Palm Springs City Council
October 22, 2025

PART II - REQUIRED BID DOCUMENTS
PAGE 18
Item 1G - Page 202

UNANIMOUS WRITTEN CONSENT IN LIEU OF
2024 ANNUAL MEETING OF THE SOLE SHAREHOLDER
OF
ELECNOR BELCO ELECTRIC, INC.

March 1, 2024
The undersigned, being the sole shareholder of Elecnor Belco Electric, Inc., a California corporation (the "Company"), hereby takes the following actions and adopts the following resolutions by unanimous written consent in lieu of holding a meeting of the Shareholders of the Company:

WHEREAS, the sole Shareholder has determined that it is in the Company's best interests to appoint a revised slate of Directors of the Company.

NOW, THEREFORE, BE IT RESOLVED, that the following persons be, and hereby are, elected to serve as Directors of the Company until their respective successors are elected and qualified at or before the next annual meeting of the Shareholder(s), or until their earlier respective deaths, resignations or removals:

Jesus Alberto Diez Fernandez
Alberto Garcia De Los Angeles
David Rodriguez
Pablo Sanchez
AND IT IS FURTHER RESOLVED, that all actions heretofore taken by the Directors of the Company on behalf of and in the name of the Company, relating to the conduct of the business of the Company, the expenditure of money, the making of contracts and all other acts taken or omitted in the performance of their duties to the Company be, and the same hereby are, in all respects, approved, ratified and affomed, as of the date taken, done or omitted, respectively.

IN WITNESS WHEREOF, the undersigned, being the sole shareholder of Elecnor Belco Electric, Inc., has executed these actions by written consent as of the date first written above.

ELECNOR, INC.

Alberto Garcia De Los Angeles, President & CEO
Item 1G - Page 203

UNANIMOUS WRITTEN CONSENT IN LIEU OF
2024 ANNUAL MEETING OF THE BOARD OF DIRECTORS
OF
ELECNOR BELCO ELECTRIC, INC.

March 1, 2024
The undersigned, being all of the members of the Board of Directors (the "Board") of Elecnor Belco Electric, Inc., a California corporation (the "Company"), in lieu of holding a meeting of the Board, hereby take the following actions and adopt the following resolutions by unanimous written consent:

WHEREAS, the Board has determined that it is in the Company's best interests to appoint a revised slate of Officers of the Company.

NOW, THEREFORE, BE IT RESOLVED, that the following persons be, and hereby are, elected to the offices set forth opposite their respective names, to hold such offices until their respective successors are elected and qualified at or before the next annual meeting of the Board, or until their earlier respective deaths, resignations or removals:

NAMES
Alberto Garcia De Los Angeles
Jeroni Gervilla
Roger De Vito
Pedro Emile
Leonardo Sancho Frances
John Wong
Pablo Sanchez
OFFICE
President and Chief Executive Officer
Chief Financial Officer
Chief Legal Officer, Senior Vice President,
and Assistant Secretary
Secretary
Vice President
Administrative Vice President - Licensing
Administrative Vice President - Licensing
FURTHER RESOLVED, that Albe1to Garcia De Los Angeles, Jeroni Gervilla, Leonardo Sancho Frances and Roger De Vito in their respective capacities (listed above) subject to such supervisory powers of the Board of Directors, hereby are authorized and directed to perform all the duties commonly incident to that office; shall have authority to execute in the name of the Company contracts, leases and other written instruments to be executed by the Company; and, shall perfonn such other duties as the Board of Directors may from time to time determine.

FURTHER RESOLVED, that the President and Chief Executive Officer may delegate authority to any Chief Financial Officer or Chief Operating Officer or Senior Vice President or Vice President as and within their authority levels as set fmth in the Company's Bylaws, as the same may be amended from time to time;
AND IT IS FURTHER RESOLVED, that all actions heretofore taken by the officers of the Company on behalf of and in the name of the Company, relating to the conduct of the business of the Company, the expenditure of money, the making of contracts and all other acts taken or omitted in the performance of their duties to the Company be, and the same hereby are, in all respects, approved, ratified and affinned, as of the date taken, done or omitted, respectively. 1 Item 1G - Page 204
The actions taken by the Board Consent shall have the same force and effect as if taken by the undersigned at a meeting of the Board of Directors, duly called and constituted pursuant to the Bylaws of the Company and the laws of the State of California. This Board Consent may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document.

IN WITNESS WHEREOF, the undersigned, being all of the members of the Board of Directors of Elecnor Belco Electric, Inc., have executed these actions by written consent as of the date first written above.

Alberto Garcia De Los Angeles, Director
David Rodriguez, Director Pabl
2 Item 1G - Page 205
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)

PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM (CONTINUED)

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

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

NA - [name of owner/investor] [percentage of beneficial interest in entity and name of entitvl
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 entitvl
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.

Signature of Disclosing Party, Printed Name, Date
Title
M ~

5.--~ ~~a~tt-t-
~~\)c~.~- 0\ IZL-\/25
l I n - 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

PART II - REQUIRED BID DOCUMENTS
PAGE19
Item 1G - Page 206
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO.18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)

CITY OF PALM SPRINGS

PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTIONS FOR APPLICANTS)
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 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)

PART II - REQUIRED BID DOCUMENTS
PAGE 20
Item 1G - Page 207
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)

PROJECT LABOR AGREEMENT (PLA) - ACKNOWLEDGEMENT FORM
BID TO: CITY OF PALM SPRINGS, CALIFORNIA
BID FROM: Elecnor Belco Electric, Inc.

The undersigned Bidder proposes and agrees, if this Bid is accepted, to enter into an Agreement with the City in the form included in the contract Documents (as defined in Article 13 of the Agreement) to perform the Work as specified or indicated in said Contract Documents.

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 in the Appendix of the special provisions.

By Submitting a bid, Contractor agrees, if this bid is accepted, 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. Contractor 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.

Dated: 9/08/2025
By ~ {inature)
Printed Name: John Wong ---------
Title: Executive Vice President

PART II - REQUIRED BID DOCUMENTS
PAGE 21
Item 1G - Page 208
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)
EXHIBIT 15-G - CONSTRUCTION CONTRACT- DBE COMMITMENT

1. Local Agency: ---'C'-it_.,y"""o"'"f"-P""' al""m"-S""'p""'r"'"in ... g-=- s ____________ 2. Contract DBE Goal: 16%

3. Project Description: Install advanced dilemma zone detecUon, protected left-turn phases. and pedestrian countdown heads.

4. Project Location: Seven (7) intersections throughout the City of Palm Springs

5. Bidder's Name: Elecnor Belco Electric, Inc. 6. Prime Certified DBE: □ 7. Bid Amount: ......,~"'-"S_ 4""",C_~.1_o _____ _

8. Total Dollar Amount for ALL Subcontractors: $\'2-81 \ 1 IC, 9. Total Number of ALL Subcontractors: - ~=--------

10. Bid 12. NAICS 13. DBE 15. DBE
Item 11. Description of Work, Service, or or Work Certification 14. DBE Contact Information Dollar Number Materials Supplied Category Number (Must be certified on the date bids are opened) Amount Codes S')~\.:>f "UZA ~\.(.., ,:S~ll,L ~11:;"S \2-or.-.~ e,.c;ac-\.C. *\1-23 ~~ IN\.~4"r\.."S '2...~'c,2.\0 5\0\'6S ~
G\O'l)1 "l-e - ',t,-:!>Q
~~e«..VE: Etoc:6.,-5\2... ~ .,-IC;T
y._ '1:)1
$\<33,~-ZO
Local Agency to Complete this Section upon Execution of Award

22. Local Agency Contract Number: 18-05 Sl&>,~.zo

16. TOTAL CLAIMED DBE PARTICIPATION

23. Federal-Aid Project Number: HSIPL-5282(049)
\C\. \ %

24. Bid Opening Date:

25. Contract Award Date:

IMPORTANT: Identify all DBE firms being claimed for credit,

26. Award Amount: regardless of tier. Names of the First Tier DBE Subcontractors and their respective item(s) of work listed above must be consistent, where applicable with the names and items of the work in the Local Agency certifies that all DBE certifications are valid and information on this form is "Subcontractor List" submitted with your bid. Written confirmation of complete and accurate. each listed DBE is required.

17. ~ Signature
'\-ZC\-20"2.S

27. Local Agency Representative's Signature 28. Date 18. Date ~~~ ~-~3-S'-\10

29. Local Agency Representative's Name 30. Phone 19. Preparer's Name 20. Phone 0-~~~ \}\.C.£ QQ,.es\oe,!\
31 . Local Agency Representative's Title 21 . Preparer's Title DISTRIBUTION: 1. Original - Local Agency

2. Copy - Caltrans District Local Assistance Engineer (DLAE). Failure to submit to DLAE within 30 days of contract execution may result in de-obligation of federal funds on contract.

3. Include additional copy with award package
ADA Notice: For individuals with sensory disabilities, this document is available in alternate formats . For information call (916) 654-6410 or TDD (916) 654-3880 or write Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814

PART II - REQUIRED BID DOCUMENTS
PAGE 22
Item 1G - Page 209
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)

INSTRUCTIONS - CONSTRUCTION CONTRACT DBE COMMITMENT

CONTRACTOR SECTION

1. Local Agency - Enter the name of the local or regional agency that is funding the contract.

2. Contract DBE Goal - Enter the contract DBE goal percentage as it appears on the project advertisement.

3. Project Location - Enter the project location as it appears on the project advertisement.

4. Project Description - Enter the project description as it appears on the project advertisement (Bridge Rehab, Seismic Rehab, Overlay, Widening, etc).

5. Bidder's Name - Enter the contractor's firm name.

6. Prime Certified DBE - Check box if prime contractor is a certified DBE.

7. Bid Amount - Enter the total contract bid dollar amount for the prime contractor.

8. Total Dollar Amount for ALL Subcontractors - Enter the total dollar amount for all subcontracted contractors. SUM = (DBEs + all Non-DBEs). Do not include the prime contractor information in this count.

9. Total number of ALL subcontractors - Enter the total number of all subcontracted contractors. SUM = (DB Es + all Non-DBEs). Do not include the prime contractor information in this count.

10. Bid Item Number - Enter bid item number for work, services, or materials supplied to be provided.

11. Description of Work, Services, or Materials Supplied - Enter description of work, services, or materials to be provided. Indicate all work to be performed by DBEs including work performed by the prime contractor's own forces, if the prime is a DBE. If 100% of the item is not to be performed or furnished by the DBE, describe the exact portion to be performed or furnished by the DBE. See LAPM Chapter 9 to determine how to count the participation of DBE firms.

12. NAICS or Work Category Codes - Enter NAICS or Work Category Codes from the California Unified Certification Program database.

13. DBE Certification Number- Enter the DBE's Certification Identification Number. All DBEs must be certified on the date bids are opened.

14. DBE Contact Information - Enter the name, address, and phone number of all DBE subcontracted contractors.

Also, enter the prime contractor's name and phone number, if the prime is a DBE.

15. DBE Dollar Amount - Enter the subcontracted dollar amount of the work to be performed or service to be provided.

Include the prime contractor if the prime is a DBE. See LAPM Chapter 9 for how to count full/partial participation.

16. Total Claimed DBE Participation - $: Enter the total dollar amounts entered in the "DBE Dollar Amount" column. %: Enter the total DBE participation claimed ("Total Claimed DBE Participation Dollars" divided by item "Bid Amount"). If the total% claimed is less than item "Contract DBE Goal," an adequately documented Good Faith Effort (GFE) is required (see Exhibit 15-H DBE Information - Good Faith Efforts of the LAPM).

17. Preparer's Signature - The person completing the DBE commitment form on behalf of the contractor's firm must sign their name.

18. Date - Enter the date the DBE commitment form is signed by the contractor's preparer.

19. Preparer's Name - Enter the name of the person preparing and signing the contractor's DBE commitment form.

20. Phone - Enter the area code and phone number of the person signing the contractor's DBE commitment form.

21. Preparer's Title - Enter the position/title of the person signing the contractor's DBE commitment form.

LOCAL AGENCY SECTION

22. Local Agency Contract Number - Enter the Local Agency contract number or identifier.

23. Federal-Aid Project Number - Enter the Federal-Aid Project Number.

24. Bid Opening Date - Enter the date contract bids were opened.

25. Contract Award Date - Enter the date the contract was executed.

26. Award Amount - Enter the contract award amount as stated in the executed contract.

27. Local Agency Representative's Signature - The person completing this section of the form for the Local Agency must sign their name to certify that the information in this and the Contractor Section of this form is complete and accurate.

28. Date - Enter the date the DBE commitment form is signed by the Local Agency Representative.

29. Local Agency Representative's Name - Enter the name of the Local Agency Representative certifying the contractor's DBE commitment form.

30. Phone - Enter the area code and phone number of the person signing the contractor's DBE commitment form.

31. Local Agency Representative Title - Enter the position/title of the Local Agency Representative certifying the contractor's DBE commitment form.

PART II - REQUIRED BID DOCUMENTS
PAGE 23
Item 1G - Page 210

DLA DBE CONFIRMATION
Item of work and description of services to be subcontracted or materials to be provided 1 Amount Bid Item Number ($) 17-23 SUP.PLY TRAFFIC SIGNAL POLES AND EQUIPMENT $305,512 1 If 100% of an item is not to be performed or furnished by the DBE, describe the Total $305,512 exact portion of the item to be performed or furnished.

As an authorized representative of a certified disadvantaged DBE firms can use this form as a written confirmation or use an equivalent form. business enterprise, I confirm if the bidder is awarded the Written confirmation must be submitted no later than 4 pm on the 5th day of bid contract, my business will enter into a contractual agreement opening. with the bidder or prime contractor to perform the type and dollar amount of work shown on the DBE Commitment form.

I certify under penalty of perjury that the foregoing is true and correct.
~q Signature of DBE's Authorized Representative

ERICK COOPER
Printed Name of DBE's Authorized Representative

PRINCIPAL
Title of DBE's Authorized Representative
9/29/2025
Date
Item 1G - Page 211
September 29, 2025
To: Elecnor Belco Electric, Inc.
14320 Albers Way
Chino, CA 91710
(909) 993-5470
Re: HSIP Cycle 9 Traffic Signal Improvements - City of Palm Springs Rogue Electric is pleased to provide you with the following materials and equipment for the referenced project:

Bid Item Qty Description
lteris Video Detection System for Tahquitz Canyon Way at Calle Encilia and Farrell Dr at Via Escuela: Includes Apex ZU Rackmount Cabinet Interface includes Cl, Pl, CDP supports up to 4 sensors and shipkit, 48v Apex Vector Sensor, Cat6 Siamese cable with the 16 AWG ground wire quantity-1,000 feet per reel, 17 in Color LCD Monitor Drawer Generation 4 LCD 1U rack mount drawer with monitor 1 composite video 1 VGA and 1 HDMI video input NTSC PAL, 493024101 4 FOOT Cable Assembly SDLC2 2070 17,21 2 controller, Turn on
Traffic Signal Equipment for the following intersections: Tahquitz Canyon Way & Calle Encilia, E. Palm Canyon Drive & Araby Drive/ Escoba Drive, Ramon Road & Avenida Caballeros, Ramon Road & Compadre Road, Fareell Drive & Via Escuela, Indian Canyon Drive & 20th Avenue, Sunrise Way & Alejo Road: Includes Signals, LED's, Countdowns, 17-23 1 APS PPB's for locations as noted on plans
17 1 Tahquitz Canyon Way & Calle Encilia
2 26-4-100 w/45 & 15
2 26-4-100 w/ 40 & 15
2 lA-10
3 PPBP 4'7
130W (200W HPS EQ) LED Luminaire Temple LED Edgelit ISNS SF Rigid Mount, white on green, per Std 621, w/artwork, legends:
2- Calle Encilia
4 2- Tahquitz Cyn
19 1 Ramona & Avenida Caballeros
1 26-4-100 w/40 % 15
1 PPBP 4'7
BOW (200W HPS EQ) LED Luminaire Temple LED Edgelit ISNS SF Rigid Mount, white on 1 I green, per Std 621, w/artwork, legends: Avenida Caballeros 21 1 Farrell & Via Escuela
1 PPBP4'7
23 1 Sunrise Way & Alejo Road
1 23-4-100 w/35
Notes:
• Rogue Electric Is Caltrans certified DBE. Certification No. 51958 • Quotation valid for 30 days subject to re-quote thereafter. • Delivery 18 - 22 Weeks after submittal approval.
• Terms: Net 30 Days, Pending Credit Verification.
• Sales tax is not included.

Thank you for the opportunity.

Unit Price Total
s 46,695.50 $ 93,391.00
s 115,431.00 $ 115,431.00
$ 69,800.00 s 69,800.00
$ 16,365.00 $ 16,365.00
$ 450.00 $ 450.00
$ 9,575.00 $ 9,575.00
Sub-Total $ 305,012.00
Sales Tax (10%) $ 30,501.20
Total $ 335,513.20
Item 1G - Page 212
~MDGLJ=
\i2!" =.L=~IC:

September 29, 2025
To: Elecnor Belco Electric, Inc.
14320 Albers Way
Chino, CA 91710
(909) 993-5470
Re: HSIP Cycle 9 Traffic Signal Improvements - City of Palm Springs Rogue Electric is pleased to provide you with the following materials and equipment for the referenced project:

I Bid Item Qty Description
Sales Rep: Erick Cooper
Unit Price
Rogue Electric• 29094 Jamesonite Circle.• Menifee, California 92584 • 909-720-6830 • Fax: 951-672-2599 Email: [email protected]
Total
Item 1G - Page 213
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)
EXHIBIT 15-H: PROPOSER/CONTRACTOR GOOD FAITH EFFORTS
Cost Proposal Due Date qf]9..tzo7-5
Federal-aid Project No(s). HSIPL-5282(049) Bid Opening Date qtzB,/1.cf2-S PE/CE
CON
The City of Palm Springs established a Disadvantaged Business Enterprise (DBE) goal of 16% for this contract. The information provided herein shows the required good faith efforts to meet or exceed the DBE contract goal.

Proposers or bidders submit the following information to document their good faith efforts within five (5) calendar days from cost proposal due date or bid opening. Proposers and bidders are recommended to submit the following information even if the Exhibit 10-01: Consultant Proposal DBE Commitments or Exhibit 15-G: Construction Contract DBE Commitment indicate that the proposer or bidder has met the DBE goal. This form protects the proposer's or bidder's eligibility for award of the contract if the administering agency determines that the bidder failed to meet the goal for various reasons, e.g., a DBE firm was not certified at bid opening, or the bidder made a mathematical error.

The following items are listed in the Section entitled "Submission of DBE Commitment" of the Special Provisions, please attach additional sheets as needed:

A. The names and dates of each publication in which a request for DBE participation for this project was placed by the bidder (please attach copies of advertisements or proofs of publication):

Publications
~~ \Iv\~,
Dates of Advertisement
B. The names and dates of written notices sent to certified DB Es soliciting bids for this project and the dates and methods used for following up initial solicitations to determine with certainty whether the DBEs were interested (please attach copies of solicitations, telephone records, fax confirmations, etc.):

Names of DBEs Solicited Date of Initial Solicitation Follow Up Methods and Dates ():3£ Go'°IL.. M.C'('

PART II - REQUIRED BID DOCUMENTS
PAGE 25
Item 1G - Page 214
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)
C. The items of work made available to DBE firms including those unbundled contract work items into economically feasible units to facilitate DBE participation. It is the bidder's responsibility to demonstrate that sufficient work to facilitate DBE participation in order to meet or exceed the DBE contract goal.

Items of
Work
Proposer or Bidder
Normally Performs Item
(Y/N)
1)"BE GoAL ~ t'
Breakdown of
Items
Amount
($)
Percentage
Of
Contract

0.00%

0.00%

0.00%

0.00%
D. The names, addresses and phone numbers of rejected DBE firms, the reasons for the bidder's rejection of the DBEs, the firms selected for that work (please attach copies of quotes from the firms involved), and the price difference for each DBE if the selected firm is not a DBE:

Names, addresses and phone numbers of rejected DBEs and the reasons for the bidder's rejection of the DB Es:
<l)~e. ~Q,t\\.... N\.E:\
Names, addresses and phone numbers of firms selected for the work above:
~::Y&€ ~ "'-'\~'i:-
E. Efforts (e.g. in advertisements and solicitations) made to assist interested DBEs in obtaining information related to the plans, specifications and requirements for the work which was provided to DBEs:
()QE: ~L IIV\.eT

PART II - REQUIRED BID DOCUMENTS
PAGE 26
Item 1G - Page 215
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)
F. Efforts (e.g. in advertisements and solicitations) made to assist interested DBEs in obtaining bonding, lines of credit or insurance, necessary equipment, supplies, materials, or related assistance or services, excluding supplies and equipment the DBE subcontractor purchases or leases from the prime contractor or its affiliate:
()~ (::t.oAL M..E'
G. The names of agencies, organizations or groups contacted to provide assistance in contacting, recruiting and using DBE firms (please attach copies of requests to agencies and any responses received, i.e., lists, Internet page download, etc.):

Name of Agency/Organization Method/Date of Contact Results ~~E G_oA.... ME'\
H. Any additional data to support a demonstration of good faith efforts:

D~~M.E\

PART II - REQUIRED BID DOCUMENTS
PAGE 27
Item 1G - Page 216
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)
PUBLIC CONTRACT CODE 10232 STATEMENT
In conformance with Public Contract Code Section 10232, the Contractor, hereby states under penalty of perjury, that no more than one final unappealable finding of contempt of court by a federal court has been issued against the Contractor within the immediately preceding two-year period because of the Contractor's failure to comply with an order of a federal court which orders the Contractor to comply with an order of the National Labor Relations Board.

Note: The following Statement and Questionnaire are part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Statement and Questionnaire.

Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution.

PUBLIC CONTRACT CODE SECTION 10285.1 STATEMENT
In conformance with Public Contract Code Section 10285.1 (Chapter 376, Stats. 1985), the bidder hereby declares under penalty of perjury under the laws of the State of California that the bidder has _ , has not L been convicted within the preceding three years of any offenses referred to in that section, including any charge of fraud, bribery, collusion, conspiracy, or any other act in violation of any state or Federal antitrust law in connection with the bidding upon, award of, or performance of, any public works contract, as defined in Public Contract Code Section 1101, with any public entity, as defined in Public Contract Code Section 1100, including the Regents of the University of California or the Trustees of the California State University. The term "bidder" is understood to include any partner, member, officer, director, responsible managing officer, or responsible managing employee thereof, as referred to in Section 10285.1.

Note: The bidder must place a checkmark after "has" or "has not" in one of the blank spaces provided.

The above Statement is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Statement.

Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution.

PART II - REQUIRED BID DOCUMENTS
PAGE 28
Item 1G - Page 217
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO.18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)
PUBLIC CONTRACT CODE SECTION 10162 QUESTIONNAIRE
In conformance with Public Contract Code Section 10162, the Bidder shall complete, under penalty of perjury, the following questionnaire:

Has the bidder, any officer of the bidder, or any employee of the bidder who has a proprietary interest in the bidder, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or a safety regulation? Yes __ No _X __
If the answer is yes, explain the circumstances in the following space.

PART II - REQUIRED BID DOCUMENTS
PAGE 29
Item 1G - Page 218
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)
(THE BIDDER'S EXECUTION ON THE SIGNATURE PORTION OF THIS PROPOSAL SHALL

ALSO CONSTITUTE AN ENDORSEMENT AND EXECUTION OF THOSE CERTIFICATIONS

WHICH ARE A PART OF THIS PROPOSAL)

EQUAL EMPLOYMENT OPPORTUNITY CERTIFICATION
The bidder Elecnor Belco Electric, Inc. , and its proposed subcontractors {as listed on the bidder's list of subcontractors), hereby certifies that they have_, have not~. participated in a previous contract or subcontract subject to the equal opportunity clauses, as required by Executive Orders 10925, 11114, or 11246, and that, where required, he has filed with the Joint Reporting Committee, the Director of the Office of Federal Contract Compliance, a Federal Government contracting or administering agency, or the former President's Committee on Equal Employment Opportunity, all reports due under the applicable filling requirements.

Note: The above certification is required by the Equal Employment Opportunity Regulations of the Secretary of Labor {41 CFR 60-1.7{b) (1)), and must be submitted by bidders and proposed subcontractors only in connection with contracts and subcontracts which are subject to the equal opportunity clause. Contracts and subcontracts which are exempt from the equal opportunity clause are set forth in 41 CFR 60-1.5. (Generally only contracts or subcontracts of $10,000 or under are exempt.)
Currently, Standard Form 100 {EEO-1) is the only report required by the Executive Orders or their implementing regulations.

Proposed prime contractors and subcontractors who have participated in a previous contract or subcontract subject to the Executive Orders and have not filed the required reports should note that 41 CFR 60-1.7{b) (1) prevents the award of contracts and subcontracts unless such contractor submits a report covering the delinquent period or such other period specified by the Federal Highway Administration or by the Director, Office of Federal Contract Compliance, U.S. Department of Labor.

PART II - REQUIRED BID DOCUMENTS
PAGE 30
Item 1G - Page 219
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO.18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)
(THE BIDDER'S EXECUTION ON THE SIGNATURE PORTION OF THIS PROPOSAL SHALL

ALSO CONSTITUTE AN ENDORSEMENT AND EXECUTION OF THOSE CERT/FICA TIONS

WHICH ARE A PART OF THIS PROPOSAL)

DEBARMENT AND SUSPENSION CERTIFICATION
TITLE 49, CODE OF FEDERAL REGULATIONS, PART 29
The bidder Elecnor Belco Electric, Inc. , under penalty of perjury, certifies that, except as noted below, he/she or any other person associated therewith in the capacity of owner, partner, director, officer, manager:
• is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any Federal agency;
• has not been suspended, debarred, voluntarily excluded or determined ineligible by any Federal agency within the past 3 years;
• does not have a proposed debarment pending; and
• has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past 3 years.

If there are any exceptions to this certification, insert the exceptions in the following space.

N/A
Exceptions will not necessarily result in denial of award, but will be considered in determining bidder responsibility. For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action.

Notes: Providing false information may result in criminal prosecution or administrative sanctions. The above certification is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Certification.

PART II - REQUIRED BID DOCUMENTS
PAGE 31
Item 1G - Page 220
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)

NON LOBBYING CERTIFICATION

FOR FEDERAL-AID CONTRACTS
The bidder Elecnor Belco Electric, Inc. , and prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in conformance with its instructions.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such subrecipients shall certify and disclose accordingly.

PART II - REQUIRED BID DOCUMENTS
PAGE 32
Item 1G - Page 221
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO. 18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)

DISCLOSURE OF LOBBYING ACTIVITIES
COMPLETE THIS FORM TO DISCLOSE LOBBYING ACTIVITIES PURSUANT TO 31 U.S.C. 1352 )..!:..... Type of Federal Action:
~ a. contract

2. Status of Federal Action: 3. Report Type: D a. bid/offer/application D a. initial

4. 6.
. grant b. initial award b. material chan
c. cooperative agreement c. post-award
d.

OPrime D Subawardee
Tier ___ , if known
Federal Department/Agency:

For Material hange Only:
year _L quarter ___ _
dale o'flast report ____ _

5. If Reporting Entity in /4 is Subawardee,
Enter Name and Address of Prime: ,. /
c •••• L .... t, ;fkn•w•

7. Fc~efa1 Program Name/Description:

CFDA Number, if applicable _ _ ______ _

8. Federal Action Number, if known: / 9. Award Amount, if known:

10. a. Name and Address of Lobby Entity /
(If individual, last name, first name, Ml
Individuals Performing Services (including
ddress if different from No. 10a)

11. 12.

14. IS.
(l I name, first name, Ml)
( attach Continuation Sheet( s) if necessary)
Amount of Payment (ch k all that apply) 13.
$ ___ ;t. actual D planned
Form of Payme t (check all that apply):

B a. ca .
b. • -kind; specify: nature _____ _
value _____ _
a. retainer
b. one-time fee
c. commission
d. contingent fee
e deferred
Bri Description of Services Performed or to be performed and Date(s) of Service, including o 11:er(s), employee(s), or member(s) contacted, for Payment Indicated in Item 11:
(attach Continuation Sheet(s) if necessary)
Continuation Sheet(s) attached: Yes D No ~ 16.
3 I U
Infonnation
.S.C. Section
requested
1352.
through
This disclosure
this fonn is
oflobbying
authorized
reliance
by Title
Signature:
~
was placed by the tier above when his transaction was made or - ~- --+-- -f"r------- - ---- entered into. This disclosure is required pursuant to 31 U.S.C. Print Name: J h y,'on 1352. This infonnation will be reported to Congress --· -1cr- ---------- semiannually and will be available for public inspection. Any person who fails to file the required disclosure shall be subject to a civil penalty of not less than $10,000 and not more than $ I 00,000 for each such failure.

Federal Use Onl :

Title: _ E_x_e_c_u_ti_v_e _V_ic_e_P_r_e_si_d_en_t _________ _ Telephone No.: _ (;...9_09....;.)_9_9_3-_5_4_70 ___ Date: ___ _ Authorized for Local Reproduction
Standard Fonn - LLL

PART II - REQUIRED BID DOCUMENTS
PAGE 33
Item 1G - Page 222
HSIP CYCLE 9 TRAFFIC SIGNAL IMPROVEMENTS, CITY PROJECT NO.18-05 FEDERAL AID PROJECT NO. HSIPL-5282(049)

INSTRUCTIONS FOR COMPLETION OF SF-LLL,

DISCLOSURE OF LOBBYING ACTIVITIES
This disclosure form shall be completed by the reporting entity, whether subawardee or prime Federal recipient, at the initiation or receipt of covered Federal action or a material change to previous filing pursuant to title 31 U.S.C. section 1352. The filing of a form is required for such payment or agreement to make payment to lobbying entity for influencing or attempting to influence an officer or employee of any agency, a Member of Congress an officer or employee of Congress or an employee of a Member of Congress in connection with a covered Federal action. Attach a continuation sheet for additional information if the space on the form is inadequate.

Complete all items that apply for both the initial filing and material change report. Refer to the implementing guidance published by the Office of Management and Budget for additional information.

1. Identify the type of covered Federal action for which lobbying activity is and/or has been secured to influence, the outcome of a covered Federal action.

2. Identify the status of the covered Federal action.

3. Identify the appropriate classification of this report. If this is a follow-up report caused by a material change to the information previously reported, enter the year and quarter in which the change occurred. Enter the date of the last, previously submitted report by this reporting entity for this covered Federal action.

4. Enter the full name, address, city, state and zip code of the reporting entity. Include Congressional District if known. Check the appropriate classification of the reporting entity that designates if it is or expects to be a prime or subaward recipient.

Identify the tier of the subawardee, e.g., the first subawardee of the prime is the first tier. Subawards include but are not limited to subcontracts, subgrants and contract awards under grants.

5. If the organization filing the report in Item 4 checks "Subawardee" then enter the full name, address, city, state and zip code of the prime Federal recipient. Include Congressional District, if known.

6. Enter the name of the Federal agency making the award or loan commitment. Include at least one organization level below agency name, if known. For example, Department of Transportation, United States Coast Guard.

7. Enter the Federal program name or description for the covered Federal action (item 1 ). If known, enter the full Catalog of Federal Domestic Assistance (CFDA) number for grants, cooperative agreements, loans and loan commitments.

8. Enter the most appropriate Federal identifying number available for the Federal action identification in item 1 (e.g., Request for Proposal (RFP) number, Invitation for Bid (IFB) number, grant announcement number, the contract grant. or loan award number, the application/proposal control number assigned by the Federal agency). Include prefixes, e.g., "RFP-DE-90- 001."

9. For a covered Federal action where there has been an award or loan commitment by the Federal agency, enter the Federal amount of the award/loan commitments for the prime entity identified in item 4 or 5.

10. (a) Enter the full name, address, city, state and zip code of the lobbying entity engaged by the reporting entity identified in item 4 to influenced the covered Federal action.
(b) Enter the full names of the individual(s) performing services and include full address if different from 10 (a). Enter Last Name, First Name and Middle Initial (Ml).

11. Enter the amount of compensation paid or reasonably expected to be paid by the reporting entity (item 4) to the lobbying entity (item 10). Indicate whether the payment has been made (actual) or will be made (planned). Check all boxes that apply. If this is a material change report, enter the cumulative amount of payment made or planned to be made.

12. Check the appropriate box. Check all boxes that apply. If payment is made through an in-kind contribution, specify the nature and value of the in-kind payment.

13. Check the appropriate box. Check all boxes that apply. If other, specify nature.

14. Provide a specific and detailed description of the services that the lobbyist has performed or will be expected to perform and the date(s) of any services rendered. Include all preparatory and related activity not just time spent in actual contact with Federal officials. Identify the Federal officer(s) or employee(s) contacted or the officer(s) employee(s) or Member(s) of Congress that were contacted.

15. Check whether or not a continuation sheet(s) is attached.

16. The certifying official shall sign and date the form, print his/her name title and telephone number.

Public reporting burden for this collection of information is estimated to average 30 minutes per response, including time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0046), Washington, D.C. 20503.

PART II - REQUIRED BID DOCUMENTS
PAGE 34
No. Description QTY UOM Contractor Pricing
1 Mobilization 1 LS $42,250.00
2 Temporary Traffic Control 1 LS $30,000.00
3 Water Pollution / Dust Control 1 LS $1,000.00
4 Remove Existing Curb and Gutter 176 LF $4,048.00
5 Remove Existing ADA Curb Ramp 4 EA $6,828.00
6 Remove Existing Sidewalk 1330 SF $6,650.00
7 Remove Existing PCC  Spandrel 636 SF $6,996.00
8 Sawcut and Remove Existing AC Pavement 173 SF $2,076.00 9 Construct 5" AC Over  4" Crushed Miscellaneous Base 173 SF $7,958.00 10 Construct PCC Sidewalk or Concrete Pad 1130 SF $9,040.00 11 Construct 6" Curb & Gutter 131 LF $7,467.00
12 Construct 8" Curb & Gutter 45 LF $3,105.00
13 Construct PCC  Spandrel 636 SF $13,356.00
14 Construct ADA Curb Ramp 4 EA $25,036.00
15 Adjust to Grade 10 EA $7,360.00
16 Furnish and Install Truncated Dome 80 SF $2,800.00
17 Traffic signal modification at the intersection of Tahquitz Canyon Way and Calle Encilia 1 LS $394,000.00
18 Traffic signal modification at the intersection of East Palm Canyon Drive and Araby Drive / Escoba Drive 1 LS $12,000.00
19 Traffic signal modification at the intersection of Ramon Road and Avenida Caballeros 1 LS $101,000.00
20 Traffic signal modification at the intersection of Ramon Road and Compadre Road 1 LS $34,000.00
21 Traffic signal modification at the intersection of Farrell Drive and Via Escuela 1 LS $107,000.00
22 Traffic signal modification at the intersection of Indian Canyon Drive and 20th Avenue 1 LS $41,000.00
23 Traffic signal modification at the intersection of Sunrise Way and Alejo Road 1 LS $90,000.00
Total
Bid Results for City Project 18‐05,
HSIP Cycle 9
Contractor: Elecnor Belco Electric, Inc.
$954,970.00
Item 1G - Page 223

CITY COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2025 CONSENT CALENDAR
SUBJECT: INITIATE FORMATION PROCEEDINGS FOR COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:

The City entered into a Development Agreement for the Serena Park development, located at the site of the former Palm Springs Country Club east of Sunrise Way and north of Verona Road. The Development Agreement provides for the City to cooperate with the property owner in the formation of a Community Facilities District (CFD) to finance any necessary public improvements for the Project as well as the fee required for purchase of open space. This action is the first step in the process to form a CFD. A CFD is a special financing district that will sell bonds to generate funds for the financing of the development fees and public facilities. Special taxes will be levied only on property within the CFD to repay the bonds.

RECOMMENDATION:

1. Adopt Resolutions:
(A) Approving the proposed boundaries of proposed Community Facilities District No. 2025-1 (Serena Park), declaring the intention of the City Council to authorize the formation of the proposed CFD No. 2025-1, levy a special tax, and set a time and place for the public hearing; and
(B) Declaring necessity to incur bonded indebtedness
BACKGROUND:

The City entered into a Development Agreement for the Serena Park development located at the site of the former Palm Springs Country Club east of Sunrise Way and north of Verona Road. The Development Agreement provides for the property owner to pay $3.2 million to the City within three (3) years for the future purchase of open space.

Serena Park contains 386 units, and the Planning Commission approved a tentative tract Item 1H - Page 1
City Council Staff Report
October 22, 2025 -- Page 2
Initiate Formation Proceedings for Community Facilities District No. 2025-1 (Serena Park) map subdividing the Serena Park project into seven large parcels and a remainder lot.

The approval allows the property owner to sell portions of the project to individual “merchant builders” who will construct their respective sections of the development.

The property is currently being developed by SunCal (Developer). The Developer is expecting to acquire 2 parcels adjacent to the property it currently owns. The Developer anticipates developing the first 386 units as “Serena Park I” shown on the map below, and the future acquisition will be developed with 91 units as “Serena Park II”.

STAFF ANALYSIS:

Background and Purpose of Community Facilities Districts (CFDs) The Mello-Roos Community Facilities Act of 1982 (“Mello-Roos Act”) allows cities and other local governments in California to create special tax districts known as Community Item 1H - Page 2
City Council Staff Report
October 22, 2025 -- Page 3
Initiate Formation Proceedings for Community Facilities District No. 2025-1 (Serena Park) Facilities Districts, or CFDs as a way to finance public infrastructure and services. This financing tool is especially useful in where new development creates demand for roads, parks, sewer systems, and other public facilities.

Before forming any CFDs, local agencies must adopt policies outlining how they will use the Mello-Roos Act. The Palm Springs City Council adopted Policies and Procedures for Special Assessment and Mello-Roos Community Facilities Districts on January 22, 1992, for financing public improvements (Goals and Policies). These policies were amended in April 2002 to comply with updates to the Mello-Roos Act and to allow CFD use for residential development. In September 2005, the City adopted a separate Statement of Goals and Policies for the Use of the Mello-Roos Community Facilities Act of 1982 for the purpose of establishing a CFD to provide for public safety services and for CFDs for which debt would not be issued.

The CFD proposed under this action CFD No. 2025-1 (Serena Park) aligns with the City’s current Goals and Policies.

Proposed CFD No. 2025-1 Formation – Serena Park Project The Serena Park project is comprised of two areas. Serena Park I proposes 386 marketrate detached homes on 63.2 acres. Serena Park II proposes 91 market-rate detached homes on 12.1 acres. The Developer currently owns 100% of the land within Serena Park I. The Developer is in the process of acquiring the property in Serena Park II, which will be included in CFD No. 2025-1.

The Development Agreement provides that the City would cooperate with the property owner in the formation of a CFD to finance any necessary public improvements for the Project. The property owner/Developer has requested the formation of a CFD by the City to finance the Development Agreement fee, certain City development impact fees (DIFs) and infrastructure, including sewer, storm drain, curb and gutter and street paving and a park.

The Development Agreement fee, infrastructure and the number of units are of sufficient size for the City to take the lead in the formation of the CFD for Serena Park. This will allow the City more control over the financed project and input into the tax rates. The amounts proposed to be financed are shown in Table 1.

The amounts to be financed and the cost to administer the CFD will be repaid solely from Special Taxes levied in the CFD, to be paid by future homeowners in the CFD.

The CFD is subdivided into 4 Improvement Areas (Improvement Area). Each Improvement Area will have a separate (but similar) tax rate structure, based on the expected product type and size of the units to be built. Having separate Improvement Areas will also facilitate separate merchant builders to purchase and develop portions of the property without being tied to the development of the other areas by other builders.

Item 1H - Page 3
City Council Staff Report
October 22, 2025 -- Page 4
Initiate Formation Proceedings for Community Facilities District No. 2025-1 (Serena Park) Estimated Amounts to be Financed from CFD No. 2025-1
Area 1 Area 2 Area 3 Area 4 Total
Units 132 102 152 91 477
City DIF:

Park
Development
$
-
$
-
$
-
$
559,650
$
559,650
Drainage - North 376,659 318,014 321,113 135,805 1,151,591 Sewer Facility
Fee 132,792 102,612 152,912 91,546 479,862
509,451 420,626 474,025 787,001 2,191,103
Improvements
Park 3,140,837 - - - 3,140,837
Storm Drainage 2,154,851 579,203 622,234 590,223 3,946,511 Sewer System 1,286,706 715,156 1,529,468 753,051 4,284,381 Curb & Gutter 877,534 741,518 812,586 401,626 2,833,264 Street Paving 1,375,474 1,043,220 1,735,091 770,550 4,924,335 Perimeter Walls - - - 581,406 581,406
Sidewalk

345,423 54,654

-

218,636 618,713
9,180,825 3,133,751 4,699,379 3,315,492 20,329,447
DA Fee

1,094,301

845,596

1,260,103

- 3,200,000
Total $10,784,577 $ 4,399,973 $ 6,433,507 $ 4,102,493 $ 25,720,550 TABLE 1
The special tax rates to be levied against property in each Improvement Area are based on the size of the homes and delineated in each Rate and Method of Apportionment of Special Tax (RMA) for each improvement area. The maximum special tax rates are established in Fiscal Year 2025-26, when the CFD is created, and escalate at 2% of the prior year amount for a period of 18 years. After this, the maximum special tax rate will not increase. This limitation on the escalation is for the protection of the homeowners, since allowing a special tax to escalate for the expected 30 years while bonds are outstanding would increase the tax by nearly 80% over that period, and would increase even more if the bonds are not issued for several years. With an 18-Year limit on the escalation, the special tax would increase by 40% by year 18 and then remain at that level as long as the bonds were outstanding, irrespective of when the bonds were issued.

A 2% escalation for an unlimited period is typical for CFDs formed throughout the State and is allowed by the City’s current Goals and Policies, so this was negotiated with the property owner as part of the City’s formation of the CFD.

The Fiscal Year 2025-26 special tax rates for CFD No. 2025-1 range from $3,465 to $5,400, depending on the size of the homes, which are expected to range from 1,750 Item 1H - Page 4
City Council Staff Report
October 22, 2025 -- Page 5
Initiate Formation Proceedings for Community Facilities District No. 2025-1 (Serena Park) square feet to 2,750 square feet. The expected overall tax rate based on the sales price of the homes, including the ad valorem tax, the City’s CFD No. 2005-1 public safety services tax and other assessments is projected to be between 1.75% and 1.80% of the sales price of the home.

The sales price of the homes used in the expected overall tax rate calculation are based on the Developer’s current estimates. Each RMA also contains a provision for a reduction in the special tax rates if, when the bonds for an improvement area are to be issued in the future, the approved tax rates under the RMA would cause the expected overall tax rate based on the updated sales price of the homes to exceed 2% of the sales price of the home. This will protect against a change in housing market conditions before bonds are to be issued.

The special taxes will only be levied on homes within the CFD to pay debt service on Special Tax Bonds issued in each improvement area, even if the RMAs allow special taxes to be levied for a longer period. The additional period is authorized to take into account the timing of when bonds might be issued in each improvement area. However, the special taxes will no longer be levied in an improvement area once any bonds issued for such improvement area have matured or been paid in full, expected to be 30 years from the date of issuance. The first issuance is not expected until 2027, after significant development has occurred.

The first step in the CFD formation process is to adopt a resolution of intention to form the CFD (Attachment A) and a resolution declaring the necessity of the CFD to incur bonded indebtedness (Attachment B).

Acquisition-Financing Agreement
An Acquisition-Financing Agreement which describes the facilities, the DIFs and the Development Agreement Fee that may be financed with bonds issued for the CFD and establishes the terms and conditions for acquiring and financing the public improvements will be presented at a future Council meeting.

Resolutions and Future Action
The Resolution of Intention declares the City Council’s intent to establish the proposed CFD No. 2025-1 (Serena Park), sets forth the boundaries of the CFD, including the RMA for each Improvement Area (Attachments D, E, F and G) and authorizing the levy of a special tax, sets the time and place for the public hearing, and orders the preparation of a CFD Report. The CFD Report is a separate document that includes a description of the facilities and fees, an estimate of the cost of financing the facilities and fees, and the incidental expenses. These expenses include the costs of proposed bond financing, administrative costs, and all other associated costs. The boundary map (Attachment C) will be recorded within 15 days of approval of the Resolution of Intention.

Item 1H - Page 5
City Council Staff Report
October 22, 2025 -- Page 6
Initiate Formation Proceedings for Community Facilities District No. 2025-1 (Serena Park) The Resolution Declaring the Necessity to Incur Bonded Indebtedness establishes the City Council’s determination that public convenience and necessity require the issuance of bonds by CFD No. 2025-1 in an amount not to exceed $12,500,000 for Improvement Area 1, $10,600,000 for Improvement Area 2, $15,000,000 for Improvement Area 3 and $7,500,000 for Improvement Area 4. The resolution authorizes the financing of eligible public facilities and related costs through the levy of special taxes and sets a public hearing on the proposed indebtedness for December 10, 2025. This hearing will be consolidated with the public hearing on the formation of the CFD and is a prerequisite to submitting the bond authorization to the qualified electors of the CFD.

Bonds will not be issued for any improvement area until the property value achieves a minimum value-to-lien ratio required by the bond market and the City’s Goals and Policies (that is, the property appraised value compared to the amount of bonds to be issued).

This will require significant development to have occurred in a particular Improvement Area. The amount of bonds actually issued for each Improvement Area will not exceed the fees and improvements listed above, together with costs to issue the bonds and appropriate reserves and other issuance costs. The amount of bonds issued in each Improvement Area will also be limited by the amount that can be supported by the special taxes to be levied in each Improvement Area and the ultimate bond interest rate when such bonds are issued. The maximum amount authorized was determined using contingencies for improvement cost escalation and relatively low interest rates, so it is relatively high to provide for possible future increase to costs, or positive changes in the home prices and the bond market.

If the Resolution of Intention and Resolution Determining the Necessity to Incur Bonded Indebtedness are approved, a public hearing will be scheduled for the City Council meeting on December 10, 2025, at 5:30 pm. At that time the City Council will consider the adoption of a resolution forming and establishing CFD No. 2025-1 (Serena Park), and submission of the authorization for the levy of special taxes to the qualified electors, which in this case is the Developer and the two existing property owners of the property in Serena Park II.

In addition, following the formation proceedings, the Acquisition-Financing Agreement will be presented for City Council consideration and approval.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports the City Council strategic plan to provide quality, well maintained infrastructure and facilities.

FISCAL IMPACT:

There is no on-going fiscal impact as a result of this action. Once the CFD is formed, the special taxes will be levied only on property within the CFD and will pay annual City and bond administrative costs and debt service on the bonds issued. The City will be Item 1H - Page 6
City Council Staff Report
October 22, 2025 -- Page 7
Initiate Formation Proceedings for Community Facilities District No. 2025-1 (Serena Park) reimbursed for any costs to form the CFD through a deposit made by the Developer to pay for the formation costs of the Special Tax Consultant, Bond Counsel and Municipal Advisor, as well as staff costs.

REVIEWED BY:

Department Director: Kristopher J. Mooney
City Manager: Scott Stiles
ATTACHMENTS:

A. Resolution of Intention
B. Resolution of Necessity
C. Proposed Boundary Map
D. Rate and Method of Apportionment (RMA) – Improvement Area No. 1 E. Rate and Method of Apportionment (RMA) – Improvement Area No. 2 F. Rate and Method of Apportionment (RMA) – Improvement Area No. 3 G. Rate and Method of Apportionment (RMA) – Improvement Area No. 4 Item 1H - Page 7

ATTACHMENT A

Item 1H - Page 8
55575.70015\44213803.2
RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA DECLARING ITS

INTENTION TO ESTABLISH PROPOSED COMMUNITY
FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) OF

THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE,

STATE OF CALIFORNIA, INCLUDING IMPROVEMENT

AREAS THEREIN, AND TAKING OTHER ACTIONS

RELATED THERETO
WHEREAS, the City Council (the “City Council”) of the City of Palm Springs (the “City”) has received a petition from the owners of certain real property within the City (the “Owners”) requesting that the City Council institute proceedings for the formation of a community facilities district, pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982,” (the “Act”) for the purpose of constructing, acquiring and financing through the sale of bonds or the levy of special taxes the Authorized Facilities (as defined herein) which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and
WHEREAS, the Owners are the owners of all of the property which is proposed to be included within the proposed community facilities district; and WHEREAS, the Owners have requested that in establishing the proposed community facilities district, the City Council designate four separate improvement areas (each an “Improvement Area” and, collectively, the “Improvement Areas”) over portions of the property to be included therein so that separate series of the bonds of the proposed community facilities district may be issued on behalf of each Improvement Area to finance the Authorized Facilities (as defined herein) secured by the levy of special taxes within each applicable Improvement Area; and WHEREAS, pursuant to Section 53350 of the California Government Code, the City Council may, by resolution, designate a portion or portions of a community facilities district as one of more Improvement Areas for the financing of, or contribution to the financing of, specified public facilities and which will be subject to the levy and payment of special taxes to pay the principal of and interest on the bonds of the community facilities district which may be issued and sold to finance the design, construction, and acquisition of such public facilities; and
WHEREAS, upon the designation of each Improvement Area, all proceedings for purposes of a bond election and for the purpose of levying special taxes for payment of the bonds shall apply only to the applicable Improvement Area; and WHEREAS, it is, therefore, necessary and desirable that separate Improvement Areas be designated to include specific portions of the property to be included in the Item 1H - Page 9
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Resolution No. ______

proposed community facilities district so that the property included in each such Improvement Area will be responsible only for the payment of special taxes which will be levied to pay principal of and interest on the bonds secured by such special taxes of the proposed community facilities district which will be issued and sold to finance the design, construction, and acquisition of the Authorized Facilities; and WHEREAS, the City Council has determined that it will be in the public interest and beneficial to the future residents of the proposed community facilities district that it be authorized to incur bonded indebtedness to finance the City Facilities; and WHEREAS, pursuant to Section 53320 of the California Government Code, having received such a petition, it is appropriate for the City Council to institute proceedings for the formation of the proposed community facilities district by the adoption of a resolution of intention pursuant to Section 53321 of said Code.

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

SECTION 1. Proposed Community Facilities District. A community facilities district is proposed to be established under the provisions of Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982.” The name proposed for the community facilities district is “Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California.” SECTION 2. Designation of Improvement Areas. Pursuant to Section 53350 of the Act, the City Council proposes to designate the following improvement areas within the proposed community facilities district: “Improvement Area No. 1 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California”; “Improvement Area No. 2 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California”; “Improvement Area No. 3 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California”; and “Improvement Area No. 4 of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California.” SECTION 3. Description and Map of Boundaries. The boundaries of the proposed community facilities district and each Improvement Area are described and shown on the map entitled “Proposed Boundaries of Community Facilities District No. 2025-1 (Serena Park) City of Palm Springs, County of Riverside, State of California,” which is on file with the City Clerk and is attached as Exhibit “E” to this resolution. Said map is approved and, pursuant to Section 3111 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3110 of said Code, record the original of said map in their office, and not later than 15 days prior to the date of the public hearing set forth in Section 10 hereof shall file a copy of said map with the County Recorder of the County of Riverside.

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Resolution No. ______

SECTION 4. Types of Facilities and Incidental Expenses. (a) The types of public facilities proposed to be provided for and financed by the proposed community facilities district and each Improvement Area therein are those authorized by the Act that are necessary for the development of the property within the proposed community facilities district, including, but not limited to the following facilities to be owned by the City (either through construction or through payment of capital fees):
street and transportation improvements including rights of way, curbs and gutters, paving, sidewalks, striping and signage, and other improvements relating thereto; park acquisition and improvements; storm drainage improvements; and sewer improvements (collectively, the “Authorized Facilities”); and
(b) The incidental expenses which will be incurred are: (i) the cost of planning and designing such Authorized Facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed community facilities district, issuance of the bonds thereof, the determination of the amount of and collection of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the community facilities district, and (iii) any other expenses incidental to the construction, completion, acquisition, and inspection of the Authorized Facilities.

SECTION 5. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay for the Authorized Facilities, to pay the principal of and interest on the bonds of the proposed community facilities district, the annual administrative expenses of the City and the proposed community facilities district in determining, apportioning, levying and collecting such special taxes within each Improvement Area, and in paying the principal of and interest on such bonds and the costs of registering, exchanging and transferring such bonds, secured by the recordation of a continuing lien against all taxable or nonexempt property in each Improvement Area of the proposed community facilities district, shall be annually levied within each Improvement Area of the proposed community facilities district.

The rates and method of apportionment of special taxes to be levied on parcels of taxable property in each Improvement Area of the proposed community facilities district are set forth in Exhibit “A,” Exhibit “B,” Exhibit “C,” and Exhibit “D” attached hereto and by this reference made a part hereof (each an “RMA”).

The maximum amounts of special taxes that may be levied in any fiscal year on parcels within each Improvement Area that are used for private residential purposes (“Residential Parcels”) are specified in dollar amounts in each respective RMA attached hereto. Special taxes shall not be levied as to each Residential Parcel to pay the capital cost of the facilities or the principal of and interest on the outstanding bonds of the community facilities district after Fiscal Year 2065-66 for Improvement Area No. 1, Fiscal Year 2068-69 for Improvement Area No. 2, Fiscal Year 2070-71 for Improvement Area No. 3, and Fiscal Year 2073-74 for Improvement Area No. 4 , except that a special tax that was lawfully levied in or before the final tax year for each Improvement Area and that remains delinquent may be collected in subsequent years. Under no circumstances shall the special taxes levied in any Fiscal Year against any Assessor’s Item 1H - Page 11
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Resolution No. ______

Parcel of Residential Property in an Improvement Area as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel in such Improvement Area by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied are as set forth in the respective RMAs attached hereto.

Pursuant to Section 53340 of the California Government Code, said special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

Upon recordation of a notice of special tax lien for each Improvement Area pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special taxes shall attach to all non-exempt real property within the applicable Improvement Area of the proposed community facilities district, and that lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special taxes ceases pursuant to the respective RMA.

SECTION 6. Exempt Properties. Pursuant to Section 53340 of the California Government Code, and except as provided in Section 53317.3 of said Code, properties of entities of the state, federal, and local governments shall be exempt from the levy of special taxes pursuant to the applicable RMA.

SECTION 7. Necessity. The City Council finds that the proposed City Facilities described in Section 3 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the proposed community facilities district.

SECTION 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the California Government Code, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating the proposed community facilities district, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the workin-kind, as determined by the City Council.

SECTION 9. Allocation of Bonded Indebtedness to Improvement Areas. Each Improvement Area shall have its own bonded indebtedness authorization. The maximum aggregate principal amount of bonded indebtedness for each Improvement Area is as follows:

Item 1H - Page 12
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Resolution No. ______

Improvement Area No. 1 $12,500,000;
Improvement Area No. 2 $10,600,000;
Improvement Area No. 3 $15,000,000; and
Improvement Area No. 4 $7,500,000.

Pursuant to Section 53350 of the California Government Code, all proceedings for purposes of a bond election with respect to the portion of the bonded indebtedness allocated above to each of the proposed Improvement Areas and for the purpose of levying special taxes for the payment of the principal of and interest on the bonds which may be issued and sold to represent such bonded indebtedness and to finance the design, construction, and acquisition of Authorized Facilities shall apply only to the applicable Improvement Area.

SECTION 10. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the California Government Code, the City Council finds that the public interest will not be served by allowing the owners of property within the proposed community facilities district to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction for the public facilities pursuant to said Section 53329.5.

SECTION 11. Public Hearing. A public hearing on the formation of the proposed community facilities district, the designation of the Improvement Areas, and the levy of special taxes pursuant to the applicable RMA within each Improvement Area shall be held at 5:30 p.m. on December 10, 2025 in the City Hall, Council Chamber, located at 3200 East Tahquitz Canyon Way, Palm Springs, California.

SECTION 12. Notice. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the California Government Code, and shall also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the boundaries of the Improvement Areas for the proposed community facilities district as prescribed by Section 53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least 15 days prior to the date of the hearing, and shall contain the information required by said Section 53322.

SECTION 13. Report. The City Manager, or his designee(s), being the officer(s) of the City who will be responsible for providing the proposed types of public facilities to be provided within and financed by the proposed community facilities district, if it is established, shall study the proposed district, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the public facilities by type which will in their opinion be required to adequately meet the needs of the proposed community facilities district and their estimate of the fair and reasonable cost of providing those public facilities and the incidental expenses to be incurred in Item 1H - Page 13
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Resolution No. ______

connection therewith. All such reports shall be made a part of the record of the hearing to be held pursuant to Section 11 hereof.

SECTION 14. Description of Voting Procedures. The voting procedures to be followed within each Improvement Area shall be pursuant to Section 53326 of the California Government Code and pursuant to the applicable provisions of the California Election Code.

SECTION 15. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 16. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 17. Effective Date. This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 22nd DAY OF OCTOBER, 2025.

SCOTT STILES, CITY MANAGER
ATTEST:

BRENDA PREE, CITY CLERK
Item 1H - Page 14
55575.70015\44213803.2
Resolution No. ______

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, BRENDA PREE, 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 October 22, 2025, 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 22nd day of October, 2025.

BRENDA PREE, CITY CLERK
Item 1H - Page 15
55575.70015\44213803.2
A-1
EXHIBIT “A”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 1
Item 1H - Page 16
55575.70015\44213803.2
B-1
EXHIBIT “B”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 2
Item 1H - Page 17
55575.70015\44213803.2
C-1
EXHIBIT “C”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 3
Item 1H - Page 18
55575.70015\44213803.2
D-1
EXHIBIT “D”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 4
Item 1H - Page 19
55575.70015\44213803.2
E-1
EXHIBIT “E”
PROPOSED BOUNDARY MAP OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF

CALIFORNIA
Item 1H - Page 20

ATTACHMENT B

Item 1H - Page 21
55575.70015\44088768.2
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, DECLARING THE

NECESSITY TO INCUR A BONDED INDEBTEDNESS ON

BEHALF OF EACH IMPROVEMENT AREA OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA

PARK) TO BE SECURED BY SPECIAL TAXES LEVIED

THEREIN TO PAY FOR THE ACQUISITION OR

CONSTRUCTION OF CERTAIN PUBLIC FACILITIES
WHEREAS, pursuant to Section 53321 of the California Government Code, the City Council (the “City Council”) of the City of Palm Springs (the “City”) has adopted a resolution declaring its intention to establish proposed Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, for the purpose of providing and financing certain Authorized Facilities, as defined therein (the “Resolution of Intention”); and
WHEREAS, the owners of certain real property within the City (the “Owners”) have requested that in establishing the proposed community facilities district, the City Council designate four separate improvement areas over portions of the property to be included therein (each an “Improvement Area” and, collectively, the “Improvement Areas”) so that special taxes may be levied within each Improvement Area to finance Authorized Facilities and to secure a separate series of the bonds on behalf of each Improvement Area; and
WHEREAS, pursuant to Section 53350 of the California Government Code, the City Council may, by resolution, designate a portion or portions of a community facilities district as one or more improvement areas for the financing of, or contribution to the financing of, specified public facilities and which will be subject to the levy and payment of special taxes to pay the principal of an interest on the bonds of the community facilities district which may be issued and sold to finance the design, construction, and acquisition of such public facilities; and
WHEREAS, upon the designation of such an improvement area, all proceedings for purposes of a bond election and for the purpose of levying special taxes for payment of the bonds shall apply only to the improvement area; and WHEREAS, it is, therefore, necessary and desirable that separate Improvement Areas be designated to include specific portions of the property to be included in the proposed community facilities district so that the property included in each such Improvement Area will be responsible only for the payment of special taxes which will be levied therein to finance Authorized Facilities and to pay principal of and interest on the bonds to finance such Authorized Facilities which will be secured by the special taxes in such Improvement Area; and
Item 1H - Page 22
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Resolution No. ______
Page - 2 -
WHEREAS, the City Council has determined that it is necessary for each Improvement Area of said proposed community facilities district to incur a bonded indebtedness for the purpose of providing and financing the Authorized Facilities, as defined in the Resolution of Intention; and
WHEREAS, it is therefore necessary for each Improvement Area of the proposed community facilities district to incur a bonded indebtedness for the purpose of providing and financing the Authorized Facilities.

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

SECTION 1. Bonded Indebtedness. The City Council declares that it is necessary that bonded indebtedness be incurred by and for each Improvement Area of proposed Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California, for the purpose of financing the design, construction, and acquisition of the Authorized Facilities, as they are described in the Resolution of Intention.

SECTION 2. Per Improvement Area. In order to finance the costs of the Authorized Facilities, it is necessary for the City of Palm Springs to incur bonded indebtedness for each Improvement Area of Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California in one or more series in the maximum aggregate principal amount as follows: (i) for Improvement Area No. 1, $12,500,000, (ii) for Improvement Area No. 2, $10,600,000, (iii) for Improvement Area No. 3, $15,000,000, and (iv) for Improvement Area No. 4, $7,500,000. Indebtedness subject to the authorization shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act. Pursuant to Section 53350 of the California Government Code, all proceedings for purposes of authorizing the bonded indebtedness for each Improvement Area and for the purpose of levying special taxes for the payment of the principal of and interest on the bonds which may be issued and sold to represent such bonded indebtedness and to finance the design, construction, and acquisition of Authorized Facilities shall be conducted separate by each Improvement Area.

SECTION 3. Costs Included. The amount of the proposed bonded indebtedness for each Improvement Area shall include all costs and estimated costs incidental to, or connected with, the accomplishment of the purposes for which the proposed bonded indebtedness is to be incurred, including, but not limited to, the estimated costs of construction and acquisition of the Authorized Facilities which are proposed to be provided within and for the proposed community facilities district, acquisition of land and rights-of-way, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal and financial consultant fees, bond and other reserve funds and interest on any bonds of the Improvement Areas of the proposed community facilities district estimated to be due and payable within two years from the date of the issuance of such bonds, election costs, and all costs of issuance of Item 1H - Page 23
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Resolution No. ______

the bonds, including, but not limited to, underwriter's discount, fees for bond counsel, disclosure counsel, appraisers, municipal advisors, market absorption consultants and other consultants, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs.

SECTION 4. Public Hearing. A public hearing on the authorization to incur bonded indebtedness within each Improvement Area shall be held at 5:30 p.m. on December 10, 2025 in the City Hall, Council Chamber, located at 3200 East Tahquitz Canyon Way, Palm Springs, California.

SECTION 5. Notice. The City Clerk shall publish a notice of the time and place of said hearing pursuant to Section 53346 of the California Government Code, and shall also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the proposed community facilities district.

SECTION 6. Description of Voting Procedures. Pursuant to Section 53353.5 of the California Government Code, (i) the propositions relating to the levy of a special tax, the incurring of bonded indebtedness, and the establishment of an appropriations limit for each Improvement Area shall be combined into one ballot, and (ii) the voting procedures to be followed within each Improvement Area on the question of authorizing the incurrence of bonded indebtedness shall be pursuant to Section 53326 of the California Government Code and pursuant to the applicable provisions of the California Election Code.

SECTION 7. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 8. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 9. Effective Date. This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 22ND DAY OF OCTOBER, 2025.

SCOTT STILES, CITY MANAGER
Item 1H - Page 24
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Resolution No. ______

ATTEST:

BRENDA PREE, CITY CLERK

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, BRENDA PREE, 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 October 22, 2025, 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 22nd day of October, 2025.

BRENDA PREE, CITY CLERK
Item 1H - Page 25

ATTACHMENT C

Item 1H - Page 26
SHEET 1 OF 1 SHEET
M:\GIS-Assessment\Palm Springs\CFD2025-1_Boundary.mxd

THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL

OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES AND

DIMENSIONS OF LOTS OR PARCELS REFER TO THE COUNTY
ASSESSOR'S MAPS FOR FISCAL YEAR 2024-2025.

PROPOSED BOUNDARY

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF PALM SPRINGS, THIS ________
DAY OF _______, 20___.
____________________________________

CITY CLERK

CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT No. 2025-1 (SERENA PARK)

CITY OF PALM SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

VICINITY MAP

NOT TO SCALE

PROPOSED

BOUNDARY
I-10

N INDIAN CANYON DR

VIA ESCUELA

ALEJO RD

GENE AUTRY TRL

E VISTA CHINO
SH-111

VARNER RD
21ST AVE

ROSE AVE
30TH AVE

RADIO RD
I-10
111
10 RECORDED THIS ____ DAY OF ___________,
20___, AT THE HOUR OF ____ O'CLOCK __M, IN
IN BOOK ___ PAGE ___ OF MAPS OF ASSESSMENT

AND COMMUNITY FACILITIES DISTRICTS IN THE

OFFICE OF THE COUNTY RECORDER, IN THE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

FEE: ____________ NO.: _______________

PETER ALDANA, ASSESSOR, COUNTY CLERK,

RECORDER
BY: ______________________________________
DEPUTY

THIS MAP SHOWS THE BOUNDARIES OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SARENA PARK) OF THE CITY OF PALM SPRINGS,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

I HEREBY CERTIFY THAT THE WITHIN MAP OR

AREAS TO BE COMMUNITY FACILITIES DISTRICT
NO. 2025-1 (SERENA PARK) OF THE CITY OF

PALM SPRINGS, COUNTY OF RIVERSIDE,

STATE OF CALIFORNIA, WAS APPROVED BY

THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS AT A REGULAR
MEETING THEREOF, HELD ON THE ___________ DAY
OF __________________, 20___, BY ITS RESOLUTION
NO.________________.
______________________________

CITY CLERK

CITY OF PALM SPRINGS

ASSESSOR'S PARCEL LIST
IMPROVEMENT AREA No. 1:
501-190-011 (Portion)
IMPROVEMENT AREA No. 2:
669-480-027 (Portion)
669-590-066 (Portion)
IMPROVEMENT AREA No. 3:
501-190-011 (Portion)
669-480-027 (Portion)
669-590-066 (Portion)
IMPROVEMENT AREA No. 4:
677-020-032
677-030-034
Improvement Area No. 3
Tract No. 36691-7
Improvement Area No. 2
Tract No. 36691-6
Improvement Area No. 3
Tract No. 36691-2
Improvement Area No. 2
Tract No. 36691-4
Improvement Area No. 3
Tract No. 36691-5
Improvement Area No. 1
Tract No. 36691-3
Improvement Area No. 4
Tract No. 38042
Improvement Area No. 1
Tract No. 36691-1
Improvement Area No. 4
Tract No. 39267
DE
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VIMINAL RD

WHITEWATER CLUB DR

FARRELL
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SAVANNA WAY

VERONA RD

FRANCIS DR

N MAGNOLIA RD

VENTURA RD

VINCENTIA RD

HUDSON RD

ROCHELLE RD CERRITOS RD

RACQUET CLUB RD

JOYCE DR

LOS ALAMOS RD

CYPRESS RD

CHUPEROSA RD

BAHADA RD

VENETIA RD

VALENCIA RD

HILDY LN

BELLAMY RD

WAYNE RD

ROGERS RD

POWELL RD

FINLEY RD

DEL LAGO RD
LEGEND
IMPROVEMENT AREA No. 1
IMPROVEMENT AREA No. 2
IMPROVEMENT AREA No. 3
IMPROVEMENT AREA No. 4

CFD BOUNDARY

PARCEL LINE
0 500 1,000 1,500
Feet
Item 1H - Page 27
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ATTACHMENT D

Item 1H - Page 28
A-1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
IMPROVEMENT AREA NO. 1 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

OF THE CITY OF PALM SPRINGS
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 1 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 1, unless exempted by law or by the provisions hereof in Section E, 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” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 1 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below.

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“Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 1 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 1 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 1” or “IA No. 1” means the property in the CFD designated as Improvement Area No. 1 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements.

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“Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 1.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property, Public Property, and Property Owners’ Association Property, that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property, Public Property, and Property Owners’ Association Property.
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs.

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“Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator.
“Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Single Family Property” means all Parcels of Residential Property. “Special Tax(es)” means the special tax to be levied in each Fiscal Year pursuant to the Rate and Method on each Parcel of Taxable Property in accordance with Section D. “Special Tax Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the City Council, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator. “Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section H. or that are not exempt from the Special Tax pursuant to law or Section E. “Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Dwelling Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied and imposed on such Dwelling Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Dwelling Unit and the real property on which it is located, assuming such Dwelling Unit had been completed, sold, and subject to such levies and impositions, excluding PACE Charges (or any other charge entered into voluntarily by the property owner) and service charges such as those related to sewer and trash.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2026-2027 Fiscal Year, all Parcels of Taxable Property shall be classified as Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method as determined pursuant to Sections C and D.

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Parcels of Developed Property shall further be classified as Residential Property or Other Property.

Parcels of Residential Property shall further be classified as Single Family Property. Parcels of Single Family Property shall be further categorized into Land Use Categories based on the Residential Floor Area for such Parcel.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $3,825

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $4,110

3. Single Family Property D/U Greater than 2,299 sq. ft. $4,425

4. Other Property Acre N/A $33,834
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, Item 1H - Page 33
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excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

A Parcel that does not have any changes made to it after the initial assignment of the Backup Special Tax shall not be increased if other Parcels in a Final Map are changed. Prior to the issuance of Bonds, if Parcels classified or to be classified as Single Family Property are subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified using the methodology described in the preceding paragraph. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

On each July 1, commencing July 1, 2026, the Backup Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Backup Special Tax increases. Following the Fiscal Year 2043-2044, the Backup Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044.

2. Approved Property
The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $33,834 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$33,834
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4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

The Maximum Special Tax for each Parcel of Public Property and/or Property Owners Association Property that is not Exempt Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax rate per Acre in Table 2 multiplied by the Acreage of such Parcel.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

Prior to the issuance of the first series of Bonds, the CFD shall do one of the following 1) select and engage a Price Point Consultant, where the Price Point Consultant shall prepare a Price Point Study setting forth the Minimum Sale Price of Dwelling Units within each Land Use Category of Residential Property or 2) select and engage a MAI Certified Appraiser, where the MAI Certified Appraiser shall prepare an appraisal setting forth at least the minimum market value of Dwelling Units within each Land Use Category of Residential Property. If, based upon such Price Point Study or appraisal, the Administrator calculates that the Total Tax Burden applicable to Dwelling Units within one or more Land Use Category of Residential Property to be constructed within the CFD exceeds 2.00% of the Minimum Sale Price of such Taxable Units, the Special Tax within such Land Use Category of Residential Property shall be reduced to the extent necessary to cause the Total Tax Burden applicable to Dwelling Units within such Land Use Category(ies) not to exceed 2.00% of the Minimum Sale Price of such Taxable Units. Each Special Tax reduction for a Land Use Category shall be calculated by the Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Categories.

If the Special Tax for any Land Use Category is reduced pursuant to the preceding paragraph, the Administrator shall calculate a reduced Maximum Special Tax for Other Property and Undeveloped Property, as well as a reduced Backup Special Tax for Developed Property. The revised Backup Special Tax shall be equal to the Maximum Special Tax as set forth in Table 1, reduced by a percentage equal to the weighted average percentage reduction in the Special Tax for all Land Use Categories of Residential Property. The weighted average percentage will be calculated by taking the sum of the products of the number of Taxable Units constructed or expected to be constructed in each Land Use Category multiplied by the percentage change in the Special Tax for each Land Use Category (or 0 for Land Use Categories that are not changing). This amount is then divided by the total number of Dwelling Units constructed or expected to be constructed and converted to a percentage. The reduced Maximum Special Tax shall be used to compute the reduced Backup Special Tax. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

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First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate as needed to satisfy the Special Tax Requirement; Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax to be levied on each Parcel of Developed Property for which the Maximum Special Tax is derived by the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for such Parcel;
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Taxable Property that is Public Property or Property Owners’ Association Property at up to 100% of the Maximum Special Tax for such Parcel.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 16.07 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.07 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.07 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial Item 1H - Page 36
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obligations of Improvement Area No. 1, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

G. APPEALS
Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The Administrator shall interpret this Rate and Method and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $9,690,276, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

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1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Parcels of Developed Property, (ii) Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued, and (iv) Parcels of Public Property or Property Owners’ Association Property that are not Exempt Property pursuant to Section E. The Maximum Special Tax obligation applicable to a Parcel may be fully prepaid and the obligation to pay the Special Tax for such Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax obligation for such Parcel shall provide the Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Parcel. Within 15 days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the Prepayment Amount for the Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Parcel.

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Parcels of Taxable Property based on the applicable Maximum Special Tax for Parcels of Developed Property not including any Parcels for which the Special Tax obligation has been previously prepaid.

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4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.

9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Item 1H - Page 39
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Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the Administrator shall remove the current Fiscal Year’s Special Tax levy for the Parcel from the County tax roll. With respect to any Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Parcel, and the obligation to pay the Special Tax for such Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on all Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

2. Prepayment in Part
The Maximum Special Tax obligation for a Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section H.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1 F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Item 1H - Page 40
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Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

With respect to any Parcel for which the Maximum Special Tax obligation is partially prepaid, the Administrator shall (i) distribute the Partial Prepayment as provided in Paragraph 15 of Section H.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Parcel pursuant to Section D.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2065-2066 Fiscal Year.

J. INTERPRETATIONS
The City Council may interpret this Rate and Method by ordinance or resolution for purposes of clarifying any vagueness or ambiguity. Any decision of the City Council shall be final and binding as to all persons.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 1 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $________

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $________

3. Single Family Property D/U Greater than 2,299 sq. ft. $________

4. Other Property Acre N/A $________
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CERTIFICATE OF MODIFICATION OF SPECIAL TAX
By execution hereof, the undersigned acknowledge, on behalf of the District and CFD No. 2025-1, receipt of this certificate and modification of the Rate and Method of Apportionment of Special Tax as set forth in this certificate.

CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 1 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________ Item 1H - Page 43

ATTACHMENT E

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RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
IMPROVEMENT AREA NO. 2 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

OF THE CITY OF PALM SPRINGS
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 2 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 2, unless exempted by law or by the provisions hereof in Section E, 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” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 2 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below.

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“Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 2 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 2 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 2” or “IA No. 2” means the property in the CFD designated as Improvement Area No. 2 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements.

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“Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 2.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property, Public Property, and Property Owners’ Association Property, that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property, Public Property, and Property Owners’ Association Property.
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 2 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs.

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“Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator.
“Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Single Family Property” means all Parcels of Residential Property. “Special Tax(es)” means the special tax to be levied in each Fiscal Year pursuant to the Rate and Method on each Parcel of Taxable Property in accordance with Section D. “Special Tax Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the City Council, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator. “Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section H. or that are not exempt from the Special Tax pursuant to law or Section E. “Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Dwelling Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied and imposed on such Dwelling Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Dwelling Unit and the real property on which it is located, assuming such Dwelling Unit had been completed, sold, and subject to such levies and impositions, excluding PACE Charges (or any other charge entered into voluntarily by the property owner) and service charges such as those related to sewer and trash.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2026-2027 Fiscal Year, all Parcels of Taxable Property shall be classified as Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method as determined pursuant to Sections C and D.

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Parcels of Developed Property shall further be classified as Residential Property or Other Property.

Parcels of Residential Property shall further be classified as Single Family Property. Parcels of Single Family Property shall be further categorized into Land Use Categories based on the Residential Floor Area for such Parcel.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,200 sq. ft. $4,265

2. Single Family Property D/U 2,200 sq. ft. – 2,349 sq. ft. $4,440

3. Single Family Property D/U 2,350 sq. ft. – 2,499 sq. ft. $4,615

4. Single Family Property D/U 2,500 sq. ft. – 2,649 sq. ft. $4,790

5. Single Family Property D/U 2,650 sq. ft. – 2,799 sq. ft. $4,965

6. Single Family Property D/U Greater than 2,799 sq. ft. $5,400

7. Other Property Acre N/A $28,731
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044.

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b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

A Parcel that does not have any changes made to it after the initial assignment of the Backup Special Tax shall not be increased if other Parcels in a Final Map are changed. Prior to the issuance of Bonds, if Parcels classified or to be classified as Single Family Property are subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified using the methodology described in the preceding paragraph. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

On each July 1, commencing July 1, 2026, the Backup Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Backup Special Tax increases. Following the Fiscal Year 2043-2044, the Backup Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044.

2. Approved Property
The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $28,731 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$28,731
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4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

The Maximum Special Tax for each Parcel of Public Property and/or Property Owners Association Property that is not Exempt Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax rate per Acre in Table 2 multiplied by the Acreage of such Parcel.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

Prior to the issuance of the first series of Bonds, the CFD shall do one of the following 1) select and engage a Price Point Consultant, where the Price Point Consultant shall prepare a Price Point Study setting forth the Minimum Sale Price of Dwelling Units within each Land Use Category of Residential Property or 2) select and engage a MAI Certified Appraiser, where the MAI Certified Appraiser shall prepare an appraisal setting forth at least the minimum market value of Dwelling Units within each Land Use Category of Residential Property. If, based upon such Price Point Study or appraisal, the Administrator calculates that the Total Tax Burden applicable to Dwelling Units within one or more Land Use Category of Residential Property to be constructed within the CFD exceeds 2.00% of the Minimum Sale Price of such Taxable Units, the Special Tax within such Land Use Category of Residential Property shall be reduced to the extent necessary to cause the Total Tax Burden applicable to Dwelling Units within such Land Use Category(ies) not to exceed 2.00% of the Minimum Sale Price of such Taxable Units. Each Special Tax reduction for a Land Use Category shall be calculated by the Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Categories.

If the Special Tax for any Land Use Category is reduced pursuant to the preceding paragraph, the Administrator shall calculate a reduced Maximum Special Tax for Other Property and Undeveloped Property, as well as a reduced Backup Special Tax for Developed Property. The revised Backup Special Tax shall be equal to the Maximum Special Tax as set forth in Table 1, reduced by a percentage equal to the weighted average percentage reduction in the Special Tax for all Land Use Categories of Residential Property. The weighted average percentage will be calculated by taking the sum of the products of the number of Taxable Units constructed or expected to be constructed in each Land Use Category multiplied by the percentage change in the Special Tax for each Land Use Category (or 0 for Land Use Categories that are not changing). This amount is then divided by the total number of Dwelling Units constructed or expected to be constructed and converted to a percentage. The reduced Maximum Special Tax shall be used to compute the reduced Backup Special Tax. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

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First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate as needed to satisfy the Special Tax Requirement; Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax to be levied on each Parcel of Developed Property for which the Maximum Special Tax is derived by the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for such Parcel;
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Taxable Property that is Public Property or Property Owners’ Association Property at up to 100% of the Maximum Special Tax for such Parcel.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 16.57 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.57 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.57 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial Item 1H - Page 52
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obligations of Improvement Area No. 2, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

G. APPEALS
Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The Administrator shall interpret this Rate and Method and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $4,839,417, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

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1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Parcels of Developed Property, (ii) Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued, and (iv) Parcels of Public Property or Property Owners’ Association Property that are not Exempt Property pursuant to Section E. The Maximum Special Tax obligation applicable to a Parcel may be fully prepaid and the obligation to pay the Special Tax for such Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax obligation for such Parcel shall provide the Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Parcel. Within 15 days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the Prepayment Amount for the Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Parcel.

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Parcels of Taxable Property based on the applicable Maximum Special Tax for Parcels of Developed Property not including any Parcels for which the Special Tax obligation has been previously prepaid.

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4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.

9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Item 1H - Page 55
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Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the Administrator shall remove the current Fiscal Year’s Special Tax levy for the Parcel from the County tax roll. With respect to any Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Parcel, and the obligation to pay the Special Tax for such Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on all Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

2. Prepayment in Part
The Maximum Special Tax obligation for a Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section H.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1 F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Item 1H - Page 56
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Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

With respect to any Parcel for which the Maximum Special Tax obligation is partially prepaid, the Administrator shall (i) distribute the Partial Prepayment as provided in Paragraph 15 of Section H.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Parcel pursuant to Section D.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2068-2069 Fiscal Year.

J. INTERPRETATIONS
The City Council may interpret this Rate and Method by ordinance or resolution for purposes of clarifying any vagueness or ambiguity. Any decision of the City Council shall be final and binding as to all persons.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 2 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,200 sq. ft. $_______

2. Single Family Property D/U 2,200 sq. ft. – 2,349 sq. ft. $_______

3. Single Family Property D/U 2,350 sq. ft. – 2,499 sq. ft. $_______

4. Single Family Property D/U 2,500 sq. ft. – 2,649 sq. ft. $_______

5. Single Family Property D/U 2,650 sq. ft. – 2,799 sq. ft. $_______

6. Single Family Property D/U Greater than 2,799 sq. ft. $_______

7. Other Property Acre N/A $_______
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CERTIFICATE OF MODIFICATION OF SPECIAL TAX
By execution hereof, the undersigned acknowledge, on behalf of the District and CFD No. 2025-1, receipt of this certificate and modification of the Rate and Method of Apportionment of Special Tax as set forth in this certificate.

CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 2 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________ Item 1H - Page 59

ATTACHMENT F

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RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
IMPROVEMENT AREA NO. 3 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

OF THE CITY OF PALM SPRINGS
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 3 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 3, unless exempted by law or by the provisions hereof in Section E, 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” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 3 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below.

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“Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 3 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 3 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 3” or “IA No. 3” means the property in the CFD designated as Improvement Area No. 3 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements.

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“Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 3.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property, Public Property, and Property Owners’ Association Property, that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property, Public Property, and Property Owners’ Association Property.
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 3 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs.

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“Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator.
“Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Single Family Property” means all Parcels of Residential Property. “Special Tax(es)” means the special tax to be levied in each Fiscal Year pursuant to the Rate and Method on each Parcel of Taxable Property in accordance with Section D. “Special Tax Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the City Council, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator. “Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section H. or that are not exempt from the Special Tax pursuant to law or Section E. “Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Dwelling Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied and imposed on such Dwelling Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Dwelling Unit and the real property on which it is located, assuming such Dwelling Unit had been completed, sold, and subject to such levies and impositions, excluding PACE Charges (or any other charge entered into voluntarily by the property owner) and service charges such as those related to sewer and trash.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2026-2027 Fiscal Year, all Parcels of Taxable Property shall be classified as Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method as determined pursuant to Sections C and D.

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Parcels of Developed Property shall further be classified as Residential Property or Other Property.

Parcels of Residential Property shall further be classified as Single Family Property. Parcels of Single Family Property shall be further categorized into Land Use Categories based on the Residential Floor Area for such Parcel.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 1,750 sq. ft. $3,720

2. Single Family Property D/U 1,750 sq. ft. – 1,949 sq. ft. $3,860

3. Single Family Property D/U 1,950 sq. ft. – 2,149 sq. ft. $4,000

4. Single Family Property D/U 2,150 sq. ft. – 2,349 sq. ft. $4,795

5. Single Family Property D/U 2,350 sq. ft. – 2,549 sq. ft. $4,955

6. Single Family Property D/U 2,550 sq. ft. – 2,749 sq. ft. $5,115

7. Single Family Property D/U Greater than 2,749 sq. ft. $5,400

8. Other Property Acre N/A $27,301
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044.

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b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

A Parcel that does not have any changes made to it after the initial assignment of the Backup Special Tax shall not be increased if other Parcels in a Final Map are changed. Prior to the issuance of Bonds, if Parcels classified or to be classified as Single Family Property are subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified using the methodology described in the preceding paragraph. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

On each July 1, commencing July 1, 2026, the Backup Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Backup Special Tax increases. Following the Fiscal Year 2043-2044, the Backup Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044.

2. Approved Property
The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $27,301 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$27,301
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4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

The Maximum Special Tax for each Parcel of Public Property and/or Property Owners Association Property that is not Exempt Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax rate per Acre in Table 2 multiplied by the Acreage of such Parcel.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

Prior to the issuance of the first series of Bonds, the CFD shall do one of the following 1) select and engage a Price Point Consultant, where the Price Point Consultant shall prepare a Price Point Study setting forth the Minimum Sale Price of Dwelling Units within each Land Use Category of Residential Property or 2) select and engage a MAI Certified Appraiser, where the MAI Certified Appraiser shall prepare an appraisal setting forth at least the minimum market value of Dwelling Units within each Land Use Category of Residential Property. If, based upon such Price Point Study or appraisal, the Administrator calculates that the Total Tax Burden applicable to Dwelling Units within one or more Land Use Category of Residential Property to be constructed within the CFD exceeds 2.00% of the Minimum Sale Price of such Taxable Units, the Special Tax within such Land Use Category of Residential Property shall be reduced to the extent necessary to cause the Total Tax Burden applicable to Dwelling Units within such Land Use Category(ies) not to exceed 2.00% of the Minimum Sale Price of such Taxable Units. Each Special Tax reduction for a Land Use Category shall be calculated by the Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Categories.

If the Special Tax for any Land Use Category is reduced pursuant to the preceding paragraph, the Administrator shall calculate a reduced Maximum Special Tax for Other Property and Undeveloped Property, as well as a reduced Backup Special Tax for Developed Property. The revised Backup Special Tax shall be equal to the Maximum Special Tax as set forth in Table 1, reduced by a percentage equal to the weighted average percentage reduction in the Special Tax for all Land Use Categories of Residential Property. The weighted average percentage will be calculated by taking the sum of the products of the number of Taxable Units constructed or expected to be constructed in each Land Use Category multiplied by the percentage change in the Special Tax for each Land Use Category (or 0 for Land Use Categories that are not changing). This amount is then divided by the total number of Dwelling Units constructed or expected to be constructed and converted to a percentage. The reduced Maximum Special Tax shall be used to compute the reduced Backup Special Tax. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

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First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate as needed to satisfy the Special Tax Requirement; Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax to be levied on each Parcel of Developed Property for which the Maximum Special Tax is derived by the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for such Parcel;
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Taxable Property that is Public Property or Property Owners’ Association Property at up to 100% of the Maximum Special Tax for such Parcel.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 24.23 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 24.23 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 24.23 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial Item 1H - Page 68
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obligations of Improvement Area No. 3, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

G. APPEALS
Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The Administrator shall interpret this Rate and Method and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $7,088,364, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

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1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Parcels of Developed Property, (ii) Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued, and (iv) Parcels of Public Property or Property Owners’ Association Property that are not Exempt Property pursuant to Section E. The Maximum Special Tax obligation applicable to a Parcel may be fully prepaid and the obligation to pay the Special Tax for such Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax obligation for such Parcel shall provide the Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Parcel. Within 15 days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the Prepayment Amount for the Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Parcel.

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Parcels of Taxable Property based on the applicable Maximum Special Tax for Parcels of Developed Property not including any Parcels for which the Special Tax obligation has been previously prepaid.

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4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.

9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Item 1H - Page 71
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Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the Administrator shall remove the current Fiscal Year’s Special Tax levy for the Parcel from the County tax roll. With respect to any Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Parcel, and the obligation to pay the Special Tax for such Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on all Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

2. Prepayment in Part
The Maximum Special Tax obligation for a Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section H.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1 F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Item 1H - Page 72
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Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

With respect to any Parcel for which the Maximum Special Tax obligation is partially prepaid, the Administrator shall (i) distribute the Partial Prepayment as provided in Paragraph 15 of Section H.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Parcel pursuant to Section D.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2070-2071 Fiscal Year.

J. INTERPRETATIONS
The City Council may interpret this Rate and Method by ordinance or resolution for purposes of clarifying any vagueness or ambiguity. Any decision of the City Council shall be final and binding as to all persons.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 3 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 1,750 sq. ft. $________

2. Single Family Property D/U 1,750 sq. ft. – 1,949 sq. ft. $________

3. Single Family Property D/U 1,950 sq. ft. – 2,149 sq. ft. $________

4. Single Family Property D/U 2,150 sq. ft. – 2,349 sq. ft. $________

5. Single Family Property D/U 2,350 sq. ft. – 2,549 sq. ft. $________

6. Single Family Property D/U 2,550 sq. ft. – 2,749 sq. ft. $________

7. Single Family Property D/U Greater than 2,749 sq. ft. $________

8. Other Property Acre N/A $________
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CERTIFICATE OF MODIFICATION OF SPECIAL TAX
By execution hereof, the undersigned acknowledge, on behalf of the District and CFD No. 2025-1, receipt of this certificate and modification of the Rate and Method of Apportionment of Special Tax as set forth in this certificate.

CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 3 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________ Item 1H - Page 75

ATTACHMENT G
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RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
IMPROVEMENT AREA NO. 4 OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)

OF THE CITY OF PALM SPRINGS
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 4 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 4, unless exempted by law or by the provisions hereof in Section E, 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” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 4 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below.

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“Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 4 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 4 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 4” or “IA No. 4” means the property in the CFD designated as Improvement Area No. 4 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements.

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“Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 4.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property, Public Property, and Property Owners’ Association Property, that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property, Public Property, and Property Owners’ Association Property.
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 4 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs.

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“Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator.
“Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Single Family Property” means all Parcels of Residential Property. “Special Tax(es)” means the special tax to be levied in each Fiscal Year pursuant to the Rate and Method on each Parcel of Taxable Property in accordance with Section D. “Special Tax Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the City Council, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator. “Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section H. or that are not exempt from the Special Tax pursuant to law or Section E. “Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Dwelling Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied and imposed on such Dwelling Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Dwelling Unit and the real property on which it is located, assuming such Dwelling Unit had been completed, sold, and subject to such levies and impositions, excluding PACE Charges (or any other charge entered into voluntarily by the property owner) and service charges such as those related to sewer and trash.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2026-2027 Fiscal Year, all Parcels of Taxable Property shall be classified as Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method as determined pursuant to Sections C and D.

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Parcels of Developed Property shall further be classified as Residential Property or Other Property.

Parcels of Residential Property shall further be classified as Single Family Property. Parcels of Single Family Property shall be further categorized into Land Use Categories based on the Residential Floor Area for such Parcel.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $3,470

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $3,735

3. Single Family Property D/U Greater than 2,299 sq. ft. $4,000

4. Other Property Acre N/A $31,262
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, Item 1H - Page 81
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excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

A Parcel that does not have any changes made to it after the initial assignment of the Backup Special Tax shall not be increased if other Parcels in a Final Map are changed. Prior to the issuance of Bonds, if Parcels classified or to be classified as Single Family Property are subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified using the methodology described in the preceding paragraph. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

On each July 1, commencing July 1, 2026, the Backup Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Backup Special Tax increases. Following the Fiscal Year 2043-2044, the Backup Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044.

2. Approved Property
The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $31,262 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$31,262
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4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

The Maximum Special Tax for each Parcel of Public Property and/or Property Owners Association Property that is not Exempt Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax rate per Acre in Table 2 multiplied by the Acreage of such Parcel.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

Prior to the issuance of the first series of Bonds, the CFD shall do one of the following 1) select and engage a Price Point Consultant, where the Price Point Consultant shall prepare a Price Point Study setting forth the Minimum Sale Price of Dwelling Units within each Land Use Category of Residential Property or 2) select and engage a MAI Certified Appraiser, where the MAI Certified Appraiser shall prepare an appraisal setting forth at least the minimum market value of Dwelling Units within each Land Use Category of Residential Property. If, based upon such Price Point Study or appraisal, the Administrator calculates that the Total Tax Burden applicable to Dwelling Units within one or more Land Use Category of Residential Property to be constructed within the CFD exceeds 2.00% of the Minimum Sale Price of such Taxable Units, the Special Tax within such Land Use Category of Residential Property shall be reduced to the extent necessary to cause the Total Tax Burden applicable to Dwelling Units within such Land Use Category(ies) not to exceed 2.00% of the Minimum Sale Price of such Taxable Units. Each Special Tax reduction for a Land Use Category shall be calculated by the Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Categories.

If the Special Tax for any Land Use Category is reduced pursuant to the preceding paragraph, the Administrator shall calculate a reduced Maximum Special Tax for Other Property and Undeveloped Property, as well as a reduced Backup Special Tax for Developed Property. The revised Backup Special Tax shall be equal to the Maximum Special Tax as set forth in Table 1, reduced by a percentage equal to the weighted average percentage reduction in the Special Tax for all Land Use Categories of Residential Property. The weighted average percentage will be calculated by taking the sum of the products of the number of Taxable Units constructed or expected to be constructed in each Land Use Category multiplied by the percentage change in the Special Tax for each Land Use Category (or 0 for Land Use Categories that are not changing). This amount is then divided by the total number of Dwelling Units constructed or expected to be constructed and converted to a percentage. The reduced Maximum Special Tax shall be used to compute the reduced Backup Special Tax. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

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First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate as needed to satisfy the Special Tax Requirement; Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax to be levied on each Parcel of Developed Property for which the Maximum Special Tax is derived by the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for such Parcel;
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Taxable Property that is Public Property or Property Owners’ Association Property at up to 100% of the Maximum Special Tax for such Parcel.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 10.87 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 10.87 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 10.87 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial Item 1H - Page 84
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obligations of Improvement Area No. 4, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

G. APPEALS
Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The Administrator shall interpret this Rate and Method and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $4,102,493, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

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1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Parcels of Developed Property, (ii) Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued, and (iv) Parcels of Public Property or Property Owners’ Association Property that are not Exempt Property pursuant to Section E. The Maximum Special Tax obligation applicable to a Parcel may be fully prepaid and the obligation to pay the Special Tax for such Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax obligation for such Parcel shall provide the Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Parcel. Within 15 days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the Prepayment Amount for the Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Parcel.

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Parcels of Taxable Property based on the applicable Maximum Special Tax for Parcels of Developed Property not including any Parcels for which the Special Tax obligation has been previously prepaid.

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4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.

9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Item 1H - Page 87
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Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the Administrator shall remove the current Fiscal Year’s Special Tax levy for the Parcel from the County tax roll. With respect to any Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Parcel, and the obligation to pay the Special Tax for such Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on all Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

2. Prepayment in Part
The Maximum Special Tax obligation for a Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section H.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1 F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Item 1H - Page 88
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Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

With respect to any Parcel for which the Maximum Special Tax obligation is partially prepaid, the Administrator shall (i) distribute the Partial Prepayment as provided in Paragraph 15 of Section H.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Parcel pursuant to Section D.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2073-2074 Fiscal Year.

J. INTERPRETATIONS
The City Council may interpret this Rate and Method by ordinance or resolution for purposes of clarifying any vagueness or ambiguity. Any decision of the City Council shall be final and binding as to all persons.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 4 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $______

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $______

3. Single Family Property D/U Greater than 2,299 sq. ft. $______

4. Other Property Acre N/A $______
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CERTIFICATE OF MODIFICATION OF SPECIAL TAX
By execution hereof, the undersigned acknowledge, on behalf of the District and CFD No. 2025-1, receipt of this certificate and modification of the Rate and Method of Apportionment of Special Tax as set forth in this certificate.

CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 4 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________ Item 1H - Page 91

CITY COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2025 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 1 TO CONTRACT SERVICE AGREEMENT NO. 25B056 WITH R&R B INC., DBA SERVPRO OF PALM SPRINGS, AND AMENDMENT NO. 1 TO AGREEMENT NO. 25B057 WITH DESERT VALLEY RESTORATION, INC. FOR ON-CALL GENERAL EMERGENCY

RESTORATION AND REMEDIATION SERVICES
FROM: Scott C. Stiles, City Manager
BY: David McAbee, Director of Public Works
SUMMARY:

This action will approve Amendment No. 1 to Agreement No. 25B056 with R&R B, Inc., dba Servpro of Palm Springs in the amount of $375,000 for a revised contract amount not to exceed $975,000; and approve Amendment No. 1 to Agreement No. 25B057 with Desert Valley Restoration, Inc. in the amount of $250,000 for a revised contract amount not to exceed $650,000, for on-call general emergency restoration and remediation services for the Public Works department.

RECOMMENDATION:

1. Approve Amendment No. 1 (Attachment A) to Agreement No. 25B056 with R&R B, Inc., dba Servpro of Palm Springs, to provide on-call general emergency restoration and remediation services for the Public Works department for an additional amount of $375,000 and for a total revised contract amount not to exceed $975,000 through March 16, 2028, with two one-year extension options at the City’s sole discretion; and

2. Approve Amendment No. 1 (Attachment B) to Agreement No. 25B057 with Desert Valley Restoration, Inc., to provide on-call general emergency restoration and remediation services for the Public Works department for an additional amount of $250,000 and for a revised contract amount not to exceed $650,000 through March 16, 2028, with two one-year extension options at the City’s sole discretion; and

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

Item 1I - Page 1
BUSINESS PRINCIPAL DISCLOSURE:

According to the Public Integrity Disclosure forms (Attachments C & D) submitted on February 11, 2025, R&R B, Inc., dba Servpro of Palm Springs and Desert Valley Restoration, Inc., are both registered in the state of California.

BACKGROUND:

The City of Palm Springs requires the services of contractors to provide on-call general emergency restoration and remediation services at various City of Palm Springs buildings. Due to the frequency of services needed to update and repair existing locations and install new projects, the department solicitated bids to perform on-call general emergency restoration and remediation services.

An Invitation for Bids (IFB 24-43) was initiated by the City’s Procurement and Contracting Department on January 13, 2025, based on the Department of Public Works specifications. R&R B, Inc., dba Servpro of Palm Springs was awarded the primary contract (No. 25B056, Attachment E) for an amount not to exceed $600,000, and Desert Valley Restoration, Inc., was awarded the secondary contract (No. 25B057, Attachment F) for an amount not to exceed $400,000 for an initial three-year term with two optional one-year extensions, approved by Council on March 12, 2025.

In the first seven months of the contracts, the City has completed $282,000 in work.

However, several significant projects are upcoming, including remediation services at the Palm Springs Pavilion, Fire Station 5, and Police Department Firing Range, which are estimated to total nearly $900,000. While the original intent of these agreements was to support emergency services, staff now recognize that these contracts are also essential for addressing broader project remediation needs across multiple City facilities.

STAFF ANALYSIS:

To date, staff are satisfied with both contractors in terms of the quality of response time, work product, services, and professionalism.

Staff recommend approval of Amendment No. 1 to Agreement No. 25B056 with R&R B, Inc., dba Servpro of Palm Springs to provide on-call general emergency restoration and remediation services for an additional amount of $375,000 and a total revised contract amount not to exceed $975,000 through March 16, 2028; and approval of Amendment No. 1 to Agreement No. 25B057 with Desert Valley Restoration, Inc., to provide on-call general emergency restoration and remediation services for an additional amount of $250,000 and a revised contract amount not to exceed $650,000 through March 16, 2028.

ENVIRONMENTAL ASSESSMENT:

The requested City Council action is not a “Project” as defined by the California Item 1I - Page 2
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 that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports the City Council strategic plan to provide quality, well maintained infrastructure and facilities.

FISCAL IMPACT:

Funds for these services are budgeted and available in the current Fiscal Year budget and will be budgeted in subsequent fiscal years:

Public Works: 5206570-40105, 50119
Measure J Deferred Maintenance: 2603205-50119
REVIEWED BY:

Assistant Director of Public Works: Daniel Martinez
Director of Public Works: David McAbee
Procurement and Contracting Manager: Tabitha Richards
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:

A. Agreement 25B056
B. Agreement 25B057
C. Amendment No. 1 to Agreement 25B056
D. Amendment No. 1 to Agreement 25B057
E. Public Integrity Disclosure – R&R B Inc dba Servpro of Palm Springs.

F. Public Integrity Disclosure – Desert Valley Restoration, Inc.

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ATTACHMENT A
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AMENDMENT NO. 01 TO THE CONTRACT SERVICE AGREEMENT 25B056

BETWEEN THE CITY PALM SPRINGS AND R&R B INC, DBA SERVPRO OF

PALM SPRINGS

1. Parties and Date.

This Amendment No. 01 to the Contract Service Agreement 25B056 is made and entered into as of this 22 day of October 2025, by and between the City of Palm Springs, a California charter city and municipal corporation (“City”), and R&R B, Inc., dba Servpro of Palm Springs, a California corporation. City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. City and Contractor entered into an agreement titled “On-call Restoration and Remediation Services” dated March 12, 2025, for the purpose of retaining the services of Contractor to provide on-call restoration and remediation services for the Public Works Department in an amount not to exceed $600,000.00 for an initial three-year term commencing on March 17, 2025, and continuing through March 16, 2028.

2.2 Amendment Purpose. City and Contractor now desire to amend the Agreement to add an additional amount of $375,000.00 for a revised total contract amount not to exceed $975,000.

2.3 Amendment Authority. This Amendment No. 01 is authorized pursuant to Section 3.3 of the Agreement.

3. Terms.

3.1 Amendment. Section 3.1 of the Agreement is hereby amended in its entirety to read as follows:
“Contractor shall be compensated and reimbursed 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 $975,000.00.”

3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 01, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 01. From and after the date of this Amendment No. 01, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 01.

3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 01.

3.4 Severability. If any portion of this Amendment No. 01 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

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3.5 Counterparts. This Amendment No. 01 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR AMENDMENT NO. 01 TO THE CONTRACT SERVICE AGREEMENT 25B056

BETWEEN THE CITY PALM SPRINGS AND R&R B, INC DBA SERVPRO OF PALM SPRINGS 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: _______________________________ City Attorney City Clerk
APPROVED:

By: _______________________________ Date:

City Manager – up to $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
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ATTACHMENT B
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AMENDMENT NO. 01 TO THE CONTRACT SERVICES AGREEMENT 25B057

BETWEEN THE CITY PALM SPRINGS AND DESERT VALLEY
RESTORATIONS, INC.

1. Parties and Date.

This Amendment No. 01 to the Contract Service Agreement 25B057 is made and entered into as of this 22 day of October 2025, by and between the City of Palm Springs, a California charter city and municipal corporation (“City”), and Desert Valley Restoration, Inc., a California corporation. City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. City and Contractor entered into an agreement titled “On-Call Restoration and Remediation Services 25B057” dated March 17,2025, for the purpose of retaining the services of Contractor to provide on-call restoration and remediation services for the Public Works Department in an amount not to exceed $400,000.00 for an initial three-year term commencing on March 17, 2025, and continuing through March 16, 2028.

2.2 Amendment Purpose. City and Contractor desire to amend Agreement 25B057 to add additional funds to the contract in the amount of $250,000.00 for a revised total contract amount not to exceed $650,000.00.

2.3 Amendment Authority. This Amendment No. 01 is authorized pursuant to Section 3.3 of the Agreement.

3. Terms.

3.1 Amendment. Section 3.1 of the Agreement is hereby amended in its entirety to read as follows:
“Contractor shall be compensated and reimbursed 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 $650,000.00.”

3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 01, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 01. From and after the date of this Amendment No. 01, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 01.

3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 01.

3.4 Severability. If any portion of this Amendment No. 01 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

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3.5 Counterparts. This Amendment No. 01 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR AMENDMENT NO. 01 TO THE CONTRACT SERVICE AGREEMENT 25B057
BETWEEN THE CITY PALM SPRINGS AND DESERT VALLEY RESTORATION, 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: _______________________________ City Attorney City Clerk
APPROVED:

By: _______________________________ Date:

City Manager – up to $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
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ATTACHMENT C
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ATTACHMENT D
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ATTACHMENT E
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CONTRACT ABSTRACT
Contract/Amendment
Name of Contract:

Company Name:

Company Contact:

Email:

Summary of Services:

Contract Price:

Contract Term:

Public Integrity/ Business
Disclosure Forms:

Contract Administration
Lead Department:

Contract Administrator/ Ext:

Contract Approvals
Council/City Manager Approval Date:

Agreement Number:

Amendment Number:

Contract Compliance
Exhibits:

Insurance:

Routed By:

Bonds:

Business License:

Sole Source Co-Op
Sole Source CoOp Agmt #:

Documents: CoOp Name:

CoOp Pricing:

Submitted on: By:

Contract Abstract Form Rev 8.16.23
Authorized Signers:

Name, Email
(Corporations require 2 signatures)
On-Call Restoration and Remediation Services R&R B Inc DBA Servpro of Palm Springs Cindy Helmstead [email protected] Provide on-call restoration and remediation services for Maintenance and Facilities department $600,000 March 17, 2025 - March 16, 2028 Yes Rick Brogdon, [email protected] Rhonda Brogdon, [email protected] Maintenance & Facilities Daniel Martinez /8348 March 12, 2025 / Item: 1E 25B056 N/A Yes Yes Yes Procurement N/A No IFB 24-43
N/A N/A N/A 3/11/2025 Anil Cholakkara
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CONTRACT SERVICES AGREEMENT 25B056

ON-CALL GENERAL EMERGENCY RESTORATION

AND REMEDIATION SERVICES
THIS AGREEMENT FOR CONTRACT SERVICES (“Agreement”) is made and entered into on March 12, 2025, by and between the City of Palm Springs, a California charter city and municipal corporation (“City”), and R&R B Inc DBA Servpro of Palm Springs, 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 vendor to provide restoration and remediation services on an as-needed basis for the Public Works Department, (“Project”).

B. Contractor has submitted to City a bid to provide restoration and remediation 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 herein, and other valuable consideration, 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, experienced, and well qualified members of the profession currently practicing 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.

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.

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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 according 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 reimbursed 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 $600,000.00.

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 schedule of fees 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 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.

4. PERFORMANCE SCHEDULE

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

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4.2 Schedule of Performance. All Services rendered under this Agreement shall be performed under the agreed upon schedule of performance 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 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 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 authorities,” includes ordinances, emergency proclamations and orders, 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 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 shall be final and conclusive upon 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 shall continue in full force and effect for a period of three years, commencing on March 17, 2025, and ending on March 16, 2028, unless extended by mutual written agreement of the Parties. In addition, the term may be extended at the sole discretion of the City upon written notice to the Contractor, for two (2) additional one (1) year terms.

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. 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 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 thirty (30) days written notice to City.

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: Cindy Helmstead, Director of Commercial Accounts. It is expressly understood that the experience, knowledge, education, Docusign Envelope ID: 12897264-ACC3-4D0A-8F3C-8ED64F989168 Item 1I - Page 22
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 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 the 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, and reputation of Contractor, its principals 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 subject to all provisions 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 its 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 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 City 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’ compensation 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 following personnel 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:

Cindy Helmstead Director of Commercial Accounts
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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 and 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, 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 upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).

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, 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 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 Docusign Envelope ID: 12897264-ACC3-4D0A-8F3C-8ED64F989168 Item 1I - Page 24
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 Claims 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, expenses, and expenditures pertaining 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 evaluate the performance of such 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 drawings, specifications, 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.

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 business 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, 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 shall clearly identify and make such items readily Docusign Envelope ID: 12897264-ACC3-4D0A-8F3C-8ED64F989168 Item 1I - Page 25
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 shall be instituted in the Superior Court 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 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 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 exercise of any right or remedy of a nondefaulting 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 the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

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, correct, 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 Docusign Envelope ID: 12897264-ACC3-4D0A-8F3C-8ED64F989168 Item 1I - Page 26
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 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.

10.3 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.

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 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: R&R B Inc DBA Servpro of Palm Springs
Attention: Cindy Helmstead
81785 Trader Place, Suite A
Indio, CA 92201

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.

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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 shall be 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 contained 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. 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.

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

11.10 Compliance with Economic Sanctions in Response to Russia's Actions in Ukraine. When funding for the services is provided, in whole or in part, by an agency controlled of the State of California, Consultant shall fully and adequately comply with California Executive Order N-6-22 (“Russian Sanctions Program”). As part of this compliance process, Consultant shall also certify compliance with the Russian Sanctions Program by completing the form located in Exhibit “C” (Russian Sanctions Certification), attached hereto and incorporated herein by reference. Consultant shall also require any subconsultants to comply with the Russian Sanctions Program and certify compliance pursuant to this Section. [SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND

R&R B INC DBA SERVPRO OF PALM SPRINGS
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: _______________________________ 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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03/12/2025 1E
3/13/2025
Item 1I - Page 29
EXHIBIT “A”

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

A. Contractor shall furnish labor, materials, and equipment to perform restoration services that are needed due to water damage, fire or smoke damage, sewer leaks, mold, lead, asbestos or environmental remediation or other unanticipated restoration (Work) need in City facilities. The scope of Work shall include repair, remediation, water extraction and removal and disposal of contaminated materials, carpentry, demolition, drywall, concrete block, stucco, asphalt, finishes and other work normally under the supervision of a general construction contractor. Remediation services shall include, but are not limited to:

1. Sewage clean-up and remediation

2. Contents manipulation – moving, removal, inventory, pack out and temporary on site or permanent off-site disposal of contents from the area including but not limited to furniture, appliances, electronics etc.

3. Contents drying and treatment – including but not limited to sterilization, sanitization, deodorization etc.

4. Upholstery cleaning

5. Structural drying and/or floor drying (wood, carpet, and vinyl)

6. Floor, carpet and rug cleaning, disinfecting and sanitizing

7. Deodorize/odor removal

8. Antimicrobial treatment

9. Structural dehumidification

10. Drying equipment monitoring – if it is necessary to leave drying equipment on site, professional shall return to the site at regular time intervals, preferably every twenty-four hours, to monitor the equipment and affected area.

11. Mold remediation

12. Disposal shall also include appropriate photo documentation, and record keeping. This shall include project estimation and budgeting work.

B. Contractor shall be responsible for setting up proper site protection prior to commencing services, as well as daily clean-up following completion of work.

1. The Contractor shall solely be responsible for correcting any damages caused by on site work, due to improperly protecting property.

C. Response time: Contractor shall respond to calls for service as follows:

1. Contractor shall respond to department within 48 hours from the request of work.

2. Request for proposals shall be provided within 7 days from the initial request for planned projects.

3. Contractor shall have sufficient resources to respond to multiple requests for work simultaneously. Dispatching crews to each project which may have overlapping timelines.

D. Contractor shall have weekly written communication with the Project Manager to provide project updates and provide forthcoming schedule updates Docusign Envelope ID: 12897264-ACC3-4D0A-8F3C-8ED64F989168 Item 1I - Page 31
E. Correction of work deficiencies:

1. Contractor shall correct work rejected by the City as failing to conform to the requirements in the project documents within thirty days. The Contractor shall bear the cost of correcting such rejected work, including the costs of uncovering, replacement, and additional testing.

2. If the Contractor fails to commence correction of nonconforming work within a seven-day period after written notice, the city may correct the deficiencies by other means. In such case, the City may exercise rights and remedies as provided in section 9.4 of agreement.

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

F. 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 responsible for securing any and all permits as required by the governing authority. The City shall reimburse the Contractor for only the actual cost of said permits.

G. 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 classification and/or assigned trade person. Mechanical or other equipment used for Work must be of 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 employees or other persons or damage to the building structure, fixtures, furnishings, etc. The City, at its sole and absolute discretion, 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.

H. General safety requirements: The Contractor shall be responsible for all safety precautions required in connection with their work, including regulations of the Occupational Safety and Health Administration (OSHA) and other governing agencies. The City reserves the right to oversee all service work from a safety standpoint and require the Contractor to take appropriate action to ensure safety and code compliance.

I. Damages: Necessary precautions shall be taken at all times to protect persons, property and equipment from injury or damage. Any damage shall be reported, reviewed, and discussed with the facility manager.

J. Security:

1. The Contractor is responsible for ensuring all entries/exits to the work area are secure during the discharge of their duties (doors must not be propped open).

The Contractor does not have the authority and shall not grant access to any person requesting entry into the building or specific work area.

2. Any items or articles of apparent value found by the Contractor’s personnel in any areas of the building or site shall be turned over to the facility manager or onsite 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.

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K. 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 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.

L. Uniforms and vehicles:

1. The Contractor shall be required to properly 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 must abide by City’s requirements for visiting City buildings, including wearing required face coverings.

2. Contractor vehicles must display company logo and name.

M. Contractor’s employees must act in a professional manner at all times and abide by all local, state and federal laws. Contractor’s employees deemed noncompliant will be removed immediately and replaced within twenty-four (24) hours. Contractor’s employees must submit to weapons screening as directed. Contractor’s employees must be able to understand, read and communicate in English under the performance of this Contract.

1.2 Pricing:

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

B. 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.

C. The City will only pay for the items listed on the bid form, and permit 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 management, overhead, profit, onboarding training, travel, 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 subcontractors, rental of equipment/tools, and purchase of materials/supplies unless the City authorized payment of the applicable items.

1.3 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 only. All work authorized under the contract will be compensated on a time and material basis as outlined in the Invoicing Section.

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1.4 Invoicing:

Contractor will submit an itemized invoice 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 may be returned for correction before any payments to the contractor are authorized. It shall be the contractor’s responsibility to submit a correct invoice. The City shall not be responsible for payment until a correct invoice is received. The invoice shall be accompanied 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].

1.5 Special Security Requirements:

Police Department: Any personnel of Contractor assigned to perform services at the Palm Springs Police Department must pass a Criminal History Records Check (CHRC) prior to performing services at this facility. 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 card issued by another government agency.

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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)
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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 (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 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 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.

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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 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 selfinsurance 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 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 Docusign Envelope ID: 12897264-ACC3-4D0A-8F3C-8ED64F989168 Item 1I - Page 39
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.

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CITY OF PALM SPRINGS
3200 E TAHQUITZ CANYON WAY, PALM
SPRINGS, CA 92262
(760) 322-8328

BUSINESS LICENSE CERTIFICATE
Fees Paid: $160.00

ISSUANCE OF THIS LICENSE DOES NOT ENTITLE THE

LICENSEE TO OPERATE OR MAINTAIN A BUSINESS
IN VIOLATION OF ANY OTHER LAW OR ORDINANCE.

THIS IS NOT AN ENDORSEMENT OF THE ACTIVITY
NOR OF THE APPLICANT'S QUALIFICATIONS.

Business Name: SERVPRO OF PALM

SPRINGS
DBA:

Owner: Servpro of Chino/Chino Hills
Mailing Address: 13885 Redwood Ave.

Chino, CA 91710
License Number: CBL-001175-2023
Expiration Date: 12/31/2025

PLEASE NOTE THAT IT IS YOUR RESPONSIBILITY TO
RENEW AND UPDATE THIS LICENSE ANNUALLY.

Business Location: 81785 TRADER PLACE, INDIO,
CA 92201
Business Description: CONTRACTOR -

GENERAL/FIRE & WATER
REST.

TO BE POSTED IN A CONSPICUOUS PLACE
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SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A :

NAIC #
NAME:

CONTACT
(A/C, No):

FAX
E-MAIL
ADDRESS:

PRODUCER
(A/C, No, Ext):

PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD

THIS IS T O CERT IFY T HAT T HE POLICIES OF INSURANCE LIST ED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR T HE POLICY PERIOD INDICAT ED. NOT WITHSTAND ING ANY REQUIREMENT , T ERM OR CONDITION OF ANY CONT RACT OR OT HER DOCUMENT WITH RESPECT T O WHICH THIS

CERT IFICAT E MAY BE ISSUED OR MAY PERT AIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMIT S SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$ PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)

COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOS ONLY AUTOS

NON-OWNED

OWNED SCHEDULED

ANY AUTO

AUTOMOBILE LIABILITY
Y / N

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
OFFICER/MEMBEREXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under

ANYPROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER

OTH- STAT UTEPER
(MM/DD/YYYY) LIMITS POLICY EXP (MM/DD/YYYY)

POLICY EFF LTR TYPE OF INSURANCE POLICY NUMBER INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $
AGGREGATE $
$
OCCUR

CLAIMS-MADE
DED RETENTION $
PRODUCTS - COMP/OP AGG $
GENERAL AGGREGATE $
PERSONAL & ADV INJURY $
MED EXP (Any one person) $
EACH OCCURRENCE $

DAMAGE TO RENTED
PREMISES (Ea occurrence) $

COMMERCIAL GENERAL LIABILITY

CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:

POLICY PROJECT LOC

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
Cover Letter
02/03/2025
Marsh Program & Franchise
855-459-9164
[email protected]
Marsh Affinity
a division of Marsh USA LLC.

PO BOX 14404
Des Moines IA 50306-9686
Customer Number: 3335080
Restoration Risk Retention Group 12209
Nationwide Mutual Insurance Co 23787
155645485
R & R B, Inc.
13885 Redwood Ave
Chino CA 91710
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs CA 92262
2,000,000
x
5,000,000
100,000
5,000
2,000,000
5,000,000
x RGL060643
x
05/05/2024 05/05/2025
x $7,500 Deductible
x RXC240495 05/05/2024 05/05/2025 2,000,000
x 2,000,000
x 0
CPL ( $7,500 Deductible) RPU060416 05/05/2024 05/05/2025 PER OC: $2,000,000 AGG: $3,000,000 Limited Service and Repair RLS060859 05/05/2024 05/05/2025 PER OC: $250,000 AGG: $250,000 Cyber( $ 1,000 deductible) RCY708390 10/26/2024 10/26/2025 PER OC: $500,000 AGG: $500,000 A
A
A
A
A
B Bailees Liability ( $1000 Deductible) ACPCI013190487241 12/31/2024 12/31/2025 POLICY LIMIT: $250,000 Owned PPV Owned other
than PPV
Docusign Envelope ID: 12897264-ACC3-4D0A-8F3C-8ED64F989168 Item 1I - Page 49
22 Marsh USA, Inc
RLS060859
Restoration Risk Retention Group
25 Certificate of Liability Insurance
12209 05/05/2024
3335080
R & R B, Inc.
13885 Redwood Ave
Chino CA 91710
Additional Named Insured:

Miscellaneous Limited Professional Liability Coverage of $ 250,000 per claim / $ 250,000 General Aggregate applies to the policy RPU060416 9344 R & R B, Inc. dba Servpro of Chino/Chino Hills
10726 R & R B, Inc. dba Servpro of Hesperia/Apple Valley 11002 R & R B, Inc. dba Servpro of Barstow/Twentynine Palms 11859 R & R B, Inc. dba Servpro of Victorville/Adelanto/Victor Valley 11890 R & R B, Inc. dba Servpro of Palm Springs
11891 R & R B, Inc. dba Servpro of Indio, Coachella
11930 R & R B, Inc. dba Servpro of Indian Wells, La Quinta Docusign Envelope ID: 12897264-ACC3-4D0A-8F3C-8ED64F989168 Item 1I - Page 50

ATTACHMENT F
Item 1I - Page 51
CONTRACT SERVICES AGREEMENT 25B057

ON-CALL GENERAL EMERGENCY RESTORATION

AND REMEDIATION SERVICES
THIS AGREEMENT FOR CONTRACT SERVICES (“Agreement”) is made and entered into on March 12, 2025, by and between the City of Palm Springs, a California charter city and municipal corporation (“City”), and Desert Valley Restoration, 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 vendor to provide restoration and remediation services on an as-needed basis for the Public Works Department, (“Project”).

B. Contractor has submitted to City a bid to provide restoration and remediation 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 herein, and other valuable consideration, 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, experienced, and well qualified members of the profession currently practicing 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.

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.

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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 according 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 reimbursed 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 $400,000.00.

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 schedule of fees 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 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.

4. PERFORMANCE SCHEDULE

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

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4.2 Schedule of Performance. All Services rendered under this Agreement shall be performed under the agreed upon schedule of performance 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 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 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 authorities,” includes ordinances, emergency proclamations and orders, 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 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 shall be final and conclusive upon 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 shall continue in full force and effect for a period of three years, commencing on March 17, 2025, and ending on March 16, 2028, unless extended by mutual written agreement of the Parties. In addition, the term may be extended at the sole discretion of the City upon written notice to the Contractor, for two (2) additional one (1) year terms.

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. 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 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 thirty (30) days written notice to City.

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: Scott Johnson, President. It is expressly understood that the experience, knowledge, education, capability, and reputation of Docusign Envelope ID: DEE32263-21D2-4C0D-818D-FF06852EDAFD Item 1I - Page 54
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 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 the 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, and reputation of Contractor, its principals 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 subject to all provisions 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 its 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 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 City 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’ compensation 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 following personnel 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:

Scott Johnson President
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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 and 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, 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 upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).

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, 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 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 Docusign Envelope ID: DEE32263-21D2-4C0D-818D-FF06852EDAFD Item 1I - Page 56
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 Claims 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, expenses, and expenditures pertaining 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 evaluate the performance of such 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 drawings, specifications, 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.

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 business 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, 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 shall clearly identify and make such items readily Docusign Envelope ID: DEE32263-21D2-4C0D-818D-FF06852EDAFD Item 1I - Page 57
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 shall be instituted in the Superior Court 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 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 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 exercise of any right or remedy of a nondefaulting 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 the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

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, correct, 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 Docusign Envelope ID: DEE32263-21D2-4C0D-818D-FF06852EDAFD Item 1I - Page 58
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 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.

10.3 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.

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 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: Desert Valley Restoration, Inc.

Attention: Scott Johnson
77833 Palapas Road,
Palm Desert, CA 92211

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.

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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 shall be 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 contained 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. 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.

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

11.10 Compliance with Economic Sanctions in Response to Russia's Actions in Ukraine. When funding for the services is provided, in whole or in part, by an agency controlled of the State of California, Consultant shall fully and adequately comply with California Executive Order N-6-22 (“Russian Sanctions Program”). As part of this compliance process, Consultant shall also certify compliance with the Russian Sanctions Program by completing the form located in Exhibit “C” (Russian Sanctions Certification), attached hereto and incorporated herein by reference. Consultant shall also require any subconsultants to comply with the Russian Sanctions Program and certify compliance pursuant to this Section. [SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND DESERT VALLEY RESTORATION, 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: _______________________________ 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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03/12/2025 1E
3/13/2025
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EXHIBIT “A”

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

A. Contractor shall furnish labor, materials, and equipment to perform restoration services that are needed due to water damage, fire or smoke damage, sewer leaks, mold, lead, asbestos or environmental remediation or other unanticipated restoration (Work) need in City facilities. The scope of Work shall include repair, remediation, water extraction and removal and disposal of contaminated materials, carpentry, demolition, drywall, concrete block, stucco, asphalt, finishes and other work normally under the supervision of a general construction contractor. Remediation services shall include, but are not limited to:

1. Sewage clean-up and remediation

2. Contents manipulation – moving, removal, inventory, pack out and temporary on site or permanent off-site disposal of contents from the area including but not limited to furniture, appliances, electronics etc.

3. Contents drying and treatment – including but not limited to sterilization, sanitization, deodorization etc.

4. Upholstery cleaning

5. Structural drying and/or floor drying (wood, carpet, and vinyl)

6. Floor, carpet and rug cleaning, disinfecting and sanitizing

7. Deodorize/odor removal

8. Antimicrobial treatment

9. Structural dehumidification

10. Drying equipment monitoring – if it is necessary to leave drying equipment on site, professional shall return to the site at regular time intervals, preferably every twenty-four hours, to monitor the equipment and affected area.

11. Mold remediation

12. Disposal shall also include appropriate photo documentation, and record keeping. This shall include project estimation and budgeting work.

B. Contractor shall be responsible for setting up proper site protection prior to commencing services, as well as daily clean-up following completion of work.

1. The Contractor shall solely be responsible for correcting any damages caused by on site work, due to improperly protecting property.

C. Response time: Contractor shall respond to calls for service as follows:

1. Contractor shall respond to department within 48 hours from the request of work.

2. Request for proposals shall be provided within 7 days from the initial request for planned projects.

3. Contractor shall have sufficient resources to respond to multiple requests for work simultaneously. Dispatching crews to each project which may have overlapping timelines.

D. Contractor shall have weekly written communication with the Project Manager to provide project updates and provide forthcoming schedule updates Docusign Envelope ID: DEE32263-21D2-4C0D-818D-FF06852EDAFD Item 1I - Page 63
E. Correction of work deficiencies:

1. Contractor shall correct work rejected by the City as failing to conform to the requirements in the project documents within thirty days. The Contractor shall bear the cost of correcting such rejected work, including the costs of uncovering, replacement, and additional testing.

2. If the Contractor fails to commence correction of nonconforming work within a seven-day period after written notice, the city may correct the deficiencies by other means. In such case, the City may exercise rights and remedies as provided in section 9.4 of agreement.

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

F. 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 responsible for securing any and all permits as required by the governing authority. The City shall reimburse the Contractor for only the actual cost of said permits.

G. 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 classification and/or assigned trade person. Mechanical or other equipment used for Work must be of 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 employees or other persons or damage to the building structure, fixtures, furnishings, etc. The City, at its sole and absolute discretion, 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.

H. General safety requirements: The Contractor shall be responsible for all safety precautions required in connection with their work, including regulations of the Occupational Safety and Health Administration (OSHA) and other governing agencies. The City reserves the right to oversee all service work from a safety standpoint and require the Contractor to take appropriate action to ensure safety and code compliance.

I. Damages: Necessary precautions shall be taken at all times to protect persons, property and equipment from injury or damage. Any damage shall be reported, reviewed, and discussed with the facility manager.

J. Security:

1. The Contractor is responsible for ensuring all entries/exits to the work area are secure during the discharge of their duties (doors must not be propped open).

The Contractor does not have the authority and shall not grant access to any person requesting entry into the building or specific work area.

2. Any items or articles of apparent value found by the Contractor’s personnel in any areas of the building or site shall be turned over to the facility manager or onsite 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.

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K. 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 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.

L. Uniforms and vehicles:

1. The Contractor shall be required to properly 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 must abide by City’s requirements for visiting City buildings, including wearing required face coverings.

2. Contractor vehicles must display company logo and name.

M. Contractor’s employees must act in a professional manner at all times and abide by all local, state and federal laws. Contractor’s employees deemed noncompliant will be removed immediately and replaced within twenty-four (24) hours. Contractor’s employees must submit to weapons screening as directed. Contractor’s employees must be able to understand, read and communicate in English under the performance of this Contract.

1.2 Pricing:

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

B. 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 RiversideSan Bernardino-Ontario Areas.

C. The City will only pay for the items listed on the bid form, and permit 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 management, overhead, profit, onboarding training, travel, 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 subcontractors, rental of equipment/tools, and purchase of materials/supplies unless the City authorized payment of the applicable items.

1.3 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 only. All work authorized under the contract will be compensated on a time and material basis as outlined in the Invoicing Section.

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1.4 Invoicing:

Contractor will submit an itemized invoice 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 may be returned for correction before any payments to the contractor are authorized. It shall be the contractor’s responsibility to submit a correct invoice. The City shall not be responsible for payment until a correct invoice is received. The invoice shall be accompanied 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].

1.5 Special Security Requirements:

Police Department: Any personnel of Contractor assigned to perform services at the Palm Springs Police Department must pass a Criminal History Records Check (CHRC) prior to performing services at this facility. 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 card issued by another government agency.

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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)
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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 (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 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 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.

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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 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 selfinsurance 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 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 Docusign Envelope ID: DEE32263-21D2-4C0D-818D-FF06852EDAFD Item 1I - Page 71
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.

Docusign Envelope ID: DEE32263-21D2-4C0D-818D-FF06852EDAFD Item 1I - Page 72
Docusign Envelope ID: DEE32263-21D2-4C0D-818D-FF06852EDAFD Item 1I - Page 73

CITY COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2025 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 5 TO CONTRACT SERVICE AGREEMENT NO. A9232 WITH VERDE JANITORIAL SERVICES FOR VARIOUS CITY

FACILITIES
FROM: Scott C. Stiles, City Manager
BY: David McAbee, Director of Public Works
SUMMARY:

This action authorizes Amendment No. 5 to Agreement No. A9232 with Verde Facilities Services LLC to update service locations by adding new weekly sites, exercise the first contract extension term, and apply the Consumer Price Index (CPI) adjustment for the Riverside/San Bernardino/Ontario region, for a total contract amount not to exceed $3,491,536.

RECOMMENDATION:

1. Approve Amendment No. 5 (Attachment A) to Agreement No. A9232 with Verde Facilities Services LLC for an additional amount of $970,483, for a revised contract amount not to exceed $3,491,536 for janitorial services for various City facilities.

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

BUSINESS PRINCIPAL DISCLOSURE:

According to the Public Integrity Disclosure Form (Attachment B), Verde Facilities Services LLC is registered in the state of Arizona.

BACKGROUND:

On November 10, 2022, the City Council approved Agreement No. A9232 (Attachment C) with Verde Janitorial Services LLC, for an initial three-year term commencing December 12, 2022, and continuing through December 11, 2025, with two one-year extension options, following the competitively solicited Request for Proposal (RFP) No. 03-23 for a total amount not to exceed $2,236,428. Since that time, the agreement has been amended to address both expanded and varying service needs.

Item 1J - Page 1
City Council Staff Report
October 22, 2025-- Page 2
Approve Amendment No.5 to Agreement A9232 with Verde Janitorial Services On March 1, 2023, Amendment No. 1 (Attachment D) modified the Scope of Services, Schedule of Fees, and Schedule of Performance to provide additional Downtown trash and recycling services by adding the pick-up and disposal of 24 additional bins, seven days per week, increasing the contract by $52,920 to a revised total contract amount of $2,289,348.

On May 25, 2023, the City Council approved Amendment No. 2 (Attachment E), executed on June 13, 2023, modifying the scope of services to added quarterly carpet cleaning at Desert Highland and bi-annual carpet cleaning at various City facilities for an additional amount of $136,296, for a revised total not to exceed amount of $2,425,644.

On January 23, 2024, Amendment No. 3 (Attachment F) was entered into to add janitorial services at 3111 E. Tahquitz Canyon Way (City Hall Annex, formally CVEP), to include bi-annual carpet cleaning, for an additional amount of $55,500, bringing the total not to exceed amount to $2,481,144.

Most recently, Amendment No. 4 (Attachment G) was entered into on June 3, 2024, providing additional services and further modifying the scope of work to add janitorial services for five restrooms and one kitchen at 3111 E. Tahquitz Canyon Way (City Hall Annex, formally CVEP) for an additional amount of $39,909, resulting in a revised total contract amount not to exceed $2,521,053.

STAFF ANALYSIS:

This amendment implements the Consumer Price Index (CPI) adjustment of 3.5% to the unit prices and exercises the first one-year extension term, incorporates new service locations at Desert Highland Basketball Courts, the temporary Library at Rimrock, and summer events at the Pavilion and the Cultural Center, for an additional amount of $987,256. The amendment also eliminates services for the Main Library, Main Library Carpet Cleaning, and Fleet Operations which are no longer required, for a reduction of $16,773 for the current contract year three.

Staff are requesting approval of Amendment No. 5 with Verde Janitorial Services in the amount of $970,483 for a revised contract not to exceed amount of $3,491,536 through December 11, 2026, for janitorial services of various City facilities.

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 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 that will not Item 1J - Page 2
City Council Staff Report
October 22, 2025-- Page 3
Approve Amendment No.5 to Agreement A9232 with Verde Janitorial Services result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports the City Council strategic plan to provide quality, well maintained infrastructure and facilities.

FISCAL IMPACT:

Sufficient funds are budgeted and available in the current Fiscal Year 2025-26, Facilities Maintenance Account 5206570-40105.

REVIEWED BY:

Assistant Director of Public Works: Daniel Martinez
Director of Public Works: David McAbee
Procurement & Contracting Manager: Tabitha Richards
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:

A. Amendment No. 5 to A9232
B. Public Integrity Disclosure
C. Contract Service Agreement A9232
D. Amendment No. 1
E. Amendment No. 2
F. Amendment No. 3
G. Amendment No. 4
Item 1J - Page 3

ATTACHMENT A
Item 1J - Page 4
55575.18100\42913029.1