based upon available funds, satisfaction of the eligibility criteria, and compliance with the application requirements set forth below.

DocuSign Envelope ID: 7BB6E29B- BC4A-45DE-B4EB-A4FE7E0A7066 148
Community Event Sponsorship Policy
Updated January 25, 2024

D. Applicants for community event sponsorships must meet all the following requirements, eligibility criteria, and conditions:

1. Applicants must independently conduct the community event or collaborate with another organization to be eligible to receive a sponsorship.

2. The community event must take place within Palm Desert city limits, with limited exceptions. Reason( s) for not holding the proposed event within Palm Desert city limits must be stated on the application. Exemption from this requirement will be provided on a case-by-case basis and will favor activity promoting the City of Palm Desert as a desirable place to live, visit, and do business.

3. Applicants agree to submit a Special Events Application/ Agreement a minimum of 120 days prior to the event, or a Temporary Use Permit (TUP), if applicable.

4. Applicants agree to use sponsorship funds exclusively for the community event represented in the application.

5. Recipients shall provide the City recognition as a sponsor in exchange for the sponsorship in a method consistent with other sponsors at the community event.

In no event shall the recognition for the City's sponsorship be less than that provided to other sponsors who have contributed the same total financial or in-kind support.

6. Applicants are required to enter a sponsorship agreement with the City and provide a certificate of liability insurance or proof of self-insurance, if applicable.

7. Community event sponsorship applications are limited to one per year, per taxpayer identification number.

8. Sponsorships will be approved on a competitive basis and are not guaranteed.

Applicants should be aware that they may not receive the full amount of the sponsorship requested.

9. Sponsorship approvals are made on an annual basis and shall be considered as a one-time approval. Approval for sponsorship in one year does not imply or guarantee that the City will approve sponsorship for the same event or organization in subsequent years.

10. An official post-community event evaluation form must be submitted to City staff within ninety ( 90) days following the conclusion of a sponsored community event.

V. INELIGIBLE ORGANIZATIONS AND ACTIVITIES OR PROJECTS
A. Examples of ineligible organizations or activities include, but are not limited to:

1. Any non- community event request, such as on-going programming or structured activities. ( i.e., classes, performances, procedures, etc.)

2. Private events or events that are not open to the general public.

DocuSign Envelope ID: 7BB6E29B- BC4A-45DE-B4EB-A4FE7E0A7066 149
Community Event Sponsorship Policy
Updated January 25, 2024

3. Discriminatory activities such as those restricted based on a person’s race, religion, ethnicity, age, sex, gender, gender identity, gender expression, disability, sexual orientation, or economic status.

4. A political, politically affiliated, or political action organization or event or activity that promotes any political viewpoint, provides for a political purpose or causes participants to engage in or otherwise affiliate or express an endorsement of partisan political functions or activities.

5. An event or activity that promotes a religious purpose ( as opposed to a secular purpose, such as promoting cultural heritage or community understanding).

6. A private individual for his/her own use.

7. Funds cannot be used for costs, cash prizes, cash awards, salaries, salary reimbursements, or general budget subsidy.

8. Funds cannot be directly provided to specific individuals, nor may funds be constructively provided to specific individuals ( e.g. using funds to pay for certain individuals to go to an event is not permitted.) By contrast, using funds to reduce the overall costs of an event is permitted.

9. An organization receiving Outside Agency funding concurrently ( during the same fiscal year).

10. A K-12 school or school- related groups, as funding requests for schools and schoolrelated groups shall be processed by the Outside Agency/ Charitable Contributions Committee.

B. No sponsorship shall be granted for community events or to organizations where a conflict of interest exists. Specifically, City officials, employees, or their immediate family members shall not receive sponsorship funding for events they are directly involved with or that may result in personal financial gain. In the event of a potential conflict of interest, officials and employees are required to disclose such conflicts and recuse themselves from any related sponsorship decisions. This provision serves to ensure that sponsorship decisions are made for the sole benefit of the community and are free from personal or private interest influences.

VI. ASSESSMENT CRITERIA
A. An applicant’ s first sponsorship request may total no more than 50% of the community event budget ( if sponsorship includes in-kind, value of the in-kind items may not equal more than 50% of the event budget).

B. An applicant’ s second or subsequent sponsorship request may total no more than 35% of the community event budget ( if sponsorship includes in-kind, value of the in-kind items may not equal more than 35% of the event budget).

C. Sponsorship requests for a 5K walk/run shall be eligible for a maximum sponsorship of 2,500.

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Community Event Sponsorship Policy
Updated January 25, 2024

D. Special consideration will be given to registered local nonprofit corporations or local 501(c) organizations with tax-exempt status.

Please note that requesting the allowed percentage does not ensure that the applicant will receive that percentage, or any, amount. No request is considered approved until it is approved by the City Council or City Manager. The City Council reserves the right to deviate from the criteria contained herein when it believes it is the City’s best interest to do so.

VII. FUNDING TIMELINE
The community event sponsorship application period will typically open in January. Once the application period opens, applicants will be required to submit applications by the posted deadline for events that will occur in the upcoming program year. A program year runs from July 1 through June 30. The community event for which a sponsorship is requested must occur in this timeframe. No sponsorship will be considered for any community event that falls outside of these dates.

Organizations requesting funding after the application period closes may submit an application to the City Manager for special consideration. Sponsorships awarded in this circumstance are rare and are contingent upon ( 1) available funds remaining in the budget following disbursement to organizations compliant with this Policy’s annual deadline; and (2) a finding made by the City Manager that special circumstances prevented the Applicant from applying for a sponsorship by the required deadline and the community event could not occur the following year.

VIII. ADMINISTRATION AND ENFORCEMENT OF POLICY

1. The City Council designates the City Manager to administer the Sponsorship Policy. This delegation is with the power of re-designation to appropriate staff.

2. The City Manager or her/his designee shall review all Sponsorship applications and determine compliance with this policy.

3. On an as needed basis, the City Manager or her/his designee may refer any community event sponsorship application directly to the City Council for approval or rejection with a majority vote.

4. Recipients must comply with all other applicable City, state, and federal laws and regulations.

DocuSign Envelope ID: 7BB6E29B- BC4A-45DE-B4EB-A4FE7E0A7066 151
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1 CITY OF PALM DESERT

OUTSIDE AGENCY PROGRAM
Outside Agency Program Guidelines (Revised January 25, 2024) FOCUS
The Outside Agency Funding Program was designed to support organizations that further Palm Desert programs and services and assist residents in need of support. • Primary consideration is given to recognized nonprofit organizations that directly benefit Palm Desert residents.
• Secondary consideration is given to recognized nonprofit organizations that indirectly affect the quality of life for the residents of Palm Desert.
• Preference is given to those applicants meeting the health and human service needs of underserved populations.

OBJECTIVES
• Protection and improvement of the living environment for the residents of Palm Desert. • Assistance to low and moderate-income households and special population groups such as the elderly in meeting basic needs.
• Enabling residents to increase or improve his/her capacity to successfully handle issues over the long-term without continuing public assistance.

PRIORITIES
Priority is given in the following order to programs, projects or services that:

1. Address basic living conditions of the residents of Palm Desert, which include food and shelter.

2. Improve an individual’s or household’s health, basic living conditions and capacity to be selfsufficient, which include health care and related transportation, seniors, children, and youth services.

3. Improve the livability of the community. While these requests may provide programs or services that are not of necessity, they do offer exposure to arts and culture, advocacy, historic places or events, animals, educational programs, or services related to employment or job training, and other programs or services deemed necessary to support community groups and organizations.

Funding for certain events or activities that do not fall under the Special Programs umbrella may be considered on a case-by-case basis and must be open to the public (e.g. public park, inclusive event.)

APPLICATION GUIDELINES FOR RECOGNIZED NON-PROFIT ORGANIZATIONS

1. Failure to comply with these Guidelines, including misuse of funds, may result in the termination of funding and disqualification from future grant cycles. 153
Guidelines for Application Review and Consideration
Revised: January 25, 2024
2 2. This is a competitive grant process; all applications will be evaluated based on the merit of the program or project. Applications must be complete in order to be accepted. Applications must:

A. Describe the organization’s purpose, years of operation, and leadership team; B. Include the estimated number of people that will be impacted by the use of the grant funds; C. Explain how the proposed use of grant funds aligns with community needs and the community benefit that will be achieved by the use of the grant funds; D. Describe project feasibility and the organization’s financial stability; E. Indicate whether the Applicant has received any other sources of funding for the proposed project.

3. The Applicant will agree to submit program outcomes and financial reports to the City regarding use of the funds upon request.

4. Requests for funds that will be re-granted by the organization in any way will not be considered.

5. Due to the competitive nature of the grant process, receiving time at the Finance Department will be the governing time for acceptance of applications. It is the responsibility of the Applicant to see that any material sent through the mail, in person, or by any other delivery method, will have sufficient time to be received by this specified date and time. Postmarks will not be accepted in lieu of actual delivery.

6. Applicants must be able to demonstrate that they apply for and receive funding from other sources, governmental or otherwise, and are not relying solely on City support. If the service offered is unique to Palm Desert, special consideration may be provided.

7. Funding requests are for the period of July 1 through June 30 of the program year. The activity or service for which funds are requested must occur in this timeframe. No award will be considered for any part of the program or service that falls outside of these dates, unless otherwise authorized by the City Manager as provided below.

8. The Applicant requesting funds must be in existence for a minimum of five (5) years prior to the application deadline in order to be considered for funding by the Outside Agency Funding Committee.

9. The Applicant must be of verifiable non-profit status and presently providing charitable, public benefit, public welfare or educational services to persons residing in the City of Palm Desert (the “City”).

10. Organizations shall agree not to use grant funds for political lobbying or discriminatory activities. The funds must be used for activities which are open to the general public and not restricted based on a person’s race, religion, ethnicity, age, sex, gender, gender identity, gender expression, disability, sexual orientation, or economic status.

11. Funds must be used towards the activity described in the application. The grant funds cannot be directly provided to specific individuals, nor may the grant funds be constructively provided to specific individuals (e.g. Using grant funds to pay for certain individuals to go to an event is not permitted. By contrast, using grant funds to reduce the overall costs of an event is permitted.).
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Guidelines for Application Review and Consideration
Revised: January 25, 2024
3 12. Religious organizations are eligible to apply for grant funds, but the use of the grant funds cannot be devoted to a religious purpose. Instead, the grant funds must be used toward a secular purpose (e.g. cultural heritage; promote community knowledge and understanding).

13. The Applicant must have an existing program in place and a staff that is ready and willing to provide services to the City for the benefit of its residents. Funds will not be contributed to any agency or group for “startup” costs.

14. The City must have the desire to have the services as detailed in the Applicant’s application performed for the City and its residents by the agency or group. Priority is given to agencies providing a direct benefit to Palm Desert residents.

15. Organizations receiving a Community Development Block Grant (CDBG) or other City funding in the same period are typically not considered for Outside Agency funding.

16. Funds awarded to successful Applicants are for the purposes of providing a program or service to the City of Palm Desert, or its sphere of influence, to the extent possible. Said funds are not designated for capital purchases, equipment, or insurances of any kind, and cannot be used for salaries of employees on the payroll of the Applicant without prior approval of the City Council.

17. The Applicant agrees to use the funds granted by the City to provide only the services represented in its application for funding and listed on the Agreement between the Applicant and the City.

18. An Applicant is ineligible to receive funding for events or programs which it does not conduct itself or conduct in collaboration with another organization.

19. Where the Applicant received funding for the current fiscal year, all documents must be submitted and agreement terms complete prior to funding disbursement for the following fiscal year.

20. Organizations requesting funding after the deadline for the annual review has passed may submit an application to the City Manager for special consideration. Award of funds in this circumstance is rare, and is contingent upon (1) available funds remaining in the Outside Agency

21. Budget following disbursement to organizations compliant with the Committee’s annual deadlines, (2) a finding made by the City Manager that special circumstances prevented the Applicant from applying for grant funds by the required deadline and the event could not occur the following year.

22. Recreational fundraising events (i.e. golf tournaments, luncheon/dinner sponsorships and tickets, gala attendance and support) do not qualify for Outside Agency funding.

23. Emergency requests for contributions should be reviewed by the City Manager on a case- bycase basis to determine funding availability.

24. The City Manager may, after a request from an approved Outside Agency, consider a reallocation of the approved contribution provided such reallocation is consistent with the guidelines and the previously approved use.
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Guidelines for Application Review and Consideration
Revised: January 25, 2024
4 ADDITIONAL GUIDELINES FOR SCHOOL ORGANIZATIONS (PTOs) The City of Palm Desert may elect to award funding to a Parent Teacher Organization, Association, Parent Club, Foundation or other formal group (“PTO”) of a Palm Desert public school in an effort to enhance educational programs and improve the scholastic abilities of the student body as a whole, and to support the various booster clubs at the school. The City aims to support efforts furthering student accomplishments in the areas of Science, Technology, Engineering and Mathematics (STEM) as well as college preparation programs, and requires that the PTO be in good standing with the City relative to any and all previous grant applications and agreements.

The City does not award funding for instruction, tuition or supervision of routine educational activities as these costs are not the responsibility of a municipality. Additionally, the City will direct any individual requests received from school clubs (boosters, dance, cheer, robotics, etc.) during the funded year back to the PTO for their consideration and recommend they submit a request to their PTO for inclusion in the upcoming application year. The City encourages the PTO to fundraise and support specialty programs for overall student enhancement as they see fit. The City has focused its interest in providing a charitable contribution to specific areas the City regards as beneficial to a majority of students.

Examples of Acceptable Expenditures
• Math and science-oriented computer software programs (e.g. TurnItIn, StateStandards) • Odyssey of the Mind, SAT preparation and AP testing fee reimbursement • Tutoring and scholastic reading programs and materials (does not include tutor compensation) • Bully-, drug-, and gang-prevention programs and assemblies • Curriculum-based assemblies (authors, demonstrations) • Educational, curriculum-based field trip admission and transportation for students only o Examples of educational field trips: Living Desert, Riley’s Farm, Museum of Tolerance, Coachella Valley Water District. Show how the trip relates to the curriculum and follow up with student reports on what was learned.
o Examples of non-educational field trips: Disneyland, SeaWorld, Knott’s Berry Farm o Transportation costs for approved travel should be reasonable such as school bus or coach. Limousines or other modes of transportation not regularly provided for school use are not reimbursable.

Any other expenditure requests not specifically listed must be submitted and discussed during the application process to determine if they would qualify for reimbursement. Any adjustments are at the discretion of the City Manager.

Examples of Discouraged Expenditures
• Awards assemblies and supplies (i.e. student of the month and improvement awards) • Tuition, salary, or supervision expenses
• Supplemental classroom materials or library supplies
• Capital equipment or hardware such as computers, laptops, televisions or projector screens • Culinary, photography, or other specialty programs
• Reward or social parties (i.e. pizza party, ice-cream social) • Food, drinks, snacks of any kind for any meetings or activities • School dance, promotion, graduation expenses
• Hotel accommodations for any activities or events
• Fundraising, alumni or celebratory activities (bounce house rentals, carnival booths, festival events.
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City of Palm Desert Staff Report
Meeting Date: June 25, 2026
Prepared By: Clay von Helf, Information Systems Manager Carlos Acoeda, Sr. Enterprise Systems Administrator
Jenavieve Alvarez, Enterprise Systems Administrator
Department: Finance
Subject: Approve Contract Amendment No. 1 to Contract No. C50210 with Speridian, LLC, to Expand Clariti System Implementation Work
Recommendation

1. Approve Contract Amendment No. 1 to Contract No. C50210 with Speridian, LLC, for additional services in the amount not to exceed $250,224 and a seven-month project extension through January 31, 2027.

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

3. Authorize the City Manager to execute the amendment and change order and any related documents to effectuate this action.

Executive Summary
Staff recommends approval of a $250,224 change order and a seven-month extension with Speridian, LLC, to complete the expanded Clariti system implementation. The Amendment is needed because Fire Marshal services were incorporated into Development Services after the original project scope was approved, and to coordinate the implementation of Workday Financial Management.

The Amendment will support three related needs:
 Integrate Fire Marshal permitting, plan review, inspections, and workflows into Clariti permitting and business licensing.
 Complete configuration improvements identified by staff and customers after the Clariti permitting system went live.
 Create an integration between Clariti and Workday Financial Management, so that permitting and licensing fee data can transfer automatically between systems.

Background
In January 2024, the City contracted with Speridian, LLC, to implement Clariti Land Management Solution and replace the legacy TRAKiT system. Clariti is a cloud-based platform built on Salesforce Customer Relationship Management technology that streamlines permitting, licensing, workflow automation, and public portal services.

The Clariti implementation has been structured in phases:
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 Phase 1 - Permitting System: Went live in November 2025 and replaced core permitting functions previously handled through TRAKiT.
 Phase 2 - Business Licensing System: Approved by the City Council in December 2025 to bring business licensing into the same platform used for permitting and related customer-facing services.

After Phase 1 went live and Phase 2 was approved, the City incorporated Fire Marshal services into Development Services, establishing a physical presence at City Hall. This created the need to add Fire Marshal reviews, permits, inspections, and related workflows to both Clariti permitting and Clariti business licensing.

Because the Fire Marshal scope was identified after the original Phase 2 approval, it was not included in the prior project scope. City staff worked with Speridian to define the additional configuration, workflow, testing, and implementation services needed to incorporate fire-related services into the expanded system.

Staff also collected feedback after the permitting system launch and identified configuration changes that would improve the public portal and internal workflows. Those enhancements are included in this change order so they can be implemented during the Business Licensing System phase rather than handled separately.

Analysis
The proposed change order addresses three operational needs required to complete the expanded Clariti implementation.

Fire Marshal integration:
 Adds Fire Marshal permitting, plan review, inspections, and workflow steps into Clariti.  Aligns Fire Marshal work with Development Services operations now that those services are integrated at City Hall.
 Allows fire-related review requirements to be incorporated into both permitting and business licensing processes.

Permitting system enhancements:
 Provides additional service hours for configuration changes identified after the Phase 1 go-live.
 Improves the public portal and staff workflows based on customer and employee feedback.
 Supports a more consistent experience for applicants, reviewers, inspectors, and City staff.

Workday Financial Management integration:
 Connects Clariti with the City’s new Workday Financial Management system.  Reduces manual entry of permitting and licensing fee data.  Improves accuracy, reconciliation, and financial reporting for fees collected through Clariti.
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The additional Fire Marshal scope will extend the Business Licensing System implementation schedule. The anticipated go-live date is now December 2026, which provides time for configuration, testing, training, and validation of the expanded system capabilities.

Public Benefit:
 Creates a more complete online permitting and licensing process by including firerelated reviews and inspections in the same system.  Reduces duplicate data entry and manual handoffs between systems.  Improves transparency and consistency for residents, contractors, business owners, and staff.
 Supports the City’s broader effort to modernize customer service and internal business processes.

Environmental Review
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(3) and 15378(b)(5). The proposed action involves contract amendments and clarifications to Contract No. C50210 with Speridian, LLC to incorporate Fire Marshal services into Development Services, complete configuration improvements and to coordinate the implementation of Workday Financial Management for the City’s Clariti system implementation. This action is not a project per State CEQA Guidelines section 15378(b)(5) because the action is an administrative activity that will not result in direct or indirect physical changes in the environment. Thus, the proposed action is not subject to CEQA under State CEQA Guidelines section 15060(c)(3). No further environmental review is required for this action.

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

Financial Impact
Funding for this purpose is available in the FY2025-26 Budget in Account No. 1104190- 4390000. The change order does not add to operational software subscription costs for the Clariti Permitting and Business Licensing systems. The City is currently in year three of a fouryear agreement for Clariti Land Management Software. 159

Sources and uses for this action are summarized below:

Description Amount
Funding Source: FY 2025-26
Budget
$476,627
Less:

Original Contract (C50210) $205,820
Approved Contingency $20,582
Total Original Authorization $226,402
This Request: Change Order $250,224
Balance Available $0
Attachments

1. C50210 – Speridian Amendment No.1
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Conflict of Interest Awareness Checklist
Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations.

1. Site-Specific Property Interest
Does this item involve a project site or other identifiable real property? ☐ Yes
☒ No
If yes, identify the project site:

Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).

2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☒ Yes
☐ No
If yes, identify the party: Speridian, LLC
Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 161
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Contract No. C50210
1 Rev 04-26
72500.00001\44340560.1
AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT
AND SPERIDIAN TECHNOLOGIES, LLC.

1. Parties and Date.

This Amendment No. 1 (“Amendment”) to the Professional Services Agreement, Contract No. C50210, is made and entered into on June 3, 2026, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, 92260-2578 (“City”) and Speridian Technologies, LLC, a Limited Liability Company, with its principal place of business at 2400 Louisiana Blvd NE, Building 3, Albuquerque, NM 87110 (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

1.1 City Council Approval. On June 25, 2026, City Council approved the award of this Amendment to Consultant named above.

2. Recitals.

2.1 Agreement. The City and Speridian Technologies, LLC entered into a Professional Services Agreement (“Agreement”) on December 10, 2025, for the purpose of retaining the services of Speridian Technologies, LLC for Implementation of Clariti Business Licensing System Project (“Project”).

2.2 Amendment Authority. This Amendment is authorized pursuant to Section

3.6.14 of the Agreement.

2.3 The purpose of this Amendment No. 1 is to expand the scope of work, extend the contract term, and increase compensation amount.

3. Terms. The Agreement is hereby amended as follows:

Section 3.1.1 General Scope and Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the services
necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” and “B” and
Exhibit “A-I” and “B-I”, attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the
exhibits attached hereto and incorporated herein by
reference, and all applicable local, state, and federal laws, 163
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rules and regulations.

Section 3.1.2 Term. The term of this Agreement shall be from January 6, 2026, to January 31, 2027, unless earlier terminated as provided herein. Consultant shall complete the
services within the term of this Agreement and shall meet any other established schedules and deadlines.

Section 3.3.1 Compensation. Vendor shall receive compensation, including authorized reimbursements, for all Services
rendered under this Agreement at the rates set forth in Exhibit “C” and Exhibit “C-I” attached hereto and
incorporated herein by reference. The total compensation shall not exceed FOUR HUNDRED FIFTY-SIX
THOUSAND FORTY-FOUR DOLLARS AND 00/100
($456,044.00) without written approval of the City Council or City Manager, as applicable.

3.1 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1.

3.2 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1.

3.3 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR AMENDMENT NO. 1

TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND SPERIDIAN TECHNOLOGIES, LLC.

CITY OF PALM DESERT

Chris Escobedo
City Manager
Attest:

Anthony J. Mejia
City Clerk
Approved to form by:
____________________________
Isra Shah
City Attorney

SPERIDIAN TECHNOLOGIES LLC, A

LIMITED LIABILITY COMPANY

Satish Ganta
Executive Vice President, Enterprise
Solutions
Office Use:

Quality Check Insurance Review
City Clerk Contracts Initial Final
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Exhibit “A-I” and Exhibit “B-I”

SCOPE OF WORK AND SCOPE OF SERVICES
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EXHIBIT “C-I”

COMPENSATION
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City of Palm Desert Staff Report
Meeting Date: June 25, 2026
Prepared By: Maria Murillo, Management Analyst
Randy Chavez, Director of Public Works
Department: Public Works
Subject: Authorize the Levy of a Special Tax in Community Facilities District No. 2021-1 (University Park) for Fiscal Year 2026/2027
Recommendation
Adopt a Resolution entitled “A Resolution of the City Council of the City of Palm Desert, California, Authorizing the Levy of a Special Tax in Community Facilities District No. 2021-1 (University Park) for Fiscal Year 2026/2027.”
Executive Summary
Community Facilities District No. 2021-1 (University Park) (“District”) was established to finance public improvements within the District through the issuance of refunding bonds. Each year, the City Council must authorize the levy of a special tax to fund debt service on the District’s bonded indebtedness.

Adoption of the attached resolution will authorize the Riverside County Auditor-Controller to levy and collect the special tax for Fiscal Year 2026/2027 in accordance with the District’s approved Rate and Method of Apportionment.

Background
Community Facilities District No. 2021-1 (University Park) is located north of Desert Willow Drive between Portola Avenue and Cook Street. The District finances public improvements within the University Park development area through the issuance of approximately $15.2 million in refunding bonds.

Debt service on these bonds is repaid through special taxes levied on properties located within the District boundaries. The District's financing structure provides a dedicated funding source for repaying bond obligations associated with public improvements.

Analysis
State law requires the City Council to annually authorize the levy of the special tax for each Community Facilities District. The proposed resolution authorizes the levy of the Fiscal Year 173

2026/2027 special tax at rates consistent with the approved Rate and Method of Apportionment, attached to the resolution as Exhibit "A." Approval of the resolution will allow the Riverside County Auditor-Controller to levy and collect the special tax on properties within the District and remit the revenues necessary to satisfy the District’s debt service obligations as they become due.

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

Financial Impact
Debt service for Community Facilities District No. 2021-1 (University Park) is funded through special taxes collected from properties located within the District boundaries. Adoption of the resolution will authorize the levy and collection of these taxes for Fiscal Year 2026/2027 and provide funding for the District’s debt service obligations.

Budgeted revenues and expenditures associated with the District have been included in the proposed Fiscal Year 2026/2027 Financial Plan in the respective accounts.

Attachments

1. Resolution (Exhibit “A” – Proposed Special Tax Rates Attached)

2. Community Facilities District No. 2021-1 Map (Exhibit “B”) 174

Conflict of Interest Awareness Checklist
Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations.

1. Site-Specific Property Interest
Does this item involve a project site or other identifiable real property? ☒ Yes
☐ No
If yes, identify the project site: Councilmembers should review whether they own, lease, or otherwise hold a financial interest in real property located within Community Facilities District No. 2021-1 (University Park) or within 1,000 feet of the District boundaries. If so, the Councilmember should consult the City Attorney before participating in this item.

Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).

2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☐ Yes
☒ No
If yes, identify the applicant(s), appellant(s), party, or participant(s):

Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 175
176

Resolution No. 2026-____
Resolution of the City Council of the City of Palm Desert, California, Authorizing the Levy of a Special Tax in Community Facilities District No. 2021-1 (University Park) for Fiscal Year 2026/2027
Whereas, the City Council of the City of Palm Desert (hereinafter referred to as the "Agency"), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a Community Facilities District, as authorized pursuant to the terms and provisions of the "Mello Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. Community Facilities District No. 2021-1 shall hereinafter be referred to as "District"; and Whereas, this City Council, by Ordinance as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said District, and this City Council intends to establish the specific rate of the special tax to be collected for the next fiscal year.

Now, therefore, be it resolved by the City Council of the City of Palm Desert, California, as follows:

Section 1. Recitals.

That the foregoing Recitals are true and correct and are incorporated herein by this reference.

Section 2. Special Tax Rates.

That the special tax rates for each tax category to be used to generate special tax revenues, which will be collected to pay for the costs and expenses for the next fiscal year (2026/2027) for the referenced District, is hereby determined and established as set forth in the attached, referenced and incorporated Exhibit “A”.

Section 3. Consistency with Prior Authorization and Voter Approval.

That the rates as set forth above do not exceed the amount as previously authorized by Ordinance of this Council, and are not in excess of that as previously approved by the qualified electors of the District.
177
Resolution No. 2026-____ Page 2
Section 4. Collection of Special Tax.

The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties, procedures and sale in case of any delinquency for ad valorem taxes. The Riverside County Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax.

Section 5. Deposit of Special Tax Revenues.

Monies above collected shall be paid into the District funds.

Section 6. Placement of Special Tax on Tax Roll.

Upon receipt from the Riverside County (“County”) of the final secured tax roll, the special tax consultant shall determine the special tax levy needed to meet the special tax requirement, which shall not exceed the rates shown in Exhibit A hereto. The Auditor of the County is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land effected in a space marked "public improvements, special tax" or by any other suitable designation, the installment of the Special Tax, and for the exact rate and amount of said tax, reference is made to the attached Exhibit “A”.

Section 7. County Auditor Reporting.

The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

Section 8. Direct Billing of Omitted Taxable Parcels.

Special Taxes are to be levied on non-exempt parcels within the District. Should it be discovered that any taxable parcels are not submitted to the County Auditor for inclusion into the 2026/2027 Tax Roll subsequent to the submittal deadline of August 10, 2026, the City Council directs the City of Palm Desert staff or their agents to bill such parcels directly via U.S. mail using the rates as approved in Exhibit “A”.

Section 9. Effective Date.

This Resolution shall become effective immediately upon its adoption. 178
Resolution No. 2026-____ Page 3
Adopted on ________________, 2026.

Evan Trubee
Mayor
Attest:

Anthony J. Mejia
City Clerk
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2026-__ 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
179
Resolution No. 2026-____ Page 4
Exhibit “A”
Community Facilities District No. 2021-1
(University Park)
Proposed Special Tax Rates
Fiscal Year 2026/2027
The following tables summarize the Assigned and the Proposed Special Tax Rates relating to each land use class.

Zone 1
(1)The Assigned Special Tax for Developed, Provisional Welfare, Provisional, Approved, and Undeveloped Property shall be increased by two percent (2%) of the amount in effect the prior Fiscal Year.
(2)The Proposed Special Tax Rates to be Levied for Fiscal Year 2026/2027 will not exceed the Assigned Special Tax Rates described above.

Zone 2
(1)The Assigned Special Tax for Developed, Provisional Welfare, Provisional, Approved, and Undeveloped Property shall be increased by two percent (2%) of the amount in effect the prior Fiscal Year.
(2)The Proposed Special Tax Rates to be Levied for Fiscal Year 2026/2027 will not exceed the Assigned Special Tax Rates described above.

LAND USE CLASS SPECIAL TAX RATE

MULTIPLIER

RESIDENTIAL

FLOOR AREA

ASSIGNED

SPECIAL TAX
RATE(1)

PROPOSED

SPECIAL
TAX RATE(2)
Developed & Provisional Welfare Property
1 Single Family Property Per Residential Unit ≥2500 $2,539.38 $2,539.38 2 Single Family Property Per Residential Unit 2400-2499 $2,456.57 $2,456.57 3 Single Family Property Per Residential Unit 2300-2399 $2,401.37 $2,401.37 4 Single Family Property Per Residential Unit 2200-2299 $2,318.56 $2,318.56 5 Single Family Property Per Residential Unit 2100-2199 $2,235.76 $2,235.76 6 Single Family Property Per Residential Unit 2000-2099 $2,125.35 $2,125.35 7 Single Family Property Per Residential Unit 1900-1999 $1,766.52 $1,766.52 8 Single Family Property Per Residential Unit 1800-1899 $1,711.32 $1,711.32 9 Single Family Property Per Residential Unit < 1800 $1,407.70 $1,407.70 10 Non-Residential Property Per Acre NA NA NA
Provisional, Approved, & Undeveloped
Property
Per Acre NA $17,023.82 $17,023.82

LAND USE CLASS SPECIAL TAX RATE

MULTIPLIER

RESIDENTIAL

FLOOR AREA

ASSIGNED

SPECIAL
TAX RATE(1)

PROPOSED

SPECIAL TAX
RATE(2)
Developed& Provisional Welfare Property
1 Single Family Property Per Residential Unit ≥3400 $3,339.84 $3,339.84 2 Single Family Property Per Residential Unit 3200-3399 $3,284.64 $3,284.64 3 Single Family Property Per Residential Unit 3000-3199 $3,174.23 $3,174.23 4 Single Family Property Per Residential Unit 2800-2999 $3,091.42 $3,091.42 5 Single Family Property Per Residential Unit 2600-2799 $2,953.41 $2,953.41 6 Single Family Property Per Residential Unit 2400-2599 $2,898.21 $2,898.21 7 Single Family Property Per Residential Unit 2200-2399 $2,870.61 $2,870.61 8 Single Family Property Per Residential Unit 2000-2199 $2,843.00 $2,843.00 9 Single Family Property Per Residential Unit < 2000 $2,732.59 $2,732.59 10 Non-Residential Property Per Acre NA NA NA
Provisional, Approved, & Undeveloped Property Per Acre NA $21,333.04 $21,333.04 180
Resolution No. 2026-____ Page 5
Zone 3
(1)The Assigned Special Tax for Developed, Provisional Welfare, Provisional, Approved, and Undeveloped Property shall be increased by two percent (2%) of the amount in effect the prior Fiscal Year.
(2)The Proposed Special Tax Rates to be Levied for Fiscal Year 2026/2027 will not exceed the Assigned Special Tax Rates described above.

LAND USE CLASS SPECIAL TAX RATE

MULTIPLIER

RESIDENTIAL

FLOOR AREA

ASSIGNED

SPECIAL
TAX RATE(1)

PROPOSED

SPECIAL TAX
RATE(2)
Developed Property
1 Single Family Property Per Residential Unit ≥2500 $2,539.38 $2,539.38 2 Single Family Property Per Residential Unit 2400-2499 $2,456.57 $2,456.57 3 Single Family Property Per Residential Unit 2300-2399 $2,401.37 $2,401.37 4 Single Family Property Per Residential Unit 2200-2299 $2,318.56 $2,318.56 5 Single Family Property Per Residential Unit 2100-2199 $2,235.76 $2,235.76 6 Single Family Property Per Residential Unit 2000-2099 $2,125.35 $2,125.35 7 Single Family Property Per Residential Unit 1900-1999 $1,766.52 $1,766.52 8 Single Family Property Per Residential Unit 1800-1899 $1,711.32 $1,711.32 9 Single Family Property Per Residential Unit Less than 1800 $1,407.70 $1,407.70 10 Apartment Property Per Residential Unit NA $0.00 $0.00 11 Non-Residential Property Per Acre NA NA NA
Provisional, Approved, & Undeveloped Property Per Acre NA $25,020.67 $25,020.67 181
182

PORTOLA AVE

FRANK SINATRA DR

PORTOLA AVE

GERALD FORD DR

COOK ST COOK ST

GERALD FORD DR

COLLEGE DR
Copyright nearmap 2015
Community Facilities District
I

VICINITY MAP
CFD 2021-1 Boundary
183
184

City of Palm Desert Staff Report
Meeting Date: June 25, 2026
Prepared By: Daniel Hurtado, Public Safety Coordinator
Department: City Manager’s Office
Subject: Approve Amendment No. 4 with Townsend Public Affairs, Inc., for Legislative Advocacy and Grant Writing Services
Recommendation

1. Approve Amendment No. 4 to Contract No. A45760 with Townsend Public Affairs, Inc., for legislative advocacy and grant writing services through June 30, 2027, in an amount not to exceed $114,000 for Fiscal Year 2026/27, and authorize total cumulative contract authority not to exceed $401,250 for the full agreement term.

2. Ratify prior expenditures under Contract No. A45760 to reconcile the contract record based on prior amendments and services rendered.

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

4. Authorize the City Manager or designee to execute Amendment No. 4 and any related documents necessary to effectuate this action.

Executive Summary
The City has an existing Professional Services Agreement with Townsend Public Affairs, Inc., for grant consulting, grant writing, and legislative advocacy services. Townsend assists the City with identifying state and federal funding opportunities, developing grant applications, advancing legislative priorities, and supporting funding advocacy for City projects.

Staff is requesting City Council approval of Amendment No. 4 to renew the agreement through June 30, 2027, increase the monthly compensation to $9,500, and authorize a Fiscal Year 2026/27 not-to-exceed amount of $114,000. This item also provides an opportunity to clarify the cumulative contract authority and ratify prior expenditures to the extent necessary because prior amendments extended the agreement and continued services but did not consistently restate the cumulative not-to-exceed compensation authority.

Background
On July 17, 2023, the City entered into a Professional Services Agreement with Townsend Public Affairs, Inc. for grant management services. The original agreement established a monthly retainer of $3,750 and provided for an initial term through June 30, 2024, with up to three additional one-year renewal terms.

In February 2024, the City approved Amendment No. 1, which expanded the scope of services to include legislative advocacy and grant writing, and increased monthly compensation to $9,000. Amendment No. 1 also established compensation of $71,250 for Fiscal Year 2023/24 and $108,000 for subsequent fiscal years.
185

The City subsequently approved Amendment No. 2 to renew the agreement through June 30, 2025, and Amendment No. 3 to extend the agreement through June 30, 2026. These amendments extended the agreement term but did not restate or modify the compensation amount.

The proposed Amendment No. 4 would extend the agreement through June 30, 2027, increase the monthly compensation to $9,500, and establish a not-to-exceed amount of $114,000 for Fiscal Year 2026/27.

Analysis
Townsend Public Affairs provides specialized grant consulting, grant writing, and legislative advocacy services that support the City’s ability to identify and pursue state and federal funding opportunities. The scope of services includes strategic funding planning, monitoring funding opportunities, preparing grant applications, coordinating funding advocacy, tracking legislation, supporting state budget and federal earmark opportunities, and providing postsubmittal and post-award support.

These services support the City’s efforts to secure outside funding for major infrastructure, transportation, public safety, community facilities, and other priority projects. Continued support from Townsend allows staff to maintain a proactive approach to funding opportunities while also supplementing internal staff capacity.

During preparation of Amendment No. 4, staff reviewed the contract history and identified that prior amendments renewed and extended the agreement but did not consistently restate the cumulative not-to-exceed compensation authority. Amendment No. 1 established fiscal-year compensation amounts; however, Amendments No. 2 and No. 3 extended the agreement term without restating the cumulative contract authority.

As a result, staff is bringing this item forward for City Council consideration to approve the final renewal term, authorize the updated Fiscal Year 2026/27 compensation amount, ratify prior expenditures to the extent necessary, and clarify the cumulative contract authority for the full agreement term.

The proposed action ensures the contract record accurately reflects the approved scope, term, compensation, and services provided under the agreement. Because Amendment No. 4 represents the final available renewal term under the existing agreement, any future continuation of these services beyond June 30, 2027, will require a new agreement or procurement process, as applicable. Staff will ensure future agreements and amendments clearly identify both the annual compensation authority and the cumulative not-to-exceed amount.

Contract History and Cumulative Authority
The agreement was originally approved in July 2023 for grant management services and was later amended to include legislative advocacy and grant writing services. The table below summarizes the contract authority through the proposed final renewal term.

Fiscal Year Contract Action Amount
186

Fiscal Year 2023/24 Original agreement and Amendment No. 1 $71,250 Fiscal Year 2024/25 Amendment No. 2 renewal $108,000
Fiscal Year 2025/26 Amendment No. 3 extension $108,000
Fiscal Year 2026/27 Amendment No. 4 final renewal* $114,000 Total Cumulative
Contract Authority
$401,250
*Proposed amount pending City Council approval.

Approval of Amendment No. 4 would authorize the final renewal term through June 30, 2027, establish the Fiscal Year 2026/27 compensation amount, and clarify the cumulative contract authority for the full agreement term.

Environmental Review
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(3) and 15378(b)(4) and (b)(5). The proposed action involves contract amendments and clarifications for grant consulting, grant writing, and legislative advocacy services. While these services support the City in securing outside funding for major infrastructure, transportation, public safety, community facilities, and other priority projects, it does not commit the City to any specific project. This action is not a project per State CEQA Guidelines section 15378(b)(4) because it authorizes changes to an existing contract that constitute the creation of government fiscal activities that do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Further, the action is also not a project per State CEQA Guidelines section 15378(b)(5) because the action is also an administrative activity that will not result in direct or indirect physical changes in the environment. Thus, the proposed action is not subject to CEQA under State CEQA Guidelines section 15060(c)(3). No further environmental review is required for this action.

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

Financial Impact
The fiscal impact of Amendment No. 4 is $114,000 for Fiscal Year 2026/27, based on a monthly fee of $9,500. Sufficient funds are included in the 2026/27 financial plan in account GM 1104159-4309000.

Attachments

1. Amendment No. 4 to Contract A45760
187

Conflict of Interest Awareness Checklist
Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations.

1. Site-Specific Property Interest
Does this item involve a project site or other identifiable real property? ☐ Yes
☒ No
If yes, identify the project site:

Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).

2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☒ Yes
☐ No
If yes, identify the party: Townsend Public Affairs, Inc.

Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 188
Contract No. A45760
1 Rev 09-25
72500.00001\44340560.1
AMENDMENT NO. 4 TO THE PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT

AND TOWNSEND PUBLIC AFFAIRS INC

1. Parties and Date.

This Amendment No. 4 (“Amendment No. 4”) to the Professional Services Agreement, Contract No. A45760, is made and entered into on June 25, 2026 by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, 92260-2578 (“City”) and Townsend Public Affairs, Inc., a S Corporation, with its principal place of business at 1401 Dove Street, Suite330, Newport Beach, CA 92660 (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

1.1 City Council Approval
On June 25, 2026, City Council approved the award of this Amendment No. 4 to the Consultant above.

2. Recitals.

2.1 Agreement. The City and Consultant entered a Professional Services Agreement (“Agreement”) on July 17, 2023, for the purpose of retaining the services of Townsend Public Affairs, Inc. for Grant Management Services (“Project”).

2.2 Background. The parties previously entered Amendment No. 1, on February 1, 2024, to add additional services and increase compensation.

2.3 Background. The parties previously entered Amendment No. 2, on September 12, 2024, to renew the term through June 30, 2025.

2.4 Background. The parties previously entered Amendment No. 3, on July 1, 2025, to renew the term through June 30, 2026.

2.5 Amendment Authority. This Amendment is authorized pursuant to Section

3.6.14 of the Agreement.

2.6 The purpose of this Amendment No. 4 is to extend term and increase compensation.

3. Terms. The Agreement is hereby amended as follows:

Section 3.1.2 Term. The term of this Agreement shall be from July 17, 2023 to June 30, 2027, unless earlier terminated as
189
Contract No. A45760
2 Rev 09-25
72500.00001\44340560.1
provided herein. Consultant shall complete the Services within the term of this agreement and shall meet any other established schedules and deadlines.

Section 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services
rendered under this Agreement at the rates set forth in Exhibit “A-1” attached hereto and incorporated herein by reference. The total compensation shall not exceed ONE

HUNDRED AND FOURTEEN THOUSAND DOLLARS
AND ZERO CENTS ($114,000.00) without written
approval of the City Council or City Manager, as
applicable.

3.1 Continuing Effect of Agreement. Except as amended by this Amendment No. 4, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 4. From and after the date of this Amendment No. 4, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 4.

3.2 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 4.

3.3 Severability. If any portion of this Amendment No. 4 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
190
Contract No. A45760
3 Rev 09-25
72500.00001\44340560.1
SIGNATURE PAGE FOR AMENDMENT NO. 4

TO PROFESSIONAL SERVICES AGREEMENT BETWEEN
THE CITY OF PALM DESERT AND TOWNSEND PUBLIC AFFAIRS, INC.

CITY OF PALM DESERT

Chris Escobedo
City Manager
Attest:

Anthony J. Mejia
City Clerk
Approved to form by:
____________________________
Isra Shah
City Attorney
TOWNSEND PUBLIC AFFAIRS, INC., AN

S CORPORATION
____________________________
Christopher Townsend
President
____________________________
Christopher Townsend
Secretary
Office Use:

Quality Check Insurance Review
City Clerk Contracts Initial Final
191
Contract No. A45760
EXHIBIT “A-1”
Rev 09-25
72500.00001\44340560.1
EXHIBIT “A-1”

COMPENSATION
Legislative Advocacy and Grant Writing Services $9,500* State and Federal Legislative Advocacy
• Conduct Detailed Orientation Included
• Develop Legislative Strategy Included
• Implement the Legislative Strategy Included
• Build and Strengthen Relevant Relationships Included
• Leverage Relationships for Strategic Advocacy Plan Included • Coordinate Advocacy Trips Included
• Track Legislation Included
• Craft Testimony and Position Letters Included
• Draft Bill Language Included
• State Budget Funding Opportunities Included
• Federal Earmark Opportunities Included
• Provide Progress Reports Included
• Prepare and File Lobbying Disclosure Reports Included Grant Writing
• Craft Strategic Funding Plan Included
• Identify, Research, and Monitor Grant Funding Opportunities Included • Grant Application Development and Submittal Included
• Establishment of Clear Accountabilities Included
• Provide Overview of Full Applications Requirements Included • Assemble Project Background and Details Included
• Coordinate Technical Project Details Included
• Draft Written Proposal Included
• Incorporate Feedback to Finalize Proposal Included
• Submit Completed Application Included
• Funding Advocacy Included
• Post-Grant Submittal Advocacy Included
• Post-Award Grant Administration and Compliance Included • Post-Award Services-Above and Beyond Advocacy Included • Comprehensive Follow-Up on Unsuccessful Applications Included *The monthly fee includes all reasonable business and travel expenses The proposed fee above reflects a bundled service discount and is contingent on the City maintaining its existing contract with TPA for grant writing services. If the City terminates its current contract with TPA, the fee for state and federal legislative advocacy services would be amended to a standard rate of $11,000/month.
192

City of Palm Desert Staff Report
Meeting Date: June 25, 2026
Prepared By: Thomas Soule, Marketing & Tourism Manager
Department: Economic Development
Subject: Approve Amendment No. 8 to Contract No. C43370 with FG Creative for El Paseo Parking and Business Improvement District Marketing Services and Extend the Agreement through June 30, 2027
Recommendation

1. Approve Amendment No. 8 to Contract No. C43370 with FG Creative for El Paseo Parking and Business Improvement District marketing services in an amount not to exceed $350,000 for Fiscal Year 2026-27.

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

3. Authorize the City Manager to execute the agreement and all documents necessary to effectuate this action.

Executive Summary
Amendment No. 8 to Contract No. C43370 with FG Creative will extend the agreement through June 30, 2027, as the final extension permitted under the original contract, and establish a Fiscal Year 2026-27 contract amount of $350,000. The contract amount is consistent with the budget approved by the El Paseo Parking and Business Improvement District Board of Directors and will be funded through district assessment revenues. There is no fiscal impact to the General Fund with this action.

Background
The El Paseo Parking and Business Improvement District (EPPBID) is funded through assessments paid by district businesses and property owners and utilizes those revenues to support programs and services within the district.

The EPPBID contracted with FG Creative through a competitive procurement process beginning July 1, 2022. The agreement provides marketing, advertising, content development, media placement, sponsorship coordination, and related services supporting the district's annual marketing program.

The agreement is amended annually to align contract authority with the budget approved for the current fiscal year. Fiscal Year 2026-27 represents the fifth and final year of the agreement. Amendment No. 8 will extend the agreement through June 30, 2027, representing the final extension permitted under the original contract, and establish a Fiscal Year 2026-27 contract amount of $350,000.

Because Fiscal Year 2026/27 represents the final year of the agreement, City staff will conduct a competitive solicitation for marketing services prior to the expiration of the current contract. 193

The results of that process will be presented to the EPPBID Board of Directors for consideration and recommendation before returning to the City Council for award of a new agreement.

The EPPBID Board of Directors and City staff annually review available revenues, cash reserves, marketing priorities, and projected program expenses when developing the district's operating budget. The Board approved an FY 2026-27 budget that includes $350,000 for marketing services.

The approved marketing budget consists of the following major program categories:

Category FY 2026-27 Budget
Advertising & Media $154,900
Community Partnerships $5,700
Branding $56,000
Agency Fees $45,000
Activations/Events $50,900
Merchant Support $37,500
Total $350,000
The proposed Fiscal Year 2026-27 contract amount of $350,000 aligns with the Boardapproved marketing budget and reflects available district revenues and projected expenditures. The contract amount includes agency services and program implementation costs, including advertising, media purchases, content production, sponsorships, and related marketing activities.

The City Council previously approved Amendment No. 7 to Contract No. C43370, establishing a Fiscal Year 2025-26 not-to-exceed amount of $325,000. Approval of Amendment No. 8 will establish a Fiscal Year 2026-27 not-to-exceed amount of $350,000 and extend the agreement through June 30, 2027.

Appointed Body Recommendation
At its regular meeting on May 21, 2026, the El Paseo Parking and Business Improvement District Board of Directors approved the Fiscal Year 2026-27 budget, including $350,000 for marketing services.

Environmental Review
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(3) and 15378(b)(5). The proposed action involves contract amendments with FG Creative for El Paseo Parking and Business Improvement District marketing services in an amount not to exceed $350,000 for Fiscal Year 2026-27. The agreement provides marketing, advertising, content development, media placement, sponsorship coordination, and related services supporting the district's annual marketing program. This action is not a project per State CEQA Guidelines section 15378(b)(5) because 194

it authorizes changes to an existing contract that constitute an administrative activity that will not result in direct or indirect physical changes in the environment. Thus, the proposed action is not subject to CEQA under State CEQA Guidelines section 15060(c)(3). No further environmental review is required for this action.

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

Financial Impact
Upon approval of the Palm Desert Fiscal Year 2026-27 budget, funds will be available in the El Paseo Parking and Business Improvement District budget. There is no fiscal impact to the General Fund with this action. The funds will be drawn from the El Paseo Assessment District Fund, Account No. 2714491-4321500.

Attachments

1. Contract No. C43370

2. Amendment No. 1 to Contract No. C43370

3. Amendment No. 2 to Contract No. C43370

4. Amendment No. 3 to Contract No. C43370

5. Amendment No. 4 to Contract No. C43370

6. Amendment No. 5 to Contract No. C43370

7. Amendment No. 6 to Contract No. C43370

8. Amendment No. 7 to Contract No. C43370

9. Draft Amendment No. 8 to Contract No. C43370
195

Conflict of Interest Awareness Checklist
Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations.

1. Site-Specific Property Interest
Does this item involve a project site or other identifiable real property? ☒ Yes
☐ No
If yes, identify the project site: Because this item authorizes funding for marketing services intended to promote and increase visitor activity within the El Paseo Parking and Business Improvement District, Councilmembers should consider whether they own, lease, or otherwise hold a financial interest in real property located within the District or within 1,000 feet of the District boundaries. Any Councilmember with such an interest should consult the City Attorney before participating.

Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).

2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☒ Yes
☐ No
If yes, identify the party: Councilmembers who have received campaign contributions from FG Creative, its agents, or other financially interested parties are encouraged to consult with the City Attorney’s Office regarding any potential obligations under the Levine Act before participating in this item.

Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 196
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Contract No. C43370

CITY OF PALM DESERT
AMENDMENT NO. 1 TO PROFESSIONAL CONSULTANT SERVICES AGREEMENT TO MARKETING SERVICES CONTRACT No. C43370
This AMENDMENT (“Amendment”) to the FG Creative Professional Consultant Services Agreement for Marketing Services No. C43370 is made as of May 11, 2023 (“Effective Date”) by and between the CITY OF PALM DESERT, a municipal corporation organized under the laws of the State of California, having a principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, (the "Authority") and FG Creative, Inc., a California Corporation with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties.”

RECITALS
A. The City of Palm Desert is a municipal corporation organized under the laws of the State of California.

B. The Consultant is engaged in the business of providing professional marketing consulting services to public clients and has represented to the City that the Contractor is experienced and competent in said business.

C. The City and Consultant desire to enter into this Amendment to the Agreement.

D. The Parties entered into that certain Professional Consultant Services Agreement for Marketing Services Contract No. C43370, by and between the City of Palm Desert and FG Creative, Inc., dated June 23, 2022 (“Contract”), which was effective on July 1, 2022.

NOW, THEREFORE, the Parties agree to amend the Contract as follows:

Section 3.6.A Compensation shall be amended to read: “Consultant 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 Two Hundred Ninety Thousand Dollars ($290,000.00) without written approval of the City Council or City Manager, as applicable.”
All other terms of the Contract to remain unchanged and in full force and effect.

DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19 223
Contract No. C43370
IN WITNESS THEREOF, the Parties have executed this Amendment on the date first above written.

CITY OF PALM DESERT FG CREATIVE, INC.

By: ____________________________ By: __________________________ L. Todd Hileman Stephanie Greene
City Manager Principal
Attest:

Anthony J. Mejia
City Clerk
Approved as to Form:
______________________________
Best, Best, & Krieger LLP
City Attorney
QC: MN
INSURANCE:

INITIAL REVIEW

FINAL REVIEW
DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19 224
Contract No. C43370

7. EXHIBIT “C”

7.1 COMPENSATION
The CITY's budget for advertising and publicizing the EPPBID's facilities, services and events is established as part of the CITY's fiscal year budget for the period of July 1, 2022 - June 30, 2023, at $290,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:
 The CITY will pay FG CREATIVE a flat fee of $3,500 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto.

The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.
 FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.
 FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.
 FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract.

7.2 RENEWAL
In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino-Ontario, CA DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19 225
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BBK 72500.00001\32445060.1
AMENDMENT NO. 2 TO THE PROFESSIONAL CONSULTANT SERVICES

AGREEMENT FOR MARKETING SERVICES

BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE

1. Parties and Date.

This Amendment No 2 to the PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR MARKETING SERVICES is made and entered into as of this 24th day of August 2023, by and between the City of Palm Desert (“City”) and FG Creative, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. Recitals.

2.1 Agreement. The City and FG Creative have entered into an agreement entitled “Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide Marketing Services.

2.2 Amendment. The City and FG Creative entered into that Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023.

2.3 Amendment. The City and FG Creative desire to amend the Agreement to establish compensation for the second year of the contract. The Parties have heretofore entered into that Amendment No. 1 dated May 11, 2023.

2.4 Amendment Authority. This Amendment No. 2 is authorized pursuant to Section

3.9 (N) Amendment; Modification of the Agreement.

3. Terms.

3.1 3.6.A Compensation is hereby amended in its entirety to read as follows:

Consultant 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 Two Hundred Fifty Thousand Dollars ($250,000) without the written approval of the City Council or City Manager, as applicable.

3.2 “Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto and incorporated herein by reference.

3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 227
Contract No. C43370

BBK 72500.00001\32445060.1
they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2.

3.5 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.6 Counterparts. This Amendment No. 2 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]
DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 228
Contract No. C43370

BBK 72500.00001\32445060.1
SIGNATURE PAGE FOR AMENDMENT NO. 2 TO THE PROFESSIONAL CONSULTANT

SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF

PALM DESERT AND FG CREATIVE
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 2 to the Professional Consultant Services Agreement for Marketing Services as of the day and year first above written.

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Best Best & Krieger LLP
City Attorney

FG CREATIVE, A CORPORATION
By:

Its: CEO
Printed Name: Stephanie Greene
By:

Its: CFO
Printed Name: Stephanie Greene
QC: MN
Insurance:
_____
Initial Review
_____
Final Approval
DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 229
Contract No. C43370

BBK 72500.00001\32445060.1

7. EXHIBIT “C”

7.1 COMPENSATION
 The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the CITY's fiscal year budget for the period of July 1, 2023 - June 30, 2024, at $250,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:
 The CITY will pay FG CREATIVE a flat fee of $3,250 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.
 FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.
 FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.
 FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract.

7.2 RENEWAL
In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San BernardinoOntario, CA.

DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 230
Contract No. C43370

BBK 72500.00001\32445060.1
AMENDMENT NO. 3 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT, C43370 FOR MARKETING SERVICES BETWEEN THE CITY OF PALM

DESERT AND FG CREATIVE

1. Parties and Date.

This Amendment No. 3 to the made and entered into as of this 28th day of March 2024, by and between the City of Palm Desert (“City”) and FG CREATIVE, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor").

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

2. Recitals.

2.1 Agreement. The City and FG Creative have entered into an agreement entitled “Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide Marketing Services.

2.2 Amendment. The City and FG Creative entered into that Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. The Parties have heretofore entered into Amendment No. 1 dated May 11, 2023

2.3 Amendment. The City and FG Creative entered into Amendment 2. to establish compensation for the second year of the contract, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 2 dated August 24, 2023.

2.4 Amendment. The City and FG Creative desire to amend the Agreement to increase compensation for second year of contract, July 1, 2023 through June 30, 2024.

2.5 Amendment Authority. This Amendment No. 3 is authorized pursuant to Section

3.9(N) Amendment; Modification of the Agreement.

3. Terms.

3.1 Section 3.6.A Compensation. Section 3.6.A of the Agreement is hereby amended in its entirety to read as follows:
"NOW, THEREFORE, the Parties agree to amend the
Contract as follows:"
Section 3.6.A Compensation shall be amended to read: “Consultant 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 Two Hundred Sixty-Five Thousand Dollars ($265,000.00) without written approval of the City Council or City Manager, as applicable.”
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BBK 72500.00001\32445060.1

3.2 “Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto and incorporated herein by reference.

3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 3, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 3. From and after the date of this Amendment No. 3, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 3.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 3.

3.5 Severability. If any portion of this Amendment No. 3 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.6 Counterparts. This Amendment No. 3 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. C43370

BBK 72500.00001\32445060.1
SIGNATURE PAGE FOR AMENDMENT NO. 3 TO THE PROFESSIONAL CONSULTANT

SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF

PALM DESERT AND FG CREATIVE
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 3 to the Professional Consultant Services Agreement for Marketing Services as of the day and year first above written.

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
City Attorney
FG CREATIVE, a Corporation
By:

Its: CEO
Printed Name:

By:

Its: CFO
Printed Name:

QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
233
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BBK 72500.00001\32445060.1
AMENDMENT NO. 4 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT, C43370 FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG

CREATIVE

1. Parties and Date.

This Amendment No. 4 to the made and entered into as of this 11th day of July 2024, by and between the City of Palm Desert (“City”) and FG CREATIVE, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. Recitals.

2.1 Agreement. The City and FG Creative have entered into an agreement entitled “Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide Marketing Services.

2.2 Amendment. The City and FG Creative entered into Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. The Parties have heretofore entered into Amendment No. 1 dated May 11, 2023

2.3 Amendment. The City and FG Creative entered into Amendment No. 2 to establish compensation for the second year of the contract, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 2 dated August 24, 2023.

2.4 Amendment. The City and FG Creative entered into Amendment No. 3 to increase compensation for the period of July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 3 dated March 11, 2024.

2.5 Amendment. The City and FG Creative desire to amend the Agreement to establish compensation for the third year of the contract, July 1, 2024 through June 30, 2025.

2.6 Amendment Authority. This Amendment No. 4 is authorized pursuant to Section

3.9 (N) Amendment; Modification of the Agreement.

3. Terms.

3.1 3.6.A Compensation is hereby amended in its entirety to read as follows:

Consultant 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 Two Hundred Seventy-Five Thousand Dollars ($275,000) without the written approval of the City Council or City Manager, as applicable.

3.2 “Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto and incorporated herein by reference.

3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 4, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 4. From and after the date of this Amendment No. 4, 235
Contract No. ___________

BBK 72500.00001\32445060.1
whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 4.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 4.

3.5 Severability. If any portion of this Amendment No. 4 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.6 Counterparts. This Amendment No. 4 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]
236
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BBK 72500.00001\32445060.1
SIGNATURE PAGE FOR AMENDMENT NO. 4 TO THE PROFESSIONAL CONSULTANT

SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF

PALM DESERT AND FG CREATIVE
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 4 to the Professional Consultant Services Agreement for Marketing Services as of the day and year first above written.

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
City Attorney
FG CREATIVE, a Corporation
By:

Stephanie Greene
CEO
By:

Stephanie Greene
CEO
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
237
Contract No. ___________

BBK 72500.00001\32445060.1

7. EXHIBIT “C”

7.1 COMPENSATION
The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the CITY's fiscal year budget for the period of July 1, 2024 - June 30, 2025, at $275,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:
• The CITY will pay FG CREATIVE a flat fee of $3,350 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.
• FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.
• FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.
• FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract.

Fees $ 44,250
Branding $ 43,500
Advertising $ 104,400
Merchant Support $ 40,050
Community
Partnerships $ 3,800
Activations/Events $ 39,000
$ 275,000

7.2 RENEWAL
In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino Ontario, CA.
238
Contract No. C43370

Revised 01-2024
BBK 72500.00001\32445060.1
AMENDMENT NO. 5 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT, C43370 FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG

CREATIVE

1. Parties and Date.

This Amendment No. 5 to the made and entered into as of this 11th day of March 2025, by and between the City of Palm Desert (“City”) and FG CREATIVE, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor").

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

2. Recitals.

2.1 Agreement. The City and FG Creative have entered into an agreement entitled “Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide Marketing Services.

2.2 Amendment. The City and FG Creative entered into Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. The Parties have heretofore entered into Amendment No. 1 dated May 11, 2023.

2.3 Amendment. The City and FG Creative entered into Amendment No. 2 to establish compensation for the second year of the contract, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 2 dated August 24, 2023.

2.4 Amendment. The City and FG Creative entered into Amendment No. 3 to increase compensation for the period of, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 3 dated March 11, 2024.

2.5 Amendment. The City and FG Creative entered into Amendment No. 4 to establish compensation for the third year of the contract, July 1, 2024 through June 30, 2025.

2.6 Amendment. The City and FG Creative wish to amend the Agreement to increase the total compensation in recognition of expanded services to be provided during the remainder of the Agreement’s third term, covering the period from July 1, 2024, through June 30, 2025.

2.7 Amendment Authority. This Amendment No. 5 is authorized pursuant to Section

3.9 (N) Amendment; Modification of the Agreement.

3. Terms.

3.1 3.6.A Compensation is hereby amended in its entirety to read as follows:

Consultant 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 Twenty-Five Thousand Dollars and no cents ($325,000) for fiscal year 2024-25 without the written approval of the City Council or City Manager, as applicable.

3.2 Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto and incorporated herein by reference.

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BBK 72500.00001\32445060.1

3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 5, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 5. From and after the date of this Amendment No. 5, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 5.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 5.

3.5 Severability. If any portion of this Amendment No. 5 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.6 Counterparts. This Amendment No. 5 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. C43370

Revised 01-2024
BBK 72500.00001\32445060.1
SIGNATURE PAGE FOR AMENDMENT NO. 5 TO HE PROFESSIONAL CONSULTANT

SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF

PALM DESERT AND FG CREATIVE
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 5 to the Professional Consultant Services Agreement for Marketing Services as of the day and year first above written.

CITY OF PALM DESERT
By:

Chris Escobedo
Interim City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
City Attorney

FG CREATIVE, A LIMITED LIABILITY

COMPANY
By:

Stephanie Greene
CEO and CFO
City Clerk QC: MN
Contract QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
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Revised 01-2024
BBK 72500.00001\32445060.1

7. EXHIBIT “C”

7.1 COMPENSATION
The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the CITY's fiscal year budget for the period of July 1, 2024 - June 30, 2025, at $325,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:
 The CITY will pay FG CREATIVE a flat fee of $3,350 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.
 FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.
 FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.
 FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract.

Item Amount
Palm Springs Life Print Ads $ 8,790
Advertising Support for Art Walk $ 10,300
Desert Plein Air Festival Sponsorship $ 5,000
Thermal Indy Car Event Program Ad $ 3,000
Desert X Program Ad $ 3,500
Bandwango Program Activation $ 15,000
Contingency Budget $ 4,410
Total $ 50,000
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Revised 01-2024
BBK 72500.00001\32445060.1

7.2 RENEWAL
In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino Ontario, CA.

Docusign Envelope ID: B3CDAF28-EC04-4E03-96E2-1E20D1E0D922 243
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Contract No. C43370
AMENDMENT NO. 6 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY

OF PALM DESERT AND FG CREATIVE INC
This Amendment No.6 (“Amendment”) to the is made and entered into as of this 1st day of JULY, 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 FG CREATIVE INC, a Corporation with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, California, 92241 Vendor. City and Vendor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

The Parties entered into an agreement titled PROFESSIONAL SERVICES AGREEMENT.

Dated 6/23/2022 (“Agreement”).

Amendment Authority. This Amendment is authorized pursuant to Section N of the Agreement.

3. Terms.

Amendment. The Agreement is hereby amended as follows:

Section 3.2.A
Term.

The term of this agreement shll be from July 1, 2022 to June 30, 2026, unless earlier terminated as provided herein. The City should have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more that (1) additional oneyear terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

Section 3.6.A
Compensation.

Consultant 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 Two Hundred Fifty Thousand Dollars ($250,000) for fiscal Year 2025- 2026 without the written approval of the City Council or City Manager, as applicable.

Continuing Effect of Agreement. Except as amended by this Amendment, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment.

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

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

Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[Signatures on Following Page]
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Contract No. C43370

SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE

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

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

CITY OF PALM DESERT
By:

Chris Escobedo
Interim City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
City Attorney
FG CREATIVE INC, a Corporation
By:

Stephanie Greene
CEO and CFO
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Contract No. C43370
1 Rev 09-25
72500.00001\44340560.1
AMENDMENT NO. 7 TO THE PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT

AND FG CREATIVE INC

1. Parties and Date.

This Amendment No. 7 (“Amendment”) to the Professional Services Agreement, Contract No. C43370, is made and entered into on February 9, 2026, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, 92260-2578 (“City”) and FG CREATIVE INC, a S Corporation, with its principal place of business at 73-585 El Paseo, Suite A-1126, Palm Desert, CA 92260 (“Consultant”).

City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

1.1 City Council Approval. On February 26, 2026, City Council approved the award of this Amendment to Vendor named above.

2. Recitals.

2.1 Agreement. The City and Consultant entered into a Professional Services Agreement (“Agreement”) on June 23, 2022, with a term of July 1, 2022 to June 30, 2025, in a compensation amount of $250,000, for the purpose of retaining the services of Consultant to provide “Marketing Services on the El Paseo Parking and Business Improvement District”.

2.2 Background.

2.2.1 Amendment No.1. The parties entered into Amendment No. 1, on May 11, 2023, for the purpose of updating Exhibit “C”, and increase compensation.

2.2.2 Amendment No. 2. The parties entered into Amendment No. 2, on August 24, 2023, for the purpose of updating Exhibit “C” and compensation language for FY 2023/24.

2.2.3 Amendment No. 3. The parties previously entered into Amendment No. 3, on March 11, 2024, for the purpose of
updating Exhibit “C” and increase compensation.

2.2.4 Amendment No. 4. The parties previously entered into Amendment No. 4, on July 11, 2024, for the purpose of
updating Exhibit “C” and increase compensation.

2.2.5 Amendment No. 5. The parties previously entered into Amendment No. 5, on March 11, 2025, for the purpose of
updating Exhibit “C” and increase compensation.

2.2.6 Amendment No. 6. The parties previously entered into Amendment No. 6, on July 1, 2025, for the purpose of,
extending the term, updating Exhibit “C”, and increase
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72500.00001\44340560.1
compensation.

2.3 Amendment Authority. This Amendment is authorized pursuant to Section

3.6.14 of the Agreement.

2.4 The purpose of this Amendment No. 7 is to update Exhibit “C” and increase the total compensation for FY period of July 1, 2025, through June 30, 2026.

3. Terms. The Agreement is hereby amended as follows:

Section 3.6.A Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in updated Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Three Hundred Twenty-Five Thousand and 00/100 Dollars ($325,000.00) per fiscal year without the written approval of the City Council or City Manager, as applicable.

3.1 Continuing Effect of Agreement. Except as amended by this Amendment No. 7, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 7. From and after the date of this Amendment No. 7, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 7.

3.2 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 7.

3.4 Severability. If any portion of this Amendment No. 7 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
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Contract No. C43370
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72500.00001\44340560.1
SIGNATURE PAGE FOR AMENDMENT NO. 7

TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM

DESERT AND FG CREATIVE INC

CITY OF PALM DESERT

Chris Escobedo
City Manager
Attest:

Anthony J. Mejia
City Clerk
Approved to form by:
____________________________
Isra Shah
City Attorney
FG CREATIVE INC., AN S

CORPORATION
____________________________
Stephanie Greene
CEO, CFO, and Secretary
Office Use:

Quality Check Insurance Review
City Clerk Contracts Initial Final
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Contract No. C43370
4 Rev 09-25
72500.00001\44340560.1
EXHIBIT “C”

COMPENSATION
The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the CITY's fiscal year budget for the period of July 1, 2025 - June 30, 2026, in an amount not to exceed Three Hundred Twenty-Five Thousand and 00/100 Dollars ($325,000.00). The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services.

Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:
• The CITY will pay FG CREATIVE a flat fee of $3,350 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.
• FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.
• FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses.

Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.
• FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract.

In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino Ontario, CA.

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AMENDMENT NO. 8 TO THE PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT
AND FG CREATIVE, INC.

1. Parties and Date.

This Amendment No. 8 (“Amendment No. 8”) to the Professional Services Agreement, Contract No. C43370, is made and entered into on July 1, 2026, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, 92260-2578 (“City”) and FG Creative, Inc., a S Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA, 92241 (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

1.1 City Council Approval. On June 25, 2026, City Council approved the award of this Amendment No. 8 to Consultant named above.

2. Recitals.

2.1 Agreement. The City and FG Creative, Inc., entered into a Professional Services Agreement (“Agreement”) on June 23, 2022, for the purpose of retaining the services of FG Creative for Marketing and Creative Services for the El Paseo Parking & Business Improvement District (“Project”).

2.2 Background. The parties previously entered into a previous Amendment No. 1, on May 11, 2023 to increase compensation.

2.3 Background. The parties previously entered into a previous Amendment No. 2, on August 24, 2023, to amend compensation.

2.4 Background. The parties previously entered into a previous Amendment No. 3, on March 11, 2024, to increase compensation and extend the term through June 30, 2024.

2.5 Background. The parties previously entered into a previous Amendment No. 4, on July 11, 2024 to extend term to June 30, 2025.

2.6 Background. The parties previously entered into a previous Amendment No. 5, on March 11, 2025 to increase compensation.

2.7 Background. The parties previously entered into a previous Amendment No. 6, on July 1, 2025 to amend compensation and extend term through June 30, 2026

2.8 Background. The parties previously entered into a previous Amendment No. 251
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7, on February 9, 2026 to increase compensation.

2.9 Amendment Authority. This Amendment is authorized pursuant to Section

3.6.14 of the Agreement.

2.10 The purpose of this Amendment No. 8 is to extend the term through June 30, 2027, and increase compensation.

3. Terms. The Agreement is hereby amended as follows:

Section 3.2.A Term. The term of this agreement shall be from July 1, 2022 to June 30, 2027, unless earlier terminated as
provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any
other established schedules and deadlines.

Section 3.6.A Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services
rendered under this Agreement at the rates set forth in Exhibit “C-1” attached hereto and incorporated herein by reference. The total compensation shall not exceed
THREE HUNDRED FIFTY THOUSAND AND 00/100
DOLLARS ($350,000.00) for Fiscal Year 2026/27
without the written approval of the City Council or City Manager, as applicable.

3.1 Continuing Effect of Agreement. Except as amended by this Amendment No. 8, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 8. From and after the date of this Amendment No. 8, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 8.

3.2 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 8.

3.3 Severability. If any portion of this Amendment No. 8 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR AMENDMENT NO. 8

TO PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF PALM DESERT
AND FG CREATIVE, INC.

CITY OF PALM DESERT

Chris Escobedo
City Manager
Attest:

Anthony J. Mejia
City Clerk
Approved to form by:
____________________________
Isra Shah
City Attorney
FG CREATIVE, INC., AN S

CORPORATION

Stephanie Greene
CEO and CFO
Office Use:

Quality Check Insurance Review
City Clerk Contracts Initial Final
253
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EXHIBIT “C-1” Rev 04-26
72500.00001\44340560.1
EXHIBIT “C-1”

COMPENSATION
The City's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the City's fiscal year budget for the period of July 1, 2026 - June 30, 2027, at $350,000.00. The City reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services.

Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG Creative, the City or its designee, after conferring with FG Creative, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the City shall compensate and reimburse FG Creative as follows:
• The City will pay FG Creative a flat fee of $3,750.00 per month to cover advertising services in accordance with the proposal presented by FG Creative as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.
• FG Creative will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the City. FG Creative will not markup billings or receive commissions.
• FG Creative shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses.

Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.
• FG Creative shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract.

Fees $ 45,000
Branding $ 56,000
Advertising $ 154,900
Merchant Support $ 37,500
Community Partnerships $ 5,700
Activations/Events $ 50,900
$350,000
In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates 254
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set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino Ontario, CA.
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City of Palm Desert Staff Report
Meeting Date: June 25, 2025
Prepared By: Carlos Flores, AICP, Deputy Director of Development Services Department: Development Services
Subject: Authorize Amendment No. 2 to Contract No. C47890 with Goebel Partners, LLC, Increasing the Contract Amount, Update Scope, and Extend the Contract Term through June 30, 2027 for Continued Work on the Unified Development Code Recommendation

1. Authorize Amendment No.2 to Contract No. C47890 with Goebel Partners, LLC, increasing the contract amount by $142,716 for a total not to exceed contract amount of $570,796, extending the contract term through June 30, 2027, and allowing for administrative extensions if necessary.

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

3. Authorize the City Manager or designee to execute the amendment and all documents necessary to effectuate this agreement pursuant to Section 3.30.170 of the Palm Desert Municipal Code.

Executive Summary
The proposed action authorizes Amendment No. 2 to Contract No. C47890 with Goebel Partners, LLC ,(Consultant) for continued work on the City of Palm Desert's Unified Development Code (UDC) Update. The amendment would increase the contract by $142,716 for a total contract amount not to exceed $570,796 and extend the contract term through June 30, 2027, with administrative extensions permitted if necessary.

As the UDC project has progressed into detailed drafting, staff and the Consultant have identified an opportunity to strengthen the overall code update by leveraging the existing work program to conduct a more targeted Land Use Analysis. This expanded effort builds on stakeholder input, Council Goals and Commission discussions, and emerging data sources to provide a more robust analytical foundation for refining zoning districts and land use regulations. The Land Use Analysis is intended to enhance the clarity, consistency, and sustainability of the UDC by ensuring that proposed zoning and use standards are grounded in current conditions and aligned with the City’s long-range policy objectives.

Background
On June 27, 2024, the City Council awarded Contract No. C47890 to Clarion Associates of Denver, Colorado, in an amount not to exceed $428,080 to create a Unified Development Code for the City of Palm Desert. The UDC project is intended to integrate and modernize various existing City ordinances relating to zoning (Title 25), subdivision (Title 26), grading regulations (Title 27), and related topics including landscaping and outdoor lighting, consistent with the City’s adopted plans and long-term development goals. On June 1, 2025, the City and 257

Clarion Associates entered into an Assignment and Consent to Assignment Agreement reassigning Contract No. C47890 to Goebel Partners, LLC, a Colorado limited liability company. Goebel Partners has continued work on the UDC project as the successor consultant, with the same Consultant staff remaining on the project. Below is a timeline of the work that has commenced on the project:

Table 1 – Project Drafting Timeline
Date Milestone/Action
September 2024 –
February 2025
The City and Consultant conducted initial outreach for the UDC project, including stakeholder meetings with City staff, the Architectural Review Commission, Planning Commission, and members of the development community, as well as an online survey.

April 10, 2025 City Council received a study session update on the UDC and reviewed the Development Regulations Assessment Report.

June 18, 2025 The Ad Hoc UDC Subcommittee, comprised of Councilmember Harnik and Mayor Pro Tem Pradetto, reviewed the Development Regulations Assessment Report and directed the Consultant to prepare the Administration and Procedures Chapter first.

October 30, 2025 The Ad Hoc UDC Subcommittee reviewed the draft Administration and Procedures Chapter.

November 13, 2025 City Council received a study session update on the UDC and reviewed the draft Administration and Procedures Chapter.

As drafting of the UDC’s Zoning Districts and Land Uses section advanced, City staff and the Consultant identified an opportunity to strengthen the overall code update by incorporating a more structured and current review of existing and anticipated future land uses across the City.

Ongoing discussions from November 2025 through May 2026 with City staff, Commissioners, and Councilmembers have raised questions regarding how proposed code updates can best implement the City’s General Plan, downtown objectives, economic development goals, and Council goals.

Additionally, the City’s business licensing and compliance review efforts have generated more detailed information on existing land use patterns than was previously available, further supporting the value of a more consistent analytical framework to inform zoning district refinements. Together, these factors support inclusion of a targeted Land Use Analysis as part of the ongoing UDC effort.

Analysis
The Land Use Analysis will bring together key technical information and stakeholder input to help refine the UDC’s land use and zoning framework. The Consultant will review existing 258

conditions using City policies, business licensing and compliance data, prior outreach results, and input from the Commission, Subcommittee, and stakeholders. The resulting work product will be a Land Use Analysis Report that identifies patterns, clarifies functional relationships between land use categories and zoning districts, and supports development of more consistent and implementable use regulations. This report will directly inform subsequent drafting of zoning districts, use definitions, and related development standards within the UDC.

Goebel Partners has submitted a proposed scope of work and cost proposal in the amount of $142,716 to complete a Land Use Analysis as a new component of the UDC project. The Land Use Analysis is structured around three focus areas and two phases of work.

Focus Areas
The analysis will address:
(1) Plan and policy effectiveness and implementation, examining whether current land use and zoning regulations effectively implement the General Plan and City Center Area Plan;
(2) Downtown Palm Desert land use and zoning districts, including a rethinking of downtown zoning districts, overlays, and use standards to create a more logical, efficient, and robust toolkit for downtown development; and (3) Planned Commercial Zoning Districts and non-residential zoning districts citywide, to improve consistency and effectiveness across the City’s zoning toolkit.

It is proposed to be completed in two phases:

Phase 1 – Information Gathering.

The Consultant will gather, organize, and analyze information from multiple sources: document review of relevant City and State policies; analysis of the City’s business license database and related datasets; targeted on-the-ground site visits to key areas; and engagement with City staff and stakeholder groups including the Palm Desert Chamber of Commerce, the El Paseo Business Improvement District, and landowners and business owners in key areas. Phase 1 deliverables will consist of organized information sets used to support Phase 2 analysis.

Phase 2 – Land Use Analysis Report.

The Consultant will synthesize Phase 1 findings into a Land Use Analysis Report, to be produced in three iterative drafts: a Staff Draft for internal review and consolidated written feedback; a Public Draft for broader stakeholder distribution and input; and a Final Draft incorporating consolidated public comments. The Report will propose changes to zoning district lineups, purpose statements, dimensional standards, use definitions, and use-specific standards to better reflect district function, General Plan goals, and community values. The final Report will directly inform further drafting of the Land Use and Zoning Districts portions of the UDC.

The estimated timeline to complete the Land Use Analysis is approximately six months, targeting completion around January 1, 2027. Staff is requesting that the contract term be extended through June 30, 2027, to accommodate completion of the Land Use Analysis and continued progress on the broader UDC update, with administrative extensions permitted if necessary to complete all remaining tasks.
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Environmental Review
This proposed action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2), 15060(c)(3) and 15378(b)(5). The proposed action involves an amendment to an existing contract with Goebel Partners, LLC, increasing the contract amount by $142,716 for a total not to exceed contract amount of $570,796, extending the contract term through June 30, 2027, and allowing for administrative extensions if necessary.

Pursuant to the proposed action, Goebel Partners, LLC will review existing conditions using City policies, business licensing and compliance data, prior outreach results, and input from the Commission, Subcommittee, and stakeholders to produce a detailed Land Use Analysis report. The action does not approve or implement any land use changes, zoning amendments, development standards, development entitlements, or physical construction. Rather, the action authorizes preparation of studies and recommendations that may be considered by the City at a future date. Any future discretionary action to amend or adopt provisions of the UDC will be subject to separate environmental review, as appropriate, at the time such action is considered.

This action consists solely of administrative and planning activities and will not result in a direct physical change or a reasonably foreseeable indirect physical change in the environment, it is not a project per State CEQA Guidelines sections 15060(c)(2), 15060(c)(3), and 15378(b)(5).

No further environmental review is required for this action.

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

Financial Impact
Description Amount
Original Contract $428,080
Amendment No. 2 (Land Use Analysis) $142,716
Total Not-to-exceed Contract Amount $570,796
Funds for this project are budgeted in the Community Development Professional Services Account No. 1104470-4300500 for Fiscal Year 2026/27. The proposed amendment would increase the contract amount by $142,716, resulting in a total not-to-exceed contract amount of $570,796.

Attachments

1. Amendment No. 2 to Contract No. C47890

2. Goebel Proposal
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Conflict of Interest Awareness Checklist
Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations.

1. Site-Specific Property Interest
Does this item involve a project site or other identifiable real property? ☐ Yes
☐ No
If yes, identify the project site:

Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).

2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☐ Yes
☐ No
If yes, identify the applicant(s), appellant(s), party, or participant(s):

Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 261
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AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT

AND GOEBEL PARTNERS

1. Parties and Date.

This Amendment No. 2 (“Amendment No. 2”) to the Professional Services Agreement, Contract No. C47890, is made and entered into on June 25, 2026, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, 92260-2578 (“City”) and Goebel Partners, a Limited Liability Company, with its principal place of business at 173 Marion, Denver, CO, 80218 (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

1.1 City Council Approval. On June 25, 2026, City Council approved the award of this Amendment to Consultant named above.

2. Recitals.

2.1 Agreement. The City and Clarion Associates entered into a Professional Services Agreement (“Agreement”) on June 27, 2024, for the purpose of retaining the services of Clarion Associates for Professional Services for Updating the Unified Development Code Project (“Project”).

2.2 Background. The parties previously entered into Amendment No. 1, on November 5, 2024 to replace Exhibit “C”.

2.3 Background. The parties previously entered into an Assignment and Consent to Assignment Agreement, on June 1, 2025 to re-assign the agreement from Clarion Associates to Goebel Partners, a Colorado limited liability company.

2.4 Amendment Authority. This Amendment is authorized pursuant to Section

3.6.14 of the Agreement.

2.5 The purpose of this Amendment No. 2 is to extend the term, update scope of services, and increase compensation.

3. Terms. The Agreement is hereby amended as follows:

Section 3.1.2 Term. The term of this Agreement shall be from June 27, 2024, to June 30, 2027, unless earlier terminated as
provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement for no more than two (2) additional one-year terms. Consultant shall complete the Services within the term of this Agreement 263
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and shall meet any other established schedules and
deadlines.

Section 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services
rendered under this Agreement at the rates set forth in Exhibit " C-1" attached hereto and incorporated herein by reference. The total compensation shall not exceed FIVE

HUNDRED SEVENTY THOUSAND AND SEVEN
HUNDRED AND NINETY-SIX AND 00/100 DOLLARS
($570,796.00) without written approval of the City Council or City Manager, as applicable
Exhibit “A-1” Exhibit “A-1” is hereby included as additional Scope of Services to supplement Exhibit “A” and is attached hereto and incorporated herein by reference.

3.1 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2.

3.2 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2.

3.3 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR AMENDMENT NO. 2

TO PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF PALM DESERT AND GOEBEL PARTNERS

CITY OF PALM DESERT

Chris Escobedo
City Manager
Attest:

Anthony J. Mejia
City Clerk
Approved to form by:
____________________________
Isra Shah
City Attorney

GOEBEL PARTNERS, A LIMITED

LIABILITY COMPANY

R Matthew Goebel
Manager
Office Use:

Quality Check Insurance Review
City Clerk Contracts Initial Final
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EXHIBIT “A-1

SCOPE OF SERVICES
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EXHIBIT “C-1”

COMPENSATION
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Palm Desert, CA Land Use Analysis Scope of Work | 1
City of Palm Desert: Land Use Analysis
Scope of Workand CostProposal
Background
During the drafting of the Zoning Districts and
Land Uses section of the City of Palm Desert’s
new Unified Development Code (UDC), City
staff noted that the code update project would
benefit from an updated review of existing and
anticipated future land uses in the City. This
need for comprehensive land use analysis and
direction is not new. There have been ongoing
City conversations and projects regarding how
code updates could best implement the City’s
General Plan, City Center Area Plan, and
reflect the goals of the community as a whole.

During discussions with the Consultant Team
led by Goebel Partners, it became clear that a
targeted Land Use Analysis effort would be a
valuable new tool to inform further drafting of
the Land Use and Zoning Districts portions of
the City’s UDC. This proposed scope of work
and budget are intended to provide that
analysis.

A six-month timeline is anticipated to
complete a Land Use Analysis Report,
assuming completion around January 1, 2027.

The prime consultant will be the same team
working on the code update: Goebel Partners,
LLC, with Magic Sidewalk, LLC, as
subcontractor. Additional subcontractors may
be identified with City approval.

Scope of Work
The Land Use Analysis will be structured as a
new component of the Unified Development
Code. There will be three scales of focus:

Plan/Policy Effectiveness and
Implementation
Based on staff’s insight on implementation
efforts in the past, the project team will pair
policy and code review with stakeholder and
staff input to analyze the effectiveness of
current Land Use and Zoning code at
implementing the goals set by the General
Plan, and how they could reflect a
more feasible and realistic vision, especially
for Downtown Palm Desert.

Downtown Palm Desert Land Use and
Zoning Districts
Re-thinking downtown zoning districts and
overlays and restructuring uses and use
standards to be more logical, more efficient,
and generally provide a more robust toolkit for
downtown development. This focus area will
require the most intensive analysis, and will
seek to answer questions such as:
• What land uses currently
exist downtown and how do
they compare to current zoning?
• How can downtown best be broken
up into specific district types with distinct
functions and conditions? How does this
differ from current zoning?
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Palm Desert, CA Land Use Analysis Scope of Work | 2
• What character or land uses should be
encouraged or discouraged within
downtown? How does this differ from
how things are now?
• How would tweaks to dimensional
standards within downtown districts best
fulfill the desires of the community and
vision set by the General Plan?
• How can downtown districts
better accomplish the
goals established by the General Plan
and expressed by community
stakeholders?
Planned Commercial Zoning Districts
According to staff, the City’s Planned
Commercial districts vary in their level of use
and usefulness, and can be inconsistent in
their scale and overall purpose. Analysis is
needed to inform how Planned Commercial
zoning districts can be made more sensible
and effective through the UDC update, and
will seek to answer the following questions:
• How do/have these
districts shaped commercial
development in Palm Desert?
• What land uses set this district type apart
from other non-residential districts?
• How can Planned Commercial
districts most effectively contribute to the
City’s zoning tool kit moving forward?
Non-Residential Zoning Districts Citywide
Staff expressed a general desire to “clean up”
Land Uses and their relevant standards for
non-residential districts city wide as part of
this analysis effort. Through a high-level
analysis of Land Use and Zoning regulations in
non-residential districts across the City, the
project team will seek to answer the following
questions:
• What distinct role does each district play
in guiding development in the City?
• How effective are the current
development and use standards at
achieving the district’s function, vision
set by the General Plan, and goals
communicated by stakeholders?
• The ultimate goal of this Land Use
Analysis is to inform the development of a
more effective zoning toolbox and lay the
groundwork for future Land Use Map
updates, Objective Design Standards,
and other necessary City efforts to enable
implementation of the General Plan.

The following sections outline the Land Use
Analysis project tasks in detail.

PHASE 1. INFORMATION

GATHERING
Objectives
The Consultant Team will collaborate with City
staff to gather, organize, and process
information inputs for the Land Use Analysis.

The sources of this information will be plan,
policy, and law documents related to Land
Use and Zoning; business license data and
other related datasets from the City; on-theground observation; and stakeholder engagement.

1.1.Document Review
The Consultant Team will build off of previous
work done during the Code Assessment to
comprehensively review relevant City and
State laws and policies that impact Land Use
and efforts to implement the City’s General
Plan. These sources will include but are not
limited to:
• City of Palm Desert General Plan,
specifically Ch. 3 Land Use & Community
Character, Ch. 10 City Center Area Plan,
and Ch. 12 Work Plan
• Specific Plans related to Planned
Commercial districts
• Existing development code and current
draft code updates
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Palm Desert, CA Land Use Analysis Scope of Work | 3
• El Paseo Design Standards and other
relevant standards shaping development
• Public parking easements
and lot standards
• State law impacting development,
especially in key downtown corridors
(Highway 74 scenic highway standards,
SB 330, etc.)

1.2.BusinessLicense and Similar Datasets
An essential dataset for the Land Use Analysis
will be the City’s business license database.

This information provides detailed land use
information tied spatially to specific
addresses. The City is currently working on an
update and verification process for this
information in the Downtown area, ensuring
the dataset is up-to-date and accurate. While
working with City staff additional datasets may
be used for further analysis and/or graphics.

The processing of such data for analysis,
mapping, or illustrative/storytelling materials
for stakeholder engagement will be a
collaborative effort between the City’s GIS
staff and the Consultant Team.

1.3.On-the-Ground Observation
The consultant team will conduct targeted inperson site visits to key areas in the City such as downtown corridors and developments
that represent planned commercial districts.

This in-person observation will give the
Consultant Team a more intimate
understanding of these focus areas, allow
them to observe land use and occupancy, as
well as consider implications of how nuanced
code updates can impact development and
further accomplish the community’s
goals. This in-situ work will also create
opportunities for informal stakeholder
engagement through conversations with
community members, especially downtown.

1.4.Stakeholder Engagement
The Consultant Team will work with City staff
to plan and execute engagement of key
stakeholders whose experience and
perspectives are necessary to inform the
direction of Land Use and Zoning updates.

These stakeholders will be comprised of two
groups:

City Staff
The consultant team will work with Planning
staff to identify and engage with key voices
and sources of information within the teams at
City Hall who are intimately involved with
development and serve the Palm Desert
community every day. This engagement will
take the form of meetings, interviews, and/or
surveys aimed at gathering detailed feedback
related to Downtown, as well as more general
feedback about land use issues in Palm
Desert as a whole.

Stakeholder Groups
With Staff’s guidance and connections, the
consultant team will engage key stakeholder
groups that specifically represent the
Downtown Palm Desert community and those
who shape it, such as:
• Palm Desert Chamber of Commerce
• El Paseo Business Improvement District
• Landowners and business owners in key
areas and corridors
Engagement will be a collaborative effort
between City staff and the consultant
team, taking the form of interviews, holding
meetings with stakeholder groups or attending
regularly scheduled stakeholder meetings,
engaging stakeholder networks for online
surveys and/or other asynchronous public
input methods, and directly
engaging stakeholders while performing onthe-ground observation.

Deliverables
The primary deliverables for Phase 1 will be
organized sets of information used during the
analysis performed in Phase 2.
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Palm Desert, CA Land Use Analysis Scope of Work | 4
City Staff Responsibilities
The information-gathering phase will be a
collaborative process between staff and the
consultant team. Above everything, the
consultant team values staff input and insight
as a crucial information source to inform and
contribute to the Land Use Analysis. The
consultant team will rely heavily
on staff’s relationships within City
departments and the greater community
to identify and engage
stakeholders, procure information, and
coordinate opportunities for engagement. The
consultant team will expect staff’s input and
review of engagement communications and
survey/interview questions. City staff will also
handle data collection and verification tasks,
as well as GIS and data
processing, allowing the consultant team to
focus on targeted site visits and stakeholder
engagement.

PHASE 2. LAND USE ANALYSIS
REPORT
Objectives
The Consultant Team will synthesize and
organize information gathered during Phase 1
and use it to answer questions related to each
focus area, such as:

2.1.Land Use Analysis Report – Staff Draft
The Consultant Team will create an initial
“Staff Draft” version of the Land Use Analysis
Report for internal staff review only. The report
will communicate findings and observations
from analysis and stakeholder engagements,
as well as propose implications for Land Use
and Zoning code updates. The proposed
updates will fall into a few categories:

Districts
• Propose changes to the zoning district
lineup
• Clear purpose statements that articulate
the unique function and goal of each
district
• Articulate a more realistic
and feasible implementation of the City’s
vision for Downtown
• Propose changes to dimensional and
district-specific standards to reflect
district function and implementation of
the General Plan.

Uses
• How do Uses filter into the updated
district list?
• How can Use definitions be more
organized, clarified, and streamlined in
the UDC?
• Propose changes to uses and usespecific standards to best reflect district purpose and community goals
• Streamline and simplify uses while
preserving nuance specific to Palm
Desert
• Highlight nonconformities and propose
solutions
Deliverables
Land Use Analysis Report – Staff Draft
City Staff Responsibilities
This preliminary document will provide
City Staff with an opportunity to review and
respond to the findings and suggestions
presented by the consultant team. Staff will
provide one set of consolidated written
feedback.
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Palm Desert, CA Land Use Analysis Scope of Work | 5

2.2.Land Use Analysis Report -
PublicDraft
Based on one round of consolidated written
comments from staff, the consultant team will
deliver a revised public draft of the Land Use
Analysis Report for wider distribution and
feedback. The main purpose of this phase of
the Land Use Analysis is to get feedback and
consensus on the findings and proposals
presented in the Report before applying them
to subsequent drafts of the Unified
Development Code.

Deliverables
Land Use Analysis Report – Public Draft
City Staff Responsibilities
The consultant team will work with staff
to identify which entities need to be engaged
for a final round of feedback on the Report.

Staff will coordinate with these stakeholders
to gather and consolidate their feedback and
transmit it back to the Consultant team.

2.3.Land Use Analysis Report – Final
Draft
Based on one round of consolidated written
comments gathered from the Public Draft, the
consultant team will deliver a revised Final
Draft of the Land Use Analysis Report. This will
final product of the Land Use Analysis will
inform ongoing updates to the UDC.

Deliverables
Land Use Analysis Report – Final Draft
Proposed Timeline
The project team estimates the Land Use
Analysis will take approximately six months to
complete. While the scope of the Land Use
Analysis is relatively limited and mostly
targeted on the Downtown area, much of the
time frame will rely on the consultant team
and staff’s ability to coordinate sources of
information, schedule engagement with a
range of stakeholders, and allow for ample
time for review of the Staff and Public drafts.

Cost Proposal
The baseline cost to complete this Land Use
Analysis is set forth in the table on the
following page. All costs are preliminary and
subject to discussion and negotiation.
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Palm Desert, CA Land Use Analysis
Goebel Wencel Graphics TOTAL
Hourly Rate $290 $150 $135
Phase 1: Information Gathering and Key Inputs

1.1 Document Review 8 36 $7,720

1.2 Business License and Similar Data Processing 8 36 $7,720

1.3 On-the-Ground Observation (Incl. trip) 30 30 $13,200

1.4 Stakeholder Engagement (Incl. trip) 24 30 20 $14,160

1.5 Project Management 24 20 $9,960
Hours 94 152 20 266
Labor Costs $27,260 $22,800 $2,700 $52,760
Number of Trips 1 1
Trip Costs $1,500 $1,300 $2,800
Task Total $55,560

2.1 Land Use Analysis Report - Staff Draft 30 120 40 $32,100

2.2 Land Use Analysis Report - Public Draft 24 60 20 $18,660

2.3 Land Use Analysis Report - Final Draft (Incl. trip) 32 40 16 $17,440

2.4 Project Management 24 16 $9,360
Hours 110 236 76 422
Labor Costs $31,900 $35,400 $10,260 $77,560
Number of Trips 1 1
Trip Costs $1,500 $1,300 $2,800
Task Total $80,360
TOTAL $135,920
TOTAL + 5% CONTINGENCY $142,716
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City of Palm Desert Staff Report
Meeting Date: June 25, 2026
Prepared By: Chris Gerry, Senior Project Manager
Department: Public Works
Subject: Award Construction Contract to Bear Electrical Solutions, LLC, for the Traffic Signal Modifications and Hardware Upgrades - Phase III (Project No. MTS00005) Recommendation

1. Award a construction contract to Bear Electrical Solutions, LLC, for the Traffic Signal Modifications and Hardware Upgrades - Phase III in the amount of $423,000, plus an $80,000 contingency for unforeseen expenses.

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

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

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

5. Find that the Proposed Action is Categorically Exempt from CEQA Pursuant to CEQA Guidelines Section 15301, Class 1, Existing Facilities.

Executive Summary
The Traffic Signal Modifications and Hardware Upgrades (Phase III) project (Project) will upgrade traffic signal infrastructure at 17 signalized intersections. The Project includes replacing aging traffic signal cabinets and associated equipment, installing cabinet base extensions, replacing conductors and service equipment, and relocating and protecting existing fiber-optic facilities.

Staff is requesting City Council award a construction contract to Bear Electrical Solutions, LLC, in the amount of $423,000 for completion of the Project. Bear Electrical Solutions, LLC, submitted the lowest responsive and responsible bid and was determined to be qualified to perform the work. Award of the contract will allow the City to continue its ongoing traffic signal modernization efforts and improve the reliability of critical transportation infrastructure.

Background
The City maintains 100 signalized intersections throughout Palm Desert. Each intersection includes a traffic signal controller cabinet that houses the signal controller, communications equipment, power service equipment, and other critical operational components necessary for the safe and efficient operation of the traffic signal system.

Many of the City's traffic signal cabinets and associated hardware have reached the end of their useful service lives and require replacement to maintain reliable operation. To address 275

this need, the City established a multi-phase program to modernize aging traffic signal infrastructure throughout Palm Desert.

Phase I and Phase II previously upgraded a total of 18 signalized intersections, and Phase III will continue the program by replacing aging equipment and upgrading traffic signal infrastructure at 17 additional intersections. These locations are listed in Attachment 4. Phase IV will be proposed for design in Fiscal Year 2027/28.

The Project includes replacing traffic signal cabinets, installing cabinet base extensions, replacing conductors and service equipment, relocating and protecting existing fiber-optic facilities, and related improvements necessary to provide complete and operational traffic signal systems.

The project was advertised through the City’s bid portal, OpenGov, as Project ID 2026-IFB017. Bids were received and publicly opened on May 21, 2026. The City received nine bids for the Project, as summarized below:

Contractor Location Total Bid
Bear Electrical Solutions LLC Alviso, CA $423,000.00
Yunex LLC Austin, TX $472,200.00
Sierra Pacific Electrical Contracting Jurupa Valley, CA $476,233.00 Elecnor Belco Electric, Inc. Chino, CA $494,976.00
California Professional Engineering, Inc. La Puente, CA $606,414.00 Alfaro Communications Construction, Inc. Compton, CA $629,546.08 Crosstown Electrical & Data, Inc. Irwindale, CA $690,581.00 DBX, Inc. Temecula, CA $783,790.00
Calpromax Engineering, Inc. Placentia, CA $796,973.00
Analysis
Bear Electrical Solutions, LLC, submitted the lowest responsive and responsible bid in the amount of $423,000. Staff reviewed the bid documents and determined that the contractor meets all requirements of the bid specifications and contract documents. References confirmed the contractor has successfully completed projects of similar scope and complexity for public agencies throughout California.

Staff recommends establishing an $80,000 contingency to address unforeseen field conditions that may be encountered during construction, including conflicts with existing underground utilities, fiber-optic facilities, and other infrastructure not fully identified during design.

Environmental Review
The proposed action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15301 - Class 1 Existing Facilities and Section 15302 - Class 2 Replacement or Reconstruction in that the Project consists of repair, maintenance and replacement of existing facilities that involves negligible or no expansion of existing use.
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The Class 1 exemption applies to the repair, maintenance or minor alteration of existing public structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Examples of Class 1 exemptions include repair and maintenance to existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities. The Project consists of the repair, maintenance, and minor alteration of existing traffic signal infrastructure, including replacement of traffic signal cabinets, conductors, service equipment, and associated facilities within existing public rights-of-way. Further, the Project involves negligible or no expansion of existing use and will maintain the existing function and capacity of the traffic signal system. Therefore, the Project fits within a Class 1 exemption.

The Class 2 exemption applies to the replacement of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Examples of Class 2 exemptions include replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. As stated above, the Project includes replacing aging traffic signal cabinets and associated equipment, installing cabinet base extensions, replacing conductors and service equipment, and relocating and protecting existing fiber-optic facilities within the same area. Further, these Project activities will not result in an expansion of former use. Therefore, the Project also fits within a Class 2 exemption.

The City has determined that none of the exceptions to the categorical exemption set forth in CEQA Guidelines Section 15300.2 apply. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. There are no unusual circumstances resulting in a significant impact on the environment. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway. The project is not located on a hazardous waste site or any other site included on a list compiled pursuant to Government Code section 65962.5. The Project will not result in significant adverse impacts to historical resources as defined by CEQA. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA. Therefore, no further environmental review is required.

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

Financial Impact
Funds for the Traffic Signal Modification and Hardware Upgrades Program were included in the approved Fiscal Year 2025/26 Financial Plan and Capital Improvement Program (CIP) List under Measure A Account No. 2134250-5000906. The contract amount, including contingency, totals $503,000; therefore, there is no financial impact to the General Fund. 277

The following table illustrates the account budget and expenditure:

Description Budget Expenditure Balance
Acct No. 2134250-500906
FY 24/25 Budget $67,140
FY25/26 Budget $875,000
Traffic Signal IISNS Replacement – Selbert C49940 $65,000 Traffic Signal Mod Consultant – TJKM C48390D $67,140
*Traffic Signal Mod & Hardware – Bear Elect $423,000
Traffic Signal Mod & Hardware – Contingency $80,000
Totals $942,140 $635,140 $307,000
*Current Request
The remaining balance of approximately $307,000 will be carried forward into Fiscal Year 2026/27 and utilized for future Traffic Operations and Capacity Improvement Program projects and related traffic signal infrastructure enhancements.

Attachments

1. Agreement

2. Payment and Performance Bonds

3. Contractor’s Proposal

4. Vicinity Map
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Conflict of Interest Awareness Checklist
Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations.

1. Site-Specific Property Interest
Does this item involve a project site or other identifiable real property? ☐ Yes
☒ No
If yes, identify the project site:

Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).

2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☐ Yes
☒ No
If yes, identify the applicant(s), appellant(s), party, or participant(s):

Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 279
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CITY OF PALM DESERT

CONTRACT FOR CONSTRUCTION
This Agreement is made and entered into on June 25, 2026, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, (“City”) and Bear Electrical Solutions, a Limited Liability Company, with its principal place of business at 1252 State Street, PO Box 924, Alviso, CA 95002 ("Contractor").

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

ARTICLE 1. SCOPE OF WORK.

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

Traffic Signal Modifications and Hardware Upgrades (Phase III) Project No. MTS00005
(hereinafter referred to as “the Project”).

The project consists of traffic signal modifications and hardware upgrades at 17 intersections throughout the City, including improvements to signal cabinets, wiring, and associated infrastructure to enhance system operations, safety, and reliability.

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

1.1 CITY COUNCIL APPROVAL.

On June 25, 2026, City Council approved the award of this Agreement to the Contractor above.

ARTICLE 2. TIME FOR COMPLETION.

Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 90 Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE.

The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract 281
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Documents, and including all applicable taxes and costs, the sum of FOUR HUNDRED TWENTY THREE THOUSAND AND 00/100 DOLLARS
($423,000.00). Payment shall be made as set forth in the General Conditions.

The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule.

ARTICLE 4. LIQUIDATED DAMAGES.

Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $1,000.00 for each and every day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents.

Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT.

The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Bid Forms
Bid Acknowledgement
Bid Schedule
Bid Guarantee
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Public Works Contractor DIR Registration Certification
Performance Bond
Payment (Labor and Materials) Bond
Contract for Construction
General Conditions
Special Conditions
Specifications
Addenda
Construction Plans and Drawings
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Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9
Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition
California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition
Work Area Traffic Control Handbook, latest edition
Reference Specifications
Approved and fully executed Change Orders
Permits
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE.

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

ARTICLE 7. INDEMNIFICATION AND INSURANCE
A.Indemnification

1. To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify, and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against:
(a) Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other 283
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related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers;
(b) Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements; (c) Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor;
(d) Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Contract. Such costs, expenses, and damages shall include all costs, including attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party.

2. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees, and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees, and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782.

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

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

2. General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

3. Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Contract, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

4. Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements.

In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automotive liability and employer’s liability. Such policy or policies shall include the following terms and conditions:

A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;
(a) Pay on behalf of wording as opposed to reimbursement; and (b) Concurrency of effective dates with primary policies; and (c) Policies shall “follow form” to the underlying primary policies; and (d) Insureds under primary policies shall also be insureds under the umbrella or excess policies.

5. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the 285
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Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers.

6. Fidelity Coverage. [Reserved].

7. Pollution Liability Insurance. [Reserved].

C.Other Provisions or Requirements

1. Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract.

City reserves the right to require complete, certified copies of all required insurance policies, at any time.

2. Duration of Coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees, or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies.

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

4. Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or 286
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suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage.

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

6. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.

7. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, and volunteers and shall require similar written express waivers and insurance clauses from each of its subcontractors.

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

9. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

10.Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) Day notice of 287
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cancellation (except for nonpayment for which a ten (10) Day notice is required) or nonrenewal of coverage for each required coverage.

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

12.Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

13.Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

14.Pass Through Clause. Contractor agrees to ensure that its subconsultants, sub-contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review.

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

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

17.Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s 288
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performance under this Contract, and that involve or may involve coverage under any of the required liability policies.

18.Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

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

ARTICLE 8. PREVAILING WAGES.

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

ARTICLE 9. FALSE CLAIMS.

Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution.

Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE TO CONTRACT FOR CONSTRUCTION

BY AND BETWEEN THE CITY OF PALM DESERT

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

Office Use:

Quality Check Insurance Review Bonds
City Clerk Contracts Initial Final

CITY OF PALM DESERT
__________________________________
Chris Escobedo
City Manager
Attest:
__________________________________
Anthony J. Mejia
City Clerk
Approved as to form:
_________________________________
Isra Shah
City Attorney

BEAR ELECTRICAL SOLUTIONS, A

LIMITED LIABILITY COMPANY
___________________________________
Andrew Bader
President
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
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PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to Bear Electrical Solutions, LLC, (hereinafter referred to as the “Contractor”) an agreement for Traffic Signal Modifications & Hardware Upgrades (Phase III) Project (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated June 25, 2026, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, Bear Electrical Solutions, LLC, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of Four Hundred Twenty Three Thousand and 00/100 Dollars, ($423,000.00), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the 291
Contract No. ___________
lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.
(3) Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

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

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

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
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Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____.
(Corporate Seal)
Contractor/ Principal
By ____________________ ____
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: ________________________________
Printed Name: _______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.

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

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety and
Agent or Representative for
service of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
293
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
294
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
295
Contract No. ___________

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS That
WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed June 25, 2026, has awarded to Bear Electrical Solutions, LLC, hereinafter designated as the “Principal,” a contract for the work described as follows:

Traffic Signal Modifications & Hardware Upgrades (Phase III) Project (the “Project”).; and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated June 25, 2026, (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of Four Hundred Twenty Three Thousand and 00/100 Dollars, ($423,000.00) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or 296
Contract No. ___________
attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]
297
Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By ____________________ ____
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: ________________________________
Printed Name: _______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
298
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
299
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
300
City of Palm Desert
CP - Capital Improvement Projects
Jess Culpeper, Director of Capital Projects
73-510 Fred Waring Drive, Palm Desert, CA 92260
[BEAR ELECTRICAL SOLUTIONS, LLC] RESPONSE DOCUMENT REPORT IFB No. 2026-IFB-017
Traffic Signal Modifications & Hardware Upgrades (Phase III) RESPONSE DEADLINE: May 21, 2026 at 2:00 pm
Report Generated: Thursday, June 4, 2026
Bear Electrical Solutions, LLC Response

CONTACT INFORMATION
Company:

Bear Electrical Solutions, LLC
Email:
[email protected]
Contact:

Robert Asuncion
Address:
1252 State Street, PO Box 924
ALVISO, CA 95002
Phone:
(408) 449-5178
Website:
bear-electrical.com
Submission Date:

May 21, 2026 10:43 AM (Pacific Time)
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[BEAR ELECTRICAL SOLUTIONS, LLC] RESPONSE DOCUMENT REPORT IFB No. 2026-IFB-017
Traffic Signal Modifications & Hardware Upgrades (Phase III) [BEAR ELECTRICAL SOLUTIONS, LLC] RESPONSE DOCUMENT REPORT Invitation For Bid - Traffic Signal Modifications & Hardware Upgrades (Phase III)

ADDENDA CONFIRMATION
Addendum #1
Confirmed May 19, 2026 10:03 AM by Robert Asuncion

QUESTIONNAIRE

1. BID ACKNOWLEDGMENT*
Pass
To the City of Palm Desert, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260.

1. In response to the Contract Documents for project number MTS00005 and in accordance with the accompanying Instructions to Bidders, the undersigned hereby proposes to the City to furnish all labor, technical and professional services, supervision, materials and equipment, other than materials and equipment specified as furnished by the City, and to perform all operations necessary and required to construct the Project in accordance with the provisions of the Contract Documents and any addenda thereto, and at the prices stated opposite the respective items set forth in the Bid Schedule.

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

3. The undersigned certifies that it has examined and is fully familiar with all of the provisions of the Contract Documents and any addenda thereto; that it has carefully checked all of the words and figures shown in its Bid Schedule; that it has carefully reviewed the accuracy of all statements in this Bid and attachments hereto; and that it understands and agrees that the City will not be responsible for any errors or omissions on the part of the undersigned in preparing this Bid.

4. If awarded a Contract, the undersigned agrees to execute and deliver to the City within ten (10) Days after date of receipt of Notice of Award, a signed Contract and the necessary Performance Bond, Payment Bond, and Certificates of Insurance and Endorsements.
302
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5. All Bid Forms, which have been completed and executed by undersigned Bidder, are incorporated by this reference and made a part of this Bid.

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

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

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

Confirmed

2. BID SCHEDULE*
Pass
IMPORTANT:

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

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

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

The costs for any Work shown or required in the Contract Documents, but not specifically identified as a line item are to be included in the related line items and no additional compensation shall be due to Contractor for the performance of the Work. All blank spaces appearing in the Electronic Bid Schedule must be filled in. Failure to fill in any blank spaces may render the bid non-responsive.

The estimated quantities for Unit Price items are for purposes of comparing Bids only and the City makes no representation that the actual quantities of work performed will not vary from the estimates. Final payment shall be determined by the Engineer from measured quantities of work performed based upon the Unit Price. 303
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If the Contract Documents specify Alternate Bid items, the City can choose to include any, all, or none of the Alternate Bid items in the Work. If the City selects any of the Alternate Bid items, the corresponding Alternate Bid prices shall be added to or deducted from Base Bid Price for the Work. The City can award/select Alternate Bid items at any time(s).

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

Confirmed

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

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

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

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

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

Bond ID: SCA0518489025
Vendor ID: 461898744
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5. Enter Surety Company "Name" who Issued Bid Guarantee * Pass
This information will be verified against the California Department of Insurance Website.

Harco National Insurance Company
Click to Verify Value will be copied to clipboard

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

N/A

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

DESIGNATION_OF_SUBCONTRACTORS.pdf

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

BIDDER_INFORMATION_AND_EXPERIENCE_FORM_.pdf
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Traffic Signal Modifications & Hardware Upgrades (Phase III) [BEAR ELECTRICAL SOLUTIONS, LLC] RESPONSE DOCUMENT REPORT Invitation For Bid - Traffic Signal Modifications & Hardware Upgrades (Phase III)

9. NON-COLLUSION DECLARATION*
Pass
The undersigned declares:

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

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

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

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

Confirmed

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

No bid will be accepted, nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work. 306
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Traffic Signal Modifications & Hardware Upgrades (Phase III) [BEAR ELECTRICAL SOLUTIONS, LLC] RESPONSE DOCUMENT REPORT Invitation For Bid - Traffic Signal Modifications & Hardware Upgrades (Phase III)

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

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

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

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

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

Confirmed

11. Enter your California Department of Industrial Relations (DIR) Registration number* Pass
Please enter your Public Works Contractor DIR Number. This will be verified against the state database. 1000002158
Click to Verify Value will be copied to clipboard

12. Enter your valid CA Contractors State License Board (CSLB) number* Pass
Please enter your License Number here. This will be verified against the state database. 982079
Click to Verify Value will be copied to clipboard

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

Confirmed

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

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

15. Fleet Compliance Documentation*
Pass
Please attach supporting documentation for the selection made in the above item.

CARB_-_BEAR_CERT_2026.pdf

16. Type of Business*
Pass
Limited Liability Partnership

17. Type your Legal Company Name Here*
Pass
State your Company's Name Here. This will be verified against the California Secretary of State's Website. 308
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Bear Electrical Solutions, LLC
Click to Verify Value will be copied to clipboard

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

1. Full Name

2. Title

3. Physical Business Address

4. Email Address

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

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

LLC: Usually requires one signature from an authorized member or manager. For significant contracts (e.g., over $50,000 for construction or over $25,000 for service agreements), additional approvals or signatures may be required.

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

1. Andrew Bader

2. President
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[BEAR ELECTRICAL SOLUTIONS, LLC] RESPONSE DOCUMENT REPORT IFB No. 2026-IFB-017
Traffic Signal Modifications & Hardware Upgrades (Phase III) [BEAR ELECTRICAL SOLUTIONS, LLC] RESPONSE DOCUMENT REPORT Invitation For Bid - Traffic Signal Modifications & Hardware Upgrades (Phase III)

3. 1252 State Street, Alviso, Ca 95002

4. [email protected]

5. 408-449-5178

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

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

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

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

Confirmed

PRICE TABLES
Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 Traffic Signal Modifications and Hardware Upgrades Phase III (Complete Project) 1 Lump Sum $406,000.00 $406,000.00 2 Bid Alternate #1 1 Lump Sum $17,000.00 $17,000.00
TOTAL $423,000.00
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Attachment 4
Vicinity Map
• Country Club Drive & Via Scena
• Country Club Drive & Palm Greens / Via Portofino
• Country Club Drive & Indian Ridge Drive / Palm Valley Drive • Country Club Drive & Harris Lane
• Dinah Shore Drive & Miriam Way
• Monterey Avenue & Gran Via / Las Palmas
• Hovley Lane East & Oasis Club Drive
• Portola Avenue & De Anza Way
• Portola Avenue & Chaparral Drive / Via Venezia
• Fred Waring Drive & San Pascual Avenue
• Fred Waring Drive & Phyllis Jackson Lane
• Fred Waring Drive & Deep Canyon Road
• Cook Street & 42nd Avenue / Green Way
• Cook Street & Gerald Ford Drive
• Fred Waring Drive & Town Center Way
• Town Center Way & Hahn Way
• El Paseo & Larkspur Lane
311
312

City of Palm Desert Staff Report
Meeting Date: June 25, 2026
Prepared By: Francisco Torres, Public Works Superintendent Department: Public Works
Subject: Award Maintenance Services Agreements to M. Brey, Inc., dba MBE Construction and Urban Worx Construction, Inc., for On-Call Electrical Services (Project No.

MCS00001)
Recommendation

1. Award a Maintenance Service Agreement to Urban Worx Construction, Inc., and M.

Brey Inc., dba MBE Construction, for on-call electrical services in the amount of $100,000 each, for a total not to exceed $200,000 per fiscal year for a two-year term with the option of two one-year extensions.

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

3. Authorize the City Manager to execute the agreement, change orders, the two one-year extensions, and any other documents necessary to effectuate the actions taken herewith.

Executive Summary
On September 11, 2025, the City Council approved on-call electrical services agreements with Horizon Lighting, Inc., and GA Technical Services, Inc. Following the termination of the agreement with GA Technical Services, Inc., staff issued RFP No. 2026-RFP-014 to secure additional contractor capacity for on-call electrical services.

Staff recommends awarding agreements to Urban Worx Construction, Inc., and M. Brey Inc., dba MBE Construction, to supplement services currently provided by Horizon Lighting, Inc., and maintain adequate service capacity.

Background
On September 11, 2025, the City Council approved Maintenance Service Agreement No.

C44910A to Horizon Lighting, Inc., and No. C44910B to GA Technical Services, Inc., for oncall electrical services in the amount of $150,000 each, for a total not-to-exceed amount of $300,000 per fiscal year. The agreements were approved for a three-year term, with the option to extend for two additional one-year terms.

Subsequently, the City and GA Technical Services, Inc., agreed to terminate the contract effective April 30, 2026. While Horizon Lighting, Inc., continues to provide services, staff determined that additional contractor capacity was needed to meet ongoing operational demands.
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Analysis
The City issued Request for Proposals (RFP) No. 2026-RFP-014 for on-call electrical services on April 16, 2026, with a submission deadline of April 28, 2026. Six proposals were received, evaluated, and ranked as follows:

Vendor Ranking
M. Brey Inc., dba MBE Construction 1
Urban Worx Construction, Inc. 2
Amtek Construction 3
Cove Electric, Inc. 4
Baker Electric & Renewables LLC 5
Accurate Structural Inc 6
M. Brey Inc., dba MBE Construction, and Urban Worx Construction, Inc. achieved the highest rankings based on qualifications and experience, and their demonstrated ability to provide responsive and reliable service.

Awarding agreements to these firms will help maintain service levels and ensure timely response to the City's electrical maintenance needs. The agreements are proposed for a twoyear term, consistent with the term of the City's existing agreement with Horizon, thereby maintaining consistency in contract administration, procurement scheduling, and service delivery across the City's electrical maintenance contracts.

Environmental Review
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060 (c)(2),15060(c)(3) and 15378(b)(2). The proposed action involves the execution of agreements with Urban Worx Construction, Inc., and M. Brey Inc., dba MBE Construction, to supplement services currently provided by Horizon Lighting, Inc., and maintain adequate on-call service capacity for the City’s electrical maintenance needs. This action is not subject to CEQA per State CEQA Guidelines section 15060(c)(2) because the execution of these agreements will not result in a direct or reasonably foreseeable indirect physical change in the environment. Further, the action is also not a project per State CEQA Guidelines section 15378(b)(2) because the execution of these agreements enable the continuation of maintenance activities. Thus, the proposed action is not subject to CEQA also under State CEQA Guidelines section 15060(c)(3). No further environmental review is required for this action.

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

Financial Impact
Funds in the amount of $355,000 have been included in the proposed Fiscal Year 2026-27 Financial Plan for On-Call Electrical Services under Public Works under various operations accounts. Therefore, there is no further financial impact to the General Fund.

The table below lists some, but not all, of the various accounts and funds available*:
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Description Account No. Budget Contract Amount Balance
Civic Center Park 1104610-4332100 $45,000
Tri-Cities Sports 1104610-4337100 $7,500
Parks 1104611-4332501 $50,000
Artist Center 1104800-4331000 $5,000
Medians 1104614-4332501 $35,000
Entrada Del Paseo 1104614-4392101 $40,000
Corporation Yard 1104330-4331000 $7,500
City Hall 1104340-4331000 $20,000
Portola Community Center 1104344-4331000 $5,000
Fire Stations 2304220-4331000 $20,000
Aquatic Center 2424549-4331101 $30,000
ERC / Sears 4254430-Multiple $10,000
Desert Willow 4414195-4332000 $15,000
Government Buildings 5104195-Multiple $65,000
Horizon Lighting $150,000
**Urban Worx $100,000
** MBE Construction $100,000
Total $355,000 $350,000 $5,000
*Although the amounts listed are intended to cover the costs, actual distribution will vary based on actual use. **Current request
Staff will continue to budget accordingly during the annual budget process to ensure adequate funding in future fiscal years.

Attachments

1. MBE Construction Agreement

2. Urban Worx Agreement

3. MBE Construction Payment and Performance Bonds

4. Urban Worx Payment and Performance Bonds

5. MBE Construction Proposal

6. Urban Worx Construction, Inc. Proposal
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Conflict of Interest Awareness Checklist
Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations.

1. Site-Specific Property Interest
Does this item involve a project site or other identifiable real property? ☐ Yes
☒ No
If yes, identify the project site:

Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).

2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☐ Yes
☒ No
If yes, identify the applicant(s), appellant(s), party, or participant(s):

Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 316
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CITY OF PALM DESERT

MAINTENANCE SERVICES AGREEMENT

1. Parties and Date. This Agreement is made and entered into on June 25, 2026, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, (“City”) and M. Brey Inc, dba MBE Construction, an S Corporation, with its principal place of business at 408 Elm Avenue, Beaumont, CA 92223 ("Contractor"). The City and Contractor are sometimes individually referred to herein as "Party" and collectively as "Parties."

1.1 City Council Approval.

On June 25, 2026, City Council approved the award of this Agreement to the vendor above.

2. Recitals.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing maintenance services to public clients, that it and its subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it is familiar with the plans of City. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City.

Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

2.2 Project.

The City desires to engage Contractor to render such services as set forth in this Contract for the following project:

On-Call Electrical Services
Project No. MCS00001
(hereinafter referred to as “the Project”).

3. Terms.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the maintenance services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and 317
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incorporated herein by reference, and all applicable local, state, and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from July 1, 2026, to June 30, 2028, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two (2) additional one-year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Any personnel performing the Services under this Agreement on behalf of Contractor shall not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

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

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

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

3.2.5 Contractor’s Representative. Contractor hereby designates Matthew Brey, President, or his or her designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, 318
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techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

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

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

3.2.8 Period of Performance. Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

Neither City nor Contractor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the Services, only to the extent such strikes and other organized labor action are beyond the control of Contractor and its subconsultants, and to the extent the effects 319
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thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the Services and Agreement.

Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Contractor to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

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

3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall keep itself fully informed of and in compliance with all local, state, and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law.

Contractor shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Agreement to the same extent as though set forth herein and will be complied with.

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

3.2.10.2 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services. 320
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3.2.10.3 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.2.10.4 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and requirements’ application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine.

Contractor shall indemnify City against any fines or penalties imposed by CARB or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.

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

3.2.11 Insurance.

3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of City, and prior to commencement of the Services, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City.
(A) General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage.

The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 321
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(B) Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement.
(C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
(a) A drop-down feature requiring the policy to
respond if any primary insurance that would
otherwise have applied proves to be
uncollectible in whole or in part for any reason;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall “follow form” to the underlying
primary policies.
(e) Insureds under primary policies shall also be
insureds under the umbrella or excess policies.
(D) Workers’ Compensation Insurance. Contractor shall
maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.
(E) Fidelity Coverage. Reserved.
(F) Cyber Liability Insurance. Reserved.
(G) Pollution Liability Insurance. Reserved.

3.2.11.2 Other Provisions and Requirements.
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(A) Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(B) Duration of Coverage. Contractor shall procure and
maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by Contractor, his/her agents, representatives, employees, or subconsultants.
(C) Primary/Non-Contributing. Coverage provided by
Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. (E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, and shall require similar written express waivers and insurance clauses from each of its subcontractors. 323
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(G) Enforcement of Contract Provisions (non estoppel).

Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(I) Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
(L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
(M) Pass Through Clause. Contractor agrees to ensure that its sub-consultants, sub-contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. 324
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(N) City’s Right to Revise Specifications. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice.
(O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (P) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(Q) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

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

3.2.13 Bonds.

3.2.13.1 Performance Bond. Contractor shall be required to execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. No payment will be made to Contractor until a Performance Bond has been received and approved by the City. Contractor shall use and accept the standard bond template provided by the City.

3.2.13.2 Payment Bond. Contractor shall be required to execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. No payment will be made to Contractor until a Performance Bond 325
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has been received and approved by the City. Contractor shall use and accept the standard bond template provided by the City.

3.2.13.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient, or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within ten (10) days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City.

To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause.

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

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

3.2.14 Accounting Records. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement.

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

3.2.15 Work Sites.

3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money– will be allowed as to such matters after commencement of the Services. 326
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3.2.15.2 Field Measurements. Contractor shall make field measurements, verify field conditions, and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract, including any plans, specifications, or scope of work before commencing Services. Errors, inconsistencies, or omissions discovered shall be reported to the City immediately and prior to performing any Services or altering the condition.

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

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

3.2.17 Warranty. Contractor warrants all Services under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship.

Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of 327
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the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed ONE-HUNDRED THOUSAND and 00/100 DOLLARS ($100,000.00) per fiscal year without written approval of the City Council or City Manager, as applicable.

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

3.3.2.1 Retainer. Reserved.

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

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

3.3.5 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution 328
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of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.

3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement.

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

3.3.7 Registration/DIR Compliance. If the Services are being performed as part of an applicable “public works” or “maintenance” project, and if the total compensation is $15,000 or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify, and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor. 329
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3.4 Termination of Agreement.

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

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

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

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

3.5 General Provisions.

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

Contractor: M. Brey Inc, dba MBE Construction
408 Elm Avenue
Beaumont, CA 92223
ATTN: Matthew Brey, President
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: Public Works
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Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.2 Indemnification.

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

3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City’s choosing and at Contractor’s own cost, expense, and risk, any and all Claims covered by this section that may be brought or instituted against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives as part of any such claim, suit, action, or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives as part of any such claim, suit, action, or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the Contractor, the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.

3.5.3 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. In addition to any and all Agreement requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims, and any subsequent lawsuit based upon the Government 331
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Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.

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

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

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

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

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

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

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

3.5.11 No Third-Party Beneficiaries. Except to the extent expressly provided for in Section 3.5.7, there are no intended third-party beneficiaries of any right or obligation assumed by the Parties.
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3.5.12 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

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

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

3.5.15 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement.

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

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

3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.18 Federal Provisions. Reserved.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT
AND M. BREY INC, DBA MBE CONSTRUCTION
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

Office Use:

Quality Check Insurance
City Clerk Contracts Initial
Review
Final
Review
Bonds

CITY OF PALM DESERT
_____________________________________
Chris Escobedo
City Manager
Attest:
____________________________________
Anthony J. Mejia
City Clerk
Approved as to form:
____________________________________
Isra Shah
City Attorney
M. BREY INC, DBA MBE CONSTRUCTION,

AN S CORPORATION
_____________________________________
Matthew Brey
President
_____________________________________
Matthew Brey
Secretary
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
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EXHIBIT “A”
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EXHIBIT “A”

SCOPE OF SERVICES

1.1. General Scope of Services
 The Contractor shall provide on-call electrical services, including the repair, replacement, and installation of electrical components. Core services include:
 Troubleshooting wiring issues and electrical faults
 Converting existing lighting systems (fluorescent, high-pressure sodium, and/or metal halide) to LED
 Replacing lamps and bulbs
 Installing new light fixtures (e.g., pedestal lights)  Troubleshooting, repairing, or replacing breakers
 Upgrading electrical panels
 Installing splice boxes
 Adjusting light timers for standard or daylight-saving time  Additional services may include, as needed:
 Replacing light timers
 Performing routine light checks
 Providing small-scale lighting designs
 Repairing or rerouting conduit

1.2. Contractor Requirements
The Contractor shall furnish all vehicles, tools, equipment, materials, and qualified personnel necessary to perform the services described in this RFP. All personnel must be appropriately licensed and qualified for the work assigned.

Services will be billed at negotiated hourly rates based on established rates for labor and equipment, inclusive of applicable mark-ups. Prevailing wage rates apply. Parts and materials will be reimbursed at actual cost as documented by submitted receipts, plus an allowable mark-up of 15%.
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EXHIBIT “B”

SCHEDULE OF SERVICES
Service Availability Requirements
The Contractor shall maintain the following minimum service levels at all times:
 Emergency service available 24 hours a day, 7 days a week  Dispatch available around the clock
 Emergency callback response within two (2) hours
 Standard, non-emergency callback response within forty-eight (48) hours 336
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EXHIBIT “C”

COMPENSATION
The total annual compensation shall not exceed ONE-HUNDRED THOUSAND AND 00/100 DOLLARS ($100,000.00) PER fiscal year and may only be adjusted for Consumer Price Index for all Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario, CA Region rate, All Items, for the 12-month period ending March, with written approval from the City Council or City Manager, as applicable. 337
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CITY OF PALM DESERT

MAINTENANCE SERVICES AGREEMENT

1. Parties and Date. This Agreement is made and entered into on June 25, 2026, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, (“City”) and Urban Worx Construction, Inc., an S Corporation, with its principal place of business at 39203 Leopard Street, Suite B, Palm Desert, CA 92211 ("Contractor"). The City and Contractor are sometimes individually referred to herein as "Party" and collectively as "Parties."

1.1 City Council Approval.

On June 25, 2026, City Council approved the award of this Agreement to the vendor above.

2. Recitals.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing maintenance services to public clients, that it and its subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it is familiar with the plans of City. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City.

Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

2.2 Project.

The City desires to engage Contractor to render such services as set forth in this Contract for the following project:

On-Call Electrical Services
Project No. MCS00001
(hereinafter referred to as “the Project”).

3. Terms.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the maintenance services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and 339
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incorporated herein by reference, and all applicable local, state, and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from July 1, 2026, to June 30, 2028, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two (2) additional one-year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Any personnel performing the Services under this Agreement on behalf of Contractor shall not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

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

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

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

3.2.5 Contractor’s Representative. Contractor hereby designates James Henderson, President, or his or her designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all 340
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means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

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

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

3.2.8 Period of Performance. Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

Neither City nor Contractor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the Services, only to the extent such strikes and other organized labor action are beyond the control of Contractor and its subconsultants, and to the extent the effects 341
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thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the Services and Agreement.

Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Contractor to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

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

3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall keep itself fully informed of and in compliance with all local, state, and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law.

Contractor shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Agreement to the same extent as though set forth herein and will be complied with.

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

3.2.10.2 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services. 342
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3.2.10.3 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.2.10.4 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and requirements’ application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine.

Contractor shall indemnify City against any fines or penalties imposed by CARB or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.

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

3.2.11 Insurance.

3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of City, and prior to commencement of the Services, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City.
(A) General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage.

The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 343
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(B) Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement.
(C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
(a) A drop-down feature requiring the policy to
respond if any primary insurance that would
otherwise have applied proves to be
uncollectible in whole or in part for any reason;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall “follow form” to the underlying
primary policies.
(e) Insureds under primary policies shall also be
insureds under the umbrella or excess policies.
(D) Workers’ Compensation Insurance. Contractor shall
maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.
(E) Fidelity Coverage. Reserved.
(F) Cyber Liability Insurance. Reserved.
(G) Pollution Liability Insurance. Reserved.

3.2.11.2 Other Provisions and Requirements.
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(A) Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(B) Duration of Coverage. Contractor shall procure and
maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by Contractor, his/her agents, representatives, employees, or subconsultants.
(C) Primary/Non-Contributing. Coverage provided by
Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. (E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, and shall require similar written express waivers and insurance clauses from each of its subcontractors. 345
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(G) Enforcement of Contract Provisions (non estoppel).

Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(I) Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
(L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
(M) Pass Through Clause. Contractor agrees to ensure that its sub-consultants, sub-contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. 346
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(N) City’s Right to Revise Specifications. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice.
(O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (P) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(Q) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

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

3.2.13 Bonds.

3.2.13.1 Performance Bond. Contractor shall be required to execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. No payment will be made to Contractor until a Performance Bond has been received and approved by the City. Contractor shall use and accept the standard bond template provided by the City.

3.2.13.2 Payment Bond. Contractor shall be required to execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. No payment will be made to Contractor until a Performance Bond 347
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has been received and approved by the City. Contractor shall use and accept the standard bond template provided by the City.

3.2.13.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient, or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within ten (10) days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City.

To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause.

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

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

3.2.14 Accounting Records. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement.

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

3.2.15 Work Sites.

3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money– will be allowed as to such matters after commencement of the Services. 348
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3.2.15.2 Field Measurements. Contractor shall make field measurements, verify field conditions, and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract, including any plans, specifications, or scope of work before commencing Services. Errors, inconsistencies, or omissions discovered shall be reported to the City immediately and prior to performing any Services or altering the condition.

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

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

3.2.17 Warranty. Contractor warrants all Services under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship.

Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of 349
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the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed One-Hundred Thousand Dollars ($100,000) per fiscal year without written approval of the City Council or City Manager, as applicable.

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

3.3.2.1 Retainer. Reserved.

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

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

3.3.5 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution 350
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of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.

3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement.

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

3.3.7 Registration/DIR Compliance. If the Services are being performed as part of an applicable “public works” or “maintenance” project, and if the total compensation is $15,000 or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify, and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor. 351
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3.4 Termination of Agreement.

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

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

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

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

3.5 General Provisions.

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

Contractor: Urban Worx Construction, Inc.
39203 Leopard St, Ste B.

Palm Desert, CA 92211
ATTN: James Henderson, President
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: Public Works
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Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.2 Indemnification.

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

3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City’s choosing and at Contractor’s own cost, expense, and risk, any and all Claims covered by this section that may be brought or instituted against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives as part of any such claim, suit, action, or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives as part of any such claim, suit, action, or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the Contractor, the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.

3.5.3 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. In addition to any and all Agreement requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims, and any subsequent lawsuit based upon the Government 353
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Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.

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

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

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

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

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

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

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

3.5.11 No Third-Party Beneficiaries. Except to the extent expressly provided for in Section 3.5.7, there are no intended third-party beneficiaries of any right or obligation assumed by the Parties.
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3.5.12 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

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

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

3.5.15 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement.

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

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

3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.18 Federal Provisions. Reserved.
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18 Revised 01-2026
72500.00001\44748717.1

SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT
AND URBAN WORX CONSTRUCTION, INC.

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

Office Use:

Quality Check Insurance
City Clerk Contracts Initial
Review
Final
Review
Bonds

CITY OF PALM DESERT
_____________________________________
Chris Escobedo
City Manager
Attest:
____________________________________
Anthony J. Mejia
City Clerk
Approved as to form:
____________________________________
Isra Shah
City Attorney
URBAN WORX CONSTRUCTION, INC., A

CORPORATION
_____________________________________
James Henderson
President
_____________________________________
John Doyle
Secretary
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
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EXHIBIT “A”
Revised 03-2026
72500.00001\44748717.1
EXHIBIT “A”

SCOPE OF SERVICES

1.1. General Scope of Services
 The Contractor shall provide on-call electrical services, including the repair, replacement, and installation of electrical components. Core services include:
 Troubleshooting wiring issues and electrical faults
 Converting existing lighting systems (fluorescent, high-pressure sodium, and/or metal halide) to LED
 Replacing lamps and bulbs
 Installing new light fixtures (e.g., pedestal lights)  Troubleshooting, repairing, or replacing breakers
 Upgrading electrical panels
 Installing splice boxes
 Adjusting light timers for standard or daylight-saving time  Additional services may include, as needed:
 Replacing light timers
 Performing routine light checks
 Providing small-scale lighting designs
 Repairing or rerouting conduit

1.2. Contractor Requirements
The Contractor shall furnish all vehicles, tools, equipment, materials, and qualified personnel necessary to perform the services described in this RFP. All personnel must be appropriately licensed and qualified for the work assigned.

Services will be billed at negotiated hourly rates based on established rates for labor and equipment, inclusive of applicable mark-ups. Prevailing wage rates apply. Parts and materials will be reimbursed at actual cost as documented by submitted receipts, plus an allowable mark-up of 15%.
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EXHIBIT “B”
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EXHIBIT “B”

SCHEDULE OF SERVICES
Service Availability Requirements
The Contractor shall maintain the following minimum service levels at all times:
 Emergency service available 24 hours a day, 7 days a week  Dispatch available around the clock
 Emergency callback response within two (2) hours
 Standard, non-emergency callback response within forty-eight (48) hours 358
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EXHIBIT “C”
Revised 03-2026
72500.00001\44748717.1
EXHIBIT “C”

COMPENSATION
The total annual compensation shall not exceed ONE-HUNDRED THOUSAND AND 00/100 DOLLARS ($100,000) 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, with written approval from the City Council or City Manager, as applicable.
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BBK 72500.00001\32374915.1

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to M. Brey Inc, dba MBE Construction, (hereinafter referred to as the “Contractor”) an agreement for On-Call Electrical Services Project (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated July 1, 2026, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, M. Brey Inc, dba MBE Construction, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of One-Hundred Thousand Dollars, ($100,000), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such 361
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bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the Authority under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the Authority under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

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

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

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]
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Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____.
(Corporate Seal)
Contractor/ Principal
By _______________________________
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: _______________________________
Printed Name: ______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.

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

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety and
Agent or Representative for
service of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
363
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
364
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
365
Contract No. ___________

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS That
WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed June 25, 2026, has awarded to M. Brey Inc, dba MBE Construction, hereinafter designated as the “Principal,” a contract for the work described as follows:

On-Call Electrical Services Project (the “Project”).; and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated July 1, 2026, (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of One-Hundred Thousand Dollars, ($100,000) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or 366
Contract No. ___________
attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]
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Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By: _______________________________
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: _______________________________
Printed Name:_______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
368
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
369
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
370
Contract No. ___________
Revised 11-2-20
BBK 72500.00001\32374915.1

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to Urban Worx Construction, Inc., (hereinafter referred to as the “Contractor”) an agreement for On-Call Electrical Services Project (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated July 1, 2026, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, Urban Worx Construction, Inc., the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of One-Hundred Thousand Dollars, ($100,000), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such 371
Contract No. ___________
bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the Authority under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the Authority under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

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

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

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]
372
Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____.
(Corporate Seal)
Contractor/ Principal
By _______________________________
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: _______________________________
Printed Name: ______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.

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

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety and
Agent or Representative for
service of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
373
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
374
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
375
Contract No. ___________

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS That
WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed June 25, 2026, has awarded to Urban Worx Construction, Inc., hereinafter designated as the “Principal,” a contract for the work described as follows:

On-Call Electrical Services Project (the “Project”).; and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated July 1, 2026, (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of One-Hundred Thousand Dollars, ($100,000) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or 376
Contract No. ___________
attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON NEXT PAGE]
377
Contract No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By: _______________________________
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: _______________________________
Printed Name:_______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
378
Contract No. ___________
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
379
Contract No. ___________
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
380
City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Director of Public Works
73-510 Fred Waring Drive, Palm Desert, CA 92260
[M. BREY INC, DBA MBE CONSTRUCTION] RESPONSE DOCUMENT REPORT RFP No. 2026-RFP-014
On-Call Electrical Services
RESPONSE DEADLINE: April 28, 2026 at 2:00 pm
Report Generated: Monday, May 11, 2026
M. Brey Inc, dba MBE Construction Response

CONTACT INFORMATION
Company:

M. Brey Inc, dba MBE Construction
Email:
[email protected]
Contact:

Marco Rodriguez
Address:
408 Elm Ave.

Beaumont, CA 92223
Phone:

N/A
Website:

N/A
Submission Date:

Apr 28, 2026 12:23 PM (Pacific Time)
381
[M. BREY INC, DBA MBE CONSTRUCTION] RESPONSE DOCUMENT REPORT RFP No. 2026-RFP-014
On-Call Electrical Services
[M. BREY INC, DBA MBE CONSTRUCTION] RESPONSE DOCUMENT REPORT Request For Proposal - On-Call Electrical Services