Palm Springs City Council
June 16, 2022

INSURA
NCE

1. P rocurement and Maintenance of Insurance. Contractor shall procure and maintain public liability an d pr operty damage insurance against all cla ims for i njuries against persons or dam ages to property resulting from Cont ractor’s pe rformance under this Agreement. Contractor shall procure and m aintain all ins urance at its sole cost and expense, in a form and cont ent satisfactory to the City, and submit concurrently with its execution of this Agreement. Contractor shall also carry workers’ compensation insurance in accordance with California wor kers’ compensation laws. Such in surance shall be ke pt in full force and effect during the term of this Agr eement, including any extensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any proposed c ancellation. Certificates of insur ance evidencing t he foregoing and des ignat
ing the City, its elected officials, officers, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, certificates, and endorsements evidencing the same shall not be construed as a limitation of Contractor’s obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers.

2. Minimum S cope of Insurance. The minimum amount of insu rance required under this Agreement shall be as follows:

1. Comprehensive gener al liabilit y and personal i njury wit h limits of at l east o ne million dolla rs ( $1,000,000.00) combined singl e limit coverage pe r oc currence and t wo million dollars ($2,000,000) general aggregate;

2. Automobile liability insurance with limits of at least o ne million dollars ($1,000,000.00) per occurrence;

3. Professional liability (errors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000) annual aggregate is:
_________ required
___x_____ is not required;

4. Workers’ Compensation insurance in the st atutory amount as required by t he State of Cal ifornia and Em ployer’s Liability Insu rance with limits of at least one mil lion dollars $1 millio n per occurrence . If Contractor has no employees, Contractor shal l complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3. Primary Insurance. For any claims relate d to this Agreement, Contractor’s insurance coverage shall be primary with res pect to the City and it s respectiv e el ected officials, officers, empl oyees, agents, a nd v olunteers. Any insurance or self-insurance maintained by Ci ty a nd its respective elected officials, officers, e mployees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability Insurance only, the insurer shall waive all rights of subrogation and contribution it may have against City, its elected officials, officers, employees, agents, and volunteers.

4. Errors and Omissions Coverage. If Errors & Omissions Insurance is required, and if C ontractor provides claims made prof essional liability insurance, Cont ractor shal l also agree in writing either (1) to purchase tai l insurance in the amount requi red by this Agreement to cov er claims ma de wit hin three year s of t he completi on of Contractor ’s services under this Agreement, or (2) to maintain professional liability insurance coverage Item 1N - 21
with the s a
me carrier in the amount r equired by this Agreement for a t least thr ee years after completion of Contractor ’s services under this Agreement. Contractor shall also be required to prov ide ev idence to City of the purchase of the required tail in surance or continuation of the professional liability policy.

5. Sufficiency of Insurers. Insurance required in this Agreement shall be provided by authorized insure rs in good standing w ith the State of California. Coverage shall b e provided by insurers admitted in the State of California with an A. M. Best’s Key Rating of B++, Class VII, or better, unless otherwise acceptable to the City.

6. Verification of Coverage. Contractor shall furnish City with both certificat es of insurance and endorsements, including addit ional insured endorsements, effecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person auth orized by that insurer to bind coverage on its behal f. All proof of insurance is to be r eceived and approved b y the City before work co mmences. C ity reserves the right to require Contractor’s insurers to provide complete, certified copies of all requir ed insurance poli cies at any ti me. A dditional insured endorsements a re no t required for Errors and Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the C ity of Palm Sp rings or (2) an acceptable Certificate of L iability Insurance Cov erage w ith an app roved Additional Insured Endorsement with the following endorsements stated on the certificate:

A. " The Ci ty of
Palm Springs, its officials, em ployees, and agents are named as an additional insured…” ("as respects City of Palm Springs Contract No.___" or "for any and all work performed with the City" may be included in this statement).

B. " Thi s i
nsurance is p rimary and non -contributory over any insurance or self - insurance t he City may have..." (" as respects City of Palm S prings Contract No.___" or "for any and all work performed with the City" may be included in this statement).

C. " S hould
any of the above describe d policies be canceled before t he expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "bu t failure t o mail such notice shall impose no obligation or liability o f a ny kind upon the company, its agents or representative" is not acceptable and must be crossed out.

D. B ot h t
he Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies.

All c ertificates of insurance and endorsements are to be received and approve d b y t he City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insuran ce Item 1N - 22
underwrit
er. Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.

7. Deductibles and S elf-Insured Retentions. Any deductibles or self -insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected officials, of ficers, employees, a gents, and volunteers; or (2) C ontractor sh all procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Certificates of Insurance must include evidence of the amoun t of any deductible or self-insured retention under the policy. Contractor guarantees payment of all deductibles and self-insured retentions.

8. Severabili ty of I nterests (Separation o f Insureds) . This i nsurance applies separately to each in sured agains t whom claim is made or suit is brought except with respect to the limits of the insurer’s liability.

Item 1N - 23

ATTACHMENT B

PUBLIC INTEGRITY DISCLOSURE
Item 1N - 24
City of Palm Springs | RFP 17-22
Advertising & Promotional Services
Palm Springs International Airport
GLEESON STRATEGIES | 2022
30 ATTACHMENT “D” – BUSINESS DISCLOSURE FORM cont.

Item 1N - 25

1. 2.

3. 4.
ame of En ity

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FOR
PUSH EDIAI C. dba Gleeson Strateg ies
s)
E TO, CA 95818
r n t than #2)

AS ABOVE
State ere Entity s Reg ed Secre ry Sta e

CALIFORNIA
If o r than C llfom a, Enl

5. yp o Ent ty
Officers, Directors , Mem~, , M 'llagers, Trust
specify) Not : ff any respon I not natural p
dl~tors , memb nd oth r llducl rl
or other entity
Caro l Gleeson O ce D D re or D ember D ana,ger
D General Partn D Limited P rtn [ m 1
[)Otl er __________ _
______ N_/_A _____ D o oer D D rector D Member D Man ge [name ] O Genera l Partner O · ited Partner
Other __________ _
N/A ____________ 0 0fflc Dir cor O M m r O M n g
m ] D Gen I P rtrl O Limited P rtrl
O Othe _________ _
City of Palm Springs | RFP 17-22
Advertising & Promotional Services
Palm Springs International Airport
GLEESON STRATEGIES | 2022
31 ATTACHMENT “D” – BUSINESS DISCLOSURE FORM cont.v
Item 1N - 26
ors with a 5% ben

JANE DOE
(name of o er/in ester]
A.

CAROL GLEESON
(name of o er/in ester]
B.
(n m of
C.
(n m of tor]

0. [ ameof
E.
50%, ABC COMPANY, rnc.
[percen e of be f tclal · t rest n e tity a d
n m or n~ty)
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dba Gleeson Strateg ies
[percent.a e of be ficial interest ·n tity and
o m or entity)
[P rcen of nd
name or entity]
(P rcen of " 6 """"' ' .,.,e:i. tlty nd
n me of entity]
[percent.a e of
name of entity]
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( ame of erfi vesto ] [pe oe ta e of be ficial · erest in entity and n m of en y)

I DECLARE UNDER PE AL TY OF PERJURY UNDER THE LAWS O THE STATE OF CALIFORNIA THAT THE FOREG01 G IS TRUE A D CORRECT.

CAROL GLEESON

CEO/PRESIDE T
26 APRIL, 2022

CITY COUNCIL STAFF REPORT
06/16/2022   1. O.

City Clerk -

SUBJECT

ANNUAL LEVY OF ASSESSMENTS FOR VARIOUS STREET LIGHTING AND PARKWAY MAINTENANCE DISTRICTS CITYWIDE FOR FISCAL YEAR 2022-2023 RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ORDERING THE PREPARATION OF AND GIVING PRELIMINARY APPROVAL OF THE ENGINEER’S REPORT REGARDING STREET LIGHTING MAINTENANCE DISTRICT NO. 3, AND PARKWAY MAINTENANCE DISTRICTS NO. 6A, 6C, 7, 8, 9, AND 10 (ZONES 1 AND 2), AND LANDSCAPE MAINTENANCE DISTRICT NO. 12, TO ESTABLISH ANNUAL ASSESSMENTS AND THE LEVY AND COLLECTION RELATED
THERETO FOR FISCAL YEAR 2022/2023.”

1. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JULY 14, 2022, REGARDING STREET LIGHTING MAINTENANCE DISTRICT NO. 3, AND PARKWAY MAINTENANCE DISTRICTS NO. 6A, 6C, 7, 8, 9, AND 10 (ZONES 1 AND 2), AND LANDSCAPE MAINTENANCE DISTRICT NO. 12, AND TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2022/2023.”

2. Attachments
Item 1O

CITY COUNCIL STAFF REPORT

DATE: June 16, 2022 CONSENT CALENDAR

SUBJECT: ANNUAL LEVY OF ASSESSMENTS FOR VARIOUS STREET LIGHTING

AND PARKWAY MAINTENANCE DISTRICTS CITYWIDE FOR FISCAL YEAR 2022-2023

FROM: Justin Clifton, City Manager

BY: Engineering Division

SUMMARY:

This item will initiate proceedings required by law to continue the levy of existing annual special assessments in the City’s various Street Lighting and Parkway Maintenance Districts. Adoption of a Resolution of Intention will schedule a Public Hearing for July 14, 2022, to consider the formal levy and collection of special assessments for the subject fiscal year.

RECOMMENDATION:

1) Adopt Resolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, ORDERING THE PREPARATION OF AND GIVING PRELIMINARY APPROV AL OF THE ENGINEER’S REPORT REGARDING STREET LIG HTING MAINTENANCE DISTRICT NO. 3, AND PARKWAY MAINTENANCE DISTRICTS NO. 6A, 6C, 7, 8, 9, AND 10 (ZONES 1 AND 2), AND LANDSCAPE MAINTENANCE DISTRICT NO. 12, TO ESTABLISH

ANNUAL ASSESSMENTS AND THE LEVY AND COLLECTION RELATED
THERETO FOR FISCAL YEAR 2022/2023;” and

2) Adopt Resolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JULY 14, 202 2, REGARDING STREET LIGHTING MAINTENANCE DISTRICT NO. 3, AND PARKWAY MAINTENANCE DISTRICTS NO. 6A, 6C, 7, 8, 9, AND 10 (ZONES 1 AND 2), AND LANDSCAPE MAINTENANCE DISTRICT NO. 12, AND TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2022/2023.”

STAFF ANALYSIS:

In accordance with the Streets and Highways Code of the State of California, the City is required to prepare Engineer’s Reports on the annual costs to operate and maintain Item 1O - 1
City Council Staff Report
June 16, 2022 -- Page 2
Street Lighting and Parkway Maintenance Districts

improvements within the City’s various Street Lighting or Parkway Maintenance Districts, which include the following:

1. Street Lighting Maintenance District No. 3 consists of 75 residential parcels located in the “Crossley Tract,” south of 34th Avenue along Lawrence Street and Marguerite Street. District No. 3 was established in 1983 to provide funding for the installation, operation, and maintenance of street lighting along Lawrence Street and Marguerite Street, shown in Figure 1 and the following vicinity map:

Figure 1
Item 1O - 2
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

District No. 3 Vicinity Map
Crossley Tract
Item 1O - 3
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Street Lighting and Parkway Maintenance Districts

2. Parkway Maintenance District No. 6A consists of 25 commercial and industrial properties located in the “Fairport Development,” between Chia Road and Tachevah Drive, west of Gene Autry Trail. District No. 6A was established in 1980 to provide funding for the maintenance of parkway landscaping along the sout h side of Chia Road as shown in Figure 2 and the following vicinity map:

Figure 2

Item 1O - 4
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

District No. 6A Vicinity Map
Fairport Development
Item 1O - 5
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

3. Parkway Maintenance District No. 6C consists of 30 residential parcels located in the “Park Sonora Tract,” on the east side of El Cielo Road along Sonora Road, Loma Vista Circle and San Marin Circle. District No. 6C was established in 1980 to provide funding for the maintenance of parkway landscaping along the east side of El Cielo Road along the frontage of the Park Sonora Tract, shown in Figure 3 and the following vicinity map:

Figure 3
Item 1O - 6
City Council Staff Report
June 16, 2022 -- Page 7
Street Lighting and Parkway Maintenance Districts

District No. 6C Vicinity Map
Park Sonora Tract

Item 1O - 7
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

4. Parkway Maintenance District No. 7 consists of 53 residential parcels located in the “Sunrise Norte Tract,” on the north side of San Rafael Drive west of Sunrise Way, located along Mountain Shadow Drive, Sand Spring Drive, Mica Drive, Garnet Road, and Twin Star Road. District No. 7 was established in 1990 to provide funding for the maintenance of parkway landscaping along the north side of San Rafael Drive along the frontage of the Sunrise Norte Tract, shown in Figure 4 and the following vicinity map:

Figure 4

Item 1O - 8
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

District No. 7 Vicinity Map
Sunrise Norte Tract
Item 1O - 9
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

5. Parkway Maintenance District No. 8 consists of 62 residential parcels located in the “Vintage Palms Tract,” on the north side of San Rafael Drive and the east side of Avenida Caballeros. District No. 8 was established in 1990 to provide funding for the maintenance of parkway landscaping along the north side of San Rafael Drive and the east side of Avenida Caballeros along the frontage of the Vintage Palms Tract, shown in Figure 5 and the following vicinity map:

Figure 5
Item 1O - 10
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

District No. 8 Vicinity Map
Vintage Palms Tract
Item 1O - 11
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

6. Parkway Maintenance District No. 9 consists of 77 residential parcels located in the “Flora Vista Tract,” on the south side of Racquet Club Road, the west side of Sunrise Way, and the north side of Via Escuela. District No. 9 was established in 1997 to provide funding for the maintenance of parkway landscaping along the west side of Sunrise Way along the frontage of the Flora Vista Tract, shown in Figure 6 and the following vicinity map:

Figure 6
Item 1O - 12
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Street Lighting and Parkway Maintenance Districts

District No. 9 Vicinity Map
Flora Vista Tract

Item 1O - 13
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

7. Parkway Maintenance District No. 10, Zone 1 , consists of 308 residential parcels located in the “ Mountain Gate (Phase 1),” development on the east side of N. Palm Canyon Drive and north of Gateway Drive. District No. 10 , Zone 1, was established in 2003 to provide funding for the maintenance of parkway landscaping along the east side of N. Palm Canyon Drive, the north side of Gateway Drive, and drainage basins along East Gate Road, shown in Figure 7 and the following vicinity map:

Figure 7
Item 1O - 14
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

District No. 10 – Zone 1 Vicinity Map
Mountain Gate (Phase 1)

Item 1O - 15
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

8. Parkway Maintenance District No. 10, Zone 2 , consists of 196 residential parcels located in the “ Mountain Gate (Phase 2),” development on the east side of N. Palm Canyon Drive. District No. 10, Zone 2, was established in 2005 to provide funding for the maintenance of parkway landscaping along the east side of N. Palm Canyon Drive, shown in Figure 8 and the following vicinity map:

Figure 8

Item 1O - 16
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Street Lighting and Parkway Maintenance Districts

District No. 10 – Zone 2 Vicinity Map
Mountain Gate (Phase 2)

Item 1O - 17
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Street Lighting and Parkway Maintenance Districts

9. Landscape Maintenance District No. 12 consists of 6 commercial parcels located in the “Smoke Tree Commons” shopping center on the south side of E. Palm Canyon Drive and west side of Barona Road. District No. 12 was established in 2008 to provide funding for the maintenance of median landscaping within E. Palm Canyon Drive between Cerritos Drive and Farrell Drive, shown in Figure 9 and the following vicinity map:

Figure 9

Item 1O - 18
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

District No. 12 Vicinity Map
Smoke Tree Commons

Item 1O - 19
City Council Staff Report
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Street Lighting and Parkway Maintenance Districts

The Preliminary Engineer’s Reports are on file with the City Clerk and are available for public inspection for the assessment districts below:

1. Street Lighting Maintenance District No. 3 (Crossley Tract – 75 Properties)

2. Parkway Maintenance District No. 6A (Fairport Development – 25 Properties)

3. Parkway Maintenance District No. 6C (Park Sonora Tract – 30 Properties)

4. Parkway Maintenance District No. 7 (Sunrise Norte Tract – 53 Properties)

5. Parkway Maintenance District No. 8 (Vintage Palms Tract – 62 Properties)

6. Parkway Maintenance District No. 9 (Flora Vista Tract – 77 Properties)

7. Parkway Maintenance District No. 10, Zone 1 (Mountain Gate – 308 Properties)

8. Parkway Maintenance District No. 10, Zone 21 (Mountain Gate 2 – 196 Properties)

9. Landscape Maintenance District No. 12 (Smoke Tree Commons – 6 Parcels)

In accordance with the Streets and Highways Code of the State of California, it is necessary for a Resolution of Intention to be adopted , scheduling a Public Hearing for consideration of the levy and collection of special assessments for the various Maintenance Districts for the subject fiscal year.

FISCAL IMPACT:

On November 5, 1996, the voters of California approved Proposition 218, the “Right to Vote on Taxes Act,” (or “Prop 218”). Prop 218 revised the manner in which local agencies could increase special assessments or levy new taxes, by adding Articles XIIIC and XIIID to the California Constitution and imposing new regulations requiring local agencies to call for elections for a vote of affected property owners for any proposed new or increased special assessment. Prior to Prop 218, local agencies had the legal ability to propose new or increased special assessments, and such assessments could be implemented insofar as a majority protest was not presented by the affected property owners.

Prop 218 has imposed a challenge on local agencies administering Special Districts that generate revenue for maintaining public improvements that benefit private properties.

Those Special Districts that were established prior to Prop 218 did not have a formula for adjustment of special assessments to account for inflation, therefore, after Prop 218 any increase in special assessments requires a local agency to call for a special election and for a majority vote to support such increased assessment.

Specifically for Palm Springs, four of its remaining Special Districts (District No. 3, 6A, 6C, and 7) were established prior to Prop 218, and District No. 7 was established immediately after Prop 218 in 1997. However, Districts No. 10 and 12 were originally established with a formula allowing for annual increases to the special assessment subject to the Consumer Price Index (“CPI”).

As costs have increased associated with street lighting or landscape maintenance, namely with utility costs, the total costs incu rred by the City for maintenance of public improvements in these Special Districts has, at times, exceeded the revenue generated by the special assessments in each District, causing a deficit. In those cases, services are reduced accordingly to ensure over all costs do not exceed assessment revenues Item 1O - 20
City Council Staff Report
June 16, 2022 -- Page 21
Street Lighting and Parkway Maintenance Districts

received. Conversely, when excess revenues generate a surplus, the City reduces the amount of the assessment being levied to the specific district. The intent is to maintain an adequate surplus to provide the req uired service. When an unexpected event occurs, Staff will use surplus to address landscaping needs caused by the unexpected events.

The following summarizes the fiscal status of each District:

Street Lighting Maintenance District No. 3 (“Crossley Tract”) FY 22/23 max assessment: $ 4,283 (spread over 75 parcels) FY 22/23 levied costs: $ 4,283
Note: The proposed assessment equals the approved max assessment.

Parkway Maintenance District No. 6A (“Fairport Development”) FY 22/23 max assessment: $ 5,154 (spread over 25 parcels) FY 22/23 levied costs: $ 5,154
Note: The proposed assessment equals the approved max assessment.

Parkway Maintenance District No. 6C (“Park Sonora Tract”) FY 22/23 max assessment: $ 12,368 (spread over 30 parcels) FY 22/23 levied costs: $ 12,368
Note: The proposed assessment equals the approved max assessment.

Parkway Maintenance District No. 7 (“Sunrise Norte”)
FY 22/23 max assessment: $ 23,747 (spread over 53 parcels) FY 22/23 levied costs: $ 17,306
Note: The proposed assessment is less than approved max assessment.

Parkway Maintenance District No. 8 (“Vintage Palms”)
FY 22/23 max assessment: $ 24,275 (spread over 62 parcels) FY 22/23 levied costs: $ 24,275
Note: The proposed assessment equals the approved max assessment.

Parkway Maintenance District No. 9 (“Flora Vista”)
FY 22/23 max assessment: $ 17,409 (spread over 77 parcels) FY 22/23 levied costs: $ 17,409
Note: The proposed assessment is equals the approved max assessment.

PARKWAY MAINTENANCE DISTRICT NO. 10, ZONE 1 (“MOUNTAIN GATE 1”) FY 22/23 max assessment: $ 160,662 (spread over 308 parcels) FY 22/23 levied costs: $ 90,766
Note: The proposed assessment is less than approved max assessment.

Item 1O - 21
City Council Staff Report
June 16, 2022 -- Page 22
Street Lighting and Parkway Maintenance Districts

PARKWAY MAINTENANCE DISTRICT NO. 10, ZONE 2 (“MOUNTAIN GATE 2”) FY 22/23 max assessment: $ 160,838 (spread over 196 parcels) FY 22/23 levied costs: $ 35,360
Note: The proposed assessment is less than approved max assessment.

LANDSCAPE MAINTENANCE DISTRICT NO. 12 (SMOKE TREE COMMONS) FY 22/23 max assessment: $ 18,494 (spread over 6 parcels) FY 22/23 levied costs: $ 16,567
Note: The proposed assessment less than the approved max assessment.

Approval of this action is the first step to formally levying special assessments in the City’s Street Lighting and Parkway Maintenance Districts. In accordance with the Engineer’s Reports prepared for each Maintenance District, at the public hearing to be held on July 14, 2022, the City Council will consider levying special assessments to collect revenue to pay for expenditures incurred within each District, as identified below:

Special District No. FY 22/23
Levy Amount
Qty of
Parcels
Special Assessment /
Parcel
Crossley Tract (3) $4,282.50 75 $57.10
Fairport Development (6A) $5,154.00 19 $166.26
6 $332.52
Park Sonora Tract (6C) $12,367.80 30 $412.26
Sunrise Norte (7) $17,304.50 53 $326.50
Vintage Palms (8) $24,274.24 62 $391.52
Flora Vista (9) $17,408.16 77 $226.08
Mountain Gate Zone 1 (10-1) $ 90,762.40 292 $293.16
16 $322.48
Mountain Gate Zone 2 (10-2) $ 35,359.80 175 $178.50
21 $196.30
Smoke Tree Commons (12) $ 16,566.75 6 $9.15 - $10,223.79 Total FY 22/23 Levy $223,480.15 832

The proposed assessments for the subject Fiscal Year are lower or equal to the maximum assessment amounts previously approved by property owner petition or balloting, in accordance with the provisions of the California Constitution Article XIIID (Proposition 218).

Item 1O - 22
City Council Staff Report
June 16, 2022 -- Page 23
Street Lighting and Parkway Maintenance Districts

REVIEWED BY:

City Engineer: Joel Montalvo
Deputy City Manager: Flinn Fagg
City Manager: Justin Clifton

ATTACHMENTS:

A. Resolution No. 1 – Preliminary Approval of Engineer’s Reports B. Resolution No. 2 – Intention to Conduct Public Hearing Item 1O - 23
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, ORDERING THE

PREPARATION OF AND GIVING PRELIMINARY
APPROVAL OF THE ENGINEER’S REPORT REGARDING
STREET LIGHTING MAINTENANCE DISTRICT NO. 3, AND
PARKWAY MAINTENANCE DISTRICTS NO. 6A, 6C, 7, 8, 9,
AND 10 (ZONES 1 AND 2) , AND LANDSCAPE
MAINTENANCE DISTRICT NO. 12, TO ESTABLISH

ANNUAL ASSESSMENTS AND THE LEVY AND

COLLECTION RELATED THERETO FOR FISCAL YEAR
2022/2023

WHEREAS, the City Council of the City of Palm Springs, California, (hereinafter the “City Council”), has by previous Resolution established Street Lighting Maintenance District No. 3 (“Crossley Tract”), Parkway Maintenance District No. 6A (“Fairport Development”), Parkway Maintenance District No. 6C (“Park Sonora Tract”), Parkway Maintenance District No. 7 (“Sunrise Norte Tract”), Parkway Maintenance District No. 8 (“Vintage Palms Tract”), Parkway Maintenance District No. 9 (“Flora Vista”), Parkway Maintenance District No. 10 (Zones 1 and 2) (“Mountain Gate”), and Landscape Maintenance District No. 12 (“Smoke Tree Commons”), (hereafter individually referred to as the “District”, or collectively referred to as the “Districts”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of the State of California, beginning with §22500 (hereafter referred to as the “Act” ), that provides for the levy and collection of assessments by the City of Palm Springs to pay for the maintenance and services of improvements and all appurtenant facilities and operations related thereto; and

WHEREAS, §22566 and §22622 of the Act requires the preparation of an Engineer’s Report to determine and adjust the annual assessment rates for the Districts; and

WHEREAS, the Districts include existing street lighting improvements, or existing streetscape landscaping including parkways and medians as well as public landscaped areas, including turf, ground cover, plants, shrubs, trees, irrigation and drainage systems, landscape lighting improvements, and appurtenant facilities and improvements within non-contiguous, separately established District areas within the incorporated boundaries of the City of Palm Springs; and

WHEREAS, the Act provides for the levy and collection of assessments by the County of Riverside for the City of Palm Springs to pay costs for the maintenance and services of all improvements and facilities related thereto; and

WHEREAS, the City Engineer , or designee, has prepared an Engineer’s Report (hereafter referred to as the “Report”) in accordance with the Act, and in accordance with the requirements of Articles XIIIC and XIIID of the California Constitution as enacted by Item 1O - 24
Resolution No.

the passage of Proposition 218, also referred to as “The Right to Vote on Taxes Act,” as approved by the voters of the State of California on November 5, 1996; and

WHEREAS, there has now been presented to the City Council the Report for each of the Districts for Fiscal Year 2022/2023; and

WHEREAS, the City Council has carefully examined and reviewed the Report for each of the Districts as presented and is preliminarily satisfied with each and all of the budget items and documents as set forth therein, and is preliminarily satisfied that the proposed annual assessments have been spread in accordance with the special benefits properties within the Districts will receive from the improvements, operation, maintenance and services to be performed as part of the Districts, as set forth in said Report.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:

Section 1: The preceding recitals are all true and correct.

Section 2: The City Engineer, or designee, is hereby ordered to prepare and appropriately file an Engineer’s Report for the Districts required to determine and adjust the assessments therein each District for Fiscal Year 2022/2023 in accordance with §22566 and §22622 of the Act. The Engineer’s Report for each District shall be filed with the City Clerk for submission to the City Council.

Section 3: The improvements to be operated and maintained by the Districts generally include the operation, administration, maintenance, and servicing of street lighting, or streetscape landscaping including parkways and medians as well as public landscaped areas, including turf, ground cover, plants, shrubs, trees, irrigation and drainage systems, landscape lighting improvements, and appurtenant facilities and expenses associated with the Districts that will be maintained by the City of Palm Springs through annual assessments.

Section 4: The improvements to be maintained by the City of Palm Springs for Fiscal Year 2022/2023 are substantially the same as the improvements provided and maintained in the previous Fiscal Year and the Engineer’s Report for each District prepared in connection therewith shall describe the improvements as required by the Act, and as presented, consists of the following:

1) A description of the District and its improvements.

2) A Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements; and the calculations used to establish each parcel’s proportional special benefit assessment for Fiscal Year 2022/2023. 3) An annual budget that outlines the costs and expenses to service, and maintain the improvements, including incidental expenses, as authorized by the Act.

Item 1O - 25
Resolution No.

4) An Assessment Diagram that identifies the lots, parcels and properties included within the boundaries of the District.

5) An Assessment Roll containing each of the Assessor Parcel Numbers that comprise the District, and the proportional maximum assessment for Fiscal Year 2022/2023.

Section 5: The Engineer’s Report for each District shall reflect provisions and related assessments in accordance with the requirements of Articles XIIIC and XIIID of the California Constitution as enacted by the passage of Proposition 218, also referred to as “The Right to Vote on Taxes Act,” as approved by the voters of the State of California on November 5, 1996.

Section 6: The Engineer’s Report for each District is hereby approved on a preliminary basis (as submitted or amended), and ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

Section 7: The proposed assessments for Fiscal Year 2022/2023 are less than or equal to the maximum assessment amounts previously approved by property owner petition or balloting, in accordance with the provisions of the California Constitution Article XIIID (Proposition 218).

Section 8: The City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Engineer’s Report for each District.

ADOPTED THIS 16th DAY OF JUNE, 2022.

Justin Clifton, City Manager

ATTEST:

Monique Lomeli, CMC
Interim City Clerk

Item 1O - 26
Resolution No.

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, Monique Lomeli, CMC, Interim City Clerk of the City of Palm Springs, hereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on June 16, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Monique Lomeli, CMC
Interim City Clerk
City of Palm Springs, California

Item 1O - 27
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, DECLARING ITS

INTENTION TO CONDUCT A PUBLIC HEARING ON JULY
14, 2022, REGARDING STREET LIGHTING MAINTENANCE
DISTRICT NO. 3, AND PARKWAY MAINTENANCE
DISTRICTS NO. 6A, 6C, 7, 8, 9, AND 10 (ZONES 1 AND 2),
AND LANDSCAPE MAINTENANCE DISTRICT NO. 12, AND

TO LEVY AND COLLECT ANNUAL ASSESSMENTS
RELATED THERETO FOR FISCAL YEAR 2022/2023
WHEREAS, the City Council of the City of Palm Springs, California, (hereinafter the “City Council”), has by previous Resolution established Street Lighting Maintenance District No. 3 (“Crossley Tract”), Parkway Maintenance District No. 6A (“Fairport Development”), Parkway Maintenance District No. 6C (“Park Sonora Tract”), Parkway Maintenance District No. 7 (“Sunrise Norte Tract”), Parkway Maintenance District No. 8 (“Vintage Palms Tract”), Parkway Maintenance District No. 9 (“Flora Vista”), Parkway Maintenance District No. 10 (Zones 1 and 2) (“Mountain Gate”), and Landscape Maintenance District No. 12 (“Smoke Tree Commons”), (hereafter individually referred to as the “District”, or collectively referred to as the “Districts”), pursuant to the provisions of the Landsc aping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of the State of California, beginning with §22500 (hereafter referred to as the “Act”), that provides for the levy and collection of assessments by the City of Palm Springs to pay for the maintenance and services of improvements and all appurtenant facilities and operations related thereto; and
WHEREAS, an Engineer’s Report for each District, (hereafter referred to as the “Report”), has been prepared and filed with the City Clerk of the City of Palm Springs, (hereafter referred to as the “City Clerk”), and the Report identifies the levy of assessments for Fiscal Year 2022/2023 (July 1, 20 21, and ending June 30, 20 22) in accordance with the Act; and the City Council did by previous Resolution preliminarily approve each Report.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:

Section 1: The City Council hereby declares its intention to levy and collect annual assessments against parcels of land within each District for Fiscal Year 2022/2023 in accordance with §22624 of the Act.

Section 2: The territory of land within each District consists of non -contiguous, separately established District areas within the incorporated boundaries of the City of Palm Springs, and a full and complete listing of parcels within each District is included in the Report on file with the City Clerk.

Item 1O - 28
Resolution No.

Section 3: The improvements include the operation, maintenance and servicing of existing street lighting, or streetscape landscaping including parkways and medians as well as public landscaped areas, including turf, ground cover, plants, shrubs, trees, irrigation and drainage systems, landscape lighting improvements, and appurtenant facilities and improvements to be provided by the City of Palm Springs in connection with the improvements installed within each District. Detailed maps and descriptions of the location and extent of the improvements to be maintained are included as part of the Report for each District, and by reference is made part of this Resolution.

Section 4: The proposed assessments for each District are outlined in the Report. The Report details the assessments necessary to provide for the annual operation, administration, services and maintenance of the improvements described in Section 3 of this Resolution. These assessments are less than or equal to the maximum assessment amounts previously approved by property owner petition or balloting within each District, in accordance with the provisions of the California Constitution Article XIIID (Proposition 218).

Section 5: The City Council hereby decl ares its intention to conduct a Public Hearing concerning the levy of assessments for the improvements in accordance with §22625 of the Act. Any inter ested person may file a written protest with the City Clerk prior to the conclusion of the hearing, or having previously filed protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and protest by a property owner shall contain a description sufficient to identify the property owned by such property owne r. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard.

Section 6: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Wednesday, July 14, 2022, at 6:00 P.M., or as soon thereafter as feasible in the Council Chamber at City Hall, located at 3200 East Tahquitz Canyon Way, Palm Springs, California.

Section 7: In accordance with §22552 and §22553 of the Act, the City Clerk shall cause notice to be given of the time and place of the Public Hearing by causing the publishing of this Resolution once in the local paper not less than ten (10) days before the date of the Public Hearing, and by posting a copy of this Resolution on the official bulletin boar d customarily used by the City Council for the posting of such notices, pursuant to the Act.

ADOPTED THIS 16th DAY OF JUNE, 2022.

Justin Clifton, City Manager
ATTEST:

Monique Lomeli, CMC, Interim City Clerk

Item 1O - 29
Resolution No.

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, Monique Lomeli, CMC, Interim City Clerk of the City of Palm Springs, hereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on June 16, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Monique Lomeli, CMC, Interim City Clerk
City of Palm Springs, California

Item 1O - 30

CITY COUNCIL STAFF REPORT
06/16/2022   1. P.

City Clerk -

SUBJECT
APPROVE A THREE-YEAR AGREEMENT WITH PUB CONSTRUCTION, INC. (A9136) FOR BUILDING REPAIR AND RENOVATION SERVICES
RECOMMENDATION:

Approve Agreement No. 9136 with PUB Construction, Inc. to provide building repair and renovation services for a three-year term in an amount not to exceed $300,000, beginning June 20, 2022, through June 19, 2025, with two one-year extension options at the City’s sole discretion.

1. Authorize the City Manager or his designee to execute all necessary documents.2.

Attachments
Item 1P

CITY COUNCIL STAFF REPORT
DATE: JUNE 16, 2022 CONSENT CALENDAR
SUBJECT: APPROVE A THREE-YEAR AGREEMENT WITH PUB CONSTRUCTION, INC. (A9136) FOR BUILDING REPAIR AND RENOVATION SERVICES FROM: Justin Clifton, City Manager
BY: Maintenance & Facilities Department
SUMMARY:

This action will approve a three-year agreement with PUB Construction, Inc. in an amount not to exceed $300,000 for building repair and renovation services.

RECOMMENDATION:

1. Approve Agreement No. 9136 (Attachment A ) with PUB Construction , Inc. to provide building repair and renovation services for a three-year term in an amount not to exceed $300,000, beginning June 20, 2022 through June 19, 2025, with two one-year extension options at the City’s sole discretion.

2. Authorize the City Manager or his designee to execute all necessary documents.

BUSINESS PRINCIPAL DISCLOSURE:

According to the Public Integrity Disclosure form ( Attachment B) submitted on May 12, 2022, PUB Construction, Inc. is registered in the State of California. The owner is Chris Yi with 100% beneficial interest in entity.

STAFF ANALYSIS:

The contract with PUB Construction, Inc. is an on-call, as-needed maintenance type contract. Bids were used to determine the lowest, responsive, responsible bidder and to set the unit rates for the contract; however, the actual amount of the contract is based on the budgeted amount set by the Department and will therefore not match the bid amounts.

These services were recently bid, and a contract was awarded by Council at the April 7, 2022 meeting. However, the Contractor decided at the time of execution of the contract Item 1P - 1
City Council Staff Report
June 16, 2022 -- Page 2
Award of City-Wide Building Repair Contract
that he could no longer provide the services due to staffing shortages. Therefore, a decision was made by the Department to rebid the work.

An Invitation for Bids (IFB 22 -19) was initiated by the City’s Procurement & Contracting Department on April 18, 2022, based on Maintenance & Facilities specifications. Bids were solicited directly via the City’s procurement vendor portal, PlanetBids. In addition, the IFB was advertised in The Desert Sun. One bid was received by the May 12, 2022, deadline as follows:

Vendor Bid
PUB Construction, Inc. $24,780.00
Although only one bid was received, the prices were compared to those received during the previous bid process and were found to be fair and reasonable.

The contract is for three years with two optional one-year renewals and the unit pricing is fixed for the first year and subject to a C PI increase in the following years . Staff recommends approval of Contract Services Agreement No. 9136 with PUB Construction, Inc. for a three-year term in the amount not to exceed $300,000 effective June 20, 2022 through June 19, 2025, subject to two one-year optional extensions at the sole discretion of the City.

ENVIRONMENTAL ASSESSMENT:

The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to appro ve contracts for the above -mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports City Council Priority 3A, Community Infrastructure – Improve City Facilities.

FISCAL IMPACT:

Sufficient funds are budgeted and available to cover the increased cost to be incurred through the remainder of the current Fiscal Year 2021-22. Staff has included additional funding appropriation requests in the Fiscal Year 2022-23 budget for the new cont ract services.

Item 1P - 2
City Council Staff Report
June 16, 2022 -- Page 3
Award of City-Wide Building Repair Contract
REVIEWED BY:

Procurement Manager: Kim Baker
Assistant City Manager: Teresa Gallavan
City Manager: Justin Clifton
ATTACHMENTS:

A. Agreement No. A9136
B. Public Integrity Disclosure
Item 1P - 3
Revised 2.9.22 Page 1 of 25
CONTRACT SERVICES AGREEMENT A9136

BUILDING REPAIR AND RENOVATION SERVICES
THIS AGREEMENT FOR CONTRACT SERVICES (“Agreement”) is made and entered into on June 20, 2022 , by and between the City of Palm Springs, a Californi a charter city and municipal c orporation (“City”), and PUB Construction, Inc. , a California corporation , (“Contractor”). City and Contractor are individually referred to as “Party” and are collectively referred to as the “Parties”.

RECITALS
A. City requires the services of a licensed contr actor, for building repair and renovation services, (“Project”).

B. Contractor has submitted to City a proposal to provid e building repair and renovation services, to City under the terms of this Agreement.

C. Based on its experience , education, training, and reputation, Contractor is qualified and desires to provide the necessary services to City for the Project.

D. City desires to retain the services of Contractor for the Project.

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herei n, and other valuable consider ation, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. CONTRACTOR SERVICES

1.1 Scope of Services . In compliance with all terms and conditions of this Agreement, Contractor shall provide services to City as described in the Scope of Services/Work attached to this Agreement as Exhibit “A” and incorporated herein by reference (the “ Services” or “Work”). Exhibit "A" includes the agreed upon schedule of performance and the schedule of fees. Contractor warrants that the Services shall be performed in a competent, professional, and satisfactory manner consistent with the level of care and skill ordinarily exercised by high quality, experien ced, and well qualified members of the profession currently pract icing under similar conditions. In the event of any inconsistency between the terms contained in the Scope of Services/Work and the terms set forth in this Agreement, the terms set forth in this Agreement shall govern.

1.2 Compliance with Law . Contractor shall comply with all applicable federal, state, and local laws, statutes and ordinances and all lawful orders, rules, and regulations when performing the Services. Contractor shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement.

Item 1P - 4
Revised 2.9.22 Page 2 of 25

1.3 Licenses and Permits . Contractor shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement.

1.4 Familiarity with Work. By executing this Agreement, Contractor warrants that it has carefully considered how the Work should be performed and fully understands the facilities, difficulties, and restrictions attending performance of the Work under this Agreement.

2. TIME FOR COMPLETION
The time for completion of the Services to be performed by Contractor is an essential condition of this Agreement. Contractor shall prosecute regularly and diligently the work of this Agreement acco rding to the agreed upon schedule of performance set forth in Exhibit “A .” Neither Party shall be accountable for delays in performance caused by any condition beyond the reasonable control and without the fault or negligence of the non-performing Party. Delays shall not entitle Contractor to any additional compensation regardless of the Party responsible for the delay.

3. COMPENSATION OF CONTRACTOR

3.1 Compensation of Contractor. Contractor shall be compensated and rei mbursed for the services rendered under this Agreement in accordance with the schedule of fees set forth in Exhibit “A”. The total amount of Compensation shall not exceed $300,000.00.

3.2 Method of Payment . In any month in which Contractor wishes to rece ive payment, Contractor shall submit to City an invoice for Services rendered prior to the date of the invoice, no later than the first working day of such month , in the form approved by City’s finance director . Payments shall be based on the hourly rates set forth in Exhibit “A” for authorized services performed. City shall pay Contractor for all expenses stated in the invoice that are approved by City and consistent with this Agreement, within thirty (30) days of receipt of Contractor’s invoice.

3.3 Changes. In the event any change or changes in the Services is requested by City, Parties shall execute a written amendment to this Agreement, specifying all proposed amendments, including, but not limited to, any additional fees. An amendment may be enter ed into:

A. To provide for revi sions or modifications to docu ments, work product, or Work, when required by the enactment or revision of any subsequent law; or B. To provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Contractor’s profession.

3.4 Appropriations. This Agreement is subject to, and contingent upon, funds being appropriated by the City Council of City for each fiscal year . If such appropriations are not made, this Agreement shall automatically terminate without penalty to City.

Item 1P - 5
Revised 2.9.22 Page 3 of 25

4. PERFORMANCE SCHEDULE

4.1 Time of Essence. Time is of the essence in the performance of this Agreement.

4.2 Schedule of Performance. All Services rendered under this Agreement shall be performed under the agreed upon schedule of perform ance set forth in Exhibit “A .” Any time period extension must be approved in writing by the Contract Officer.

4.3 Force Majeure. The time for performance of Services to be rendered under this Agreement may be extended becaus e of any delays due to a Force Majeure Event, if Contractor notifies the Contract Officer within ten (10) days of the commencement of the Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Contractor’s performance a nd is one or more of the follo wing: (1) Acts of God or other natural disasters occurring at the project site; (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 Work); and (4) pandemics, epidemics or quarantine restrictions . For purposes of this section, “orders of governmental auth orities,” includes ordinances, emergency proclamations and or ders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority. After Contractor notification, the Contract Officer shall investigate the facts and the ext ent of any necessary delay and extend the time for performing the Services for the period of the enforced delay when and if , in the Contract Officer’s judgment, such delay is justified. The Contract Officer’s determination s hall be final and conclusive up on the Parties to this Agreement. The Contractor will not receive an adjustment to the contract price or any other compensation. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this Agreement, this Agreement s hall continue in full force and effect for a period of three years , commencing on June 20, 2022, and ending on June 19, 2025, unless extended by mutual written agreement of the Parties.

4.5 Termination Prior to Expiration of Term . City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Contractor. W here termination is due to the fault of Contractor and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the City . Upon receipt of the notice of terminati on, Contractor shall immediately cease all Services except such as may be specifically approved by the Contract Officer. Contractor shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Contractor shall not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation for ter mination of Work. If the termination is for cause, the City shall have the right to take whatever steps it deems necessary to correct Contractor's deficiencies and charge the cost thereof to Contractor, who shall be liable for the full cost of the City's corrective action .

Contractor may not terminate this Agreement except for cause, upon thirty (30) days written notice to City.

Item 1P - 6
Revised 2.9.22 Page 4 of 25

5. COORDINATION OF WORK

5.1 Representative of Contractor. The following principal of Contractor is designated as being the prin cipal and representative of Contractor authorized to act and make all decisions in its behalf with respect to the specified Services: Chris Yi (name), President (title).

It is expressly understood that the experi ence, knowledge, education, capability, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement.

Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing al l activitie s of Contractor and devoting sufficient time to personally supervise the Services under this Agreement . The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

5.2 Contract Officer . The Contract Of ficer shall be the City Manager or his/her designee ("Contract Officer"). Contractor shall be responsible for keeping the Contract Officer fully informed of the progress of the performance of the Services. Contractor shall refer any decisions that must be made by City to th e Contract Officer. Unless otherwise specified, any approval of City shall mean the approval of the Contract Officer.

5.3 Prohibition Against Subcontracting or Assignment . The experience, knowledge, education, capability, an d reputatio n of Contractor, it s pr incipals and employees, were a substantial inducement for City to enter into this Agreement. Contractor shall not contract with any other individual or entity to perform any Services required under this Agreement without the City's express written approval. In addition, neither this Agreement nor any interest may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Subcontracts, if any, shall contain a provision making them subj ect to all provisio ns stipulated in this Agreement including without limitation the insurance and indemnification requirements. If Contractor is permitted to subcontract any part of this Agreement by City, Contractor shall be responsible to Cit y for the a cts and omissions o f i ts subcontractor(s) in the same manner as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City.

5.4 Independent Contractor. Neither City nor any of its e mployees shall have any control over the manner, mode , or means by which Contractor, its agents or employees, perform the Services required, except as otherwise specified. Contractor shall perform all required Services as an independent contractor of City and s hall not be an employee of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role; however, City shall have the right to review Contractor’s work product, result, and advice. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Contractor shall pay all wages, salaries, and other amounts due personnel in connection with their performance under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ comp ensation insurance. Contractor shall not have any authority to bind City in any manner.

5.5 Personnel. Contractor agrees to assign the following individuals to perform the services in this Agreement. Contractor shall not alter the assignment of the foll owing personnel Item 1P - 7
Revised 2.9.22 Page 5 of 25
without the prior written approval of the Contract Officer. Acting through the City Manager, the City shall have the unrestricted right to order the removal of any personnel assigned by Contractor by providing written notice to Contractor.

Name: Title:

Chris Yi President

5.6 California Labor Code Requirements.

A. Contractor is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the paym ent of prevailing wage ra tes a nd the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, i ndemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be manda tory upon t he Contractor and all subcon tractors 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 p ayroll 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).

B. If the Services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, 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 subcon tractors, as applicable. This Agreement 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.

6. INSURANCE
Contractor shall procure and maintain, at its sole cost and expense, policies of insurance as set forth in the attached Exhibit "B", incorporated herein by reference.

7. INDEMNIFICATION.

7.1 Indemnification. To the fullest extent permitted by law, Contractor shall defend (at Contractor’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any a nd all liabilities, actions, suits, claims, demands, losses, costs, Item 1P - 8
Revised 2.9.22 Page 6 of 25
judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to o r d eath of persons (Contractor’s employees included) , for damage to property, including property owned by City, for any violation of any federal, state, or local law or ordinance or in any manner arising out of, pertaining to, or incident to any ac ts, errors or omissions, or willful misconduct committed by Contractor, its officers, employees , representatives, and agents, that arise out of or relate to Contractor’s performance of Services or this Agreement. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the Indemnified Parties . Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Contractor’s indemnification obligation or other liability under this Agreement. Contractor’s indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final.

7.2 Design Professional Services Indemnification and Reimbursement. If Contractor’s obligation to defend, indemnify, and/or hold har mless arises out of Contractor’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Contractor’s indemnification obligation shall be limited to the extent which the C laims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor in the performance of the Services or this Agreement , and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction, Contractor’s liability for such claim, including the cost to defend, shall not exceed the Contractor’s proportionate percentage of fault.

8. RECORDS AND REPORTS

8.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer reports concerning the performance of the Services required by this Agreement , or as the Contract Officer shall require.

8.2 Records. Contractor shall keep complete, accurate, and detailed accounts of all time, costs, expe nses, and e xpenditures pertainin g in any way to this Agreement. Contractor shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and enable the Contract Officer to eval uate the performance of s uch Services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit , and make records and transcripts from such records.

8.3 Ownership of Documents . All drawin gs, s pecifications, reports, records, documents, and other materials prepared by Contractor in the performance of this Agreement shall be the property of City . Contractor shall deliver all above-referenced documents to City upon request of the Contract Officer or upon the termination of this Agreement. Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights or ownership of the documents and materials. Contractor may retain copies of such documents for Contractor's own use. Contractor shall have an unrestricted right to use the concepts embodied in such documents.

Item 1P - 9
Revised 2.9.22 Page 7 of 25

8.4 Release of Documents . All drawings, specifications, reports, records, documents, and other materials prepared by Contractor in the performance of Services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer.

8.5 Audit and Inspection of Records . After receipt of reasonable notice and during the regular bu siness hours of City, Contractor shall provide City, or other agents of City, such access to Contractor’s books, records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work dat a, documents, and activities directly related to Contractor’s performance under this Agreement. Contractor shall maintain such books, records, data, and documents in accordance with generally accepted accounting principles and sha ll clearly identify and m ake such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

9. ENFORCEMENT OF AGREEMENT

9.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California.

Legal actions concerning any dispute, claim , or matter arising out of or in relation to this Agreement shal l be instituted in the Su perior C ourt of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

9.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Pa rties.

Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of th e various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

9.3 Waiver. No delay or omission in the ex ercise of any right or remedy of a non - defaulting Party on any default shall impair such right or remedy or be construed as a waiver.

No consent or approval of City shall be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contractor. Any waiver by either Party of any default must be in writing. No such waiver shall be a waiver of any other default concerning the same or any other provision of this Agreement.

9.4 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative . The exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at th e same o r d ifferent times, of any other rights or remedies for the same default or any other default by the other Party.

Item 1P - 10
Revised 2.9.22 Page 8 of 25

9.5 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, corre ct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, a declaratory judgment, or any other remedy consistent with the purposes of this Agreement.

9.6 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non -judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non -prevailing Party all reasonable costs and expenses. These include but are not limited to reasonable attorney fees, expert contractor fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding.

10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

10.1 Non-Liability of City Officers and Employees . No officer or employee of City shall be personally liable to the Contractor, or any successor -in-interest, in the event of any default or breach by City or for any amount which may become due to the Contractor or its successor, or for breach of any obligation of the terms of this Agreement.

10.2 Conflict of Interest. Contractor acknowledges that no officer or employee of the City has or shall have an y direct or indirect financial interest in this Agreement, nor shall Contractor enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one (1) year thereafter. Contractor warrants that Contractor has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.

10.3 Covenant Against Discrimination . In connection with its performance under this Agree ment, Contractor shall no t discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or lingu istic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rat es of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provisi on of benefits, relating to non- discrimination in city contracting.

11. MISCELLANEOUS PROVISIONS

11.1 Notice. Any notice, demand, request, consent, approval, or communication that either Party desires, or is required to give to the other Party or any oth er person shall be in Item 1P - 11
Revised 2.9.22 Page 9 of 25
writing and either served personally or sent by pre -paid, first-class mail to the address set forth below. Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed as provided in this Section. Either Party may change its address by notifying the other Party of the change of address in writing.

To City: City of Palm Springs
Attention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Contractor: PUB Construction, Inc.

Attention: Chris Yi
23545 Palomino Dr., #104
Diamond Bar, CA 91765

11.2 Integrated Agreement. This Agreement constitutes the entire understanding between the Parties and supersedes and cancels all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to th e subject matter in this Agreement.

11.3 Amendment. No amendments or other modifications of this Agreement shall be binding unless through written agreement signed by all Parties.

11.4 Severability. Whenever possible, each provision of this Agreement s hall b e interpreted in such a manner as to be effective and valid under applicable law . In the event that any one or more of the phrases, sentences, clauses, paragraphs, or secti ons contained in this Agreement shall be declar ed invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be i nterpreted to carry out the intent of the Parties.

11.5 Successors in Interest . This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.

11.6 Third Party Benef iciary. Except as may be expressly provided fo r in this Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third -party beneficiary or otherwise, upon any entity or person not a party to this Agreement.

11.7 Recitals. The above -referenced Recitals are hereby incorporated into the Agreement as though fully set forth in this Agreement and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.

11.8 Authority. The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement on behalf of Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement.

Item 1P - 12
Revised 2.9.22 Page 10 of 25

11.9 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON NEXT PAGE]
Item 1P - 13
Revised 2.9.22 Page 11 of 25

SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND PUB CONSTRUCTION, INC.

IN WITNESS WHEREOF, t he Parties have executed this Agreement as of the dates stated below.

CONTRACTOR:

By: _______________________________________ By: _________________________________________ Signature Signature
(2nd signature required for Corporations)
Date: Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No.

APPROVED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ Jeffrey S. Ballinger, Monique Lomeli,
City Attorney City Clerk
APPROVED:

By: _______________________________ Date:

City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
Item 1P - 14
Revised 2.9.22 Page 12 of 25
EXHIBIT “A”
CONTRACTOR’S

SCOPE OF SERVICES/WORK
Including,
Schedule of Fees
And
Schedule of Performance
Item 1P - 15
Revised 2.9.22 Page 13 of 25

1.1 Scope of Work:

A. Contractor shall furnish labor, materials, and equipment to perform building repairs and minor renovation (Work) on an as -requested basis in city facilities included in this solicitation. The scope of Work shall include, but is not limited to carpentry, demolition, drywall, concrete block, stucco, asphalt, finishes and other work normally under the supervision of a general construction contractor. This may include project estimation and budgeting of work.

B. All work shall be performed by and billed to the lowest applicable job class level.

The majority of the Work requested under this contract is to be performed by one (1) trade person per job. All s ervice shall be performed by personne l who are journeyman level (or e quivalent a ccording to industry norms) as described by industry standards. The Contractor m ust receive prior written approval fro m the City before assigning more than one (1) trade person per job. On jobs requiring more than three (3) trade persons, the Con tractor sh all be required to designate one (1) employee to perform the duties and responsi bilities of Foreman and that person shall receive compensation as such.

C. Response time: The Contr actor shall respond to emergency calls for service or repair within twenty -four (24) hours. Emergency responses to include weekends, after-hours and holidays.

D. Correction of work deficiencies: The Contractor shall correct work rejected by the City as failin g to conform to the requirements in the project documents within thirty days. The Contractor shall bear the cost of correcting such rejec ted work, including the costs of uncovering, replacement, and additional testing.

If the Contractor fails to commence correction of noncon forming work within a seven day period after written notice, the c ity may co rrect the deficiencies by other means. In such case, the City may exercise rights and reme dies as provided in section 9.4 of agreement.

In addition to the Contractor’s other obligations, the contract shall, for a period of one year after su bstantial comple tion, correct work not conforming to the requirements of the work.

E. Compliance with regulations and permits: Contractor shall comply with or exceed all relevant statutes, c odes, rules, and regulations as may be applicable to this contract and shall be responsible for securing any and all permits a s required by the governing authority. The C ity shall reimbur se the C ontractor for only t he actual cost of said permits.

F. Equipment and supplies: Contractor is to provide, at no additional cost to the City, all necessary equipment, hand, and power tools and supplies typically used by the job classificatio n and/or ass igned trade person . Mechanical o r ot her equipment used for Work m ust be o f a type that is approved by the industry and shall be operated in such a manner as not to cause danger of any nature to e mployees or other persons or damage to the buildi ng structure, fixtures, furnishings, etc . The City, at its sole and ab solute discretion, may approve to pay for equipment, tools, or materials it determines is not typical of that job classification.

Item 1P - 16
Revised 2.9.22 Page 14 of 25
Contractor must not store equipment and/or supplies on any City property.

G. General safety requir ements: The Co ntractor shal l b e r esponsible for all safety precautions required in connection w ith their work, including regulations of the Occupational Safety and Health Administration (OSHA) and other governing agencies. The City reserves the right to ov ersee al l service work from a safety standpoint and require the Contractor to take appropriate action to ensur e safety and code compliance.

H. Damages: Necessary precautions shall be taken at all times to protect person s, property and equipment from injur y or damage. Any d amage shall b e r eported, reviewed, and discussed with the facility manager.

I. Security: The Contractor is responsible for en suring all entries/exits to the wo rk area are secure during the discharge of the ir duties (d oors must not be propped open). The Contractor does not ha ve the authority and shall not grant access to any person requesting entry into the building or specific work area.

Any items or articles of apparent value found by the Contractor’s personnel in any areas of the building or si te shall be turned over to the facility manager or on-site Security. Any suspicious articles th at may be found , or pe rsons loitering or conducting themselves in a m anner to arouse suspicion or possibly in need of help, shall be immediately reported to Police.

J. Disposal and salvage of waste material: Contractor must dispose of or salvage all waste material generated by its service operations under the contract in an off-site location, in compliance with all applicable l aws and regulations. City encourages Contractor to salvage material in an environmentally friendly manner if possible.

City retains the right to retain materials or have anothe r party salvage material, at the discretion and direction of the facility manager.

K. Uniforms and face coverings: The Con tractor shall b e required to p roperly uniform its service personnel and they shall present a clean and neat appearance at all times. Day service personnel shall have color-coordinated shirts with company name and/or logo provided by the Contractor.

Contractor vehicles must display company logo and name.

Contractor must a bide by C ity’s requir ements f or visiting C ity buildings, including wearing required face coverings.

L. Conduct of contractor’s employees on-site: The following behavior is not allowed on City premises:
• Using improper language.
• Acting in a loud, boist erous, amplified music or o therwise unprofessional manner.
• Engaging in harassment or otherwise offensive conduct. • Allowing unauthorized persons, incl uding fam ily and fr iends, to enter the building or area in whi ch Contractor’s employee is ass igned. Visitors must stay in the public lobby until Contractor’s employee arrives.

Item 1P - 17
Revised 2.9.22 Page 15 of 25
• Opening or going through any C ity property, including furnishings, or use of City equipment or property.
• Theft or aiding in the theft of City property.
• Sleeping on the job.
• Taking scrap material.
• Using tobacco products, inc luding electronic smoking devices, anywhere on City premises.
• Using City tools, equipment or supplies without prior authorization. • Possessing firearms or any ot her weapon, eve n if legally pe rmitted to carry firearms or other dangerous weapons.
• Sexual misco nduct, sexual abuse, sexual harassment, as defined b y state and/or federal law.

Contractor’s employ ees deemed non compliant by C ity will be removed immediately and replaced within twenty-four (24) hours. Contractor’s employees must submit to we apons screening as directed. Contractor’s employees must be able to understand, read and communicate in English under the perf ormance o f this Contract. Contractor must obser ve and comply with all of C ity’s present and future rules and regulations regarding conduct on the premises.

1.2 Insurance Requirements:

The Contracto r shal l meet all in surance requirements of the City, including but not limited t o, the provisions of persona l and pr operty liability, incl uding automobile coverage, and Worker's Compensation, in limits acceptable to the City.

1.3 License Requirement:

1. Be licensed in accordance with the Palm Springs Municipal Code, Chapter 3.40 through 3.96 entitled Business Tax;

2. Possess any other applicable license required in the performance of these services.

1.4 Term of Contract:

The term of this contract will be for three years, with two, one year renewal options upon mutual consent of the City and the Contractor.

1.5 Option to Renew:

At the sole discretion of the Cit y, the Contract may be renewed for two one -year options or any portion thereof. If the City exercises its option to ex tend, the unit pric es may be adjusted (decrease d or increased) at the beginning of any such renewal period t o correspond wi th the most rec ent annual chang e to the Consumer Price Index for All Urban Consumers as published by the U.S. Bureau of Labor Statist ics for the Riverside- San Bernardino-Ontario Areas.

1.6 Adjustment of Services:

The City reserves the right to r educe or increase, or otherwis e a djust the scope of services.

1.7 Pricing:

Item 1P - 18
Revised 2.9.22 Page 16 of 25

1. The pricing included in this Contract shall be firm for the first year.

2. The unit prices may be adjusted (decreased or increased) once a year to correspond with the most recent annual change to the Consumer Price Index for All Urban Consumers as published by the U.S. Bureaus of Labor Statistics for the Riverside-San Bernardino-Ontario Areas.

3. The City will only pay for the items listed on the bid form, and perm it and disposal fees. This does not include access to public utilities. Contractor must incorporate all of its costs in its unit bid prices, including but not limited to labor, supervision, project manageme nt, overhead, pro fit, onboarding training, t ravel, mileage, truck charges, fuel charges, service call charges, parking, delivery, portal-to-portal charges, environmental fees, shop supplies and consumable incidental materials. The City will not pay for sub contractors, rent al of equipment/tools, an d purcha se of materials/supplies unless the City authorized payment of the applicable items.

1.8 Payment:

The resulting contract for these services is an on -call as needed contract. No specific amount of work is guaranteed. The contract value is an estimated value o nly. All work authorized under the contract will be compensa ted on a time and material basis as outlined in the Invoicing Section.

1.9 Invoicing:

Contractor will submit an itemized invoi ce monthly. Billings must reference a purchase order number and shall indicate the unit (contract) price. Contractor will be paid for the actual hours worked at the rates shown in the contract. Parts, materials, equipment, and subcontractor costs will be compensated at actual cost with receipts required with allowable markup as outline in the contract . Contractor shall break out the line items on the invoice in accordance with the line items on the bid form. Contractor must provide back-up documentation for materials, subcontractor, rented equipment, permits, disposal and recycling fees. Invoices that are submitted with incorrect prices m ay be returned for correction before any payments to the contractor are au thorized. It shall be the contractor’s responsibility to submit a correct invoice. The City shall not be res ponsible for payment until a c orrect invoice is received. The invoice shal l be accompanied by receipts, dated, and signed by a City Employee, verifying the work was done. Invoice s and receipts will be submitted to the Contract Officer for approval. All inv oices are to be sent as one document, per month to: [email protected].

1.10 Special Security Requirements – For Palm Springs Police Department and Palm Springs International Airport:

1. POLICE DEPARTMENT:

Any perso nnel of Contractor assigned to perform servi ces at th e P alm Spring s Police Department must pass a Criminal Histo ry Records Check (CHRC) prior to performing services at this facility. The CHRC(s) will b e provided at no charge t o Contractor. Contractor shall coordinate the record checks with the City ’s Contract Officer. The City will accept as evidence of passing such a test a LiveScan card issued by another government agency.

Item 1P - 19

Revised 2.9.22 Page 17 of 25

2. AIRPORT SECURED ACCESS TO WORK AREAS:
a. Criminal history Records Check (CHRC) and TSA Security Threat Assessment (STA) – The Con tractor will be required to submit the City, prior to the commencement of s ervices, an Authorized Si gnatory Aut hority Le tter authorizing specific Contracto r representatives to app rove the iss uance of Airport Ident ification badg es a nd the processing of a fi ngerprint CHRC and STAs. Electronic links to this letter and th e Fingerprint/Badge application can be found on the Airport’s website at http://www.palm-springs.ca.gov b. Under certai n ci rcumstances, and out of t he con trol of t he City, security measures may change on short notice. No de viations from any securi ty measure shall be allowed at any time.
c. Restricted Are a Access – All Contrac tor per sonnel w ho re quire unescorted access to the restricted areas of the Airp ort, prior to the issuance of an Airport Identification Badge , must su ccessfully complete a fingerpr int ba sed CH RC and Security Threat Assessment (STA) . In accordance with CFR 49 1542.209, the CHRC must disclose that the applicant has not been convicted, or found not guilty by reason of insanity, of any of the disq ualifying crimes listed below or as sta ted in 49 CFR 1542.209, during the 10 years before the date of the individual’s application for unescorted access authority, or while the individual has une scorted access au thority. The disqualifying criminal offense s are as follows:
1) Forgery of certificates, false making of aircraft, and other registration violations; 49 U.S.C. 46306.
2) Interference with air navigation; 49 U.S.C. 46308.
3) Improper transportation of a hazardous material; 49 U.S.C. 46312. 4) Aircraft piracy; 49 U.S.C. 46502.
5) Interference with flight crew members or flight attendants; 49 U.S.C. 46504.
6) Commission of certain crimes aboard aircraft in flight; 46506. 7) Carrying a weapon or explosive aboard aircraft; 49 U.S.C. 46506. 8) Conveying false information and threats; 49 U.S.C. 46507. 9) Aircraft piracy outside the special aircraft jurisdiction of the United States; 49 U.S.C. 46502(b).
10) Lighting violations involving transporting controlled substances; 49 U.S.C. 46315.
11) Unlawful entry into an aircraft or airport area that serves air carriers or foreign air carriers contrary to established security requirements; 49 U.S.C. 46314.
12) Destruction of an aircraft or aircraft facility; 18 U.S.C. 32. 13) Murder.

Item 1P - 20

Revised 2.9.22 Page 18 of 25
14) Assault with intent to murder.
15) Espionage.
16) Sedition.
17) Kidnapping or hostage taking.
18) Treason.
19) Rape or aggravated sexual abuse.
20) Unlawful possession, use, sale, distribution, or manufacture of an explosive or weapon.
21) Extortion.
22) Armed or felony unarmed robbery.
23) Distribution of, or intent to distribute, a controlled substance; 24) Felony arson.
25) Felony involving a threat.
26) Felony involving:
i) Willful destruction of property;
ii) Importation or manufacture of a controlled substance; iii) Burglary;
iv) Theft;
v) Dishonesty, fraud, or misrepresentation;
vi) Possession or distribution of stolen property;
vii) Aggravated assault;
viii) Bribery; or
ix) Illegal possession of a con trolled substance punishable by a maximum term of imprisonment of more than 1 year.
27) Violence at international airports; 18 U.S.C. 37.
28) Conspiracy or attempt to commit any of the criminal acts listed.

3. Employee Security Badges – All Employees, Agents, Vendors, Invitee s, Etc. of the Contractor or Subcontra ctors requiring access to the work s ite shall, in accordance with the PS P Airport Security Plan, be required to display airport issued identific ation or be u nder the escort by prope rly bad ged personnel.

Supervisors sha ll be badged w ith a Palm S prings Inte rnational Airport Photo Badge. These badges will be iden tified nume rically and iss ued to individual employees w ith a permanent record maintained on each individual to whom a badge is issued. At the completion of the c ontract, all bad ges will be returned to airport, or a charge of $60 pe r badge (subject to chan ge) will be assessed for all badges not returned . As part of the badge application process , each a pplicant will Item 1P - 21
Revised 2.9.22 Page 19 of 25
be fingerprinted for u se i n an FBI Criminal Recor ds search. Any pe rson who se criminal record reveals offenses listed by the FAA as disqualifyi ng offenses wi ll be denied a badge and will be prohibited from unescorted access to the project site.

All required paperwork and ID badg e applications shall be s ubmitted a minimum of two weeks before issuance of any badge . The Contractor an d its staff ar e responsible for attending SIDA training and completing security badge application.

Attendance of the video-based class and issuance of the badge may take in exc ess of 3 hours. There will be a $50 charge (subject to change) for the FBI background check a nd fingerprinting process, and a $50 charge (subject to change) for the badge for a total of $100.00.

4. Violations - All viola tions of Airpo rt s ecurity are also v iolations of the City of Palm Springs Municip al Title 16, California Vehicle code and/or the C ode of Federal Reg ulations. Any s uch violation may res ult in arres t, the issuance of a citation and/or the immediate revocation of access privileges.

Item 1P - 22
Revised 2.9.22 Page 20 of 25
Item 1P - 23

ATTACHMENT F
810 FORM
INVITATION FOR BIOS (IFB 22-19)

BUILDING REPAIR ANO RENOVATION SERVICES
Responding to lh1s IFB for building repair and 1enova1ion seiv1ces lhe undersigned bldder proposes and agrees to provide the services and work ,n accordance with the spec ficat,cns Bidder proposes and agrees to furnish all labor, equipment materials, supe rv1s,or anc 5,e r,i :,, necessary to complete said Work in accordance with the Specif1ca1ions o' :he City of Palm Springs and will accept as full payment therefore, the followir g unit cost amounts The C t'f of Palm Springs will not accept any additional charges. fees. etc. that are no: already 11cluced "' incorporated 1n the below unit costs.

The Unit Pricing shall remain fixed for the first year. For additional years, Con tractor rra-y reques:
a price adjustment not to exceed the Bureau of Labor Statistic's Consumer Price Index (CPI) for the Riverside-San Bernardino-Ontario region for the prior 12 month pe• 10d effeclive on :t:<e anniversary date. Optional renewal years 4 and 5, and any associated CPI i nc,ease. are at the mutual consent of the City and the Contractor.

ESTIMATED UNIT PRICE SUBTOTAL

ITEM DESCRIPTION UNIT QUANTITY
I Superinlende nt Regular Bilhng Rate IIR so {7:00AM s·oOPMl OA~~ • ij <M M 2 Superintendent Overtime Billing Rat, HR 5 (5:00PM - 7 OOAMl 115. !< • 5l" n n 3 Superintendent Holiday Bilhng Rate HR ~ (Satu1dav/Sundav/Ho hdavs) /)(}. •.:: • J <:/l /l/\ 4 General Foreman Regular Billing HR 100 Rate (7:00AM - 5:00PM) IA/I•~ $ IA AAA /IA 5 General Foreman Overtime Billing HR s Rate (S·OOPM - 7:00AM) , ?re •f!. $ t•e AA 6 General Foreman Ho!ic!ay Billing HR 5 JLO ~ Rate (Satu rdav/Sundav/Holidavl • OM /IA
7 Carpenter Regular Billing Rate HR 25 17:00AM - s·oOPMI qq '!C- $ 1U7" M\ 8 Carpenler Overtime Billing Rate HR s 15.00PM 7 OOAMl J.,._1!-~ s LU, An 9 Car penler Hoti<.l;::iy 8 1ll irig Rate HR 5 ISaturdav/Sundav/Ho hdavl JI,'{ •,<, $ .,11 AA 10 Laborer Regula r Bilhng Rate HR 25 Oh~ (7:00AM - 5 OOPM) $ J ?<A I)(, 11 Laborer Ove rtime Bilhng Rate HR 5 (5:00PM 7.00AM) I J Ii. lit, .. i A A A - 12 Laborer Holiday Billing Rate HR 5 CSaturdav/Sundav/Ho lidavl /'{,', , •..-:. • >UAA
TOTAL i: ..... , .. ,. ""'

I I I I

I I I I
Revised 2.9.22 Page 21 of 25
Item 1P - 24
ITEM DESCRIPTIO N ¾ MARK-UP
13 Parts and Materials (Enter vour % mark-uo for cart s & materials\ ,-<% ·14 Eou1oment Rent~l lFnte r vour -0.k; mark-uo for Anwoment rentahil ,,.., ·15 Subcontractor {Lntcr vo1.1r % mork uo for 8Lbcontractore) '<°'7, 'Please note: This bid form is to determine t he lowest bidder and will be used to establis1 the contract uni! prices. The contract value will be set ;;t the Cily budget amount.

Cert,fred by. ______ _______________ __ _
Firm Name:_ .... P..,l.1...IBL.<..;C .. ,2,,_n,..s"-f uC!J.J/ , .... t ... 1' o"'-'-'n-+) _,_IV,_,).,_,''"'-.--------- Si9natu,e of Authonzed Person- ____ ...,..:_ ~ -,,;. /? ________ _ /~ Printed Name· __ c ...... bur...,·1..Jsl....JYu1 _______________ _ Ti:le __ __.B .... c ... e .... s .... i ... rl ... e .... n .... + _______ ______ ___ _ Date· _ _u,5_· lu.O._-.Lbu.t0.a.b ..a6 ____________ _ _ Revised 2.9.22 Page 22 of 25
EXHIBIT “B”

INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
Item 1P - 25
Revised 2.9.22 Page 23 of 25

INSURANCE

1. Procurement and Maintenance of Insurance. Contractor shall procure and maintain public liability and property damage insurance against all claims for inju ries against persons or damages t o property resulting from Contractor’s performance under this Agreement.

Contractor shall procure and maintain all insurance at its sole cost and expense, in a form and content satisfactory to the City, and submit concurre ntly with its execution of this A greement.

Contractor shall also carry workers’ compensation insurance in accordance with California workers’ compensation laws. Such insurance shall be kept in full force and effect during the term of t his Agreement , incl uding any e xtensions. Such insur ance shall not be cancelable without thirty (30) days advance written notice to City of any proposed cancellation. Certificates of insurance evidencing the foregoing and designating the City, its elected officials, officer s, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, certificates, and endorse ments evidencing the same shall not be construed as a limitation of Contractor’s obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers.

2. Minimum Scope of Insurance . The minimum amount of in surance requir ed under this Agreement shall be as follows:

1. Comprehensive general liability and personal injury with limits of at least one million dollars ($1,000,000.00) combined single limit coverage per occurrence and two million dollars ($2,000,000) general aggregate;

2. Automobile liability insur ance with limits of at least one million dollars ($1,000,000.00) per occurrence;

3. Professional liability (errors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dol lars ($2,000,000) annual aggregate is:
_________ required
____X____ is not required;

4. Workers’ Compensation insurance in the statutory amount as required by the State of California and Employer’s Liability Insurance with li mits of at least on e mil lion dollars $1 million per occurrence. If Contractor has no employees, Contractor shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3. Primary Insurance. For any claims related to th is Agreement, Contractor’s insurance coverage shall be primary with respect to the City and its respective elected officials, officers, employees, agents, and volunteers. Any insurance or self -insurance maintained by City and its respective elected offici als, officers, employees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability Insurance only, the insurer shall waive all rights of subrogation and Item 1P - 26
Revised 2.9.22 Page 24 of 25
contribution it may have against Cit y, its elected officia ls, offic ers, employees, agents, and volunteers.

4. Errors and Omissions Coverage . If Errors & Omissions Insurance is required, and if Contractor provides claims made profes sional liability insurance, Contractor shall also agree in writing either (1) to purchase tail insurance in the amount required by this Agreement to cover claims made within three years of the completion of Contractor’s services under this Agreement, or (2) to maintain professional lia bility insurance co verage with the same carrier in the amount required by this Agreement for at least three years after completion of Contractor’s services under this Agreement. Contractor shall also be required to provide evidence to City of the purchase of the required tail insurance or continuation of the professional liability policy.

5. Sufficiency of Insurers. Insurance required in this Agreement shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless otherwise acceptable to the City.

6. Verification of Coverage. Contractor shall furnish City with both certificates of insurance and endorsements , inc luding additional insured en dorsements, affecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Contractor’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required f or Er rors a nd Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Ins urance Cove rage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:

A. "The City of Palm Springs, its officials, employees, and agents are named as an additional insured…” ("as res pects City of Palm Springs Contract No.___" or "for any and a ll work performed with the City" may be included in this statement).

B. "This insurance is primary and non -contributory over any insurance or self - insurance the City may have..." ("as respects City of Palm Springs Contract No.___" or "for any and all work performed with the City" may be included in this statement).

C. "Should any of the above-described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the C ertificate Holder named." Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.

Item 1P - 27
Revised 2.9.22 Page 25 of 25
D. Both the Workers’ Compensation and Em ployers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies.

All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter.

Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.

7. Deductibles and Self -Insured Retentions. Any deductible s or self -insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected officials, officers, employees, agents, and volunteers; or (2) Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim admi nistration, and def ense expenses.

Certificates of In surance must include evidence of the amount of any deductible or self -insured retention under the policy. Contractor guarantees payment of all deductibles and self -insured retentions.

8. Severability of Interests (Separat ion o f Insu reds). This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer’s liability.

Item 1P - 28

ATTACHMENT D

CITY OF PALM SPRINGS

PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTIONS FOR APPLICANTS)
INVITATION FOR BIDS (IFB 22-19)

BUILDING REPAIR AND RENOVATION SERVICES

THIS FORM MUST BE COMPLETED AND SUBMITTED WITH YOUR BID Who Must File?
Applicants that are NOT a natural person or group of natural people that will be identified on the application and seek a City approval determined by a vote of City officials. Examples include corporations, limited liability companies, trusts, etc. that seek a City Council approval, or an approval by one of the City's board or commissions.

Why Must I File?
The City of Palm Springs Public Integrity Ordinance advances transparency in municipal government and assists public officials in avoiding conflicts of interest. The City's Public Integrity Ordinance, codified in Chapter 2.60 of the municipal code, reflects the City's interest in ensuring that companies (and other legal entities that are not natural people) doing business in the community are transparent and make disclosure as to their ownership and management, and further that those companies disclose the identity of any person, with an ownership interest worth two thousand dollars ($2,000) or more, who has a material financial relationship with any elected or appointed voting City official, or with the City Manager or City Attorney.

Note: A material financial relationship is a relationship between someone who is an owner/investor in the applicant entity and a voting official (or the City Manager or City Attorney), which relationship includes any of the following:
(1) the owner/investor and the official have done business together during the year prior to the application;
(2) the official has earned income from the owner/investor during the year prior to the filing of the application;
(3) the owner/investor has given the official gifts worth fifty dollars ($50) or more during the year prior to the filing of the application; or
(4) the official might reasonably be anticipated to gain or lose money or a thing of value, based upon the owner/investor's interest in the applicant entity, in relation to the application's outcome.

When Must I File?
You must file this form with the Office of the City Clerk at the same time when you file your application for a City approval determined by a vote of City officials, whether elected or appointed.

Item 1P - 29
What Must I Disclose?
A. The names of all natural persons who are officers, directors, members, managers, trustees, and other fiduciaries serving trusts or other types of organizations (attorneys, accountants, etc.).

Note: (1) only trusts or other organizations that are not the fiduciaries, (2) if a second entity that is not a natural person serves the applicant entity (e.g., as a member of an applicant LLC), then all officers, directors, members, managers, trustees, etc., of the second entity must be disclosed).

B. The names of persons owning an interest with a value of two thousand dollars ($2,000) or more who have a material financial relationship with an elected or appointed City official who will vote on the applicant's application, or with the City Manager or City Attorney.

What if I Have Questions?

PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.
*There are some additional supplementary instructions with an example following the form should you need further clarification.

Item 1P - 30

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principal Place of Business)

3. Local or California Address (1f different than #2)

4. State where Entity is Registered with Secretary of State California
If other than California, is the Entity also registered in California? D Yes D No

5. Type of Entity
IYf' Corporation D Limited Liability Company D Partnership D Trust D Other (please specify)

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
____ ___..( ...... b .... r .... i s ....... Y ...... ,._· _____ GZ1' Officer D Director D Member GZ1' Manager [name] D General Partner D Limited Partner
[]Other __________ _
_____________ D Officer D Director D Member D Manager
[name] D General Partner D Limited Partner
D Other __________ _
______________ D Officer D Director D Member D Manager
[name] D General Partner D Limited Partner
D Other __________ _
Item 1P - 31

7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity

EXAMPLE

JANE DOE
[name of owner/investor]
A.

Chris y,·
[name of owner/investor]
B.
[name of owner/investor]
C.
[name of owner/investor]
D.
[name of owner/investor]
E.
[name of owner/investor]
50%, ABC COMPANY, Inc.
[percentage of beneficial interest in entity and
name of entity]
LOO .,0 1 eui Cans±w.diav-i. lr1c,'
[percentage of beneficial interest in entity and
name of entity]
[percentage of beneficial interest in entity and
name of entity]
[percentage of beneficial interest in entity and
name of entity]
[percentage of beneficial interest in entity and
name of entity)
[percentage of beneficial interest in entity
and name of entity]

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signature of Disclosing Party, Printed Name, Title Date Item 1P - 32
City of Palm Springs, CA.

Business Disclosure Supplementary Instructions
In an effort to ensure we capture the required business entity information in accordance with the attached instructions, we provide you these supplementary instructions to clearly identify the required information, and the format the information should be provided.

If you, as the applicant, are a business entity (i.e. a corporation or limited liability company), and it is also comprised of other business entities as its members or having a financial interest, all other such business entities must also be disclosed, including those entities other business entities, if any.

Ultimately, the City's disclosure document (attached) requires a listing identifying all natural persons having any financial interest over 5% of the business entities (and any other business entities comprising your business entity).

As an example, Applicant is: Acme Brothers, Inc., a California corporation, whose officers are:

John Doe, Jill Doe, and Jay Doe, which is owned 50% by Acme Brothers, LLC, a California limited liability company, and John Doe (25% interest) and Jill Doe (25% interest). Acme Brothers, LLC, is managed by Acme Brothers 2, Inc., a California corporation, whose officers are: George Doe, Bill Doe, and Jane Doe, which is owned 100% by Acme Brothers 2, LLC, a California limited liability company, which is managed by George Doe, with George Doe and Jane Doe having 50% interest each.

The full business entity disclosure in this example would resemble the following:

1. Acme Brothers, Inc., a California corporation
a. Officers: John Doe, Jill Doe, and Jay Doe
b. Ownership:
i. 50% Acme Brothers, LLC, a California limited liability company ii. 25% John Doe
iii. 25% Jill Doe

2. Acme Brothers, LLC, a California limited liability company a. Managers: Acme Brothers 2, Inc., a California corporation b. Ownership: 100% Acme Brothers 2, Inc., a California corporation

3. Acme Brothers 2, Inc., a California corporation
a. Officers: George Doe, Bill Doe, and Jane Doe
b. Ownership: 100% Acme Brothers 2, LLC, a California limited liability company

4. Acme Brothers 2, LLC, a California limited liability company a. Managers: George Doe
b. Ownership:
i. 50%
Item 1P - 33

CITY COUNCIL STAFF REPORT
06/16/2022   1. Q.

City Clerk -

SUBJECT

APPROVAL OF CONTRACT PURCHASE AGREEMENTS WITH SC
COMMERCIAL, LLC., AND DOWNS ENERGY IN A COMBINED AMOUNT NOT TO EXCEED $4,025,000
RECOMMENDATION:

In accordance with Palm Springs Municipal Code Section 7.09.010, “Cooperative Purchasing Programs,” award a Contract Purchase Agreement for SC Commercial, LLC for delivery of fuel and ultra-low sulfur diesel fuel in an amount not-to-exceed $1,400,000 for a five-year term, subject to extension at the approval of City Council, at the cooperative unit pricing offered under the County of Riverside agreement #PSA-0004078.

1. In accordance with Palm Springs Municipal Code Section 7.09.010, “Cooperative Purchasing Programs,” award a Contract Purchase Agreement for Downs Energy for delivery of fuel and ultra-low sulfur diesel fuel in an amount not-to-exceed $2,625,000 through a five-year term, subject to extension at the approval of City Council, at the cooperative unit pricing offered under the County of Riverside agreement #PSA-00004074.

2. Authorize the City Manager to execute all necessary documents.3.

Attachments
Item 1Q

CITY COUNCIL STAFF REPORT

DATE: JUNE 16, 2022 CONSENT CALENDAR

SUBJECT: APPROVAL OF CONTRACT PURCHASE AGREEMENTS WITH SC COMMERCIAL, LLC., AND DOWNS ENERGY IN A COMBINED AMOUNT NOT TO EXCEED $4,025,000

FROM: Justin Clifton, City Manager

BY: Maintenance & Facilities Department

SUMMARY:

Approval of these fuel contracts will allow the City to enter into agreements for products and services for cost effective and timely purchase and delivery of gasoline, and diesel fuel.

RECOMMENDATION:

1. In accordance with Palm Springs Municipal Code Section 7.09.010, “Cooperative Purchasing Programs,” award a Contract Purchase Agreement ( Attachment 1), for SC Commercial, LLC for delivery of fuel and ultra- low sulfur diesel fuel in an amount not-to-exceed $1,400,000 for a five-year term, subject to extension at the approval of City Council, at the cooperative unit pricing offered under the County of Riverside agreement #PSA-0004078.

2. In accordance with Palm Springs Municipal Code Section 7.09.010, “Cooperative Purchasing Programs,” award a Contract Purchase Agreement ( Attachment 1) for Downs Energy for delivery of fuel and ultra-low sulfur diesel fuel in an amount not-to- exceed $2,625,000 through a five-year term, subject to extension at the approval of City Council, at the cooperative unit pricing offered under the County of Riverside agreement #PSA-00004074.

3. Authorize the City Manager to execute all necessary documents.

STAFF ANALYSIS:

The Maintenance and Facilities Department oversees the ordering and management of the gasoline and diesel fuel needs for the City’s fleet inventory. Due to the relatively small volume of fuel that is purchased, the City benefits by participating in the bulk fuel contract of a much larger agency. The City has participated in the County of Riverside’s bulk fuel Item 1Q - 1
City Council Staff Report
June 16, 2022 -- Page 2
Award Fuel Purchasing Contracts – Fleet Operations

contract since 2004. The County recently issued a new solicitation for fuel and contracts were awarded in March 2022 , effective April 1, 2022, and continuing through March 31, 2027. The County’s bid process resulted in a contract awarded to two vendors: SC Commercial, LLC and Downs Energy.

The County’s contracts include provisions that allow the awarded vendors to extend the same contract pricing to other public agencies. The Procurement and Contracting Manager has validated the competitive bid process with Riverside County, the piggyback pricing provision, and concurred that the pricing leveraged under the purchasing power of the County agreement would likely be less than what we c ould obtain independently.

As such, pursuant to the provisions of the Procurement Ordinance, 7.09.010, the City Council may authorize the acquisition of gasoline purchasing and delivery, under this cooperative pricing afforded through the Riverside County agreements.

The City has expended $601,918.19 on fuel purchasing and delivery fees from July 1, 2021, through March 2022. Therefore, S taff recommends utilizing the County’s procurement to award two contracts for fuel to Downs Energy and SoCo Group, Inc. as the best option for the City.

ENVIRONMENTAL IMPACT:

The requested City Council action is not a “Project” as defined by the Cali fornia Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: ( 5) Organizational or administrative activities of governments t hat will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

This item enables activities aligned with Council strategic priorities in Quality of Life and Community Infrastructure.

FISCAL IMPACT:

The recommended five -year contract awards with SC Commercial LLC, and Downs Energy would be effective April 1, 2022, at a combined cost not to exceed $ 4,025,000.

Sufficient funds are available in the current fiscal year in Fleet Accounts 5106560-50180 and 5106560-5018, and funds will be budgeted as part of the Fiscal Year 2022-23 budget and forthcoming budget years.

Item 1Q - 2
City Council Staff Report
June 16, 2022 -- Page 3
Award Fuel Purchasing Contracts – Fleet Operations
REVIEWED BY:

Procurement Manager: Kim Baker
Assistant City Manager: Teresa Gallavan
City Manager: Justin Clifton
ATTACHMENTS:

1. Cont
ract Services Agreements for SC Commercial, LLC, and Downs Energy Item 1Q - 3

ATTACHMENT 1
Item 1Q - 4

COOPERATIVE PURCHASE OF FUEL AGREEMENT NO. ####

This Cooperative Purchase of Fuel] Agreement (“Agreement”) is entered into by and between the City of Palm Springs, a California charter city and municipal corporation (“City”) and Downs Energy, a California corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” or collectively as “Parties” in this Agreement.

1. Background.
a. This Agreement is made and entered into in reference to the competitively solicited County of Riverside Contract No. PSA-0004074 with Contractor)] (“Cooperative Agreement”).
b. The City desires to purchase and have delivered fuel and ultra-low sulfur diesel fuel attached hereto as Attachment “A”, the content of which is incorporated by reference to this Agreement as if fully set out here in its entirety. c. Contractor desires to perform said services on the terms and conditions set forth in this Agreement.

2. Term. The term of this Agreement is five years beginning on the date provided in the Notice to Proceed for the City’s Procurement and Contracting Department.

3. Compensation and Payment. This Agreement is for an amount not to exceed $2,625,000, subject to approved amendments and changes. All pricing must be in accordance with the attached Quote, as shown as Attachment “B” , the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety.

4. Appropriations. This Agreement is subject to, and contingent upon, funds being appropriated by the City Council of City for each fiscal year. If such appropriations are not made, this Agreement shall automatically terminate without penalty to City.

5. Insurance. Contractor shall procure and maintain, at its sole cost and expense, policies of insurance as set forth in the attached Attachment "C", incorporated herein by reference. If no insurance is required Attachment “C” will reflect that there are no requirements.

6. Indemnification. To the fullest extent permitted by law, Contractor shall defend (at Contractor’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, Item 1Q - 5
11111
demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Contractor’s employees included), for damage to property, including property owned by City, for any violation of any federal, state, or local law or ordinance or in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct committed by Contractor, its officers, employees, representatives, and agents, that arise out of or relate to Contractor’s performance of Services or this Agreement. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the Indemnified Parties. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Contractor’s indemnification obligation or other liability under this Agreement. Contractor’s indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final.

7. Notice. Any notice required under this Agreement must be given by fax, hand delivery, or certified mail, postage prepaid, and is deemed received on the day faxed, or hand delivered or on the third day after postmark if sent by certified mail. Notice must be sent as follows:

IF TO THE CITY: I F TO THE CONTRACTOR:

City of Palm Springs DOWNS ENERGY
Attn: Daniel Martinez Attn: Michael J. Downs
Title: Fleet Maintenance Manager Title: President
Address: 459 N. Civic Drive Address: 1095 Montecito Drive Palm Springs, CA 92262 Corona, CA 92879

Phone: 760.322.8348 Phone:888.810.3835

8. Compliance with Law. Contractor shall comply with all applicable federal, state, and local laws, statutes and ordinances and all lawful orders, rules, and regulations when performing the Services. Contractor shall be liable for all violations of such laws and regulations in connection with this Agreement.

9. Changes. In the event any change or changes in the work is requested by City, Parties shall execute a written amendment to this Agreement, specifying all proposed amendments, including, but not limited to, any additional fees. An amendment may be entered into:

Item 1Q - 6
A. To provide for revisions or modifications to documents, work product, or Work, when required by the enactment or revision of any subsequent law; or B. To provide for additional work not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Contractor’s profession.

10. Termination Prior to Expiration of Term. City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Contractor. Where termination is due to the fault of Contractor and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the City. Upon receipt of the notice of termination, Contractor shall immediately cease all Services except such as may be specifically approved by the Contract Officer. Contractor shall be entitled to compensation for all Services rendered prior to receipt of the notice o f termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Contractor shall not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation for termination of Work. If the termination is for cause, the City shall have the right to take whatever steps it deems necessary to correct Contractor's deficiencies and charge the cost thereof to Contractor, who shall be liable for the full cost of the City's corrective action. Contractor may not terminate this Agreement except for cause, upon 30 days written notice to City.

11. Covenant Against Discrimination . In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting

12. Entire Agreement. This Agreement, along with the Cooperative Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement and supersedes all prior negotiations, arrangements, agreements and understandings, either oral or written between the parties. In the event of conflict or Item 1Q - 7
inconsistency between this Agreement and the Cooperative Agr eement, this terms and conditions in this Agreement shall prevail.
[Signature Page Follows]

Item 1Q - 8

SIGNATURE PAGE TO COOPERATIVE PURCHASE OF FUEL AGREEMENT

BETWEEN THE CITY OF PALM SPRINGS

AND DOWNS ENERGY

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

CONTRACTOR:

By: _____________________________ By: _____________________________ Signature Signature

(2nd signature required for Corporation)

Date: ___________________________ Date: ___________________________

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No. ________

APPROVED AS TO FORM: ATTEST:

By: _____________________________ By: _____________________________ City Attorney City Clerk

APPROVED:

By: _____________________________ Date: ____________________________ City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
Item 1Q - 9

ATTACHMENT A

SCOPE OF WORK

Item 1Q - 10
DocuSign Envelope ID: 36D85D29-42BE-4661-A134-AB7D98CDFDB8

1.0 Piicing/Reporting

EXHIBIT A

SCOPE OF SERVICES
Contract ID # PSA-0004074

1.1 The price for Unleaded 87 Octane (Unleaded Fuel with 10% Ethanol) shall be based on the 10:00 AM EST Colton OPIS Daily Unbranded Rack Average Price with CAR on the day of delivery, plus vendor quote adjustments (i.e. 10:00 AM Colton OPIS Unbranded daily average with CAR + a fixed differential + freight for that site). All products must meet the CARB specifications .

1.2 The price for the Ultra Low Sulfur Diesel (U.L.S.D.), 15 PPM Sulfur Content, shall be based on the 10:00 AM EST Colton OPIS Daily Unbranded Rack Average Price with CAR on the day of delivery, plus vendor quote adjustments (i.e. 10:00 AM Colton OPIS Unbranded daily average with CAR + a fixed differential + freight for that site). All products must meet the CARB specifications .

1.3 The 10:00 AM EST Colton OPIS Daily Unbranded Rack Average Price with CAR plus the site differential will total the composite price. The composite price multiplied by the estimated annual gallons equals the extended total dollar amount per location. The COUNTY will pay all applicable Sales Taxes, CA Oil Spill Surcharges, Diesel Fuel Use Tax (if applicable) and any taxes that are to be paid. Freight will be billed as priced per individual location in the attached Exhibit B of this Agreement.

1.4 The location differentials attached will be part of this Agreement. Official copies of the 10:00 AM EST Colton OPIS daily unbranded rack average with CAR pricing shall accompany each invoice throughout the period of the contract. One Delivery - One Invoice.

1.5 The County may add new fueling sites or reduce locations throughout the duration of this Agreement.

1.6 Reporting Requirements: CONTRACTOR shall at a minimum accumulate usage on a per­ gallon and total sales basis for each department and location . Reports shall be submitted semi­ annually listing department , location , sales by gallons, description (unleaded or ultra-low sulfur diesel), and total dollar expenditures. The report shall be submitted within 60 days following the close of the calendar period to the Riverside County Purchasing Depa11ment.

Prompt and accurate reporting is an essential part of this Agreement. Ad-hoc reports may be requested by the COUNTY on an as needed basis.

RFP# or BOS Agenda/Date or SSJ#
Form #11 6-310 - Dated 3/21/2019

Item 1Q - 11
DocuSign Envelope ID: 36D85D2S-42BE-4661-A134-AB7D98CDFDB8 Contract ID # PSA-0004074

2.0 Delivery of Fuel

2.1 With the exception of weekends and holidays, fuel shall be delivered to a specified point in the County of Riverside within 24 hours from the placement of the order.

County Observed Holidays:

HOLIDAY DAY OBSERVED

HOLIDAY DAY OBSERVED
* New Year's Day January 1
Martin Luther King Jr's Birthday Third Monday in January Lincoln's Birthday Second Tuesday in February
Washington 's Birthday Third Monday in February
Memorial Day Last Monday in May
Independence Day July4
Labor Day First Monday in September
Columbus Day Second Monday in October
Veterans' Day November 12
*Thanksgiving Day Fourth Thursday in November
* Following Thanksgiving Friday following the fourth Thursday in November *Christmas Day December25
* Note:
• Thanksgiving Day, which shall be the fourth Thursday Ill November unless otherwise appointed.
• Friday following Thanksgiving Day.
• December 24 and 31 when they fall on Monday.
• December 26 and January 2, when they fall on Friday.
• Friday proceeding January 1, February 12, July 4, November 11 or December 25, when such date falls on Saturday, the Monday following such date when such date falls on a Sunday.

2.2 Fuel delivery shall be made complete as ordered, no partial orders accepted unless mutually agreed upon.

2.3 CONTRACTOR shall provide a 24-hour customer support telephone number and services for responding to all requests /orders for fuel, including telephone coverage on weekdays during normal business hours as well as 24-hour access phone number for after hours, weekends, holidays and emergency situations.

RFP# or BOS Agenda/Date or SSJ#
Form #11 6-310 - Dated 3/21 /2019

Item 1Q - 12
DocuSign Envelope ID: 36D85D2S-42BE-4661-A134-AB7D98CDFDB8 Contract ID # PSA-0004074

2.4 CONTRACTOR shall provide a delivery metered ticket for each delivery of fuel, and the metered ticket must be signed and dated, and provided to COUNTY at delivery.

2.5 Delivery truck driver shall stick each tank with a fuel tank gauge stick prior to offloading to insure that adequate fuel storage is available to accept the entire shipment without spillage.

Readings shall be taken by the driver prior to unloading fuel and after unloading fuel and shall be recorded on the delivery receipts. Each delivery truck must be equipped with a stick. Driver shall sign the delivery ticket at the time and place of delivery.

2.6 The COUNTY requires "zero leakage" standard for fuel transfer operations. The CONTRACTOR shall provide necessary equipment and proper training of delivery personnel to prevent spillage or minimize the chance of spillage during connection and disconnection of hoses and during the transfer of fuel. The CONTRACTOR will likewise ensure that all equipment, tools and procedures used are in compliance with all applicable specification and regulations governing such operations .

2.7 In the event of leakage or spillage, it shall be the responsibility of the CONTRACTOR to perform immediate containment, clean up, disposal and restoration activities as necessary in accordance with applicable State of California laws and regulations and subject to the COUNTY 's satisfaction. All material associated with such clean up shall be removed by the CONTRACTOR.

2.8 CONTRACTOR shall provide all necessary delivery devices to make delivery to each site as required.

2.9 CONTRACTOR shall ensure that the transport units can accommodate the delivery logistics at every location prior to dispatching those units. Some locations have above-ground or underground storage tanks .

2.10 The COUNTY reserves the right to specify in said orders whether the deliveries are required in tank wagon or truck/trailer loads . Orders must be accepted for truck/trailer split product loads (unleaded /diesel). Split ordered delivery gallons will be considered total gallons ordered.

2.11 Deliveries shall be made by owned or contract motor carriers. Carriage vehicles shall be fully equipped, in good mechanical condition and appearance, always bearing the correct place card identification of fuel being delivered. Hoses and all coupler fittings shall be tight when in use.

Product that leaks from hoses or coupler connections shall be cleaned up and removed by CONTRACTOR, including product in spill containers.

RFP# or BOS Agenda/Date or SSJ#
Form #116-310 - Dated 3/21 /2019

ATTACHMENT B

QUOTE / PRICING
Item 1Q - 13
Downs Energy
Line Unit of Unit
Item# Type Name Description Quantity Measure Price Extended Price Group Non - County Facility
City of Palm Springs - 425 Differential - for Unleaded Tank size (2) at P9.1 Item N. Civic Drive Palm 10,000 gallons 71326.00 GAL- Gallon $ 3.1665 3.1665 $ 225,853 .78 City of Palm Springs - 425 Freight - for Unleaded Tank size (2) at P9.2 Item N. Civic Drive Palm 10,000 gallons 71326.00 GAL- Gallon $ 4,878.04 0.0684 $ 4,878 .04 Total: $ 230,731.82
City of Palm Springs - 425 Differential - for Diesel Tank size (1) at 5,000 P9.3 Item N. Civic Drive Palm gallons each 10118.00 GAL- Gallon $ 3.2620 3.2620 $ 33,004 .92 City of Palm Springs - 425 Freight - for Diesel Tank size (1) at 5,000 P9.4 Item N. Civic Drive Palm gallons each 10118.00 GAL- Gallon $ 860.03 0.0850 $ 860 .03 Total: $ 33,864.95

ATTACHMENT C

INSURANCE REQUIREMENTS

INSURANCE

1. Procurement and Maintenance of Insurance. Contractor shall procure and maintain public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Contractor’s performance under this Agreement. Contractor shall procure and maintain all insurance at its sole cost and expense, in a form and content satisfactory to the City, and submit concurrently with its execution of this Agreement. Contractor shall also carry workers’ compensation insurance in accordance with California workers’ compensation laws. Such insurance shall be kept in full force and effect during the term of this Agreement, including any extensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any proposed cancellation. Certificates of insurance evidencing the foregoing and designating the City, its elected officials, officers, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, certificates, and endorsements evidencing the same shall not be construed as a limitation of Contractor’s obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers.

2. Minimum Scope of Insurance . The minimum amount of insurance required under this Agreement shall be as follows:

1. Comprehensive general liability and personal injury with limits of at least one million dollars ($1, 000,000.00) combined single limit coverage per occurrence and two million dollars ($2,000,000) general aggregate;

2. Automobile liability insurance with limits of at least one million dollars ($1,000,000.00) per occurrence;

3. Professional liability (err ors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000) annual aggregate is:
_________ required
____X____ is not required;

4. Workers’ Compensation insurance in the statutory amount as required by the State of California and Employer’s Liability Insurance with limits of at least one million dollars $1 million per occurrence. If Contractor has no employees, Contractor shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3. Primary Insurance. For any claims related to this Agreement, Contractor’s insurance coverage shall be primary with respect to the City and its Item 1Q - 14
respective elected officials, officers, employees, agents, and volunteers. Any insurance or self -insurance maintained by City and its respective elected officials, officers, employees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability Insurance only, the insurer shall waive all rights of subrogation and contribution it may have against City, its elected officials, officers, employees, agents, and volunteers.

4. Errors and Omissions Coverage . If Errors & Omissions Insurance is required, and if Contractor provides claims made professional liability insurance, Contractor shall also agree in writing either (1) to purchase tail insurance in the amount required by this Agreement to cover claims made within three years of the completion of Contractor’s services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in the amount required by this Agreement for at least three years after completion of Contractor’s services under this Agreement.

Contractor shall also be required to provide evidence to City of the purchase of the required tail insurance or continuation of the professional liability policy.

5. Sufficiency of Insurers . Insurance required in this Agreement shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless otherwise acceptable to the City.

6. Verification of Coverage . Contractor shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, affecting all of the coverages required by this Agreement. The certi ficates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Contractor’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:

A. "The City of Palm Springs, its officials, employees, and agents are named as an additional insured…” ("as respects City of Palm Springs Contract No.___" or "for any and all work performed with the City" may be included in this statement).

B. " This insurance is primary and non-contributory over any insurance or self- insurance the City may have..." (" as respects City of Palm Springs Contract No.___ " or "for any and all work performed with the City" may be included in this statement).

C. " Should any of the above- described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "but failure to mail Item 1Q - 15
such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.

D. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies.

All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.

7. Deductibles and Self -Insured Retentions . Any deductibles or self - insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self -insured retentions with respect to the City, its elected officials, officers, employees, agents, and volunteers; or (2) Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Certificates of Insurance must include evidence of the amount of any deductible or self -insured retention under the policy. Contractor guarantees payment of all deductibles and self-insured retentions.

8. Severability of Interests (Separation of Insureds) . This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer’s liability.

Item 1Q - 16

COOPERATIVE PURCHASE OF FUEL AGREEMENT NO. ####

This Cooperative Purchase of Fuel] Agreement (“Agreement”) is entered into by and between the City of Palm Springs, a California charter city and municipal corporation (“City”) and SC Commercial, LLC, a Delaware limited liability company (“Contractor”). City and Contractor are sometimes individually referred to as “Party” or collectively as “Parties” in this Agreement.

1. Background.
a. This Agreement is made and entered into in reference to the competitively solicited County of Riverside Contract No. PSA-0004078 with Contractor)] (“Cooperative Agreement”).
b. The City desires to purchase and have delivered fuel and ultra- low sulfur diesel fuel attached hereto as Attachment “A”, the content of which is incorporated by reference to this Agreement as if fully set out here in its entirety. c. Contractor desires to perform said services on the terms and conditions set forth in this Agreement.

2. Term. The term of this Agreement is five years beginning on the date provided in the Notice to Proceed for the City’s Procurement and Contracting Department.

3. Compensation and Payment. This Agreement is for an amount not to exceed $1,400,000, subject to approved amendments and changes. All pricing must be in accordance with the attached Quote, as shown as Attachment “B” , the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety.

4. Appropriations. This Agreement is subject to, and contingent upon, funds being appropriated by the City Council of City for each fiscal year. If such appropriations are not made, this Agreement shall automatically terminate without penalty to City.

5. Insurance. Contractor shall procure and maintain, at its sole cost and expense, policies of insurance as set forth in the attached Attachment "C", incorporated herein by reference. If no insurance is required Attachment “C” will reflect that there are no requirements.

6. Indemnification. To the fullest extent permitted by law, Contractor shall defend (at Contractor’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, Item 1Q - 17
11111
demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Contractor’s employees included), for damage to property, including property owned by City, for any violation of any federal, state, or local law or ordinance or in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct committed by Contractor, its officers, employees, representatives, and agents, that arise out of or relate to Contractor’s performance of Services or this Agreement. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the Indemnified Parties. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Contractor’s indemnification obligation or other liability under this Agreement. Contractor’s indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final.

7. Notice. Any notice required under this Agreement must be given by fax, hand delivery, or certified mail, postage prepaid, and is deemed received on the day faxed, or hand delivered or on the third day after postmark if sent by certified mail. Notice must be sent as follows:

IF TO THE CITY: IF TO THE CONTRACTOR:

City of Palm Springs SC Commercial, LLC
Attn: Daniel Martinez Attn: Robert W. Bollar
Title: Fleet Maintenance Manager Title: Corporate Secretary and Vice President
Address: 459 N. Civic Drive Address: 1800 W. Katella Ave. Ste 400 Palm Springs, CA 92262 Orange, CA 92867

Phone: 760.322.8348 Phone: 714.744.7140

8. Compliance with Law. Contractor shall comply with all applicable federal, state, and local laws, statutes and ordinances and all lawful orders, rules, and regulations when performing the Services. Contractor shall be liable for all violations of such laws and regulations in connection with this Agreement.

9. Changes. In the event any change or changes in the work is requested by City, Parties shall execute a written amendment to this Agreement, specifying all proposed amendments, including, but not limited to, any additional fees. An amendment may be entered into:

A. To provide for revisions or modifications to documents, work product, or Work, when required by the enactment or revision of any subsequent law; or Item 1Q - 18
B. To provide for additional work not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Contractor’s profession.

10. Termination Prior to Expiration of Term. City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Contractor. Where termination is due to the fault of Contractor and constitutes an immediat e danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the City. Upon receipt of the notice of termination, Contractor shall immediately cease all Services except such as may be specifically approved by the Contract Officer. Contractor shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Contractor shall not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation for termination of Work. If the termination is for cause, the City shall have the right to take whatever steps it deems necessary to correct Contractor's deficiencies and charge the cost thereof to Contractor, who shall be liable for the full cost of the City's corrective action. Contractor may not terminate this Agreement except for cause, upon 30 days written notice to City.

11. Covenant Against Discrimination . In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting

12. Entire Agreement. This Agreement, along with the Cooperative Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement and supersedes all prior negotiations, arrangements, agreements and understandings, either oral or written between the parties. In the event of conflict or inconsistency between this Agreement and the Cooperative Agr eement, this terms and conditions in this Agreement shall prevail.
[Signature Page Follows]
Item 1Q - 19

Item 1Q - 20

SIGNATURE PAGE TO COOPERATIVE PURCHASE OF FUEL AGREEMENT

BETWEEN THE CITY OF PALM SPRINGS

AND SC COMMERCIAL, LLC

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

CONTRACTOR:

By: _____________________________ By: _____________________________ Signature Signature

(2nd signature required for Corporation)

Date: ___________________________ Date: ___________________________

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No. ________

APPROVED AS TO FORM: ATTEST:

By: _____________________________ By: _____________________________ City Attorney City Clerk

APPROVED:

By: _____________________________ Date: ____________________________ City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
Item 1Q - 21

ATTACHMENT A

SCOPE OF

WORK
Item 1Q - 22
DocuSign Envelope ID: 32CFB103-E4 B3-4AEE-9A93-DDFB4098 D049

1.0 Piicing/Reporting

EXHIBIT A

SCOPE OF SERVICES
Contract ID # PSA-0004078

1.1 The price for Unleaded 87 Octane (Unleaded Fuel with 10% Ethanol) shall be based on the 10:00 AM EST Colton OPIS Daily Unbranded Rack Average Price with CAR on the day of delivery , plus vendor quote adjustments (i.e. 10:00 AM EST Colton OPIS Unbranded daily average with CAR + a fixed differential + freight for that site). All products must meet the CARB specifications.

1.2 The price for the Ultra Low Sulfur Diesel (U.L.S.D.) , 15 PPM Sulfur Content, shall be based on the 10:00 AM EST Colton OPIS Daily Unbranded Rack Average Price with CAR on the day of delivery , plus vendor quote adjustments (i.e. 10:00 AM EST Colton OPIS Unbranded daily average with CAR + a fixed differential + freight for that site). All products must meet the CARB specifications.

1.3 The 10:00 AM EST Colton OPIS Daily Unbranded Rack Average Price with CAR plus the site differential will total the composite price. T11e composite price multiplied by the estimated annual gallons equals the extended total dollar amount per location. The COUNTY will pay all applicable Sales Taxes, CA Oil Spill Surcharges, Diesel Fuel Use Tax (if applicable) and any taxes that are to be paid. Freight will be billed as priced per individual location in the attached Exhibit B of this Agreement.

1.4 The location differentials attached will be part of this Agreement. Official copies of the 10:00 AM Colton OPIS daily unbranded rack average with CAR pricing shall accompany each invoice throughout the period of the contract. One Delivery - One Invoice.

1.5 The County may add new fueling sites or reduce locations throughout the duration of this Agreement.

1.6 Reporting Requirements: CONTRACTOR shall at a minimum accumulate usage on a per­ gallon and total sales basis for each department and location. Reports shall be submitted semi­ annually listing department , location, sales by gallons, description (unleaded or ultra-low sulfur diesel), and total dollar expenditures. The report shall be submitted within 60 days following the close of the calendar period to the Riverside County Purchasing Department.

Prompt and accurate reporting is an essential part of this Agreement. Ad-hoc reports may be requested by the COUNTY on an as needed basis.

RFP# or BOS Agenda/Date or SSJ#
Form #116-310 - Dated 3 /21/2019

Item 1Q - 23
DocuSign Envelope ID: 32CFB1 Q:,-E4 B:,-4AEE-9A93-DDFB4098 D049 Contract ID # PSA-0004078

2.0 Delivery of Fuel

2.1 With the exception of weekends and holidays, fuel shall be delivered to a specified point in the County of Riverside within 24 hours from the placement of the order.

County Observed Holidays:

HOLIDAY DAY OBSERVED

HOLIDAY DAY OBSERVED
* New Year's Day January 1
Martin Luther King Jr's Birthday Third Monday in January Lincoln's Birthday Second Tuesday in February
Washington 's Birthday Third Monday in February
Memorial Day Last Monday in May
Independence Day July4
Labor Day First Monday in September
Columbus Day Second Monday in October
Veterans' Day November 12
*Thanksgiving Day Fourth Thursday in November
* Following Thanksgiving Friday following the fourth Thursday in Novembe1 *Christmas Day December25
* Note:
• Thanksgiving Day, which shall be the fourth Thursday Ill November unless otherwise appointed.
• Friday following Thanksgiving Day.
• December 24 and 31 when they fall on Monday.
• December 26 and January 2, when they fall on Friday . • Friday proceeding January 1, February 12, July 4, November 11 or December 25, when such date falls on Saturday, the Monday following such date when such date falls on a Sunday.

2.2 Fuel delivery shall be made complete as ordered, no partial orders accepted unless mutually agreed upon.

2.3 CONTRACTOR shall provide a 24-hour customer support telephone number and services for responding to all requests /orders for fuel, including telephone coverage on weekdays during normal business hours as well as 24-hour access phone number for after hours, weekends, holidays and emergency situations.

RFP# or BOS Agenda/Date or SSJ#
Form #11 6-310 - Dated 3/21 /2019

Item 1Q - 24
DocuSign Envelope ID: 32CFB1 Q:,-E4 B:,-4AEE-9A93-DDFB4098 D049 Contract ID # PSA-0004078

2.4 CONTRACTOR shall provide a delivery metered ticket for each delivery of fuel, and the metered ticket must be signed and dated, and provided to COUNTY at delivery.

2.5 Delivery truck driver shall stick each tank with a fuel tank gauge stick prior to offloading to insure that adequate fuel storage is available to accept the entire shipment without spillage.

Readings shall be taken by the driver prior to unloading fuel and after unloading fuel and shall be recorded on the delivery receipts. Each delivery truck must be equipped with a stick. Driver shall sign the delivery ticket at the time and place of delivery.

2.6 The COUNTY requires "zero leakage" standard for fuel transfer operations . The CONTRACTOR shall provide necessary equipment and proper training of delivery personnel to prevent spillage or minimize the chance of spillage during connection and disconnection of hoses and during the transfer of fuel. The CONTRACTOR will likewise ensure that all equipment, tools and procedures used are in compliance with all applicable specification and regulations governing such operations .

2.7 In the event of leakage or spillage, it shall be the responsibility of the CONTRACTOR to perform immediate containment, clean up, disposal and restoration activities as necessary in accordance with applicable State of California laws and regulations and subject to the COUNTY 's satisfaction. All material associated with such clean up shall be removed by the CONTRACTOR.

2.8 CONTRACTOR shall provide all necessary delivery devices to make delivery to each site as required.

2.9 CONTRACTOR shall ensure that the transport units can accommodate the delivery logistics at every location prior to dispatching those units. Some locations have above-ground or underground storage tanks .

2.10 The COUNTY reserves the right to specify in said orders whether the deliveries are required in tank wagon or truck/trailer loads . Orders must be accepted for truck/trailer split product loads (unleaded /diesel). Split ordered delivery gallons will be considered total gallons ordered .

2.11 Deliveries shall be made by owned or contract motor carriers. Carriage vehicles shall be fully equipped, in good mechanical condition and appearance, always bearing the correct place card identification of fuel being delivered. Hoses and all coupler fittings shall be tight when in use.

Product that leaks from hoses or coupler connections shall be cleaned up and removed by CONTRACTOR, including product in spill containers.

RFP# or BOS Agenda/Date or SSJ#
Form #116-310 - Dated 3/21 /2019

ATTACHMENT B

QUOTE / PRICING

Item 1Q - 25
SC Fuels
Line Extended Extended
Item# Type Name Description Quantity Unit Price Price Cost+ S% per Comments Group Non - County Facility
City of Palm Sprin gs - Differential - for Unleaded
425 N. Civi c Driv e Tank size (2) at 10,000
P9.1 Item Pa lm Spring s, CA gallon s 71326.00 3.3315 $ 237 ,622 .57 City o f P alm Sprin gs - Fre ight - for Unle a d ed
4 2 5 N . Civi c Drive Tank size (2) a t 10,000 Frei ght= 0 .045 x 6636, fl at rate P9.2 Item Pa lm Sprin gs, CA ga llon s 713 26 .00 0 .0450 $ 3 ,209 .67 $ 300 per d e livery Total : $ 240,832.24 $ 252,873 .85
City o f P alm Sprin gs - Diffe renti a l - for Di esel 4 2 5 N . Civi c Driv e Tank size (1) a t 5 ,000
P9.3 Item Pa lm Sprin gs, CA ga llon s each 10118 .00 3.3 670 $ 34,067 .31 City of Palm Sprin gs - Frei ght - for Diese l T ank
4 2 5 N. Civi c Drive size (1) at 5,000 gallons Frei ght= 0 .212 x 1415 , fl at rate P9.4 Item Palm Sprin g s, CA e ach 10118.00 0.2120 $ 2 ,145.02 $300 per delivery Total: $ 36,212.32 $ 38,022.94

ATTACHMENT C

INSURANCE REQUIREMENTS

INSURANCE

1. Procurement and Maintenance of Insurance. Contractor shall procure and maintain public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Contractor’s performance under this Agreement. Contractor shall procure and maintain all insurance at its sole cost and expense, in a form and content satisfactory to the City, and submit concurrently with its execution of this Agreement. Contractor shall also carry workers’ compensation insurance in accordance with California workers’ compensation laws. Such insurance shall be kept in full force and effect during the term of this Agreement, including any extensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any proposed cancellation. Certificates of insurance evidencing the foregoing and designating the City, its elected officials, officers, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, certificates, and endorsements evidencing the same shall not be construed as a limitation of Contractor’s obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers.

2. Minimum Scope of Insurance . The minimum amount of insurance required under this Agreement shall be as follows:

1. Comprehensive general liability and personal injury with limits of at least one million dollars ($1, 000,000.00) combined single limit coverage per occurrence and two million dollars ($2,000,000) general aggregate;

2. Automobile liability insurance with limits of at least one million dollars ($1,000,000.00) per occurrence;

3. Professional liability (err ors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000) annual aggregate is:
_________ required
_____X___ is not required;

4. Workers’ Compensation insurance in the statutory amount as required by the State of California and Employer’s Liability Insurance with limits of at least one million dollars $1 million per occurrence. If Contractor has no employees, Contractor shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3. Primary Insurance. For any claims related to this Agreement, Contractor’s insurance coverage shall be primary with respect to the City and its Item 1Q - 26
respective elected officials, officers, employees, agents, and volunteers. Any insurance or self -insurance maintained by City and its respective elected officials, officers, employees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability Insurance only, the insurer shall waive all rights of subrogation and contribution it may have against City, its elected officials, officers, employees, agents, and volunteers.

4. Errors and Omissions Coverage . If Errors & Omissions Insur ance is required, and if Contractor provides claims made professional liability insurance, Contractor shall also agree in writing either (1) to purchase tail insurance in the amount required by this Agreement to cover claims made within three years of the completion of Contractor’s services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in the amount required by this Agreement for at least three years after completion of Contractor’s services under t his Agreement.

Contractor shall also be required to provide evidence to City of the purchase of the required tail insurance or continuation of the professional liability policy.

5. Sufficiency of Insurers . Insurance required in this Agreement shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless otherwise acceptable to the City.

6. Verification of Coverage . Contractor shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, affecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Contractor’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:

A. "The City of Palm Springs, its officials, employees, and agents are named as an additional insured…” ("as respects City of Palm Springs Contract No.___" or "for any and all work performed with the City" may be included in this statement).

B. " This insurance is primary and non-contributory over any insurance or self- insurance the City may have..." (" as respects City of Palm Springs Contract No.___ " or "for any and all work performed with the City" may be included in this statement).

C. " Should any of the above- described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "but failure to mail Item 1Q - 27
such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.

D. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies.

All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.

7. Deductibles and Self -Insured Retentions . Any deductibles or self - insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self -insured retentions with respect to the City, its elected officials, officers, employees, agents, and volunteers; or (2) Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Certificates of Insurance must include evidence of the amount of any deductible or self -insured retention under the policy. Contractor guarantees payment of all deductibles and self-insured retentions.

8. Severability of Interests (Separation of Insureds) . This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer’s liability.

Item 1Q - 28

CITY COUNCIL STAFF REPORT
06/16/2022   1. R.

City Clerk -

SUBJECT
APPROVE A THREE-YEAR AGREEMENT WITH OLLIN DOCK & DOOR, INC. (A9135) FOR OVERHEAD DOOR REPAIR SERVICES
RECOMMENDATION:

Approve contract service agreement A9135 with Ollin Dock & Door, Inc. to provide overhead door repair services for a three-year term in an amount not to exceed $300,000, beginning June 20, 2022, through June 19, 2025, with two one-year extension options at the City’s sole discretion.

1. Authorize the City Manager or his designee to execute all necessary documents.2.

Attachments
Item 1R

CITY COUNCIL STAFF REPORT
DATE: J
UNE 16, 2022 CONSENT CALENDAR
SUBJECT: A PPROVE A THREE-YEAR AGREEMENT WITH OLLIN DOCK & DOOR, INC. (A9135) FOR OVERHEAD DOOR REPAIR SERVICES
FROM: Justin Clifton, City Manager
BY: M aint
enance & Facilities Department
SUMMARY:

This ac
tion will approve a three -year agreement with Ollin Dock & Door, Inc. in an amount not to exceed $300,000 for overhead door repair services.

RECOMMENDATION:

1. Approv
e contract service agreement A 9135 ( Attachment A) with Ollin Dock & Door, Inc. to provide overhead door repair services for a three-year term in an amount not to exceed $ 300,000, beginning June 20 , 2022 through June 19 , 2025, with two one-year extension options at the City’s sole discretion.

2. A uth
orize the City Manager or his designee to execute all necessary documents.

BUSINESS PRINCIPAL DISCLOSURE:

Accordi
ng to the Public Integrity Disclosure form ( Attachment B) submitted on May 10, 2022, Ollin Dock & Door, Inc. is registered in the state of California. T he o wners are Felipe R. Larios and Janett Ochca both with 50% beneficial interest in entity.

STAFF ANALYSIS:

The co
ntract with Ol lin Dock & Door, Inc. is an on-call, as-needed maintenance type contract. Bids were used to determine the lowest, respons ive, responsible bidder and to set the unit rates for the contract; however, the actual amount of the contract is based on the budgeted amount set by the Department and will therefore not match the bid amounts.

An Invitation for Bids (IFB 22-17) was initiated by the Ci ty’s Procurement & Contracting Department on April 18, 2022, based on Maintenance & Facilit ies specifications. Bids were solicited directly via the City’s procurement vendor portal, PlanetBids. In addition, the IFB was advertised in The Deser t Sun. Two bids w ere r eceived by the May 10 , 2022, deadline as follows:

Item 1R - 1
City Council Staff Report
June 16, 2022 -- Page 2
Award of City-Wide Overhead Door Repair Contract
Vendor Bid
Ollin Dock & Door Inc. $46,020.00
South Coast Industrial Door $75,225.00
The co
ntract is for three years with two optional one-year renewals and the unit pricing is fixed for the first year and subject to a CP I increase in the following years . Staff recommends approval of Contract Services Agreement A 9135 with Ollin Dock & Door , Inc. for a three-year term in the amount not to exceed $300,000 effective June 20, 2022 through June 19, 2025, subject to two one-year optional extensions the sole discretion of the City.

ENVIRONMENTAL ASSESSMENT:

The req
uested Ci ty Counci l act ion is not a “Projec t” as defined by the Calif ornia Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in th e environment, or a re asonably foreseeable indirect physical change in the environment. The requested action is to approve co ntracts f or t he abov e-mentioned services, and is exempt from CEQA pursuant to Sectio n 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

Approv
al of this action supports City Council priority 3A, Community Infrastructure – Improve City Facilities.

FISCAL IMPACT:

Suff
icient funds are budgeted and available to cover the increased cos t to be incurred through the remainder of the current Fiscal Year 2021-22 . Staff has included additional funding appropriation requests in the Fiscal Year 2022-23 budget for the new contract services.

REVIEWED BY:

Procurement Manager: Kim Baker
Assistant City Manager: Teresa Gallavan
City Manager: Justin Clifton
ATTACHMENTS:

A. Agree
ment No. A9135
B. Public Integrity Disclosure
Item 1R - 2
Revised 2.9.22 Page 1 of 25

CONTRACT
SERVICES AGREEMENT A9135

OVERHEAD DOOR REPAIR SERVICES
THIS AGREEMENT FOR CONTRACT SERVICES (“Agreement”) is made and entered into on June 20, 2022, by and between the City of Palm Springs , a California charter city and municipal c orporation (“City”), and Ollin Dock & Door, Inc., a California corporation, (“Contractor”). City and Contractor are individually referred to as “Party” and are collectively referred to as the “Parties”.

RECITALS
A. C it
y requires the services of a licensed door repair cont ractor, for overhead door repair services, (“Project”).

B. C ontr
actor has submitted to City a proposal to provide overhead door repair services, to City under the terms of this Agreement.

C. B as
ed on its experience, education, training, and reputation, Contr actor is qualified and desires to provide the necessary services to City for the Project.

D. C it
y desires to retain the services of Contractor for the Project.

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditio ns contained herein, and other valuable consider ation, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. CONTRACTOR SERVICES

1.1 Scope of Services . In compliance with all terms and conditions of thi s Agreement, Contractor shall provide services to City as described in the Scope of Services/Work attached to this Agreement as Exhibit “A” and incorporated herein by reference (the “Services ” or “Work”). Exhibit "A" includes the agreed upon schedule of per formance and the schedule of fees. Contractor warrants that the S ervices shall be performed in a competent, professional, and satisfactory manner consistent with the level of care and skill ordinarily exercised by high quality, experienced, and well qua lified members of the profession currently pract icing under similar conditions. In the event of any inconsistency between the terms contained in the Scope of Services/Work and the terms set forth in this Agreement, the terms set forth in this Agreement shall govern.

1.2 Compliance with Law . Contract or sha ll comply with all applicable federal, state, and local laws, statutes and ordinances and all lawful orders, rules, and regulations when performing the Services. Contractor shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement.

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1.3 Licenses and Permits . Contractor shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of t he Services required by this Agreement.

1.4 Familiarity with Work. By executing this Agreement, Contractor warrants that it has carefully considered how the Work should be performed and fully understands the facilities, difficulties, and restrictions attending performance of the Work under this Agreement.

2. TIME FOR COMPLETION
The time for completion of the Services to be performed by Contractor is an essential condition of this Agreement. Contractor shall prosecute regularly and diligently the work of t his Agreement according to the agreed upon s chedule of performance set forth in Exhibit “A .” Neither Party shall be accountable for delays in performance caused by any condition beyond the reasonable control and without the fault or negligence of the non -performing Party. Delays shall not entitle Cont ractor to any additional compensation regardless of the P arty responsible for the delay.

3. COMPENSATION OF CONTRACTOR

3.1 Compensation of Contractor. Contractor shall be compensated and reimbursed for the services rendered under this Agreement in accordance wi th the schedule of fees set forth in Exhibit “A”. The total amount of Compensation shall not exceed $300,000.00.

3.2 Method of Payment . In any month in which Contractor wishes to receive payment, Contractor shall submit to City an invoice for Services rendered prior to the date of the invoice, no later than the first working day of such month, in the form approved by City’s finance director. Payments shall be based on the hourly rates set forth in Exhibit “A” for authorized services performed. City shall pay Contractor for all expenses stated in the invoice that are approved by City and consistent with this Agreement, within thirty (30) days of receipt of Contractor’s invoice.

3.3 Changes . In the even t any change or changes in the Services is reque sted by City, Parties shall execute a written amendment to this Agreement, specifying all proposed amendments, including, but not limited to, any additional fees. An amendment may be entered into:

A. To provide for revisions or modifications to documents , work product, or Work, when required by the enactment or revision of any subsequent law; or B. To provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Contractor’s profession.

3.4 Appropriations. This Agreement is subject to, and contingent upon, funds being appropriated by the City Council of City for each fiscal year. If such appropriations are not made, this Agreement shall automatically terminate without penalty to City.

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Revised 2.9.22 Page 3 of 25

4. PERFORMANCE SCHEDULE

4.1 Time of Essence. Time is of the essence in the performance of this Agreement.

4.2 Schedule of Performance. All Services rendered under this Agreement shall be performed under the agreed upon schedule of perform ance set forth in Exhibit “A .” Any time period extension must be approved in writing by the Contract Officer.

4.3 Force Majeure. The time for performance of S ervices to be rendered under this Agreement may be ext ended because of any delays due to a Force Majeure Event, if Contractor notifies the Contract Officer within ten (10) days of the commencement of the Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Contractor’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable a nd unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the W ork); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” include s ordinances, emergency proclamations and or ders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority. After Contractor notification, the Contract Officer shall investigate the facts and the extent of any necessary delay and extend the time for performing the S ervices for the period of the enforced delay when and if , in the Contract Officer’s judgment, such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the P arties to this Agreement. The Contractor will not receive an adjustment to the contract price or any other compensation. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

4.4 Term. U nless earlier terminated in accordance with Section 4.5 of this Agreement, this Agreement s hall continue in full force and effect for a period of three years , commencing on June 20, 2022, and ending on June 19, 2025, unless ext ended by mutual written agreement of the Parties.

4.5 Termination Prior to Expiration of Term . City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Contractor . W here termination is d ue to the fault of Contractor and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the City. Upon receipt of the notice of terminati on, Contractor shall immediately cease all Services except such as may be specifically approved by the Contract Officer. Contractor shall be entitled to compensation for all S ervices rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Contractor shall not be entitled to payment for unperformed S ervices and shall not be entitled to damages or compensation for ter mination of Work. If the termination is for cause, the City shall have the right to take whatever steps it deems necessary to correct Contractor's deficiencies and charge the cost thereof to Contractor , who shall be liable for the full cost of the City's corrective action.

Contractor may not terminate this Agreement except for cause, upon thirty (30) days written notice to City.

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Revised 2.9.22 Page 4 of 25

5. COORDINATION OF WORK

5.1 Representative of Contractor. The following principal of Contractor is designated as being the principal and representative of Contractor authorized to act and make all decisions in its behalf with respect to the specified Services: Felipe Larios (name), Owner (title).

It is expressly understood that the experience, knowledge, education, capability, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement.

Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services under this Agreement. The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

5.2 Contract Officer. The Contract Officer shall be the City M anager or his/her designee ("Contract Officer"). Contractor shall be responsible for keeping the Contract Officer fully informed of the progress of the performance of the S ervices. Contractor shall refer any decisions that must be made by City to the Co ntract Officer. Unless otherwise specified, any approval of City shall mean the approval of the Contract Officer.

5.3 Prohibition Against Subcontracting or Assignment . The experience, knowledge, education, capability, and reputation of Contractor, it s pr incipals and employees, were a substantial inducement for City to enter into this Agreement. Contractor shall not contract with any other individual or entity to perform any S ervices required under this Agreement without the City's express written approval. In addition, neither this Agreement nor any interest may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provi sions stipulated in this Agreement including without limitation the insurance and indemnification requirements. If Contractor is permitted to subcontract any part of this Agreement by City, Contractor shall be responsible to City for the acts and omissions of i ts subcontractor(s) in the same manner as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City.

5.4 Independent Contractor. Neither City nor any of it s employees shall have any control over the manner, mode , or means by which Contractor , its agents or employees, perform the Services required, except as otherwise specified . Contractor shall perform all required Services as an independent contractor of C ity and shall not be an employee of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role; however, City shall have the right to review Contractor ’s work product, result, and advice. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Contractor shall pay all wages, salaries, and other amounts due personnel in connection with their performance under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ c ompensation insurance. Contractor shall not have any authority to bind City in any manner.

5.5 Personnel. Contractor agrees to assign the following individuals to perform the services in this Agreement. Contractor shall not alter the assignment of the f ollowing personnel Item 1R - 6
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wit
hout the prior written approval of the Contract Officer. Acting through the City Manager, the City shall have the unrestricted right to order the removal of any personnel assigned by Contractor by providing written notice to Contractor.

Name: Title:

Felipe Larios Ow ner

5.6 California Labor Code Requirements.

A. Contractor is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates a nd the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the S ervices are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and i f the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upo n t he 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 p ayroll 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).

B. If the Services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, 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 Agreement 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.

6. INSURANCE
Contractor shall procure and maintain, at its sole cost and expense, policies of insurance as set forth in the attached Exhibit "B", incorporated herein by reference.

7. INDEMNIFICATION.

7.1 Indemnification. To the fullest extent permitted by law, Contractor shall defend (at Contractor’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers , employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, Item 1R - 7
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judgme
nts, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injur ies t o or d eath o f persons (Contractor ’s employees included) , for damage to property, including property owned by City, for any violation of any federal, state, or local law or ordinance or in any manner arising out of, pertaining to, or incident to any acts, errors or omissions , or willful misconduct committed by Contractor, its officers, employees , representatives, and agents, that arise out of or relate to Contractor’s performance of Services or this Agreement. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the Indemnified Parties . Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Contractor ’s indemnification obligation or other liability under this Agreement. Contractor’s indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final.

7.2 Design Professional Services Indemnification and Reimbursement. If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor ’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Contractor’s indemnification obligation shall be limited to the extent which the C laims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor in the performance of the Services or this Agreement , and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction, Contractor ’s liability for such claim, including the cost to defend, shall not exceed the Contractor’s proportionate percentage of fault.

8. RECORDS AND REPORTS

8.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer reports concerning the performance of the S ervices required by this Agreement, or as the Contract Officer shall require.

8.2 Records. Contractor shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and e xpenditures pertainin g in any way to this Agreement. Contractor shall keep such books and records as shall be necessary to properly perform the S ervices required by this Agreement and enable the Contract Officer to evaluate the performance of such Services. Th e Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit , and make records and transcripts from such records.

8.3 Ownership of Documents . All drawings, s pecifications, reports, records, documents, and other materials prepared by Contractor in the performance of this Agreement shall be the property of City. Contractor shall deliver all above-referenced documents to City upon request of the Contract Officer or upon the termination of this Agreement. Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights or ownership of the documents and materials. Contractor may retain copies of such documents for Contractor's own use. Contractor shall have an unrestricted right to use the concepts embodied in such documents.

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Revised 2.9.22 Page 7 of 25

8.4 Release of Documents . All drawings, specifications, reports, records, documents, and other materials prepared by Contractor in the performance of Services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer.

8.5 Audit and Inspection of Records . After receipt of reasonable notice and during the regular busines s hours of City, Contractor shall provide City, or other agents of City, such access to Contractor’s books, records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work data, document s, and activities directly related to Contractor’s performance under this Agreement. Contractor shall maintain such books, records, data, and documents in accordance with generally accepted accounting principles and shall clearly identify and make s uch items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

9. ENFORCEMENT OF AGREEMENT

9.1 California Law. This Agreement shall be construed and inte rpreted both as to validity and to performance of the parties in accordance with the laws of the State of California.

Legal actions concerning any dispute, claim , or matter arising out of or in relation to this Agreement shall be instituted in the Superio r C ourt of t he County of Riverside , State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

9.2 Interpretation. This Agreemen t shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Parties.

Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the var ious sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

9.3 Waiver . No delay or omission in the exercis e of any right or remedy of a non- defaulting Party on any default shall impair such right or remedy or be construed as a waiver.

No consent or approval of City shall be deemed to waive or render unnecessary City’s consent to or approval of any subsequent act of Contractor. Any waiver by either Party of any default must be in writing. No such waiver shall be a waiver of any other default concerning the same or any other provision of this Agreement.

9.4 Rights and Remedies are Cumulative . Except with resp ect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative . The exercise by either P arty of one or more of such rights or remedies shall not preclude the exercise by it, at the sam e o r d ifferent times, of any other rights or remedies for the same default or any other default by the other Party.

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Revised 2.9.22 Page 8 of 25

9.5 Legal Action. In addition to any other rights or remedies, either P arty may take legal action, in law or in equity, to cure, correct , or remedy a ny default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, a declaratory judgment, or any other remedy consistent with the purposes of this Agreement.

9.6 Attorney Fees. In the event any di spute between the Parties with respect to this Agreement results in litigation or any non- judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses. These include but are not limited to reasonable attorney fees, expert contractor fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding.

10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

10.1 Non-Liability of City Officers and Employees . No officer or employee of City shall be personally liable to the Contractor , or any successor -in-interest, in the event of any default or breach by City or for any a mount which may become due to the Contractor or its successor, or for breach of any obligation of the terms of this Agreement.

10.2 Conflict of Interest. Contractor acknowledges that no officer or employee of the City has or shall have any dir ect or indir ect financial interest in this Agreement, nor shall Contractor enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one (1) year thereafter. Contractor warrants that Contractor has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.

10.3 Covenant Against Discrimination . In connection with its performance under this Agreement, Contractor shall not dis criminate ag ainst any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethn icity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non- discrimination in city contracting.

11. MISCELLANEOUS PROVISIONS

11.1 Notice. Any notice, demand, request, consent, approval, or communication that either Party desires, or is required to give to the other Party or any other person shall be in Item 1R - 10
Revised 2.9.22 Page 9 of 25
writin
g and either served personally or sent by pre -paid, first-class mail to the address set forth below. Notice shall be deemed communicated seventy- two (72) hours from the time of mailing if mailed as provided in this Section. Either Party may change its address by notifying the other Party of the change of address in writing.

To City: City of Palm Springs
Attention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Contractor: Ollin Dock & Door, Inc.

Attention: Felipe Larios
23550 Alessandro Boulevard
Moreno Valley, CA 92557

11.2 Integrated Agreement. This Agreement constitutes the entire understanding between the Parties and supersedes and cancels all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter in this Agreement.

11.3 Amendment. No amendments or other modifications of this Agreement shall be binding unless through written agreement signed by all Parties.

11.4 Severability. Whenever possible, each provision of this Agreement s hall b e interpreted in such a manner as to be effective and valid under applicable law. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections c ontained in this Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the Parties.

11.5 Successors in Interest . This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.

11.6 Third Party Beneficiary. Except as may be expressly provided for in this Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party to this Agreement.

11.7 Recitals. The above -referenced Recitals are hereby incorporated into the Agreement as though fully set forth in this Agreement and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.

11.8 Authority. T he persons executing this Agreement on behalf of the P arties warrant that they are duly authorized to execute this Agreement on behalf of Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement.

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11.9 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
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GNATURES ON NEXT PAGE]
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SIG

NATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND OLLIN DOCK & DOOR, INC.

IN WITNESS WHEREOF, t he Parties have executed this Agreement as of the dates stated below.

CONTRACTOR:

By: _______________________________________ By: _________________________________________ Signature Signature
(2nd signature required for Corporations)
Date: Date:

CITY OF PALM SPRINGS:

APPRO
VED BY CITY COUNCIL:

Date: _______ Item No.

APPRO
VED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ Jeffrey S. Ballinger, Monique Lomeli,
City Attorney City Clerk
APPROVED:

By: _______________________________ Date:

City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
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EXHIBIT “A”
CONTR
ACTOR’S

SCOPE OF SERVICES/WORK
Including,
Schedule of Fees
And
Schedule of Performance
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1.1 Sc
ope of Work:

A. Contractor shall furnish labor, materials, and equipment to perform overhead door repair services (Work) on an as -requested basis in city facilities included in this solicitation. The scope of Work shall include, but is not limited to: general repairs to sensors, overhead doors, garage doors, automated doors, doors panels, tracks, pullies, motors, chains, belts, wheels, troubleshooting, testing, inspecting, wiring, wire management, equip ment testing and repair, cable pulling, remote controls, and low voltage, and other work normally under the j urisdiction of a licensed contractor for overhead com mercial doors and bays. This may include project estimation and budgeting of work.

B. Locations:

Location Quantity Door Type
Fire Station #1 2 Commercial roll up, overhead garage
doors
Fire Station #2 8 Commercial roll up, overhead garage
doors
Fire Station #3 2 Commercial roll up, overhead garage
doors
Fire Station #4 2 Commercial roll up, overhead garage
doors
Fire Station #5 2 Commercial roll up, overhead garage
doors
Pavilion 1 Commercial roll up, overhead garage
doors
City Yard Maintenance
Shops
3 Commercial roll up, overhead garage
doors
City Yard – Fleet
Operations
7 Commercial roll up, overhead garage
doors
Police Department 2 Commercial roll up, overhead garage doors
Airport-Baggage Claim 6 Motorized doors for the bag belts Airport-Ticketing 5 Motorized doors
Airport-Bono Concourse 1 Manual bay door in the tug tunnel C. Response
time: The Contractor shall respond to emergency calls for service or repair within twenty -four (24) hours. Emergency responses to include weekends, after-hours, and holidays.

Item 1R - 15
Revised 2.9.22 Page 14 of 25
D. Corr
ection of work deficiencies: The Contractor shall correct work rejected by the City as failing to conform to the requirements in the projec t documents within thirty days. The Contractor shall bear the cost of correcting such rejected work, including the costs of uncovering, replacement, and additional testing.

If the Contractor fails to commence correction of nonconform ing work within a seven day period after written notice, the c ity may correct the deficiencies by other means. In s uch case, the City may exercise rights and remedies as provided in section 9.4 of agreement.

In addition to the Contractor’s other obligations, the contract shall, for a period of one year after substantial completion, correct work not conforming to the requirements of the work.

E. Compliance with regulations and permits: Contractor shall comply with or exceed all relevant statutes, codes , rules, and regulations as may be applicable to this contract and shall be res ponsible for securing any and all permits a s required by the gove rning authority. The City shall reimburse the C ontractor fo r only the actual cost of said permits.

F. Equipment and supplies: Contractor is to provide, at no additional cost to the City, all necessary equipment, hand, and power tools and supplies typically used by the job classi fication and/or assigned trade person. Mechanical o r other equipment used for Work must be o f a type that is approved by the industry and shall be operated in such a manner as not to cause danger of any nature to e mployees or other persons or damage to the building structure, fixtures, furnishings, etc. The City, at its sole and absolute disc retion, may approve to pay for equipment, tools, or materials it determines is not typical of that job classification.

Contractor must not store equipment and/or supplies on any City property.

G. General safet y requirements: The Co ntractor s hall be responsible for all safety precautions required in connection with their work, including regulations of th e Occupational Safety and Health Administ ration (OS HA) and oth er govern ing agencies. T he City reserves the rig ht to oversee all service work f rom a safety standpoint and require the Contractor to take appropriate action to ensure s afety and code compliance.

H. Damages: Nec essary precautions shall be taken at all times to protect persons, property and equipment from i njury or damage. Any damage shal l b e reported, reviewed, and discussed with the facility manager.

I. Security: The Contractor is responsible for en suring all entries/exits to the work area are secure during the discharge of their duties (doors must not be propped open). The Contra ctor does not have the authority and shall not grant access to any person requesting entry into the building or specific work area.

Any items or articles of apparent value found by the Contractor’s personnel in any areas of the building or site shall be tu rned over to the facility manager or on-site Security. Any suspicious articles that may be found, or persons loitering or conducting themselves in a manner to arouse suspicion or possibly in need of help, shall be immediately reported to Police.

Item 1R - 16
Revised 2.9.22 Page 15 of 25
J. Disposa
l and salvage of waste material: Contractor must dispose of or sal vage all waste material generated by its service operations under the contract in an off-site location, in compliance with all applicable laws and regulations. City encourages Contractor to salvage material in an environmentally friendly manner if possible .

City retains the right to retain materials or have another party salvage material, at the discretion and direction of the facility manager.

K. Uniforms: The Contractor sha ll b e required to properly unifor m its service personnel and they shall present a clean and neat appearance at all times. Day service personnel shall have color-coordinated shirts with company name a nd/or logo provided by the Contractor.

Contractor vehicles must display company logo and name.

Contractor must a bide by C ity’s requirements for visiting C ity buildings, including wearing required face coverings.

L. Conduct of contractor’s employees on-site: The following behavior is not allowed on City premises:
• Using improper language.
• Acting in a loud, boisterous, or otherwise unprofessional manner. • Engaging in harassment or otherwise offensive conduct. • Allowing una uthorized persons, including f amily and frie nds, to e nter the building or area in which Contractor’s employee is assigned. Visitor s must stay in the public lobby until Contractor’s employee arrives. • Opening or going through any C ity property, including furnishings, or use of City equipment or property.
• Theft or aiding in the theft
of City property.
• Sleeping on the job.
• Taking scrap material.
• Using tobacco products, including electronic smoking devices, anywhere on City premises.
• Using City tools, equipment or supplies without prior authorization. • Possessing f irearms or a ny ot her weapon, even if legally permi tted to carry firearms or other dangerous weapons.
• Sexual misconduct, sexual abuse, sexual harassment, as defined by state and/or federal law.

Contractor’s employees deemed noncompliant by City will be removed immediately and replaced within twenty-four (24) hours. Contractor’s employees must submit to we apons screening as directed. Contractor’s employees must be able to understan d, read and communicate in English under the performance of this Contract. Contractor must observe and comply with all of C ity’s present and future rules and regulations regarding conduct on the premises.

1.2 Insurance Requirements:

Item 1R - 17
Revised 2.9.22 Page 16 of 25
The C
ontractor shall meet all insurance requirements of the City, including but not limited to, t he provis ions of pers onal and prope rty liability, including automobile coverage, and Worker's Compensation, in limits acceptable to the City.

1.3 License Requirement:

1. Be licensed in accordance with the Palm Springs Municipal Code, Chapter 3.40 through 3.96 entitled Business Tax;

2. Possess any other applicable license required in the performance of these services.

1.4 Term of Contract:

The term of this contract will be for three years, with two, one year renewal options upon mutual consent of the City and the Contractor.

1.5 Option to Renew:

At the sole discretion of the City, the Contract may be renewed f or two one-year options or any portion thereof. If the City exercises its option to extend, the unit prices may be adjusted (decreased or increas ed) at t he beginning of a ny such r enewal perio d to correspond with the most recent a nnual change to the Consume r Price Index for All Urban Consumers as published by the U.S. Bureau of Labor Statistics for the Ri verside- San Bernardino-Ontario Areas.

1.6 Adjustment of Services:

The City reserves the right t o red uce or in crease, or otherwise adj ust the scope of services.

1.7 Pricing:

1. T
he pricing included in this Contract shall be firm for the first year of the Contract.

2. The unit prices may be adjusted (decreased or in creased) once a year to c orrespond with the mo st re cent annual change to the Consumer Price Index for All Urban Consumers as published by the U.S. Bureaus of Labor Statistics for the Riverside-San Bernardino-Ontario Areas.

3. The City will only pay for the it ems listed on the bid form, and pe rmit and dis posal fees. This does not include acce ss to public utilities. Contractor must incorporate all of i ts costs in its unit bid prices, includ ing but not limited to labor, supervision, project management, overhead, profit, onboarding tr aining, trave l, mileage, truck charges, fuel charges, service call charges, parking, deliv ery, portal-to-portal charges, environmental fees, shop supplies and consumable incidental materials. The City will not pay for subcontractors, r ental of eq uipment/tools, and purc hase of materials/supplies unless the City authorized payment of the applicable items.

1.8 Payment:

The resulting contract for these services is an on- call as needed contract. No sp ecific amount of work is guaranteed. The contract val ue is an estimated value only. All wor k authorized under the contract will be compensated on a time and material basis as outlined in the Invoicing Section.

1.9 Invoicing:

Item 1R - 18
Revised 2.9.22 Page 17 of 25
Con
tractor will submit an itemized invoice monthly. Billings must reference a pur chase order number and shall indicate the uni t (contract) price. Contractor will be paid for the actual hours worked at the rates shown in the contract. Parts, materials, equipment, and subcontractor costs will be compensated at actual cost with receipts required w ith allowable markup as outline in t he contract. Contractor shall break out the line items on the invoice in accordance with the line items on the bid form. Contractor must provide back-up documentation for materials, subcontractor, rented equipment, per mits, disposal and recycling fees. Invoices that are submitted with incorrect prices may be returned fo r correction before any payments to the contractor are authorized. It shall be the contractor’s responsibility to submit a correct invoice. The City shal l not be responsible for payment until a co rrect inv oice is received. The invoice shall be a ccompanied by receipts, dated, and signed by a City Employee, verifying the work was done. Invoices and receipts will be submitted to the Contract Officer for approval. All invoices are to be sent as one document, per month to: [email protected] .

1.10 Special Security Requirement – For Palm Springs Police Department and Palm Springs International Airport:

1. POLICE DEPARTMENT:

Any pe rsonnel o f Contra ctor assigned to perform services at the P alm Sp rings Police Department must pass a Criminal Histo ry Records Check (CHRC ) prior to performing services at this f acility. The CHRC(s) will be provided at no charge to Contractor. Contractor shall coordinate the record checks with the City’ s Contract Officer. The City will accept as evidence of passing such a test a LiveScan car d issued by another government agency.

2. A IRPORT SECURED ACCESS TO WORK AREAS:
a. Criminal history Records Check (CHRC) and TSA Security Threat Assessment (STA) – The Contracto r will be req uired to submit the City, prior to the commencement of services, an Auth orized Si gnatory Aut hority L etter authorizing spec ific Contractor representatives t o approve the issuance of Airport Id entification badges and the processing of a fi ngerprint CHRC and STAs. Electronic links to this letter and th e Fingerprint/Badge application can be found on the Airport’s website at http://www.palm-springs.ca.gov b. Unde r cer tain ci rcumstances, and out of t he contr ol of the City, s ecurity measures may change on short notice. No deviations from any securi ty measure shall be allowed at any time.
c. Restricted Area Access – All Con tractor personnel who require un escorted access to the restricted areas of the Airp ort, prior to the is suance of an Airport Identification Badge , must successfully complete a fingerprint based CH RC and Security Threat Assessment (STA). In accordance with CFR 49 1542.209, the CHRC must disclose that the applicant has not been convicted, or found not guilty by reason of insanity, of any of the disqualifying crimes listed below or as sta ted in 49 CFR 1542.209, during the 10 years before the date of the individual’s application for unescorted access authority, or while the individual Item 1R - 19
Revised 2.9.22 Page 18 of 25
has une s
corted ac cess author ity. The disqualifying criminal offense s are as follows:
1) Forgery of c ertificates, false making of aircraft, and other registration violations; 49 U.S.C. 46306.
2) Interference with air navigation; 49 U.S.C. 46308.
3) Improper transport ation of a hazardous material; 49 U.S.C. 46312. 4) Aircraft piracy; 49 U.S.C. 46502.
5) Interference with flight crew members or flight attendants; 49 U.S.C. 46504.
6) Commi ssion of certain crimes aboard aircraft in flight; 46506. 7) Carrying a weapon or e xplosive aboard aircraft; 49 U.S.C. 46506. 8) Conveying false information and threats; 49 U.S.C. 46507. 9) Aircraft piracy outside the special aircraft jurisdiction of the United States; 49 U.S.C. 46502(b).
10) Lighting violations involving transporting controlled substances; 49 U.S.C. 46315.
11) Unlawful entr y into an aircraft or airport area that serves air carriers or foreign air carriers contrary to established security requirements; 49 U.S.C. 46314.
12) D estruction of an aircraft or aircraft facility; 18 U.S.C. 32. 13) Murder.
14) Assault with intent to murder.
15) Espionage.
16) Sedition.
17) Kidnapping or hos tage taking.
18) T reason.
19) Rape or aggravated sexual abuse.
20) Unlawful possession, use , sale, distribution, or manufacture of an explosive or weapon.
21) Extortion.
22) Armed or felony unarmed robbery.
23) Distribution of, or intent to distribute, a controlled substance; 24) Felony arson.
25) Felony involving a threat.
26) Felony involving:

Item 1R - 20
Revised 2.9.22 Page 19 of 25
i) Willful des
truction of property;
ii) Importation or manufacture of a controlled substance; iii) Burglary;
iv) Theft;
v) Dishonesty, fraud, or misrepresentati on;
vi) P ossession or distribution of stolen property;
vii) Aggravated assault;
viii) Bribery; or
ix) Illegal possession of a con trolled substance punishable by a maximum term of imprisonment of more than 1 year.
27) Violence at international airports; 18 U.S.C. 37.
28) Conspiracy or at tempt to commit any of the criminal acts listed.

3. Employee Security B adges – All Employees, Agents, Vendors, Invitees , Etc. of the Contractor, or Subcontractors requiring access to the work site shall, in accordance with the PS P Airport Security Plan, be requir ed to display airport issued identification or be under the escort by prope rly badged personnel.

Supervisors sha ll be b adged with a Palm S prings International Airport Photo Badge. These badges will be i dentified numerically and i ssued to indi vidual employees w ith a permanent record m aintained on each individual to whom a badge is issued. At the completion of the c ontract, all badges will be returned to airport, or a charge of $60 per badge (subject to chan ge) will be assess ed for all badges not returned . As part of the badge applica tion process, each applicant will be fingerprinted fo r u se i n an FBI Criminal Recor ds search . Any per son whose criminal record reveals offenses listed by the FAA as disqualifying offenses will be denied a badge and will be prohibited from unescorted access to the project site.

All required paperwork and ID badge applications shall be submitted a minimum of two weeks before issuance of any badge. The Contractor and its staff ar e responsible for attending SIDA training and completing security badge application.

Attendance of the video- based class and issuance of the badge may take in exc ess of 3 hours. There will be a $50 charge (subject to change) for the FBI background check and fingerprinting proce ss, and a $50 charge (subject to c hange) for the badge for a total of $100.00.

4. Violations - All violations of Ai rport s ecurity are also v iolations of th e City of Palm Springs Municipal Title 16, California Vehicle code and/or the C ode of Federal Regulatio ns. Any s uch violation may res ult in arres t, the issuance of a citation and/or the immediate revocation of access privileges.

Item 1R - 21
Revised 2.9.22 Page 20 of 25
Item 1R - 22

ATTACHMENT F

BID FORM
INVITATION FOR BIDS (IFB 22-17)

OVERHEAD DOOR REPAIR SERVICES
Responding to this IFB for overhead door repair services, the undersigned bidder proposes and agrees to provide the services and work In accordance with the specifications. Bidder proposes and agrees to 1urnish all labor, equipment, materials, supervision, and service necessary to complete said Work i n accordance with the Specifications of the City of Palm Springs and will accept as full payment therefore, the following unit cost amounts. The City of Palm Springs will not accept any additional charges, lees, etc. that are not already included or incorporated in the below unit costs.

The Unit Pricing shall remain fixed for the firat year. For additional years, Contractor may request a price adjustment not to exceed the Bureau of Labor Statistic's Consumer Price Index (CPI) for the Riverside-San Bernardino-Ontario region for the prior 12 month period effective on the annive=ry date. Optional renewal yeara 4 and 5, and any associated CPI increase, are at the mutual consent of the City and the Contractor.

ITEM DESCRIPTION UNIT QUANTITY UNIT PRICE SUBTOTAL
1 Foreman Regula r Billing Rote HR 50 ,l 1 1 io 0. C 17:00AM 5:00PM) &, 151, ,0 0 0 2 Foreman Overtime Billing Rate HR 5 4; J.t70.o ,h 15:00PM - 7:00AMI ~Z.l>'i . 0 0 3 Foreman Holiday Billing Rate HR 5 14- t,Si.,o . ob I8atu rdav/Sundav/Holidav\ d>.2-ll. ·O 0 4 Journeyman Regular Billing Rate HR 100 17:00AM 5:00PMI ,I, 1c;i. oo Id. 1-~o .oo 5 Journeyman Overtime Billing Rate HR 5 15:00PM- 7:00AM) 4..?u,.oO 41,170,oO 6 Journeyman Holiday Billing Rate HR 5 ISatu rdav/Sundav/Holidavl g,:,,11,.. 0 0 t 1,S<,,0.0£ 7 Apprentice Regular Billing Rate HR 25 17:00AM - 5:00PM) 14: ,s1,.oo <I. 3,'loo .oo 8 Apprentice Overtime Billing Rate HR 5 d.. I5:00PM - 7:00AMI 4U'1 -0O I, (70 ,00 9 Apprentice Holiday Billing Rate HR 5 .-t 1 ,5<,o. oD /Saturd,.,,/Sundav/Holidavl & o11- ·00 TOTAL
I 7 I
ITEM DESCRIPTION ¾ MARK-UP
10 Parts and Materials /Enter vour % mark-uo for narts & materials) 115 ~/.... 11 Enuinment Rental (Enter vour % mark-un for enuinment rentals) -1 F. "'/z, 12 Subcontractora /Enter vour % mark-uo for subcontractors) ,o~ •p1ease note : 1111s hid rorm Is to determine lhe lowc::st bidder eind will be used to estab lish the contract unit prices. The contract value will be set at the City budget amount.

Revised 2.9.22 Page 21 of 25
Item 1R - 23
Certified by: Felipe R. Larios
Firm Name: Ollin Dock & Door Inc.

Signature of Authorized Person: /~~
Printed Name: Felipe R. Larios
Title: Estimator & Technician
Date: Tuesday May 10 2022
Revised 2.9.22 Page 22 of 25
EXHIBIT “B”
INSURA

NCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
Item 1R - 24
Revised 2.9.22 Page 23 of 25

INSURANCE

1. Procurement and Maintenance of Insurance. Contractor shall procure and maintain public liability and property damage insurance against all claims for injuries agains t persons or damages to property resulting from Contractor’ s performance under this Agreement.

Contractor shall procure and maintain all insurance at its sole cost and expense, in a form and content satisfactory to the City, and submit concurre ntly with its execution of this Agreement .

Contractor shall also carry workers’ compensation insurance in accordance with California workers’ compensation laws. Such insurance shall be kept in full force and effect during the term of this Agreement , incl uding any e xtensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any proposed cancellation. Certificates of insurance evidencing the foregoing and designating the City, its elected officials, officer s, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, certificates, and endorse ments evidencing the same shall not be construed as a limitation of Contractor’s obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers.

2. M inimum Scope of Insurance . The minimum amount of insurance requir ed under this Agreement shall be as follows:

1. Comprehensive general liability and personal injury with limits of at least one million dollars ($1,000,000.00) combined single limit coverage per occurrence and two million dollars ($2,000,000) general aggregate;

2. Automobile liability insurance with limits of at least one million dollars ($1,000,000.00) per occurrence;

3. Professional liability (errors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dol lars ($2,000,000) annual aggregate is:
_________ required
___X____ is not required;

4. Workers’ Compensation insurance in the statutory amount as required by the State of California and Employer’s Liability Insurance with limits of at least one mil lion dollars $1 million per occurrence. If Contractor has no employees, Contractor shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3. Primary Insurance. For any claims related to this Agreement, Contr actor’s insurance coverage shall be primary with respect to the City and its respective elected officials, officers, employees, agents, and volunteers. Any insurance or self -insurance maintained by City and its respective elected officials, officers, empl oyees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability Insurance only, the insurer shall waive all rights of subrogation and Item 1R - 25
Revised 2.9.22 Page 24 of 25
contr
ibution it may have again st City, its elected officials, offic ers, employees, agents, and volunteers.

4. Errors and Omissions Coverage . If Errors & Omissions Insurance is required, and if Contractor provides claims made profes sional liability insurance, Contractor shall also agree in writing either (1) to purchase tail insurance in the amount required by this Agreement to cover claims made within three years of the completion of Contractor ’s services under this Agreement, or (2) to maintain professional liability insurance coverag e with the same carrier in the amount required by this Agreement for at least three years after completion of Contractor’ s services under this Agreement. Contractor shall also be required to provide evidence to City of the purchase of the required tail insurance or continuation of the professional liability policy.

5. Sufficiency of Insurers. Insurance required in this Agreement shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless otherwise acceptable to the City.

6. Verification of Coverage. Contractor shall furnish City with both certificates of insurance and endorsements, inc luding additional insured endorsement s, affecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Contractor’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required f or Errors a nd Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Ins urance Cover age with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:

A. "T
he C
ity of Palm Springs, its officials, employees, and agents are named as an additional insured…” ("as respects City of Palm Springs Cont ract No.___" or "for any and all work performed with the City" may be included in this statement).

B. " T his
insurance is primary and non- contributory over any insurance or self - insurance the City may have..." ("as respects City of Palm Springs Contract No.___" or "for any and all work performed with the City" may be included in this statement).

C. " Shoul d any of
the above- described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the C ertificate Holder named." Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.

Item 1R - 26
Revised 2.9.22 Page 25 of 25
D. Both t
he Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs s hall be named the certificate holder on the policies.

All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter.

Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.

7. Deductibles and Self -Insured Retentions. Any deductibles or self -insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected officials, officers, employees, agents, and volunteers; or (2) Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and def ense expens es.

Certificates of Insurance m ust include evidence of the amount of any deductible or self -insured retention under the policy. Contractor guarantees payment of all deductibles and self -insured retentions.

8. Severa bility of Interests (Separat ion of Insu reds). This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer’s liability.

Item 1R - 27

ATTACHMENT D

CITY OF PALM SPRINGS

PUBLIC INTEGRITY DISCLOSURE
{INSTRUCTIONS FOR APPLICANTS)
INVITATION FOR BIDS (IFB 22-17)

OVERHEAD DOOR REPAIR SERVICES

THIS FORM MUST BE COMPLETED AND SUBMITTED WITH YOUR BID Who Must File?
Applicants that are NOT a natural person or group of natural people that will be identified on the application and seek a City approval determined by a vote of City officials. Examples include corporations, limited liability companies, trusts, etc. that seek a City Council approval, or an approval by one of the City's board or commissions.

Why Must I File?
The City of Palm Springs Public Integrity Ordinance advances transparency in municipal government and assists public officials in avoiding conflicts of interest. The City's Public Integrity Ordinance, codified in Chapter 2.60 of the municipal code, reflects the City's interest in ensuring that companies (and other legal entities that are not natural people) doing business in the community are transparent and make disclosure as to their ownership and management, and further that those companies disclose the identity of any person, with an ownership interest worth two thousand dollars ($2,000) or more, who has a material financial relationship with any elected or appointed voting City official, or with the City Manager or City Attorney.

Note: A material financial relationship is a relationship between someone who is an owner/investor in the applicant entity and a voting official (or the City Manager or City Attorney), which relationship includes any of the following:
(1) the owner/investor and the official have done business together during the year prior to the application;
(2) the official has earned income from the owner/investor during the year prior to the filing of the application;
(3) the owner/investor has given the official gifts worth fifty dollars ($50) or more during the year prior to the filing of the application; or
(4) the official might reasonably be anticipated to gain or lose money or a thing of value, based upon the owner/investor's interest in the applicant entity, in relation to the application's outcome.

When Must I File?
You must file this form with the Office of the City Clerk at the same time when you file your application for a City approval determined by a vote of City officials, whether elected or appointed.

Item 1R - 28
What Must I Disclose?
A. The names of all natural persons who are officers, directors, members, managers, trustees, and other fiduciaries serving trusts or other types of organizations (attorneys, accountants, etc.).

Note: (1) only trusts or other organizations that are not the fiduciaries, (2) if a second entity that is not a natural person serves the applicant entity (e.g., as a member of an applicant LLC), then all officers, directors, members, managers, trustees, etc., of the second entity must be disclosed).

B. The names of persons owning an interest with a value of two thousand dollars ($2,000) or more who have a material financial relationship with an elected or appointed City official who will vote on the applicant's application, or with the City Manager or City Attorney.

What if I Have Questions?

PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.
*There are some additional supplementary instructions with an example following the form should you need further clarification.

Item 1R - 29

1. Name of Entity

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

4. State where Entity is Registered with Secretary of
If other than California, is the Entity also registered in California? D Yes D No

5. Type of Entity
ESlCorporation D Limited Liability Company D Partnership D Trust D Other (please specify)

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
n-t;l�-�l .... ��E;�]Z�_L._�_a.,�'-o_-5_· ____ � Officer □ Director □ Member □ Manager [name] D General Partner D Limited Partner
□Other ___________ _
]�A._t..r_C_i �(�-()�c�+t_c_-1ic ____ J2l Officer D Director D Member D Manager [name] D General Partner D Limited Partner
D Other __________ _
--------------□ Officer DJ)irector D Member D Manager
[name] D General Partner D Limited Partner
D Other __________ _
Item 1R - 30

7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity

EXAMPLE

JANE DOE
[name of owner/investor]
t�\,,nF. 12. L-Aa--\.o S
A.'
Ft?t.p-e- <i2- . �tz,lO 5 1
[name of owner/investor]
�t--rt-TT 0 C<HC�'
B.
"\A....rC" t [ 00d-lo-A-
[name of owner/investor]
C.
[name of owner/investor]
D.
[name of owner/investor]
E.
[name of owner/investor]
50%, ABC COMPANY, Inc.
[percentage of beneficial interest in entity and
name of entity]
501/0
[percentage of beneficial interest in entity and
name of entity]
So/o
[percentage of beneficial interest in entity and
name of entity]
[percentage of beneficial interest in entity and
name of entity]
[percentage of beneficial interest in entity and
name of entity]
[percentage of beneficial interest in entity
and name of entity]

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
�nature of Disclosing Party, Printed Name, Title Date
�'\2...�s � \ \? � -µ. . L--�� \.e-S
011'-lN'�
Lt -l �--u:.,-Z.Z
Item 1R - 31
I
City of Palm Springs, CA.
· Business Disclosure Supplementary Instructions
In an effort to ensure we capture the required business entity information in accordance with the attached instructions, we provide you these supplementary instructions to clearly identify the required information, and the format the information should be provided.

If you, as the applicant, are a business entity (i.e. a corporation or limited liability company), and it is also comprised of other business entities as its members or having a financial interest, all other such business entities must also be disclosed, including those entities other business entities, if any.

Ultimately, the City's disclosure document (attached) requires a listing identifying all natural persons having any financial interest over 5% of the business entities (and any other business entities comprising your business entity).

As an example, Applicant is: Acme Brothers, Inc., a California corporation, whose officers are:

John Doe, Jill Doe, and Jay Doe, which is owned 50% by Acme Brothers, LLC, a California limited liability company, and John Doe (25% interest) and Jill Doe (25% interest). Acme Brothers, LLC, is managed by Acme Brothers 2, Inc., a California corporation, whose officers are: George Doe, Bill Doe, and Jane Doe, which is owned 100% by Acme Brothers 2, LLC, a California limited liability company, which is managed by George Doe, with George Doe and Jane Doe having 50% interest each.

The full business entity disclosure in this example would resemble the following:

1. Acme Brothers, Inc., a California corporation
a. Officers: John Doe, Jill Doe, and Jay Doe
b. Ownership:
i. 50% Acme Brothers, LLC, a California limited liability company ii. 25% John Doe
iii. 25% Jill Doe

2. Acme Brothers, LLC, a California limited liability company a. Managers: Acme Brothers 2, Inc., a California corporation b. Ownership: 100% Acme Brothers 2, Inc., a California corporation

3. Acme Brothers 2, Inc., a California corporation
a. Officers: George Doe, Bill Doe, and Jane Doe
b. Ownership: 100% Acme Brothers 2, LLC, a California limited liability company

4. Acme Brothers 2, LLC, a California limited liability company a. Managers: George Doe
b. Ownership:
i. 50%
Item 1R - 32
Certified by: t-'e.h'?'f: 12.L.A�\O ...S
Firm Name: 0 LL-\ N Uo d�- '5 DO ore. , 1 N l. •
Signature of Authorized Person: li \"" c L {�., ('.'
Printed Name: �t\\y> � rz. LA�to5
Title: 0 ,t,,,( "-'F(Z
Date: '-f / 1bh..o�� --+:,,_,_.,�,r=�=--------------------- Item 1R - 33

CITY COUNCIL STAFF REPORT
06/16/2022   1. S.

City Clerk -

SUBJECT

AWARD A CONSTRUCTION CONTRACT TO FERREIRA CONSTRUCTION
COMPANY, INC., A NEW JERSEY CORPORATION, IN THE AMOUNT OF $2,342,139 FOR THE BOGERT TRAIL SEWAGE LIFT STATION, CITY PROJECT NO. 18-18
RECOMMENDATION:

Award a construction contract to Ferreira Construction Company, Inc., a New Jersey Corporation, in the amount of $2,342,139 for the Bogert Trail Sewage Lift Station, City Project No. 18-18.

1. Authorize the City Manager or his designee to execute all necessary documents.2.

Attachments
1S

CITY COUNCIL STAFF REPORT

DATE: June 16, 2022 CONSENT CALENDAR

SUBJECT: A WARD A CONSTRUCTION CONTRACT TO FERREIRA
CONSTRUCTION COMPANY, INC., A NEW JERSEY CORPORATION, IN THE AMOUNT OF $2,342,139 FOR THE BOGERT TRAIL SEWAGE LIFT STATION, CITY PROJECT NO. 18-18

FROM: Justin Clifton, City Manager

BY: Engineering Division

SUMMARY:

Award of this contract will allow the City to proceed with the construction of a sewage lift station and force main. The lift station will be located along the Bogert Trail right -of-way adjacent to the Palm Canyon Wash.

RECOMMENDATION:

1. Award a construction contract to Ferreira Construction Company, Inc. , a New Jersey Corporation, in the amount of $2,342,139 for the Bogert Trail Sewage Lift Station, City Project No. 18-18 (“Project”).

2. Authorize the City Manager or his designee to execute all necessary documents.

BUSINESS PRINCIPAL DISCLOSURE:

The Public Integrity Disclosure Form from Ferreira Construction Company, Inc. is included as Attachment A.

BACKGROUND:

The City’s sewer collection system operates by gravity flow. Wastewater flows through the system from higher elevations to lower elevations where the wastewater is ultimately routed to the City’s wastewater treatment plant (“WWTP”) for treatment.

Given the natural topography in certain areas within the system, gravity -fed sewer lines reach a low point, or “sump”, and the wastewater must be pumped, or “lifted”, to a higher elevation to continue its conveyance by gravity flow into other components of the sewer Item 1S - 1
City Council Staff Report
June 16, 2022 -- Page 2
Award Bogert Trail Sewage LS

collection system. The City’s wastewater collection system has 5 sewer lift stations in various areas of the City.

On December 19, 2018, the City Council approved a purchase order with a not-to-exceed amount of $100,000 to MWH Constructors, Inc. (now Stantec Consulting Services, Inc., “Stantec”) for the design of a new sewage lift station to replace the existing sewer siphon located under the Palm Canyon Wash.

The Bogert Trail Sewage Lift Station currently uses a sewer s iphon that allows wastewater to flow underneath the Palm Canyon Wash where gravity flow is not possible due to the depth of the channel . The siphon operates using a difference in hydrostatic pressure without the need for pumping, where the wastewater in the low point of the siphon collects until sufficient pressure develops to push the wastewater into the downstream higher portion of the siphon and into the gravity collection system.

The existing Bogert Trail siphon is shown in Figure 1 below.

Figure 1. Project Location
Item 1S - 2
City Council Staff Report
June 16, 2022 -- Page 3
Award Bogert Trail Sewage LS

On June 5, 2019, the City Council approved an increase to the purchase order to Stantec for design in the amount of $15,500 to incorporate their recommended wet well/dry well system to address odor issues at this location. The wet well would operate with a pit that will collect sewage, and the pump would only activate once a certain level in the pit is reached. The dry well would act as a companion well to house the pumps, controls, and related equipment.

On June 10, 2021, the City Council approved the plans, specifications and engineer’s estimate for the Project and authorized Staff to advertise and solicit bids.

STAFF ANALYSIS:

On March 17, 2022, Staff advertised the Project to plan rooms and through the procurement program, PlanetBids
TM, to allow the submissions of bids electronically. The contract documents were provided free of charge to prospective bidders.

On May 17, 2022, at 3:00 p.m., the Engineering Division received two bids from the following contractors:

Company Location Bid Amount
Ferreira Construction Company, Inc. Rancho Cucamonga, CA $2,342,139 Myers & Sons Construction, LLC Sacramento, CA $2,717,000

Ferreira Construction Company, Inc. submitted the lowest responsive, responsible bid in the amount of $2,342,139. The Engineer’s Estimate for the Project was $2,300,000.

Local Business Preference Compliance

Section 7.09.030 of the Palm Springs Municipal Code (“PSMC”), “Local Business Preference Program”, requires prime contractors to use good faith efforts to sub-contract the supply of materials and equipment to local business enterprises and to sub- contract services to businesses whose work force resides within the Coachella Valley. Ferreira Construction Company, Inc. is not considered a local business but has demonstrat ed sufficient evidence of good faith efforts to subcontract services and supply of materials to local business. Ferreira Construction Company, Inc. has subcontract ed a service with a local business of the Coachella Valley.

Bid Analysis

Staff reviewed all bid documents submitted by the apparent low bidder and determined that Ferreira Construction Company, Inc. complies with the instruction to bidders and has submitted the lowest responsive and responsible bid. Staff recommends that the Ci ty Council approve the bid submitted by Ferreira Construction Company, Inc. A construction agreement is included as Attachment B.

Item 1S - 3
City Council Staff Report
June 16, 2022 -- Page 4
Award Bogert Trail Sewage LS

ENVIRONMENTAL ASSESSMENT:

In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15303 “New Construction or Conversion of Small Structures”, Class 3 projects consist of construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. Therefore, Staff has determined that the Bogert Trail Sewage Lift Station, City Project No. 18- 18, is considered categorically exempt from CEQA.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with City Council Priority “Community Infrastructure”, specifically 3A (Improve City Facilities).

FISCAL IMPACT:

The estimated project costs are identified in the following table:

Table of Project Costs Amount
Wastewater Fund – 2022 Budget $2,537,500
Construction (this item) ($2,342,139)
10% Contingency (this item) ($234,214)
Construction Management – contract approved 4/21/22 ($295,810) Project Administration (staff time) ($50,000)
Appropriate Additional Funds from Wastewater CIP Balance $384,633 Budget Remaining $0

Because construction costs exceed the original budget, staff requests an appropriation of an additional $384,633 from Wastewater Capital Improvement Projects balance (Account 4207500-80000) to cover the remaining amount, a 10% construction contingency, and staff time.

REVIEWED BY:

City Engineer: Joel Montalvo
Deputy City Manager: Flinn Fagg
City Manager: Justin Clifton

ATTACHMENTS:

A. Public Integrity Disclosure Forms
B. Ferreira Construction Company, Inc. Agreement
Item 1S - 4
Attachment A
Item 1S - 5
Item 1S - 6

PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM

1. Name of Entity
Ferreira Construction Co. Inc. dba Ferreira Coastal Construction Co.

2. Address of Entity (Principle Place of Business)
10370 Commerce Center Drive Suite 8200 Rancho Cucamonqa CA 91730

3. Local or California Address (if different than #2)
Same as above

4. State where Entity is Registered with Secretary of State New Jersey
If other than California, is the Entity also registered in California? !YI' Yes  No

5. Type of Entity
~ Corporation  Limited Liability Company  Partnership  Trust  Other (please specify)

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and otherfiduciaries for the member, manager, trust or other entity Nelson Ferreira
Brandon Pensick
Lou Pacheco
IYI' Officer  Director  Member  Manager
 General Partner  Limited Partner
 Other
IYf Officer  Director  Member  Manager
 General Partner  Limited Partner
 Other
!YI' Officer  Director  Member D Manager
 General Partner  Limited Partner
 Other

CITY OF PALM SPRINGS- PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

BOGERT TRAIL SEWAGE LIFT STATION
CITY PROJECT NO. 18-18
FEBRUARY 2022
Item 1S - 7

7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity EXAMPLE:

Jane Doe 50%, ABC Company, Inc.
[name of owner/investor] [percentage of beneficial interest in entity and name of entitvl
A.

Ferreira Construction Co. Inc. dba
Nelson Ferreira 100% Ferreira Coastal Construction Co.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entitvl

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Date

05.17.2022

PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.

CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

BOGERT TRAIL SEWAGE LIFT STATION
CITY PROJECT NO. 18-18
FEBRUARY 2022

Item 1S - 8
Who Must File?

CITY OF PALM SPRINGS

PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTIONS FOR APPLICANTS)
Applicants that are NOT a natural person or group of natural people that will be identified on the application, and seek a City approval determined by a vote of City officials. Examples include corporations, limited liability companies, trusts, etc. that seek a City Council approval, or an approval by one of the City's board or commissions.

Why Must I File?
The City of Palm Springs Public Integrity Ordinance advances transparency in municipal government and assists public officials in avoiding conflicts of interest. The City's Public Integrity Ordinance, codified in Chapter 2.60 of the municipal code, reflects the City's interest in ensuring that companies (and other legal entities that are not natural people) doing business in the community are transparent and make disclosure as to their ownership and management, and further that those companies disclose the identity of any person, with a beneficial ownership interest of five percent (5%) or more.

When Must I File?
You must file this form with the Office of the City Clerk, or designee, at the same time when you file your application for a City approval determined by a vote of City officials, whether elected or appointed. (We are collecting this with the bid proposals) What Must I Disclose?

1. The names of all natural persons who are officers, directors, members, managers, trustees, and other fiduciaries serving trusts or other types of organizations (attorneys, accountants, etc.).

Notes:
(1) you must make these disclosures in relation to the applicant entity, and also in relation to any related entity that owns a part of, or makes a profit based upon the business of the applicant entity.

Disclosures may include parent, subsidiary or affiliated entities of the applicant entity; (2) if any entity that is not a natural person serves as the applicant entity (e.g. as a member of the applicant LLC), then all officers, directors, members, managers, trustees, etc., of the second entity must be disclosed on an additional, separate form.

2. The names of persons owning a beneficial interest of five percent (5%) or more in your entity, Owners/investors who have such an interest hold either investment power or voting power, i.e., they can (i) sell or transfer their interest, or (ii) vote their interest in management decisions.

USE ADDITIONAL PAGES AS NECESSARY
What if I Have Questions?
If you have any questions about how to complete this form, please contact the Office of the City Clerk, (760) 323-8206, [email protected].

CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE
{INSTRUCTIONS FOR APPLICANTS)

BOGERT TRAIL SEWAGE LIFT STATION
CITY PROJECT NO. 18-18
FEBRUARY 2022
Attachment B
Item 1S - 9
Revised 2.9.22 Page 1 of 6

AGREEMENT A
(CONSTRUCTION CONTRACT)

THIS AGREEMENT made this day of , 20 , by and between the City of Palm Springs, a charter city, organized and existing in the County of Riverside, under and by virtue of the laws of the State of California, hereinafter designated as the City, and Ferreira Construction Company, Inc ., a New Jersey Cor poration, hereinafter designated as the Contractor.

The City and the Contractor, in consideration of the mutual covenants hereinafter set forth, agree as follows:

ARTICLE 1 -- THE WORK

For and in consideration of the payments and agreements to be made and performed by City, Contractor agrees to furnish all materials and perform all work requ ired to complete the Work as specified in the Contract Documents, and as generally indicated under the Bid Schedule(s) for the Project entitled:

BOGERT TRAIL SEWAGE LIFT STATION PROJECT CP 18-18

The Work c omprises include but are not limited to: all materials, labor, tools, equipment, apparatus, facilities, transportation, incidentals necessary to furnish, all implied requirements, and all appurtenant work as required to deliver and install the Bogert Trail Sewage Lift Station Project No. 18- 18, including, a new belowground sewer lift station consisting of a new wet well and dry well, and a 4- inch sewer force main that connects to the existing manhole to the west of the Bogert Trail Bridge as detailed within the contract documents.

ARTICLE 2 -- COMMENCEMENT AND COMPLETION

The Work to be performed under this Contract shall commence on the date specified in the Notice to Proc eed by the City, and the Work s hall be fu lly c ompleted within the tim e specified in the Notice to Proceed.

The City and the Contractor recognize that time is of the e ssence of this Agreement, and that the City will suffer financial loss if the Work is not completed within the time specified in Article 2, herein, plus any extensions t hereof a llowed in a ccordance with applicable provisions of the Standard Specifications, as modified herein. The parties also recognize the delays, expense, and difficulties involved in proving in a legal proceeding the actual loss suffered by the Ci ty if the Work is not c ompleted on ti me. Accordingly, in stead o f requiring any such proof, the City and the Contractor agree that as liquidated damages or delay (but not as a penalty), the Contractor shall pay the City the sum specified in Section 6-9 of the Special Provisions for each calendar day that expires after the time specified in Article 2, herein. In executing the Agreement, the Contractor acknowledges it has reviewed the provisi ons of the Standard S pecifications, as modified herein, related t o li quidated damages, and has made i tself aware of the a ctual loss incu rred by the City due to the inability to complete the Work within the time specified in the Notice to Proceed. This Section Item 1S - 10
Revised 2.9.22 Page 2 of 6

does not exclude recovery of other damages specified in the Contract Documents.

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

ARTICLE 3 -- CONTRACT PRICE

The City shall pay the C ontractor for the c ompletion of the Work , in accordance with the Contract Documents, in current funds the Contract Price(s) named in the Contractor's Bid Proposal and Bid Schedule(s), and any duly authorized Construction C ontract Change Orders approved by the City. The amount of the initial contract award in accordance with the Contractor’s Bid Proposal is two million, three hundred and forty -two thousand and one hundred and thirty -nine dollars ($2,342,139.00).

Contractor agrees to receive and accept the prices set forth herein, as full compensation for furnishing all materials, performing all work, and fulfi lling all obligations hereunder.

Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the Work during its progress or prior to its acceptance including those for well and faithfully completing the Work and the whole thereof in the manner and time specified in the Contract Documents; a nd , also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of th e Work, suspension of discontinuance of the Work, and all other unknowns or risks of any description connected with the Work.

ARTICLE 4 -- THE CONTRACT DOCUMENTS

The Contract Documents consist of the Notice Invitin g Bids, Instructions to Bi dders, the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations, the accepted Bid and Bid Schedule(s), List of Subcontractors, Local Business Preference Program – Good Faith Efforts, Non- Discrimination Certification, Non- Collusion Declarati on, Bi dder's General Information, Bi d Security or Bid B ond, this Agreement, Worke r's C ompensation Certif icate, Perfor m an ce Bond, Pay ment B ond, Standard S pecifications, S pecial Provisi ons, th e Drawings, Addenda numbers 1 t o 2, inclusive, and all Construction Contract Change Orders and Work Change Directives which may be delivered or issued after the Effective Date of the Agreement and are not attached hereto.

ARTICLE 5 -- MUTUAL OBLIGATIONS

For and in consideration of the payments and agreements to be made and performed by the City, the Contractor agrees to furnish all materials and perform all work required for the above stated project, and to fulfill all other obligations as set forth in the aforesaid Contract Documents.

City hereby agrees to employ, and does hereby employ, Contractor to provide the materials, complete the Work, and fulfill the obligations according to the terms and conditions herein contained and referred to, for the Contract Price herein identified, and hereby contracts to pay the same at the time, in the manner, and upon the conditions set forth in the Contract Item 1S - 11
Revised 2.9.22 Page 3 of 6

Documents.

ARTICLE 6 -- PAYMENT PROCEDURES

The C ontractor shall submit A pplications fo r Payment in a ccordance with the Standard Specifications as amended by the S pecial Provisions. A pplications for Pay ment will be processed by the City Engineer as provided in the Contract Documents.

ARTICLE 7 -- NOTICES

All notices shall be in writing and either served by personal delivery or mailed to the other party. Written notice to the Contractor shall be addressed to Contractor’s principal place of business unless Contractor designates another address in writing for service of notice. Notice to the City shall be addressed to the City as designated in the Notice Inviting Bids unless the City designates another address in writing for service of notice. Notice shall be effective upon receipt or five (5) calendar days after being sent by first class mail, whichever is earlier. Notice given by facsimile shall not be effective unless acknowledged in writing by the receiving party.

ARTICLE 8 -- INDEMNIFICATION

Contractor shall provide indemnification and defense as set forth in Se ction 7-15 “Indemnification,” of the S pecial Provisions.

ARTICLE 9 -- PREVAILING WAGES

Contractor ag rees to fully comply w ith a ll applicable f ederal and state labor laws including, w ithout lim itation California Labor Code Section 1720, et seq ., and 1770, et seq ., as we ll as Califo rnia Code of Regulations, T itle 8, Section 16000, et seq. ("Prevailing Wage Laws"). Contractor shall bear all risks of payment or non-payment of prevailing wages under California law, and Contractor hereby agrees to defend, indemnify, and hold the City, its officials, officers, employees, ag ents and volunteers, f ree and harmless from any claim or li ability arising out of any failure or alleged failure to c omply with the Prevailing Wage Laws.

C
ontractor specifically acknowledges and agrees to be bound by the Wage Rates and Labor Code requirements specified in the Contract Documents, including the requirement to furnish electronic certified payroll records directly to the Labor Commissioner (via the Division of Labor Standards Enforcement), and shall pay the general prevailing rate of per diem wages as determined by the Director of the Department of Industrial Relations of the State of California.

ARTICLE 10 -- CONFLICT OF INTEREST

Contractor acknowledges that no officer or employee of the City has or shall have any direct or indirect financial interest in this Agreement nor shall Contractor enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one (1) year thereafter. Contractor warrants that Contractor has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.

Item 1S - 12
Revised 2.9.22 Page 4 of 6

ARTICLE 11--NON-DISCRIMINATION

In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non- discrimination in city contracting.

ARTICLE 12 -- MISCELLANEOUS

Terms used in this Agr eement which are defined in the Standard Specifications and the Special Provisions will have the meanings indicated in said Standard Specifications and the Special Provisions. No assignment by a party hereto of any rights under or interests in the Contract Documents will be binding on another party hereto without the written consent of the party s ought to be bound; and s pecifically, but wit hout limitation, monies t hat may become due and monies that are due may not be assigned without such consent (except to the extent that the effect of this re striction may be limited by law), an d unless specifically
stated to the c ontrary in any written consent to an assignment, no assignment w ill release or discharge the a ssignor from any duty or res ponsibility under the Contract Documents.

T
he City and t he Contractor each binds itself, its partners, successors, assigns, and legal representatives, to th e other party hereto, its pa rtners, s uccessors, assigns, and l egal representatives, in r espect of all covenants, agreements, and obligations contained in t he Contract Documents.

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

ARTICLE 13 – PROJECT LABOR AGREEMENT

13.1 Generally

The Work is subject to the City’s Community Workforce Agreement dated August 31, 2021 (“CWA” or “Project Labor Agreement” or “PLA”), a copy of which is on file with the City, available upon request, and incorporated herein by reference as if fully set forth herein.

Item 1S - 13
Revised 2.9.22 Page 5 of 6

Contractor and all subcontractors of Contractor of any tier shall at all times comply with the requirements of the PLA in the prosecution of the Work.

Contractor has executed or agrees to execute and be bound by the terms of the PLA either directly or through the Letter of Assent (a form of which is attached to the PLA as "Attachment A" and referred to herein as the “LOA”), and Contractor shall furnish evidence of compliance with the same to City prior to the commencement of any Work. Contract or further agrees to require, or has already required, each of its subcontractors, of whatever tier, to agree in writing in the form of a LOA to be bound by each and every provision of the PLA prior to the commencement of Work or at the time of such subcontract, whichever occurs first.

13.2 Subcontractors

Contractor shall include, and shall require all of Contractor’s subcontractors of any tier to include, contractual provisions in all contracts they enter into for the performance of the Work, requiring each subcontractor, of every tier, who furnishes any labor for the performance of Work, to comply with the provisions of the PLA at no additional cost.

13.3 Condition of Payment

Compliance by Contractor and all of Contractor’s subcontractors of any tier w ith the requirements of the PLA shall be a condition of Contractor’s right to payment under this Agreement.

13.4 Reformation

Any requirement currently set forth in, or hereafter developed, adopted or implemented pursuant to the terms of the PLA, that is applicable to the Project, that is not set forth herein or that is by mistake incorrectly stated, shall be deemed to be inserted in this Agreement and shall be read and enforced as though it were included herein; and, if through mistake or otherwise any such requirement is not inserted or if inserted and requires correction, then upon request of either party this Agreement shall forthwith be amended to make such insertion or correction.

13.5 Conflicts

In the event of a conflict between the PLA and any other provisions of the Contract Documents, the PLA shall control.

13.6 Costs of Compliance

Contractor represents and warrants that it has included in its bid all costs of compliance with the requirements of this Section 13.

13.7 Not a Limitation

The requirements of this Section 13 are in addition to, and not a limitation upon, the other applicable provisions of the Contract Documents.

SIGNATURES ON NEXT PAGE
Item 1S - 14
Revised 2.9.22 Page 6 of 6

SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND FERREIRA CONSTUCTION COMPANY, INC.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

CONTRACTOR:

By: _____________________________________ By: _________________________________________ Signature Signature
(2nd signature required for Corporations)

Date: Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No.

APPROVED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ Jeffrey S. Ballinger, Monique Lomeli
,
City Attorney Interim City Clerk

APPROVED:

By: _______________________________ Date:

City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

Item 1S - 15

CITY COUNCIL STAFF REPORT
06/16/2022   1. T.

City Clerk -

SUBJECT
INITIATION OF ANNEXATION NO. 24 TO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SAFETY SERVICES)
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES FOR CITY OF PALM SPRINGS COMMUNITY FACILITIES DISTRICT NO. 2005-1, (PUBLIC SAFETY SERVICES), ANNEXATION NO. 24, TRACT MAP NO. 38049.”
Attachments
Item 1T

CITY COUNCIL STAFF REPORT

DATE: June 16, 2022 CONSENT CALENDAR

SUBJECT: INITIATION OF ANNEXATION NO. 24 TO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SAFETY SERVICES)

FROM: Justin Clifton, City Manager

BY: Engineering Division

SUMMARY:

The City Council previously established Community Facilities District 2005-1 (Public Safety Services) (CFD 2005-1) in October 2005, to levy a special tax on properties identified as “fee status” (non- Indian Allottee Leased or non -Tribal Trust properties) located within the City, to provide a financing mechanism to sustain the delivery of public safety services to new residential developments located on those properties. This action declares the City Council’s intention to annex additional property identified as Annexation No. 24 (for Tract Map No. 38049); the action also schedules a Public Hearing for July 28, 2022, to officially annex the additional property into CFD 2005-1.

RECOMMENDATION:

Adopt Resolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO ANNEX

TERRITORY INTO A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE

LEVY OF SPECIAL TAXES FOR CITY OF PALM SPRINGS COMMUNITY FACILITIES DISTRICT NO. 2005-1, (PUBLIC SAFETY SERVICES), ANNEXATION NO. 24 , TRACT MAP NO. 38049.”

STAFF ANALYSIS:

The City Council created C ommunity Facilities District 2005-1 (Public Safety Services) (CFD 2005-1) to allow the City to levy a special tax on certain properties identified as “fee status” (non-Indian Allottee Leased or Tribal Trust properties) located within the City, to provide a financing mechanism to sustain the delivery of public safety services to new residential developments located on those properties . This type of financing program, which is authorized under the Mello- Roos Community Facilities Act of 1982, envisioned the participation of all future new residential development projects on “fee status” lands, either by formation of new districts or as an annexation into CFD 2005-1.

Item 1T - 1
City Council Staff Report
June 16, 2022 -- Page 2
Initiation of Annexation No. 24 TM 38049 to CFD 2005-1

As new residential developments on “fee status” lands have been approved by the City, they are conditionally approved with a requirement to annex into CFD 2005-1. CFD 2005- 1 was specifically established separately from the City’s other district, Community Facilities District 2007-1 (Public Safety Services) (CFD 2007-1), for developments located on Indian Allottee Leased or Tribal Trust lands that cannot be annexed into the existing CFD 2007-1 due to their unique ownership status.

At this time, one residential development approved on “fee status” land is recommended for annexation into CFD 2005-1:

• Annexation No. 24 – Tract Map No. 38049, a residential development consisting of 8 single-family residences; the approved subdivision is located at the northeast corner of Alejo Road and Juanita Drive.

In order to commence the annexation process, the City Council is required to adopt a Resolution of Intention. The R esolution set s forth terms and conditions for annexing property into CFD 2005-1 and includes the rate and method of apportionment of the special tax to be levied. The Resolution also schedules a Public Hearing on the proposed annexation, which by statute must be held between 30-60 days following the adoption of the Resolution. In accordance with this requirement, Staff recommends that the Public Hearing be scheduled for July 28, 2022. Pursuant to the Mello-Roos Community Facilities Act of 1982, there are less than 12 registered voters on the property to be annexed into CFD 200 5-1; therefore, the special election will be a landowner vote within the annexation.

Prior to the public hearing, the owner of the property proposed to be annexed will return a petition with waivers to the City, waiving certain timing and noticing requirements related to Election Code, which will enable the City to expedite the annexation process by conducting the special ele ction immediately after the July 28, 2022, Public Hearing.

Included with the Resolution of Intention, the City Council also establishes the boundaries of the territory to be annexed into CFD 2005-1.

The special tax currently being assessed on properties within CFD 2005-1 is based upon a Fiscal Impact Analysis that was prepared by MuniFinancial. Based on this analysis, the Fiscal Year 2022/23 special tax for a single-family residence is $500 per year ( the maximum). The special tax is collected as part of the Riverside County annual property tax bill.

ENVIRONMENTAL ASSESSMENT:

The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to authorize annexation of certain properties into Item 1T - 2
City Council Staff Report
June 16, 2022 -- Page 3
Initiation of Annexation No. 24 TM 38049 to CFD 2005-1

CFD 2005-1, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

N/A.

FISCAL IMPACT:

Following annexation of the residential development into CFD 2005-1, after construction of the units (issuance of building permits), the special tax to be levied within the development will ge nerate an additional $4,000 annually, based on the Fiscal Year 2022/23 rates, to be used specifically for public safety services.

REVIEWED BY:

City Engineer: Joel Montalvo
Deputy City Manager: Flinn Fagg
City Manager: Justin Clifton

ATTACHMENTS:

A. Resolution
Item 1T - 3
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, DECLARING ITS

INTENTION TO ANNEX TERRITORY INTO A COMMUNITY

FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF

SPECIAL TAXES FOR CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2005-1, (PUBLIC
SAFETY SERVICES), ANNEXATION NO. 24, TRACT MAP
NO. 38049.

WHEREAS, under the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”), the City Council of the City of Palm Springs (the “City”) previously conducted proceedings to establish the City of Palm Springs Community Facilities District No. 2005-1 (Public Safety Services) (the “District”); and
WHEREAS, under the Act, this City Council is the legislative body for the proposed annexation of territory to the District and is empowered with the authority to annex territory to the District and levy special taxes within the annexation territory; and WHEREAS, this City Council now desires to commence proceedings to consider the annexation of territory to the District.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY RESOLVES, DETERMINES AND APPROVES AS FOLLOWS:

SECTION 1. The City Council proposes to begin the proceedings necessary to annex territory to the District pursuant to the Act.

SECTION 2. The name of the existing District is City of Palm Springs, Community Facilities District No. 2005-1 (Public Safety Services).

SECTION 3. A general description of the territory included in the original District is shown on the amended boundary map recorded in the office of the County Recorder for the County of Riverside on November 1, 2005, in Book 64 at Pages 71-77 of Maps of Assessments and Community Facilities Districts, to which map reference is hereby made.

SECTION 4. The territory now proposed to be annexed to the District is shown on Annexation Map No. 23 of the District on file with the City Clerk, a copy of which is attached hereto as Exhibit A, which Exhibit is, by this reference, incorporated herein. The boundaries of which territory are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, said Annexation Map No. 24 of the District in the office of the County Recorder of the County of Riverside within fifteen days of the date of Item 1T - 4
Resolution No. ______

adoption of this Resolution. The Tract Map for the territory proposed to be annexed, is attached in Exhibit B.

SECTION 5. The types of services to be funded by the District and pursuant to the Act consist of those services (the “Services”) described in Resolution No. 21402 entitled “A Resolution of the City Council of the City of Palm Springs, California, Declaring its Intention to Establish Community Facilities District No. 2005-1 (Public Safety Services) and to Authorize the Levy of Special Tax Therein to Finance Certain Services” adopted by the City Council on September 7, 2005, (the “Resolution of Intention”), which Resolution of Intention is, by this reference, incorporated herein. It is presently intended that the Services will relate to the existing territory in the District and the territory proposed to be annexed to the District.

SECTION 6. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the District (including the property being annexed thereto), will be levied annually within the District and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as this City Council shall determine, including direct billing of the affected property owners. The rate and method of apportionment of the special tax among the parcels of real property within the District, as now in existence and following the annexation proposed herein, in sufficient detail to allow each landowner within the territory proposed to be annexed to the District to estimate the maximum amount such owner will have to pay, is attached in Exhibit C.

SECTION 7. The special tax proposed to be levied for Services to be supplied within the proposed territory to be annexed will be equal to the special taxes levied to pay for the same Services in the District, except that a higher or lower special tax may be levied within the proposed territory to be annexed to the extent that the actual cost of providing the Services in that territory is higher or lower than the cost of providing those Services in the District. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher than the maximum special tax authorized to be levied pursuant to the rate and method of apportionment of the special tax.

SECTION 8. Notice is given that on Thursday, July 28, 2022, at 6:00 p.m. or as soon thereafter as the matter may be heard, in the regular meeting place of this City Council in the Council Chambers, at 3200 East Tahquitz Canyon Way, Palm Springs, California, 92262, and the same are hereby appointed and fixed as the time and place when and where this City Council, as legislative body for the District, will conduct a public hearing on the annexation of territory to the District and consider and finally determine whether the public interest, convenience, and necessity require said annexation of territory to the District and the levy of said special tax therein.

Item 1T - 5
Resolution No. ______

SECTION 9. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. The notice shall be substantially in the form of Exhibit D hereto.

SECTION 10. This Resolution shall take effect upon its adoption.

ADOPTED THIS 16th DAY OF JUNE, 2022.

JUSTIN CLIFTON

CITY MANAGER
ATTEST:
______

MONIQUE LOMELI, CMC

INTERIM CITY CLERK

Item 1T - 6
Resolution No. ______

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, Monique Lomeli, Interim City Clerk of the City of Palm Springs, hereby certify that Resolution No. _____ is a full, true and correct copy as was duly adopted at a regular meeting of the City Council of the City of Palm Springs on June 16, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this 16th day of June, 2022.

____

MONIQUE LOMELI, CMC

INTERIM CITY CLERK

Item 1T - 7

EXHIBIT A

CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(PUBLIC SAFETY SERVICES)
ANNEXATION NO. 24
TRACT MAP NO. 38049

PROPOSED BOUNDARIES OF THE ANNEXATION TERRITORY

Item 1T - 8
ANNEXATION MAP NO. 24 OF
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(PUBLIC SAFETY SERVICES)
F I L E D I N T H E O F F I C E O F T H E C I T Y C L E R K O F T H E C I T Y O F P A L M S P R I N G S T H I S _ _ _ D A Y O F _ _ _ _ _ _ _ _ _ _ 2 0 _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ C I T Y C L E R K
C I T Y O F P A L M S P R I N G S R I V E R S I D E C O U N T Y , C A L I F O R N I A I H E R E B Y C E R T I F Y T H A T T H E WI T H I N M A P S H O WI N G P R O P O S E D B O U N D A R I E S O F A N N E X A T I O N N O . 2 4 T O C O M MU N I T Y F A C I L I T I E S D I S T R I C T N O . 2 0 0 5 - 1 ( P U B L I C S A F E T Y S E R V I C E S ) , C I T Y O F P A L M S P R I N G S , C O U N T Y O F R I V E R S I D E , S T A T E O F C A L I F O R N I A , WA S A P P R O V E D B Y T H E C I T Y C O U N C I L O F T H E C I T Y O F P A L M S P R I N G S A T A R E G U L A R M E E T I N G T H E R E O F , H E L D O N T H E _ _ _ _ _ _ D A Y O F _ _ _ _ _ _ _ _ _ _ _ _ 2 0 _ _ , B Y I T S R E S O L U T I O N N O . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ .
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ C I T Y C L E R K
C I T Y O F P A L M S P R I N G S R I V E R S I D E C O U N T Y , C A L I F O R N I A F I L E D T H I S _ _ _ _ D A Y O F _ _ _ _ _ _ _ _ _ _ _ _ _ 2 0 _ _ , A T T H E H O U R O F _ _ _ _ _ _ O  C L O C K _ _ . M. I N T H E B O O K _ _ _ _ _ _ O F M A P S O F A S S E S S M E N T A N D C O M M U N I T Y F A C I L I T I E S D I S T R I C T S A T P A G E ( S ) _ _ _ _ _ _ _ , I N T H E O F F I C E O F T H E C O U N T Y R E C O R D E R , C O U N T Y O F R I V E R S I D E , S T A T E O F C A L I F O R N I A . F E E : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I N S T R U M E N T N O : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ B Y D E P U T Y
C O U N T Y R E C O R D E R
C O U N T Y O F R I V E R S I D E , C A L I F O R N I A F O R P A R T I C U L A R S O F T H E L I N E S A N D D I ME N S I O N S O F A S S E S O R P A R C E L S , R E F E R E N C E I S M A D E T O T H W M A P S O F T H E A S S E S S O R , C O U N T Y O F R I V E R S I D E , S T A T E O F C A L I F O R N I A . R E F E R E N C E I S MA D E T O T H A T A M E N D E D B O U N D A R Y M A P O F C O M M U N I T Y F A C I L I T I E S D I S T R I C T N O . 2 0 0 5 - 1 ( P U B L I C S A F E T Y S E R V I C E S ) O F T H E C I T Y O F P A L M S P R I N G S R E C O R D E D WI T H T H E R I V E R S I D E C O U N T Y R E C O R D E R S O F F I C E O N N O V E M B E R 2 , 2 0 0 5 , I N B O O K 6 4 O F M A P S O F A S S E S S M E N T A N D C O MM U N I T Y F A C I L I T I E S D I S T R I C T S , P A G E S 7 1 - 7 7 , A S I N S T R U M E N T N O . 2 0 0 5 - 0 9 0 4 1 3 4 .

CITY OF PALM SPRINGS

COUNTY OF RIVERSIDE

STATE OF CALIFORNIA

ORCHID TREE LN

FARRELL DR

ALEJO RD

JUANITA DR

QUINCY WAY

ALEJO RD

ORCHID TREE LN

MONTEREY RD FARRELL DR

JUANITA DR

CIVIC DR

COMMERCIAL RD
Sheet 1 of 1
Source: Riverside County GIS
Geographic Coordinate Reference: GCS North American 1983 Projection: NAD 1983 StatePlane California VI FIPS 0406 Feet

CIVIC DR

JUANITA DRFARRELL DRMONTEREY RD

BURTON WAY

ORCHID TREE LN

VERNA CT

COMMERCIAL RD

QUINCY WAY

SUNSET WAY FARRELL DR JUANITA DR

TAMARISK RD

MONTEREY RD

ALEJO RD

ORCHID TREE LN

QUINCY WAY

ALEJO RD

BURTON WAY
A n n e xa t ion B oun d a r y
A n n e xa t ion P a r c e ls
P a r c e ls A n n e xa t i on B oun d a r y 0 1 2 5 2 5 06 2 . 5 F e e t
O
507-380-019
507-380-020

V I C I N I T Y M A PV I C I N I T Y M A P
Item 1T - 9
D
D

I I I I I I I I I
ID_
'-...1...______ Ll_______J____,__~Q~N I es·

EXHIBIT B

CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(PUBLIC SAFETY SERVICES)
ANNEXATION NO. 24
TRACT MAP NO. 38049

TRACT MAP OF THE PROPOSED ANNEXATION TERRITORY

Item 1T - 10
Item 1T - 11
LOT 53
-
LO T 54 I
}
LOT 55
J
-• -• _/ / - ' , - ' -~• ··-
IN THE CITY OF PALM SPRINGS. COUNTY OF RIVERSIDE, STATE OF CALIFORNIA TENTATIVE TRACT MAP NO. 38049
PARCEL Z & 3 OF PARCEL MAP 13336 , P.M.B . 64/39
OF SECTION 12, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SB.M.

SANBORN ARCHITECTURE GROUP, Inc, NOVEMBER ZOZO
PAI/GEL 2

PARCEL I

JUANITA DRIVE

NO SCALE
~~~-,-.,_~- ~,

ALEJO ROAD

NO SCALE

TENTATIVE MAP

PROJECT DATA
EXHIBIT DA 'Tf:: OCTOBER 26, 2020
PRO..ECT DATA·
AAIGl,£N11JR£S,L.L .. C.
2496 C. SANTA '/NU WA Y
PAUi SPRIN(;S, CA. 92264
SANBORN MCHITCCnJRE GROUP, INC
71-780 SAN JACINTO DR. SUITE: £-1
RANCHO Al/RAC£, CA. 92270
AU£NSAN8QRN ~ : 760)42J-06QO
ADDRESS: 870 £ RCSEARC1-/ DR. STE:. 12
PALM SPRINGS, CA. 92262
OA!'f CF 1(F(IQW'HY: FEBRUARY. 2020 PHQNC: (760 250-4465 L£CJol. D£SCR/P1/0N; PARCCL 2-", PM 1.J.J.M, PN8 64/39; Pl.Bl.JC IJTlLITY PI.RVEYORS
;~;,rGalENT: DESERT VALL£Y 0/SPOSAf.

ASSESSORS PARCB.. NO.:

SQ7 380-019 020
CORNER OF ALL.JO ROAD ,t COMUCRCJAL ROAD
PALM SPRINGS, CA. 92262
TH£ PROPERTY SHQMN H(R£1N CONTAINS, THE: £N1/R£ CONTIGUOUS OtwfRSHIP 110,207 S.F.
8 NUMBER LOTS AREA • 2.53 ACRES
MINIMUM LOT SIZE• 1 J25 S.F.

PROPOSED ZONIN(;: R-1-C
R...OODZOIE
"""'''""'"""" 1H£ PROPERTY IS SHOttN AS 8£/NG IN FLOOD ZONc Y ON F£MA M~ PMCL 06026SC 1559 G, REVISED .MNVAAY 19, 1982. 1H£ BAS15 OF BEARING IS THE: CCN1U?I..JNF OF ALEJO ROAD, PMB 14/64, RECORDS AS N 89G47'24"E
LEGEID
F££T f4::. INDICA1FS EAS£M£NT MAPP£D ~R 71n.E RcPORT
l'ji,,,,.\-1.!m .... ""'--"!r---·ii'f--""flf _,_ :;g ~i:ir: ~UMCNT AS NOmJ 1 O INCHES J -;~ E:~i ~CffLJN£
CONC. INOICA T£S CONCRCTC
~------------
I,[ IND/CAT£$ C£NTCRUNE

INDICATES ACRES
P.M.8. INDICATES PARCCL MAP BOOK
G.N. V. INOICA TCS GROUND NOT Yl5181..£
P/L INOICATF:S PROPCRTY UNE
BUILD. INDICA1ESBU/lOING
FD. INDICA1ES FOOND
J.P. INDICATES/RON PIPE
C.P.S. INDICATES CITY OF PALM SPRINGS
i :~:~::~~
(I- /NO/CA TES S'TRffT LIGHT
Cl,IU INDICAl[S CONCRE1f: MASONRY UNIT (8LOCKNIAU)
VICINITY MAP/LOCATION MAP ~
r~ ~ ~ \~ ~ 1
s~ ~~~~ - ~\-~
• 1
9-I_Ll_ ~~~\l' F,,~o,~~~ ~=~~0~$.= ~-~-~-~~~~
1 ILl_ \_ \ 2. THIS M'iP IS COMPILED FROM R£CORD INFORMA TIQN ONLY ANO IS NOT ro 8£ US£D AS A BOUNDARY SUR~
J. NO SEPTIC S[llf"AGC IS INTCNTCD FOR THIS SITE

4. S11E NOT SUB.ECT ro O\£RFl.O W, INUNDA110N, nooo HAZARDS ~ ~ . ~ It . ,'T ':~, ·r=--r= : .;-~-~ -----_:____--• It-· ~---•--•- ___ ~ - ,. ~ NBfl'"T24C 30Q'{f - ~ fN89.4l'.2 4'E 334.4(fll.MJ -•~ -----v• - •--• '-. 4:ALEJOROAO •--•--•~ •--•--• <IN89.41'24'E359.4/'R4.MJ> •··• ~ SANBORN ARCl<ITECTURE
l
~~ aJLI" h~~ GROUP, INC.
mm=·.~ D 5ANBORN llli.lff-/:rfoo••;-l ~~'!, STEVEN,:.~: "" -- ,------ \f.,_'\...-. ,..;,-,.1.J11 ll--lJOM ... ~~ =1JLJ .. l _; P.S~~AJDW'\ ~~ ~--;;::;_# lfANCHO~~
~ ~""'u"'ij"'in r I ""'fj'\'14"' /
e c.;op~~b.;r_;;~-~ I PLOT DATE w.a: 20-.125
.tff~}i"[; 'k'::~r~dl 11/30/2020 SCALE : r«r
TENTATll'E PARCEL MAP NO. 38049
for AJIG VENTURES. LL C.

Pl!llCB... 2 &l PM WJ6, PM& 64/J9
!ECTJaJ(l T. 4S,R.4E.SB.8M

EXHIBIT C

CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(PUBLIC SAFETY SERVICES)

RATE AND METHOD OF APPORTIONMENT

Item 1T - 12
A Special Tax of Community Facilities District No. 2005 -1 (Public Safety Services) of the City of Palm Springs (the “District”) shall be levied on all Assessor’s Parcels in the District and collected each Fiscal Year commencing in Fiscal Year 2006 -07 in an amount determined by the City through the application of the rate and method of apportionment of the Special Tax se t forth below. All of the real property in the District, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre of Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final subdivision map, other final map, othe r parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder.

The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. “Act” means the Mello -Roos Communit y Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California, as amended, which authorizes the establishment of the District to finance: a) police protection services, and b) fire protection a nd suppression services, and life safety services including but not limited to ambulance and paramedic services.
“Administrative Expenses” means the actual or estimated costs incurred by the City as administrator of the District to determine, levy and col lect the Special Taxes, including the proportionate amount of the salaries and benefits of City employees whose duties are directly related to administration of the District and the fees of consultants, legal counsel, the costs of collecting installments o f the Special Taxes upon the general tax rolls, preparation of required reports; and any other costs required to administer the District as determined by the City. “Annual Escalation Factor” means the greater of the increase in the annual percentage change of the All Urban Consumers Consumer Price Index (CPI) or the percent increase of salaries and benefits for public safety employees as stated in the Memorandum of Understanding for the fiscal year of the Special Tax. The annual CPI used shall be for the area of Los Angeles-Riverside-Orange County, CA as reflected in the then-current April update. The annual CPI used shall be as determined by the United States Department of Labor, Bureau of Labor Statistics, and may be obtained through the California Divi sion of Labor Statistics and

CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(PUBLIC SAFETY SERVICES)

RATE AND METHOD OF APPROTIONMENT
Item 1T - 13
Research (www.dir.ca.gov/dlsr). If the foregoing index is not available, the CFD Administrator shall select a reasonably comparable index.
“Assessor’s Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned assessor’s parcel number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by assessor’s parcel number.
“Base Year” means Fiscal Year ending June 30, 2007.
“City” means the City of Palm Springs.
“Council” means the City Council of the City of Palm Springs, acting as the legislative body of the District.
“County” means the County of Riverside, California.
“Developed Multi-Family Residence” means all Asses sor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, town homes, condominiums, and apartment units. “Developed Property” means all Taxable Property, exclusive of Property Owner Association Property, Non-Residential Property, or Public Property, for which a building permit was issued after January 1, 2006 and prior to May 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Developed Single-Family Residence” means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one sin gle-family residential dwelling unit.
“District Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“District” means Community Facilities District No. 2005 -1 (Public Safety Services) of the City of Palm Springs.
“Entitled Property” means an Assessor’s Parcel and/or Lot in the District, which has a Final Map recorded prior to January 1 st preceding the Fiscal Year in which the Special Tax is being levied, but for which no building permit has been issued prior to the May 1st preceding the Fiscal Year in which the Special Tax is being levied. The term “Entitled Property” shall apply only to Assessors’ Parcels and/or Lots, whi ch have been subdivided for the purpose of residential Item 1T - 14
development, excluding any Assessor’s Parcel that is designated as a remainder parcel determined by final documents and/or maps available to the District Administrator. “Final Map” means an Assessor’s Parcel Map, a final subdivision map, other parcel map, other final map, other condominium plan, or functionally equivalent map that has been recorded in the Office of the County Recorder.
“Fiscal Year” means the period starting July 1 and ending on the following June 30. “Land Use Class” means any of the classes listed in Table 1. “Lot” means property within a recorded Final Map identified by a lot number for which a building permit has been issued or may be issued.
“Maximum Special Tax” means the maximum Special Tax, determined in accordance with Section C below that can be levied in the District in any Fiscal Year on any Assessor’s Parcel. “Non-Residential Property” means all Assessors’ Parcels for which a building permit(s) has been issued for a non -residential used and does not contain any residential units as defined under Developed Single Family Residence or Developed Multi-Family Residence. “Property Owner Association Property” means any property within the boundaries of the District that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to a property owner association, including any master or sub-association. “Proportionately” means in a manner such that the ration of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels within each Land Use Class. “Public Property” means any property within the boundaries of the District that is, at the time of the District formation or at the time of an ann exation, expected to be used for rights -of-way, parks, schools or any other public purpose and is owned by or irrevocably offered for dedication to the federal government, the State, the County, the City or any other public agency. “Public Safety Service Costs” means the estimated and reasonable costs of providing police services and fire protection and suppression services and life safety services, including but not limited to (i) the costs of contracting services, (ii) equipment, vehicles, ambulances, an d paramedics, fire apparatus, supplies, (iii) the salaries and benefits of City staff that directly provide police services and fire protection and suppression services and life safety services, respectively, and (iv) City overhead costs associated with pr oviding such services within the District. On each July 1 following the Base Year the increases attributed to salaries and benefits shall be calculated and limited to the increase based on the Annual Escalation Factor.

The Special Tax provides only partial funding for police, fire and life safety services.

Item 1T - 15
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement, and shall include Special Taxes levied or to be levied under Sections C and D, below. “Special Tax Requirement” means that amount required in any Fiscal Year for the District to:
(i) pay for Public Safety Service Costs; (ii) pay reasonable Administrative Expenses; (iii) pay any amounts required to estab lish or replenish any reserve funds; and (iv) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less any surplus of funds available from the previous Fiscal Year’s Special Tax levy.
“State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of the District and any future annexation to the District that are not exempt from the Special Tax pursuant to law or as defined herein.
“Tax-Exempt Property” means an Assessor’s Parcel not subject to the Special Tax. Tax - Exempt Property includes: (i) Public Property, (ii) Property Owner Association Property, (iii) Non-Residential Property, and (iv) property designated by the City or District Administrator as Tax-Exempt Property.
“Undeveloped Property” means, for each Fiscal year, all Assessor’s Parcels of Taxable Property no t classified as Developed Property or Entitle d Property, including an Assessor’s Parcel that is designated as a remainder parcel and is not identified as potential Public Property by any final documents and/or maps available to the District Administrator. “Unit” means any separate residential dwelling unit in which a person or persons may live, which compris es an independent facility capable of conveyance separate from adjacent residential dwelling units and is not considered to be for commercial or industrial use.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year using the definitions above, all Taxable Pro perty within the District shall be classified as Developed Property, Entitled Property, or Undeveloped Property. Developed Property shall be further classified as Developed Single -Family Residence or Developed Multi - Family Residence. Commencing with the Base Year and for each subsequent Fiscal Year, all Taxable Property shall be subject to Special Taxes pursuant to Sections C and D below.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
TABLE 1
Maximum Special Tax for Developed Property
Community Facilities District No. 2005-1
(Public Safety Services)
Item 1T - 16
Land Use
Class Description
Maximum
Special Tax
Per Unit
1 Developed Single-Family
Residence $350 per Unit
2 Developed Multi-Family
Residence $295 per Unit
On each July 1 following the Base Year (i.e., July 1, 2007), the Maximum Special Tax Rates in Table 1 shall be increased in accordance with the Annual Escalation Factor. Once the Maximum Special Tax per Unit is equal to $500 per Unit, no further Annual Escalation Factor shall be applied and the Maximum S pecial Tax per Unit shall not exceed $500.

2. Entitled Property
Table 2
Maximum Special Tax for Entitled Property
Community Facilities District No. 2005-1
(Public Safety Services)
Land Use
Class Description
Maximum
Special Tax Per
Lot
3 Entitled Property $100 per Lot
No Annual Escalation Factor shall be applied to the Maximum Special Tax per Lot for Entitled Property.

3. Undeveloped Property
Undeveloped Property will be assigned a Maximum Special Tax Rate of $500 per acre or portion thereof, with a minimum rate of $100 for Undeveloped Property less than or equal to one-forth (1/4) of an Acre as described in table 3.

Table 3
Maximum Special Tax for Undeveloped Property
Community Facilities District No. 2005-1
(Public Safety Services)
Item 1T - 17
Land Use
Class Description
Maximum
Special Tax Per
Parcel/Acre
4 Undeveloped Property less
than or equal to ¼ Acre
$100 per
Assessor’s
Parcel
5 Undeveloped Property > ¼
Acre $500 per Acre
No Annual Escalation Factor shall be applied to the Maximum Special Tax per Parcel/Acre for Undeveloped Property.

4. Tax-Exempt Property
No Special Tax shall be levied on Tax-Exempt Property.

5. Multiple Land Use Classes
In some instances an Assessor ’s Parcel may contain more than one Land Use Class. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax levies that can be imposed on all Land Use Classes located on that Assessor’s Parcel.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2006 -07, and for each subsequent Fiscal Year, the District Administrator shall calculate the Special Tax Requirement based on the definitions in Section A and levy the Special Tax as follows until the amount of the Special Tax levied equals the Special Tax Requirement. First, the Special Tax shall be levied each Fiscal Year on each Assessor’s Parcel of Developed Property Proportionately between Developed Single -Family Residence and Developed Multi - Family Residence up to 100% of the applicable Maximum Special Tax. Second, if the Special Tax Requirement has not been satisfied by the first step, then the Special Tax shall be levied each Fiscal Year on each Assessor’s Parcel of Entitled Property up to 100% of the applicable Maximum Special Tax for Entitled Property. Lastly, if the first two steps have not satisfied the Special Tax Requirement, then the Special Tax shall be levied each Fiscal Year on each Assessor’s Parcel of Undeveloped Property up to 100% of the applicable Maximum Special Tax for Undeveloped Property.

E. APPEALS
Item 1T - 18
Any tax payer that believes that the amount of the Special Tax assigned to an Assessor’s Parcel is in error may file a written notice with the District Administrator appealing the levy of the Special Tax. This notice is required to be filed with the Distr ict Administrator during the Fiscal Year the error is believed to have occurred. The District Administrator or designee will then promptly review the appeal and, if necessary, meet with the taxpayer. If the District Administrator verifies that the tax should be changed the Special Tax Levy shall be corrected and, if applicable in any case, a refund shall be granted.

F. EXEMPTIONS

1. Residential Property
Residential Properties which annually meet one or more of the following standards shall be exempt from payment of the Special Tax:
a. A Residential Property consisting of one or two person(s) earning $15,300 or less gross income per year, upon complying with procedures to establish such exemption, or
b. A Residential Property consisting of three persons earning $17,900 or less gross income per year, upon complying with procedures to establish such exemption, or
c. A Residential Property which qualifies for either the Low Income Rate Assistance (LIRA) exemption for electrical or gas services or the Lifeline exemption for telephone services.

The City is authorized and directed to promulgate administrative rules and procedures for verification of eligibility for the exemptions referred to in section F.

G. MANNER OF COLLECTION
Special Tax as lev ied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the District Administrator may directly bill the Special Tax, many collect Special Taxes at a differen t time or in a different manner if necessary to meet the financial obligations of the District or as otherwise determined appropriate by the District Administrator.

H. TERM OF SPECIAL TAX
Every Five years after the establishment of the District, the City Co uncil may reexamine, if deemed necessary by City Council, the necessity of the continuance of the Special Tax through the preparation of a Fiscal Impact Analysis, otherwise the Special Tax shall be levied in perpetuity.

Item 1T - 19

EXHIBIT D

CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(PUBLIC SAFETY SERVICES)
ANNEXATION NO. 24
TRACT MAP NO. 38049

NOTICE OF PUBLIC HEARING
Notice is hereby given that the City Council of the City of Palm Springs will conduct a public hearing on Thursday, July 28 th, 2022, at 6:00 p.m. or as soon thereafter as the matter may be heard, in the City Council Chambers located at 3200 East Tahquitz Canyon Way, Palm Springs, California, 92262, to consider the following:

CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(PUBLIC SAFETY SERVICES)
ANNEXATION NO. 24
TRACT MAP NO. 38049
On June 16 th, 2022, the City Council, as the legislative body for the District, adopted a resolution entitled “A Resolution of the City Council of the City of Palm Springs, California, Declaring its Intention to Annex Territory into a Community Facilities District and to Authorize the Levy of Special Taxes for City of Palm Springs Community Facilities District No. 2005-1 (Public Safety Services), Annexation No. 24, Tract Map No. 38049” (the “Resolution of Intention”). Pursuant to the Resolution of Intention, the City Council determined that the public convenience and necessity require that certain territory, as more particularly described in the Resolution of Intention, be annexed to the existing District, all as provided in the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code) (the “Act”). Reference is hereby made to the Resolution of Intention, on file with the City Clerk of the City for further particulars. The following is a summary of the provisions of the Resolution of Intention.

In the Resolution of Intention, the City Council declared its intention to annex territory into Community Facilities District No. 2005-1 (Public Safety Services) (the “District”). The area proposed to be annexed to the District is as shown on Annexation Map No. 24, on file with the City Clerk, and identified in Exhibit A of the Resolution of Intention. The District shall fund police services, fire protection and suppression services, and life safety services. It is presently intended that the services will be provided, without preference or priority, to the existing territory in the District and the territory proposed to be annexed to the District. The Resolution of Intention provides that the special taxes heretofore caused to be levied in the District shall be levied in the territory proposed to be annexed, subject to public hearing and owner consent proceedings as specified in the Act.

At the public hearing the testimony of all interested persons for and against the Item 1T - 20

annexation of said territory to the District or the levying of special taxes within the territory proposed to be annexed will be heard. Any person interested may file a protest in writing with the City Clerk.
/s/ Monique Lomeli
Interim City Clerk
City of Palm Springs
Item 1T - 21

CITY COUNCIL STAFF REPORT
06/16/2022   1. U.

City Clerk -

SUBJECT

TERMINATION OF CONTRACT FOR DEFAULT BY FAST-TRACK

CONSTRUCTION CORPORATION FOR THE DOWNTOWN PARK, CITY PROJECT NO. 15-07
RECOMMENDATION:

Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, FINDING THAT FAST-TRACK CONSTRUCTION CORPORATION, A CALIFORNIA CORPORATION, IS IN DEFAULT OF THE CONSTRUCTION CONTRACT A8395 FOR THE
DOWNTOWN PARK, CITY PROJECT NO. 15-07; AUTHORIZING ISSUANCE OF A NOTICE OF TERMINATION OF FAST-TRACK CONSTRUCTION’S RIGHT TO PERFORM UNDER THE CONTRACT

1. Approve Amendment No. 3 to Professional Services Agreement A7071 in an amount not to exceed $30,000 with Rios Clementi Hale Studios, a California corporation, for extended construction phase services.

2. Authorize the City Manager to execute all necessary documents.3.

Attachments
Item 1U

CITY COUNCIL STAFF REPORT

DATE: June 16, 2022 CONSENT CALENDAR

SUBJECT: TERMINATION OF CONTRACT FOR DEFAULT BY FAST -TRACK

CONSTRUCTION CORPORATION FOR THE DOWNTOWN PARK, CITY
PROJECT NO. 15-07

FROM: Justin Clifton, City Manager

BY: Engineering Division

SUMMARY:

On October 2, 2019, the City Council awarded a construction contract (“Contract”) to Fast-Track Construction Corporation (“FTC”) for the Downtown Park, City Project 15- 08 (the “Project”). The Project commenced on November 20, 2019, with an allowable contract time of 365 calendar days, extending to November 20, 2020. The City approved time extensions amounting to 106 calendar days and extended the completion date to March 3, 2021. The Project has suffered from delay s due to the COVID pandemic and delays caused by FTC relating to its failure to adequately administer the Project and manage the construction of the Project.

FTC ha s, among other things, abandoned the Project and the Project remains incomplete. This Resolution will allow the City Council to find FTC in default of the Contract, proceed with termination of FTC’s right to perform under the Contract by issuing a written notice of termination for default to FTC and its performance bond surety, and demand that Contractor’s performance bond surety complete the Project , in accordance with Section 6-7 of the Special Provisions of the Contract.

RECOMMENDATION:

1. Adopt Resolution No. ____, “ A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, FINDING THAT FAST-TRACK

CONSTRUCTION CORPORATION, A CALIFORNIA CORPORATION, IS IN DEFAULT OF THE CONSTRUCTION CONTRACT (AGREEMENT NO. 8395) FOR THE DOWNTON PARK, CITY PROJECT NO. 15 -07; AUTHORIZING

ISSUANCE OF A NOTICE OF TERMINATION OF F AST-TRACK
CONSTRUCTION’S RIGHT TO PERFORM UNDER THE CONTRACT.

Item 1U - 1
City Council Staff Report
June 16, 2022 -- Page 2
Termination of Contract - City Project No. 15-07

2. Approve Amendment No. 3 to Professional Services Agreement No. 7071 in an amount not to exceed $30,000 with Rios Clementi Hale Studios, a California corporation, for extended construction phase services.

3. Authorize the City Manager to execute all necessary documents.

BUSINESS PRINCIPAL DISCLOSURE:

The Public Integrity Disclosure Form for Fast -Track Construction Corporation and Rios Clementi Hale Studios are included as Attachment A.

BACKGROUND:

On October 2, 2019, the City Council awarded the Contract to Fast-Track Construction Corporation (FTC) in the amount of $7,600,000 for the Project. On November 20, 2020, FTC was issued a notice to proceed with an allowable contract time of 365 calendar days.

During the COVID pandemic, the Project was temporarily paused so that Staff could evaluate cost savings and bring forward construction options to the City Council for completion of the Project. Staff brought forward four ( 4) options ranging from stopping construction to completing the Project as originally designed. On August 6, 2020, the City Council took action to complete the Project as originally designed.

As a result of the pause caused by the pandemic and other issues related to the structural failure of the parking garage, Staff, working with the construction management team, approved time extensions for the Project amounting to an additional 106 calendar days. This extended the completion of the Project until March 3, 2021. FTC failed to complete the project by March 3, 2021. The City notified FTC of their failure to complete the Project and on March 4, 2021 the City began to assess FTC liquidated damages in the amount of $5,400 per calendar day. Liquidated damages continue to accrue.

STAFF ANALYSIS:

Staff worked diligently and patiently with FTC to resolve its deficiencies on the Project , including its inability to properly staff the Project. Staff repeatedly drew FTC’s attention to remaining work and requested meetings to discuss strategy, schedules, and commitments to complete the Project. FTC was unable to maintain a consistent workforce on the Project, including subcontractor not showing up or bringing limited crews. Staff demanded in multiple letters and meetings that FTC complete the Project and the City convened a meeting with FTC on February 25, 2022, to discuss FTC’s commitment to complete the Project, but ultimately FTC has failed to complete the project.

The following is a list of the unfinished punchlists:

Item 1U - 2
City Council Staff Report
June 16, 2022 -- Page 3
Termination of Contract - City Project No. 15-07

• Engineering - 10-19-2021
• Architecture - 10-13-2021
• Fluidity - 10-4-2021
• Irrigation - 10-11-2021
• Landscape - 10-13-2021
• Lighting - 10-19-2021
• MEP - 10-13-2021

In addition to not completing the above- referenced punchlists, FTC has failed to complete the repair of the defective water feature. The City believes correcting the defects will require significant work and expense, as the water feature’s mech anical equipment is located underground.

FTC has been unable to pay its debts and apparently is financially unable to complete the work as the Contract is encumbered by both liquidated damages and stop payment notices. As of May 12, 2022, the City is with holding $1,154,008 (125% of $923,207) for fifteen (15) stop payment notices.

Determination of Termination for Default

On April 18, 2022, the City issued a formal Notice to Cure Default letter (“Notice Letter”) to FTC and Great American Insurance Group (“Great American”), FTC’s performance bond surety (Attachment B). For the reasons explained in the Notice Letter, the City considered FTC in default for, among other things, abandoning the Project by failing to report to the Project site and failing to diligently prosecute the Project to completion. The City demanded that FTC cure the defaults within five (5) working days after receipt of the Notice Letter. FTC has failed to correct it s defaults in the allowed time. Pursuant to Section 6.7.3 of the Special Provisions, Staff is recommending to the City Council that FTC be found in default of the Contract and terminate FTC’s right to perform under the Contract, and to enforce the Project performance bond.

Upon the City Council making that finding, the City will terminate FTC’s right to perform under the Contract by issuing a written notice of termination for default to FTC and Great American. U pon Great American’s receipt of the City’s written n otice of termination for default and as required by Section 6-7.4 of the Special Provisions, Great American is obligated to:

…immediately assume all rights, obligations, and liabilities of the Contractor under the Contract. If the Surety fails to protect and maintain the Work s ite, the Agency may do so, and may recover all costs incurred. The Surety shall notify the Agency that it is assuming all rights, obligations and liabilities of the Contractor under the Contract and all money that is due, or would become due, to the Contractor shall be payable to the Surety as the Work progresses, subject to the terms of the Contract.

Item 1U - 3
City Council Staff Report
June 16, 2022 -- Page 4
Termination of Contract - City Project No. 15-07

Within 15 Working Days of receipt of the written notice of termination for default, the Surety shall submit to the Agency a written plan detailing the course of action it intends to take to remedy the default. The Agency will review the plan and notify the Surety if the plan is satisfactory. If the Surety fails to submit a satisfactory plan, or if the Sur ety fails to maintain progress according to the plan accepted by the Agency, the Agency may, upon 48 hours written notice, exclude the Surety from the premises, take possession of all material and equipment, and complete the Work in any way the Agency deems to be expedient. The cost of completing the Work by the Agency shall be charged against the Surety and may be deducted from any monies due, or which would become due, the Surety. If the amounts due under the Contract are insufficient for completion, the Surety shall pay to the Agency, within 30 Days after the Agency submits an invoice, all costs in excess of the remaining Contract Price.

Approval of Amendment No. 3 to Rios Clementi Hale Studios (RIOS)

FTC’s failure to complete the Project under the allowable contract time has required Staff to continue utilizing the services of the Project architect, Rios Clementi Hale Studios (“RIOS”), to provide construction phase architectural services. It is necessary to amend the agreement with RIOS to an amount not to exceed $30,000 to accommodate completion of the Project. Staff has prepared Amendment No. 3 to the agreement with RIOS, and is included as Attachment C.

Staff recommends approval of Amendment No. 3 with R IOS and has prepared a Resolution for the City Council’s adoption that will make the findings necessary to find FTC in default of the Contract and authorizing Staff to proceed with issuing a notice of termination of FTC’s right to perform under the Contract to FTC and Great American. A copy of the Resolution is included as Attachment D.

FISCAL IMPACT:

The Special Provisions incorporated into the Agreement identified certain liquidated damages for FTC’s failure to complete the Project within the allowable contract time.

Pursuant to the Agreement, liquidated damages are applied at the rate of $ 5,400 per calendar day. According to Staff’s calculations, liquidated damages have accrued in the amount of $2,354,400 as of May 14, 2022 (436 Calendar Days), which is owed by FTC due to its failure to complete the Project in the allowable contract time.

Liquidated damages are used to recover the City’s increased costs and damages caused by FTC’s failure to complete the Project, including legal fees and costs, and the additional fees for the City’s project architect.

Item 1U - 4
City Council Staff Report
June 16, 2022 -- Page 5
Termination of Contract - City Project No. 15-07

REVIEWED BY:

City Engineer: Joel Montalvo
Deputy City Manager: Flinn Fagg
City Manager: Justin Clifton

ATTACHMENTS:

A. Public Integrity Disclosure Forms
B. Notice to Cure Letter
C. Amendment 3 to RIOS
D. Resolution
Item 1U - 5

ATTACHMENT A
Item 1U - 6
Item 1U - 7

PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM

1. Name of Entity
Fast_ Track Construction Corporation

2. Address of Entity (Principle Place of Business)
5711 W Slauson Ave #170 Culver City CA 90230

3. Local or California Address (if different than #2)

4. State where Entity is Registered with Secretary of State California

5. Type ot 1::nt1ty
If other than California is the Entity also registered in California? Yes D No Xl Corporation  Limited Liability Company D Partnership o Trust D Other (please specify)

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity Richard Tyler-CEO/RMO ~ Officer o Director O Member ~Manager [name] o General Partner 0 Limited Partner
o Other
R~an Radebach: President H Officer D Director O Member o Manager [name] o General Partner 0 Limited Partner
D Other
Rand~ Tyler: Secretary 0 Officer o Director o Member  Manager [name] o General Partner Limited Partner
Angela Grant: Treasurer
D Other

CITY OF PALM SPRINGS-PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

DOWNTOWN PARK RE-BID
CITY PROJECT NO. 15-07
July 2019