Agenda packet, regular meeting — Palm Desert City Council, October 8, 2026 (part 2 of 4)

City of Palm Desert Staff Report
Meeting Date: October 8, 2026
Prepared By: Monique Lomeli, Senior Deputy Clerk
Department: City Clerk’s Office
Subject: Ratification of Letters Supporting SunLine Transit Agency FY 2026 Federal Transit Administration Grant Applications
Recommendation
Ratify the issuance of two letters supporting SunLine Transit Agency’s FY 2026 applications to the Federal Transit Administration Low or No Emission Grant Program and Grants for Buses and Bus Facilities Competitive Program.

Analysis
SunLine Transit Agency requested the City of Palm Desert’s support for two FY 2026 Federal Transit Administration grant applications intended to improve transit infrastructure, fleet reliability, and passenger amenities throughout the Coachella Valley.

Under the Low or No Emission Grant Program, SunLine is seeking funding for its Maintenance Facility and Clean Transit Vehicle Project. The project would modernize SunLine’s maintenance infrastructure and replace transit vehicles to improve fleet reliability, reduce service disruptions, and support the continued transition to cleaner transportation. The investment would benefit Palm Desert residents and visitors who rely on SunLine for regional transportation, including fixed-route and paratransit service, while supporting improved air quality and a more sustainable regional transit network.

Under the Grants for Buses and Bus Facilities Competitive Program, SunLine is seeking funding to construct a Bus Stop and Amenities Support Center. The project would provide dedicated space and resources to improve SunLine’s ability to maintain bus stops and passenger amenities throughout its regional service area. Although Palm Desert maintains bus stops within the City, Palm Desert riders rely on SunLine’s broader network to reach employment, healthcare, education, shopping, recreation, and other destinations throughout the Coachella Valley. Safe, accessible, and well-maintained facilities across the regional network therefore provide a benefit to the Palm Desert community.

In accordance with Resolution No. 2025-020, Mayor Trubee and Mayor Pro Tem Pradetto reviewed and approved the issuance of the letters in advance of formal ratification by the City Council.

Environmental Review
The proposed action consists of ratifying the issuance of letters expressing the City’s support for SunLine Transit Agency’s federal grant applications and is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15060(c)(2) and (3) 145

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because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a project as defined in CEQA Guidelines section 15378. Accordingly, no CEQA review is required.

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

Financial Impact
There is no direct fiscal impact to the General Fund associated with this action.

Attachments

1. Letter of Support – FY 2026 Low or No Emission Grant Program

2. Letter of Support – FY 2026 Grants for Buses and Bus Facilities Competitive Program 146

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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).

CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, California 92260
Tel: 760-346-0611
[email protected]
September 4, 2026

VIA EMAIL
Federal Transit Administration
United States Department of Transportation
1200 New Jersey Avenue, SE
Washington, DC 20590
RE: Support for Sunline Transit Agency’s FY 2026 Low or No Emission Grant Program Application, Sunline Maintenance Facility and Clean Transit Vehicle Project Dear Federal Transit Administration Review Committee:

On behalf of the City of Palm Desert, I am pleased to support SunLine Transit Agency's application to the Federal Transit Administration's FY 2026 Low or No Emission Grant Program for the SunLine Maintenance Facility and Clean Transit Vehicle Project.

SunLine provides an essential regional transportation connection for Palm Desert residents, employees, students, seniors, people with disabilities, and visitors. Its services connect our community to employment, healthcare, education, shopping, and other destinations throughout the Coachella Valley, making reliable transit particularly important in our geographically dispersed region.

This project would strengthen SunLine's ability to maintain a safe and dependable fleet while supporting the region's continued transition toward cleaner transportation. Modern maintenance infrastructure and replacement vehicles will help reduce service disruptions, protect the public investment in transit assets, and support reliable fixed-route and paratransit service. For Palm Desert, these improvements mean greater mobility and accessibility for our residents and visitors while contributing to improved air quality and a more sustainable regional transportation network.
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Sunline Transit Low and Zero Emissions Grant Application (Support) September 4, 2026

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The City of Palm Desert values SunLine's role in connecting our community to the greater Coachella Valley and supports investments that improve the reliability and sustainability of regional public transportation. We respectfully urge the Federal Transit Administration to give SunLine Transit Agency's application full and favorable consideration.

Sincerely,
Evan Trubee
Mayor
150

CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, California 92260
Tel: 760-346-0611
[email protected]
September 4, 2026

VIA EMAIL
Federal Transit Administration
United States Department of Transportation
1200 New Jersey Avenue, SE
Washington, DC 20590
RE: Support for Sunline Transit Agency’s FY 2026 Grants for Buses and Bus Facilities Competitive Program Application, Bus Stop and Amenities Support Center Project Dear Federal Transit Administration Review Committee:

On behalf of the City of Palm Desert, I am pleased to support SunLine Transit Agency's application for funding through the Federal Transit Administration's FY 2026 Grants for Buses and Bus Facilities Competitive Program for the proposed Bus Stop and Amenities Support Center Project.

SunLine provides an important regional transportation connection for Palm Desert residents, employees, students, seniors, and visitors traveling throughout the Coachella Valley. The proposed project would strengthen SunLine's ability to maintain safe, accessible, and reliable bus stops and passenger amenities across its regional network.

For Palm Desert riders, well-maintained facilities at destinations throughout the Coachella Valley support access to employment, healthcare, education, shopping, recreation, and other essential services.

Investment in quality transit infrastructure throughout the region helps make public transportation a practical and dependable mobility option for our community. The City of Palm Desert values SunLine's role in connecting our residents and visitors to the greater Coachella Valley and respectfully urges the Federal Transit Administration to give SunLine Transit Agency's application full and favorable consideration.

Sincerely,
Evan Trubee
Mayor
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City of Palm Desert Staff Report
Meeting Date: October 8, 2026
Prepared By: Monique Lomeli, Senior Deputy Clerk
Department: City Clerk’s Office
Subject: Ratification of Letters Supporting California Public Utilities Commission Rulemakings R.25-07-014 and R.26-02-017
Recommendation
Ratify the issuance of two letters supporting California Public Utilities Commission Rulemakings R.25-07-014, Communications Emergency Preparedness and Network Resiliency, and R.26-02-017, Service Quality Rules for Wireless Carriers.

Analysis
On September 22, 2026, the City of Palm Desert submitted two letters to the California Public Utilities Commission (CPUC) supporting current rulemaking proceedings related to wireless service reliability and emergency communications resiliency.

Rulemaking R.26-02-017 considers service quality standards for wireless voice service, including requirements related to network reliability, restoration of service, outage reporting, compliance, and enforcement. The City’s letter notes that wireless service is essential infrastructure for residents, businesses, visitors, and local governments and is increasingly relied upon for everyday communications, emergency services, and critical information during service disruptions. The letter supports clear and measurable standards that provide consumers with meaningful expectations regarding service reliability while recognizing the operational characteristics of wireless networks.

Rulemaking R.25-07-014 considers communications emergency preparedness and network resiliency requirements. The City’s letter supports strong and enforceable requirements addressing backup power, continued access to 911 and 211, timely restoration, transparent outage reporting, effective compliance and enforcement, and coordination with local emergency response agencies. The letter also supports consideration of resiliency requirements beyond Tier 2 and Tier 3 High Fire Threat Districts, recognizing that Palm Desert and the broader Coachella Valley face extreme heat, earthquakes, flooding, high winds, power outages, wildfires, and other hazards that can disrupt critical communications infrastructure.

In accordance with Resolution No. 2025-020, Mayor Trubee and Mayor Pro Tem Pradetto reviewed and approved the issuance of the letters in advance of formal ratification by the City Council.

Legal Review
This report has been reviewed by the City Attorney’s Office. 153

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Financial Impact
There is no fiscal impact to the General Fund associated with this action.

Attachments

1. Letter of Support – Rulemaking R.25-07-014, Communications Emergency Preparedness and Network Resiliency

2. Letter of Support – Rulemaking R.26-02-017, Service Quality Rules for Wireless Carriers 154

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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).

CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, California 92260
Tel: 760-346-0611
[email protected]
September 17, 2026

VIA ELECTRONIC PORTAL
President John Reynolds and Commissioners
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
RE: Rulemaking 25-07-014 – Communications Emergency Preparedness and Network Resiliency
Dear President Reynolds and Commissioners:

On behalf of the City of Palm Desert, I write in support of the California Public Utilities Commission’s efforts in Rulemaking 25-07-014 to strengthen communications emergency preparedness and network resiliency requirements.

Reliable communications are essential during emergencies. Residents, businesses, visitors, first responders, and local governments depend on communications networks to access 911 and 211, receive emergency alerts, and obtain critical information during disasters and prolonged power outages.

For Palm Desert and the broader Coachella Valley, emergency preparedness requires an allhazards approach. Our region faces extreme heat, earthquakes, flooding, high winds, power outages, wildfires, and other events that can disrupt critical infrastructure.

The City supports strong and enforceable resiliency requirements, including adequate backup power, continued access to 911 and 211, timely restoration, transparent reporting, effective compliance and enforcement, and coordination with local emergency response agencies.

The City also supports consideration of resiliency requirements beyond Tier 2 and Tier 3 High Fire Threat Districts. Communications networks can be disrupted by many hazards unrelated to wildfire, and communities facing significant disaster or outage risks should receive appropriate protections regardless of fire-threat designation.

The City of Palm Desert appreciates the Commission’s attention to this important issue and supports practical, enforceable standards that help ensure Californians remain connected when communications are needed most.

Sincerely,
Evan Trubee
Mayor
157
158

CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, California 92260
Tel: 760-346-0611
[email protected]
September 17, 2026

VIA ELECTRONIC PORTAL
President John Reynolds and Commissioners
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
RE: Rulemaking 26-02-017 – Service Quality Rules for Wireless Carriers Dear President Reynolds and Commissioners:

On behalf of the City of Palm Desert, I write in support of the California Public Utilities Commission’s efforts in Rulemaking 26-02-017 to establish appropriate service quality standards for wireless voice service.

Wireless service has become essential infrastructure for residents, businesses, visitors, and local governments. Consumers increasingly depend on wireless networks for everyday communications, emergency services, and critical information during service disruptions.

The Commission’s record demonstrates the need for action. Wireless carriers reported 3,315 community isolation outages in 2021, 3,319 in 2022, and 5,865 in 2023. The Commission has also documented an increase in prolonged wireless outages, including outages lasting more than 96 hours.

These issues are particularly important to Palm Desert and the broader Coachella Valley, where reliable wireless communications are critical to public safety, economic activity, and effective communication with the public.

The City supports clear and measurable wireless service quality standards, including appropriate requirements for network reliability, timely restoration of service, outage reporting, and effective compliance and enforcement. Such standards should recognize the operational characteristics of wireless networks while providing consumers with meaningful expectations regarding service reliability.

The City of Palm Desert respectfully encourages the Commission to adopt standards that promote reliable wireless service and meaningful accountability throughout California.

Sincerely,
Evan Trubee
Mayor, City of Palm Desert
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City of Palm Desert Staff Report
Meeting Date: October 8, 2026
Prepared By: Carlos Flores, AICP, Deputy Director of Development Services Department: Development Services
Subject: Award a Contract to Integrated Pest Control Management, Inc., for Pest Control and Extermination Services at Palm Desert Housing Authority Properties Recommendation

1. Award a Contract to Integrated Pest Control Management, Inc., under Request for Proposals (RFP) No. 2026-RFP-038 for Pest Control and Extermination Services for Palm Desert Housing Authority properties for an initial eight-month term from November 1, 2026, through June 30, 2027, in an amount not to exceed $59,630, including scheduled pest control services and up to $12,150 for authorized Extra Work on an asneeded basis.

2. Authorize up to four (4) additional one-year extensions, in an amount not to exceed $75,000 per extension, subject to satisfactory contractor performance and the availability of funding.

3. Authorize General Counsel to make necessary non-monetary changes to the agreement.

4. Authorize the Executive Director to execute agreement, amendments, changes, and all documents necessary to effectuate this action, in accordance with Section 3.30.170 of the Palm Desert Municipal Code.

5. Find that the recommended actions are exempt from the California Environmental Quality Act (CEQA) Guidelines Sections 15301, Class 1, Existing Facilities.

Executive Summary
The Palm Desert Housing Authority issued a RFP for pest control and extermination services at its 15 affordable housing properties. Seven proposals were received and evaluated based on qualifications, experience, service approach, references, and cost. Integrated Pest Control Management, Inc., received the highest overall evaluation score and is recommended for award.

The proposed Agreement provides for an initial eight-month term from November 1, 2026, through June 30, 2027, in an amount not to exceed $59,630, including scheduled pest control services and up to $12,150 for authorized additional services. The Agreement also provides for up to four additional one-year extensions at an annual amount not to exceed $75,000, subject to satisfactory contractor performance and available funding.

Background/Analysis
The Palm Desert Housing Authority (PDHA) owns and operates a portfolio of 15 affordable housing properties that require ongoing maintenance to preserve safe, sanitary, and quality housing for residents. Routine pest control and extermination services are essential to 161

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maintaining habitability, preventing unit turnover, protecting property assets, and ensuring compliance with health and safety standards. To support these objectives, the PDHA periodically procures qualified contractors to provide comprehensive interior and exterior pest control, rodent control, and related extermination services throughout its housing portfolio.

On June 9, 2026, the PDHA issued Request for Proposals (RFP) No. 2026-RFP-038 through the OpenGov procurement portal to solicit proposals from qualified firms. A competitive RFP process was selected because the evaluation emphasized overall qualifications, experience, service approach, and responsiveness in addition to cost, ensuring the PDHA selected the firm that offered the best overall value.

Seven (7) proposals were received and evaluated by a four-member panel comprised of Development Services and Finance staff familiar with the operational and maintenance needs of the PDHA portfolio. Proposals were evaluated based on the criteria established in the RFP, including qualifications, experience, project approach, references, and cost. The aggregate scores summary are as follows:

Table 1 – RFP Scoring Summary
Proposer Location Evaluation Score Annual
Service
Amount
Accurate Termite and Pest Control Irvine 74.89 $124,604 Dewey Pest Control Response Thousand Palms 59.38 Incomplete Frazier Pest Control Cathedral City 67.63 $83,760
Integrated Pest Control Management Ontario 79.63 $62,850 Lloyd Pest Control San Diego 76.13 $71,302
On The Fly Services Palm Desert 71.00 $65,284
Orkin, LLC Thousand Palms 61.63 $69,757
Following the evaluation and ranking process, Integrated Pest Control Management, Inc., received the highest overall score and is recommended for award. The firm's proposal demonstrated the experience, qualifications, and service approach necessary to maintain the PDHA housing portfolio at a competitive cost.

Integrated's annual proposal for scheduled pest control services is $62,850. Because the initial Agreement will run from November 1, 2026, through June 30, 2027, the initial eight-month term includes $30,740 for monthly exterior services and $16,740 for annual interior services. Up to $12,150 is also available for authorized Extra Work, resulting in an initial not-to-exceed amount of $59,630. Each subsequent one-year extension would have a total annual not-to-exceed amount of $75,000.

Appointed Body Recommendation
The Housing Commission recommended approval of the award at its meeting on August 12, 2026.

Legal Review
This report has been reviewed by the City Attorney’s Office. 162

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Financial Impact
Funding for Pest Control and Extermination Services has been appropriated within the Fiscal Year 2026-27 operating budgets for the respective Palm Desert Housing Authority properties.

The initial eight-month Agreement has a not-to-exceed amount of $59,630. Any future oneyear extension would have a not-to-exceed amount of $75,000 and would be subject to available funding within the applicable PDHA operating budgets. Approval of the recommended action will have no impact on the General Fund.

Attachments

1. Draft Pest Control and Extermination Services Agreement

2. Draft Payment and Performance Bonds
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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).

PALM DESERT HOUSING AUTHORITY

MAINTENANCE SERVICES AGREEMENT

1. Parties and Date. This Agreement is made and entered into on October 8, 2026, by and between the Palm Desert Housing Authority, a Public Body, Corporate and Politic, a political subdivision 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, (“Authority”) and Integrated Pest Control Management, Inc, a Corporation, with its principal place of business at 1910 S. Archibald Ave., Ste. G, Ontario, CA 91761 ("Contractor"). The Authority and Contractor are sometimes individually referred to herein as "Party" and collectively as "Parties."

1.1 Housing Authority Approval.

On October 8, 2026 the Palm Desert Housing Authority approved the award of this Agreement to the Contractor above.

2. Recitals.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the Authority 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 Authority. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of Authority. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

2.2 Project.

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

Pest Control and Extermination Services at PDHA Properties (hereinafter referred to as “the Project”).

3. Terms.

3.1 Scope of Services and Term.

3.1.2 Term. The term of this Agreement shall be from November 1, 2026, to June 30, 2027, unless earlier terminated as provided herein. The Authority shall have the unilateral option, at its sole discretion, to renew this Agreement for no more than four (4) additional one-year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services. The current term is eight (8) months based off the monthly amounts shown in Exhibit C. Future annual terms will be based off the same monthly amounts shown in Exhibit C but done for a twelve (12) month term.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. Authority 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 Authority 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 Authority, 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 Authority’s Representative. The Authority hereby designates Housing Management Analyst, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). Authority’s Representative shall have the power to act on behalf of the Authority for all purposes under this Agreement except for increasing compensation. Contractor shall not accept direction or orders from any person other than the Authority’s Representative or his or her designee.

3.2.5 Contractor’s Representative. Contractor hereby designates Victor Monterroso, Owner, 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 166
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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 Authority staff in the performance of Services and shall be available to Authority’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 Authority to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

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

Neither Authority nor Contractor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural 167
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disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the Services, only to the extent such strikes and other organized labor action are beyond the control of Contractor and its subconsultants, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the Services and Agreement.

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

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

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

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

3.2.10.1 Employment Eligibility; Contractor. Contractor certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Contractor certifies that it has not committed a violation of any such law within the five (5) years immediately 168
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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 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 Authority 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 Authority, and prior to commencement of the Services, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, 169
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policies of insurance of the type and amounts described below and in a form that is satisfactory to Authority.
(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, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The Authority’s Risk Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
(a) A drop-down feature requiring the policy to
respond if any primary insurance that would
otherwise have applied proves to be
uncollectible in whole or in part for any reason;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall “follow form” to the underlying
primary policies.
(e) Insureds under primary policies shall also be
insureds under the umbrella or excess policies.
(D) Workers’ Compensation Insurance. Contractor shall
maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to Authority, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, 170
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its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.
(E) Fidelity Coverage. RESERVED
(F) Cyber Liability Insurance. RESERVED
(G) Pollution Liability Insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to the Authority providing coverage for liability arising out of sudden, accidental, and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Agreement shall be specifically scheduled on the policy as “covered operations”. The policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites.

3.2.11.2 Other Provisions and Requirements.
(A) Proof of Insurance. Contractor shall provide certificates of insurance to Authority 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 Authority’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with Authority at all times during the term of this contract. Authority 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 Authority shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance.

Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Authority before the Authority’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, Authority has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by Authority will be promptly reimbursed by Contractor, or Authority will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, Authority may cancel this Agreement. 171
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(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 Authority, 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 Authority, 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 Authority to inform Contractor of non-compliance with any requirement imposes no additional obligations on the Authority 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 Authority 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 Authority with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they 172
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include any limiting endorsement of any kind that has not been first submitted to Authority and approved of in writing.
(L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
(M) Pass Through Clause. Contractor agrees to ensure that its sub-consultants, sub-contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to Authority for review. (N) Authority’s Right to Revise Specifications. The Authority 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 Authority and Contractor may renegotiate Contractor’s compensation. If the Authority 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 Authority. Authority reserves the right to require that selfinsured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by Authority. (P) Timely Notice of Claims. Contractor shall give Authority 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:
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scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.13 Bonds.

3.2.13.1 Performance Bond. Contractor shall be required to execute and provide to Authority 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 Authority. No payment will be made to Contractor until a Performance Bond has been received and approved by the Authority. Contractor shall use and accept the standard bond template provided by the Authority.

3.2.13.2 Payment Bond. Contractor shall be required to execute and provide to Authority 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 Authority. No payment will be made to Contractor until a Performance Bond has been received and approved by the Authority. Contractor shall use and accept the standard bond template provided by the Authority.

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 Authority, 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 Authority. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the Authority, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the Authority. 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 Authority 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 Authority. 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 Authority.
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3.2.14 Accounting Records. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement.

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

3.2.15 Work Sites.

3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money– will be allowed as to such matters after commencement of the Services.

3.2.15.3 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 Authority in writing. The Authority 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 Authority 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 Authority.

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 175
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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 Authority 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 Authority 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 Authority 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 Authority, regardless of whether or not such warranties and guarantees have been transferred or assigned to the Authority by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the Authority. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the Authority, the Authority 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 Authority for any expenses incurred hereunder upon demand.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation for all Services performed under this Agreement, including authorized reimbursements, at the rates set forth in Exhibit “C,” which is attached hereto and incorporated herein by this reference.

Except as expressly provided herein, such rates are firm and fixed for the term of this Agreement and shall not be subject to adjustment, escalation, or increase based upon inflation, increases in labor or material costs, market conditions, supply chain disruptions, tariffs, taxes, or any other increases in Contractor's costs of performance. Contractor acknowledges and agrees that it assumes the risk of any such cost increases during the term of this Agreement.

Notwithstanding the foregoing, the Authority may, in its sole discretion, consider a request for a rate adjustment. Any adjustment to the rates set forth in Exhibit “B” shall require prior approval by the Housing Authority or the Executive Director, as applicable, and shall be effective only upon execution of a written amendment to this Agreement. If approved, any rate adjustment shall be based solely upon changes in the Consumer Price Index for All Urban Consumers (CPI-U), All Items, for the Riverside–San 176
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Bernardino–Ontario, California region, for the twelve (12) month period ending in March, and shall not exceed the percentage increase reflected therein unless otherwise expressly approved by the Executive Director.

The compensation, per fiscal year, shall not exceed FORTY-SEVEN THOUSAND, FOUR HUNDRED EIGHT AND 00/100 DOLLARS ($47,480.00) without written approval of the Housing Authority or the Executive Director, as applicable. Extra Work may be authorized, as described in Section 3.3.5, and if authorized, will be compensated at the rates and manner set forth in this Agreement and shall not exceed TWELVE THOUSAND, ONE HUNDRED FIFTY AND 00/100 DOLLARS ($12,150.00) per fiscal year.

The total compensation under this Agreement, including base and extra work, shall not exceed FIFTY-NINE THOUSAND, SIX HUNDRED THIRTY AND 00/100 DOLLARS ($59,630.00) per fiscal year. For the initial eight (8)-month term, total compensation shall not exceed $59,630.00. For each authorized one-year renewal terms, total compensation shall not exceed $75,000.00, as further described in Exhibit ‘C.’

3.3.2 Payment of Compensation. Contractor shall submit to Authority monthly invoices which provides a detailed description of the Services and hours rendered by Contractor. Authority shall, within thirty (30) days of receiving such statement, review the statement and pay all non-disputed and approved charges.

3.3.3 Deductions. Authority may deduct or withhold, as applicable, from each progress payment an amount necessary to protect Authority 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 Authority, incurred by the Authority for which Contractor is liable under the Agreement; and (4) any other sums which the Authority 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 Authority 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 Authority.

3.3.5 Extra Work. At any time during the term of this Agreement, Authority may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by Authority to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the 177
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execution of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from Authority’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 $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Authority shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement.

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

3.3.7 Registration/DIR Compliance. If the Services are being performed as part of an applicable “public works” or “maintenance” project, and if the total compensation is $1,000 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. 178
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3.4 Termination of Agreement.

3.4.1 Grounds for Termination. Authority 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 Authority, and Contractor shall be entitled to no further compensation. Contractor may not terminate this Agreement except for cause. The rights and remedies of the Authority provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.

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

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

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

3.5 General Provisions.

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

Contractor: INTEGRATED PEST CONTROL MANAGEMENT,
INC
1910 S. ARCHIBALD AVE., STE. G
ONTARIO, CA 91761
ATTN: JOSE FLORES, PRESIDENT
Authority: PALM DESERT HOUSING AUTHORITY
73-510 FRED WARING DRIVE
PALM DESERT, CA 92260-2578
ATTN: HOUSING MANAGEMENT ANALYST
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Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.2 Indemnification.

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

3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of Authority’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 Authority, 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 Authority, 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 Authority for the cost of any settlement paid by the Authority, 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 Authority’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse the Authority, 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 Authority, the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives.

3.5.3 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. In addition to any and all Agreement requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the Authority. 180
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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 Authority.

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

3.5.5 Authority’s Right to Employ Other Contractors. Authority 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 Authority. 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 Authority 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, Authority shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of Authority, during the term of his or her service with Authority, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

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

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

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

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

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

BY AND BETWEEN PALM DESERT HOUSING AUTHORITY

AND INTEGRATED PEST CONTROL MANAGEMENT, INC
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

Office Use:

Quality Check Insurance
City Clerk Contracts Initial
Review
Final
Review
Bonds

PALM DESERT HOUSING AUTHORITY
_____________________________________
Chris Escobedo
Executive Director
Attest:
____________________________________
Anthony J. Mejia
Secretary
Approved as to form:
____________________________________
Isra Shah
General Counsel

INTEGRATED PEST CONTROL
MANAGEMENT, INC., A CORPORATION
_____________________________________
Jose Flores
President
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
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Exhibit “A”
EXHIBIT “A”

SCOPE OF SERVICES
Monthly Exterior Pest Control Services
The scope of services includes a monthly exterior pest control service at all PDHA properties, as required by Riverside County Health Department standards and any other governing entity.

Monthly services include, but not limited to:
• Perimeter Inspections & Treatment Zone: Technicians will perform a 360-degree inspection of all building foundations, expansion joints, and weep holes. We establish a precise chemical barrier using targeted, low-impact residual materials applied up and out from the foundation to disrupt crawling insect pathways. • Common Area Framework: Thorough inspections and treatments will be executed across all shared infrastructure, including walkways, stairwells, community rooms, administrative spaces, and public restrooms.
• Trash Enclosure Enforcement: Recognizing trash areas as primary pest vectors, technicians will apply targeted micro-encapsulates, check for tunneling, and deliver urgent sanitation feedback regarding conditions conducive to pest breeding. • Landscape & Structure Interface: Technicians inspect vegetation touchpoints where trees or ornamental shrubs contact roofs or eaves, acting as natural bridges for ant and spider colonies.
• Debris & Cleanup: All service-related debris is entirely removed from the site, restoring treated areas to an immaculate condition before departure. • A log of every service, including date and time, along with repair made shall be submitted to property management weekly and after each service visit.

Rodent Control:
• On every monthly visit, every station is opened, cleaned, inspected for consumption trends, and replenished with fresh, weather-resistant bait blocks Annual Interior Service:
• Occupied Unit Treatment: Occupied unit services will be coordinated with property management in advance. Property management will provide resident notifications in accordance with California law (minimum 24-hour advance notice). Our technicians will work efficiently to minimize time in occupied units and will leave units in clean condition. • Common Area Interior Treatment: Interior common areas — including lobbies, laundry rooms, community rooms, offices, and restrooms — will be treated as scheduled and as needed.
184
Contract No. ___________
Exhibit “B”
EXHIBIT “B”

SCHEDULE OF SERVICES
The contractor shall perform the services in accordance with the mutually agreed-upon schedule.

Frequency
For all fifteen (15) properties, the table below reflects the frequency and service required:

Service Type Minimum
Frequency Description/ Requirements
Exterior Pest Control
Service
Monthly at each
property
Includes building perimeters,
exterior common areas,
grounds immediately
surrounding buildings,
stairwells, trash areas, laundry
buildings, maintenance
buildings, community
buildings, and other commonuse areas.

Vacant Unit Interior
Service
During scheduled
monthly service
visits and as
otherwise
requested
Includes treatment of vacant
units identified by property
management.

Occupied Unit Interior
Service Requests
During scheduled
monthly service
visits and as
otherwise
requested
Includes occupied units
requesting service and
coordination through property
management. This is part of
the interior work identified in
Exhibit C, and not extra work.

Interior Common Area
Treatment
As needed /
when pest activity
is observed
Includes treatment of interior
common areas identified by
property management or
Authority representatives.

This is part of the interior
work identified in Exhibit C,
and not extra work.

Rodent Bait Station
Inspection /
Monitoring /
Refilling
Monthly minimum
and as necessary
Includes placement,
monitoring, inspection,
maintenance, and refilling of
bait stations.
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Contract No. ___________
Exhibit “B”
Annual Interior
Treatment
Program (if
required by
Authority)
Once annually Includes treatment of all units
and buildings regardless of
occupancy status if directed
by Authority. This is part of
the interior work identified in
Exhibit C, and not extra work.

Follow-Up / ReTreatment
Services
As necessary Additional visits required
when initial treatment is
ineffective for covered
services.

Emergency Service Call
Return
Within one (1)
hour
Contractor shall acknowledge
emergency requests within
one hour of notification.

Emergency Response
Service
Within twentyfour (24) hours Contractor shall respond to property and provide
corrective action within 24
hours.

Activity Reports Following each
service visit
Reports shall be submitted
electronically in Authority
approved format.

Preventative Pest
Monitoring and
Recommendations
Ongoing
throughout
contract term
Contractor shall continuously
monitor pest activity and
provide recommendations for
reducing recurring
infestations and conducive
conditions.
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Contract No. ___________
EXHIBIT “C”
Revised 03-2026
72500.00001\44748717.1
EXHIBIT “C”

COMPENSATION
The total annual compensation shall not exceed 59,630 for the initial eight (8) month term and $75,000 for any subsequent annual extension from Section 3.3.1 per fiscal year and may only be adjusted for Consumer Price Index for all Urban Consumers (CPIU) for the Riverside-San Bernardino-Ontario, CA Region rate, All Items, for the 12-month period ending March, with written approval from the Housing Authority or Executive Director, as applicable.

COMPENSATION
Total compensation under this Agreement shall not exceed eight (8) months of service.

The maximum compensation payable under this Agreement for the initial eight (8) month year term shall not exceed $59,630.00. The extra work identified and regulated by section 3.3.5 is included in the not to exceed amount of $59,630.

Service Not to Exceed Amount
Monthly Exterior Pest Control Services $30,740
Annual Interior Pest Control Services $16,740
Extra Work $12,150
The maximum compensation payable under this Agreement for any future one (1) year term extensions shall not exceed $75,000.00. The extra work identified and regulated by section 3.3.5 is included in the not to exceed amount of $75,000.

Service Not to Exceed Amount
Monthly Exterior Pest Control Services $46,110
Annual Interior Pest Control Services $16,740
Extra Work $12,150
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Contract No. ___________
EXHIBIT “C”
Revised 03-2026
72500.00001\44748717.1
Line Property Name # of Units # of Bldgs Quantity
Unit of
Measur
e
# of Bait
Stations
Included
in Cost
Monthly
Exterior
Service
Cost
Total
1 California Villas 141 10 8 Months
$355.50 $2,844
2 Candlewood 30 5 8 Months
$1,260
3 Carlos Ortega Villas 73 12 8 Months
$2,232
4 Catalina Gardens 72 18 8 Months
5 Desert Pointe 64 4 8 Months
6 La Rocca Villas 27 16 8 Months
7 Las Serenas 150 18 8 Months
8 Laguna Palms 48 16 8 Months
9 Neighbors 24 4 8 Months
$1,044
10 One Quail Place 384 43 8 Months
11 Palm Village 36 3 8 Months
12 Pueblos 15 2 8 Months
$792
13 Sage Crest Senior 14 2 8 Months
$792
14 Santa Rosa 20 5 8 Months
5 $130.50 $1,044
15 Taos Palms 16 4 8 Months
4 $99 $792

TOTAL $30,740.00
20 5
10 $157.50
$279
12 $2,412
8 $1,584
5 22
$1,836
$427.50 $3,420
8 $261 $2,088
4 $130.50
50 $944.50 $7,556
5 $130.50 $1,044
4 $99
$301.50
$198
$229.50
4 $99
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Contract No. _____________
Revised 11-2-20
BBK 72500.00001\32374915.1

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the Palm Desert Housing Authority (hereinafter referred to as “Authority”) has awarded to Integrated Pest Control, Inc. (hereinafter referred to as the “Contractor”) an agreement for Housing Authority Pest Control and Extermination Services (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated November 1, 2026, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, Integrated Pest Control, Inc., the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the Authority in the sum of SEVENTY FIVE THOUSAND AND 00/100 DOLLARS, ($75,000.00), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

Whenever Contractor shall be, and is declared by the Authority to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the Authority’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
189
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the Authority, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable.

The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the Authority under the Contract and any modification thereto, less any amount previously paid by the Authority to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the Authority to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the Authority under the Contract and any modification thereto, less any amount previously paid by the Authority to the Contractor and any other set offs pursuant to the Contract Documents.

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

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

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON FOLLOWING PAGE]
190
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____.
(Corporate Seal)
Contractor/ Principal
By: _______________________________
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: ________________________________
Printed Name: _______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.

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

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety and
Agent or Representative for
service of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
191
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

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

WITNESS my hand and official seal.

Signature of Notary Public

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

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

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
192
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
193

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS That
WHEREAS, the Palm Desert Housing Authority (hereinafter designated as the “Authority”), by action taken or a resolution passed September 10, 2026, has awarded to Integrated Pest Control and Extermination Services, Inc., hereinafter designated as the “Principal,” a contract for the work described as follows:

Housing Authority On-Call Electrical Maintenance Services (the “Project”).; and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated November 1, 2026, (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the Authority in the penal sum of SEVENTY FIVE THOUSAND AND 00/100 DOLLARS, ($75,000.00) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

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

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or 194
attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or Authority and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code. [SIGNATURES ON FOLLOWING PAGE]
195
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By: ______________________________
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: ________________________________
Printed Name: _______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
196
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
197
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
198

Page 1 ends

City of Palm Desert Staff Report
Meeting Date: October 08, 2026
Prepared By: Victor Gomez, Senior Management Analyst
Department: Development Services
Subject: Award a Contract to Pro-Craft Construction, Inc., for On-Call Plumbing Maintenance Services at Palm Desert Housing Authority Properties
Recommendation

1. Award a contract to Pro-Craft Construction, Inc., under Request for Proposals (RFP) No. 2026-RFP-035 for On-Call Plumbing Maintenance Services for Palm Desert Housing Authority properties for an initial term from November 1, 2026, through June 30, 2027, in an amount not to exceed $201,149 per fiscal year, with up to four additional one-year renewal terms subject to satisfactory performance and annual budget appropriation.

2. Authorize General Counsel to make necessary non-monetary changes to the agreement.

3. Authorize the Executive Director to execute agreement, amendments, changes, and all documents necessary to effectuate this action, in accordance with Section 3.30.170 of the Palm Desert Municipal Code.

4. Find that the recommended actions are exempt from the California Environmental Quality Act (CEQA) Guidelines Sections 15301, Class 1, Existing Facilities Background/Analysis
The Palm Desert Housing Authority (PDHA) owns and operates a portfolio of 15 affordable housing properties that require ongoing maintenance to preserve safe, sanitary, and quality housing for residents. Routine general plumbing maintenance, water supply line leaks, faucet and valve replacement, toilet repair or maintenance, fixture repairs, hose bid repairs, exposed waste piping repairs, and related plumbing services are essential to maintaining habitable units, minimizing vacancy turnaround times, protecting property assets, and ensuring compliance with health and safety standards. This contract also includes emergency response repairs when necessary. To support these objectives, the PDHA periodically procures qualified contractors to provide on-call plumbing and other related maintenance services throughout its housing portfolio.

On June 9, 2026, the PDHA issued Request for Proposals (RFP) No. 2026-RFP-035 through the OpenGov procurement portal to solicit proposals from qualified firms. A competitive RFP process was selected because the evaluation emphasized overall qualifications, experience, service approach, and responsiveness in addition to cost, ensuring the PDHA selected the firm that offered the best overall value.
199

Page 2 ends

Three (3) proposals were received and evaluated by a four-member panel comprised of Development Services and Finance staff familiar with the operational and maintenance needs of the PDHA portfolio. Proposals were evaluated based on the criteria established in the RFP, including qualifications, experience, project approach, references, and cost. The aggregate scores summary are as follows:

Proposer Location Evaluation Score
AEA Plumbing Indio 34.38
John Austin Palm Desert 72.63
Pro-Craft Construction, Inc. Redlands 90.75
Following the evaluation and ranking process, Pro-Craft Construction, Inc. received the highest overall scores and were determined to provide the best overall value to the Palm Desert Housing Authority. Pro-Craft Construction’s proposal demonstrated the experience, qualifications, and comprehensive service approach necessary to effectively maintain the PDHA housing portfolio while offering competitive pricing. Awarding a contract to Pro-Craft Construction will increase service capacity, improve responsiveness to routine and emergency work orders, and provide greater flexibility to meet the ongoing maintenance needs of the PDHA's properties.

The proposed contract will provide on-call plumbing maintenance services, including troubleshooting and repair of kitchen, bathroom, laundry, exterior, and common-area plumbing systems and coordination with other trades as necessary to complete authorized work orders.

These services will support routine maintenance, unit turnover activities, and emergency repairs across the PDHA's affordable housing portfolio.

The initial contract term will be for eight (8) months, with the option for the PDHA to exercise up to four (4) additional one-year renewal terms, subject to satisfactory contractor performance, continued operational need, and the availability of funding.

Appointed Body Recommendation
The Housing Commission recommended approval of the award at their meeting on August 12, 2026.

Environmental Review
The proposed action is categorically exempt from CEQA pursuant to CEQA Guidelines section 15301 (Class 1, Existing Facilities). The proposed action provides for routine maintenance and repair of plumbing systems at existing Palm Desert Housing Authority properties. These activities qualify for the Class 1 exemption under section 15301(a), which applies to interior alterations involving plumbing, and involve no expansion of the existing use. None of the exceptions set forth in CEQA Guidelines section 15300.2 applies. Accordingly, no further CEQA review is required.

Legal Review
This report has been reviewed by the City Attorney’s Office. 200

Page 3 ends

Financial Impact
Funding for On-Call Plumbing Maintenance Services has been appropriated within the Fiscal Year 2026-27 operating budgets for the respective Palm Desert Housing Authority properties.

Therefore, approval of the recommended action will have no impact on the General Fund.

Attachments

1. Draft On-Call Plumbing Maintenance Services Agreement

2. Draft Payment and Performance Bonds
201

Page 4 ends

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).

MAINTENANCE SERVICES AGREEMENT

1. Parties and Date. This Agreement is made and entered into on November 1, 2026, by and between the Palm Desert Housing Authority, a Public Body, Corporate and Politic, a political subdivision 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, (“Authority”) and Pro-Craft Construction, Inc., a Corporation, with its principal place of business at 500 Iowa Street, Redlands, CA 92373 ("Contractor"). The Authority and Contractor are sometimes individually referred to herein as "Party" and collectively as "Parties."

1.1 Housing Authority Approval.

On October 8, 2026 Housing Authority approved the award of this Agreement to the Contractor above.

2. Recitals.

2.1 Contractor.

2.2 Project.

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

On-Call Plumbing Maintenance Services for
Palm Desert Housing Authority Properties
(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 Authority all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the plumbing 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.
203
Contract No. ___________
2 3.1.2 Term. The term of this Agreement shall be from November 1, 2026, to June 30, 2027, unless earlier terminated as provided herein. The Authority shall have the unilateral option, at its sole discretion, to renew this Agreement for no more than four (4) additional one-year terms. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.2 Responsibilities of Contractor.

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

3.2.5 Contractor’s Representative. Contractor hereby designates Christopher McFayden, 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. 204
Contract No. ___________
3 3.2.6 Coordination of Services. Contractor agrees to work closely with Authority staff in the performance of Services and shall be available to Authority’s staff, consultants, and other staff at all reasonable times.

3.2.8 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be provided separately in writing to the Contractor.

Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the Authority will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the Authority as fixed and liquidated damages, and not as a penalty, the sum of ONE HUNDRED DOLLARS AND 00/100 ($100.00) per day for each and every calendar day of delay beyond the Performance Time or beyond any completion schedule or Project milestones established pursuant to this Agreement.

Neither Authority nor Contractor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Services); (4) strikes and other organized labor action occurring at the site and the effects 205
Contract No. ___________
4 thereof on the Services, only to the extent such strikes and other organized labor action are beyond the control of Contractor and its subconsultants, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the Services and Agreement.

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

3.2.10.2 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation 206
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5 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.

3.2.11 Insurance.

3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of Authority, 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 Authority.
(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. 207
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6 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, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The Authority’s Risk Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
(a) A drop-down feature requiring the policy to
respond if any primary insurance that would
otherwise have applied proves to be
uncollectible in whole or in part for any reason;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall “follow form” to the underlying
primary policies.
(e) Insureds under primary policies shall also be
insureds under the umbrella or excess policies.
(D) Workers’ Compensation Insurance. Contractor shall
maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to Authority, 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.

3.2.11.2 Other Provisions and Requirements.
(A) Proof of Insurance. Contractor shall provide certificates of insurance to Authority 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 Authority’s Risk Manager prior to 208
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7 commencement of performance. Current certification of insurance shall be kept on file with Authority at all times during the term of this contract. Authority 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 Authority shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance.

Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Authority before the Authority’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, Authority has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by Authority will be promptly reimbursed by Contractor, or Authority will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, Authority 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 Authority, 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 Authority, 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 Authority to inform Contractor of non-compliance with any requirement imposes no additional obligations on the Authority nor does it waive any rights hereunder. 209
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8 (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 Authority 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 Authority with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers, and representatives, shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Authority and approved of in writing.
(L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
(M) Pass Through Clause. Contractor agrees to ensure that its sub-consultants, sub-contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to Authority for review. (N) Authority’s Right to Revise Specifications. The Authority 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 Authority and Contractor may renegotiate Contractor’s compensation. If the Authority 210
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9 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 Authority. Authority reserves the right to require that selfinsured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by Authority. (P) Timely Notice of Claims. Contractor shall give Authority prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(Q) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

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

3.2.13 Bonds.

3.2.13.3 Bond Provisions. Should, in Authority’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 Authority. 211
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10 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 Authority, 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 Authority. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the Authority, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the Authority. 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 Authority 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.

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

3.2.15 Work Sites.

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 Authority immediately and prior to performing any Services or altering the condition. 212
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11 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 Authority in writing. The Authority 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 Authority and Contractor.

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 Authority 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 Authority 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 Authority 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 Authority, regardless of whether or not such warranties and guarantees have been transferred or assigned to the Authority by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the Authority. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the Authority, the Authority shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the 213
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12 replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the Authority 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 TWO HUNDRED ONE THOUSAND ONE HUNDRED FORTY-NINE DOLLARS AND 00/100 ($201,149.00) without written approval of the Authority Board or Executive Director, as applicable.

Contractor shall submit its final invoice to Authority 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 Authority for any reason whatsoever.
.3.3 Deductions. Authority may deduct or withhold, as applicable, from each progress payment an amount necessary to protect Authority 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 Authority, incurred by the Authority for which Contractor is liable under the Agreement; and (4) any other sums which the Authority 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 Authority 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 Authority.

3.3.5 Extra Work. At any time during the term of this Agreement, Authority may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by Authority 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 Authority’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 214
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13 “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 $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Authority shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement.

3.4 Termination of Agreement.

Upon termination, Contractor shall be compensated only for those Services which have been adequately rendered to Authority, and Contractor shall be entitled to no further 215
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14 compensation. Contractor may not terminate this Agreement except for cause. The rights and remedies of the Authority provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.

3.5 General Provisions.

Contractor: Pro-Craft Construction
500 Iowa Street
Redlands, CA 92373
ATTN: Christopher McFayden
Authority: Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: Housing Management Analyst
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 216
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15 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 Authority.

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 Authority.

3.5.4 Time of Essence. Time is of the essence for each and every provision of this Agreement.
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16 3.5.5 Authority’s Right to Employ Other Contractors. Authority 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.

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

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

3.5.13 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, Authority shall have the right to rescind this Agreement without liability. For the term of this Agreement, no 218
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17 member, officer, or employee of Authority, during the term of his or her service with Authority, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

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

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

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

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

BY AND BETWEEN PALM DESERT HOUSING AUTHORITY
AND PRO-CRAFT CONSTRUCTION, INC.

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

Office Use:

Quality Check Insurance
City Clerk Contracts Initial
Review
Final
Review
Bonds

CORPORATION
___________________________________
Christopher McFayden
President/CEO
___________________________________
Susan McFayden
Chief Financial Officer
467234
Contractor’s License Number and
Classification
1000001106
DIR Registration Number
220
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EXHIBIT “A”
Revised 03-2026
72500.00001\44748717.1
EXHIBIT “A”

SCOPE OF SERVICES
Service Request Intake, Dispatch, and Tracking
Service requests may be received from the Housing Authority, property management company, or other authorized representatives by phone, email, work order, or other approved communication methods. Upon receipt, the Service Coordinator gathers and verifies all pertinent information, including the property name, unit number or work location, description of the reported issue, service priority, access requirements, contact information, and authorization status.

Each request is logged into our service management system and assigned to qualified personnel based on the nature of the work, technician availability, location, required equipment, and response priority. The Service Coordinator monitors scheduling and dispatch activities while the Project Manager oversees resource allocation, service quality, and overall contract compliance. Throughout the service process, work orders are tracked from initial receipt through completion. Field personnel provide status updates regarding arrival times, work progress, material requirements, unforeseen conditions, and completion status, allowing management personnel to maintain visibility overactive service requests and communicate updates to Housing Authority representatives as needed.

Work Prioritization
Pro-Craft utilizes a structured prioritization system to ensure resources are allocated appropriately and critical issues receive immediate attention.  Emergency Service Calls receive the highest priority and include conditions such as active leaks, flooding, sewer backups, burst pipes, gas-related plumbing concerns, no water, no hot water, or any condition affecting resident safety, habitability, or property protection. Upon notification, emergency requests are immediately escalated through dispatch, and management personnel are notified to coordinate response efforts. Pro-Craft will make every reasonable effort to respond within the Housing Authority's expected timeframe of two to four hours.  Urgent Service Calls involve situations requiring prompt attention to prevent disruption to operations, tenant inconvenience, property damage, or escalation into an emergency condition. These requests are prioritized for response within twenty-four hours whenever possible.
 Routine Service Calls consist of standard maintenance and repair activities that do not present an immediate threat to property or residents. Routine requests are generally scheduled within two to four business days and coordinated with property management to minimize disruption to residents.
 Scheduled Work is coordinated in advance with Housing Authority representatives and property management personnel and performed at mutually agreed-upon times.
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EXHIBIT “A”
Coordination with Housing Authority and Property Management Pro-Craft recognizes that successful service delivery requires continuous communication with all stakeholders. Our Project Manager will serve as the primary point of contact and work closely with Housing Authority representatives, property management personnel, residents, inspectors, and other designated parties throughout the service process.

Coordination efforts include scheduling access, confirming service priorities, communicating arrival times, discussing repair recommendations, obtaining approvals when necessary, and providing completion updates. This collaborative approach helps ensure expectations are clearly understood and work is completed efficiently with minimal disruption to property operations.

Authorization and Pre-Work Verification
Prior to mobilization, Pro-Craft confirms all information necessary to perform the work safely and efficiently. This includes verification of the property name, unit number or work location, description of the issue, estimated response time, applicable billing rate, service priority classification, and any applicable not-to-exceed (NTE) limits.

No work is performed without authorization from the Housing Authority, property management company, or designated representative. Authorization may be received through a work order, email, written approval, or verbal approval during emergency situations.

If technicians determine that additional work will exceed the approved scope or authorized amount, work is suspended and the Project Manager communicates the conditions, findings, and revised cost information for review and approval before proceeding.

The only exception is when immediate action is necessary to prevent injury, property damage, flooding, sewage backup, gas hazards, or loss of essential services. In these situations, personnel may perform temporary stabilization measures to protect life and property while notifying authorized representatives as quickly as possible.

Occupied-Unit Work and Access Coordination
For work occurring within occupied units, Pro-Craft coordinates access through property management and complies with all site-specific entry and notification requirements.

Personnel take appropriate measures to protect resident property, maintain clean work areas, and complete repairs as efficiently as possible.

Upon arrival, technicians identify themselves, explain the nature of the work being performed, and answer reasonable questions regarding the repair process. Every effort is made to minimize inconvenience to residents and complete work efficiently while maintaining a professional and respectful presence within the unit.

Communication During Service Delivery
If delays, access limitations, unsafe conditions, concealed damage, recurring system issues, or other unforeseen circumstances are encountered, Pro-Craft promptly 222
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EXHIBIT “A”
communicates those conditions to the Housing Authority or property management representative. Management personnel provide recommendations regarding temporary repairs, permanent corrective actions, replacement options, permit requirements, or additional work that may be necessary. This proactive communication process helps prevent misunderstandings and supports informed decision-making.

Protection of Property and Work Areas
The safety of residents, staff, and field personnel is a priority on every service call. Before beginning work, technicians evaluate site conditions and implement appropriate protective measures to safeguard occupants and property.

Protective practices may include floor coverings, containment barriers, equipment protection, dust control measures, water containment procedures, and isolation of work areas when necessary. Personnel are trained to protect fixtures, flooring, cabinetry, walls, finishes, and personal property while performing repairs.

Site Cleanup and Restoration
Upon completion of work, all tools, equipment, excess materials, and debris generated by the repair are removed from the work area. Technicians clean affected areas and leave the workspace in a safe and orderly condition appropriate for occupied residential environments. Any temporary repairs or remaining limitations are clearly communicated before departure.

Documentation and Reporting
A detailed service record is prepared for each assignment. Documentation includes the property name, unit number or work location, date and time of service, reported issue, diagnostic findings, work performed, labor hours, materials used, photographs when appropriate, and any temporary repairs implemented.

Service records also identify unresolved conditions, exclusions, recommended follow-up work, permit requirements, code-related concerns, and recommendations for larger repairs, replacements, accessibility modifications, or capital improvements when applicable. Invoices and supporting documentation reference the applicable work order, authorization number, or service request to ensure accountability, transparency, and complete traceability from request initiation through project closeout. 223
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EXHIBIT “B”
Revised 03-2026
72500.00001\44748717.1
EXHIBIT “B”

SCHEDULE OF SERVICES
The Contractor shall provide all labor, supervision, tools, equipment, vehicles, materials, permits, and incidentals necessary to perform on-call plumbing maintenance, repair, replacement, and emergency services at Palm Desert Housing Authority properties.

Services will be provided on an as-needed basis pursuant to service requests issued by the PDHA or its authorized representative.

Response Times
 Unless otherwise directed, Pro-Craft will make reasonable efforts to meet the following response times:
o Emergency: within 2 – 4 hours
o Urgent: within 24 hours
o Routine: within 2 – 4 business days
o Scheduled Work: as coordinated with property management Emergency conditions may include active leaks, flooding, sewer backups, burst pipes, loss of water, loss of hot water, gas-related plumbing concerns, or any condition affecting resident safety, habitability, or property protection. Urgent requests include situations that require prompt attention to prevent property damage, operational disruption, tenant inconvenience, or escalation into an emergency condition.

Emergency Dispatch Procedures
Emergency service requests receive immediate priority. Upon notification, the Service Coordinator or designated on-call representative gathers critical information including the property location, unit number, nature of the emergency, access requirements, and contact information. The request is immediately escalated to management personnel for review and assignment.

Qualified technicians are dispatched based on availability, proximity to the site, required equipment, and the nature of the emergency. Field personnel are provided with all available information prior to mobilization, allowing them to arrive prepared with the appropriate tools, equipment, and materials whenever possible.

Throughout the response process, management personnel remain engaged to monitor progress, coordinate resources, communicate status updates, and assist with escalation if additional personnel or equipment become necessary.

After-Hours, Weekend, and Holiday Availability
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EXHIBIT “B”
Pro-Craft maintains after-hours, weekend, and holiday availability through established oncall procedures. Emergency requests received outside normal business hours are routed through designated emergency contact channels and forwarded to on-call management personnel for immediate assessment and dispatch. This process provides Housing Authority representatives with direct access to personnel capable of initiating emergency response efforts at any time, including evenings, weekends, holidays, and declared emergency events
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EXHIBIT “C”
Revised 03-2026
72500.00001\44748717.1
EXHIBIT “C”

COMPENSATION
The total annual compensation shall not exceed Two Hundred One Thousand One Hundred Forty-Nine Dollars ($201,149.00) from Section 3.3.1 per fiscal year.

Plumbing Services $175,564.00
Plumbing Parts $25,585.00
Line
Item
Description Unit of
Measure
Unit Cost
1 Supervisor/Foreman Standard Rate Per Hour $294.87
2 Supervisor/Foreman PREVAILING WAGE Rate Per Hour $294.87 3 Supervisor/Foreman Emergency/After-Hour Rate Per Hour $443.06 4 Supervisor/Foreman Weekend/Holiday Rate Per Hour $443.06 5 Journeyman Standard Rate Per Hour $271.47
6 Journeyman PREVAILING WAGE Rate Per Hour $271.47
7 Journeyman Emergency/After-Hour Rate Per Hour $391.11 8 Journeyman Weekend/Holiday Rate Per Hour $391.11
9 Apprentice Standard Rate Per Hour $165.34
10 Apprentice PREVAILING WAGE Rate Per Hour $165.00
11 Apprentice Emergency/After-Hour Rate Per Hour $271.93 12 Apprentice Weekend/Holiday Rate Per Hour $271.93
13 Laborer Standard Rate Per Hour $181.70
14 Laborer PREVAILING WAGE Rate Per Hour $181.70
15 Laborer Emergency/After-Hour Rate Per Hour $286.49
16 Laborer Weekend/Holiday Rate Per Hour $286.49
17 Minimum Service Call Charge Each $294.87
18 Troubleshooting / Diagnostic Service Call Each $589.74 226
Contract No. _____________
Revised 11-2-20
BBK 72500.00001\32374915.1

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the Palm Desert Housing Authority (hereinafter referred to as “Authority”) has awarded to Pro-Craft Construction, Inc. (hereinafter referred to as the “Contractor”) an agreement for Housing Authority On-Call Plumbing Maintenance Services (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated October 1, 2026, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, Pro-Craft Construction, Inc., the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the Authority in the sum of TWO HUNDRED ONE THOUSAND ONE HUNDRED FORTY NINE DOLLARS, ($201,149.00), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

Whenever Contractor shall be, and is declared by the Authority to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the Authority’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
227
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the Authority, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable.

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

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
[SIGNATURES ON FOLLOWING PAGE]
228
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____.
(Corporate Seal)
Contractor/ Principal
By: _______________________________
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: ________________________________
Printed Name: _______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.

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

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety and
Agent or Representative for
service of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
229
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
230
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
231

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS That
WHEREAS, the Palm Desert Housing Authority (hereinafter designated as the “Authority”), by action taken or a resolution passed September 10, 2026, has awarded to ProCraft Construction, hereinafter designated as the “Principal,” a contract for the work described as follows:

Housing Authority On-Call Plumbing Maintenance Services (the “Project”).; and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated October 1, 2026, (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the Authority in the penal sum of TWO HUNDERED ONE THOUSAND ONE HUNDRED FORTY NINE DOLLARS, ($201,149.00) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or 232
relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or Authority and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code. [SIGNATURES ON FOLLOWING PAGE]
233
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By: ______________________________
Printed name: _______________________
Title: ______________________________
(Corporate Seal) Surety
By: ________________________________
Printed Name: _______________________
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate)
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
234
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
235
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

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

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
236

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City of Palm Desert Staff Report
Meeting Date: October 08, 2026
Prepared By: Victor Gomez, Senior Management Analyst
Department: Development Services
Subject: Authorize the Use of OMNIA Partners Cooperative Purchasing Vendors for Palm Desert Housing Authority Operations for Fiscal Year 2026-27 Recommendation

1. Authorize Quill, LLC, for recurring office supplies in an amount not to exceed $17,000.

2. Authorize Brady Plus dba Waxie Sanitary Supply for recurring purchase of janitorial and sanitary supplies in an amount not to exceed $17,000.

3. Authorize Lowe’s Home Centers, Inc., for recurring purchase of materials, supplies, and appliances in an amount not to exceed $215,000.

4. Authorize HD Supply Facilities Maintenance for recurring purchase of materials and supplies in an amount not to exceed $230,000.

5. Authorize Home Depot U.S.A., Inc., for recurring purchase of materials and supplies in an amount not to exceed $55,000.

6. Authorize The Sherwin-Williams Company for recurring purchase of paint and supplies in an amount not to exceed $45,000.

7. Authorize the disposal and recycling of inefficient, damaged, obsolete, and nonfunctioning appliances as appropriate in accordance with Environmental Protection Agency (“EPA”) standards and declare as surplus at the time of removal from the properties.

Background/Analysis
The Palm Desert Housing Authority (“Authority”) property management makes recurring purchases of a variety of items for Authority-owned properties throughout the year such as cabinets, counter tops, appliances, paint, building materials, plumbing supplies, bathroom fixtures, janitorial supplies, tools, office supplies, and any other necessary maintenance, repair, and operating supplies.

Since 2012, the Authority has secured national government cooperative pricing by participating in the OMNIA Partners cooperative purchasing program. The applicable cooperative contracts are Quill, LLC, Contract No. R190304; Brady Plus dba Waxie Sanitary Supply, Contract No. 152610; Lowe’s Home Centers, Inc., Contract No. R240805; Home Depot U.S.A, Inc., Contract Nos. 16154 and 260006-3; HD Supply, Contract No. 2020002299; and The Sherwin-Williams Company, Contract No. 02-147. OMNIA Partners has confirmed that the Authority may access these contracts, subject to Board approval. Palm Desert Municipal Code Section 3.30.160(E) allows participation in cooperative pricing when a competitive bid has already been completed.

The procurement of appliances from Lowe’s includes delivery and, whenever appropriate, the removal and recycling of old appliances. Staff requests authorization to dispose of or recycle all appliances removed from the Authority properties in accordance with EPA standards for 237

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responsible appliance disposal at appropriate recycling centers. Such disposed of or recycled inefficient damaged, obsolete, and non-functioning appliances are also requested to be declared as surplus at the time they are removed.

Requested amounts for each vendor are being maintained at the FY 2025–26 authorized baseline, rather than applying the additional 10% increase that has been used in prior years.

Because National CORE, the Authority’s property management company, just completed a full fiscal year managing the properties, staff is still evaluating operational supply needs under the new management structure. Because a full year of spending data is still being assessed, staff recommends keeping the prior year’s authorized amounts unchanged as the most reasonable baseline for FY 2026–27.

Appointed Body Recommendation
The Housing Commission reviewed this item at their September 29, 2026, meeting and recommended approval to the Housing Authority Board.

Environmental Review
The proposed actions involve recurring purchases of materials, supplies, and appliances and are not subject to CEQA pursuant to CEQA Guidelines section 15060(c)(2) and (3) because they will not result in a direct or reasonably foreseeable indirect physical change in the environment and are not a project as defined in CEQA Guidelines section 15378. Accordingly, no CEQA review is required.

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

Financial Impact
The FY 2026-27 Annual Budget includes funding in the appropriate Authority accounts for each of the properties. Therefore, there is no financial impact to the General Fund with this action.

Attachments

1. OMNIA Partners Participation Letter - Quill, LLC

2. OMNIA Partners Participation Letter - Brady Plus dba Waxie Sanitary Supply

3. OMNIA Partners Participation Letter - Lowe’s Home Centers, Inc.

4. OMNIA Partners Participation Letter - Home Depot U.S.A., Inc.

5. OMNIA Partners Participation Letter - HD Supply Facilities Maintenance

6. OMNIA Partners Participation Letter - The Sherwin-Williams Company 238

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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).

Page 1 ends

City of Palm Desert Staff Report
Meeting Date: October 08, 2026
Prepared By: Thomas Soule, Marketing & Tourism Manager
Department: Economic Development
Subject: Approve a sponsorship agreement with Palm Springs Life for Fashion Week El Paseo, Palm Desert Food & Wine, and Design Summit Palm Desert Recommendation

1. Approve a three-year sponsorship agreement with Desert Publications, Inc., d.b.a. Palm Springs Life, for Fashion Week El Paseo, Palm Desert Food & Wine, and Design Summit Palm Desert, in an amount up to $450,000 per year, with three optional oneyear extensions by mutual agreement, subject to annual appropriation and continued fulfillment of the agreement's sponsorship deliverables and performance requirements.

2. Appropriate an additional $50,000 from Undesignated General Fund Balance to City Sponsored Events Account No. 1104800-4306201 to fully support the year one request.

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

4. Authorize the City Manager to execute the agreement and related documents and, by mutual agreement, approve up to three one-year extensions, each subject to annual appropriation, satisfactory performance, and a sponsorship amount not to exceed $450,000 for the extension year.

Executive Summary
Staff recommends approval of a sponsorship agreement with Desert Publications, Inc., d.b.a.

Palm Springs Life, for Fashion Week El Paseo, Palm Desert Food & Wine, and the new Design Summit Palm Desert. The agreement would provide up to $450,000 annually for an initial three-year term and allow the City Manager to execute up to three one-year extensions by mutual agreement, subject to annual budget appropriation and continued fulfillment of the agreement’s sponsorship deliverables and performance requirements. This expands the City's sponsorship from two events to three beginning in 2027.

At the May 28, 2026, meeting, the City Council received a recap of the 2026 Fashion Week El Paseo and Palm Desert Food & Wine events and considered Palm Springs Life’s request to increase the City’s combined annual sponsorship from $300,000 to $450,000. The City Council directed staff to evaluate cost reductions and other offsets, negotiate an agreement as close to the requested amount as reasonably achievable, and return for formal consideration.

The adopted Fiscal Year 2026/27 budget includes $300,000 for the sponsorship and $100,000 in sponsorship contingency. Use of the full contingency would leave no remaining sponsorship contingency for FY 2026/27. An additional budget appropriation of $50,000 from the 253

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Undesignated General Fund Balance is required to fund the maximum $450,000 sponsorship amount.

Background
At the May 28, 2026, Council meeting, the City Council received a recap of the 2026 Fashion Week El Paseo and Palm Desert Food & Wine events and considered Palm Springs Life's request to increase the City's annual sponsorship amount from $300,000 to $450,000. The presentation included information regarding attendance, visitor composition, economic impact, marketing reach, and sponsorship benefits. The City Council directed staff to return with an agreement for formal consideration in an amount up to the $450,000 request.

Design Summit Palm Desert
Palm Springs Life plans to introduce Design Summit Palm Desert in March 2027 as a third event included within the proposed annual sponsorship amount. The Summit will focus on design, architecture, art, landscape, collecting, and related industries. Planned programming includes panels, presentations, exhibitions, showroom activations, architectural or home tours, demonstrations, and other experiences. Final dates and programming are currently under development.

The Summit is intended to complement Fashion Week El Paseo and Palm Desert Food & Wine by adding design-focused programming to the existing March event schedule. The three events will provide programming centered on fashion, culinary experiences, and design, respectively. The Summit is expected to involve Palm Desert and El Paseo businesses and organizations, including design showrooms, galleries, architects, interior and landscape designers, builders, real estate professionals, retailers, restaurants, hotels, and cultural organizations. Specific participants have not yet been finalized.

Palm Springs Life plans to coordinate the Summit’s schedule and production with the existing two events. This structure provides opportunities to use existing event infrastructure, including staging, lighting, audiovisual equipment, power, flooring, furnishings, signage, security planning, ticketing systems, hospitality areas, vendor relationships, and production personnel.

Because 2027 will be the inaugural Summit, the extent of these shared-infrastructure efficiencies will depend on the final event schedule, configuration, and programming. Palm Springs Life anticipates additional opportunities to coordinate infrastructure following the inaugural year.

Student Engagement
Fashion Week El Paseo offers free participation to students from the Coachella Valley, Desert Sands, and Palm Springs unified school districts, particularly those interested in art, design, fashion, photography, and event production. Programming includes a behind-the-scenes tour, access to a runway rehearsal and presentation, a pre-show student activation lounge, and admission to a Fashion Week runway show. In 2026, 550 local students participated.

Palm Desert Food & Wine invites culinary students from La Quinta High School and College of the Desert to participate in event preparation and culinary programming. Students work in professional event kitchens alongside participating celebrity and local chefs and assist with festival experiences, including the James Beard Luncheon. In 2026, 48 culinary students participated.
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Local Business Participation
Fashion Week El Paseo invites businesses along El Paseo to produce in-store events that Palm Springs Life promotes as part of the Fashion Week schedule. In 2026, 23 El Paseo retailers produced a combined 161 in-store events. Fashion Week also includes an El Paseoexclusive runway show featuring merchandise from participating businesses. Up to 10 businesses typically participate, presenting approximately 10 to 20 looks each. Palm Springs Life also seeks Palm Desert restaurants to participate as reception partners throughout Fashion Week.

Palm Desert Food & Wine invites local restaurants to participate in its Grand Tastings.

Participating restaurants serve attendees alongside the event's chefs, wineries, and other culinary partners.

These activities extend event programming beyond the primary event venue and provide opportunities for Palm Desert businesses and residents to participate directly in each event.

The community activation information below was provided as part of the 2026 festival recap. Fashion Week Community Benefit # Description
Student Participation 550 Dedicated nights, tours, presentations and activation
Educational Programs/Internships 4 Partnered with DSUSD, PSUSD, and CVUSD Local Business/Retailer Participation 35 Includes event needs for food and lodging Workforce Development 60 Temporary staff hired from local staffing agencies.

Community/Non-Profit Partnerships 35 Hotels, El Paseo, non-profits, schools, other businesses
Food & Wine
Student Participation 48 Students assisting with culinary prep and operations
Educational Programs/Internships 5 Partnered with COD, RMHS, and LQHS Local Palm Desert
Business/Retailer/Chef Participation
30 El Paseo activation, marketplace, grand tasting
event
Workforce Development 60 Temporary staff hired from local staffing agencies.

Community/Non-Profit Partnerships 12 Hotels, El Paseo, non-profits, other businesses Analysis
Cost Review
The proposed agreement establishes an annual sponsorship amount up to $450,000. During the agreement term, Palm Springs Life and the City will continue to evaluate opportunities to reduce event production and overhead costs without materially changing event programming.

Palm Springs Life has previously incorporated cost efficiencies into event planning and operations. For example, the producer reduced the number of Fashion Week runway shows, reducing production costs and the number of venue conversions required to accommodate overlapping Fashion Week El Paseo and Palm Desert Food & Wine programming. Palm Springs Life will continue to evaluate event schedules, vendor contracts, production requirements, and other operating expenses for potential efficiencies. 255

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City staff is separately evaluating event-related overhead costs. The proposed sponsorship amount includes an estimated $20,000 in annual public safety costs: $12,000 for Fashion Week and $8,000 for Palm Desert Food & Wine. The Riverside County Sheriff's Office confirmed that the current staffing is the minimum it recommends based on event attendance, alcohol service, site configuration, and pedestrian and traffic-control requirements. Staff therefore does not anticipate a reduction in these costs for the 2027 events.

Staff also reviewed the fee for use of The Gardens on El Paseo. The current venue arrangement does not allow a reduction for the 2027 events, but staff will evaluate options for subsequent years. If City efforts reduce event overhead costs supported by the sponsorship, the annual sponsorship amount will decrease by the same amount. The agreement provides no automatic annual increase.

Sponsorship Deliverables and Performance Measures
Naming
 Palm Desert will be integrated into the event logo for Food & Wine. This is the most prominent branding position. Event name: Palm Desert Food & Wine.  El Paseo will be integrated into the event logo for Fashion Week. Event name: Fashion Week El Paseo.
 Palm Desert name and logo will be included in sponsor recognition for Fashion Week El Paseo, Palm Desert Food & Wine, and Design Summit Palm Desert.  Palm Desert will be incorporated into the event name and branding for Design Summit Palm Desert.

Public Relations
 City of Palm Desert name will be included in public relations efforts for Fashion Week El Paseo, Palm Desert Food & Wine, and Design Summit Palm Desert.  City of Palm Desert will be included in applicable talent and participant PR/Marketing kits. Kits will instruct designers, models, chefs, speakers, presenters, and other programming partners to mention, tag, and promote the City of Palm Desert, as applicable.
 One press party leading up to Fashion Week El Paseo and/or Palm Desert Food & Wine.
 Mayor letter in the Fashion Week program that is bound into 20,000 copies of March Palm Springs Life and an overrun of 10,000 copies distributed at Fashion Week El Paseo and at Palm Desert Food & Wine, visitors’ centers, El Paseo merchants, and high-traffic locations throughout the Coachella Valley.

Marketing
Palm Springs Life shall meet with City staff at least 150 days before the launch of the primary event marketing campaigns to review the media plans for Fashion Week El Paseo, Palm Desert Food & Wine, and Design Summit Palm Desert, target markets, destination messaging, City branding, and opportunities to coordinate with the City's tourism marketing efforts.

Specific media channels, placements, quantities, and schedules may be adjusted annually by mutual written agreement between PSL and the City to reflect changes in media consumption, availability, and the City's tourism marketing priorities, without reducing the overall scope of the 256

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sponsorship benefits. Where applicable, link to www.DiscoverPalmDesert.com (or a URL of the City’s choosing).

Local Business Outreach
 Palm Springs Life shall participate in at least three outreach events annually to invite all eligible El Paseo businesses to participate in in-store activations and other activation opportunities free of cost.
 Palm Springs Life shall secure participation from at least 30 unique El Paseo businesses and coordinate and promote no fewer than 100 in-store or other qualifying business activations annually.
 Promote participating activations through the Fashion Week schedule and available marketing channels such as event website, event program, press efforts, and printed marketing collateral.
 Produce an El Paseo dedicated Fashion Show with at least 10 El Paseo merchants.  Seek Palm Desert restaurants as reception partners during Fashion Week El Paseo.  Secure participation from a minimum of 10 Palm Desert restaurants in official Palm Desert Food & Wine programming, including the Grand Tasting and restaurant-hosted events held in conjunction with the festival.
 Palm Springs Life shall conduct outreach to Palm Desert businesses and organizations regarding opportunities to participate in Design Summit Palm Desert, including businesses and organizations in the design, architecture, art, landscape, home furnishings, real estate, hospitality, retail, and related sectors.  Design Summit participation opportunities may include showroom programs, exhibitions, receptions, demonstrations, tours, presentations, and other event or satellite programming.

Student Engagement
Palm Springs Life shall provide the Fashion Week El Paseo student program at no cost to participating students. The program shall include:
 Outreach to the Coachella Valley Unified School District, Desert Sands Unified School District, and Palm Springs Unified School District;
 Program capacity for at least 550 students annually;
 A behind-the-scenes educational tour;
 Access to a runway rehearsal or presentation;
 A student activation or educational session; and
 Admission to a Fashion Week El Paseo runway show.

Palm Springs Life shall also provide no-cost culinary education and event-participation opportunities through Palm Desert Food & Wine. Palm Springs Life shall conduct documented outreach to College of the Desert, La Quinta High School, and other appropriate regional culinary programs and shall provide program capacity for at least 45 culinary students annually.
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On-Site
 City of Palm Desert welcome signage will be displayed at the entrance and inside the Fashion Week El Paseo and Palm Desert Food & Wine event venues. Signage shall be produced and installed by Palm Springs Life.
 City of Palm Desert logo in premium position on the step and repeat of Fashion Week El Paseo and Palm Desert Food & Wine.
 City of Palm Desert logo on the sponsor signs at the entrance to the events.  A City-provided destination video of up to 30 seconds will be displayed before each Fashion Week El Paseo runway show and Palm Desert Food & Wine event held in a large tent.
 City of Palm Desert logo displayed on all video screens every day of Fashion Week El Paseo and Palm Desert Food & Wine.
 City of Palm Desert logo on all Fashion Week El Paseo and Palm Desert Food & Wine event programs distributed to all attendees.
 City of Palm Desert logo and name on the Schedule of Events brochures.  City of Palm Desert name and logo will receive sponsor recognition at Design Summit Palm Desert through applicable event signage, video displays, printed or digital event materials, and other on-site sponsor recognition.
 A City-provided destination video of up to 30 seconds will be displayed during applicable Design Summit Palm Desert programming where video presentation capabilities are available.

Hospitality
• Ten (10) second row seats to Fashion Week El Paseo for each runway show with access to VIP lounge. Names must be provided for each show. • Sixteen (16) reserved seats to Fashion Week El Paseo for each runway show with VIP lounge access. For clarity, these seats are in addition to the 10 second-row seats, resulting in a total of 26 City seats for each runway show. • Four (4) reserved tickets to the James Beard Luncheon. • Ten (10) tickets to the Celebrity Chef Reception.
• Four (4) reserved tickets to Sunday Brunch.
• Twenty (20) tickets to Saturday Grand Tasting with access to VIP lounge. • Twenty (20) tickets to Sunday Grand Tasting with access to VIP lounge.

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 Survey results, including the survey instrument, collection method, sample size, number of completed responses, response rate, and applicable statistical limitations;  Marketing and media delivery, separated by paid, earned, owned, and social media;  Fulfillment of each City sponsorship benefit;
 The number of unique El Paseo and other Palm Desert businesses participating;  The number and type of business activations conducted;  Palm Desert restaurant participation, reported separately from restaurants, chefs, vendors, and businesses located outside Palm Desert;
 Student program capacity, outreach, registration, actual participation, participating schools, and programming provided;
 Community and nonprofit participation, reported separately from schools, students, businesses, and workforce participation;
 Reported economic impact and media or promotional value, including the supporting methodology and assumptions;
 Design Summit Palm Desert attendance, programming, participating Palm Desert businesses and organizations, and use of shared event infrastructure, as applicable;  Digital referrals, website traffic, conversions, and other measurable campaign activity; and
 Other performance information mutually agreed upon by Palm Springs Life and the City before the applicable events.

The report will identify the methodology, disclose material changes to methodology, data sources, economic-impact assumptions, or media-value calculations from prior years and explain how those changes affect year-over-year comparisons, and provide available yearover-year comparisons. Supporting examples of City sponsorship recognition will be included.

Palm Springs Life shall collect and maintain the information necessary to report all metrics expressly required by the agreement. A required metric may not be omitted solely because it is not collected as part of Palm Springs Life’s ordinary event operations.

Enhanced Sponsorship Benefits
Enhancement Proposed Agreement
Additional Event
Adds Design Summit Palm Desert beginning in 2027 within the annual sponsorship amount, including City branding, tourism marketing coordination, local business participation opportunities, and post-event reporting.

Tourism
Marketing
Adds annual coordination with City staff regarding target markets, destination messaging, media planning, and digital links to City tourism resources.
259

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Enhancement Proposed Agreement
Local Business
Participation
Establishes minimum outreach, business participation, activation, El Paseo runway, and Palm Desert restaurant requirements.

Student
Engagement
Establishes defined Fashion Week and culinary student programs, outreach requirements, and minimum program capacity.

Performance
Reporting
Establishes detailed annual reporting requirements for attendance, visitor composition, marketing, business and student participation, economic impact, sponsorship fulfillment, methodology, and available digital performance.

Multi-Year Sponsorship Framework
The multi-year structure reflects the City's intent to maintain a long-term relationship with Fashion Week El Paseo, Palm Desert Food & Wine, and Design Summit Palm Desert. The agreement establishes a maximum annual City sponsorship of $450,000, subject to annual appropriation, satisfactory performance, and the cost reductions described above. The agreement does not provide for an automatic increase in the City's annual sponsorship. Any request above $450,000 would require separate City Council approval.

Environmental Review
Approval of the sponsorship agreement is not subject to CEQA pursuant to CEQA Guidelines Sections 15060(c) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and does not constitute a project as defined in Section 15378. The action is limited to providing sponsorship funding for events and does not authorize construction, physical improvements, or other physical changes to the environment.

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

Financial Impact
The proposed agreement authorizes annual sponsorship funding of up to $450,000. The maximum authorization totals $1.35 million for the initial three-year term and $2.7 million if all three optional one-year extensions are exercised at the maximum annual amount. These amounts represent maximum authorizations and do not constitute appropriations for future fiscal years. Actual annual sponsorship amounts are subject to appropriation and may be reduced based on event-related cost reductions identified during the agreement term, as described above.

The maximum potential sponsorship authorization of the agreement is summarized below:

Term Annual
Sponsorship
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FY 2026/27 $450,000
FY 2027/28 $450,000
FY 2028/29 $450,000
Initial three-year term $1,350,000
Optional 1-Year Extension – FY
2029/30
$450,000
Optional 1-Year Extension – FY
2030/31
$450,000
Optional 1-Year Extension – FY
2031/32
$450,000
Potential six-year total $2,700,000
The adopted Fiscal Year 2026/27 Annual Budget includes $400,000 in Sponsored Events Account No. 1104800-4306201 that may be used for the sponsorship. An additional appropriation of $50,000 from Undesignated General Fund Balance is necessary to fully fund the maximum $450,000 sponsorship amount for this fiscal year. 261

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FY 2026-27 General Fund Reserve Impact Summary Amount
Estimated Beginning Fund Balance $128,187,317
Less: Required /Policy Reserve $(83,998,134)
Remaining Undesignated General Fund Reserve (UGFR) $44,189,183 Less: Prior FY 2026-27 Council Appropriations $(1,206,372) Less: Current Request $(50,000)
Est. Available (UGFR) After this Request $42,932,811
In kind support for the annual events include City permit fee waivers estimated at $425, Citizens on Patrol assistance for traffic and crowd control, as well as staff time for the Special Events Coordinator to assist with logistics and permitting.

Funding for subsequent fiscal years will be incorporated into the City's annual budget process and will be contingent on available resources. Each optional extension will also be subject to satisfactory performance and mutual written agreement. Any request for annual City sponsorship above $450,000 would require separate City Council approval.

Attachments

1. Sponsorship Agreement with Desert Publications, Inc., d.b.a. Palm Springs Life

2. May 28, 2026, Council Meeting Staff Report
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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 Gardens on El Paseo, 73545 El Paseo, Palm Desert Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).

2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☒ Yes
☐ No
If yes, identify the party: Desert Publications, Inc., d.b.a. Palm Springs Life 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). 263
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SPONSORSHIP AGREEMENT
This Sponsorship Agreement (“Agreement”) is entered into this October 8, 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 Publications, Inc., a Corporation with its principal place of business at 303 North Indian Canyon Drive, Palm Springs, California 92262 (“Recipient”). The City and Recipient are sometimes collectively referred to in this Agreement as the “Parties” and individually referred to as “Party.” The Agreement is made in light of the following Recitals:

RECITALS
WHEREAS, Recipient produces Fashion Week El Paseo and Palm Desert Food & Wine and plans to introduce Design Summit Palm Desert in 2027 (collectively, the “Events”); and
WHEREAS, the City desires to provide sponsorship funding to Recipient for the Events in exchange for the sponsorship benefits and performance requirements set forth in this Agreement; and
WHEREAS on October 8, 2026, City Council approved the award of this Agreement to the Recipient;
NOW, THEREFORE, in consideration of the mutual promises set forth herein, and in light of the above Recitals, which are hereby made a part of this Agreement, the Parties hereby agree as follows:

AGREEMENT

1. Term: The term of this Agreement shall commence on October 8, 2026, and shall continue through June 30, 2029, unless earlier terminated in accordance with this Agreement. By mutual written agreement, the City Manager and Recipient may extend the Agreement for up to three additional one-year terms. Each extension shall be subject to annual appropriation, satisfactory performance by Recipient, and an annual sponsorship amount not to exceed $450,000.

2. Responsibilities of the Parties:

2.1Responsibilities of City:

2.1.1 City shall provide sponsorship funding for the Events in accordance with the compensation provisions of this Agreement and Exhibit “B.” 265
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2.2Responsibilities of Recipient:

2.2.1 Recipient shall produce Fashion Week El Paseo, Palm Desert Food & Wine, and Design Summit Palm Desert during each applicable year of the Agreement term.

2.2.2 Recipient shall provide the sponsorship benefits and satisfy the performance requirements set forth in Exhibit “A,” attached hereto and incorporated herein by this reference.

3. Compensation: For Recipient's performance of the services and fulfillment of the sponsorship benefits and performance requirements under this Agreement, the City shall provide Recipient annual sponsorship funding in an amount not to exceed FOUR HUNDRED FIFTY THOUSAND DOLLARS AND ZERO CENTS ($450,000.00), subject to annual appropriation as outlined in Exhibit “B.” The actual sponsorship amount for each year shall be determined in accordance with this Agreement and Exhibit “B.”

4. Cost Review: During the term of this Agreement, Recipient and City shall continue to evaluate opportunities to reduce event production and overhead costs without materially changing event programming. Recipient shall continue to evaluate event schedules, vendor contracts, production requirements, and other operating expenses for potential efficiencies. City shall separately evaluate event-related overhead costs supported by the sponsorship. If City efforts result in a reduction of such event-related overhead costs, the annual sponsorship amount shall be reduced by an equivalent amount. The Agreement does not provide for an automatic annual increase in the sponsorship amount.

5. Remedies and Termination:

5.1Remedies: The Parties agree to provide each other with written notice of nonperformance, unsatisfactory performance, or any other dispute arising from the terms of this Agreement within ten (10) days of the deficiency or dispute being identified. The Parties shall have thirty (30) days from receipt of said written notice to correct any performance deficiencies. The Parties may mutually agree to extend the thirty (30) day cure period. The Parties agree to cooperate in good faith to resolve any performance issues or dispute arising from this Agreement. Either Party in its sole and absolute discretion may waive a default that cannot be cured.
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5.2Termination: In the event any dispute cannot be resolved under these procedures, each Party retains such legal and equitable remedies as it may have under the law to enforce this Agreement. If either Party defaults under this Agreement and does not timely cure such default, the non-defaulting Party may terminate this Agreement upon providing written notice of termination of this Agreement to the defaulting Party, in which case this Agreement shall terminate.

5.3Termination without cause: Either Party may terminate this Agreement upon at least thirty (30) days prior written notice to the other Party. If Recipient terminates this Agreement, pursuant to this Section 5.3, the City shall be entitled to a pro rata refund of any prepaid amounts.

6. Insurance: Without limiting Recipient’s indemnification of City, and prior to commencement of Work, Recipient 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.

6.1General Liability Insurance: Recipient shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

6.2Automobile Liability Insurance: Recipient 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 Recipient arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manager may modify this requirement if it is determined that Recipient will not be utilizing a vehicle in the performance of its obligations under this Agreement.

6.3Workers’ Compensation Insurance: Recipient shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Recipient shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers, officials, agents, employees, volunteers and representatives.
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6.4Umbrella or Excess Liability Insurance: Recipient may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Recipient shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
(1) 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; (2) Pay on behalf of wording as opposed to reimbursement. (3) Concurrency of effective dates with primary policies; and (4) Policies shall “follow form” to the underlying primary policies. (5) Insureds under primary policies shall also be insureds under the umbrella or excess policies.

6.5Liquor Liability Insurance: Recipient shall provide liquor liability insurance with a limit of no less than $1,000,000 per occurrence.

6.6Aviation Liability Insurance: Recipient shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damage to property which may arise from or in connection with the ownership, maintenance or use of Unmanned Aerial Vehicles (UAVs) by Recipient’s officers, officials, employees, subcontractors, volunteers, or representatives. If an UAV is used as part of an event, aviation liability insurance shall be required on an “occurrence” basis, including property damage and bodily injury with limits no less than $1,000,000 per occurrence, and $2,000,000 in the aggregate. This coverage may also be provided by endorsement to a Commercial General Liability policy. City shall be named additional insured on the policy.

6.7Proof of Insurance: Recipient 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.
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6.8Duration of Coverage: Recipient 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 Recipient, its agents, representatives, employees or subcontractors.

6.9Primary/Non-Contributing: Coverage provided by Recipient shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

6.10 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 Recipient, or City will withhold amounts sufficient to pay premium from Recipient payments. In the alternative, City may cancel this Agreement.

6.11 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.

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

6.13 Enforcement of Contract Provisions (non estoppel): Recipient acknowledges and agrees that any actual or alleged failure on the part of the 269
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City to inform Recipient of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.

6.14 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 Recipient maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Recipient. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

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

6.16 Additional Insured Status: General liability, automobile liability, and if applicable, liquor liability, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City of Palm Desert and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

6.17 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.

6.18 Separation of Insureds: A severability of interests provision must apply for all additional insureds ensuring that Recipient’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.

6.19 Pass Through Clause: Recipient agrees to ensure that its sub-contractors, and any other party involved with the project who is brought onto or involved in the project by Recipient, provide the same minimum insurance coverage and endorsements required of Recipient. Recipient agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. 270
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Recipient agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.

6.20 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 Recipient ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Recipient, the City and Recipient may renegotiate Recipient’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice.

6.21 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.

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

6.23 Additional Insurance: Recipient 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.

6.24 Safety: Recipient shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Recipient 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.

7. Indemnification: To the fullest extent permitted by law, Recipient shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and 271
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all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Recipient, its officials, officers, employees, subconsultants or agents in connection with the performance of the Recipient’s services or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Recipient's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Recipient, the City, its officials, officers, employees, agents, or volunteers.

8. Prevailing Wages. Recipient 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 under this Agreement 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 $1,000 or more, Recipient agrees to fully comply with such Prevailing Wage Laws. City shall provide Recipient with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Recipient 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 Recipient's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Recipient shall therefore comply with such Labor Code sections to the fullest extent required by law. Recipient shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

9. Force Majeure: Any delay or failure in the performance by either Party hereunder shall be excused if and to the extent caused by occurrence of a Force Majeure Event. A Force Majeure Event shall mean a cause or event that is beyond the reasonable control of the Party claiming a Force Majeure Event.

Force Majeure Events include, but are not limited to, acts of God, fires, floods, rain, heavy wind, earthquake, explosions, riots, wars, sabotage, terrorism, vandalism, accident, restraint of government, governmental act, injunctions, destruction of site, pandemics, epidemics, and other like events. In the event City has advanced funds for the sponsorship to the extent not utilized directly for the event, any unused portion shall be returned.
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10.Notices: Whenever it shall be necessary for either Party to serve notice on the other regarding this Agreement, such notice shall be served either in person, by certified mail, return receipt requested to the addresses below.

Recipient: Desert Publications Inc
303 N. Indian Canyon Drive
Palm Springs, CA 92262
ATTN: Frank Jones, President
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
ATTN: Shelby Goodwin, Special Events
Coordinator
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.

11.Legal Costs: In the event of any legal action between the City and Recipient arising out of the obligations of the Parties pursuant to this Agreement, the prevailing Party will be entitled to payment of its costs and expenses, including its reasonable attorneys' fees.

12.Binding Effect; Successors: Neither Party shall assign or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the other Party, which may be given in such Party's sole and absolute discretion. Any attempt to do so shall be null and void, and any assignees or transferees shall acquire no right or interest by reason of such attempted assignment or transfer. This Agreement shall bind and inure to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns and all of the Parties thereto shall be jointly and severally liable hereunder.

13.Counterparts: This Agreement may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument which shall be binding upon the Parties notwithstanding that the Parties may not be signatories to the same counterpart or counterparts. The Parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart.
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14.Further Assurances: Whenever requested to do so by the other Party, each Party shall execute, acknowledge, and deliver any further conveyances, assignments, confirmations, satisfactions, releases, powers of attorney, instruments of further assurance, approvals, consents, and any documents that are necessary, expedient, or proper to complete anything contemplated by this Agreement. In addition, each Party shall do any other acts and execute, acknowledge, and deliver any requested documents in order to carry out the intent and purpose of this Agreement.

15.Modifications: All modifications to this Agreement must be in writing and signed by the Parties.

16.Third-Party Rights: Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies.

17.Governing Law; Choice of Venue: This Agreement shall be governed and construed in accordance with California law, including the Fair Political Practices Act of 1974. Venue shall be in Riverside County, California.

18.Severability: If any provision of this Agreement becomes or is declared by a court to be illegal, unenforceable or void, that clause will be omitted, and the remainder of the Agreement will continue in full force and effect. Such holding shall in no way affect the validity or enforceability of this Agreement.

19.Entire Agreement: This Agreement is the entire agreement between the Parties and supersedes any prior or contemporaneous representations, understandings, or agreements, whether written or oral. [SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE TO SPONSORSHIP AGREEMENT

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

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

Office Use:

Quality Check Insurance
City Clerk Contracts Initial Review Final Review

CITY OF PALM DESERT
_________________________________
Chris Escobedo
City Manager
ATTEST:
_________________________________
Anthony J. Mejia
City Clerk
APPROVED AS TO FORM:
_________________________________
Isra Shah
City Attorney
DESERT PUBLICATIONS, INC., A

CORPORATION
______________________________
Frank Jones
President
______________________________
Sheldon Real
Chief Financial Officer

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276
CONTRACT NO._____________
Exhibit “A”
EXHIBIT "A"

SPONSORSHIP BENEFITS
Naming
 Palm Desert will be integrated into the event logo for Palm Desert Food & Wine.

This is the most prominent branding position. Event name: Palm Desert Food & Wine.
 El Paseo will be integrated into the event logo for Fashion Week El Paseo. Event name: Fashion Week El Paseo.
 Palm Desert name and logo will be included in sponsor recognition for Fashion Week El Paseo, Palm Desert Food & Wine, and Design Summit Palm Desert.  Palm Desert will be incorporated into the event name and branding for Design Summit Palm Desert.

Specific media channels, placements, quantities, and schedules may be adjusted annually by mutual written agreement between Palm Springs Life and the City to reflect changes in media consumption, availability, and the City's tourism marketing priorities, without reducing the overall scope of the sponsorship benefits. Where applicable, marketing materials shall link to www.DiscoverPalmDesert.com or another URL designated by the City.

Local Business Outreach
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Exhibit “A”
 Palm Springs Life shall participate in at least three outreach events annually to invite all eligible El Paseo businesses to participate in in-store activations and other activation opportunities at no cost.
 Palm Springs Life shall secure participation from at least 30 unique El Paseo businesses and coordinate and promote no fewer than 100 in-store or other qualifying business activations annually.
 Palm Springs Life shall promote participating activations through the Fashion Week El Paseo schedule and available marketing channels, including the event website, event program, press efforts, and printed marketing collateral.  Palm Springs Life shall produce an El Paseo-dedicated Fashion Show featuring at least 10 El Paseo merchants.
 Palm Springs Life shall seek Palm Desert restaurants as reception partners during Fashion Week El Paseo.
 Palm Springs Life shall secure participation from a minimum of 10 Palm Desert restaurants in official Palm Desert Food & Wine programming, including the Grand Tasting and restaurant-hosted events held in conjunction with the festival.  Palm Springs Life shall conduct outreach to Palm Desert businesses and organizations regarding opportunities to participate in Design Summit Palm Desert, including businesses and organizations in the design, architecture, art, landscape, home furnishings, real estate, hospitality, retail, and related sectors.  Design Summit Palm Desert participation opportunities may include showroom programs, exhibitions, receptions, demonstrations, tours, presentations, and other event or satellite programming.

Student Engagement
Palm Springs Life shall provide the Fashion Week El Paseo student program at no cost to participating students. The program shall include:
 Outreach to the Coachella Valley Unified School District, Desert Sands Unified School District, and Palm Springs Unified School District;  Program capacity for at least 550 students annually;
 A behind-the-scenes educational tour;
 Access to a runway rehearsal or presentation;
 A student activation or educational session; and
 Admission to a Fashion Week El Paseo runway show.

On-Site
 City of Palm Desert welcome signage will be displayed at the entrance and inside the Fashion Week El Paseo and Palm Desert Food & Wine event venues. Signage shall be produced and installed by Palm Springs Life.
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Exhibit “A”
 City of Palm Desert logo in premium position on the step and repeat of Fashion Week El Paseo and Palm Desert Food & Wine.
 City of Palm Desert logo on the sponsor signs at the entrance to the events.  City of Palm Desert 30 second video to play before every Fashion Show and Food & Wine events hosted in large tents.
 City of Palm Desert logo displayed on all video screens every day of Fashion Week El Paseo and Palm Desert Food & Wine.
 City of Palm Desert logo on all Fashion Week El Paseo and Palm Desert Food & Wine event programs distributed to all attendees.
 City of Palm Desert logo and name on the Schedule of Events brochures.  City of Palm Desert name and logo will receive sponsor recognition at Design Summit Palm Desert through applicable event signage, video displays, printed or digital event materials, and other on-site sponsor recognition.  A City-provided destination video of up to 30 seconds will be displayed during applicable Design Summit Palm Desert programming where video presentation capabilities are available.

Post-Event Reporting
No later than 120 calendar days after completion of the final event covered by the annual sponsorship, to allow time to collect post-event media and survey reports, Palm Springs Life shall provide the City with a post-event report addressing each sponsored event, as applicable, that includes:
• Verified attendance and visitor composition for each event; • Paid and complimentary attendance, reported separately; • Survey results, including the survey instrument, collection method, sample size, number of completed responses, response rate, and applicable statistical limitations;
• Marketing and media delivery, separated by paid, earned, owned, and social media;
• Fulfillment of each City sponsorship benefit;
• The number of unique El Paseo and other Palm Desert businesses participating; • The number and type of business activations conducted; 279
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Exhibit “A”
• Palm Desert restaurant participation, reported separately from restaurants, chefs, vendors, and businesses located outside Palm Desert;
• Student program capacity, outreach, registration, actual participation, participating schools, and programming provided;
• Community and nonprofit participation, reported separately from schools, students, businesses, and workforce participation;
• Reported economic impact and media or promotional value, including the supporting methodology and assumptions;
• Design Summit Palm Desert attendance, programming, participating Palm Desert businesses and organizations, and use of shared event infrastructure, as applicable;
• Digital referrals, website traffic, conversions, and other measurable campaign activity; and
• Other performance information mutually agreed upon by Palm Springs Life and the City before the applicable events.

The report shall identify the methodology, disclose material changes to methodology, data sources, economic-impact assumptions, or media-value calculations from prior years, explain how those changes affect year-over-year comparisons, and provide available year-over-year comparisons. Supporting examples of City sponsorship recognition shall be included.

Palm Springs Life shall collect and maintain the information necessary to report all metrics expressly required by this Agreement. A required metric may not be omitted solely because it is not collected as part of Palm Springs Life's ordinary event operations. 280
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Exhibit “B”
EXHIBIT "B"

COMPENSATION
Subject to annual appropriation and the terms of this Agreement, an annual sponsorship payment in an amount not to exceed FOUR HUNDRED FIFTY THOUSAND DOLLARS AND ZERO CENTS ($450,000.00) shall be paid on or before January 1 of each year in 2027, 2028, and 2029.

The actual annual sponsorship amount shall reflect any applicable reductions pursuant to Section 4 (Cost Review) of this Agreement.

Payment shall be made according to the following schedule:

Year Maximum Sponsorship
Amount Payment Date
2027 $450,000 On or before January 1, 2027
2028 $450,000 On or before January 1, 2028
2029 $450,000 On or before January 1, 2029
Prior to issuance of each sponsorship payment, Recipient shall submit all insurance documents required under this Agreement, and such documents must be reviewed and approved by the City.

For any extension term authorized pursuant to this Agreement, the annual sponsorship amount shall not exceed $450,000 and shall be subject to annual appropriation, satisfactory performance, mutual written agreement, and any applicable reductions pursuant to Section 4 (Cost Review) of this Agreement.
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City of Palm Desert Staff Report
Meeting Date: May 28, 2026
Prepared By: Thomas Soule, Marketing & Tourism Manager
Department: Economic Development
Subject: Receive and file a recap of the 2026 Fashion Week El Paseo and Palm Desert Food and Wine Festival events and provide direction regarding a future sponsorship agreement with Palm Springs Life
Recommendation

1. Receive and file the 2026 event recap for Fashion Week El Paseo and the Palm Desert Food and Wine Festival.

2. Provide direction regarding a potential future sponsorship agreement with Desert Publications, Inc., d.b.a. Palm Springs Life.

3. Direct staff to return with any necessary agreement and appropriation actions for future City Council consideration.

Background/Analysis
On September 14, 2023, the City Council approved a three-year Sponsorship Agreement No.

C46280 with Desert Publications, Inc., d.b.a. Palm Springs Life, in the amount of $300,000 annually for Fashion Week El Paseo and the Palm Desert Food and Wine Festival. The current agreement expires June 30, 2026.

Fashion Week El Paseo began in 2006 and includes runway shows, in-store activations, and related programming throughout the El Paseo shopping district.

The Palm Desert Food and Wine Festival began in 2010 and includes culinary events, chef demonstrations, and tasting experiences held over multiple days.

Both events are produced annually by Palm Springs Life in Palm Desert at The Gardens on El Paseo.

Palm Springs Life has indicated interest in discussing a future sponsorship agreement for the events beginning in Fiscal Year 2026/27. Staff requested that Palm Springs Life provide an overview of the events, current operations, future event programming, and information regarding a potential future sponsorship agreement as part of this presentation and discussion item.
2026 Event Overview
The following information summarizes event performance metrics reported by Palm Springs Life for the 2024 through 2026 event periods and is provided for comparative reference.

Fashion Week El Paseo
For Fashion Week El Paseo, attendance declined gradually between 2024 and 2026, while economic impact rebounded strongly in 2026 to its highest level during the three-year period. 283

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Media value and impressions remained relatively stable overall. Out-of-market attendance fluctuated, indicating changes in the proportion of visitors traveling from outside the region. In 2026, the event included 21 ticketed or free events and 161 in-store events produced by 23 El Paseo retailers in 2026.

METRIC 2024 2025 2026
ATTENDANCE 7,470 6,824 6,403

OUT-OF-MARKET

ATTENDANCE
53% 61% 42%
ECONOMIC IMPACT $2,063,139 $1,230,822 $2,272,809

MEDIA & PROMOTIONAL
VALUE
$1,464,265 $1,321,857 $1,434,619
IMPRESSIONS 17,532,662 16,211,184 17,024,746
Palm Desert Food and Wine Festival
For the Palm Desert Food and Wine Festival, attendance increased in 2025 before declining in 2026. Despite lower attendance in 2026, the percentage of out-of-market visitors continued to increase, suggesting the event maintains strong destination appeal. Economic impact and media value fluctuated but remained generally consistent over the three-year period.

METRIC 2024 2025 2026
ATTENDANCE 6,492 7,102 4,595

OUT-OF-MARKET

ATTENDANCE
57% 62% 68%
ECONOMIC IMPACT $1,935,330 $2,252,257 $1,912,255

MEDIA & PROMOTIONAL
VALUE
$1,599,166 $1,114,492 $1,299,960
IMPRESSIONS 20,773,916 16,345,198 16,985,453
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Sponsorship Considerations
The proposed Fiscal Year 2026/27 Annual Budget currently includes $300,000 for sponsorship support associated with these events, consistent with the existing agreement amount.

Based on City Council direction and discussions with Palm Springs Life, staff would return at a later date with any proposed sponsorship agreement and associated appropriations (if needed) for City Council consideration.

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

Financial Impact
No immediate fiscal impact is associated with the requested action. The proposed Fiscal Year 2026/27 Annual Budget includes $300,000 for sponsorship support associated with Fashion Week El Paseo and the Palm Desert Food and Wine Festival in . Any future sponsorship agreement and associated appropriations (if needed) would be presented to the City Council for consideration at a later date.

Attachments

1. Fashion Week El Paseo 2026 Recap

2. Palm Desert Food & Wine 2026 Recap

3. Palm Springs Life Event Partnership Vision
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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 Gardens on El Paseo, 73545 El Paso, Palm Desert, CA
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).

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City of Palm Desert Staff Report
Meeting Date: October 8, 2026
Prepared By: Mariela Salazar, Management Analyst
Cesar Lopez, Senior Engineer
Department: Economic Development
Subject: Dedication of approximately 1,883 square feet of the City-owned Ocotillo Site at 45330 Ocotillo Drive (APN 627-232-005) for public street and right-of-way purposes Recommendation

1. Adopt a resolution entitled “A Resolution of the City Council of the City of Palm Desert, California, Authorizing the Dedication and Acceptance of the Dedication of Public Street and Right-of-Way, and Finding the Same Exempt from CEQA.”

2. Authorize the City Manager, or designee, to execute the dedication instrument, certificates, and related documents necessary to complete and record the dedication, subject to approval as to form by the City Attorney.

3. Find that the dedication and recordation are not a project under the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines sections 15060(c)(3) and 15378(b)(5), because the action does not authorize construction or a physical improvement.

Executive Summary
The City owns the 0.53-acre Ocotillo Site, located at 45330 Ocotillo Drive at the northeast corner of Ocotillo Drive and Tumbleweed Lane. Staff recommends that the City Council adopt a resolution dedicating approximately 1,883 square feet of the site for public street improvement and right-of-way purposes.

The dedication generally consists of a 10-foot-wide strip of land along the Tumbleweed Lane frontage and the corner return at Ocotillo Drive. Recording the dedication now preserves land that may be needed for future street, sidewalk, accessibility, drainage, utility, streetscape, and access improvements; establishes the net site area before any future disposition or development; and avoids the potential cost and delay of reserving or reacquiring the frontage later.

This action does not approve a sale, lease, development project, capital improvement, or construction. Any future disposition or physical improvement would require separate review and approval.
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Background
The former Palm Desert Redevelopment Agency acquired the 0.53-acre property in 2008 for $1.5 million as part of a redevelopment effort that included clearing the 12-unit Adobe Villas apartment complex and creating public parking to support the adjacent commercial district.

Following the dissolution of redevelopment agencies, the Successor Agency’s Long-Range Property Management Plan designated the site as Property No. 4, Adobe Villas/Public Parking, for governmental use and transfer to the City. The California Department of Finance approved the plan in 2014. Fidelity National Title Company’s January 2026 preliminary title report identifies the City as the current fee owner.

The apartment complex was demolished in 2014, following plan approval. The anticipated parking lot was not constructed, and the property remains vacant.

A 2018 ALTA/NSPS survey identifies the property as containing approximately 23,088 square feet, or 0.53 acres. The title report discloses existing utility and pipeline easements but no open deeds of trust.

On January 22, 2026, TKE Engineering, Inc. prepared the legal description and accompanying survey plat identifying the location, dimensions, and boundaries of the proposed dedication area. The dedication generally consists of a 10-foot-wide strip of land along Tumbleweed Lane and the corner return at Ocotillo Drive. The surveyor-prepared legal description and plat will control the final location and dimensions.

Analysis
Purpose and Timing
The dedication would preserve the frontage and corner area for future public improvements like, street, sidewalk, accessibility, drainage, utility, streetscape, and access improvements.

Completing the dedication now prepares the property for future development, eliminating the need to reserve the area in transaction documents or acquire it from a subsequent owner.

City ownership allows the dedication to proceed without acquisition costs or compensation to a third party. Dedication does not create a new parcel or approve the design, funding, or construction of an improvement.

Effect on the Remaining Site
The City’s 2022 Central Inventory lists the parcel at 23,156 square feet, a 68-square-foot difference from the survey. The recorded legal description and plat will establish the right-ofway boundary, and future property documents should use the resulting net site area.

Item Summary
Survey Area 23,088 sq. ft.

Proposed Dedication Approximately 1,883 sq. ft. (8.2%)
Remaining Net Site Area Approximately 21,205 sq. ft. (0.49 acres) 2022 Central Inventory 23,156 sq. ft.

Area Difference 68 sq. ft. between the inventory and current survey 288

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Controlling Area The recorded legal description and plat will establish the final right-ofway boundary and net site area.

The dedication will not change the existing Downtown-Edge Overlay zoning or the Downtown General Plan designation of the remaining property or grant a development entitlement. Any future sale, lease, or development will require separate City Council action and compliance with the Surplus Land Act and other applicable requirements. The recorded right-of-way will remain unless it is later vacated through a separate legal process.

Recordation and Implementation
Before recordation, Public Works, the City Surveyor, the City Attorney, and the title company will confirm that the dedication instrument and exhibits are consistent with the title record and applicable recorded easements. After execution, staff will submit the documents to the Riverside County Recorder and update the City's property inventory and mapping records.

Environmental Review
Approval and recordation of the dedication do not authorize or fund construction or commit the City to a development plan. Staff recommends that the City Council find the action is not a project under State CEQA Guidelines sections 15060(c)(3) and 15378(b)(5). Any future physical improvement will require separate approval and environmental review, as applicable.

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

Financial Impact
No additional appropriation is requested. Costs associated with document preparation, title services, and recording will be paid from existing department operational budgets. Approval of this dedication will not authorize any capital improvements or create new maintenance obligations. Any future construction or operating costs will be evaluated through the City’s capital planning and annual budget process.

Attachments

1. Draft Resolution – Right-of-Way Dedication

2. Right-of-Way Dedication – Exhibits A and B

3. Preliminary Title Report – APN 627-232-005

4. ALTA/NSPS Land Title Survey – 45330 Ocotillo Drive
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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: 45330 Ocotillo Drive (APN 627-232-005) 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). 290
72500.00970\45473740.1
Resolution No. 2026-____
A Resolution of the City Council of the City of Palm Desert, California, Authorizing the Dedication and Acceptance of the Dedication of Public Street and Right-of-Way, and Finding the Same Exempt from CEQA Whereas, the City of Palm Desert (“City”) owns that certain real property located at 45330 Ocotillo Drive, Palm Desert, California (APN 627-232-005) (the “Property”); and
Whereas, the City desires to dedicate approximately 1,883 square feet of the Property for public street and right-of-way purposes, as more particularly described on Exhibit A and depicted on Exhibit B attached hereto (the “ROW Area”), and to accept the Dedication of the ROW Area for public street and right-of-way purposes; and Whereas, the City desires to authority the City Manager, or designee, to execute the dedication instrument, acceptance certificate and any related documents necessary to complete and record the dedication; and
Whereas, the proposed action to authorize the City Manager, or designee, to execute the dedication is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(3) and 15378(b)(5).

This action is not a project per State CEQA Guidelines section 15378(b)(5) because the action is an administrative activity that will not result in direct or indirect physical changes in the environment. Thus, the proposed action is not subject to CEQA under State CEQA Guidelines section 15060(c)(3). No further environmental review is required for this action
Now, therefore, be it resolved by the City Council of the City of Palm Desert, California, as follows:

Section 1. The foregoing Recitals are true and correct and are incorporated herein by this reference.

Section 2. The City Council hereby approves and authorizes the dedication of the ROW Area for public street and right-of-way purposes, and the acceptance of the ROW Area for public street and right-of-way purposes.

Section 3. The City Council authorizes the City Manager, or designee, to execute the dedication instrument, acceptance certificate and any related documents necessary to complete and record the dedication, subject to approval as to form by the City Attorney. 291
Resolution No. 2026-____ Page 2
72500.00970\45473740.1
Section 4. This Resolution shall take effect immediately upon adoption.

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
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Resolution No. 2026-____ Page 3
72500.00970\45473740.1
[Attach Exhibits A & B]
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OCOTILLO DRIVE TUMBLEWEED LANE ALTA/NSPS LAND TITLE SURVEY

ALTA/NSPS LAND TITLE SURVEY CIVIL ENGINEERS JRN PALM DESERT CITY OF ³ ´ EL PASEO DRIVE 327
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City of Palm Desert Staff Report
Meeting Date: October 8, 2026
Prepared By: Mariela Salazar, Management Analyst
Department: Economic Development
Subject: Approve Amendment No. 3 to Lease Agreement No. C41250 with the Artist Council Recommendation

1. Approve Amendment No. 3 to Lease Agreement No. C41250 with the Artist Council to correct the parcel reference in the common area maintenance provision.

2. Authorize the City Manager to execute the amendment, subject to the City Attorney’s approval as to form.

Executive Summary
Exhibit C of the Artist Council lease incorrectly identifies the parcels associated with the lessee’s 23 percent share of common area maintenance (CAM) expenses. The proposed amendment corrects the parcel reference without changing the CAM allocation or any other lease term.

Background
On March 25, 2021, the City Council approved Lease Agreement No. C41250 with the Artist Council for property at 72567 Highway 111. The lease has been amended twice and expires June 30, 2030.

Section 1.2 of the lease identifies APN 640-370-004 as the Main Building Property. However, Section 1 of Exhibit C refers to APNs 640-370-001 and 640-370-002, which are associated with the Palm Springs Art Museum’s Sculpture Garden under a separate lease.

Analysis
The proposed amendment replaces the parcel references in Exhibit C with APN 640-370-004, consistent with Section 1.2 of the lease. This correction identifies the main building as the basis for the Artist Council’s CAM charge.

The lessee’s 23 percent share will remain unchanged, as will the covered expenses including landscaping, water, electricity, and parking lot sweeping, and the annual adjustment process.

All other lease terms will remain in effect.

Environmental Review
This action is not a project under the California Environmental Quality Act because it is an administrative, organizational, procedural, fiscal, or informational activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment. 329

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

Financial Impact
There is no impact to the General Fund associated with this action. The amendment only corrects the parcel reference in the written lease and does not change the lessee’s 23 percent share of common area maintenance expenses or methodology used to calculate CAM charges.

Attachments

1. Amendment No. 3 to Lease Agreement No. C41250

2. Executed Lease Agreement No. C41250
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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: 72567 Highway 111
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): Artist Council 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). 331
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THIRD AMENDMENT TO LEASE AGREEMENT
THIS THIRD AMENDMENT TO LEASE AGREEMENT (C41250) (“Third Amendment”) is entered as of October 8, 2026, by and between CITY OF PALM DESERT, a municipal corporation (“Lessor”), and the ARTISTS COUNCIL, a California nonprofit public benefit corporation (“Lessee”). Lessor and Lessee are sometimes referred to herein individually as a “Party” or collectively as the “Parties.”

RECITALS
A. Lessor and Lessee previously entered into that certain Lease dated April 1, 2021, as amended by that certain First Amendment to Lease Agreement dated July 14, 2022, and as further amended by that certain Second Amendment to Lease Agreement dated October 24, 2024 (as amended, the “Lease”), for the lease of the premises more particularly described therein located at 72-567 Highway 111 in the City of Palm Desert, County of Riverside (the “Premises”).

B. Lessor and Lessee desire to amend the Lease on the terms and conditions as provided in this Third Amendment.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby mutually agree as follows:

1. Amendments to Lease. The Lease is hereby amended as follows:
a. Exhibit C. Section 1 of Exhibit C of the Lease is hereby amended to read in its entirety as follows:
“1. Operating Expenses/CAM Charges: Lessee's share of
operating and maintenance expenses shall be payable by Lessee on either a monthly or annual basis. The Common Area Maintenance (CAM) charges will be twenty three percent (23%) of the total operating and maintenance expenses relating to APN 640-370-004. CAM charges consist of landscaping costs, water, electricity and parking lot sweeping, the monthly charges shall be estimated and adjusted (on the same pro rata basis) on an annual basis beginning on July 1st of each year.”

2. Effectiveness of Agreement. Except as explicitly amended by this Third Amendment, all other provisions of the Lease remain in full force and effect and shall govern the actions of the parties under this Third Amendment. From and after the date of this Third Amendment, whenever the term “Agreement” or “Lease” appears in the Lease, it shall mean the Lease as amended by this Third Amendment. 333
Contract No. C41250
2 3. Entire Agreement. This Third Amendment and the Agreement represent the final and entire agreement between Lessor and Lessee regarding the subject matter hereof and thereof, and may not be contradicted by evidence of prior, subsequent, or contemporaneous oral agreements of the Parties.

4. Modification. No amendment or modification hereto shall be valid and binding unless expressed in writing and executed by both Parties hereto.

5. Authority. Each individual executing this Third Amendment on behalf of an entity represents and warrants that he or she is duly authorized to execute and deliver this Third Amendment on its behalf.

6. Counterparts. This Third Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Third Amendment delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

7. Severability. If any portion of this Third Amendment is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
[Signatures on Following Page]
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Contract No. C41250
3 IN WITNESS WHEREOF, the Parties have caused this Third Amendment to be executed by and through their respective authorized representatives, as of the date first above written.

Office Use:

Quality Check Insurance
City Clerk Contracts Initial Review Final Review

CITY OF PALM DESERT
By:

Chris Escobedo
City Manager
ATTEST:

By:

Anthony J. Mejia
City Clerk
APPROVED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney
ARTISTS COUNCIL, a California nonprofit
public benefit corporation
By:

Its:

Printed Name:

By:

Its:

Printed Name:
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Palm Desert City CouncilOctober 8, 2026

Palm Desert City Council
October 8, 2026