Agenda packet, regular meeting — Palm Desert City Council, June 25, 2026 (part 3 of 4)

ADDENDA CONFIRMATION
No addenda issued

QUESTIONNAIRE

1. Proposal Submission Requirements*
Proposers shall submit one (1) complete proposal that includes all required components outlined in this section. The proposal shall be organized in the order presented below and clearly labeled with section headings.

Failure to submit a complete proposal or to follow the required format may result in the proposal being deemed non-responsive.

Section 1: Cover Letter
• Firm name and address
• Primary contact (name, title, phone, email)
• Brief introduction of the firm and summarize the firm's general qualifications • Include an executive summary of the specific approach which will be used to deliver the work scope • Identify the individual(s) name, title, address, phone, and email authorized to negotiate agreement terms and compensation.

Section 2: Firm Qualifications and Experience
• Firm overview and the years in business
• Experience providing similar service as described in this RFP • Relevant project experience (preferably municipal)
• Include copies of licenses and certifications
Section 3: Key Personnel and Staffing
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[M. BREY INC, DBA MBE CONSTRUCTION] RESPONSE DOCUMENT REPORT RFP No. 2026-RFP-014
On-Call Electrical Services
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• Prove the number of staff to be assigned to perform the services include names, discipline, job title of each. • Identify key persons that will be principally responsible for working with the City. Indicate the role and responsibility of each individual.
• Discuss firm's capacity to provide additional personnel as needed. • Describe proposed team organization, including identification and responsibilities of key personnel • Submit resumes of all key personnel and support staff that will produce work for the services described. Include qualifications and professional licensing.

Section 4: Technical Approach, Service Methodology, and Availability • Discuss approach to delivering on-call and as-needed services • Procedures for troubleshooting and diagnosing electrical issues • Approach to repairs, replacements, and installations
• Experience with LED conversions, panel upgrades, and conduit work • Approach to small-scale lighting design
• Quality control practices
• Safety procedures and compliance with applicable codes.

Section 5: Service Availability and Response Plan
• Dispatch procedures and communication protocols
• Ability to meet required response times:
o 24/7 emergency service
o Two (2) hour emergency response
o Forty-eight (48) hour standard response
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[M. BREY INC, DBA MBE CONSTRUCTION] RESPONSE DOCUMENT REPORT RFP No. 2026-RFP-014
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• Staffing and availability
proposal.pdf

2. References and Past Experience*
Provide three (3) references of recently completed projects similar in scope and function to this RFP • Include:
o Client name
o Describe the project
o Contract amount
o Term of the contract
o Contact name, title, telephone, and email address
References.pdf

3. Non-Collusion Declaration*
The undersigned declares:

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

The Proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The Proposal is genuine and not collusive or sham. The Proposer has not directly or indirectly induced or solicited any other Proposer to put in a false or sham proposal. The Proposer has not directly or indirectly colluded, conspired, connived, or agreed with any Proposer or anyone else to put in a sham bid, or to refrain from proposing. The Proposer has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the Proposal Price of the Proposer or any other Proposer, or to fix any overhead, profit, or cost element of the Proposal Price, or of that of any other Proposer. All statements contained in the Proposal are true. The Proposer has not, directly or indirectly, submitted his or her Proposal Price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, 384
[M. BREY INC, DBA MBE CONSTRUCTION] RESPONSE DOCUMENT REPORT RFP No. 2026-RFP-014
On-Call Electrical Services
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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 Proposer 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 Proposer.

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

Confirmed

4. Enter your valid CA Contractors State License Board (CSLB) number* Please enter your License Number here. This will be verified against the state database. 581224
Click to Verify Value will be copied to clipboard

5. Enter your California Department of Industrial Relations (DIR) Registration number* Please enter your Public Works Contractor DIR Number. This will be verified against the state database. 1000005926
Click to Verify Value will be copied to clipboard

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

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

N/A
385
[M. BREY INC, DBA MBE CONSTRUCTION] RESPONSE DOCUMENT REPORT RFP No. 2026-RFP-014
On-Call Electrical Services
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8. Changes to Agreement*
The City standard Maintenance Services Agreement contract is included as an attachment herein. The Proposer shall identify any objections to and/or request changes to the standard contract language in this section of the proposal (or type "N/A"). If you are identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect theCity's decision to enter into an Agreement.

N/A

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

Maximum response length: 5000 characters
N/A

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

1. Full Name

2. Title

3. Physical Business Address

4. Email Address

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. 386
[M. BREY INC, DBA MBE CONSTRUCTION] RESPONSE DOCUMENT REPORT RFP No. 2026-RFP-014
On-Call Electrical Services
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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.

Matthew Brey
President
408 Elm Ave Beaumont, CA 92223
[email protected]
951-845-5438

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

PRICE TABLES

HOURLY RATES
Line Item Description Unit of Measure Unit Cost
1 Supervisor/Foreman - Standard Rate Hour $170.00
2 Supervisor/Foreman - Emergency/After-Hours Rate Hour $220.00 3 Supervisor/Foreman - Weekend/Holiday Rate Hour $271.00 4 Journeyman - Standard Rate Hour $165.00
5 Journeyman - Emergency/After-Hours Rate Hour $213.00
387
[M. BREY INC, DBA MBE CONSTRUCTION] RESPONSE DOCUMENT REPORT RFP No. 2026-RFP-014
On-Call Electrical Services
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Line Item Description Unit of Measure Unit Cost
6 Journeyman - Weekend/Holiday Rate Hour $262.00
7 Apprentice - Standard Rate Hour $114.00
8 Apprentice - Emergency/After-Hours Rate Hour $150.00
9 Apprentice - Weekend/Holiday Rate Hour $188.00
10 Laborer - Standard Rate Hour $141.00
11 Laborer - Emergency/After-Hours Rate Hour $179.00
12 Laborer - Weekend/Holiday Rate Hour $218.00
388
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926

CITY OF PALM DESERT
73-510 FRED WARING DRIVE
PALM DESERT, CA 92260

PROPOSAL FOR

CITY OF PALM DESERT
FOR
2026-RFP-014

ON-CALL ELECTRICAL

SERVICES
Matthew Brey, President
M. Brey, Inc. dba MBE
Construction
4/28/2026
389
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
SECTION 1 - COVER LETTER

1.1 Firm name and address
M. Brey, Inc. dba MBE Construction
408 Elm Avenue
Beaumont, CA 92223
Office (951) 845-5438 | Fax (951) 845-5439

1.2 Primary contact
Name / Title: Matthew Brey, President
Email: [email protected]
Telephone: 951-845-5438

1.3 Brief introduction of the firm
M. Brey, Inc. dba MBE Construction is pleased to submit this proposal to provide On-Call Electrical Services for the City of Palm Desert. We appreciate the opportunity to be considered for this important contract and have carefully reviewed the Request for Proposal requirements, scope of services, and service expectations outlined by the City.

MBE Construction is a California licensed contractor with more than 35 years of experience providing responsive maintenance, repair, and improvement services for public agencies throughout Southern California. Our firm has extensive experience performing on-call electrical work for municipal facilities, parks, streetscapes, offices, and public-use properties requiring prompt response, professional service, and dependable communication.

1.4 Executive Summary of Our Specific Approach
MBE Construction’s approach is centered on rapid response, clear communication, qualified personnel, and efficient completion of each service request. Upon receipt of a call from the City, our management team will immediately assess the urgency of the request, dispatch the appropriate electrician or crew, and coordinate any required equipment or materials.

Emergency calls will receive priority mobilization with a targeted response time of two (2) hours or less. Standard service requests will be scheduled promptly and 390
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
completed within the required forty-eight (48) hour timeframe whenever applicable.

1.5 Individual authorized to negotiate agreement
Name / Title: Matthew Brey, President
Email: [email protected]
Telephone: 951-845-5438
391
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
Section 2 - Qualifications and Experience

2.1 Firm Overview and Years in Business
M. Brey, Inc. dba MBE Construction is a California corporation established in 1989, with more than 35 years of continuous experience. Since inception, the company has built a strong reputation for reliability, responsiveness, and consistent results particularly in environments where timely service and minimal disruption are essential.

MBE Construction specializes in municipal on-call contracting and has extensive experience supporting cities, public works departments, utilities agencies, transit agencies, and other governmental entities with as-needed maintenance and improvement services. Our firm understands the importance of rapid mobilization, coordination, safety compliance, and completing work efficiently within active public facilities.

Electrical services are a core component of our operations. MBE routinely performs troubleshooting, repairs, replacements, upgrades, and installations involving lighting systems, electrical panels, breakers, conduit, controls, timers, and related infrastructure.

Our crews are experienced in diagnosing issues quickly, implementing practical solutions, and maintaining compliance with applicable codes and safety standards.

The company maintains a skilled workforce consisting of project managers, superintendents, foremen, electricians, labor support personnel, and a trusted network of specialty subcontractors when additional resources are required. This structure allows our firm to respond effectively to both routine service requests and urgent emergency calls.

After more than three decades in business, MBE Construction continues to serve public clients by providing dependable “one-call” service backed by experience, accountability, and a commitment to long-term client relationships.

2.2 Experience Providing Similar Services
MBE Construction has extensive experience providing on-call electrical services and related maintenance support for public agencies, municipal facilities, and commercial properties throughout Southern California. Our firm has successfully performed as-needed service work requiring rapid response, flexible scheduling, qualified electricians, and the ability to complete multiple task orders efficiently.

Our experience includes troubleshooting electrical failures, diagnosing wiring issues, replacing breakers, upgrading panels, repairing damaged conduit, installing splice 392
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
boxes, replacing lamps and fixtures, converting outdated lighting systems to LED, adjusting and replacing timers, and performing preventative maintenance inspections.

These services have been completed in occupied buildings, parks, parking areas, streetscapes, utility facilities, transit properties, and other active public environments where safety and minimal disruption are critical.

Our firm understands the unique requirements of on-call municipal work, including emergency dispatch, after-hours response, coordination with City staff, and timely completion of small to medium-sized service requests. We routinely provide field crews equipped with stocked service vehicles, common repair materials, ladders, lifts, tools, and
testing equipment necessary to respond quickly and complete repairs on the first visit whenever possible.

Our team has supported public clients with electrical work involving administrative buildings, community centers, utility buildings, council chambers, maintenance yards, transit facilities, parks, and exterior site lighting systems. Many assignments require troubleshooting unknown conditions, adapting to existing infrastructure, and providing cost-effective solutions while maintaining code compliance.

In addition to planned maintenance and repair work, MBE Construction has significant experience responding to urgent service calls involving lighting outages, tripped breakers, damaged circuits, failed controls, and other operational issues requiring immediate attention. Our ability to mobilize management personnel, electricians, and materials quickly allows us to restore service efficiently and minimize downtime for our clients.

Through decades of public agency service, MBE Construction has developed the systems, staffing, supplier relationships, and field experience necessary to provide dependable on-call electrical services consistent with the City of Palm Desert’s requirements.

2.3 Relevant Project Experience
MBE Construction has successfully completed numerous electrical services, repair, upgrade, emergency response, and on-call maintenance projects, for public agencies and municipal clients throughout Southern California. With more than 35 years as a licensed contractor, Matthew Brey founded MBE Construction as a service-oriented “one-call” contractor built to provide responsive
support for public entities requiring dependable maintenance, repair, and construction services. Our operating model was designed around rapid mobilization, clear 393
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
communication, qualified in-house trades personnel, and efficient completion of assigned work.

MBE maintains a dependable workforce consisting of project managers, superintendents, foremen, state-certified electricians, apprentices, and support personnel capable of handling both scheduled assignments and urgent response work.

Our crews maintain a professional appearance and are readily identifiable in company-issued uniforms, reflecting the importance of professionalism when working in occupied facilities, public spaces, parks, streets, and active municipal environments.

MBE currently performs and has performed multiple on-call contracts and understands the importance of receiving direction, approvals, and scheduling coordination through the designated Contract Administrator or authorized City representative. We recognize that successful on-call service requires responsiveness, accountability, proper documentation, and continuous communication throughout each assignment.

When work orders are issued, assignments generally fall into two categories: urgent service requests requiring immediate attention or scheduled maintenance / improvement work that can be coordinated in advance. For urgent assignments, MBE is capable of mobilizing crews quickly following authorization. For planned work, our team schedules operations to minimize disruption to City staff, facility users, traffic circulation, and the public.

MBE also understands the importance of administrative support and accurate documentation. Our office staff has extensive experience preparing certified payroll reports, certificates of insurance, work authorizations, pricing documentation, and clear invoicing that allows City personnel to efficiently track issued work and contract activity.

Representative Electrical and On-Call Experience
Street Lighting and Public Infrastructure
MBE has performed electrical infrastructure work including replacement of street light poles, light standard foundations, conduit systems, pull boxes, and related public lighting improvements. Representative work includes on-call street light pole replacement services for the City of Palmdale and light standard footing replacement work for Caltrans.

Emergency Electrical Response and Power Restoration
MBE was called out on an emergency at Desert Hills Premium Outlets Mall when the main switchgear burned up (Figure 1). Within eight hours MBE had backup generators powering the affected building. Within three weeks MBE ordered new switchgear, coordinated with Riverside County Building Department and Southern California Edison, and completed the removal and replacement of the switchgear as pictured below (Figure 2).
394
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
The company and staff have the knowledge and
experience to replace electrical switchgear (Figure 3)
and to perform repair work on Caltrans Changeable
Message Signs. The switchgear in figure 3 took MBE
staff two days to complete. The Changeable
Message Sign, located on Interstate 10 westbound
was damaged by vandals (Figure 4).

LED Lighting, Controls, and Facility Upgrades
Our crews routinely complete LED retrofits, timer
replacements, parking lot lighting repairs, building lighting upgrades, occupancy sensor installations, conduit rerouting, and code-compliant electrical improvements in occupied facilities where reliability and minimal disruption are essential. These assignments often require careful scheduling, coordination with facility staff, phased work areas, and after-hours or low-impact installation methods to maintain normal operations while improvements are being performed. MBE understands the importance of delivering efficient upgrades that enhance system performance, reduce maintenance needs and
improve overall energy efficiency.

Underground Electrical Systems and Site
Power
MBE has installed hundreds of pull boxes,
handholes, vaults, conduit systems, meter
pedestals, and related site electrical infrastructure
for parks, medians, utility facilities, and municipal
properties. Our crews utilize company-owned equipment
and experienced operators to ensure safe excavation, proper placement, accurate elevations, and efficient installation.

These representative projects demonstrate MBE Construction’s ability to provide responsive, technically capable, and dependable electrical services required for the City of Palm Desert’s On-Call Electrical Services contract.

Figure 1
Figure 2
Figure 3 Figure 4
395
396
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1000005926 - M. BREY ELECTRIC, INC
1000005926 - M. BREY ELECTRIC, INC
Customer Account Lookup
PWCR
1000005926
Contractor Status
CSLB
581224
Business Phone
9518455438
Ext
Registration Start Date
2025-07-01
DIR Approved
4/21/26, 1:14 PM 1000005926 - M. BREY ELECTRIC, INC
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Address
Legal Entity Name
M. BREY ELECTRIC, INC
Doing Business As (DBA)
MBE Construction
Business Structure
President
Matthew Brey
Email
[email protected]
Registration End Date
2026-06-30
Corporation - S corp
Crafts
General Engineering Laborer and Related Classifications Electrician Mailing Address
408 Elm Ave
Mailing Address - City
Beaumont
Mailing Address - State
CA
Mailing Address - Zip
92223
4/21/26, 1:14 PM 1000005926 - M. BREY ELECTRIC, INC
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Registration Dates 11
Mailing Address - Country
United States
Physical Address
Po Box 3159
Physical Address - City
Beaumont
Physical Address - State
CA
Physical Address - Zip
92223
Physical Address - Country
United States
Terms & Conditions
Privacy Policy
Disclaimer
Nondiscrimination Notice
Accessibility
dir.ca.gov
Copyright 2026 State of California
4/21/26, 1:14 PM 1000005926 - M. BREY ELECTRIC, INC
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400
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
Section 3 - Key Personnel

3.1 Staff to be assigned
MBE Construction has assembled a dedicated team of experienced professionals to support the City’s on-call electrical maintenance and repair services. The proposed team is structured to ensure coordination, accountability, and efficient delivery of services, with defined roles for project management, field operations, and administrative support.

3.2 Key personnel responsible for working with the City Matthew Brey, President – Primary Point of Contact
Matthew Brey will serve as the primary point of contact for the City and will provide executive oversight for all assigned work. Mr. Brey is responsible for meeting with City representatives, reviewing project requirements, and overseeing the preparation of cost proposals.

As part of MBE’s quality control process, Mr. Brey conducts site visits throughout the duration of projects and at completion to ensure that all work is performed in accordance with project requirements and that City personnel are fully satisfied with the final product.

His direct involvement ensures a high level of accountability and quality across all services provided.

David Northup, Project Manager – Secondary Point of Contact David Northup will serve as the City’s secondary point of contact and will be responsible for the day-to-day management and coordination of all assigned tasks. Mr. Northup oversees project scheduling, crew assignments, and resource allocation to ensure timely and efficient completion of work.

He is responsible for managing subcontractors, coordinating with vendors, and handling all procurement of electrical materials. Mr. Northup also ensures that all work is properly 401
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
documented and executed in accordance with contract requirements, maintaining clear communication with City staff throughout each phase of the work.

Marquel Dopp, Office Manager – Administrative Support
Marquel Dopp will serve as the City’s point of contact for administrative and compliance-related matters. Responsibilities include preparation and submission of certified payroll reports, DIR compliance, invoicing, and general project documentation.

Ms. Dopp also supports scheduling coordination, including service calls and emergency response dispatching, ensuring that communication between the field and City representatives remains consistent and efficient.

Randy Costelow, Safety Officer – Safety / Risk Management Randy Costelow will serve as the City’s point of contact for project safety, risk management, and compliance-related matters. Responsibilities include oversight of jobsite safety procedures, coordination of safety training requirements, incident prevention measures, hazard assessments, and monitoring compliance with applicable OSHA regulations and company safety policies.

Mr. Costelow also supports field operations by assisting with site-specific safety planning, traffic control coordination when required, and ensuring that crews maintain proper personal protective equipment, safe work practices, and a professional work environment throughout all assignments.

Hector Gonzalez, Superintendent – Field Operations Supervisor Hector Gonzalez will serve as the Field Operations Supervisor for the City and will be responsible for day-to-day field execution of assigned work orders, crew supervision, and coordination of on-site electrical service activities. Mr. Gonzalez is responsible for assigning manpower, directing field personnel, monitoring jobsite safety, and ensuring all work is completed efficiently and in accordance with project requirements.

As part of MBE’s quality control process, Mr. Gonzalez performs regular jobsite inspections throughout the duration of each assignment and verifies that workmanship, cleanliness, and schedule expectations are maintained. His direct oversight helps ensure timely completion of service requests, safe work practices, and a professional level of service for all City facilities.

Jose Gonzalez, Foreman / Journeyman Electrician – Lead Electrical Technician Jose Gonzalez will serve as the Lead Electrical Technician for the City and will be responsible for performing and overseeing assigned electrical service work in the field.

Mr. Gonzalez is responsible for troubleshooting electrical issues, completing repairs, 402
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
installing new components, and coordinating field activities related to lighting systems, panels, breakers, conduit, timers, and other electrical infrastructure.

As part of MBE’s quality control process, Mr. Gonzalez ensures that all electrical work is performed safely, efficiently, and in compliance with applicable codes and project requirements. He conducts field checks during active work and upon completion to verify proper operation, clean workmanship, and overall client satisfaction. His hands-on experience and technical knowledge help ensure reliable and professional service for all City assignments.

Skylar Shaver, Journeyman Electrician – Field Electrical Technician Skylar Shaver will serve as a Field Electrical Technician for the City and will be responsible for performing electrical maintenance, repair, and installation work on assigned service requests. Mr. Shaver is responsible for diagnosing electrical problems, replacing defective components, assisting with panel and circuit work, and supporting field operations involving lighting systems, conduit, controls, timers, and related electrical infrastructure.

As part of MBE’s quality control process, Mr. Shaver works closely with field supervision to ensure all assignments are completed safely, efficiently, and in accordance with applicable codes and project requirements. He verifies system performance upon completion, maintains clean and organized work areas, and helps deliver timely, dependable service for all City facilities.

3.3 Capacity to provide additional personnel as needed
MBE maintains the operational capacity to provide additional personnel as needed to meet changing service demands and currently employs a staff of approximately 35 employees. Our workforce includes management personnel, field supervisors, electricians, apprentices, equipment operators, labor support staff, and administrative personnel who can be assigned based on project size, urgency, and required skill set.

Additional electricians, apprentices, labor support personnel, supervisors, and specialty subcontractors can be mobilized quickly to address emergency calls, multiple simultaneous service requests, accelerated schedules, outage restoration efforts, or larger task assignments requiring expanded manpower. This scalable staffing model allows MBE to respond efficiently to fluctuating workloads while maintaining required response times, code-compliant work, safety standards, and dependable service throughout the contract term.
403
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926

3.4 Team organization
MBE Construction’s proposed team organization is structured to provide the City of Palm Desert with responsive management oversight, efficient field operations, and dependable administrative support. The organizational structure is designed to ensure that service requests are received promptly, assigned to qualified personnel, completed efficiently, and properly documented.

Executive oversight will be provided by Matthew Brey, President, who will serve as the primary point of contact for contract matters, client relations, pricing approvals, and overall quality assurance. Mr. Brey will remain actively involved throughout the contract term to ensure performance standards and City expectations are consistently met.

Daily operations and service coordination will be managed by David Northup, Project Manager, who will oversee scheduling, dispatching field crews, procurement of materials, status updates with City representatives, and tracking of active work orders.

This role ensures timely response to both routine and emergency requests.

Field execution will be directed by Hector Gonzalez, Superintendent, who will supervise manpower, crew assignments, jobsite safety, productivity, and completion of assigned tasks. Mr. Gonzalez will coordinate directly with the Project Manager to prioritize service calls and maintain efficient field operations.

Electrical work in the field will be led by Jose Gonzalez, Foreman / Journeyman Electrician, who will oversee troubleshooting, repairs, installations, testing, and code-compliant completion of electrical assignments. Additional electricians, apprentices, and support staff will be assigned as needed based on workload and project complexity.

Administrative support will be provided by office personnel responsible for invoicing, certified payroll, insurance certificates, compliance documentation, and service call intake. This support structure ensures accurate recordkeeping and efficient contract administration.

This team organization provides clear lines of responsibility, fast decision-making, and the staffing flexibility necessary to successfully deliver on-call electrical services for the City.
404
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
The following chart reflects MBE Construction’s overall company organizational structure.

Personnel assigned specifically to the City of Palm Desert contract are identified in Section 3.1 and 3.2.
405
406
Marquel Dopp
Beaumont, CA
Professional Profile
Experienced construction administrative professional supporting public works and municipal service contracts. Skilled in office coordination, service dispatch support, scheduling assistance, document control, vendor communication, certified payroll support, insurance compliance, invoicing, and day-to-day operational support. Proven ability to assist project management teams in fast-paced on-call service environments requiring urgency, organization, and accurate communication. Experienced in supporting multiple concurrent projects while maintaining professional client service standards.

Core Competencies
• Service Call Intake and Scheduling Support
• Office Administration
• Contract Documentation
• Invoicing and Billing Support
• Insurance Certificates and Compliance Tracking
• Vendor / Supplier Coordination
• Customer Service and Communications
• File Management and Recordkeeping
• Public Works Administrative Support
• Microsoft Office / Outlook / Excel / Word
Employment Summary
• Office Assistant / Administrative Support, M. Brey, Inc. dba MBE Construction • Administrative / Customer Service Support Roles
Experience
407
M. Brey, Inc. dba MBE Construction – Office Assistant / Administrative Support Provide daily administrative support for on-call construction and maintenance operations serving public agencies throughout Southern California. Responsibilities include assisting with service request intake, coordinating schedules, preparing documents, processing invoices, maintaining project files, tracking insurance and subcontractor compliance items, and supporting management staff with active contracts. Assists in communication between office personnel, field staff, vendors, and clients to ensure timely completion of assignments.

Administrative / Customer Service Support
Provided customer service, scheduling, data entry, phone support, document preparation, and office coordination in professional office environments. Developed strong organizational skills, communication ability, and attention to detail while supporting daily business operations.

Education
High School Diploma
Skills
• Strong Organizational Skills
• Multi-Tasking and Prioritization
• Professional Communication
• Scheduling Coordination
• Accurate Data Entry
• Team Support
• Time Management
• Problem Solving
• Dependable and Detail Oriented
408
409
410
Skylar Shaver
Journeyman Electrician
M. Brey, Inc. dba MBE Construction
Professional Summary
Skylar Shaver is a State of California Certified Journeyman Electrician with over five years of service at M. Brey, Inc. dba MBE Construction. He brings extensive hands-on experience in commercial, municipal, and public works electrical installations. Skylar is known for his precision, efficiency, and commitment to maintaining safety and code compliance in every project he undertakes. His work consistently meets MBE Construction’s high standards of quality and reliability.

Areas of Expertise
• Electrical troubleshooting and repair
• Installation of conduit, lighting, and power distribution systems • Panel upgrades and service connections
• Generator and transfer switch installations
• Low-voltage and control wiring
• Underground and overhead electrical systems
• Reading and interpreting blueprints and single-line diagrams • Title 24 and CEC compliance
• Coordination with inspectors and municipal staff
• Safe work practices per NFPA 70E and OSHA standards
Experience
M. Brey, Inc. dba MBE Construction – Moreno Valley, CA
Journeyman Electrician | 2019 – Present
- Performs all phases of electrical construction and maintenance for public works and oncall contracts. - Installs and maintains electrical systems for city facilities, pump stations, lighting, and street infrastructure.
- Coordinates with project managers, inspectors, and engineering staff to ensure proper installation and timely completion.
- Trains and mentors apprentices enrolled in state-approved programs. 411
- Maintains accurate documentation, daily reports, and adherence to safety policies. - Supports multi-trade projects, providing assistance with mechanical and general construction as required.

Education & Certifications
• California Certified Journeyman Electrician, State of California • OSHA 30-Hour Construction Safety Training
• NFPA 70E Electrical Safety Certification
• First Aid / CPR Certified
Notable Projects
• City of Palmdale – On-Call Electrical Contract – Installation, troubleshooting, and maintenance of electrical systems for city facilities and street lighting. • City of Moreno Valley – Utilities Facility Upgrades – Assisted with power distribution and conduit routing for mechanical equipment.
• City of San Bernardino – Electrical Improvements – Panel and lighting upgrades for public safety buildings.

References
Available upon request.
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Randy Costelow
Í ċôťƅ i ƯĖèôŘ
M. Brey, Inc. dba MBE Construction
Professional Summary
Í Ĳî ƅ
ĺ Ŝťôīĺ ſ ŜôŘŽôŜÍ ŜÍ ċôťƅ i ƯĖèôŘċĺ Řa ϟŘôƅϠIĲèϟî æÍ a ( ĺ ĲŜťŘŪèťĖĺ Ĳ Í Ĳî ĖŜ
responsible for overseeing company safety programs, jobsite compliance, and risk management procedures for public works, municipal, and commercial construction projects. He brings extensive field knowledge and practical experience in construction safety, hazard recognition, employee accountability, and implementation of safe work practices in active jobsite environments. Randy is committed to maintaining a culture of ŜÍ ċôťƅ ſ ēĖīô ŜŪŕ ŕ ĺ ŘťĖĲČôƯĖèĖôĲť ŕ Řĺ Ĥôèť î ôīĖŽôŘƅ Í Ĳî ŘôČŪīÍ ťĺ Řƅ èĺ ı ŕ īĖÍ Ĳèôϟ Areas of Expertise
• Construction jobsite safety management
• OSHA compliance and safety program implementation
• Hazard identification and risk mitigation
• Tailgate meetings and employee safety training
• Incident prevention and corrective action procedures
ϩ ŘÍ ƯĖè èĺ ĲťŘĺ ī Í Ĳî ŕ ôî ôŜťŘĖÍ Ĳ ŜÍ ċôťƅ èĺ ĺ Řî ĖĲÍ ťĖĺ Ĳ • PPE compliance and enforcement
• Ladder, lift, and fall protection safety practices
• Utility work zone safety
• Documentation, inspections, and safety reporting
Experience
M. Brey, Inc. dba MBE Construction – Beaumont, CA
Í ċôťƅ i ƯĖèôŘиŘôŜôĲť
413
Oversees field safety procedures for public agency on-call contracts, electrical service work, and general construction assignments.

Conducts routine and random jobsite inspections to verify compliance with OSHA requirements and company safety standards.

Coordinates employee safety meetings, toolbox talks, and project-specific hazard awareness training.
ôŽĖôſ Ŝſ ĺ Řħ Í èťĖŽĖťĖôŜĖĲŽĺ īŽĖĲČôƄèÍ ŽÍ ťĖĺ ĲϠôĲôŘČĖƏôî ŜƅŜťôı ŜϠťŘÍ ƯĖè ôƄŕ ĺ ŜŪŘôϠôīôŽÍ ťôî work, and confined conditions to ensure proper controls are in place.

Assists project managers and field supervisors with site-specific safety planning and incident prevention measures.

Maintains safety documentation, reports, training records, and corrective action follow-up.

Supports crews in maintaining professional, organized, and safe work environments on all assignments.

Education & Certifications
• OSHA 30-Hour Construction Safety Training
• First Aid / CPR Certified
ϩ ŘÍ ƯĖè
ĺ ĲťŘĺ ī ϯ® ĺ Řħ¾ĺ Ĳô Í ċôťƅ ( Ƅŕ ôŘĖôĲèô
• Fall Protection Safety Training
• Job Hazard Analysis / Field Safety Procedures
Notable Projects
• City of Moreno Valley – Municipal Facility Improvements – Jobsite safety monitoring for occupied public facilities and active construction areas. • Caltrans District 8 – Field Support Projects – Í ċôťƅ èĺ ĺ Řî ĖĲÍ ťĖĺ Ĳ ċĺ ŘŘĺ Í î ŜĖî ô Í Ĳî ťŘÍ ƯĖèadjacent work activities.

References
Available upon request.
414
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
Section 4 – Technical Approach, Service Methodology, and Availability

4.1 Approach to Delivering On-Call and As-Needed Services MBE Construction delivers on-call and as-needed electrical services through a structured service model focused on responsiveness, technical capability and qualified staffing. Our objective is to provide the City with dependable electrical support that integrates efficiently with daily municipal operations while minimizing disruption to staff, facilities, and the public. Each request is reviewed upon receipt to determine urgency, scope, site conditions, and required manpower so that the appropriate personnel, tools, equipment, and materials can be assigned from the outset.

Routine service requests are scheduled promptly in coordination with City representatives, while urgent matters receive immediate priority attention. Throughout each assignment, MBE maintains communication regarding scheduling status, field findings, additional recommendations, and completion progress. This organized approach allows the City to rely on a contractor capable of handling both planned maintenance work and unexpected service needs efficiently.

4.2 Procedures for Troubleshooting and Diagnosing Electrical Issues MBE follows a systematic troubleshooting process designed to identify electrical issues quickly, safely, and accurately. Field personnel begin with a site assessment, review of reported symptoms, visual inspection of equipment, and verification of safe working conditions prior to testing. Our electricians utilize calibrated meters, circuit tracers, testing instruments, and diagnostic tools to evaluate breakers, panels, conductors, controls, timers, lighting systems, receptacles, motors, and related infrastructure.

Once the source of the issue is identified, findings are communicated clearly to the City representative along with recommended corrective actions, material needs, and estimated repair duration if authorization is required. This methodical approach reduces unnecessary downtime, avoids guesswork, and helps ensure cost-effective repairs that address the actual cause of the problem rather than only the symptoms.

4.3 Approach to Repairs, Replacements, and Installations MBE performs repairs, replacements, and new installations using qualified electricians, proper materials, and industry-standard work practices. Our goal is to restore safe and reliable operation as quickly as possible while maintaining quality workmanship and code compliance. Damaged, worn, or obsolete components are replaced using 415
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
compatible and approved materials suited to the existing system and operating conditions. If required by the City or when additional scope is identified, a cost proposal will be prepared and submitted for review and approval prior to any work being performed.

New installations are coordinated carefully to minimize disruption to occupied buildings, public access areas, parks, streetscapes, and active municipal operations. Work areas are maintained in a clean and organized condition, and completed installations are tested for proper operation prior to closeout. Whether the assignment involves a small repair or a larger improvement, MBE approaches each task with the same level of professionalism and attention to detail.

4.4 Experience with LED Conversions, Panel Upgrades, and Conduit Work MBE has extensive experience with LED lighting conversions, panel upgrades, breaker replacements, circuit additions, conduit installations, and related electrical modernization work. Our crews routinely replace outdated fluorescent, HID, and other inefficient lighting systems with energy-efficient LED fixtures and lamps that improve performance while reducing maintenance and operating costs.

We also perform panel upgrades involving new breakers, load balancing, circuit tracing, feeder modifications, and replacement of damaged or obsolete equipment. Conduit work includes new exposed and concealed conduit installations, underground conduit repairs, pull box connections, rerouting damaged systems, and infrastructure improvements for facilities, parks, parking lots, and exterior lighting systems. This experience allows MBE to provide practical solutions for both maintenance needs and long-term facility upgrades.

For the City of Moreno Valley Conference & Recreation Building, MBE Construction provided a comprehensive interior lighting retrofit for an active public facility requiring careful coordination and minimal disruption to ongoing operations. The project included removal and replacement of existing interior lighting with Title 24 compliant LED fixtures, replacement of gymnasium high-bay lighting, installation of new exit signs, emergency lighting controls integrated with the standby generator system, replacement of building lighting controls, and wireless occupancy sensors throughout designated areas. The work required testing, system startup, and coordination within an occupied municipal facility, demonstrating MBE’s experience delivering code-compliant lighting upgrades, energy-efficient retrofits, and control system improvements for public agency clients.
416
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926

4.5 Approach to Small-Scale Lighting Design
MBE assists with practical small-scale lighting improvements for pathways, parking areas, parks, building exteriors, offices, maintenance yards, and other public-use spaces. Our approach begins with evaluating existing site conditions, lighting deficiencies, safety concerns, and operational objectives. Based on these observations, we provide recommendations for fixture types, mounting methods, control strategies, and cost-effective layouts that improve illumination and usability.

Where appropriate, we consider energy efficiency, maintenance accessibility, fixture durability, and long-term replacement costs when recommending lighting improvements.

When appropriate, MBE will coordinate with the lighting manufacturer or supplier representative to assist with LED upgrade recommendations, fixture selection, photometric guidance, and compatibility with existing systems. This practical field-based approach helps the City implement lighting enhancements that are functional, maintainable, and aligned with operational needs.

4.6 Quality Control Practices
Quality control is maintained through active supervision, experienced foremen, and management oversight throughout each assignment. Workmanship is monitored during installation to verify proper materials, accurate layout, secure mounting, neat conduit routing, labeling, and conformance with project requirements. We will review materials prior to the start of work, review job conditions before work begins, and inspect workmanship during the course of construction and again after completion to verify that all work has been performed properly and systems operate as intended.

Supervisory personnel perform field checks during active work and again upon completion to verify that systems operate properly and the finished product meets expectations. MBE management also conducts periodic site visits and closeout reviews as part of our quality assurance process. If adjustments or corrective items are identified, they are addressed promptly. This commitment to internal quality control helps ensure reliable results, professional presentation, and consistent service for the City.

4.7 Safety Procedures and Compliance with Applicable Codes Safety is a core operating principle of MBE Construction. All work is performed in accordance with applicable OSHA requirements, California Electrical Code, local regulations, and accepted industry safety standards. Prior to beginning work, crews 417
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
evaluate site conditions, identify hazards, confirm utility locations when necessary, and establish safe work zones appropriate to the assignment.

Technicians utilize proper personal protective equipment, lockout/tagout procedures, ladder safety practices, traffic control measures when required, and safe testing procedures for energized systems when necessary. Supervisors reinforce safe work practices in the field and monitor compliance throughout each assignment. MBE’s Safety Officer will also conduct random unannounced site visits to observe field operations, verify compliance with safety requirements, and reinforce safe work practices. MBE is committed to protecting City staff, the public, and our employees while delivering efficient and professional electrical services. 418
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
Section 5 – Service Availability and Response Plan

5.1 Dispatch Procedures and Communication Protocols
MBE Construction maintains a structured and responsive dispatch system designed to ensure all service requests are received, documented, prioritized, and assigned without delay. During normal business hours, calls and emails are managed through office personnel and project management staff who coordinate directly with field supervisors and electricians. After hours, weekends, and holidays, urgent requests are routed to designated management personnel for immediate action. Someone is always on call, and as soon as a service request is received, our on-call personnel will be dispatched based on the nature and urgency of the issue. The City will receive clear communication regarding receipt of requests, estimated response times, scheduling status, and completion updates to ensure full visibility throughout each assignment.

This organized dispatch process allows MBE to respond efficiently to both routine maintenance requests and urgent electrical service needs.

5.2 Ability to Meet Required Response Times

5.2.1 24/7 Emergency Service
MBE Construction is fully capable of providing twenty-four (24) hour, seven (7) day emergency electrical service throughout the contract term.

MBE’s office is located approximately 37 miles from Palm Desert City Hall, allowing our team to mobilize personnel and resources efficiently to help meet the City’s response requirements. Our management team, field supervisors, and electricians are available to respond to outages, hazardous conditions, equipment failures, lighting issues, breaker problems, and other urgent situations affecting City operations or public safety.

Emergency calls are treated with the highest priority, with immediate coordination of manpower, vehicles, tools, and materials necessary to restore service quickly and safely. Our emergency response procedures are designed to stabilize conditions, protect public safety, and minimize operational downtime for City facilities.

5.2.2 Two (2) Hour Emergency Response Capability
419
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
MBE maintains designated management contacts, on-call field personnel, stocked service vehicles, and established communication procedures to ensure emergency requests can be received and acted upon immediately during business hours, after hours, weekends, and holidays. Phone service is always available to receive urgent calls, coordinate response efforts, and provide immediate communication with City representatives.

Upon receipt of an emergency request, calls are prioritized based on urgency, life-safety concerns, operational impact, and the resources required to stabilize the condition. Qualified personnel can be notified and dispatched within the required two (2) hour notice period with the tools, equipment, and materials necessary to respond effectively. This organized response structure allows MBE to provide dependable emergency support whenever urgent electrical service is needed.

5.2.3 Forty-Eight (48) Hour Standard Response Capability Routine, non-emergency service requests are scheduled promptly and coordinated with City representatives to meet the required forty-eight (48) hour response timeframe whenever applicable. Work orders are tracked from receipt through completion to ensure timely scheduling, material procurement, labor assignment, and efficient execution. MBE understands the importance of dependable scheduling and consistent follow-through for day-to-day maintenance operations.

5.3 Staffing and Availability
MBE maintains experienced management personnel, electricians, field supervisors, and administrative staff dedicated to supporting contract operations for the City of Palm Desert. Resources are organized to provide dependable service coverage during regular business hours while also maintaining after-hours emergency readiness. Our staffing model allows work to be assigned efficiently based on skill set, workload, urgency, and the specific requirements of each service request, ensuring qualified personnel are available for both routine and priority assignments.

Emergency requests receive immediate priority attention. MBE maintains on-call personnel, service vehicles, communication systems, and field resources capable of mobilizing quickly to respond to urgent service calls throughout Palm Desert. Additional manpower can be assigned as needed to address 420
408 Elm Ave.

Beaumont, CA 92223
CSLB #581224 DIR #1000005926
simultaneous requests, larger assignments, accelerated schedules, or extended work hours while maintaining dependable response times and service quality.

MBE currently employs a staff of approximately 35 employees and maintains the operational capacity to provide additional personnel when workloads increase or specialized support is required. Through active supervision, management oversight, and flexible staffing capacity, MBE is prepared to provide reliable electrical support throughout the contract term.
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Project Name: On-Call General Contractor Services
Owner/Agency: City of Moreno Valley – Fleet & Facilities Maintenance Division Location: 25180 Santiago Dr, Moreno Valley, CA 92551
Contract Value: $37,000,000
Contract Term: January 1, 2022 – December 31, 2026
Project Description:

MBE Construction provides on-call general contracting services to the City of Moreno Valley supporting a wide range of municipal facilities, including public buildings, parks, and infrastructure. Services are delivered on a task-order basis and include both planned and emergency work assignments.

Scope of Work:

Work includes multi-trade construction services such as demolition, concrete, framing, drywall, painting, electrical, plumbing, HVAC coordination, and facility repairs. Projects range from small repairs to larger capital improvement tasks, all performed while maintaining active City operations.

Key Responsibilities:

MBE Construction serves as the prime contractor responsible for project management, cost estimating, scheduling, subcontractor coordination, and quality control. The team responds to service requests on an on-call basis, often under expedited timelines, and coordinates closely with City staff to prioritize and execute work efficiently.

Relevance to Palm Desert Contract:

This contract demonstrates extensive experience performing on-call municipal construction and maintenance services under a task-order structure with variable scopes, rapid response requirements, and multi-discipline coordination. MBE Construction’s ability to manage numerous concurrent assignments aligns directly with the City of Palm Desert’s expectations for responsive, efficient, and dependable on-call contractor support.

Client Reference:

Joseph Mattox
Fleet & Facilities Maintenance Division Manager
Phone: 951-413-3745
Email: [email protected]
422

Project Name: On-Call Street Light Pole Replacement
Owner/Agency: City of Palmdale – Public Works Maintenance Location: 38300 Sierra Highway, Palmdale, CA 93550
Contract Value: $500,000
Contract Term: Ongoing through June 30, 2026
Project Description:

MBE Construction is providing on-call construction services to the City of Palmdale for the replacement and maintenance of street light poles throughout the City. Work includes removal of damaged or non-compliant poles, installation of new poles and foundations, conduit and wiring modifications, and coordination with City staff for scheduled and emergency response services.

Scope of Work:

The scope consists of demolition and disposal of existing street light poles, installation of new poles, concrete foundations, conduit, conductors, pull boxes, and associated electrical components. Work is performed under active public conditions requiring traffic control, safety compliance, and coordination with ongoing City operations.

Key Responsibilities:

MBE Construction serves as the prime contractor and is responsible for project management, scheduling, procurement, subcontractor coordination (if applicable), and quality control. The team provides rapid response for urgent repairs and ensures all work complies with applicable codes and City standards.

Relevance to Palm Desert Contract:

This project demonstrates MBE Construction’s experience performing on-call municipal electrical construction services involving multiple trades, fast response times, and coordination with City agencies. The contract structure and delivery closely align with Palm Desert’s on-call electrical service needs, including task-based assignments, varying scopes of work, emergency response capability, and ongoing maintenance support.

Client Reference:

Jeffrey Newman
Public Works | Maintenance
Phone: 661-810-4539
Email: [email protected]
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Project Name: On-Call Electrical Repair Services
Owner/Agency: Caltrans – District 8 (San Bernardino County) Location: 175 W. Cluster Street, San Bernardino, CA 92408 Contract Value: $396,081
Contract Term: January 6, 2026 – Ongoing
Project Description:

MBE Construction provides on-call electrical repair services for Caltrans District 8, supporting maintenance and repair of transportation-related electrical infrastructure. Work is performed on a task-order basis and includes both scheduled and emergency response services.

Scope of Work:

Scope includes troubleshooting and repair of electrical systems, replacement of components, conduit and wiring installation, and maintenance of roadway-related electrical infrastructure. Work is performed in active public environments requiring coordination with Caltrans personnel and adherence to strict safety and traffic control requirements.

Key Responsibilities:

MBE Construction serves as the prime contractor responsible for project management, field coordination, scheduling, and quality control. The team responds to service requests under expedited timelines and ensures compliance with Caltrans standards and applicable codes.

Relevance to Palm Desert Contract:

This project demonstrates experience delivering on-call electrical services for a public agency, including rapid response, multi-task coordination, and execution of varying scopes of work. The contract structure and performance requirements align closely with the City of Palm Desert’s need for dependable on-call electrical maintenance, repair services, emergency response, and efficient task-order delivery.

Client Reference:

Jason Gonsman
District 8 TOSNET Manager
Phone: (909) 519-9179
Email: [email protected]
424
City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Director of Public Works
73-510 Fred Waring Drive, Palm Desert, CA 92260
[URBAN WORK CONSTRUCTION, INC.] 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
Urban Work Construction, Inc. Response

CONTACT INFORMATION
Company:

Urban Work Construction, Inc.

Email:
[email protected]
Contact:

James Henderson
Address:
39203 Leopard Street
Ste. B
Palm Desert, CA 92211
Phone:
(760) 321-3770
Website:
callurbanworx.com
Submission Date:

Apr 28, 2026 11:38 AM (Pacific Time)
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ADDENDA CONFIRMATION
No addenda issued

QUESTIONNAIRE

Failure to submit a complete proposal or to follow the required format may result in the proposal being deemed non-responsive.

Section 2: Firm Qualifications and Experience
• Firm overview and the years in business
• Experience providing similar service as described in this RFP • Relevant project experience (preferably municipal)
• Include copies of licenses and certifications
Section 3: Key Personnel and Staffing
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Section 5: Service Availability and Response Plan
• Dispatch procedures and communication protocols
• Ability to meet required response times:
o 24/7 emergency service
o Two (2) hour emergency response
o Forty-eight (48) hour standard response
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• Staffing and availability
Submittal_April_28_2026.pdf

3. Non-Collusion Declaration*
The undersigned declares:

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

The Proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The Proposal is genuine and not collusive or sham. The Proposer has not directly or indirectly induced or solicited any other Proposer to put in a false or sham proposal. The Proposer has not directly or indirectly colluded, conspired, connived, or agreed with any Proposer or anyone else to put in a sham bid, or to refrain from proposing. The Proposer has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the Proposal Price of the Proposer or any other Proposer, or to fix any overhead, profit, or cost element of the Proposal Price, or of that of any other Proposer. All statements contained in the Proposal are true. The Proposer has not, directly or indirectly, submitted his or her Proposal Price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, 428
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On-Call Electrical Services
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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.

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

Confirmed

4. Enter your valid CA Contractors State License Board (CSLB) number* Please enter your License Number here. This will be verified against the state database. 1066712
Click to Verify Value will be copied to clipboard

5. Enter your California Department of Industrial Relations (DIR) Registration number* Please enter your Public Works Contractor DIR Number. This will be verified against the state database. 2000008490
Click to Verify Value will be copied to clipboard

6. Type of Business*
C Corporation (if corporation, two signatures are required)

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

N/A
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N/A

Maximum response length: 5000 characters
N/A

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

1. Full Name

2. Title

3. Physical Business Address

4. Email Address

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. 430
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Sole Proprietorship, Non-Profit, Single LLC: Only the one signature is necessary.

John Doyle
CFO
39203 Leopard Street, Suite B, Palm Desert, CA 92211
[email protected]
760-321-3770 or Cell 760-391-0590
James Henderson
CEO
39203 Leopard Street, Suite B, Palm Desert, CA 92211
[email protected]
760-321-3770 or Cell 951-201-1204

PRICE TABLES

HOURLY RATES
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Line Item Description Unit of Measure Unit Cost
1 Supervisor/Foreman - Standard Rate Hour $195.00
2 Supervisor/Foreman - Emergency/After-Hours Rate Hour $275.00 3 Supervisor/Foreman - Weekend/Holiday Rate Hour $325.00 4 Journeyman - Standard Rate Hour $165.00
5 Journeyman - Emergency/After-Hours Rate Hour $245.00
6 Journeyman - Weekend/Holiday Rate Hour $295.00
7 Apprentice - Standard Rate Hour $120.00
8 Apprentice - Emergency/After-Hours Rate Hour $150.00
9 Apprentice - Weekend/Holiday Rate Hour $180.00
10 Laborer - Standard Rate Hour $120.00
11 Laborer - Emergency/After-Hours Rate Hour $150.00
12 Laborer - Weekend/Holiday Rate Hour $180.00
432
Date: April 28, 2026
From: Urban Worx Construction, Inc.
39203 Leopard St., Ste. B
Palm Desert, CA 92211
Phone: (760) 321-3770
Email: [email protected]
To: Management Analyst
City of Palm Desert – PW Operations & Maintenance
73-510 Fred Waring Drive
Palm Desert, CA 92260
RE: Proposal for ON-Call Electrical Services – RFP No. 2026-RFP-014 Dear Management Analyst,
Urban Worx Construction, Inc. is pleased to submit our proposal to provide On-Call Electrical Services for the City of Palm Desert and the Palm Desert Housing Authority. As a Palm Desert-based contractor with a C-10 Electrical License and over 20 years of experience in electrical repair, upgrades, and maintenance, we are fully prepared to meet the City’s needs for timely, professional, and code-compliant services.

Our in-house licensed electricians and service team specialize in municipal facility work, ensuring rapid response, consistent quality control, and adherence to all prevailing wage and safety requirements. Our approach focuses on:
• Rapid response dispatch capability and a two-hour emergency call-back • Cost-effective self-performance to reduce subcontracting delays • Detailed documentation with photo and status reports via our Service Fusion platform
• Proactive safety practices to protect staff, residents, and City property I, James Henderson, President of Urban Worx Construction, Inc., am authorized to negotiate agreement terms and compensation. You may reach me directly at (760) 321- 433
3770 or [email protected]. My business partner, John Doyle, CFO/COO, is also available at [email protected].

We appreciate your consideration and look forward to the opportunity to serve as a trusted partner for the City’s electrical service needs.

Sincerely,
James Henderson
President
Urban Worx Construction, Inc.
434
Firm Qualifications and Experience
Background
Urban Worx Construction, Inc. is a full-service construction and specialty trade contractor headquartered in Palm Desert, CA. Founded in 2019, we provide electrical, HVAC, plumbing, and general construction services to over 4,000 clients in the Coachella Valley.

Our C-10 licensed electricians handle a full spectrum of electrical work — from troubleshooting and panel upgrades to LED lighting conversions and emergency power restoration.

We self-perform nearly all electrical services in-house, reducing subcontractor reliance and allowing for faster response times, tighter cost control, and consistent workmanship. Our municipal experience includes both scheduled maintenance and rapid-response emergency calls for public agencies, property management groups, and commercial facilities.

Licenses Held:
• C-10 Electrical Contractor – CA Lic. #1066712
• DIR Registration #2000008490
• Additional Classifications: B – General Building, C-20 HVAC, C-36 Plumbing, C16/D35 Pool & Spa Key Personnel Experience
James Henderson
President, Urban Worx Construction, Inc.
��(760) 321-3770 | ✉ [email protected]
James Henderson is an accomplished business executive with over 20 years of experience in the construction, insurance, and financial sectors. As President of Urban Worx Construction, he has led the company's rapid growth by delivering exceptional service across general construction and specialty trades. James specializes in project oversight, client relationship management, and risk mitigation. His leadership has guided successful residential and commercial construction projects throughout Southern California.

Past roles include:
• Founder of Burton Development, Inc., where he led homebuilding operations including land acquisition, planning, and construction. 435
• Executive at Robert Henderson Construction, overseeing warranty work for major homebuilders and managing field crews.
• MBA and BA in Business Administration from California State University, San Bernardino.

John Doyle
Director of Operations / Co-Principal
��(760) 391-0590 | ✉ [email protected]
John Doyle is a licensed contractor in General Building, Plumbing, HVAC, Electrical, and Pool & Spa Maintenance in both California and Arizona. He has over 20 years of hands-on and managerial experience in construction and facilities management, having led teams at Ameripan Inc. and served in various roles with the State of California. His past roles include Director of Operations at Ameripan Inc, Codes and Standards Administrator for the California Department of Housing and Community Development, and Stationary Engineer for state facilities including Cal Fire and Ironwood State Prison.

His extensive municipal experience includes serving on commissions for the City of Indio and overseeing compliance with the California Health & Safety Code. John is highly experienced in long-term infrastructure planning, budgeting, inspection enforcement, and workforce training.
• AS in Business Administration, College of the Desert
• Holds EPA Universal Freon Certification and multiple technical certifications 436
Project References

1. Boys & Girls Club Remodel Project
Client: Resort Construction Services
Contact: Jerry Loces, Owner
��(760) 778-8862
Role: Subcontractor
• Provided panel upgrades, breaker replacements, and new circuit runs for remodeled spaces.
• Integrated lighting controls and energy-efficient fixture installations.

2. Multi-Site Facility Maintenance – Abby Solutions (National Service Provider) Client: Abby Solutions
Contact: Carl Benson, Dispatch Manager
��(201) 301-8827
Role: Service Provider
• Responded to multiple after-hours outages; repaired damaged feeders, replaced breakers, and restored power within same-day window.

3. National Home Warranty Providers – Multi-Trade Services Clients Include:
• American Home Shield
• Fidelity National Home Warranty
• Old Republic Home Protection
• Cinch Home Warranty
• Choice Home Warranty
• First American Home Warranty
Scope: Urban Worx provides a wide array of services for residential customers under national warranty plans, re-wiring, equipment replacements, electrical troubleshooting and 437
upgrades, and lighting solutions. These programs require adherence to strict warranty criteria, quick turnaround on diagnostics, and professional reporting. Contact details are available upon request.
438
Firm Staffing & Key Personnel
Urban Worx Construction, Inc. employs a skilled and well-rounded team with the capacity to self-perform the vast majority of trades listed in the City’s Scope of Services. While our company was officially established in 2019, our core staff has worked together fo r ma ny years across multiple companies spanning over 10+ years, building a strong foundation of teamwork, trust, and shared experience. This long-standing collaboration enables our team to operate with flexibility, respond rapidly, and consistently deliver high-quality maintenance and repair services.

Team Organization
Executive & Management
• James Henderson – President / Primary Contact
• John Doyle – Co-Principal / Director of Operations
• Mike Doyle – Operations Manager
• Vacant (John Doyle Filling in) – Outside Service Manager Office Support Staff
• Maribel Orellana – Office Coordinator
• Taryn Rodriguez – Office Coordinator
Lead Field Technicians
• John Doyle – Electrical Contractor (Foreman)
• Armando Ramirez – Lead Electrical Technician
(Journeyman)
• Erik Reyes – Electrical Technician (Journeyman)
• Thaniel Lee – Electrical Technician (Apprentice)
• Luis Salazar – Lead Installer
Key Personnel Bios
Mike Doyle – Operations Manager
Mike Doyle manages the day-to-day operations of Urban Worx, ensuring smooth 439
coordination across HVAC, plumbing, and electrical services. He oversees both field and office teams to ensure dispatch efficiency, quality service delivery, and strong internal communication. His operational oversight supports customer satisfaction and project efficiency across all departments.

Vacant (John Doyle Filling In) – Outside Service Manager John Doyle is responsible for quality control and performance in the field. He ensures technician workmanship meets Urban Worx standards, conducts jobsite walkthroughs, and serves as a liaison between customers, technicians, and management. His leadership ensures consistency, safety, and professionalism across field operations.

Maribel Orellana – Office Coordinator
Maribel oversees technician scheduling, customer service communications, and parts procurement. Her role supports operational continuity and ensures fast, responsive service delivery, contributing to Urban Worx’s reputation for reliability.

Taryn Rodriguez – Office Coordinator
Taryn plays a vital role in managing logistics, dispatch coordination, and material tracking.

She supports internal operations by ensuring clear communication between office and field teams and contributes to a high level of customer service.

Armando Ramirez – Lead Electrical Technician
Joshua oversees all electrical service operations. He ensures compliance with electrical codes, oversees upgrades, and mentors electricians on both residential and commercial job sites.

Erik Reyes - Lead Electrical Technician
Erik oversees all electrical service operations. He ensures compliance with electrical codes, oversees upgrades, and mentors electricians on both residential and commercial job sites.

Luis Salazar – Lead Installer
Luis specializes in installations, including electrical panels, lighting, and components. He leads installation crews from layout through commissioning, ensuring efficient and clean installations.
440
Technical Approach, Service Methodology, and Availability Urban Worx Construction, Inc. proposes a highly responsive, well-coordinated, and costeffective approach to executing facility repairs. Our method emphasizes self-performance of critical trades, proactive facility evaluations, detailed documentation, and alignment with the City’s long-term maintenance goals.

1. Initial Assessment & Task Confirmation
• Receive service request from City staff
• Dispatch appropriate crew based on urgency (emergency vs. standard)

2. Execution
• Arrive fully equipped with tools, materials, and PPE
• Perform troubleshooting, repairs, or installations per scope • Use lockout/tagout and OSHA-compliant safety measures

3. Use of Technology and Asset Management Integration
Urban Worx utilizes Service Fusion, a cloud-based CRM and field service platform, to track, document, and manage all work orders. Key features include:
• Time-stamped photo documentation
• Equipment tracking by asset and location
• Technician job notes and status updates
• Integration with mobile devices for field reporting
We are fully open to using the City’s Asset Management Software and will work with the City’s team to ensure compatibility between platforms. Our technicians are equipped with smartphones and tablets to input data directly on site. If selected to use the City’s platform, we are committed to entering required data (location, materials used, work details, etc.) and submitting final reports in a timely manner.

4. Emergency Response and After-Hours Availability
Urban Worx has the internal capacity to respond to same-day emergency calls and is available for after-hours support when needed. Our service department is staffed to manage urgent dispatches, and our field technicians are trained to respond quickly, efficiently, and safely to minimize disruptions.
441

5. Jobsite Safety and Public Protection
Safety is a cornerstone of our operations. We have written safety protocols and jobsite preparation procedures for every work site. These include:
• Use of signage, barriers, cones, and dust protection
• Protective measures for adjacent equipment and public areas • Same-day debris removal and site clean-up
John Doyle is also our Outside Service Manager, also serves as our Dedicated Safety Manager. He is responsible for safety oversight on all projects, conducting jobsite audits, and ensuring compliance with OSHA standards and City requirements.

6. Communication and Collaboration
Urban Worx values transparency and professionalism in communication. We maintain a direct line of communication between our field technicians, office coordinators, and City staff to ensure timely updates, rapid resolution of issues, and clear documentation throughout the duration of each task or project.
442
Urban Worx Construction, Inc. – Hourly Labor Rates
Line
Item Description Hourly Rate
1 Supervisor/Foreman - Standard Rate $195
2 Supervisor/Foreman – Emergency/After-Hours Rate $275
3 Supervisor/Foreman – Weekend/Holiday Rate $325
4 Journeyman – Standard Rate $165
5 Journeyman – Emergency/After-Hours Rate $245
6 Journeyman – Weekend/Holiday Rate $295
7 Apprentice – Standard Rate $120
8 Apprentice - Emergency/After-Hours Rate $150
9 Apprentice - Weekend/Holiday Rate $180
10 Laborer – Standard Rate $120
11 Laborer - Emergency/After-Hours Rate $150
12 Laborer – Weekend/Holiday Rate $180
443
References

1. Desert Recreation District – ICC HVAC Replacement
Client: RivCo Mechanical Services, Inc.

Contact: Richard Sang, General Manager
(760) 200-9898
DIR Project No.: 23-10-002-PW
Role: Subcontractor
Contract Price: $154,383.17
Urban Worx served as a subcontractor on the Desert Recreation District’s ICC HVAC Replacement project.

Our team installed over 450 linear feet of 6” A53 Type B black steel pipe with full insulation and PVC jacketing between the mechanical room and the newly installed chiller. We also constructed the cold water loop within the mechanical room, including installation of air separators, expansion tanks, and water pumps. The project required coordination with multiple trades and meticulous attention to detail to maintain functionality of the facility during upgrades.

2. Boys & Girls Club Remodel Project
Client: Resort Construction Services
Contact: Jerry Loces, Owner
(760) 778-8862
Role: Subcontractor
Contract Price: $315,000
Urban Worx provided multi-trade services for a major remodel of the Boys & Girls Club. Our scope included demolition, framing, plumbing, HVAC, electrical, finish carpentry, and general construction support. The work was performed under tight timelines and required close coordination with the general contractor to meet inspection milestones and maintain site safety.

3. Package Unit Disconnect – 41990 Cook St., Palm Desert, CA Client: Roof Asset Management
Contact: Ron Winkle, Owner
(760) 813-9999
Role: Subcontractor
Contract Price: $22,000
Urban Worx removed and re-installed 22 rooftop package unit air conditioning systems at a commercial property in Palm Desert. This project included the safe removal and re-install of existing HVAC units to facilitate roof repairs under HVAC platforms. The project was delivered on schedule with minimal disruption to building tenants.
444

4. Multi-Site Facility Maintenance – Abby Solutions (National Service Provider) Client: Abby Solutions
Contact: Carl Benson, Dispatch Manager
(201) 301-8827
Role: Service Provider
Contract Price: Open
Urban Worx holds an ongoing service agreement with Abby Solutions, providing HVAC, plumbing, and general facility maintenance for commercial properties across the Coachella Valley. We regularly respond to dispatches for scheduled maintenance and emergency repairs. Services include HVAC diagnostics and repairs, plumbing leak mitigation, fixture replacements, and general facilities support.

5. National Home Warranty Providers – Multi-Trade Services Clients Include:
• American Home Shield
• Fidelity National Home Warranty
• Old Republic Home Protection
• Cinch Home Warranty
• Choice Home Warranty
• First American Home Warranty
Scope: Urban Worx provides a wide array of services for residential customers under national warranty plans, including HVAC maintenance and replacement, plumbing repairs, re-pipes, equipment replacements, electrical troubleshooting and upgrades, and pool equipment service. These programs require adherence to strict warranty criteria, quick turnaround on diagnostics, and professional reporting.

Contact details are available upon request.
445
446

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City of Palm Desert Staff Report
Meeting Date: June 25, 2026
Prepared By: Kevin Swartz, Project Manager
Department: Public Works
Subject: Approve Amendment No. C46142 to Contract No. C46140 with Desert Air Conditioning, Inc., for Heating, Ventilation, and Air Conditioning (HVAC) Preventive Maintenance, Project No. MFA00008
Recommendation

1. Approve Amendment No. C46142 to Contract No. C46140 with Desert Air Conditioning, Inc., in the amount of $118,592, and extend the contract term through June 30, 2027.

2. Increase the allowable extra work authorization for FY 2025-26 HVAC repairs and replacements from $75,000 to an amount not to exceed $125,000.

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

4. Authorize the City Manager or designee to approve said amendment and additional contract extensions in accordance with the agreement, including CPI-based adjustments as applicable.

5. Authorize the City Manager or designee to approve change orders for unforeseen conditions and additional service locations in an amount not to exceed $25,000, in accordance with Section 3.30.170 of Ordinance No. 1392.

Executive Summary
Staff recommends approval of Amendment No. 2 to Contract No. C46140 with Desert Air Conditioning, Inc., to extend HVAC preventive maintenance services through June 30, 2027, increase the annual base contract amount to $118,592, and increase annual extra work authorization to $125,000, to accommodate unanticipated repairs in FY 2025-26. The amendment will support continued maintenance of City HVAC systems, address aging equipment and unanticipated emergency repair needs, and help minimize service disruptions at City facilities.

Background
On August 24, 2023, the City Council awarded Contract No. C46140 to Desert Air Conditioning, Inc., for preventive maintenance services for Heating, Ventilation, and Air Conditioning (HVAC) systems at various City facilities. The contract was approved on an annual base amount of $106,028, with an additional $75,000 authorized annually for extra work.

The contract term was subsequently amended to extend it through June 30, 2026, with the option to extend the agreement for two additional one-year terms. 447

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Analysis
Staff recommends extending the contract term through June 30, 2027, to ensure the continued provision of HVAC preventive maintenance services across City facilities and support ongoing operational continuity.

Base Contract Increase
Desert Air Conditioning, Inc., has requested an adjustment to the annual base contract amount to account for increased labor, materials, and operational costs. Staff have reviewed the requested adjustment and determined that it is reasonable and consistent with current market conditions for HVAC maintenance services.

Accordingly, Amendment No. 2 increases the annual base contract amount from $106,028 to an amount not to exceed $118,592.

Increase to Allowable Extra Work
During the current fiscal year, staff has addressed extraordinary emergency HVAC repairs in addition to an overall increase in routine maintenance needs. To provide sufficient authorization for this unanticipated work, staff is requesting an increase in the extra work authorization to $125,000. This adjustment will retroactively support costs already incurred and provide the necessary capacity to address anticipated HVAC maintenance and repair needs through the remainder of the fiscal year.

Staff is also implementing enhanced use of the City’s asset management software, Cartegraph, to track the lifecycle, condition, and repair history of each HVAC system. This improved tracking will support more accurate long-term planning, budgeting, and prioritization of HVAC maintenance, repair, and replacement needs. Should staff determine that additional funding flexibility is warranted in future fiscal years, staff will return to the City Council with findings and any recommended budget adjustments.

Approval of Amendment No. 2 will ensure the continued reliability and performance of HVAC systems across City facilities by maintaining consistent preventive maintenance services, addressing increased operational demands, and enabling timely responses to equipment failures. This approach supports the City’s commitment to preserving public assets, minimizing service disruptions, and maintaining safe and functional environments for staff and the community.

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 contract amendments with Desert Air Conditioning, Inc. to extend HVAC preventive maintenance services of City HVAC systems which will address aging equipment and emergency repair needs, and help minimize service disruptions at City facilities. This action is not subject to CEQA per State CEQA Guidelines section 15060(c)(2) because the contract amendments 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 448

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section 15378(b)(2) because the execution of the contract amendments enables 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 for HVAC maintenance, repairs, and replacements during Fiscal Year 2025/2026 were included in the approved Financial Plan and Capital Improvement Program (CIP) budget under various accounts. Therefore, this action will not result in any additional impact to the General Fund.

The proposed Fiscal Year 2026/2027 Financial Plan and CIP budget also include funding for HVAC maintenance, repairs, and replacements under various accounts, as summarized in the table below:

Location Expense Account HVAC Budget
Corporation Yard 1104330-4331000 $20,000
City Hall / Hist Society 1104340-4331000 $50,000
Portola CC 1104344-4331000 $7,500
Civic Center Snack bar 1104610-4331000 $5,000
Freedom/Hovley Snack bar 1104611-4331000 $5,000
Artist Center 1104800-4331000 $10,000
Fire Stations 2304220-4331000 / 4400100 $40,000
PD Aquatic Center 2424595-4331101 / 4400100 $25,000
Sheriff Center 5104195-4369500 $40,000
State Building 5104195-4369602 $17,500
Henderson Building 5104195-4369800 $20,000
Park Facilities HVAC Replacements 4004618-4400100 $25,000 DWGC HVAC Replacements 4414195-4809200 $25,000
City Hall HVAC Replacements 4504161-4400100 $25,000
Facilities HVAC Replacements 4504164-4400100 $25,000
Gov Bldgs HVAC Replacements 5304361-4400100 $25,000
FY 26/27 Proposed Budget $365,000
*Contract Amount $118,592
**Allowable Extra Work and Replacements $125,000
Remaining Funds $121,408
**Current Request (FY 2025-26 Only)
Although the accounts and amounts listed are intended to cover the costs, actual distribution will vary based on actual use.

The remaining balance of $121,408 may be available and utilized, as needed, for emergency HVAC repairs, unanticipated equipment failures, and programmed HVAC replacement projects throughout Fiscal Year 2026/27. Maintaining these reserve funds will help ensure the City can 449

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respond promptly to critical HVAC issues and preserve the operational reliability of City facilities.

Attachments

1. Amendment No. 2 (C46142)

2. C46140 ASR Award Contract to Desert Air

3. Contract No. C46140 – Original Agreement

4. Amendment No. 1
450

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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).

BY AND BETWEEN THE CITY OF PALM DESERT
AND DESERT AIR CONDITIONING, INC.

1. Parties and Date.

This Amendment No. 2 (“Amendment No. 2”) to the Maintenance Services Agreement, Contract No. C46140, 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 Desert Air Conditioning, Inc., a S Corporation, with its principal place of business at 590 Williams Road, Palm Springs, CA, 92264 (“Contractor”). City and Contractor 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. 2 to Contractor named above.

2. Recitals.

2.1 Agreement. The City and Desert Air Conditioning, Inc., entered into a Maintenance Services Agreeement (“Agreement”) on September 15, 2023, for the purpose of retaining the services of Desert Air Conditioning, Inc. for HVAC Preventative Maintenance, Repair, and Replacement services. (“Project”).

2.2 Background. The parties previously entered into a previous Amendment No. 1 on September 15, 2023, to extend the term to June 30, 2026.

2.3 Amendment Authority. This Amendment is authorized pursuant to Section

3.5.9 of the Agreement.

2.4 The purpose of this Amendment No. 2 is to extend the term.

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

Section 3.1.2 Term. The term of this Agreement shall be from September 15, 2023, 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 automatically for no more than 1 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.
453
Contract No. C46412
2 Rev 09-25
72500.00001\44340560.1

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]
454
Contract No. C46412
3 Rev 09-25
72500.00001\44340560.1
SIGNATURE PAGE FOR AMENDMENT NO. 2

TO MAINTENANCE SERVICES AGREEMENT BETWEEN

THE CITY OF PALM DESERT
AND DESERT AIR CONDITIONING, INC.

CITY OF PALM DESERT

Chris Escobedo
City Manager
Attest:

Anthony J. Mejia
City Clerk
Approved to form by:
____________________________
Isra Shah
City Attorney
DESERT AIR CONDITIONING, INC., A S

CORPORATION
____________________________
Jeff Shaw
President
____________________________
Todd Shaw
Vice President
Office Use:

Quality Check Insurance Review
City Clerk Contracts Initial Final
455
456

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

Title: AWARD CONTRACT NO. C46140 TO DESERT AIR CONDITIONING, INC., FOR

HEATING, VENTILATION, AND AIR CONDITIONING PREVENTATIVE MAINTENANCE IN THE ANNUAL AMOUNT OF $106,028 (PROJECT NO.

MFA00008)
Date: Thursday, August 24, 2023
Motion by: Councilmember Harnik
Seconded by: Councilmember Trubee
Waive any minor proposal irregularities and award Contract No. C46140 to Desert Air Conditioning, Inc., for the Heating, Ventilation and Air Conditioning ( HVAC) Preventative Maintenance in the annual amount of $106,028.

1. Authorize extra work and services for HVAC repairs and replacements up to the annual amount of $75,000.

2. Authorize the City Manager or designee to approve up to two, one-year contract amendments/ extensions.

3. Authorize the City Manager or designee to review and approve change orders for any unforeseen circumstances per Section 3.30.170 of Ordinance No. 1392.

4. Authorize the City Attorney to make any necessary, non- monetary changes to the Agreement and the authorize the City Manager to execute said agreement.

5. Motion Carried ( 5-0)
457

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Shawn Muir, Community Services Manager
REQUEST: AWARD A CONTRACT TO DESERT AIR CONDITIONING, INC., FOR

HEATING, VENTILATION, AND AIR CONDITIONING PREVENTATIVE MAINTENANCE IN THE ANNUAL AMOUNT OF $106,028 (PROJECT NO.

MFA00008)
RECOMMENDATION:

1. Waive any minor proposal irregularities and award a contract to Desert Air Conditioning, Inc., for the Heating, Ventilation and Air Conditioning ( HVAC) Preventative Maintenance in the annual amount of $106,028.

2. Authorize extra work and services for HVAC repairs and replacements up to the annual amount of $75,000.

3. Authorize the City Manager or designee to approve up to two, one-year contract amendments/extensions.

4. Authorize the City Manager or designee to review and approve change orders for any unforeseen circumstances per Section 3.30.170 of Ordinance No. 1392.

5. Authorize the City Attorney to make any necessary, non-monetary changes to the Agreement and the authorize the City Manager to execute said agreement.

BACKGROUND/ANALYSIS:

Currently, City staff maintains 14 sites that require HVAC preventative maintenance that keep the units in good working order; repairs that are necessary during their service life, and ultimately the replacement of units that are no longer functioning or are beyond repair. Because of the harsh desert climate, it is imperative that these units be kept in the best condition possible to prevent loss of environmental control, and to reduce overall energy consumption. This service requires a company that can efficiently and effectively respond to the City’s needs.

Staff developed and posted a Request for Proposals ( RFP) for the HVAC Preventative Maintenance, Repair, and Replacement Project on OpenGov (the City’s online public bidding portal) on July 11, 2023, with a due date of July 28, 2023.

On the provided Proposal Fee Sheet included with this report, the proposers provided a quarterly charge, and then the total contract price over the initial three-year term. Each proposer was also required to include hourly rate pricing for extra work that may be required during the course of the contract, which would also apply to any labor rates for new equipment installations. The mark-up rate for new units was also set in the RFP at the cost of the unit plus 15%

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City of Palm Desert
Award Contract for HVAC Preventative Maintenance

Page 2 of 4 ends

The scope of work outlined specific items of work that needed to be accomplished during each preventative maintenance service call for each type of equipment and a complete list of the entire HVAC inventory.

City facilities with HVAC units are shown on the table below:

FACILITY AIR CONDITIONING UNITS EVAPORATIVE COOLERS
City Hall-This includes the Sheriff’s
Substation, Parkview Office Complex,
and the State Building.
45 Civic Center Park-This includes Civic
Center Snack Bar, and the Irrigation
Pump Facility
1 1
Palm Desert Aquatic Center 3
Portola Community Center 5
Portola Desert Historical Society 2
Henderson Building 7
The Artist’s Center 1-Chiller System
Fire Station No. 33 10
Fire Station No. 67 4 2
Fire Station No. 71 3 2
Corporation Yard 9 5
Hovley Soccer Park 1
Freedom Park 1
iHUB 11
A mandatory pre-proposal meeting was held on July 19, 2023. Four vendors attended the pre - proposal meeting; however, one proposer, RivCo, arrived 40 minutes late. Due the late arrival, a protest letter was received. Staff consulted with City attorney who indicated that the late arrival had no effect on the proposal, so staff continued with the RFP process.

Staff received and reviewed the three qualified proposals and rated them per the evaluation guidelines established in the RFP (clarity and conformance, experience, performance, content of the proposal, and references) as follows:

Proposer Location Proposed Amount Ranking
Desert Air Conditioning, Inc. Palm Springs, CA $ 318,084 1 RivCo Mechanical Services Indio, CA $ 298,573 2
Pacific West Industries, Inc. Anaheim, CA $ 221,079 3
References for each contractor provided favorable comments to their ability to start and complete projects on time, provide good communication, and customer service. However, some of the references for Pacific West Industries were not positive . In addition, RivCo Mechanical Services did not meet the terms of the RFP because they were late attending the mandatory pre-proposal meeting and were subsequently not present for all site visits.

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City of Palm Desert
Award Contract for HVAC Preventative Maintenance

Page 3 of 4 ends

Desert Air Conditioning, Inc., was ranked 1 based on experience and conformity to the RFP however, the cost was the highest of the three proposals. Therefore, after the qualification selection of Desert Air Conditioning, staff negotiated a lower price that resulted in an overall contract savings of $8,532 ($2,844 annually).

Based on the rank, staff recommends awarding the contract to Desert Air Conditioning, Inc.

Desert Air Conditioning has served the City for the past five years and has always provided excellent service. They are prompt in scheduling the current preventative maintenance, diligent in communicating with City staff any repair issues that are observed, responsive to repair calls 24/7, usually being onsite within two hours. At times when the unit was not repairable, they have provided portable units to allow facilities to remain open and occupied at no charge. For these reasons, staff considers Desert Air Conditioning the best value.

FINANCIAL IMPACT:

The approved Public Works Operations Budget for Fiscal Year (FY) 2023-24 includes $196,000 specifically for HVAC maintenance, repairs, and replacements under various Operations and Capital Improvements Accounts. Therefore, there is no additional financial impact to the general fund.

The following is the estimated allocation budget for each account; however, this does not necessarily mean the full amount will be allocated to each budget nor that the full amount will be spent:

Account No. Description FY 23/24
Budget
Annual
Amount
3-Year
Contract
1104330- 4331000 Corporation Yard $ 12,500.00 $ 7,532.00 $ 22,596.00 1104340- 4331000 City Hall $ 25,000.00 $ 20,000.00 $ 60,000.00 1104340- 4331000 Palm Desert Historical Society $ 5000.00 $ 852.00 $ 2,556.00 1104344- 4331000 Portola Community Center $ 7,500.00 $ 1,552.00 $ 4,656.00 1104610- 4331000 Civic Center Park $ 1,000.00 $ 1,056.00 $ 3,168.00 1104611- 4331000 Hovley Soccer Park $ 1,500.00 $ 964.00 $ 2,892.00 1104611- 4331000 Freedom Park $ 1,500.00 $ 532.00 $ 1,596.00 1104800- 4388500 Artist’s Center. $ 5,000.00 $ 4,960.00 $ 14,880.00 2304220- 4331000 Fire Station No 33 $ 10,000.00 $ 7,256.00 $ 21,768.00 2304220- 4331000 Fire Station No 67 $ 10,000.00 $ 2,428.00 $ 7,284.00 2304220- 4331000 Fire Station No. 71 $ 10,000.00 $ 1,960.00 $ 5,880.00 2424195- 4331101 Aquatic Center $ 15,000.00 $ 1,564.00 $ 4,692.00 4254430- 4395000 iHUB $ 10,000.00 $ 6,432.00 $ 19,296.00 5104195- 4369500 Sheriff Substation $ 43,000.00 $ 25,688.00 $ 77,064.00 5104195- 4369601 Parkview Complex Building $ 17,000.00 $ 10,000 $ 30,000.00 5104195- 4369602 State Building $ 10,000.00 $ 10,000 $ 30,000.00 5104195- 4369800 Henderson Building $ 12,500.00 $ 3,252.00 $ 9,756.00 TOTAL $ 196,500.00 $ 106,028.00
318,084.00

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City of Palm Desert
Award Contract for HVAC Preventative Maintenance

Page 4 of 4 ends

ATTACHMENTS:

1. Proposal Protest Letter

2. Desert Air Conditioning, Inc. Proposal

3. Desert Air Conditioning, Inc. Revised Proposal Fee Sheet

4. Desert Air Hourly Rate Sheet

5. Desert Air Conditioning, Inc. Maintenance Service Contract

6. Payment and Performance Bonds

7. Rivco Mechanical Services Proposal

8. Pacific West Industries, Inc. Proposal

Page 442 of 851 ends

PD Aquatic Center

Page 513 of 851 ends

Contract No. C46140
1 Revised 07-2023
BBK 72500.00001\32374943.1

CITY OF PALM DESERT

MAINTENANCE SERVICES AGREEMENT

1. Parties and Date. This Agreement is made and entered into this 15th day of September, 2023, 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 Desert Air Conditioning, Inc., a Corporation, with its principal place of business at 590 S. Williams Road, Palm Springs, CA 92264 ("Vendor").

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

2. Recitals.

2.1 Contractor.

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

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

2.2 Project.

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

HVAC Preventative Maintenance, Repair, and Replacement Project Project No. MFA00008
(hereinafter referred to as “the Project”).

3. Terms.

3.1 Scope of Services and Term.

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

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

3.1.2 Term. The term of this Agreement shall be from September 15, 2023, to June 30, 2024, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than 2 additional oneyear terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 463
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means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee.

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

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

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

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

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

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

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

Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 464
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to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

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

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

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

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

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

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

3.2.10.3 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall comply with all relevant provisions of City’s Minority Business DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 465
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Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

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

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

3.2.11 Insurance.

3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of City, and prior to commencement of the Services, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(B) Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 466
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coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
(a) A drop-down feature requiring the policy to
respond if any primary insurance that would
otherwise have applied proves to be uncollectible in
whole or in part for any reason;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall “follow form” to the underlying
primary policies.
(e) Insureds under primary policies shall also be
insureds under the umbrella or excess policies.
(D) Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives. (E) Fidelity Coverage N/A
(F) Cyber Liability Insurance. N/A
(G) Pollution Liability Insurance N/A

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

City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(B) Duration of Coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by Contractor, his/her agents, representatives, employees, or subconsultants. (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 DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 467
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and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement.
(E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, and shall require similar written express waivers and insurance clauses from each of its subcontractors. (G) Enforcement of Contract Provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(I) Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(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.

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(K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
(L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (M) Pass Through Clause. Contractor agrees to ensure that its subconsultants, sub-contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. (N) City’s Right to Revise Specifications. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. (O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(P) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(Q) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and 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.

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3.2.13 Bonds.

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

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

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

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

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

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 DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 470
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determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements.

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

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

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

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

3.2.17 Warranty. Contractor warrants all Services under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 471
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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 and Six Thousand and Twenty-Eight Dollars ($106,028.00) 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 3.3.3 Deductions. City may deduct or withhold, as applicable, from each progress payment an amount necessary to protect City from loss because of: (1) stop payment notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3) sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Agreement; and (4) any other sums which the City is entitled to recover from Contractor under the terms of the Agreement or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such sums.

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

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

3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” 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 DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 472
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commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at the Contractor’s principal place of business and at the Project site. Contractor shall defend, indemnify, and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

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

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

3.4 Termination of Agreement.

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

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

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

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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: DESERT AIR CONDITIONING, INC.
590 S. Williams Road
Palm Springs, CA 92264
ATTN: Todd Shaw
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: City Clerk
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 DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 474
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elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.

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

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

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

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

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

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

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

3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, 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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SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT
AND DESERT AIR CONDITIONING, INC.

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

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Best Best & Krieger LLP
City Attorney
DESERT AIR CONDITIONING, INC., A

CORPORATION
By:

Its: President
Printed Name: Jeff Shaw
By:

Its: Vice-President
Printed Name: Todd Shaw
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
QC: MN
Insurance:
_____
Initial Review
_____
Final Approval
Bonds: ________
DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB Todd Shaw
1000001209
477
Contract No. C46140
Exhibit “A”
Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “A”

SCOPE OF SERVICES
SP-2. Scope of Service and Terms of Contract

2.1 Contractor shall provide the necessary manpower and equipment to service and maintain the equipment listed in the specified locations, at the level of maintenance and service defined by City.

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

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

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

2.5 Contractor shall submit a quarterly report to Cora Gaugush, or any person designated by City, for work completed in the preceding quarter. The report is to be submitted no later than the fifth (5th) day following the end of the quarter, and can be sent via email to [email protected]

2.6 Contractor shall remove debris caused by all maintenance activities on the same working day that such debris is accumulated.

SP-3 Refuse Disposal
All refuse collected shall be removed and properly disposed of by Contractor at Contractor’s expense. Disposal of debris shall not be allowed in any City trash can, bin or other City facility (i.e., Corporation Yard or satellite yards), or in any park refuse container unless other arrangements have been authorized by City.

DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 478
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Exhibit “A”
Revised 07-2023
BBK 72500.00001\32374915.1
SP-4 Schedules and Reports
At the pre-commencement meeting, Contractor and City staff will review the Work Schedule submitted by the Contractor. This schedule will be considered the permanent schedule. If, during the first thirty (30) days, an adjustment in the schedule needs to be made, Contractor may submit a revised schedule for approval. Contractor shall adhere to the schedule. City must receive notification of changes to the schedule at least 24 hours in advance. Contractor shall submit a quarterly report to Carlos Hernandez, Facilities Manager, or any other person designated by City, for work completed in the preceding quarter. The report is to be submitted no later than the fifth (5th) day following the end of the quarter, and can be sent via email to [email protected], or faxed to 760-341-7098.

SP-5 License and Certification Requirements
Contractor shall possess all permits and licenses required to comply with city, county, state, or federal laws for the work activities performed, including the use of chemicals.

Contractor assumes responsibility and liability for use of all chemical controls and shall at all times perform chemical applications in accordance with governmental regulations and industry standards for their safe and appropriate use.

At the time that the Bid is submitted, Contractor shall possess current licensure and certification as follows, and the same shall be maintained current and valid for the term of the contract:
 C-20 – Warm Air Heating, Ventilating, and Air Conditioning Contractor At the time of contract award, Contractor shall possess a current City of Palm Desert Business License.

DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 479
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Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “B”

SCHEDULE OF SERVICES
HVAC Equipment List

1. City Hall – 73510 Fred Waring Drive-Includes Sheriff’s Substation, Parkview Building, State Building
 (44) 3-6-ton units
 (2) 10-ton units
 (1) 1-ton split ductless unit
 Filter quantity/size: (30) 16x25x2
(20) 16x16x2
(16) 20x20x2
(12) 16x20x2
(3) 12x24x1
(2) 10x20x1
(2) 16x24x1
(8) 16x20x1
(1) 20x25x2
(6) 12x20x1
(5) 20x20x1
(6) 22x22x1

2. Civic Center Park – 73510 Fred Waring Drive
 (1) Bard Company 4-ton unit (at pump vault)
 (1) Phoenix Manufacturing/Aero Cool evaporative cooler (at snack bar)  Filter quantity/size (1) 20x30x2
 Pad quantity/size (3) cut to size

3. Palm Desert Aquatic Center – 73751 Magnesia Falls Drive  (3) Trane 10-ton rooftop units
 Determine Filter quantity/size on site

4. Portola Community Center – 45480 Portola Avenue
 (1) 3.5-ton unit
 (4) 3.5-ton units
 Filter quantity/size: (1) – 20x25x1
(4) – 14x24x1
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Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1

5. Fire Station 67 – 73200 Mesa View
 (2) 3-ton units
 (1) 3.5-ton unit
 Filter quantity/size (3) – 25x20x1
 (3) evaporative cooler units
 Pad quantity/size (9) – cut to size

6. Palm Desert Historical Society – 72861 El Paseo
 (1) 4-ton unit
 (1) 2-ton unit
 Filter quantity/size: (3) 15x20x1
(1) 20x24x1
(1) 20x20x1

7. Henderson Building – 72559 Highway 111
 (1) 4-ton package unit
 (3) 5-ton package units
 (3) 6-ton package units
 Filter quantity/size (24) – 16x16x2
(2) – 16x25x2

8. Artist’s Council – 72-567 Hwy 111
 Chiller System

9. Fire Station 33 – 44400 Town Center Way
 (1) 5-ton package unit
 (2) 7.5-ton package units
 (3) 8.5-ton package units
 Filter quantity/size (6) – 18x24x1
 - Evaporative cooler units - (4) total in Apparatus Bay  Pad quantity/size (12) – cut to size

10.Hovley Soccer Park – 74735 Hovley Lane East
 (1) Phoenix Manufacturing/Aero Cool evaporative cooler (at snack bar)  Pad quantity/size (3) cut to size

11.Corporation Yard - 74705/74605 42nd Avenue
DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 481
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Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
74705 42nd Avenue
 (2) 1-ton split ductless units
 (2) 5-ton units
 Filter quantity/size (2) – 24x20x1
 3 evaporative cooler/heating units
 Pad quantity/size (15) – 44x12
74605 42nd Avenue
 (4) 2-ton package units
 (1) 1-ton wall unit
 Filter quantity/size (3) – 14x20x1
(1) – 24x25x1
 (2) evaporative cooler/heating units
 Pad quantity/size (10) – 44x12

12.Freedom Park – 77400 Country Club Drive
 (1) Carrier 4-ton package unit (at snack bar)
 Filter quantity/size (2) 16x25x2

13.Fire Station 71 – 73995 Country Club Drive
 (1) 5-ton package unit
 (2) 8.5-ton package units
 Filter/quantity size (2) – 16x16x1
 (2) PMI evaporative cooler units
 Pad quantity/size (6) – cut to size

14.i-HUB -37023 Cook Street
 (6) rooftop units
 (2) split-system units
 (3) Mini split-system units
 Determine Filter quantity/size on site
DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 482
Contract No. C46140
Exhibit “C”
Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “C”

COMPENSATION
590 WILLIAMS RD • PALM SPRINGS, CA 92264
(760) 323-3383 • FAX (760) 323-8983
www.desertairps.com
LICENSE NO. 276586
2023 RATE CHANGES
Monday through Friday 8:00 am to 6:00 pm $108.00 per hour Monday through Friday after 6:00 pm $148.00 per hour
Saturday and Sunday 8:00 am to 5:00 pm $148.00 per hour Saturday and Sunday after 5:00 pm $216.00 per hour
Holidays $216.00 per hour
Contractor shall receive compensation, including authorized reimbursements, for all Services DocuSign Envelope ID: 5438BED4-1BCD-484B-9D17-46C42009A7AB 483
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BBK 72500.00001\32445060.1
AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND DESERT AIR CONDITIONING, INC.

1. Parties and Date.

This Amendment No. 1 to the made and entered into as of this 15th day of September, 2023, by and between the City of Palm Desert (“City”) and Desert Air Conditioning, Inc., a Corporation, with its principal place of business at 590 Williams Road, Palm Springs, CA 92264 ("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 Desert Air Conditioning, Inc. have entered into an agreement entitled “Maintenance Services Agreement” dated September 15, 2023 (“Agreement” or “Contract”) for the purpose of retaining the services of Desert Air Conditioning, Inc. to provide HVAC Preventative Maintenance, Repair, and Replacement services.

2.2 Amendment. The City and Desert Air Conditioning, Inc. desire to amend the Agreement to reflect accurate term.

2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section

3.5.9 of the Agreement.

3. Terms.

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

Term. The term of this Agreement shall be from September 15, 2023, to June 30, 2026, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than 2 additional one-year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.1.2 Compensation. Section 3.3.1 of the Agreement is hereby amended in its entirety to read as follows:

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 annual compensation shall not exceed One Hundred and Six Thousand and Twenty-Eight Dollars ($106,028.00) without written approval of the City Council or City Manager, as applicable.

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

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

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

3.5 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
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BBK 72500.00001\32445060.1
SIGNATURE PAGE FOR AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES

AGREEMENT BETWEEN THE CITY OF PALM DESERT
AND DESERT AIR CONDITIONING, INC.

IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 1 to the Maintenance Services Agreement 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
DESERT AIR CONDITIONING, INC., A

CORPORATION
By:

Jeff Shaw
President
By:

Todd Shaw
Vice President
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
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City of Palm Desert Staff Report
Meeting Date: June 25, 2026
Prepared By: John Ramont, Deputy Director of Finance
Department: Finance
Subject: Resolution Authorizing an Internal Revolving Loan and Related Appropriations for the Purchase of Golf and Utility Vehicles; Authorize Surplus and Trade-In of the Current Fleet; and Approve a 48-month Lease for GPS and Connectivity Technology Services Recommendation

1. Adopt a resolution entitled “A Resolution of the City Council of the City of Palm Desert, California, Authorizing a Revolving Loan from the Desert Willow Capital Fund to the Desert Willow Operations Fund for Golf Cart Replacement and Establishing Terms for Repayment.”

2. Authorize the surplus and trade-in of the current golf cart fleet for an estimated trade-in allowance of approximately $344,000, in accordance with Finance Policy FIN-009.

3. Approve the purchase of golf and utility vehicles from Club Car, LLC, in the estimated net amount of $1,567,076.64, inclusive of the estimated trade-in allowance, from the Golf Course Capital Fund (Fund 441).

4. Approve a 48-month lease of GPS and connectivity technology services from Club Car, LLC, in the estimated total amount of $329,712 before applicable taxes and implementation-related costs, for a total not-to-exceed authorization of $375,000, to be paid from the Desert Willow Golf Resort Enterprise Fund.

5. Approve an appropriation of $1,567,076.64, plus a 10% contingency of $156,708.00, for a total not-to-exceed amount of $1,723,784.64, from unobligated Golf Course Capital Fund resources to Contingency Capital Account No. 4414195-4809200 for the purchase of electric golf and utility carts from Club Car, LLC, and authorize the associated Loan Receivable to Account No. 4410000-1305201.

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

7. Authorize the City Manager to execute all agreements and related documents necessary to complete the purchase.

8. Authorize the City Manager to approve the use of contingency funds, as needed, only for documented trade-in adjustments, applicable taxes, delivery costs, implementation costs, or other unforeseen costs directly related to purchase and delivery, within the approved not-to-exceed amount.

Executive Summary
This item authorizes the replacement of Desert Willow’s aging golf and utility vehicle fleet with 187 new Club Car vehicles, funded through an internal revolving loan from the Golf Course Capital Fund. The purchase has an estimated net cost of $1.57 million after trade-in, with total appropriation authority of $1.72 million including contingency. The item also approves a 48- month GPS and connectivity services lease, not to exceed $375,000. 489

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Background
The current Desert Willow Golf Resort golf cart fleet is nearing the end of its useful life. The existing fleet will be four years old at the conclusion of the current lease term. Desert Willow has historically operated on a four-year fleet replacement cycle. Battery performance has begun to decline, resulting in battery replacement issues, and additional vehicle components will no longer be covered under manufacturer warranties.

Refreshing the fleet ensures player expectations are met for comfort and safety, equipment reliability, predictable maintenance costs, and maximum uptime to support a full tee schedule, resulting in efficient and cost-effective operations. Given Desert Willow’s high utilization levels and year-round operating environment, a four-year replacement cycle remains appropriate and consistent with industry practice for premier resort facilities.

The proposed replacement fleet includes 187 total vehicles and support units, summarized below:

Vehicle / Unit Type Quantity
Fleet golf cars 172
Marshal vehicles 4
Six-passenger shuttle vehicles 3
Driving range unit 1
Maintenance vehicles 4
Cafe Express units 3
Total 187
Staff obtained updated pricing from Club Car, LLC, for replacement fleet vehicles, marshal vehicles, maintenance units, shuttle vehicles, driving range equipment, and cafe service vehicles. The proposed fleet includes lithium-ion technology and will continue to integrate with the Visage GPS and fleet management platform currently used at Desert Willow Golf Resort.

The GPS and connectivity platform is operationally important primarily because guests expect the high-quality play experience that it provides. GPS supports pace-of-play management, geofencing and cart-control features, fleet location tracking, operator messaging, golfer safety notifications, asset protection, and operational visibility for course staff.

Staff reviewed Sourcewell cooperative purchasing contract pricing (Sourcewell Contract No. 091024-CCR). Sourcewell is a governmental cooperative purchasing organization that conducts formal competitive procurement processes on behalf of participating public agencies.

Use of the Sourcewell satisfies competitive procurement requirements through a publicly solicited and awarded cooperative purchasing process.

Staff then negotiated directly with Club Car and KemperSports to secure improved pricing through national purchasing relationships associated with the Desert Willow Golf Resort management agreement. The negotiated pricing is more favorable than both the standard Sourcewell cooperative pricing and the standard KemperSports national account pricing identified in the proposal documents. The negotiated pricing represents estimated savings of $1,648,448 from current Sourcewell contract pricing.
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Section 11.1 of the City’s management agreement with KemperSports authorizes KemperSports to help secure advantageous purchasing terms and lower costs for City purchases. All resulting savings, discounts, rebates, and refunds accrue directly to the City.

Section 3.30.160.1 of the Palm Desert Municipal Code allows the City to exempt a purchase from standard procurement methods when the contract award is determined to be in the City’s best interest. Staff recommends approval based on favorable negotiated pricing, operational continuity, compatibility with the existing GPS infrastructure, maintenance familiarity, avoidance of transition risk, and continued support of Desert Willow Golf Resort's guestexperience standards.

Staff also recommends approval of trading in the current fleet for an estimated value of $344,000 in accordance with Finance Policy FIN-009 for disposal of surplus property. Because final trade-in value may be subject to final inspection, market conditions, and delivery timing, the recommended contingency is intended to protect the City from minor unavoidable changes while maintaining a defined not-to-exceed authorization.

Upon approval, the golf cart purchase will be financed through an internal revolving loan using available Golf Course Capital Fund resources, with repayment from Desert Willow Enterprise Fund operations. This financing approach was successfully used for the prior Golf Cart Fleet acquisition and is intended to minimize interest costs while supporting operational continuity.

The proposed 4.0% simple interest rate is intended to reflect the City’s opportunity cost based on the current average rate of return from pooled investment funds, while avoiding higher-cost external or vendor financing. The interest rate achieves investment equivalents for the City while reducing costs of commercial borrowing for Desert Willow.

Delivery is expected in December 2026, and repayment would begin in January 2027 or after acceptance of the fleet, as provided in the final financing schedule.

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

Financial Impact
The proposed Club Car purchase pricing and recommended appropriation are summarized below:

Description Amount
Pretax Fleet Purchase $1,757,311.85
Estimated Sales Tax (8.75%) $153,764.79
Purchase Total $1,911,076.64
Less Estimated Trade-In Allowance ($344,000.00)
Estimated Net Purchase Cost $1,567,076.64
10% Contingency $156,708.00
Total Not-to-Exceed Appropriation $1,723,784.64
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Use of the 10% contingency is limited to documented trade-in adjustments, applicable tax changes, delivery charges, implementation-related costs, or other unavoidable costs directly tied to completing the approved purchase within the total not-to-exceed appropriation.

GPS and connectivity technology services are estimated at approximately $6,869 per month before taxes, based on the current fleet configuration and associated Visage technology requirements. The proposed authorization amount includes estimated taxes and implementation-related contingencies over the 48-month term, to be paid monthly from Desert Willow Enterprise Fund operations.

Funding is available in the unobligated Golf Course Capital Fund and has been included in long-term capital planning projections. The requested appropriation establishes expenditure authority for the purchase commitment and related contingency; actual payment timing should be aligned with final delivery, acceptance, invoicing, and the internal repayment schedule.

Golf operation revenues are projected to be sufficient to cover annual repayment obligations at the proposed 4.0% APR, with payments returned to the Golf Course Capital Fund. The final loan amount should be based on the total purchase price of the new golf and utility vehicles, net of the accepted trade-in value and excluding any unused contingency.

The General Fund is anticipated to benefit from this transaction through Measure G sales tax receipts equal to approximately 1% of the pretax fleet purchase price, or $19,110.77.

Attachments

1. Draft Resolution

2. Club Car Lease Proposal
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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): Club Car, 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). 493
494
Resolution No. 2026-____
A Resolution of the City Council of the City of Palm Desert, California, Authorizing a Revolving Loan from the Desert Willow Capital Fund to the Desert Willow Operations Fund for Golf Cart Replacement and Establishing Terms for Repayment
Whereas, the City of Palm Desert owns and operates Desert Willow Golf Resort as a municipal enterprise and destination amenity; and
Whereas, the Desert Willow golf cart fleet is an operationally essential asset necessary to support daily golf operations, customer service, revenue generation, and safe resort operations; and
Whereas, replacement of golf carts is necessary from time to time due to age, useful life, maintenance costs, reliability, safety, customer expectations, and operational efficiency; and
Whereas, the City maintains funds commonly identified for Desert Willow capital and operational purposes, including the Desert Willow Capital Fund and the Desert Willow Operations Fund; and
Whereas, the City Council desires to authorize a revolving loan from the Desert Willow Capital Fund to the Desert Willow Operations Fund to finance the acquisition or replacement of golf carts and related equipment, subject to repayment from Desert Willow operating revenues or other legally available Desert Willow Operations Fund resources; and
Whereas, the establishment of a revolving loan mechanism will allow the City to preserve operational continuity, align capital investment with future operating revenues, and provide transparent accounting for the source and repayment of funds; and Whereas, the City Council finds that the loan authorized by this Resolution serves a municipal and public purpose by supporting the continued operation, maintenance, and financial sustainability of Desert Willow Golf Resort.

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

Section 1. Findings.

The foregoing recitals are true and correct and are incorporated herein by this reference as findings of the City Council.

Section 2. Authorization of Revolving Loan.

The City Council hereby authorizes a revolving loan from the Desert Willow Capital 495
Resolution No. 2026-____ Page 2
Fund to the Desert Willow Operations Fund in an estimated amount of $1,567,076.64 for the purpose of financing the acquisition, replacement, outfitting, delivery, and implementation of golf carts and directly related equipment or costs necessary for Desert Willow Golf Resort operations. The final lease amount will be determined after trade-in values of the current golf cart fleet are determined. The maximum loan amount is not to exceed $1,723,784.64, inclusive of a 10% contingency.

Section 3. Permitted Uses.

Loan proceeds shall be used only for golf cart replacement and related costs, which may include carts, charging infrastructure or related electrical improvements, delivery, taxes, warranties, fleet management equipment, financing or acquisition costs, and other costs reasonably necessary or incidental to placing the golf carts into service.

Section 4. Repayment Obligation.

Amounts advanced from the Desert Willow Capital Fund shall constitute a loan to the Desert Willow Operations Fund. The Desert Willow Operations Fund shall repay the Desert Willow Capital Fund from Desert Willow operating revenues or other legally available resources in accordance with the repayment terms approved by the City Manager and Finance Director, substantially consistent with Exhibit A, attached hereto and incorporated by reference.

Section 5. Interest.

Unless otherwise directed by the City Council, the outstanding loan balance shall bear interest from the date of each advance until repaid at a simple interest rate of 4.0% annually, which approximates the average rate earned by the City on its pooled investments.

Section 6. Revolving Nature of Loan.

Repayments of principal and interest shall be returned to the Desert Willow Capital Fund and may be made available for future Desert Willow capital needs, subject to budgetary appropriation and applicable City policies. Any future advances for golf cart replacement under this revolving structure shall be subject to available fund balance, budget authority, and approval procedures established by the City Manager and Finance Director, unless further City Council action is required.

Section 7. Finance Director Authority.

The Finance Director, or designee, is authorized and directed to establish and maintain the necessary accounting entries, loan records, interfund transfer documentation, amortization schedules, budget adjustments, and other administrative procedures necessary or desirable to accomplish the purposes and intent of this Resolution.

Section 8. City Manager Authority.

The City Manager, or designee, is authorized to take all administrative actions necessary to implement this Resolution, including approval of repayment schedules, 496
Resolution No. 2026-____ Page 3
execution of related internal loan documentation, and coordination of procurement, budget, and operational actions associated with the golf cart replacement.

Section 9. Budget and Accounting Adjustments.

The City Council hereby authorizes the necessary budget adjustments, transfers, advances, and accounting entries to effectuate the revolving loan authorized by this Resolution, subject to final review and confirmation by the Finance Director.

Section 10. Severability.

If any section, subsection, sentence, clause, phrase, or portion of this Resolution is held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Resolution.

Section 11. Effective Date.

This Resolution shall take effect immediately upon its adoption.

Adopted on __________________.

Evan Trubee
Mayor
Attest:

Anthony J. Mejia
City Clerk
497
Resolution No. 2026-____ Page 4
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
498
Resolution No. 2026-____ Page 5
Exhibit A
Desert Willow Golf Cart Replacement Revolving Loan Terms Term Description
Borrowing Fund Desert Willow Operations Fund
Lending Fund Desert Willow Capital Fund
Authorized Purpose Golf cart replacement and directly related acquisition, delivery, infrastructure,
warranty, and implementation costs
Maximum Authorized Loan Amount $1,723,784.64
Initial Advance Date To be determined
Interest Rate 4% simple interest approximating the
average percentage rate earned by the
City on pooled investments
Repayment Source Desert Willow operating revenues or
other legally available Desert Willow
Operations Fund resources
Repayment Frequency Monthly
Final Maturity Date December 31, 2030
Prepayment Permitted at any time without penalty,
unless otherwise directed by the City
Council
Accounting Treatment To be recorded as an interfund loan or advance in accordance with applicable
governmental accounting standards and
City financial policies
499
500
Please find attached a quotation for the following vehicles:
2027 Club Car Tempo 2 Pass – Fleet Car
2027 Club Car Tempo 2 Pass – Marshall Car
2027 Club Car CarryAll 500 – Driving Range Unit
2027 Club Car CarryAll 500 – Maintenance
2027 Club Car Onward 6 Seater
2027 Club Car CarryAll 500 – CAFÉ Express Lithium
Please find attached a quotation for Desert Willow Golf Resort. You can expect delivery 90 days after receipt of order and Club Car Financial Services Approval.

Sourcewell Contract Pricing - 122220-CCR
June 6th, 2026
Expiration Date: July 20th, 2026
Quote #: Desert Willow Golf Resort
For:

Derek White
Desert Willow Golf Resort
38-995 Desert Willow Dr
Palm Desert, CA 92260-1674
USA
On Behalf of:

Connor Riley
424-903-9426
[email protected]

CLUB CAR, LLC
Club Car LLC
4125 Washington Road
Evans, GA 30809
TEL (706) 863-3000
TOLL FREE (800) 227-0739
www.ClubCar.com
501
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Purchase Price
Car Type Quantity List Price Kemper Price Offered Price Total Fleet Car 172 $ 17,750.00 $ 8,875.00 $ 8,685.19 $ 1,493,852.68 Marshall Car 4 $ 18,000.00 $ 9,000.00 $ 8,644.30 $ 34,577.20 Onward 6 Seater 3 $ 23,250.00 $ 23,250.00 $ 18,916.41 $ 56,749.23 CarryAll 500 - Driving
Range Unit 1 $ 25,560.00 $ 21,726.00 $ 20,999.03 $ 20,999.03 CarryAll 500 -
Maintenance 4 $ 20,300.00 $ 17,255.00 $ 16,487.89 $ 65,951.56 CAFÉ Express -
Lithium 3 $ 34,750.00 $ 29,537.50 $ 28,394.05 $ 85,182.15 Trade In value 187 $ (344,000.00)
Pretax Total
$
1,413,311.85
Add Ons
Service Current Pricing
2026 Pricing w
Standard Kemper National
Account Pricing
2026 Desert Willow
Special Pricing
Technology (Total
Package)
$40.50 pupm
(V3 screens)
Option 1 – same V3 Screens -
$40.50 pupm
Option 2 - Upgraded V4 screen
- $55 pupm
Option 3 - Upgraded V4 screen
WITH Speakers - $59 pupm
Option 1 – Keep V3
Screens - $38.50 pupm
Option 2 - Upgraded V4
screen - $52 pupm
Option 3 - Upgraded V4
screen with speakers - $50
pupm
Service Plan (Quarterly)
$15 per fleet car
(176)
$65 per Utility (11)
Monthly Total =
(660+2640) = $3300
$18 per fleet car (176)
$70 per Utility (11)
Monthly Total = (700+3168) =
$3938
$16 per fleet car (176)
$65 per Utility (11)
Monthly Total = (660+2816)
= $3476
502
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Purchase Price
Car Type Quantity Price Total
Tempo 2Pass Lithium Ion Electric - Fleet 172 $6,685.19 $1,149,852.68 Tempo 2Pass Lithium Ion Electric –
Marshall 4 $8,644.30 $34,577.20
6 Passenger 3 $18,916.41 $56,749.23
Carryall 500 Lithium – Driving Range
Unit 1 $20,999.03 $20,999.03
Carryall 500 Lithium – Maintenance 4 $16,487.89 $65,951.56 Cafe Express Lithium 3 $28,394.05 $85,182.15
Total $ 1,413,311.85
With Tax 8.75% $ 1,567,076.64
Capital Finance Options
48 Payments - 48 Months
Car Type Quantity Per Car Per Month Monthly Total
Tempo 2Pass Lithium Ion Electric - Fleet 172 $156.97 $26,999.05 Tempo 2Pass Lithium Ion Electric –
Marshall 4 $202.97 $811.89
6 Passenger 3 $444.17 $1,332.50
Carryall 500 Lithium – Driving Range
Unit 1 $493.07 $493.07
Carryall 500 Lithium – Maintenance 4 $387.14 $1,548.57
Cafe Express Lithium 3 $666.70 $2,000.11
Total Monthly $ 33,185.19
54 Payments - 54 Months
Car Type Quantity Per Car Per Month Monthly Total
Tempo 2Pass Lithium Ion Electric - Fleet 172 $141.54 $24,344.96 Tempo 2Pass Lithium Ion Electric –
Marshall 4 $183.02 $732.08
6 Passenger 3 $400.50 $1,201.51
Carryall 500 Lithium – Driving Range
Unit 1 $444.60 $444.60
Carryall 500 Lithium – Maintenance 4 $349.09 $1,396.34
Cafe Express Lithium 3 $601.17 $1,803.50
Total Monthly $ 29,922.98
60 Payments - 60 Months
Car Type Quantity Per Car Per Month Monthly Total
Tempo 2Pass Lithium Ion Electric - Fleet 172 $129.21 $22,224.53 Tempo 2Pass Lithium Ion Electric –
Marshall 4 $167.08 $668.31
6 Passenger 3 $365.62 $1,096.86
503
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Carryall 500 Lithium – Driving Range
Unit 1 $405.87 $405.87
Carryall 500 Lithium – Maintenance 4 $318.68 $1,274.72
Cafe Express Lithium 3 $548.80 $1,646.41
Total Monthly $ 27,316.71
Lease Options (Return to Club Car)
48 Month Lease
Car Type Quantity Per Car Per Month Monthly Total
Tempo 2Pass Lithium Ion Electric - Fleet 172 $87.64 $15,073.79 Tempo 2Pass Lithium Ion Electric –
Marshall 4 $133.64 $534.56
6 Passenger 3 $362.82 $1,088.45
Carryall 500 Lithium – Driving Range
Unit 1 $410.33 $410.33
Carryall 500 Lithium – Maintenance 4 $304.41 $1,217.62
Cafe Express Lithium 3 $583.97 $1,751.90
Total Monthly $ 20,076.65
54 Month Lease
Car Type Quantity Per Car Per Month Monthly Total
Tempo 2Pass Lithium Ion Electric - Fleet 172 $80.86 $13,908.49 Tempo 2Pass Lithium Ion Electric –
Marshall 4 $122.34 $489.37
6 Passenger 3 $329.31 $987.92
Carryall 500 Lithium – Driving Range
Unit 1 $372.19 $372.19
Carryall 500 Lithium – Maintenance 4 $276.68 $1,106.71
Cafe Express Lithium 3 $528.76 $1,586.27
Total Monthly $ 18,450.95
60 Month Lease
Car Type Quantity Per Car Per Month Monthly Total
Tempo 2Pass Lithium Ion Electric - Fleet 172 $78.32 $13,470.67 Tempo 2Pass Lithium Ion Electric –
Marshall 4 $116.18 $464.74
6 Passenger 3 $309.71 $929.12
Carryall 500 Lithium – Driving Range
Unit 1 $353.90 $353.90
Carryall 500 Lithium – Maintenance 4 $266.71 $1,066.84
Cafe Express Lithium 3 $496.83 $1,490.50
Total Monthly $ 17,775.78
504
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(172) 2027 Club Car Tempo 2 Passenger – Fleet Car
Build
Qty Product
172 Gen 3 Lithium 2027 Tempo 2 Passenger
172 Connectivity Rental – baskets/or speakers
172 White Body Color
172 Custom Seat Color
172 Standard Wheel Cover
172 Shelf charger 650W, 9' DC Cord
172 Standard 8 in wheels
172 Silver Club Car Nameplate & Number Decals
172 Upper Center Storage, Cell Phone Holder
172 Lower Center Storage, Upgrade (No Wireless Charging) 172 Side Storage, Dual Side Storage Locking Gloveboxes
172 13.2 MPH
172 6 ft AC Power Cord with US NEMA Plug
172 Normal Acceleration Drive Profile
172 Pedal Up Braking- Off
172 1A Keyswitch Lithium
172 Premium Tinted Windshield Kit
172 Differential Guard
172 Canopy Kit - Black
1 Auto Park Brake Service Tool
172 Heavy Duty Rear Suspension Install
172 Golf Comfort grip / premium consumer steering wheel with scorecard clip electric car 172 Ball and Club Cleaner Passenger Side
172 Cooler – Driver Side
172 Auto Park Brake
172 Custom Logo Center of Cowl
505
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506
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Lease Return/Trade-In Vehicles
Car Type Quantity Trade In Amount
Desert Willow Fleet – 187 $344,000
Terms and Conditions for Returning Vehicles or Trade-Ins Sole Responsibility
Desert Willow Golf Resort Golf Club agrees to accept sole responsibility for any loss, damage, or reduction in trade in value to its returned or trade-in cars beyond ordinary wear and tear due to normal use. Any cars not in good operating condition or damaged will be reduced in trade-in value accordingly.

The returned cars must meet the following conditions:

All cars must be free of all liens and encumbrances.

All cars must be capable of running at least 9 holes of golf.

All cars must be the same quantity and year model as originally evaluated.

All cars must be clean, and free of trash, scorecards, pencils, tees, etc.

All cars must have a working charger.

All cars must have four serviceable tires that retain proper air pressure.

All cars must steer properly in all directions.

All batteries must be free of corrosion, and properly filled with water.

Desert Willow Golf Resort Golf Club agrees to pay the charges at current market rates if the below conditions are found upon Club Car’s inspection of the returned cars:

1. Severely damaged or missing chargers

2. Inoperable cars excluding due to Lithium Battery Pack

3. Minor damage (damage to bodies, bumpers or seats)

4. Major damage (frame damage, wrecked cars, etc.)

5. Cars deemed unrepairable-total loss

6. Dead or non-working battery pack or power train
Accepted By:

Company: Desert Willow Golf Resort
Title:

Date:
507
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Confidentiality of Pricing. All discount percentages (and the resulting Product pricing) are the confidential and proprietary information of Club Car. Customer shall not disclose such information to any third party without Club Car’s prior consent.

The products set forth in this proposal are intended only for the Customer set forth above and may not be resold within twelve months of delivery without Club Car's prior written consent. Customer shall be responsible for, and expressly agrees to pay, the difference between prices quoted herein and Consumer Retail Pricing for any vehicles resold within twelve months of delivery.

Please note the actual price will be determined by the interest rate at the time of delivery. The above pricing are firm for the next 60 days. Club Car LLC reserves the right to adjust the pricing within 60 days of delivery.

Prices quoted herein are projected for a future estimated date of delivery of Club Car golf and utility products. Due to current market conditions and estimated lead times, pricing and interest rates are subject to change prior to projected delivery. In the event customer’s current fleet is not available for trade-in at the time of delivery, Club Car reserves the right to adjust pricing accordingly, and Customer agrees to be responsible for any prices increases and to promptly pay any invoices therefor. Customer is to submit required credit information for credit approval. Any applicable State or Local Taxes or any additional fees associated with documentation are not included. If for any reason projected delivery is delayed, customer will continue to make existing lease payments per current lease contract terms and conditions.
©2024 Club Car, LLC. All rights reserved. Club Car believes the information and specifications in this quote were correct as of the date of this proposal. Due to current market conditions and estimated lead times, pricing and interest rates are subject to change prior to projected delivery. Specifications, standard features, options, fabrics, and colors are subject to change 60 days prior to delivery. Some features may be unavailable when your vehicle is built. Some vehicles are pictured with options that may be available at extra cost or may not be available on some models. Ask your dealer or Club Car representative about the availability of options and verify that the vehicle you ordered includes the equipment you ordered.

There are no warranties, expressed or implied, contained herein. See the Limited Warranty in the owner’s manual or write to: Club Car, PO Box 204658, Augusta, GA 30917. Club Car reserves the right to make design changes without obligation to make these changes on previously sold units or systems. These vehicles are designed and manufactured for off-road use only. They do not conform to Federal Motor Vehicle Safety Standards for automobiles or to FMVSS 500 for low-speed vehicles and are not equipped for operation on public streets, roads, or highways. Please see the Operator’s Manual for important safety and operating instructions for your vehicle(s).

This quote for products, equipment, and parts is subject to Club Car’s Terms and Conditions of Equipment Sale, as revised or amended from time to time (the “Terms”). The Terms, which are incorporated into this quote by reference, are located at Terms and Conditions, and Customer hereby acknowledges receipt, review, and acceptance of the Terms. At Customer’s written request, Club Car will mail Customer a copy of the Terms. Club Car hereby gives notice of its objection to any additional or different terms included in any purchase order or other form submitted by Customer.

Terms: FCA – Club Car, Augusta Georgia (Incoterms 2020). 512
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Notes/Comments:

Respectfully,
Date
Connor Riley
Golf Territory Manager
Printed name \ title
Accepted by:

Print name:

Title:

Date:

PO Number:
513
514

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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: Approve the Management District Plan and Engineer’s Report and Order the Levy and Collection of Assessments for the President’s Plaza I Property and Business Improvement District for Fiscal Year 2026/27
Recommendation

1. Adopt a resolution entitled “A Resolution of the City Council of the City of Palm Desert, California, Approving and Adopting the Management District Plan and Engineer’s Report for the President’s Plaza I Property and Business Improvement District for Fiscal Year 2026/2027.”

2. Adopt a resolution entitled “A Resolution of the City Council of the City of Palm Desert, California, Ordering the Levy and Collection of Assessments for the President's I Plaza Property and Business Improvement District for Fiscal Year 2026/2027.” Executive Summary
The President’s Plaza I Property and Business Improvement District (PBID I) was established to fund the maintenance and operation of common parking lot areas serving properties within the district. Each year, the City Council must approve the Management District Plan and Engineer’s Report and order the levy and collection of assessments to fund services and improvements within the district.

The proposed Fiscal Year 2026/27 Management District Plan and Engineer’s Report continues the assessment structure previously approved by property owners and includes the annual three percent (3%) cost-of-living adjustment authorized under the current five-year district renewal. In addition, the Fiscal Year 2026/27 budget includes the planned City-funded contribution to the Capital Improvement Reserve established during the FY 2022/23 PBID renewal process to support long-term parking lot capital maintenance and help prevent deferred maintenance. Adoption of the attached resolutions will allow the County of Riverside to levy and collect the assessments on behalf of the City.

Background
The President’s Plaza I Property and Business Improvement District (PBID I) was originally formed in Fiscal Year 1998/99 for a five-year term. Since its formation, a majority of affected property owners have voted to renew the district for multiple successive five-year terms. The current renewal term extends from Fiscal Year 2022/23 through Fiscal Year 2026/27.

PBID I encompasses the common parking lot area generally bounded by Palm Desert Drive South to the north, El Paseo Drive to the south, Portola Avenue to the east, and San Luis Rey 515

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Avenue to the west. The district boundaries are shown in the attached Management District Plan and Engineer’s Report.

Although the district is renewed for five-year periods, state law requires the Management District Plan and Engineer’s Report to be prepared and approved annually. In addition, the County of Riverside requires annual authorization from the City Council to levy and collect assessments within the district.

During the FY 2022/23 PBID renewal process, the City Council first expressed support at its May 12, 2022 meeting for establishing a City-funded capital improvement reserve for Presidents’ Plaza and, on July 14, 2022, authorized the creation of a Capital Improvement Reserve and began funding it. The five-year reserve schedule included planned annual contributions increasing from $74,100 in Fiscal Year 2022/23 to $83,400 in Fiscal Year 2026/27. The reserve is intended to fund major pavement maintenance activities, including slurry sealing and restriping every five years and asphalt resurfacing every 20 years, to avoid deferred maintenance, protect public health, safety, access, and long-term condition of the asset in the City’s core commercial area.

Analysis
The County of Riverside levies and collects annual assessments from property owners within PBID I on behalf of the City. Assessment revenues fund landscape maintenance, street sweeping, refuse collection, parking lot utilities, and other services benefiting the common parking areas within the district.

The proposed Fiscal Year 2026/27 Management District Plan and Engineer’s Report continues the assessment methodology previously approved by the property owners and includes the annual three percent (3%) cost-of-living adjustment authorized under the current five-year renewal term. collects
Approval of the attached resolutions will adopt the Fiscal Year 2026/27 Management District Plan and Engineer’s Report and authorize the County of Riverside to levy and collect assessments on behalf of the City. These assessments ensure continued funding for maintenance and operational services that support the district and its property owners.

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

Financial Impact
Assessment revenues collected through the annual levy will fund eligible PBID I services, annual operations, and authorized maintenance activities identified in the Management District Plan and Engineer’s Report. These revenues and related expenditures are included in the proposed Fiscal Year 2026/27 Financial Plan.

The Fiscal Year 2026/27 budget includes a transfer of $83,400 from the General Fund to PBID Capital Reserve Account No. 2770000-2430201 for the City-funded Capital Improvement Project Reserve. The reserve fund was originally approved by City Council during the FY 516

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2022/23 PBID renewal process to support long-term capital maintenance of the Presidents’ Plaza shared parking facilities.

The City-funded reserve is maintained distinctly from the annual PBID assessment levy and is intended to accumulate funding for larger pavement-related maintenance needs, including asphalt patching, slurry sealing, restriping, and future resurfacing. This planned annual contribution supports long-term asset preservation and helps avoid significant one-time funding impacts when major parking lot maintenance is required.

Attachments

1. Resolution to Approve the Management Plan and Engineer’s Report

2. Resolution to Order the Levy and Collection of Assessments

3. FY 2026/27 Management District Plan and Engineer’s Report 517

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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: The Parking lot area generally bounded by Palm Desert Drive South to the north, El Paseo Drive to the south, Portola Avenue to the east, and San Luis Rey Avenue to the west.

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).

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). 518
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Resolution No. 2026- ____
A Resolution of the City Council of the City Of Palm Desert, California, Approving and Adopting The Management District Plan for the President’s Plaza I Property and Business Improvement District for Fiscal Year 2026/2027
The City Council of the City of Palm Desert, California (hereafter referred to as the "City Council") does resolve as follows:

Whereas, in fiscal year 2022/2023, the City Council conducted proceedings for the renewal of the President’s Plaza I Property and Business Improvement District (hereafter referred as the “District”) and the levy of assessments connected therewith, in accordance with the provisions of the Property and Business Improvement District Law of 1994, part 7 of division 18 of the Streets and Highways Code of California (hereafter referred to as the "Act") and California Constitution article XIII D; and Whereas, on June 23, 2022, the City Council held a full and fair public hearing regarding the renewal of the District and the establishment of annual assessments and maximum assessments that are required to pay for the maintenance and services of landscaping, lighting, refuse collection, and all appurtenant facilities and operations related thereto, for a five year period beginning July 1, 2022 and ending June 30, 2027, in accordance with the Act; and
Whereas, upon the conclusion of the public hearing of June 23, 2022, the City Council counted the property owner assessment protest ballots returned and, by resolution, confirmed that a majority protest did not exist. The City Council, by resolution, approved the Management District Plan, appointed an Advisory Board for the District, ordered the renewal of the District, and ordered the levy and collection of the annual assessments; and
Whereas, the City Council appointed the El Paseo Business Association as the Advisory Board for the District and the Advisory Board has caused to be prepared a report in connection with the District that describes proposed changes to the District boundaries, if any, the proposed improvements and, services to be provided, the estimated costs and methods of assessment, the amount of any surplus or deficit, including contributions from other sources, if any, and the assessments to be levied for fiscal year 2026/2027. This report is entitled, “City of Palm Desert President’s Plaza Property and Business Improvement District Management District Plan and Engineer’s Report Fiscal Year 2026/2027” (hereafter referred to as the “Plan”). The Plan has been filed with the City Clerk of the City of Palm Desert, and the City Clerk has presented it to the City Council; and
Whereas, the City Council has carefully examined and reviewed the Plan, as presented, and is satisfied with each and all of the items and documents, as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits that will be received from the improvements, operation, maintenance, and services to be performed, as set forth in the Plan. 519
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Now, therefore, be it resolved, determined, and ordered by the City Council of the City of Palm Desert, California, as follows:

Section 1. Recitals.

The above recitals are true and correct and are incorporated herein by this reference.

Section 2. Components of Plan.

The Plan, as presented, consists of the following:

A. A description of District boundaries and all properties benefiting from the improvements and services.

B. A description of improvements and services that the District will provide.

C. The annual budget (estimates of costs and expenses of services, operations, and maintenance).

D. The methods and basis of levying the assessments.

E. The estimated amount of any surplus/deficit from the previous fiscal year and the estimated amount of any contributions to be made from other sources.

Section 3. Approval of Plan.

The Plan, as presented, is hereby approved and ordered filed with the Office of the City Clerk as a permanent record open to public inspection.

Section 4. Certification of Resolution.

The City Clerk will certify the passage and adoption of this resolution. The minutes of this meeting will reflect the presentation and final approval of the Plan, and the appointment of the District Advisory Board.

Section 5. Effective Date.

This Resolution shall become effective immediately upon its adoption. 520
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Adopted on __________________.
______________________
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
521
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Resolution No. 2026-____
A Resolution of the City Council of the City of Palm Desert, California, Ordering the Levy and Collection of Assessments for the President’s I Plaza Property and Business Improvement District for Fiscal Year 2026/2027 The City Council of the City of Palm Desert, California (hereafter referred to as the "City Council") does resolve as follows:

WHEREAS, on June 23, 2022, the City Council called and duly held a public hearing and property owner protest ballot proceedings for the President’s Plaza I Property and Business Improvement District (hereafter referred to as the “District”), pursuant to the provisions of Property and Business Improvement District Law of 1994, part 7 of division 18 of the Streets and Highways Code of California (hereafter referred to as the “Act”), and California Constitution article XIII D, for the purpose of presenting to qualified property owners within the District the annual levy of assessments and a maximum annual assessment over a five-year period, beginning July 1, 2022 and ending June 30, 2027, for the costs and expenses associated with the maintenance and operation of landscaping, lighting, refuse collection, and all appurtenant facilities related thereto; and
WHEREAS, the landowners of record within the District, as of the close of the public hearing held on June 23, 2022, did cast their ballots and approve a five-year District renewal and an annual levy of assessment related thereto; and WHEREAS, the City Council did, by previous resolutions, renew the District for an additional five years and appoint the El Paseo Business Association as the Advisory Board for the District, pursuant to the Act. The resolution renewing the District adopted on June 23, 2022, following the public hearing (the “Resolution of Formation”) is incorporated herein by this reference and is made a part of this Resolution. This Advisory Board has caused to be prepared an annual report on the District for the City Council’s approval; and
WHEREAS, the Advisory Board has held a meeting to review and approve the proposed budget for fiscal year 2026/2027 and has prepared a report regarding the District for fiscal year 2026/2027. This report is entitled, “City of Palm Desert President’s Plaza Property and Business Improvement District Management District Plan and Engineer’s Report Fiscal Year 2026/2027” (hereafter referred to as “Plan”). The Plan has been filed with the City Clerk of the City of Palm Desert, and the City Clerk has presented it to the City Council; and
WHEREAS, the City Council has carefully examined and reviewed the Plan as presented and, by a previous resolution, did approve it. 523
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Now, therefore, be it resolved, determined, and ordered by the City Council, the legislative body for the district, as follows:

Section 1. Recitals.

The above recitals are true and correct and are incorporated herein by this reference.

Section 2. Levy of Assessments.

The City Council wishes to levy annual assessments for fiscal year 2026/2027, as outlined and authorized in the Plan and pursuant to the provisions of the Act.

Section 3. City Council Findings.

Based upon its review of the Plan, a copy of which has been presented to the City Council and filed with the City Clerk, the City Council hereby finds and determines that:

A. The land within the District will receive special benefits from the operation, maintenance, and servicing of the improvements and appurtenant facilities within the boundaries of the District.

B. The District includes all of the lands so benefitted.

C. The net amount to be assessed upon the lands within the District, in accordance with the proposed budget for the fiscal year commencing July 1, 2026, and ending June 30, 2027, is apportioned by a formula and by a method that fairly distributes the net amount among all eligible parcels, in proportion to the special benefits that each parcel receives from the improvements and services.

D. The assessments described in the Plan are consistent with the assessments that District property owners have approved.

Section 4. Confirmation of Plan and Assessments.

The Plan and the assessments, as presented to the City Council and as presented for filing with the Office of the City Clerk, are hereby confirmed as filed.

Section 5. Improvements Ordered.

The City Council hereby orders the proposed improvements to be made, and the levy and collection of annual assessments to pay for those improvements to be presented to the County Auditor/Controller of Riverside County (hereafter referred to as the “County”) for fiscal year 2026/2027. The County will enter on the County Assessment Roll, opposite each parcel of land, the amount of the assessments. The 524
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assessments will be collected at the same time and in the same manner as County general taxes are collected. After the County collects the levy, the net amount of the levy will be paid to the Treasurer of the City of Palm Desert.

Section 6. Restricted Use of Assessment Money.

The City Treasurer will deposit all money representing assessments that the County has collected for the District, into a District fund. This money will be expended only for the improvements that the Plan describes.

Section 7. Adoption of District Levy.

The adoption of this Resolution, and the Resolution of Formation by this reference, constitutes the District levy for the fiscal year commencing July 1, 2026 and ending June 30, 2027.

Section 8. Directions to the City Clerk.

The City Clerk is hereby authorized and directed to file the levy with the County upon adoption of this resolution.

Section 9. Effective Date.

This Resolution shall become effective immediately upon its adoption.

Adopted on ________________________
________________________________
Evan Trubee,
Mayor
Attest:
__________________________________
Anthony J. Mejia,
City Clerk
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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
526

City of Palm Desert
Presidents’ Plaza Property and
Business Improvement District

MANAGEMENT DISTRICT PLAN
AND ENGINEER’S REPORT
FISCAL YEAR 2026/2027
PUBLIC HEARING: JUNE 25, 2026
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500 | 800.755.6864
F 951.587.3510
www.willdan.com
527

ENGINEER'S REPORT AFFIDAVIT
City of Palm Desert
Presidents’ Plaza I
Property and Business Improvement District
City of Palm Desert
Riverside County, State of California
This Report describes the District and defines improvements, budget and method of assessment apportionment, and the parcels to be levied for Fiscal Year 2026/2027 as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this ____________ day of ______________, 2026.

Willdan Financial Services
Assessment Engineer
On Behalf of the City of Palm Desert
By: ________________________________
Chonney Gano, Project Manager
District Administrative Services
By: ________________________________
Tyrone Peter
PE # C81888
18 May
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TABLE OF CONTENTS
I. OVERVIEW ....................................................................................... 1 Introduction ...................................................................................................... 1 Renewal/Formation .......................................................................................... 2 II. DESCRIPTION OF THE DISTRICT .................................................. 3 District Boundary ............................................................................................. 3 Improvements and Activities .......................................................................... 3 Capital Improvement Projects ........................................................................ 4 Special Benefits ............................................................................................... 4 III. METHOD OF APPORTIONMENT .................................................... 6 Method of Apportionment Rationale .............................................................. 6 Parking Lot Improvements and Services ...................................................... 6 Solid Waste (Refuse) Collection Services .................................................... 6 Method of Apportionment Calculations ......................................................... 8 Apportionment of Direct Costs ...................................................................... 9 Apportionment of Indirect Costs ................................................................. 10 Total Annual Assessment ........................................................................... 10 Annual Budget Adjustments ....................................................................... 11 IV. DESCRIPTION OF BUDGET ITEMS .............................................. 12 Direct Benefit Costs ....................................................................................... 12 Indirect Benefit Costs .................................................................................... 12 Levy Breakdown ............................................................................................ 13 District Statistics............................................................................................ 14 District Budget ............................................................................................... 14 APPENDIX A – ASSESSMENT DIAGRAM .......................................... A APPENDIX B – PARCEL LEVY INFORMATION .................................. B APPENDIX C – ASSESSMENT ROLL ................................................. C 529
2026/2027 Presidents’ Plaza Property and Business Improvement District Page 1 I. Overview
Introduction
The City of Palm Desert (City) previously formed and established the Presidents’ Plaza Property and Business Improvement Assessment District (District) beginning in Fiscal Year (FY) 1998/1999 to provide improvements and activities that confer special benefits upon real property within the boundaries of the District. The District was established and levied pursuant to Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Code (the Act). Pursuant to the Act, property owners within the District submitted a signed petition requesting formation of the District. For each term, a maximum assessment was approved by the property owners through an assessment ballot proceeding, conducted according to provisions of the California Constitution Article XIIID (Proposition 218).

The District was successfully formed for a term of five years ending in FY 2002/2003. Subsequently, the District was renewed for a five-year term in FY 2003/2004, 2008/2009 and 2015/2016. In FY 2020/2021, the District was renewed for two years due to uncertain future costs at that time. In FY 2022/2023, the District was once again renewed for five years. Under the provisions of the Act, property owners within the District may have renewed the District for a maximum term of ten (10) years.

This combined Management District Plan and Engineer’s Report hereinafter referred to as “Plan” or “Report” is presented for consideration by the property owners within the area known and commonly referred to as Presidents’ Plaza, to seek their support for the organization of a business improvement district in accordance with the provisions of the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et. seq., hereinafter referred to as the Act. This is the Management District Plan and Engineer’s Report required by Section 36622 of the Act, for the proposed formation and establishment of the Presidents’ Plaza Property and Business Improvement District hereinafter referred to as “District” or “PBID”, to fund services and activities to improve and convey special benefits to properties located within the boundaries of the District.

This Report describes the PBID, improvements and activities, method of apportionment, proposed assessments for the current fiscal year, and maximum assessment proposed for the five-year duration of the re-formed District. The proposed assessments are based on the estimated cost to provide the improvements, activities, and operations that provide a direct and special benefit to properties within the District. The costs of improvements, activities, and operations include all expenditures, deficits, surpluses, revenues, and reserves.

The word “property,” for the purposes of this Plan, refers to real property situated within the District, and identified as an individual property or parcel assigned its own Assessor’s Parcel Number (APN) by the County of Riverside Assessor’s Office. The County of Riverside Auditor/Controller uses APNs to identify on the tax roll parcels and properties assessed for taxes, special assessments, and fees and charges.

All benefits derived from the assessments outlined in the Management District Plan and Engineer’s Report are for services directly benefitting the property and business owners within this specialized district and are intended to support and enhance commerce, business and the overall safety, image, and functionality within this commercial core. All services, projects, maintenance, and professional and administration services are provided solely to properties within the PBID to enhance the image and viability of properties and businesses within the PBID boundaries and are designed only for the direct special benefit of the assessed properties.

No services will be provided to non-assessed parcels outside the PBID boundaries. 530
2026/2027 Presidents’ Plaza Property and Business Improvement District Page 2 Renewal/Formation
A written petition of the property owners within the PBID, representing more than 50% of the proposed assessment to be levied was submitted to the Palm Desert City Council in order to proceed with the District renewal/formation. After the required signatures were submitted to the City, the City Council initiated proceedings for the renewal of the District by adopting a resolution expressing its intention to form the PBID and ballot the property owners for the proposed assessments in accordance with the provisions of the Constitution. The resolution of intention referenced the Management District Plan and Engineer’s Report and provided notice of the time and place of a public hearing on the re-establishment of the PBID and levy of assessments.

Within 90 days of adopting the resolution of intention, the City Council held a public hearing on the matter and caused notice to the property owners pursuant to Section 54954.6 of the Government Code. Assessment ballots (property owner protest ballots) were mailed to each property owner at least 45 days prior to the public hearing pursuant to the California Constitution. Pursuant to the Code, the City Council also caused the publication of the resolution of intention in a newspaper of general circulation; mailed the resolution of intention by first-class mail to each property owner in the District and to each local chamber of commerce and business organization located within the District.

At the public hearing, the City Council provided the public and property owners an opportunity to provide oral protests and written protests prior to the adoption of the Management District Plan. Pursuant to the California Constitution, the City Council tabulated property owner assessment ballots received from property owners to determine whether a majority protest existed. It was determined and declared by resolution that majority protest did not exist, which implied that the property owners confirmed and approved the assessments.

Since the property owners approved the renewal of the District and imposition of the assessments, the City Council can appoint an owner’s association for the District. This owner’s association shall make recommendations to the City Council regarding the expenditures of revenue derived from the levy of assessments and on the classification of properties as applicable. This owner’s association can cause to be prepared an annual report each fiscal year for which assessments are to be levied and collected. Said annual report shall be filed with the City Clerk and shall contain: any proposed changes to the district boundary; the improvements and activities to be provided that year; the estimated costs for that year; the method of assessment; the amount of any surplus or deficit; and contributions from other sources. The City Council may approve the report as submitted or as modified.
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2026/2027 Presidents’ Plaza Property and Business Improvement District Page 3 II. Description of the District
District Boundary
The District consists of all parcels located in the commercial business area known as the Presidents’ Plaza within the City of Palm Desert, County of Riverside. The District includes forty-two (42) assessed commercial parcels, three (3) non-contiguous and non-assessed parking lot parcels, and one (1) non-assessed easement/walkway parcel.

The boundary of the District and parcels therein are located south of Palm Desert Drive at Highway 111; north of El Paseo; west of Portola Avenue; and east of Larkspur Lane. Presidents’ Plaza is commonly referred to as Presidents’ Plaza East (area east of San Luis Rey Avenue); and Presidents’ Plaza West (area west of San Luis Rey Avenue) located within the boundaries of the District.

Improvements and Activities
To enhance and improve business opportunities and the appearance of Presidents’ Plaza, the City financed and managed capital improvements of the parking lot and landscaped and common areas related to this commercial business center. Additional information regarding the improvements is found in the next section.

It has been determined the properties within the District and the businesses associated with those properties receive special and distinct benefits from the improvements and activities to be funded through the assessments. The improvements include the necessary activities, services, operation, administration, and maintenance required to keep the improvements in satisfactory condition including labor, material, and equipment. The services may include, but are not limited to, regular maintenance, repair, removal or replacement of all or any part of the improvements, including patching of asphalt, slurry sealing, and striping of the parking lot areas; removal of trimmings, rubbish, debris and other solid waste; the cleaning, sandblasting, and repainting of walls and other improvements to remove or cover graffiti; providing for the growth, health and beauty of landscaping and lighting including cultivation, trimming, spraying, fertilizing or treating for disease or damage; as well as supplying necessary irrigation and electrical energy. The specific improvements and activities include:
 Parking Lot Landscaped Areas: Includes, but not limited to, ground cover, shrubs, trees, plants, irrigation, and drainage systems and associated appurtenant facilities.  Parking Lot Lighting Facilities: Includes, but not limited to, bulbs, fixtures, poles, wiring, and electrical energy.
 Debris Removal: Includes, but not limited to solid waste containers, refuse collection services, and continual sweeping services of the parking lot.
 Parking Lot Maintenance: Includes, but not limited to, short and long-term maintenance improvements such as patching of asphalt, slurry sealing, and parking lot striping required to properly maintain and ensure the satisfactory condition of parking lots and appurtenant facilities.

The costs associated with the improvements are equitably spread among all benefiting parcels in the District utilizing the method of apportionment described in the Method of Apportionment section of this Plan. The total funds collected shall be dispersed and used for only the services and operations provided to the District. 532
2026/2027 Presidents’ Plaza Property and Business Improvement District Page 4 Capital Improvement Projects
As a privately owned shared parking facility, Presidents’ Plaza east and west parking lots were last rehabilitated in 1997. Since then, these aging and heavily used parking lots required a major rehabilitation, including to its asphalt concrete pavement, utility infrastructure, landscape areas and pedestrian walkways.

As a result of the conditions, a major renovation was undertaken by the City of the east and west parking lots. This project, which costs approximately $11.5 million, began in June 2021. The Notice of Completion was filed in January 2023. Approximate improvements include, but are not limited to:
 Grading to address drainage issues.
 Asphalt concrete pavement and striping (260,000 square feet).  Upgrades to domestic water, wastewater, communications, and underground electrical systems.  Enhanced pedestrian walkways (20,000 square feet).
 Water lines (15,000 linear feet).
 Curb and gutter (11,000 linear feet).
 Decorative pavers (10,000 square feet).
 Drought-tolerant landscaping and planters.
 Lighting fixtures (174).
 Parking shade structures (22).
 Trash enclosures (14).
 Benches and chairs (5).

During construction, the contractor encountered various existing public and private utilities in conflict with the project, which had to be relocated by the contractor and/or utility companies as well.

Special Benefits
All assessed properties within the District receive special benefits from one or more of the improvements and activities funded through the District assessments. Specifically, utilities (lighting and water), landscape maintenance and repairs, sweeping services, short and long-term parking lot maintenance, and refuse collection services.

Lighting
The special benefits of lighting (parking lot lights) are for the convenience, safety, and security of property, improvements, and goods. Specifically:
 Enhanced deterrence of crime and the aid to police protection.  Increased evening safety for patrons and employees.
 Improved visibility for pedestrians and motorists.
 Improved ingress and egress to property.
 Reduced vandalism and other criminal acts and damage to improvements or property.  Enhanced aesthetic appeal of parking areas and adjacent properties. 533
2026/2027 Presidents’ Plaza Property and Business Improvement District Page 5  Increased promotion of business activities and opportunities during evening hours.  The special economic enhancement to the properties and their ability to attract and sustain business and commercial activity because of the benefits identified above.

Landscape
The special benefits of landscaped islands and medians within the parking lots include:
 Improved aesthetic appeal of the parking areas and adjacent properties.  Enhanced adaptation of the urban environment within the natural environment.  A positive representation of the businesses within the District.  The special economic enhancement to the properties and their ability to attract and sustain business and commercial activity because of the benefits identified above.

Debris Removal
Debris removal (parking lot sweeping) and refuse collection are essential and necessary activities for all properties, especially for commercial properties. These activities and services are proposed to be funded through the assessments solely for the special benefit of properties within the District. The benefits of these services include:
 Enhanced aesthetic appeal of the parking areas and adjacent properties.  Improved dust control.
 A positive representation of the businesses within the District.  A centralized location of refuse collection facilities.  Availability of refuse collection services that would otherwise require individual facilities that could be cost prohibitive and physically restrictive.

Parking Lot Maintenance
Parking lot maintenance is an essential and necessary activity for all properties, especially for commercial properties. This improvement is funded through the assessments solely for the special benefit of properties within the District. The benefits of these services include:
 Increased safety to automobile, truck, and pedestrian traffic and to properties.  Improved traffic circulation within the parking areas.  Enhanced aesthetic appeal of the parking areas and adjacent properties.  Improved dust control.
 The special economic enhancement to the properties and their ability to attract and sustain business and commercial activity because of the benefits identified above.

The continual operation and maintenance of the landscaping, lighting, debris, and parking lot areas provide no measurable general benefit to other properties outside the boundaries of the District, or to the public at large; therefore, these improvements and the corresponding assessments have been identified as providing 100% special benefit to parcels within the District.
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2026/2027 Presidents’ Plaza Property and Business Improvement District Page 6 III. Method of Apportionment
Method of Apportionment Rationale
The costs of the District improvements have each been apportioned by a formula and method which fairly distributes the net amount to be assessed among all assessed parcels in proportion to the estimated special benefits to be received by each parcel from the improvements.

Parking Lot Improvements and Services
Assessed parcels in Presidents’ Plaza are adjacent to centralized parking facilities (lots) that provide access, parking, and delivery areas for the businesses and parcels within the District. Each parcel derives special benefit from the parking lot improvements and services necessary to maintain the parking lot. The improvements and services include landscape maintenance of several islands and medians; maintenance and operation of lighting facilities, short and long-term parking lot maintenance, and sweeping services. Each assessed parcel within the District receives a direct and special benefit from these improvements and will share proportionately in the cost of maintaining the parking lots. The parking areas consist of the threecomplete parking lot areas along with a portion of parking areas throughout the District. The three parcels that are entirely parking lots (627-212-016; 627-221-011; and 627-222-043), and one easement/walkway parcel (627-222-042) receive no special benefit from the improvements and will not be assessed.

In determining the method of apportionment for these improvements, each parcel’s benefit is based on the parking area adjacent to, and associated with, each parcel. Therefore, it has been determined that a fair and reasonable reflection of each parcel’s benefit for the parking lot improvements shall be based on the approximate front footage adjacent to the parking areas. Most parcels within the District front the parking lots on only one side. To ensure a reasonable and equitable apportionment of special benefit, parcels that front the parking lot on more than one side (corner properties), are only assessed for their front footage along the side of their property adjacent to the parking lot.

Solid Waste (Refuse) Collection Services
Establishing separate refuse receptacles for each parcel or business within Presidents’ Plaza, and thereby allowing for separate charges and agreements for this service, is not practical due to limited space and accessibility. Therefore, several common refuse containers have been placed within the parking lot area for use by all the properties and businesses, and patrons of these businesses, within the District. Historically, all developed properties within Presidents’ Plaza have shared proportionately in the costs associated with refuse collection based on the building square footage of the structures on each parcel.

In determining the method of apportionment for refuse collection services, the possibility of factoring in business types as well as building square footage was considered. However, the inclusion of business types in the calculation of an annual assessment poses several problems. First, many of the parcels assessed include multiple business types, which could require a complex calculation to identify potential use of the service. Second, businesses often change from year-to-year or even month to month, making specific business-related assessments difficult to track and time-consuming and expensive to administer. Third, establishing a method of apportionment that is business-specific rather than parcel-specific would likely result in annual changes for each parcel’s assessment even if the cost of the service were unchanged. Finally, the level of service (number of pick-ups and receptacles) has changed very little over the last several years.

Although many of the businesses and business types have changed within the District, the total cost of providing this service has remained fairly constant.
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2026/2027 Presidents’ Plaza Property and Business Improvement District Page 7 In contrast to the total cost, it is not reasonable to assume that all developed parcels utilize or require the same level of refuse service; typically, the larger the building, the greater amount of refuse that is generated.

Therefore, it has been determined that a fair and reasonable estimate of each parcel’s benefit for refuse collection is the building square footage determined for each parcel.

As noted previously, due to limited space and accessibility, it is not practical for each parcel or business within Presidents’ Plaza to have separate containers or agreements with the waste hauler. However, it is recognized the baseline level of service (number of bins, size of the bins and frequency of service) established for the District may not be adequate or appropriately reflect the needs of changing business within the District. Therefore, the following considerations and criteria shall be followed when the level of service provided requires modifications:
 If the level of service is reduced, the incremental cost savings (if any) will be reviewed and applied, as follows:
o Reserve Fund Account: City staff and the owners’ association will evaluate the existing available Reserve Fund to ensure an acceptable amount of money is being retained for normal annual operation of the District. Based on this evaluation, the owners’ association will modify the annual plan (recommendation to the City Council) to apply all or a portion of the cost savings to the Reserve Account. A fully funded Reserve is an amount equal to approximately one half of all annual operating expenses. o Reduced Assessments: After reviewing the Reserve Account, any cost savings not applied to the Reserve Account (Reserve Fund Collection) will be passed on to each parcel within the District by reducing their annual assessment for the next fiscal year, in proportion to their estimated benefit (from the method of apportionment).
 If the level of service is increased, the incremental cost increase (if any) will be reviewed and applied, as follows:
o Increased Service District-wide: When the current District was renewed/formed, an assessment range formula was approved. This formula provided for anticipated cost of living increases, but also allowed some flexibility for increased costs due to increased levels of service. If an increased level of service is required for the entire District, the increase is reflected in the annual budget. This budget increase will typically cause a proportional increase of the annual assessment. If the increased cost results in an assessment rate that exceeds the maximum assessment allowed, then reserve funds will be used to reduce the annual assessment to the maximum assessment allowed. If the reserve fund is not sufficient to cover the cost increase, the City Council may provide a temporary loan to the District or conduct a property owner ballot proceeding for an assessment increase. o Increased Service for One Parcel: When the current District was renewed/formed, a baseline assessment rate and level of service was established for all properties within the District. As businesses within the District change or continue to grow, these businesses may generate a need for an increased level of service, but it is not fair or equitable to spread the cost of this increased service to other properties within the District. Therefore, if a business requires an increased level of service, the respective business owner or owner of the property on which the business is located, must pay the resulting cost increase as a surcharge. Either the City or property owner may initiate the need for an increased service level. The City Council shall make the final determination as to the appropriate mechanism 536
2026/2027 Presidents’ Plaza Property and Business Improvement District Page 8 by which the increased level of service will be provided. The increased level of service may include result in:
 Increasing number of pick-ups on a specific bin(s) used by the property or business.  Increasing size of specific bin(s) used by the property or business if space permits.  Providing separate bin(s) for property or business if space and accessibility permits.  Any combination of the services above.

The costs associated with the increased level of service shall be the obligation of the business and/or property owner which is provided with the additional service. Payment for the increased level of service shall be reviewed by the owner’s association, which will make a recommendation to the City Council for approval.

The additional cost of providing the increased level of service may be added to the annual assessment for the property as a surcharge (in addition to their annual assessment), upon written petition of the property owner and approval by the City Council. The request may require a signed agreement between the property owner and City. However, before any action is taken to add a surcharge to the property tax roll as part of the property’s annual assessment, the property owner/business shall work with City staff and owner’s association to establish the necessary level of additional service and arrange for direct payment for the service to the waste hauler or the City, if possible.

Method of Apportionment Calculations
The apportionment of benefit within the District utilizes a weighting factor known as an Equivalent Benefit Unit (EBU). Each parcel’s EBU represents a percentage of the total EBU applied for the entire District.

Depending on the improvement or activity provided, the EBU assigned to each parcel is based on either the parcel’s development (approximate building square footage) or the parcel’s area of improvement (front footage to the parking lots). The cost of refuse collection services is apportioned based on each parcel’s approximate building square footage. All other improvements and services funded through the District are associated with the parking lots. The total cost of the parking lot improvements and services is apportioned to each parcel based on their front footage to the parking lots.

The sum of each parcel’s proportionate share of refuse collection and parking lot costs represents the parcel’s Total Direct Cost. In addition to a parcel’s Total Direct Cost, each parcel is assessed for administration expenses and a reserve fund collection (Indirect Costs). Indirect Costs for each parcel have been apportioned by a percentage of the parcel’s Direct Costs, not to exceed fifteen percent (15%). Therefore, each parcel’s Total Annual Assessment is the sum of its proportionate share of the Total Direct Cost and Total Indirect Costs. Although each parcel’s proportional benefit and assessment for each improvement is calculated individually, each parcel’s maximum assessment is based on the parcel’s combined assessment for all costs and services. The rate applied to any one improvement or service may exceed the maximum rate originally established, provided the parcel’s combined assessment does not exceed the combined maximum assessment established for the property (excluding changes in land use or development).

The County requires that all annual assessments levied and submitted for collection on tax bills be rounded to the nearest even penny, thus allowing the total assessment to be split into two installments. To comply with the County’s requirements, the calculation of each assessment component is rounded to the nearest even penny and subsequently added together for the parcel’s Total Annual Assessment. A description of the general method used to arrive at each parcel’s proposed assessment is found below. 537
2026/2027 Presidents’ Plaza Property and Business Improvement District Page 9 Apportionment of Direct Costs
Refuse Collection Assessment
The Total Refuse Cost estimated for refuse collection services is based on the City’s contract with a waste hauler for service to Presidents’ Plaza. This Total Refuse Cost divided by the estimated Total Building Square Footage establishes a Rate per building square foot. The Rate is multiplied by each parcel’s estimated building square footage to calculate the parcel’s proportionate share of the refuse service cost.

Total Refuse Cost / Total Building Square Footage = Rate per Building Square Foot Rate x Parcel Building Square Footage = Refuse Assessment Note: For purposes of calculating the refuse assessment, the building square footage for each parcel has been rounded to the nearest hundred square feet. Refer to Appendix “B” for building square footage applied.

The refuse assessment rates based on fiscal year and building size is found below as Table 1.

Table 1: Building Size Proposed Rates
Proposed Building Maximum Rates
(per Square Foot)
FY 2022/2023 $0.7179
FY 2023/2024 $0.7394
FY 2024/2025 $0.7616
FY 2025/2026 $0.7845
FY 2026/2027 $0.8080
There are currently forty-two (42) developed commercial properties within the District that are assessed for refuse collection services based on approximate building square footage. Individual parcel refuse assessments can be found on the Assessment Roll (Appendix C).

Parking Lot Assessment
The total Lot Cost estimated for parking lot improvements and services is based on the estimated annual costs to maintain the landscaping, utilities (lighting and water), and parking lot (short and long-term maintenance and sweeping services) within Presidents’ Plaza. This Total Lot Cost divided by the applied parking lot Total Front Footage, establishes a Rate per front foot. The Rate is multiplied by each parcel’s applied front footage to calculate the parcel’s proportionate share of the parking lot maintenance costs.

Total Lot Cost / Total Front Footage = Rate per Front Foot Rate per Front Foot x Parcel Front Footage = Parking Lot Assessment Note: For purposes of calculating the parking lot assessment, each parcel’s front footage is based on the parcel’s footage rounded to the nearest five feet. Refer to Appendix “B” for front footage applied. 538
2026/2027 Presidents’ Plaza Property and Business Improvement District Page 10 The parking lot assessment rates based on fiscal year and linear feet is found below as Table 2.

Table 2: Parking Lot Proposed Rates
Proposed Parking Maximum Rates
(per Linear Foot)
FY 2022/2023 $37.3494
FY 2023/2024 $38.4699
FY 2024/2025 $39.6240
FY 2025/2026 $40.8127
FY 2026/2027 $42.0371
All parcels within the District receive direct and special benefits from the parking lot improvements and services. Each parcel is assessed proportionately based on their front footage adjacent to the parking lot.

Apportionment of Indirect Costs
To ensure the improvements, activities, and services provided and funded through the District are continued, each parcel will be assessed for its proportional share of administrative and reserve costs (Indirect Costs).

Indirect Costs include all expenses related to the administration of the District as well as the collection of money toward a Reserve Fund. The annual assessment for Indirect Costs has been established at fifteen percent (15%) of the Total Direct Costs assessed to each parcel.

The sum of each parcel’s proportionate share of refuse collection and parking lot costs represents the parcel’s Direct Cost. This Direct Cost multiplied by fifteen percent (15%) represents each parcel’s proportionate share of the Indirect Costs.

Parcel’s Total Direct Cost x 15% = Indirect Assessment
The Indirect Cost for each fiscal year is found below as Table 3.

Table 3: Proposed Indirect Costs
Indirect Cost (Total Dollars)
FY 2022/2023 $52,035.00
FY 2023/2024 $53,596.05
FY 2024/2025 $55,203.93
FY 2025/2026 $56,860.05
FY 2026/2027 $58,565.85
Total Annual Assessment
Each parcel’s Total Annual Assessment is the sum of their proportionate share of the Direct Costs and Indirect Costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District and the maximum amount projected. The maximum projected amounts were determined by applying an annual inflationary factor of three percent (3%) on the remaining four years of the five-year period, with the first year based on actuals and forecasting. 539
2026/2027 Presidents’ Plaza Property and Business Improvement District Page 11 Annual Budget Adjustments
For the subsequent years of the five-year term of the PBID renewal, annual assessments may be adjusted by the owners’ association up to three percent (3%) per year. Actual annual adjustments may range from zero (0) to three percent (3%). Adjustments may differ from year to year depending on the service needs identified by the owners’ association. In any event, assessments will not exceed the levels illustrated by the District Budget (Table 4).

Any annual budget surplus or deficit will be accrued into the following year’s PBID budget. Assessments will be set accordingly, within the constraints of the annual adjustment, to adjust for surpluses or deficits that are carried forward.
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2026/2027 Presidents’ Plaza Property and Business Improvement District Page 12 IV. Description of Budget Items
Direct Benefit Costs
Landscape Maintenance: Includes all regularly scheduled labor, material (e.g., pipe, fertilizer, insecticides), and equipment required to properly maintain and ensure the satisfactory condition of all landscaping, irrigation and drainage systems, and appurtenant facilities. All landscaping improvements within the District are contracted for maintenance and service on a regular basis. The frequency and specific maintenance operations required within the District is determined by City staff but is generally scheduled weekly. The costs include annual tree and palm pruning, and tree replacement as well.

Landscape Repairs: Includes repairs costs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms. Planned upgrades (irrigation system improvements) may also be included as well.

Water: Includes utility costs to furnish water required for landscape irrigation.

Lighting: Includes utility costs for the operation of lighting facilities in the parking lots and landscaped areas, excluding lighting maintenance.

Sweeping Services: Includes bi-weekly cleaning of the parking lots and gutters using a contracted service.

Solid Waste Removal Services: Includes the furnishing of bins and bi-weekly collection of solid waste. The City contracts with a waste hauler for this service. Only developed properties (with a structure) receive special benefit from this service and are assessed for this service accordingly.

Miscellaneous Direct: Includes repairs costs for waterlines, benches, tables, trash enclosures, graffiti removal, lighting, and other unanticipated costs on an as-needed basis.

Indirect Benefit Costs
District Administration: Includes costs for the City to provide the coordination of District services, operations and maintenance of the District, response to public concerns and education, and procedures associated with the levy and collection of assessments. This cost also includes contracting with professionals to provide additional administrative, legal, or engineering services specific to the District.

County Administration Fee: Includes costs for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number.

County Administration Fee: This is the actual cost to the District for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number, which is $96.14 for FY 2025/2026 (at the time of this report FY 2026/2027 rates were not available).

County Per Parcel Fee: This is the cost for the County to collect assessments on the property tax bills. This charge is on a per assessment basis at $0.36 per assessment for FY 2025/2026 (at the time of this report FY 2026/2027 rates were not available) and is in addition to the County Administration Fee.
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2026/2027 Presidents’ Plaza Property and Business Improvement District Page 13 Miscellaneous Indirect: Includes costs related to District administration, including required formation, documentation, recordation, and legal fees.

Reserve Fund Collection: Includes collection of funds to operate the District from July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. The Reserve Fund eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. The Reserve Fund may also be used to offset any unforeseen costs such as repairs, legal fees, revenue deficits, or increased costs due to inflation or contractual agreements that are greater than originally planned.

Capital Improvement Project Reserve: Includes collection for unscheduled, unforeseen expense that may occur throughout the life of the District’s five-year maintenance period, including short and long-term parking lot maintenance such as all regularly scheduled labor, material, and equipment for patching of asphalt, slurry sealing, and parking lot striping required to properly maintain and ensure the satisfactory condition of the parking lots and appurtenant facilities. The frequency and specific maintenance operations required within the District is determined by City staff, but slurry sealing, and parking lot striping are generally scheduled annually, while patching of asphalt is performed on an asneeded basis. Parking lot maintenance for slurry sealing and parking lot striping within the District is contracted for service on a regular basis, while patching of asphalt may be performed by City staff or contracted for service as needed. The City shall be responsible for activities and costs associated with the Capital Improvement Project Reserve.

Levy Breakdown
Total District and Indirect Costs: Represents the sum total of all budgeted Direct and Indirect costs.

Anticipated Deficit/Surplus: Represents anticipated costs of the District that exceeds the amount to be collected. This item also reflects beginning balance deficits. When the actual cost and expenditures for the District are greater than the amount budgeted and collected in the prior fiscal year, the District has a Beginning Balance Deficit. This deficit may be the result of unforeseen and extraordinary costs incurred, or assessments collected being less than anticipated. When a deficit occurs, the deficit amount may be added to the amount to be collected through the levy for the current fiscal year or recovered through use of the Reserve Fund.

When the actual costs and expenditures for the District are less than the amount budgeted and collected in the prior fiscal year, the District has a Beginning Balance Surplus. When a surplus occurs, the amount may be used to reduce assessments for the following year or may be added to the Reserve Fund.

Balance to Levy: Represents the total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of Total Direct Costs, Indirect Costs, Reserve Fund Credit, Revenue Deficits, Other Revenue Sources, Revenue Surpluses, and Contribution Replenishments.
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2026/2027 Presidents’ Plaza Property and Business Improvement District Page 14 District Statistics
Total Parcels: Represents the total number of parcels within the District.

Total Parcels To Levy: Represents the total number of parcels within the District that will be assessed. Non-assessed lots or parcels include easements, common areas, and parcels within the boundaries of the District that currently do not benefit from the improvements.

Total Building Square Footage: Represents the sum total of the building square footage applied to parcels within the District.

Total Front Footage (Parking Lot): Represents the sum total of the parking lot front footage applied to parcels within the District.

Levy Rate per Building Square Foot: Represents the Rate being applied to each parcel’s individual building square footage (calculation of each parcel’s proportionate share of refuse collection services).

The Levy Rate per Square Foot is the result of dividing the estimated total refuse cost for that year by the sum of the District’s Total Building Square Footage. The rate is calculated to four decimal places.

Levy Rate per Front Foot: Represents the Rate being applied to each parcel’s individual parking lot front footage (calculation of the parcel’s proportionate share of parking lot maintenance costs). The Levy Rate per Front Foot is the result of dividing the estimated total parking lot costs for that year by the sum of the District’s Total Parking Lot Front Footage. The rate is calculated to four decimal places.

Indirect Cost Percentage: Represents the percentage applied to each parcel’s Direct Costs to determine the parcel’s proportionate share of the amount to be assessed for administrative expenses and Reserve Fund Collection. A maximum rate of fifteen percent (15%) has been established. An even Reserve Fund Credit has been applied for each year (five-years).

District Budget
The District Budget (Table 4) lists the estimated costs of providing the various improvements and services. The costs and the resulting rate for each fiscal year is based on the estimated costs to provide the improvements and services that year. The projected annual costs anticipated over the five-year duration of the District assessments have been calculated based on actuals, forecasting and an annual inflationary factor of three percent (3%) from the first fiscal year. However, this inflation factor does not mean the assessments will increase annually by three percent (3%). The owners’ association appointed by the City Council, will annually review the District costs, and make recommendations for any changes or adjustments to the budget. Changes to the budget, could result in changes to the annual assessment, but the resulting total assessment may not exceed the maximum rates established in the original Engineer’s Report without first obtaining property owner approval through assessment ballots.

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2026/2027 Presidents’ Plaza Property and Business Improvement District Page 15 Table 4: District Budgets
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Direct Benefit Costs
Landscape Maintenance $ 55,620.00 54,000.00 $ 57,288.60 $ 59,007.26 $ 60,777.48 $ Landscape Repairs 6,180.00 6,000.00 6,365.40 6,556.36 6,753.05 Miscellaneous Direct (waterlines, benches, tables, trash enclosures, graffiti removal, etc.) 20,600.00 20,000.00 21,218.00 21,854.54 22,510.18 Water 25,750.00 25,000.00 26,522.50 27,318.18 28,137.72 Lighting 29,046.00 28,200.00 29,917.38 30,814.90 31,739.35 Sweeping Services 6,489.00 6,300.00 6,683.67 6,884.18 7,090.71 Service Subtotal (Based on parking lot footage) $ 143,685.00 139,500.00 $ 147,995.55 $ 152,435.42 $ 157,008.48 $ Solid Waste Removal Services $ 213,622.00 207,400.00 $ 220,030.66 $ 226,631.58 $ 233,430.53 $ Total Direct Benefit 346,900.00 $ 357,307.00 $ 368,026.21 $ 379,067.00 $ 390,439.01 $ Indirect Costs
District Administration $ 16,590.99 16,107.76 $ 17,088.72 $ 17,601.38 $ 18,129.43 $ County Administration Fee 216.73 210.42 223.24 229.93 236.83 County Per Parcel Fee 105.42 102.35 108.58 111.84 115.20 Miscellaneous Indirect 18,269.47 18,817.55 19,382.08 19,963.54 20,562.45 Administrative Subtotal 34,690.00 $ 35,730.70 $ 36,802.62 $ 37,906.70 $ 39,043.90 $ Reserve Fund Collection (5%) 17,865.35 17,345.00 18,401.31 18,953.35 19,521.95 Total Indirect Cost 52,035.00 $ 53,596.05 $ 55,203.93 $ 56,860.05 $ 58,565.85 $ Levy Breakdown
Total Direct Costs and Indirect Costs 398,935.00 $ 410,903.05 $ 423,230.14 $ 435,927.05 $ 449,004.86 $ Anticipated Deficit or Surplus - - - - - Balance to Levy $ 410,903.05 398,935.00 $ 423,230.14 $ 435,927.05 $ 449,004.86 $ Estimated City Funded Projected Capital Improvement
Project Reserve (Parking Lot Maintenance, etc.) 76,323.00 74,100.00 78,612.69 80,971.07 83,400.20 District Statistics Total Parcels 46 46 46 46 46 Total Parcels To Levy 42 42 42 42 42 Total Building Square Footage 288,900.00 288,900.00 288,900.00 288,900.00 288,900.00 Total Front Footage (Parking Lot) 3,735.00 3,735.00 3,735.00 3,735.00 3,735.00 Levy Rate per Building Square Foot 0.7179 $ 0.7394 $ 0.7616 $ 0.7845 $ 0.8080 $ % increase
Levy Rate per Front Foot 37.3494 $ 38.4699 $ 39.6240 $ 40.8127 $ 42.0371 $ % increase
Indirect Cost Percentage(1) 15.00000% 15.00000% 15.00000% 15.00000% 15.00000% Capital Improvement Project Reserve Fund Balance
Previous Balance $ 74,100.00 - $ 150,423.00 $ 229,035.69 $ 310,006.76 $ Capital Improvement Project Reserve 74,100.00 76,323.00 78,612.69 80,971.07 83,400.20 Estimated Ending Balance 74,100.00 $ 150,423.00 $ 229,035.69 $ 310,006.76 $ 393,406.96 $ Reserve Fund Balance
Previous Balance $ 203,876.00 186,531.00 $ 221,741.35 $ 240,142.66 $ 259,096.01 $ Reserve Collection 17,865.35 17,345.00 18,401.31 18,953.35 19,521.95 Estimated Reserve Ending Balance 203,876.00 $ 221,741.35 $ 240,142.66 $ 259,096.01 $ 278,617.96 $ Maximum Proposed Assessment for Fiscal Years 2022/23 through 2026/27 (Five Years) Budget Item
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2026/2027 Presidents’ Plaza Property and Business Improvement District Page A-1 Appendix A — Assessment Diagram
The Assessment Diagram for the District is shown in reduced format and inclusive of all parcels identified on the County of Riverside Assessor’s Parcel Maps as Book 627, Pages 212, 221, and 222. The Assessment Diagram will be kept on file with the City Clerk of the City of Palm Desert. 545

2026/2027 Presidents’ Plaza Property and Business Improvement District Page A-2 546
2026/2027 Presidents’ Plaza Property and Business Improvement District Page B-1 Appendix B – Actual Parcel Information
The actual parcel information is shown in Table 5, includes building square footage and front footage, which are used in calculating each parcel’s proportionate share of all District Costs. 547
2026/2027 Presidents’ Plaza Property and Business Improvement District Page B-2 Table 5: Actual Parcel Information
Assessment
Number
Assessor
Parcel Number
Actual Parking Lot
Front Footage
Applied Parking Lot
Front Footage
Actual Building
Square Feet
Applied Building
Square Feet
1 627-212-002 73669 HIGHWAY 111 50.00 50.00 3,885 3,900 2 627-212-003 73677 HIGHWAY 111 200.00 200.00 8,650 8,700 3 627-212-004 73731 HIGHWAY 111 100.00 100.00 8,525 8,500 4 627-212-005 73640 EL PASEO 171.55 170.00 12,132 12,100 5 627-212-006 73660 EL PASEO 50.00 50.00 5,820 5,800
6 627-212-009 73690 EL PASEO 50.00 50.00 8,150 8,200
7 627-212-010 73700 EL PASEO 50.00 50.00 3,210 3,200
8 627-212-011 73710 EL PASEO 50.00 50.00 5,030 5,000
9 627-212-012 73722 EL PASEO 50.00 50.00 2,400 2,400
10 627-212-014 73730 EL PASEO 50.00 50.00 5,000 5,000
11 627-212-015 73625 HIGHWAY 111 221.55 220.00 20,987 21,000 12 627-212-016 NO SITUS AVAILABLE 0.00 0.00 0 0
13 627-212-017 73670 EL PASEO 100.00 100.00 10,238 10,200 14 627-221-001 73741 HIGHWAY 111 50.00 50.00 4,750 4,800 15 627-221-002 73759 HIGHWAY 111 50.00 50.00 4,750 4,800 16 627-221-004 73760 EL PASEO 213.02 215.00 18,182 18,200 17 627-221-008 73740 EL PASEO 50.00 50.00 5,300 5,300
18 627-221-009 73750 EL PASEO 50.00 50.00 4,563 4,600
19 627-221-010 73801 HIGHWAY 111 225.16 225.00 1,568 1,600 20 627-221-011 NO SITUS AVAILABLE 0.00 0.00 0 0
21 627-222-002 73845 HIGHWAY 111 50.00 50.00 4,435 4,400 22 627-222-003 73851 HIGHWAY 111 50.00 50.00 3,250 3,300 23 627-222-004 73861 HIGHWAY 111 50.00 50.00 3,250 3,300 24 627-222-005 73871 HIGHWAY 111 50.00 50.00 3,000 3,000 25 627-222-008 73891 HIGHWAY 111 100.00 100.00 6,712 6,700 26 627-222-014 73965 HIGHWAY 111 50.00 50.00 4,692 4,700 27 627-222-015 73981 HIGHWAY 111 50.00 50.00 3,900 3,900 28 627-222-021 73880 EL PASEO 50.00 50.00 3,762 3,800
29 627-222-024 73900 EL PASEO 50.00 50.00 5,050 5,100
30 627-222-025 73910 EL PASEO 50.00 50.00 5,000 5,000
31 627-222-026 73920 EL PASEO 50.00 50.00 5,000 5,000
32 627-222-027 73930 EL PASEO 50.00 50.00 5,150 5,200
33 627-222-028 73940 EL PASEO 50.00 50.00 4,950 5,000
34 627-222-029 73950 EL PASEO 50.00 50.00 4,800 4,800
35 627-222-030 73956 EL PASEO 50.00 50.00 4,950 5,000
36 627-222-034 73925 HIGHWAY 111 100.00 100.00 6,276 6,300 37 627-222-038 73890 EL PASEO 100.00 100.00 9,900 9,900 38 627-222-041 73885 HIGHWAY 111 75.00 75.00 5,925 5,900 39 627-222-042 NO SITUS AVAILABLE 0.00 0.00 0 0
40 627-222-043 45211 PORTOLA AVE 0.00 0.00 0 0
41 627-222-044 73990 EL PASEO 140.63 140.00 13,338 13,300 42 627-222-048 73941 HIGHWAY 111 100.00 100.00 7,825 7,800 43 627-222-052 73820 EL PASEO 251.69 250.00 11,694 11,700 44 627-222-053 73833 HIGHWAY 111 151.69 150.00 8,238 8,200 45 627-222-055 73970 EL PASEO 100.00 100.00 15,017 15,000 46 627-222-058 73993 HIGHWAY 111 140.00 140.00 9,312 9,300 Total 3740.29 3735.00 288,566 288,900
Source: Riverside County Secured Roll; Willdan Financial Services Situs Address
Assessor Parcel Numbers 627-212-016, 627-221-011, 627-222-021, and 627-222-043 are part of the District's parking lot and parcel 627-222-042 is an easement/w alkw ay. These parcels are not assessed.
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2026/2027 Presidents’ Plaza Property and Business Improvement District Page C-1 Appendix C —Assessment Roll
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the County Assessor’s Map for the year in which this Plan is prepared.

The Assessment Roll, which includes a listing of assessor parcels assessed within this District, along with their assessment amounts, is shown in Table 6.

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2026/2027 Presidents’ Plaza Property and Business Improvement District Page C-2 Table 6: Assessment Roll
Note: Total Assessment slightly different than total levy in budget due to rounding and County even penny rule.

Assessor Parcel
Number
Refuse Collection
Assessment
FY 2026/2027
Parking Lot
Assessment
FY 2026/2027
Indirect Cost
Assessment
FY 2026/2027
Total Assessment
FY 2026/2027
627-212-002 73669 HIGHWAY 111 $3,151.19 $2,101.85 $787.95 $6,040.98 627-212-003 73677 HIGHWAY 111 7,029.57 8,407.41 2,315.54 17,752.52 627-212-004 73731 HIGHWAY 111 6,867.98 4,203.70 1,660.75 12,732.42 627-212-005 73640 EL PASEO 9,776.77 7,146.30 2,538.46 19,461.52 627-212-006 73660 EL PASEO 4,686.38 2,101.85 1,018.23 7,806.46 627-212-009 73690 EL PASEO 6,625.58 2,101.85 1,309.11 10,036.54 627-212-010 73700 EL PASEO 2,585.59 2,101.85 703.11 5,390.54 627-212-011 73710 EL PASEO 4,039.98 2,101.85 921.27 7,063.10 627-212-012 73722 EL PASEO 1,939.19 2,101.85 606.15 4,647.18 627-212-014 73730 EL PASEO 4,039.98 2,101.85 921.27 7,063.10 627-212-015 73625 HIGHWAY 111 16,967.95 9,248.15 3,932.41 30,148.50 627-212-016 NO SITUS AVAILABLE 0.00 0.00 0.00 0.00
627-212-017 73670 EL PASEO 8,241.57 4,203.70 1,866.79 14,312.06 627-221-001 73741 HIGHWAY 111 3,878.38 2,101.85 897.03 6,877.26 627-221-002 73759 HIGHWAY 111 3,878.38 2,101.85 897.03 6,877.26 627-221-004 73760 EL PASEO 14,705.55 9,037.97 3,561.52 27,305.04 627-221-008 73740 EL PASEO 4,282.38 2,101.85 957.63 7,341.86 627-221-009 73750 EL PASEO 3,716.78 2,101.85 872.79 6,691.42 627-221-010 73801 HIGHWAY 111 1,292.79 9,458.34 1,612.66 12,363.78 627-221-011 NO SITUS AVAILABLE 0.00 0.00 0.00 0.00
627-222-002 73845 HIGHWAY 111 3,555.18 2,101.85 848.55 6,505.58 627-222-003 73851 HIGHWAY 111 2,666.39 2,101.85 715.23 5,483.46 627-222-004 73861 HIGHWAY 111 2,666.39 2,101.85 715.23 5,483.46 627-222-005 73871 HIGHWAY 111 2,423.99 2,101.85 678.87 5,204.70 627-222-008 73891 HIGHWAY 111 5,413.58 4,203.70 1,442.59 11,059.86 627-222-014 73965 HIGHWAY 111 3,797.58 2,101.85 884.91 6,784.34 627-222-015 73981 HIGHWAY 111 3,151.19 2,101.85 787.95 6,040.98 627-222-021 73880 EL PASEO 3,070.39 2,101.85 775.83 5,948.06 627-222-024 73900 EL PASEO 4,120.78 2,101.85 933.39 7,156.02 627-222-025 73910 EL PASEO 4,039.98 2,101.85 921.27 7,063.10 627-222-026 73920 EL PASEO 4,039.98 2,101.85 921.27 7,063.10 627-222-027 73930 EL PASEO 4,201.58 2,101.85 945.51 7,248.94 627-222-028 73940 EL PASEO 4,039.98 2,101.85 921.27 7,063.10 627-222-029 73950 EL PASEO 3,878.38 2,101.85 897.03 6,877.26 627-222-030 73956 EL PASEO 4,039.98 2,101.85 921.27 7,063.10 627-222-034 73925 HIGHWAY 111 5,090.38 4,203.70 1,394.11 10,688.18 627-222-038 73890 EL PASEO 7,999.17 4,203.70 1,830.43 14,033.30 627-222-041 73885 HIGHWAY 111 4,767.18 3,152.78 1,187.99 9,107.94 627-222-042 NO SITUS AVAILABLE 0.00 0.00 0.00 0.00
627-222-043 45211 PORTOLA AVE 0.00 0.00 0.00 0.00
627-222-044 73990 EL PASEO 10,746.36 5,885.19 2,494.73 19,126.28 627-222-048 73941 HIGHWAY 111 6,302.38 4,203.70 1,575.91 12,081.98 627-222-052 73820 EL PASEO 9,453.57 10,509.26 2,994.42 22,957.24 627-222-053 73833 HIGHWAY 111 6,625.58 6,305.56 1,939.67 14,870.80 627-222-055 73970 EL PASEO 12,119.96 4,203.70 2,448.54 18,772.20 627-222-058 73993 HIGHWAY 111 7,514.37 5,885.19 2,009.93 15,409.48 Total $233,430.29 $157,008.30 $58,565.60 $449,004.00
Situs Address
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City of Palm Desert Staff Report
Meeting Date: June 25, 2026
Prepared By: Shawn Muir, Community Services Manager
Best, Best & Krieger, LLP, City Attorney
Department: Public Works
Subject: Ordinances Amending Title 8 and Title 11 of the Palm Desert Municipal Code to Update Skate Park Regulations and Regulations Governing the Distribution and Posting of Handbills in City Parks
Recommendation

1. Find that the adoption of both proposed ordinances is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15378(b)(5) and 15061(b)(3), as set forth in each ordinance and in this report.

2. Introduce an ordinance entitled “An Ordinance of the City Council of the City of Palm Desert, California, Amending Chapter 8.85 of the Palm Desert Municipal Code to Modernize Skate Park Regulations and Making a Finding of Exemption Under CEQA.”

3. Introduce an ordinance entitled “An Ordinance of the City Council of the City of Palm Desert, California, Amending Sections 11.01.010, 11.01.080, and 11.01.100 of the Palm Desert Municipal Code to Update Regulations Governing the Distribution and Posting of Handbills in City Parks, and Making a Finding of Exemption Under CEQA.” Executive Summary
This report presents two ordinances updating City regulations governing the use of City parks.

Although the two ordinances address different topics, they both modernize existing park regulations to reflect changes in state law, clarify standards for the public and for staff, and improve the City’s ability to maintain safe, orderly, and accessible parks.

The first ordinance amending Chapter 8.85 comprehensively rewrites the City’s skate park regulations for the first time since 1999. The update brings the City’s code into full compliance with Health and Safety Code Section 115800, expressly covers “other wheeled recreational devices” (including scooters, inline skates, and nonmotorized bicycles), raises and clarifies the fine for failure to wear required safety equipment, and positions the City to operate skate park facilities without daily paid supervision. This ordinance is consistent with the staff recommendation to eliminate the existing daily supervision requirement and $5 access fee.

The second ordinance amending Sections 11.01.010, 11.01.080, and 11.01.100 modernizes the City’s regulations governing handbill distribution and the posting of materials on park structures. The existing regulations require advance permits for both activities. The updated provisions replace the permit requirements with clear, content-neutral conduct standards and 551

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establish a designated bulletin board system to preserve both free expression and the City’s legitimate interests in clean and orderly parks.

Background
The City of Palm Desert maintains an extensive system of parks, recreation facilities, and civic spaces for the benefit of residents and visitors. Title 8 and Title 11 of the Municipal Code contain the primary regulations governing those facilities. Chapter 8.85 (Skate Park Regulations) was last amended in 2000, before the Legislature updated Health and Safety Code Section 115800 to expressly cover additional wheeled recreational devices and before the City’s skate park program matured to the point where daily supervised operation could be reconsidered. Chapter 11.01 (General Provisions for Parks) includes permit requirements for handbill distribution that are in need of updating to address littering concerns. Together, these two ordinances reflect the City’s commitment to maintaining parks that are safe, welcoming, and well-regulated.

Analysis
Chapter 8.85, Skate Park Regulations
Chapter 8.85 of the Municipal Code was adopted in 1999 and last amended in 2000. Its primary purpose has always been to comply with Health and Safety Code Section 115800, which requires operators of skateboard parks to adopt safety equipment requirements as a condition of benefiting from qualified immunity from injury-related claims.

In the years since Chapter 8.85 was last amended, Health and Safety Code Section 115800 has been updated to expand its coverage to “other wheeled recreational devices,” which the statute defines to include nonmotorized bicycles, scooters, inline skates, roller skates, and wheelchairs used for recreational purposes. The current Chapter 8.85 does not reflect these statutory changes. Additionally, the City’s skate park program has changed. Staff has recommended to the City Council that daily supervision and the $5 access fee be eliminated, a change that makes full compliance with the Section 115800(b) conditions for unsupervised operation especially important.

The proposed ordinance rewrites Chapter 8.85 in its entirety to provide clearer, more practical guidance to the public, parks staff, and code enforcement personnel.

Current Skate Park Regulations
Chapter 8.85 requires helmets, elbow pads, and knee pads for skateboarders and in-line skaters; designates those activities as hazardous recreational activities under Government Code Section 831.7 and Health and Safety Code Section 115800, and sets a $50 infraction fine for failure to wear required safety equipment. The chapter defines only two terms (“skate park” and “skating area”), covers no devices beyond skateboards and in-line skates, does not address the statutory conditions for unsupervised operation under Section 115800(b), and has not been updated to reflect subsequent amendments to Section 115800 that expanded its coverage to “other wheeled recreational devices” such as scooters, nonmotorized bicycles, roller skates, and recreational wheelchairs.
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Proposed Changes
Expanded Coverage to Conform to Current State Law
One significant change is the express addition of “other wheeled recreational devices” to the chapter’s coverage. Health and Safety Code Section 115800(d) defines this term to include nonmotorized bicycles, scooters, inline skates, roller skates, and wheelchairs used for recreational purposes. The new chapter adopts this definition verbatim and requires all persons riding any covered device in the skating area to wear a helmet, elbow pads, and knee pads.

This change is not merely technical. Under existing Section 115800(b), the City’s qualified immunity for unsupervised operation depends on having an ordinance that covers all devices within the statutory scope. By failing to expressly include “other wheeled recreational devices,” the current chapter creates uncertainty about whether the City fully satisfies the conditions for that immunity. The new chapter eliminates that uncertainty.

Updated and Expanded Definitions
The new chapter adds clear definitions for the following terms: “City skate park facility” (expanded to cover any current or future City-owned skate park, not only the Civic Center location); “elbow pads”; “helmet” (with reference to applicable ANSI, Snell, and ASTM safety standards); “knee pads”; “other wheeled recreational device” (mirroring Health and Safety Code Section 115800(d)); “skateboard”; “skating area”; and “stunt, trick, or luge riding.” These definitions provide a clear, legally grounded vocabulary for staff, enforcement personnel, and the public.

Conditions for Unsupervised Operation
Health and Safety Code Section 115800(b) authorizes cities to operate skateboard parks without regular supervision, provided the city adopts an ordinance requiring safety equipment and posts signs providing “reasonable notice” of the requirement and the penalty. The new chapter expressly addresses both conditions. Section 8.85.030 sets forth the equipment requirement, and Section 8.85.060 sets forth detailed sign content requirements, including the safety equipment requirement, the hazardous activity warning, the citation penalty amount, a summary of park regulations, and posted hours of operation. This ensures the City can operate the facility without daily supervision if the City Council approves that operational change.

Strengthened Hazardous Recreational Activity Designation The new section 8.85.040 updates and strengthens the hazardous recreational activity designation. It expressly declares that, by virtue of the design features of the skating area (ramps, bowls, rails, half-pipes, and transitions), all riding within the skating area constitutes “stunt, trick, or luge riding” under Health and Safety Code Section 115800(e)(1)(B). This is a legally significant finding that establishes the basis for the qualified immunity provided by Section 115800(e) and Government Code Section 831.7. The new section also includes an explicit participant assumption of risk provision.

Consolidated and Clarified Use Regulations
The new Section 8.85.050 clarifies that:
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Palm Desert City CouncilJune 25, 2026

Palm Desert City Council
June 25, 2026