Palm Springs City Council
August 26, 2026

3.3.5 Contractor agrees to require its insurer to modify insurance endorsements to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the endorsements. Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Contractor’s obligation to ensure timely compliance with all insurance submittal requirements as provided in this Agreement.

3.3.6 Contractor agrees to ensure that subcontractors, and any other parties involved with the Project who are brought onto or involved in the Project by Contractor, provide the same minimum insurance coverage required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the Project will be submitted to the City for review.

3.3.7 Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any insurance requirement in no way imposes any additional obligations on the City nor does it waive any rights in this or any other regard.

3.3.8 Contractor shall provide proof that policies of insurance required in this Agreement, expiring during the term of this Agreement, have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. Endorsements as required in this Agreement applicable to the renewing or new coverage shall be provided to City no later than ten (10) days prior to expiration of the lapsing coverage.

3.3.9 Requirements of specific insurance coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements, or as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

3.3.10 The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impair the provisions of this section.

3.3.11 Contractor agrees to provide immediate notice to City of any claim or loss against Contractor arising out of the Work performed under this Agreement and for any other claim or loss which may reduce the insurance available to pay claims arising out of this Agreement. City assumes no obligation or liability by such notice, but has the right (but not

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the duty) to monitor the handling of any such claim or claims if they are likely to involve City, or to reduce or dilute insurance available for payment of potential claims.

3.3.12 Contractor agrees that the provisions of this section shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages resulting from the Contractor’s activities or the activities of any person or person for which the Contractor is otherwise responsible.

3.4 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 such requirements are waived in writing by the City Manager or his designee due to unique circumstances.

3.5 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:

1. "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).

2. "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).

3. "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.

4. 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.

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In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies. All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.
4 BREACH OF CONTRACT
Any of the following acts if committed by Contractor during the performance of this Agreement shall be considered a material breach of this Agreement:

4.1 Nonpayment of City any business license fees, VTACR fees, or any other fees required by this Agreement or the Palm Springs Municipal Code.

4.2 Failing to comply with any provision of this Agreement or breach of any rules, regulations, or conditions provided in this Agreement or the Palm Springs Municipal Code.

4.3 Violation of any federal, state or local law by Contractor, any person having any ownership interest in Contractor, or any employee of Contractor.

4.4 Failing to maintain a satisfactory level of service to the City or the public.

4.5 Failing to keep any vehicle towed at the request of the Department in safe condition and good repair.

4.6 Failing to use distinctive coloring, monogram, or insignia on the vehicle.

4.7 Any deviation from the schedule of rates set forth in this Agreement without prior approval of the Chief of Police.

4.8 Passing on, or refusing, for any reason, a tow assignment from the Department three or more times in any calendar month.

4.9 Allowing the insurance coverage required herein to either be withdrawn or lapse or to no longer be in force for any reason.
5 ACTS OR OMISSIONS OF REPRESENTATIVES
It is understood and agreed by the parties that the acts and/or omissions of the owner(s), officers, operators, officials, employees, agents, and representatives of Contractor in the performance of the services and obligations under this Agreement shall constitute the acts and/or omissions of Contractor.
6 ENFORCEMENT OF AGREEMENT

6.1 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as 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

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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.

6.2 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.

6.3 Default of Contractor. Contractor’s failure to comply with any provision of this Agreement shall constitute a default.

6.3.1 If the City Manager, or his designee, determines that Contractor is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Contractor in writing of such default.

Contractor shall have ten (10) days, or such longer period as City may designate, to cure the default by rendering satisfactory performance. In the event Contractor fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Contractor shall be liable for all reasonable costs incurred by City as a result of such default. Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing shall limit City’s right to terminate this Agreement without cause under Section

5.3. 6.3.2 If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of the preceding subsection, take over the work and prosecute the same to completion by contract or otherwise. The Contractor shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the charges as otherwise allowed herein (provided that the City shall use reasonable efforts to mitigate such damages). The City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated. The withholding or failure to withhold payments to Contractor shall not limit Contractor’s liability for completion of the Services as provided in this Agreement.

6.4 Waiver. No waiver of any provision of this Agreement shall be effective unless

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in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions.

6.5 Rights and Remedies 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 and 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.

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

6.7 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. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty (30) days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding. 7 COMPLAINT PROCESS; TERMINATION FOR VERIFIED COMPLAINTS

7.1 Acknowledgement of Complaint Procedure. Contractor hereby acknowledges and agrees that its performance under this Agreement shall be subject to the City Police Department’s (the “Department”) internal complaint and grievance procedure (the “Complaint Procedure”), which permits members of the public to submit complaints concerning Contractor’s provision of towing and storage services.

7.2 Investigation and Recordkeeping. The Department shall have the sole discretion to receive, investigate, and evaluate complaints submitted under the Complaint Procedure. The Department shall maintain records of all complaints, including findings as to whether any complaint is determined to be verified and meritorious.

Contractor shall cooperate fully with any inquiry or investigation undertaken by the Department in connection with such complaints, including the production of records and the reasonable availability of personnel for interviews.

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7.3 Grounds for Termination. The receipt of verified and meritorious complaints, in such number or nature as the Department reasonably determines evidences a pattern of misconduct, substandard performance, or other failure to comply with the terms of the Agreement or applicable law, shall constitute grounds for termination of this Agreement pursuant to Section 11.82.150 of the City of Palm Springs Municipal Code.

7.4 Reservation of Rights. Nothing herein shall be construed to limit or restrict the City’s authority under Section 11.82.150 of the City of Palm Springs Municipal Code, or any other provision of this Agreement, to suspend, revoke, or terminate this Agreement or to exercise any other remedy available at law or in equity. 8 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. All notices shall be personally delivered, sent by pre-paid First Class U.S. Mail, registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission. All notices shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Any notice, request, demand, direction, or other communication sent by facsimile must be confirmed within forty-eight (48) hours by letter mailed or delivered. Other forms of electronic transmission such as e-mails, text messages, and instant messages are not acceptable manners of notice required hereunder. Notices or other communications shall be addressed as follows:

To City: City of Palm Springs
Attention: City Manager & City
Clerk
3200 E. Tahquitz Canyon Way
Palm springs, California 92262
Telephone: (760)323-8204
Facsimile: (760) 323-8332
To Contractor: Mohica Towing Inc.

Attention: Jesse Mojica
4785 Camino Parocela
Palm Springs, CA 92262
Telephone: (760) 324-1414
Facsimile: (760) 778-0072
9 CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION

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

9.2 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

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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 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.

9.3 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 7.05.02, including without limitation the provision of benefits, relating to non-discrimination in city contracting. 10 SEVERABILITY
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless. 11 INTEGRATION
This Agreement constitutes the entire agreement between the Parties and supersedes 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. 12 AMENDMENT
No modification, amendment, addition to, deletion, or alteration of the terms of this Agreement, whether written or oral, shall be valid unless made in writing and formally approved and executed by all parties.
13 NO WAIVER

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No delay or omission in the exercise of any right or remedy available hereunder shall impair such right or remedy or be construed as a waiver. Any waiver of any default or condition hereunder must be in writing and shall not be construed as a waiver of any other default concerning the same or any other provision of this Agreement.

The waiver by City of any breach by Contractor of any of the provisions of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach or default by Contractor either of the same or a different provision of this Agreement. 14 THIRD PARTY BENEFICIARIES
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.
15 SUCCESSORS IN INTEREST
This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.
16 CORPORATE AUTHORITY
Each of the undersigned represents and warrants that (i) the Party for which he or she is executing this Agreement is duly authorized and existing, (ii) he or she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he or she is signing, (iii) by so executing this Agreement, the Party for which he or she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which the Party for which he or she is signing is bound.
17 EFFECTIVE DATE
The Effective Date of the Agreement shall be that which is entered at the top of the first page of this agreement, where upon both parties have fully executed the documents herein.

SIGNATURES ON NEXT PAGE

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SIGNATURE PAGE TO CONTRACT SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND MOHICA TOWING 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 $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

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EXHIBIT “A”

SCOPE OF SERVICES

1.1 Contractor shall perform vehicle towing, impound, and storage services as directed by the Department and in addition such other services as provided in this Agreement, and shall provide necessary storage facilities, tow services, labor, materials, equipment, machinery, and tools.

1.2. Contractor shall comply with all federal, state, and local laws, ordinances, rules, and regulations that regulate tow units and the impound, towing, storage, selling, or junking of vehicles. Specific services include, but are not limited to, towing and storage of vehicles involved in accidents or disabled for other causes (when alternate towing is either not appropriate or is not requested by the owner or operator of the vehicle) and towing and storing of vehicles which for other reasons are within the jurisdiction of the Palm Springs Police Department, including impounded/forfeited vehicles under the provisions of California Vehicle Code 14602.6 and 14607.6. Contractor shall be able to properly conduct a lien sale as outlined in Division 11, Chapter 10, Article 2, beginning with Section 22851 of the California Vehicle Code.

1.3. Contractor shall also provide the following special services to the City, at no charge to City:

1.3.1 Contractor shall participate in a monthly rotational tow schedule for VillageFest, with the department assigning a tow company each month and providing advanced notice. Contractors must maintain detailed records of all VillageFest tows, including the date, time, and storage location (if applicable), and submit a monthly report detailing all tows and any fee waivers applied
Towing services shall be provided in accordance with the City’s official towing rotation. Towing operations will commence one (1) hour and thirty (30) minutes prior to the start of VillageFest. Any vehicle remaining within the designated event boundaries may be subject to towing at the sole discretion of a Department officer, with no vehicle removed without explicit officer authorization.

Towed vehicles shall first be transported to a designated drop location, where they will remain until (30) thirty minutes past the official start time of VillageFest. If the registered owner or authorized agent claims the vehicle during this holding period, they shall be charged for one (1) hour of towing service, and all City administrative fees shall be waived. The tow operator shall be responsible for facilitating vehicle release during this time.

Once the holding period expires, all unclaimed vehicles shall be relocated to the Contractor’s storage facility, where standard storage fees shall apply. Registered owners or authorized agents of vehicles towed from VillageFest shall be charged for one (1) hour of towing service and all City administrative fees shall be waived.

After hours gate fees would apply if the owner/agent retrieves the vehicle outside regular business hours. Contractors must ensure full compliance with all recordkeeping, reporting, and operational requirements as set forth by the Department.

1.3.2 Towing services necessary to support the City’s Annual Special Events, which require street closures. On a rotational basis, as needed and determined by the Department, Contractor shall remove cars from areas within the designated boundaries, coordinating with Special Events staff and the Department.

Annual Special Events include, but are not limited to the following:

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1. Homecoming Parade

2. Pride Block Parties

3. Pride Festival

4. Pride Parade

5. Veteran’s Day Parade

6. Festival of Lights Parade

7. Tour de Palm Springs

8. Black History Parade
Contractors will be utilized on a rotational basis for each individual tow during special events. For parades, any vehicles parked along the designated parade route that require removal will also be towed on a rotational basis prior to the start of the event. Vehicles towed from special event routes requiring street closures shall be subject to standard towing and storage fees, however, all City administrative costs shall be waived.

Once the route is cleared and the parade is underway, one Contractor will remain on standby for the entirety of the event to provide tow services such as a float, vehicle, or equipment breakdown. Standby assignments will be rotated for each parade to ensure equity among all participating Contractors. The assigned Contractor shall have a tow vehicle staged within the immediate vicinity of the event to ensure a prompt response. The Department will determine standby locations and response protocols to support efficient vehicle removal while minimizing disruption to the event.

1.3.3 As-needed abatement of vehicles from private property at the direction of the City’s Code Enforcement Officers in accordance with the City’s Abandoned Vehicle Abatement Program in accordance with the terms and conditions set forth in Title 11 of the City of Palm Springs Municipal Code, “Peace, Morals and Safety”, Chapter 11.80, “Abandoned Vehicles” which is incorporated herein by reference and may be found online at: City of Palm Springs, CA ABANDONED VEHICLES.

No charge shall be assessed against City or the owner of any vehicle that is towed, stored, or dismantled under the provisions of the Abandoned Vehicle Abatement Program.

1.4. Contractor is hereby designated as an authorized official police tow service provider for City by the Chief of Police. All trucks, personnel, and equipment used by Contractor in the performance of this Agreement shall be owned by or leased to Contractor and shall be subject to all provisions and performance standards set forth herein.

1.5. Contractor acknowledges and agrees that this Agreement to provide tow services as set forth herein is non-exclusive. City intends to concurrently contract with other designated tow service providers. City shall utilize the services of each tow service provider as City, in its sole discretion, deems necessary and appropriate.

1.6. Consideration : In consideration of Contractor’s agreement to perform the services provided for herein, City agrees that throughout the term of this Agreement, Contractor shall have:

1.7. The right to tow, impound, and store vehicles at the direction of the Department, subject to the Department’s rotational call-for-service system, as it may be amended from time to time, at the Department’s sole discretion, and the right to identify itself as an official police tow service provider for City.

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1.8. Provided, however, that nothing contained herein shall deprive the owner or operator of a vehicle from requesting and receiving towing services from a person or entity other than Contractor.

1.9. Provided, however, that when, in the opinion of the Department, an emergency exists or where Contractor is either unable or unwilling for any reason to provide adequate or timely tow service, then the Department shall have the right to call other qualified tow services. Under such circumstances, the decision to call another tow service shall be at the exclusive discretion of the Department.

2. Term and Termination

2.1 This Agreement shall remain in effect for three (3) years from the Effective Date. This Agreement may be reviewed at the conclusion of the initial three (3) year period and extended for up to two (2) one (1) year periods by mutual written agreement of the parties.

2.2 Subject to the requirements of Palm Springs Municipal Code Section 11.82.150, as it may be amended from time to time, this Agreement may be cancelled, revoked, and/or suspended by City at any time during the three (3) year term, or the subsequent one (1) year optional terms, if extended, upon Contractor’s breach of this Agreement. In the event of termination for cause by City, Contractor shall be compensated for those services that have been fully and adequately completed and accepted by the Department as of the date of termination. Termination of this Agreement for cause may be considered by City in determining whether to enter into future contracts with Contractor.

2.3 This Agreement may also be cancelled without cause upon thirty (30) days written notice provided by the City or upon ninety (90) day written notice from the Contractor.

In the event that City should cancel, revoke, or suspend Contractor’s work pursuant to this Section 2.3, Contractor shall be entitled to payment for services fully and adequately provided hereunder prior to the effective date of the cancellation, revocation, or suspension. Contractor shall provide documentation deemed adequate by the Department to show the services actually completed by Contractor prior to the effective date of termination. Contractor’s sole remedy for City’s cancellation, revocation, or suspension of work pursuant to this Section 2.3 shall be the payment of funds as expressly provided in this Section 2.3.

2.4 In the event this Agreement is terminated, in whole or in part, as provided by this Section 2, City may procure, upon such terms and in such manner as it deems appropriate, services similar to those terminated.

2.5 The rights and remedies of the parties provided in this Section 2 are in addition to any other rights and remedies provided by law or under this Agreement, including, but not limited to, those rights and remedies set forth in Palm Springs Municipal Code Section 11.82.150, as it may be amended.

3. Location

3.1 All storage facilities that are utilized to store police-stored or impounded vehicles by Contractor shall be located in or within ten (10) miles of the corporate city limits of the city of Palm Springs. For purposes of measuring the ten (10) miles, distance shall be measured in driving distance.

3.2 All vehicles stored or impounded at the direction of the Department shall be

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towed, without delay, directly to Contractor’s impound and storage facilities, unless the Department or other person legally in charge of the vehicle requests that it be taken to some other location.

3.3 Any change in Contractor’s operating/facility locations shall be reported, in writing, to the Department at least thirty (30) days prior to making such change

4. Personnel

4.1 Contractor shall ensure that its employees and tow truck operators are qualified and competent employees of the company and are sufficiently trained and capable to ensure the safe and proper discharge of their service responsibilities. All tow truck operators shall be trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and recovery of the various types of vehicles serviced through the Department rotation program. Contractor shall ensure that each tow truck operator and employee providing dispatch services for Contractor participate in one (1) customer service training offered by, but not limited to, a local community college or tow industry association, at least once every two years. Completion of a TSAAC/CHP approved certification course would be considered as acceptable option.

4.2 All tow truck operators shall be required to have all necessary certificates required by the State of California to operate a tow truck, including a valid California Tow Truck Driver Certification and California Driver’s Licenses in the proper class pursuant to Vehicle Code Sections 12520 and 12804.9(b). Within ten (10) days of the Effective Date of this Agreement, and annually thereafter (within ten (10) days of the anniversary of the Effective Date of this Agreement), Contractor shall provide a list of its tow truck operators and a CHP Form 234F (Tow Operator/Driver Information) for each tow truck operator and such other executed releases and authorizations as the City may require to allow the Department to conduct a background check, including, but not limited to a State of California Department of Motor Vehicles (“DMV”) printout, and fingerprints for each tow truck operator to be utilized in Department tow program. Any subsequent employment of a new tow truck operator shall be reported in writing to the Department immediately, including submittal of the above-referenced materials.

4.3 All tow truck operators shall be required to have a safe driving record, be 18 years of age or older, and be subject to driving record and criminal background checks by the Department.

4.4 Contractor shall have an alcohol and drug program that includes, at a minimum, an alcohol and drug free workplace policy, and a tow truck operator alcohol/drugtesting program that complies with the U.S. Department of Transportation requirements to the extent allowed by law, including random alcohol and drug testing. Any tow truck operator found working under the influence of alcohol or drugs shall be immediately removed from operating a tow truck and from providing any further services pursuant to this Agreement. The alcohol and drug program shall meet the following requirements

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a. A contract with a program administrator and authorized lab certified by the U.S. Department of Transportation; and
b. Procedures and components substantially as in Part 40 of Title 49 of the Code of Federal Regulations for pre-employment; and
c. Procedures and components substantially as in Part 382 of Title 49 of the Code of Federal Regulations for rehabilitation, return-to-duty and follow up testing; and
d. Procedures and components for random testing following U.S. Department of Transportation guidelines, and additional tests as required following accidents, rehabilitation, return-to-service, and other circumstances providing reasonable suspicion to test; and
e. Monthly reports of the random testing component shall be filed with the Department by the program administrator no later than the 10th day following the end of the previous monthly reporting period; and
f. Contractor and program administrator’s alcohol and drug program records shall be made available to the Department upon request; and g. Drivers must show a valid California driver’s license at the time and place of testing; and
h. All test results are kept confidential except that the Department is authorized to receive copies for its administrative purposes, and except as otherwise authorized or required by law.

4.5 Contractor shall participate in the California Department of Motor Vehicles (DMV) Employer Pull Notice Program, or any similar program as may be approved by the Department

4.6 Contractor shall not employ in the performance of services pursuant to this Agreement any tow truck operator convicted of or having pled nolo contendere to a crime involving a stolen vehicle, stolen property, violence, drugs or moral turpitude, fraud related to the towing business, a violation of any of the provisions of Vehicle Code Section 22658, or misdemeanor or felony driving while under the influence of alcohol or drugs, or the crimes listed in Vehicle Code Section 13377.

If any tow truck operator is charged with any of the above-listed crimes, Contractor shall immediately suspend that operator from duties under this Agreement pending the outcome of the criminal case.

4.7 Tow truck operators shall maintain acceptable standards of dress, including uniforms, and cleanliness while on duty in the community.

4.8 Tow truck operators shall fully cooperate with and abide by the instructions of the Department’s officers.

4.9 If any tow truck operator becomes ineligible to provide operator services under t his Agreement, Contractor shall immediately notify the Department in writing of such ineligibility and the reason(s) therefore.

4.10 If requested by the Department, all tow truck operators shall obtain from the Department a clip-on identification tag, which such operator shall wear at all times when performing services pursuant to this Agreement in order to allow ease of tow truck operator identification.

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4.11 While involved in the Department rotation tow operations or related business, Contractor and its employees shall refrain from any act(s) of misconduct, including but not limited to, any of the following enumerated acts. At the sole discretion of the Police Chief or his/her designee, non-compliance with this section may constitute grounds for disciplinary action.

4.12 Rude or discourteous behavior.

4.13 Lack of service, selective service, or refusal to provide service which Contractor should be capable of performing.

4.14 Any act of sexual harassment or sexual impropriety.

4.15 Unsafe driving practices.

4.16 Exhibiting any objective symptoms of alcohol and/or drug use.

4.17 Appearing at the scene of a Department rotation tow call with the odor of an alcoholic beverage or cannabis emitting from his/her breath. The truck operators shall submit to a preliminary alcohol and/or cannabis screening test upon demand of the Department.

5. Tow Service Duties
After being dispatched to the scene by the Department, Contractor shall comply with the following:

5.1 Not move nor attach a tow truck to any vehicle until instructed to do so by the investigating officer of the Department;

5.2 Cooperate with the investigating officer of the Department in removing hazards and/or illegally parked vehicles, and in the storing or impounding of such vehicles as requested. It is the duty of the police officers to determine when a vehicle should be impounded or moved, and the tow truck attendant shall abide by their decisions;

5.3 On collision calls, clean-up and remove all debris from the accident scene, including, but not limited to, clean-up and removal of all hazardous materials/vehicle fluids in the street with absorbent material, as directed by Department officers and Section 27700 of the California Vehicle Code.

5.4 Provide the owner or driver of towed vehicles (when present at scene) with an Contractor business card indicating where vehicle will be stored or impounded (including address and telephone number); and

5.5 Deliver upon request all personal property located within stored or impounded vehicles upon: (a) presentation of proper identification; and (b) in the case of impounded vehicles, written authorization by the Department.

6. Response to call and response time

6.1 Contractor shall be placed on a “rotation list” in an initial order to be determined by the Police Chief. The rotation list shall be used whenever a driver or owner of a disabled vehicle is unable to specify a particular garage or tow service, or whenever a Department employee stores or impounds a vehicle and the driver or owner is not present or is not consulted.

6.2 Contractor shall be called in response to a Department request upon the occurrence of its turn in rotation. Whenever Contractor cannot, for any reason, respond with any equipment needed to accomplish the requested service within

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the response time specified herein, it shall be passed over and the next official police tow service provider on the list will be called. Contractor shall become eligible to provide service again only in its next turn in rotation. Whenever a Department employee determines that an emergency exists because Contractor is unable, for any reason, to provide adequate tow service, the Department employee shall have the right to have such services performed by any other means available. In the event a Department employee cancels a rotation tow due to no fault on the part of the Contractor, Contractor shall be placed on the top of the rotation list for the next requested tow.

6.3 When Contractor will be temporarily unavailable to provide services due to a preplanned/scheduled activity (i.e., vacations, maintenance, medical leave, etc.), Contractor shall notify the Department at least twenty-four (24) hours prior to the date that services will be unavailable, noting times and dates of the unavailability.

6.4 When responding to a Department call, Contractor shall perform the towing or service required for which it was called. This requirement may be waived by the Department officer in charge, if the requested equipment is inadequate for the service to be performed; provided, however, if Contractor supplies the wrong equipment, it shall be placed upon the bottom of the Department rotation list.

6.5 Contractor shall not respond to a Department call assigned to another official police tow service provider unless requested to do so by the Department. If the Contractor responding to a Department call requires the assistance of an additional tow truck at the scene, Contractor may, subject to the prior approval of the Department officer in charge, request the official police tow service provider next on the Department rotation list to assist it.

6.6 Contractor’s dispatcher shall notify the Department when a tow vehicle cannot respond immediately, give the reason for the delay, and an estimated time of arrival. In the event of an additional delay, Contractor’s dispatcher shall again notify the Department and give the new estimated time of arrival. To ensure a timely response, the Department, in its sole discretion, may cancel any call-forservice because of a response delay and may request service from the next official police tow service in the rotation.

6.7 If the Contractor’s telephone or radio is not promptly answered, or if the line is busy when called by the Department after two (2) attempts, Contractor will be bypassed, and the Department shall select the next official police tow service provider in the rotation.

6.8 If, while rendering assistance in response to a Department call for towing, a second Department call for towing is generated to Contractor’s operator, Contractor shall, before responding to the second call, ensure that all vehicles at the first site are sufficiently clear of the roadway so that no obstruction to normal traffic exists. Once the second call is handled to conclusion, the vehicles at the first site may be towed as necessary.

6.9 Contractor agrees that, for any thirty day period, the average response time pursuant to requests for tow service by the Department within the City of Palm Springs shall not exceed fifteen minutes. Contractor also agrees that the maximum response time for any single request for tow service by the Department shall not exceed twenty minutes.

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7. Equipment Standards

7.1 Contractor shall equip and maintain tow trucks covered under the Agreement in accordance with the provisions set forth in the California Vehicle Code, Title 13 of the California Code of Regulations, the specifications contained in this Agreement, and in a manner consistent with industry standards and practices.

7.2 All recovery vehicles (wreckers) shall have an extendable/retractable recovery boom meeting the specifications contained in this Agreement, and the most recent electronic version of the CHP 234B, Tow Truck Inspection Guide.

7.3 An operator who has a car carrier is exempted from the recovery, wheel lift, and boom capability requirements. However, the car carrier must be an additional unit and shall not be used for recovery.

7.4 An auto-loader without an extendable/retractable boom is an additional unit and shall not be used for recovery.

7.5 For purposes of the Agreement, recovery is defined as a vehicle, which is overturned, down an embankment, or otherwise not upright on its wheels.

7.6 A violation of the gross vehicle weight rating (GVWR) and/or safe loading requirements of a tow truck should be cause for immediate suspension. This includes exceeding the tow truck’s GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck’s unloaded front axle weight on the front axle when towing.

7.7 There are two (2) classes of tow trucks covered under this Agreement a. Class A- Light Duty: Contractor shall maintain a minimum of one tow truck, which has a manufacturer’s GVWR of at least 14,000 pounds. Class A 4- wheel drive tow trucks with a GVWR of less than 14,000 pounds may be listed as special equipment on the 234A. These tow trucks shall be used only for recoveries requiring the use of 4-wheel drive.
b. Class B - Medium Duty: Contractor shall maintain a minimum of one tow truck with a GVWR of at least 33,000 pounds. The truck shall be equipped with air brakes and a tractor protection valve or device, and be capable of providing and maintaining continuous air to the towed vehicle.

7.8 For purposes of the Agreement, a “low-boy trailer” is considered special equipment.

8. General Equipment Specifications

8.1 Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis GVWR and the classification system used by the American Trucking Association and truck manufacturers. Tow truck and car carrier classifications shall meet all applicable state and/or federal standards.

8.2 Identification Labels: Each piece of towing equipment shall have a manufacturer’s label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity.

8.3 Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can lift in a winching mode, when the boom is static at a 30-degree elevation with the load lines vertical and the lifting cables sharing the load equally, measured with a live load (weight or load cell).

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8.4 The structural design of the recovery equipment must have a higher load capacity than the performance ratings.

8.5 Winches shall conform to, or exceed, the specifications set forth by the Recovery Equipment Rating, Society of Automotive Engineers (SAE) Handbook, and SAE J706.

8.6 All ratings for wire rope and chain assemblies are for the undamaged assembly condition. All wire rope and chain assemblies should be the same type, construction, and rating as specified by the original equipment manufacturer.

8.7 Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions.

9. Communications and Operational Requirements

9.1 Contractor shall maintain a twenty-four (24) hour per day telephone answering service to receive calls from the public and the Department.

9.2 Contractor shall require its telephone answering service to retain data and records relating to the City’s requests for towing services on premises for the term of this Agreement.

9.3 Contractor shall require its answering service to promptly accept and relay requests for towing services made by the City. Failure or refusal to promptly relay the City’s requests for towing services shall constitute failure to comply the requirements, terms and conditions of this Agreement and may result in suspension or termination of the Agreement.

9.4 Contractor shall install and maintain, to the satisfaction of City, at all times during the term of this Agreement, radio or cellular telephone transmission and reception contact between the Contractor communication contact shall be maintained twenty-four (24) hours a day, seven (7) days a week.

9.5 Contractor shall provide to the Department a list of telephone numbers to be called in order of priority, and immediately upon any change in such telephone numbers or in the priority thereof shall notify the Department in writing with the effective date of such change.

9.6 Contractor’s business office shall be located within its storage yard and attended at all times for servicing the public and the City from 8:00 a.m. to 5:00 p.m., Monday through Friday, except for the holidays of January 1, known as New Year’s Day; third Monday in January, known as Dr. Martin Luther King Jr.’s Birthday; third Monday in February, known as Washington’s Birthday/President’s Day; last Monday in May, known as Memorial Day; July 4, known as Independence Day; first Monday in September, known as Labor Day; the second Monday in October, known as Columbus Day; November 11, known as Veteran’s Day; fourth Thursday in November, known as Thanksgiving Day; and December 25, known as Christmas Day. If January 1, July 4, November 11 or December 25 fall upon a Sunday, the Monday following is a holiday and if they fall upon Saturday, the preceding Friday is a holiday. Contractor may make an additional charge for after normal business hours release of vehicles consistent with the guidelines or provisions of the City Council resolution establishing fees and charges for tow services.

9.7 Contractor shall provide twenty-four (24) hour towing service, seven (7) days a week, during the term of this Agreement.

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9.8 Contractor shall ensure that there will be an employee on call capable of being present or available for releasing impounded or stored vehicles to the public twenty-four (24) hours a day, seven (7) days a week.

10. Vehicle Identification

10.1 Contractor’s vehicles shall display identification signs, in compliance with Section 27907 of the California Vehicle Code. Contractor shall not display any signs or advertising that indicate the Contractor is an official towing service or police garage of the City.

10.2 Contractor shall not, through their advertisements or otherwise, in any way publicize any official or other business connection with City, nor shall Contractor advertise any address or telephone number of the City as a location to call for vehicle towing and storage service.

11. Storage service responsibilities

11.1 Contractor shall be responsible for all vehicles, accessories, and equipment thereon, and all personal property therein, stored by it. It shall be Contractor’s duty to protect such stored vehicles, accessories, equipment, and property against all loss, damage by fire, theft, or other causes. In the event of loss or damage to a stored vehicle, its accessories or equipment, or personal property contained in the vehicle, Contractor shall be responsible to the owner for all losses or damages.

11.2 Contractor shall be responsible for the acts and omissions of its employees while on duty. Contractor shall be responsible for any property damage caused by the active or passive negligence of Contractor or its employees.

11.3 Contractor shall abide by all federal, state, and local laws pertaining to the disposal of unclaimed vehicles and shall not use any vehicle stored or impounded as a result of tow ordered by the Department for any purpose except as expressly authorized under this Agreement .

11.4 All vehicles stored or impounded by Contractor as a result of a tow ordered by the Department shall be towed directly to an official storage lot, unless the Department or other person legally in charge of the vehicle requests that it be taken to some other location. Vehicle release fees shall be limited to those established by resolution of the City Council of the City of Palm Springs.

11.5 Contractor shall release vehicles stored or impounded by the Department pursuant to authorization provided by appropriate employees of the Department. Such authorization shall be in writing on a form provided by the Department or may be given verbally by employees authorized by the Department to provide verbal releases.

11.6 All vehicles stored or impounded as a result of a tow ordered by the Department shall be made available during business hours to the owner of the vehicle or his representative, or any authorized insurance agent, insurance adjuster, or any body shop or car dealer, for the purpose of estimating or appraising damages, except vehicles with a “police hold”.

11.7 Personal property in vehicles stored by Contractor shall not be disposed of to defray any charges for the towing or storage of a vehicle; and, if not called for by the owner within thirty (30) days after date of notice by the Department of impound or storage, all such property shall be disposed of in accordance with all State, County and Municipal laws, statutes, ordinances and regulations, including without

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limitation, Vehicle Code Section 10652 (reporting storage of vehicles over thirty days).

11.8 Contractor shall take whatever actions and precautions necessary to protect the engines, trunks and interior areas of all stored or impounded vehicles against the elements by rolling up windows, closing doors, trunk lids and hoods, and, if necessary, covering the vehicle or parts thereof exposed to the weather with plastic, canvas or other waterproof covering.

11.9 Contractor shall park all stored or impounded vehicles in such a manner as to prevent any damage while other vehicles are being moved or parked in the vicinity of said vehicles.

11.10 Contractor is authorized and encouraged to take photographs of vehicles towed under this Agreement for the sole purpose of documenting the condition of the vehicle, including any damage or lack thereof, at the time of the tow. Such photographs shall be treated as confidential and may only be disclosed to the vehicle owner or other interested parties, as determined by the Department in its sole and absolute discretion. Under no circumstances shall Contractor post, publish, or otherwise disseminate such photographs—whether in print, online, through social media, or by any other means—without the prior written consent of the Department.

12. Storage Facility Standards

12.1 Contractor shall provide a secure and environmentally safe vehicle storage facility with a minimum of fifteen thousand (15,000) usable square feet.

12.2 The vehicles storage facility must be located in or within ten (10) miles of the corporate city limits of the city of Palm Springs. For purposes of measuring the ten (10) miles, distance shall be measured in driving distance.

12.3 The vehicle storage facility must be completely enclosed by a six foot high wall or fence with no holes, gaps or other unsecured openings, and a gate. The wall or fence shall have two or more strands of barbed wire installed in such a manner as to discourage access over the top of the wall or fence, or the wall shall be a minimum of eight feet in height without barbed wire. All gates into the storage yard shall meet the same standards required of the wall or fence. Any damage to walls, fences or gates which allows unauthorized access must be repaired within twenty- four hours.

12.4 The vehicle storage facility shall have adequate lighting, and comply with all applicable building codes, zoning regulations, environmental laws and regulations, and any and all the applicable laws, rules and regulations established by federal, state, county and/or city governments.

12.5 Contractor shall not perform any work in the vehicle storage facility upon any vehicle stored or impounded by the Department without first obtaining authorization from the Department and the registered owner of the vehicle.

12.6 Contractor shall not dispose of any impounded vehicle, through any process whatsoever, without first obtaining authorization from the Department. Nothing herein shall be deemed to prevent or prohibit Contractor from commencing the lien sale process on any such impounded vehicle.

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12.7 The Contractor must install and maintain a continuously recording video surveillance system, as approved by the Chief of Police or their designee. This system shall, at the minimum, monitor the entirety of indoor and outdoor vehicle storage lots, any points of ingress or egress to the establishment, and all locations within the establishment open to the public. Signage notifying the public of the presence of video surveillance at these locations shall be installed at all points of ingress. Images captured by the surveillance system shall be retained for a period of no less than thirty (30) days and must be made accessible to the Chief of Police or their designee upon request. Copies of footage shall be made available to the Chief of Police or his designee no later than two (2) business days after a request for the footage is made.

12.8 Throughout the term of this Agreement, Contractor shall maintain all offices, storage facilities and equipment in a neat, clean and organized manner.

12.9 All Contractor’s records, equipment, and storage facilities will be subject to periodic checks by the Department or other City investigators during normal business hours. Contractor shall provide access to employees of City at any time during normal business hours, for the purpose of inspection or audit to determine that the objectives and conditions of this Agreement are being fulfilled.

13. Reports and Records

13.1 Accounting 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 to enable the City to evaluate the performance of such Services. The City 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.

13.2 Reports: Contractor shall periodically prepare and submit to the City such reports concerning the performance of the Services required by this Agreement, or as the City shall require.

13.3 Ownership of Documents: All reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the City 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 of ownership of the documents and materials. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Contractor will be at the City's sole risk and without liability to Contractor, and the City shall indemnify the Contractor for all resulting damages. Contractor may retain copies of such documents for their own use. Contractor shall have an unrestricted right to use the concepts embodied in this Agreement. Contractor shall ensure that all its subcontractors shall provide for assignment to City of any documents or materials prepared by them. In the

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event Contractor fails to secure such assignment, Contractor shall indemnify City for all resulting damages.

13.4 Release of Documents. All 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 City. All information gained by Contractor in the performance of this Agreement shall be considered confidential and shall not be released by Contractor without City’s prior written authorization.

13.5 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 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.

13.6 Contractor shall comply with the following specific requirements relating to reports and records of its tow services:
a. Contractor shall record and log the time each call is received, the time of dispatch, the time of arrival, and the time in or of the end of service on every tow truck assignment Such records shall be submitted electronically with the monthly VTACR Fee payment, and available and open to City examination. b. Contractor shall maintain at its place of business, complete and accurate records of all tow services furnished under this Agreement, including a description of all vehicles towed, impounded, or stored at the request of the Department, the nature of services performed with respect to each tow for each towing assignment, and the itemized charges accrued on each vehicle for towing and storage.

13.7 Record systems must provide for immediate access, upon inquiry by the Department, to the following information.
a. Locate vehicle from the Department record number;
b. Locate vehicle from license number only
c. Locate vehicle from make, color, date, and location of impound. d. Date of filing all lien sale documents with DMV.

13.8 Contractor shall submit a monthly report to the Chief of Police and Finance Director, which shall include the following information a. Total Department impounds and storages;
b. Number of times dispatched by the Department;
c. Number of calls for service resulting in impounds;
d. Number of vehicles sold on lien sale under authority of Civil Code Section 3072, and as that law may be amended from time to time; e. Number of vehicles sold on lien sale under authority of Civil Code Section 3073, and as that law may be amended from time to time;

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f. Certification of (a) the availability of the names and addresses of buyers sand description of vehicles when sold and (b) that such names, addresses, and descriptions are available for inspection by the Chief of Police and the Finance Director; and
g. Number of calls for service answered in which time beyond one hour was required to be handled.

14. Liens and Disposals

14.1 Contractor shall provide the Department with a list of unclaimed vehicles thirty (30) days before they are scheduled to be disposed of or sold. On or before the 10th day of each month, Contractor shall furnish to the Department a list of all vehicles that have been sold at lien sales during the previous month, and date of the action. The list shall include the vehicle owner’s name, address, vehicle make, year and model, license number, VIN number, and Department record number. Copies of all lien sale documents shall be resubmitted with such list. The documents shall be dated and include all charges imposed on each sale.

14.2 Contractor shall abide by all federal, state, and local laws pertaining to the disposal of unclaimed vehicles and shall not use any vehicle stored or impounded as a result of tow ordered by the Department for any purpose except as expressly authorized under this Agreement.

15. Performance

15.1 Contractor shall perform the services required under this Agreement in an ethical, professional, and orderly manner and shall endeavor to obtain and keep the confidence of the motoring public.

15.2 Contractor’s performance of all terms and conditions set forth herein shall be monitored and verified by the Supervisor or Sergeant of the Department’s Traffic Division.

15.3 Contractor acknowledges and agrees that the minimum performance standards required under this Agreement shall include the performance standards described in the SOQ, but not be limited to, the following; a. Timely payment to City of VTACR Fee
b. Contractor shall provide payment to the City by the 10th day of each month, for the preceding month tows for all vehicle impound subject to the Vehicle Towing Administrative Cost Recovery fee.
c. Contractor shall include with each VTACR payment both a paper and electronic report of all the preceding months tows in which they collected the VTACR fee, in a format approved by the Department.
d. VTACR payment and report shall be provided to the following departments: Police
i. Timely submission of all required monthly reports.

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ii. No more than three (3) “passes” on tow assignments within single calendar month.
iii. The ability to maintain an average response time of fifteen (15) minutes or less.
iv. Successful re-inspection of equipment and facilities. v. Maintenance of an error rate of less than ten (10) percent on tow invoices, as determined by a random audit of thirty (30) tow invoices. vi. A complaint ratio involving incidents of misconduct as provided in Section 7.11 of this Agreement of not more than one (1) percent of all tow requests.

16. Inspection

16.1 Contractor acknowledges a requirement to pass one (1) annual inspection of all tow trucks utilized on Department rotation calls, in order to qualify for participation in the term of the Agreement.

16.2 Department may conduct additional inspections without notice during normal business hours.

16.3 Contractor’s operator shall not dispatch any tow truck which has not been inspected and approved by the Department.

16.4 The Department shall inspect a tow truck within thirty (30) days of a request from an operator prior to use in the Rotation Tow Program.

16.5 The intent of the inspections is to ensure Contractor is involved in an ongoing safety maintenance program for their tow trucks. The annual inspection is not intended to find out what needs to be repaired/replaced on Contractor’s tow trucks. A tow truck responding to a Department call shall be properly equipped and operating in a safe condition.

16.6 Contractor shall be provided with written notification of the failure/denial of any tow truck or equipment and allowed a hearing upon request to the Department.

16.7 All of the equipment listed on an operator’s CHP 234A shall be accounted for during the annual inspection.

16.8 Contractor shall provide a current copy of their California Air Resource Board Certificate of Reported Compliance Truck and Bus Regulation commencing July 1, 2020.

17. Special Equipment

17.1 To properly and safely tow, service, or recover the wide variety of vehicles being operated on the highway, a towing procedure may require the use of special equipment specifically designed for the purpose. This special equipment shall be listed on the Contractor’s CHP 234A and should be used when appropriate.

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17.2 All special equipment listed on the CHP 234A shall be accounted for during the annual inspection, as well as when additional equipment is added.

17.3 Any special equipment, which requires certification/inspection of the equipment and/or operator (e.g., cranes, forklifts), the applicable and current certification/inspection document shall be provided to the California Highway Patrol Area office at the time of enrollment or as equipment is added by an operator.

18. Risk

18.1 Contractor assumes all risk in the event of damage, theft, fire, or otherwise, of the vehicles or any other property towed, impounded, or stored by Contractor, its employees or agents.

18.2 Notwithstanding any other term or condition herein, in responding to a call from the Department, Contractor shall have no claim whatsoever against City or any right to recover from City for the cost of any of the services it renders in the performance of this Agreement. Contractor shall look solely and exclusively to the owner of the vehicle, towed, impounded, or stored, for payment of the services provided by the Contractor.

18.3 Contractor shall assume the entire risk of nonpayment of any service charges incurred pursuant to this Agreement.

19. Insolvency
Contractor shall not, without the prior written consent of the Chief of Police, suffer either the appointment of a receiver to take possession of all or substantially all of the assets of Contractor or make a general assignment of such assets for the benefit of creditors.

Any such action taken or suffered by Contractor under any insolvency or bankruptcy proceeding constitutes a breach of contract by Contractor and all property assigned by City for safe care shall be “released” to another assigned service provider, as specified by the Chief of Police or his or her designee, with a reimbursement for towing, storage, and related fees borne by the service provider assuming the new responsibility.

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EXHIBIT “B”

SCHEDULE OF COMPENSATION
EXHIBIT “B”

SCHEDULE OF COMPENSATION

1. Rates and VTACR Fee

1.1 In accordance with Sections 11.82.090 and 11.82.100 of the Palm Springs Municipal Code, and as authorized by California Vehicle Code Section 22850.5, the Vehicle Towing Administrative Cost Recovery (VTACR) Fee is imposed to recover the City’s actual and reasonable administrative costs associated with the enforcement, removal, storage, and release of impounded vehicles. These costs include overhead, personnel, and contract management expenses necessary to operate the official police tow services program. Pursuant to Resolution No. 25189, the City Council has reviewed and adopted a VTACR fee in the amount of $235.00 per tow, calculated based on the City's total annual administrative cost of $345,016.16.

Each official police tow services provider shall collect the VTACR fee at the time of vehicle release and remit payment to the City of Palm Springs no later than the 10th day of each month. The remittance shall include an itemized report detailing all vehicles towed under the program. The City may waive the VTACR fee in cases of abandoned vehicles, where neither the City nor the Contractor collects any towing or storage fees, and the Contractor avails itself of the Abandoned Vehicle Abatement Program, as set forth in Palm Springs Municipal Code Section 11.80.

The Tow Fee Schedule is adopted as follows:

Fee Schedule

TOWING SERVICES CHARGES HOURLY
CLASS A TOW TRUCK $230*
CLASS B TOW TRUCK $285*

STORAGE FEES DAILY
MOTORCYCLES $80
PASSENGER CARS $90
TRUCKS | TRAILERS 20' OR LESS $90
TRUCKS | TRAILERS | VEHICLES 20' TO 30' $95
TRUCKS | TRAILERS | VEHICLES 30' ABOVE $100
VEHICLE TOWING ADMINISTRATIVE COST RECOVERY $235

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OTHER RELATED FEES

ONE TIME
AFTER HOURS RELEASE / GATE FEE $100
SECONDARY / SUBSEQUENT TOW ½

ESTABLISHED

TOW RATE
*Hourly rates

1.2 When Contractor fails, neglects, or refuses to pay or remit the VTACR fee under this Section, or otherwise pays the VTACR fee, but later cancels or stops payment on it, and in either situation that payment or remittance is lawfully due or owing, the entire amount of the unpaid or non-remitted VTACR fee constitutes a debt to the City by Contractor, which the City may recover in a civil action. Failure to timely pay the VTACR shall also be deemed a material breach of this Agreement, and the City may terminate the Agreement as provided for herein.

1.3 “Dry Runs”: City shall not be liable to pay Contractor any charge whatsoever or fee for a call that does not result in a chargeable service being rendered by Contractor (i.e., a “dry run”). In the event that a vehicle towed or impounded in error due to an incorrect directive from the Department, Contractor shall, upon verification and direction by the Department, immediately release the vehicle to the registered owner without charge. Contractor shall wave all towing, storage, and administrative fees associated with the erroneous tow prior to release. Contractor shall maintain records of such waivers and provide documentation upon request by the Department.

1.4 Pursuant to Palm Springs Municipal Code Section 11.82.070(b), the City Council of the City shall establish the fee schedule for services to be provided under this Agreement. All charges for towing, impound, storage, and other services required to be performed by Contractor under the terms and conditions of this Agreement shall not exceed those charges adopted by City Council.

1.5 All rates and charges shall be conspicuously posted in the Contractor’s office and in all tow vehicles and shall be available for review by City personnel and/or persons for whom tow service is provided. All customer bills shall be itemized. It will be the Contractor’s responsibility to collect payment for services it renders under this Agreement from the motorists, and City shall not be responsible in any way whatsoever for payment of these charges.

1.6 Contractor shall accept a valid bank credit card or cash for payment of towing and storage by the registered owner, legal owner, or agent of the owner claiming the vehicle.

1.7 Department may waive the VTACR fee due to extenuating circumstances. It is not the intention of the City nor the Police Department to penalize victims.

Circumstances under which the VTACR fee may be waived include the impounding of recovered stolen or embezzled vehicles, and vehicles impounded due to driver injury or incapacitation.

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1.8 In the event that a vehicle is towed or impounded in error due to an incorrect directive from the Department, Contractor shall, upon verification and direction by the Department, immediately release the vehicle to the registered owner without charge. Contractor shall waive all towing, storage, and administrative fees associated with the erroneous tow. The Department shall provide written or electronic authorization confirming the erroneous tow prior to release. Contractor shall maintain records of such waivers and provide documentation upon request by the Department.

1.9 Whenever a motorist requests tow assistance and does not specify a particular tow company or membership agency, the service shall be assigned to the Contractor in accordance with the Department’s adopted rotational call-for-service system. All charges arising out of such assistance assigned to the Contractor shall be the exclusive responsibility of Contractor and the requesting motorist. The Department shall not be liable for any charges whatsoever arising out of a motorist assistance call. Contractor shall not charge such motorist more than the rates specified in this Agreement.

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EXHIBIT “C”
EXECUTIVE ORDER N-6-22 CERTIFICATION

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CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: CONTRACT WITH ONTARIO FIRE DEPARTMENT TO PROVIDE ENHANCED EMERGENCY MEDICAL DISPATCHING AND PREARRIVAL INSTRUCTIONS TO COMPLY WITH ASSEMBLY BILL 645 - CALIFORNIA HEALTH AND SAFETY CODE 1797.161
FROM: Scott C. Stiles, City Manager
BY: Fire Department
SUMMARY:

The Palm Springs Fire Department and the Palm Springs Police Department are seeking approval to enter into a contract with Ontario Fire Department to provide emergency medical dispatch and pre-arrival instructions in accordance with Assembly Bill 645.

AB 645 requires, by January 1, 2027, any public safety agency that provides 911 call processing services for emergency medical response to provide pre-arrival medical instructions to 911 callers requiring medical assistance, including, among other things, airway and choking medical instructions for infants, children, and adults and administration of naloxone for narcotics overdoses. Compliance with this bill is mandated by January 1, 2027. Given space, staffing, and technology limitations, we are unable to meet this requirement utilizing our current dispatch center. By entering into this contract, staff will have time to research, evaluate and determine what steps would need to be implemented to provide this enhanced service in-house, while still meeting the deadline.

Ontario has provided an agreement (Attachment A) that would charge $40 a call for processing. Based on our current call volume of 8,000 - 10,000 calls that would require this service (not all calls will have to be sent), we are budgeting between $300,000 - $400,000 annually.

RECOMMENDATION:

Approve agreement with Ontario Fire Department to provide enhanced emergency medical dispatching and pre-arrival instructions, included as Attachment A.

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City Council Staff Report
August 26, 2026 -- Page 2
Agreement for Medical Emergency Dispatching and Communication Services BUSINESS PRINCIPAL DISCLOSURE:

N/A.

BACKGROUND:

By January 1, 2027, a public safety agency that provides 911 call processing services for emergency medical response shall provide pre-arrival medical instructions to 911 callers requiring medical assistance, including, at a minimum, all of the following:

1. Airway and choking medical instructions for infants, children, and adults.

2. Automatic external defibrillator (AED) and CPR instructions for children and adults.

3. Childbirth.

4. Bleeding control and hemorrhage.

5. Administration of epinephrine by auto-injector for suspected anaphylaxis.

6. Administration of naloxone for suspected narcotics overdoses.

STAFF ANALYSIS:

The Palm Springs Dispatch Center is unable to provide this service by the January deadline to the Fire Department for several reasons:
• The current size of the dispatch center is unable to accommodate additional staff required to provide this new service.
• The current staffing is not sufficient to provide this service with five (5) vacancies. • Additional training would be required to provide pre-arrival instructions per Riverside County Protocol would exceed the January 2027 deadline.

Our intent is for our Dispatch Center to provide this service in the future, but the items mentioned above will take time to research, evaluate and plan. Ontario Fire Department can provide this service with little to no change to our current process, similar to the service they provide to the City of Corona. All 911 calls will still be processed through our dispatch center. Our response times will not be affected. After our dispatchers assign units to the call, they will transfer medical calls to Ontario Fire Department for emergency medical dispatching and pre-arrival instructions.

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. According to Section 15378(b), a "Project" does not include: (5)

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City Council Staff Report
August 26, 2026 -- Page 3
Agreement for Medical Emergency Dispatching and Communication Services Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the following City Council Strategic Plan Broad Goal: Public Safety and Community Services.

FISCAL IMPACT:

Between $300,000 and $400,000 will be required annually based on call volume and a one-time cost not to exceed $150,000 for start-up costs including integrations, processes and procedure development. This expense will be offset by the freezing of two (2) vacant dispatch positions.

REVIEWED BY:

Department Director: Paul Alvarado
City Manager: Scott Stiles
ATTACHMENTS:

A. Ontario Fire Department Agreement

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ATTACHMENT A
Agreement

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FIRE DISPATCH AND EMERGENCY COMMUNICATIONS SERVICES AGREEMENT BETWEEN THE CITY OF

ONTARIO AND THE CITY OF PALM SPRINGS

1. PARTIES AND DATE
This Fire Dispatch and Emergency Communications Services Agreement (“Agreement”) is entered into on January,1 2027 (“Effective Date”) by and between the CITY OF ONTARIO, a municipal corporation (hereinafter referred to as “ONTARIO”) and the CITY OF PALM SPRINGS, a municipal corporation (hereinafter referred to as “PALM SPRINGS”) on a 24-hour-per-day basis. ONTARIO and PALM SPRINGS are hereinafter sometimes referred to individually as “Party” and collectively as “Parties”.

2. RECITALS

2.1 The Ontario Fire Department has experience, capabilities, and unique expertise relating to fire dispatching and emergency communications.

2.2 The Ontario Fire Department is an Accredited Emergency Medical Dispatch Center through the National Academies of Emergency Medical Dispatching.

2.3 PALM SPRINGS desires that ONTARIO provide fire dispatching and emergency communications services to PALM SPRINGS on a 24-hour-per-day basis.

2.4 The Parties are authorized to enter into this Agreement pursuant to Section 55632 of the California Government Code.

2.5 The Parties desire by this Agreement to establish the terms for which ONTARIO will provide fire dispatching and emergency communications services.

3. TERMS AND CONDITIONS

3.1 General Dispatch and System Requirements
ONTARIO agrees to provide fire dispatching and emergency communications service to PALM SPRINGS on a 24-hour-per-day basis, as more particularly described in Exhibit “A” attached hereto and incorporated herein by reference (“Fire Dispatch Services”).

3.1.1 Responsibilities of ONTARIO. ONTARIO shall bear the following responsibilities in addition to the requirements as outlined in Exhibit “A”, attached hereto and incorporated herein by this reference.

3.1.1.1 ONTARIO shall answer PALM SPRINGS emergency telephone lines, dispatch appropriate apparatus and personnel, maintain radio or telephone contact with such apparatus and personnel during emergency incidents, and provide supportive communications during non-emergency periods.

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3.1.1.2 ONTARIO shall maintain Emergency Medical Dispatch (EMD) accreditation through the National Academies of Emergency Medical Dispatch and provide EMD, when possible, on all medical aid calls for PALM SPRINGS. ONTARIO communications personnel will evaluate the need for immediate care through pre-arrival instructions to patients or callers before the arrival of PALM SPRINGS or emergency first responders.

3.1.1.3 ONTARIO shall notify PALM SPRINGS of any intended communications system technological enhancements and shall further work with PALM SPRINGS in implementing such enhancements. The final decision to secure new or improved communications system equipment for ONTARIO’s Fire Communications Center shall, however, rest solely with ONTARIO.

3.1.1.4 ONTARIO will maintain the Dispatch Review Committee and Dispatch Steering Committee which meet quarterly. These committees are a requirement of the National Academies of Emergency Medical Dispatching and provide medical dispatch system oversight and policy approval for the Ontario Communications Division. Both committees will have a representative from the PALM SPRINGS Fire Department as designated by the PALM SPRINGS Fire Chief.

3.1.2 Responsibilities of PALM SPRINGS. PALM SPRINGS shall bear the following obligations in addition to the obligations as outlined in Exhibit “B”, attached hereto and incorporated herein by this reference.

3.1.2.1 PALM SPRINGS will share their GIS layers regularly as determined by ONTARIO, including their fire pre-plans and premise information, and their own run-cards as a contingency in the event Automated Vehicle Location (AVL) dispatching is down.

3.1.2.2 PALM SPRINGS shall maintain its present communications system in such a condition as to be compatible with the communications system used by ONTARIO. The term “communications system” shall include radio, telephone and computer hardware, as well as connecting lines, frequency channels, switching equipment, satellite receivers, alert receivers, microwave equipment, alerting systems, papers, repeater sites, computer software, CAD printers, and associated equipment that is integrated with dispatch services. PALM SPRINGS communication system repair, maintenance, and sustainment is the sole responsibly of PALM SPRINGS. Exhibit “C”, attached hereto and incorporated herein by this reference, identifies the means and manner for PALM SPRINGS to obtain call-when-needed IT Support Services from ONTARIO.

3.1.2.3 PALM SPRINGS shall maintain a similar dispatching, reporting, and communications format as used by ONTARIO Fire Department and decided by the Dispatch Steering Committee, with reasonable discretion for deviation upon

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mutual agreement by each party’s Representative identified in Section 3.7. Any such deviation must not have an adverse impact on the other agency or any element of the “communications system.”

3.1.2.4 PALM SPRINGS agrees to provide and maintain standardized operational procedures.

3.1.2.5 PALM SPRINGS agrees to generate and disseminate all emergency mass notifications (reverse 911), evacuation notices, press releases and handle all media inquiries relevant to this Agreement and PALM SPRINGS incidents and calls for service. Any urgent personnel or operational issues may be addressed to the on-duty ONTARIO Fire Communications Center Supervisor. Non-urgent issues should be directed to the ONTARIO Fire Communications Center Manager.

3.1.3 It is the intent of the Parties that this Agreement pertain solely to fire dispatch and emergency communications services.

3.2 Costs and Billing

3.2.1 Start-Up Costs
PALM SPRINGS agrees to reimburse ONTARIO for reasonable, documented one-time costs including, but not limited to, necessary radio and telephone equipment, computer hardware and software, consultant, and project management in an amount up to One-Hundred and Fifty Thousand Dollars ($150,000). These costs shall be subject to the prior written approval of PALM SPRINGS Representative, which shall not be unreasonably held. The procurement of such equipment and services shall follow ONTARIO’s Purchasing Policy and Procedure.

3.2.2 Technology Costs
PALM SPRINGS agrees to directly pay to the appropriate vendor the subscription, for leased radio lines, and any other technology additions required by PALM SPRINGS.

3.2.3 Per Call Costs
PALM SPRINGS agrees to pay ONTARIO $40.00 per call for Emergency Medical Dispatching services outlined in Exhibit “D” and if PALM SPRINGS chooses to exercise the option for Full Dispatching Services, then PALM SPRINGS agrees to pay ONTARIO $45.00 per call for this service (early adopter rate) (“Per Call Cost”), subject to potential adjustments as outlined in this Section, for the duration of this Agreement.

A call for service is defined as a CAD generated incident (run numbers) as entered by the ONTARIO Fire Communications Center. ONTARIO may increase the Per Call Cost not more than once per twelve-month period. Such increases shall not exceed the percentage change in the Consumer Price Index – All urban consumers, All Items –

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(Series ID# CUURS49CSA0) Riverside – San Bernardino – Ontario, CA areas for the twelve-month period immediately preceding the date of the price adjustment and shall not exceed 3% total. ONTARIO shall make any increase to the Per Call Cost for the upcoming fiscal year, and notify PALM SPRINGS as soon as practical, but no later than ninety (90) days prior to the start of the Parties’ fiscal year (July 1).

3.2.4 Billing
ONTARIO shall invoice PALM SPRINGS in writing on a quarterly basis as follows:

January 15th (for Fire Dispatch Services provided October 1 - December 31), April 15th (for Fire Dispatch Services provided January 1 – March 31), July 15th (for Fire Dispatch Services provided April 1 - June 30), and October 15th (for Fire Dispatch Services provided July 1 – September 31) or the immediate next following business day. PALM SPRINGS shall pay all fees due within 30 days after receipt of the invoice or will be subject to the late payment charge stated in Section 3.2.5.

3.2.5 Late Payment
As provided by Ontario Municipal Code, Section 1-2.07, there is a 10% late fee for payments received more than 30 days after receipt of an invoice, and an additional

0.5% penalty per month thereafter.

3.3 Contract Term
The Term of this Agreement shall begin on the Effective Date and continue until December 31, 2030, unless earlier terminated as provided herein. Subject to the written approval of the Parties involved, this Agreement may be extended by PALM SPRINGS for a maximum of two (2) additional terms of one (1) year. Either party may terminate this Agreement at any time by providing written notice to the other Party no less than 180 days prior to the desired date of termination.

3.4 Attorneys’ Fees
In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recovery from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or enforcement of any of the terms, conditions, or provisions.

3.5 Liability Contribution
Each Party to this Agreement assumes full and sole responsibility for all risks of injury and damages, arising from the performance of its respective duties and obligations under this Agreement and each Party shall be solely responsible for all claims, liability, loss, suits, damages, costs, and expenses (including attorneys’ fees and costs of litigation) and personal injuries (including death at any time) resulting directly or indirectly from, or arising out of, the performance of its respective duties and obligations under this Agreement. Each Party shall bear the full legal and financial responsibility for its own

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conduct, actions and omissions carried out in the performance of that Party's obligations and responsibilities under this Agreement.

Notwithstanding the foregoing, pursuant to Government Code sections 895.4 and 895.6, if any Party is held liable upon any judgement for damages caused by a negligent or wrongful act or omission occurring in the performance of this Agreement and pays in excess of its pro rata share in satisfaction of such judgement, such Party is entitled to contribution from the other Party to this Agreement. For the purposes of this Agreement, the pro rata share of each Party for purposes of this Section shall be determined according to the comparative fault of the respective Party (ies) as between them.

3.6 Independent Contractor Status
ONTARIO and PALM SPRINGS shall pay all wages, salaries, and other amounts due to their own personnel in connection with any and all services under this Agreement, as required by law. Each Party shall be responsible for all reports and obligations respecting their own personnel, including, but not limited to, social security, income tax withholding, unemployment insurance, and workers’ compensation insurance. Employees or agents of one Party shall not be deemed employees of the other for any purpose.

3.7 Representatives
ONTARIO hereby designates its Fire Chief, or his or her designee, to act as its representative for the performance of this Agreement (“ONTARIO’s Representative”).

PALM SPRINGS hereby designates its Fire Chief, or his or her designee, to act as its representative for the performance of this Agreement (“PALM SPRINGS Representative”).

Each Representative shall have the power to act on behalf of their respective Party for all purposes under this Agreement.

ONTARIO hereby designates its Executive Director of Information Technology, or his or her designee, to act as its representative for the provisions of call-if-necessary IT Services outlined in Exhibit “C”. PALM SPRINGS hereby designates its Fire Chief, or his or her designee, to act as its representative for the provision of call- if‐necessary IT Services.

3.8 Third Party Rights
ONTARIO and PALM SPRINGS agree that the provisions of this Agreement are not intended to create or clarify any rights of third parties not party to this Agreement. In addition, no third party shall have any right of action hereunder. This Agreement shall not be enforceable by any parties other than ONTARIO and PALM SPRINGS.

3.9 Privileges and Immunities
All privileges and immunities of ONTARIO and PALM SPRINGS provided by state and federal law shall remain in full force and effect.

3.10 Governing Law

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This Agreement shall be governed by the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situation in the County of San Bernardino, State of California.

3.11 Successors and Assigns
This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, neither Party shall assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of the other Party.

Any attempt assignment with such consent shall be invalid and void.

3.12 Counterparts
This Agreement may be executed in counterparts, each of which shall constitute an original. All counterparts shall be construed together and constitute one single Agreement.

3.13 Notices
Any notices required to be given under this Agreement shall be deemed to have been properly delivered, served, or given for all purposes when personally delivered to the party to whom it is directed, or in lieu of such personal services, when mailed, postage prepaid, to the following addresses:

ONTARIO PALM SPRINGS
City Manager City Manager
City of Ontario City of Palm Springs
303 East B Street 3200 E. Tahquitz Canyon Way
Ontario, CA 91764 Palm Springs, CA 92262

3.14 Severability
In the event that any provision of this Agreement shall be held invalid or unenforceable, such provisions shall be severable from this Agreement, and such invalidity or unenforceability shall not be construed to have any effect on the remaining provisions of this Agreement.

3.15 No Waiver
The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against who enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

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3.16 Remedies By Law
In addition to the rights and remedies provided for by this Agreement, the Parties shall be entitled to all rights and remedies afforded to them by law.

3.17 Amendment and Modification
This Agreement may be amended or modified only by a written instrument signed by the parties.

3.17 Force Majeure
Neither Party shall be considered in breach of this Agreement to the extent that performance of their respective obligations (excluding payment obligations) is prevented by an Event of Force Majeure that arises after the Effective Date. “Event of Force Majeure” shall mean an event beyond the control of either Party which prevents a Party from complying with any of its obligations under this Agreement, including but not limited to: natural disasters, pandemic or epidemic, enemy invasion, war, insurrection, nuclear or radiological contamination, riotous situation or civil unrest, or acts or threats of terrorism.

Should an Event of Force Majeure occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.

3.18 Entire Agreement
This Agreement, with its exhibits, represents the entire understanding of ONTARIO and PALM SPRINGS as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement.

3.19 Headings
Paragraphs and subparagraph headings contained in this Agreement are included solely for conveniences and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

3.20 Existing Aid Agreement
Nothing in this Agreement shall be construed to affect the obligations, rights, or liabilities of either Party with respect to any automatic or mutual aid agreements existing prior to the execution of this Agreement.

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SIGNATURE PAGE FOR FIRE AND DISPATCH AND EMERGENCY COMMUNICATIONS

SERVICES AGREEMENT BETWEEN THE CITY OF ONTARIO AND THE CITY OF PALM SPRINGS IN WITNESS WHEREOF, the Parties have caused this instrument to be signed and executed on the date first herein above written.

CITY OF ONTARIO CITY OF PALM SPRINGS
By:_____________________ By:_____________________
Scott Ochoa Scott Stiles
City Manager City Manager
Attest:

By:______________________ By:______________________
City Clerk City Clerk
Approved as to Form:

By:______________________
Best, Best & Krieger, LLP
City Attorney

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EXHIBIT “A”

EMERGENCY FIRE/EMS DISPATCH SERVICES

SCOPE OF SERVICES, LEVEL OF SERVICE AND LEVEL OF SERVICE

SCOPE OF SERVICES
ONTARIO will provide emergency fire/EMS dispatching and communications services in support of fire protection, fire-rescue, and emergency medical services. These services will be provided by ONTARIO, from the ONTARIO Fire Communications Center, using ONTARIO staff on a 24-hour-per-day basis.

ONTARIO shall:

1. Provide emergency fire/EMS dispatching and communications services to PALM SPRINGS. This service will include: receive and dispatch all emergency calls, including 911 and 10-digit emergency numbers; provide dispatching and tracking of calls for service via CAD (Computer Aided Dispatch) system; call tracking and historical information; digital audio recordings including radio and telephone activity. Audio recordings are archived for two years.

2. Hire, train, and compensate dispatch personnel (in compliance with guidelines of the City of Ontario and applicable laws and standards) to accomplish the stated tasks and provide necessary supervision and management for dispatch personnel.

3. Provide necessary and on-going training for dispatch personnel.

4. Provide management level supervisors in the capacity of liaisons to discuss, evaluate, and implement policies and procedures and provide supervision for emergency fire/EMS dispatching and communications services.

5. Provide supervision and coordination of dispatching and emergency communications operational and technical issues, and coordination of service-related operations.

6. Provide and maintain a CAD system capable of dispatching fire/EMS resources by Automated Vehicle Location (AVL) and tracking data necessary for emergency services dispatching. ONTARIO will notify PALM SPRINGS immediately upon any newly discovered issues that may impact the “communication system” including AVL, CAD, Radio, etc.

7. Maintain a CAD system capable of exporting Records Management System (RMS) data to a thirdparty reporting system (currently Image Trend). PALM SPRINGS maintains its own instance of Image Trend. Any additional RMS will require a separate interface and therefore the cost of such exports will borne by PALM SPRINGS. ONTARIO will notify PALM SPRINGS of any upgrades or modifications that could impact established interfaces.

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8. Contact the CAD vendor for any changes to the overall CAD system, dispatch system changes (response plans, units, call types, dispo codes, etc.), CAD connectivity disruptions, or anything that impacts emergency dispatch operations.

9. Provide at least 365 days’ notice to PALM SPRINGS for any changes to the “communications system” (Radio, CAD, Station Alerting, etc.) that will impact the overall fire dispatch system.

10. The following APIs (Application Interface) are included for the below software programs:

Note: Any PALM SPRINGS centric interfaces (i.e. Riverside County AMR) in addition to the API’s listed below would be funded fully by PALM SPRINGS.

Fire Department Interfaces
Department Name of Interface Description
Fire Tablet Command
Two-way interface to transmit AVL data
to Incident Command Software and
additional feasibility as MDC.

Fire Image Trend Interface between Image Trend RMS
and CAD.

Fire AMR Connection
(SB County)
One-way interface to transmit address
to AMR (Ambulance) dispatch in SB
County.

Fire Telestaff One-way interface between scheduling
software and CAD.

Fire US Digital Station Alerting.

Fire SB County Paging Interface between San Bernardino
County Radio and CAD.

Fire Priority Dispatch Pro
QA
Interface between our EMD software
(Pro QA) and the CAD.

Fire FirstDue Fire Inspection module, Preplans, and
premise information update.

Fire PulsePoint One-way interface which is public facing for CPR notifications.

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Fire CAD Interoperability
(Tellus - CAD2CAD)
Two-way interface to transmit and
receive transactional information from
disparate CAD systems related to Call
for Service information, Unit/Resource
Assignment, Unit/Resources Status
Changes, and messaging between
users.

Fire AVL One-way interface to ingest GPS data
to provide real-time AVL.

Dispatch CPE/Ani/Ali
One-way interface to ingest standard
ANI/ALI data in the creation of a new
Call for Service.

Dispatch Rapid SOS
One-way interface to ingest wireless
caller location data for display on ESRI
feature layer exposed to CAD and
Mobile users.

Dispatch EvenTide Phone and radio traffic log recorder
Dispatch ComTech Text to 911

11. Provide 911 interface to CAD incident format.

12. Provide necessary technical support for hardware and software identified in the agreement, including hardware/software maintenance for CAD, CAD/RMS export, 911 CAD interface, 911 telephone system, and audio recording system.

13. Provide necessary form development, audio tape reproduction on request in accordance with applicable laws, as follows:

13.1 PALM SPRINGS shall have unconditional access to all audio (911, phone, and radio).

13.2 Audio shall be kept confidential by both parties unless the release of audio is compelled by law. ONTARIO shall only release audio in compliance with the California Public Records Act or any applicable law related to the disclosure of public records.

Likewise, PALM SPRINGS shall only release audio in compliance with the California Public Records Act and any applicable laws related to the disclosure of public records.

14. Provide Emergency Medical Dispatching (EMD) pre-arrival instructions when applicable on medical calls for service consistent with the Medical Priority Dispatch System (MPDS) and National

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Academy of Emergency Medical Dispatch (NAEMD). ONTARIO will provide training and certification of dispatch personnel in accordance with Inland Counties EMS Agency (ICEMA) and State Emergency Medical Services Authority (EMSA) guidelines, as well as quality assurance review of the EMD program. To the extent that Riverside County EMS Agency (REMSA) guidelines require training not included in the ICEMA and EMSA guidelines, such training will also be provided by ONTARIO, at PALM SPRINGS sole cost and expense.

15. Maintain an Accredited Dispatch Center of Excellence through the National Academies of Emergency Medical Dispatch (NAEMD).

16. Conduct regular Dispatch Steering Committee meetings to include the designated PALM SPRINGS Liaison.

17. Represent the interests of PALM SPRINGS at CALNENA (California Chapter of National Emergency Number Association), REMSA EMD Committee, and State 911 Program for equipment enhancements and software or procedural revisions or modifications.

18. Represent the interests of PALM SPRINGS on the on-going 911 technology projects at CALNENA (State) and NENA (National) levels to include communication, correspondence, and representation to both organizations.

19. Quality insurance (QI) review of the required amount of calls (both for ONTARIO and PALM SPRINGS) based on NAEMD requirements. The calls get pulled in random by NAEMD and currently sits between 1% - 3% of ONTARIO calls each month.

20. Produce customized quarterly reports to PALM SPRINGS based on available data.

LEVEL OF SERVICE
ONTARIO will provide emergency dispatching and communications services to PALM SPRINGS on a 24- hour-per-day, 365-day-per-year basis.

ONTARIO will staff the ONTARIO Fire Communications Center in a manner and level consistent with needs of the Center, at the direction of the Fire Communications Manager, and consistent with applicable standards of practice.

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EXHIBIT “B”

PALM SPRINGS RESPONSIBILITIES
The following is a list of service efforts that are the responsibilities of PALM SPRINGS. Palm Springs shall:

1. Maintain its radio communications system in such a condition as to be compatible with the communications system used by ONTARIO.

2. Maintain a fire station alerting system in such a condition as to be compatible with the CAD system used by ONTARIO.

3. Fund, repair, maintain, service, and sustain communications infrastructure, hardware, systems, software, and technology owned by PALM SPRINGS. Any PALM SPRINGS centric interfaces (i.e.

Riverside County AMR) in addition to the API’s listed in Exhibit A section 10 to the CAD system would be funded fully by PALM SPRINGS.

4. Purchase and maintenance of all mobile devices, Mobile Data Computers (MDCs), modems to support AVL dispatching, station alerting systems, pagers, radios or other hardware systems are the responsibilities of PALM SPRINGS.

5. Purchase and maintain appropriate level internet connectivity deemed acceptable by PALM SPRINGS to ensure connectivity to the CAD.

6. Maintain the City of Palm Springs GIS layers within the Computer Aided Dispatch (CAD) system, including their fire pre-plans and premise information, and their own run-cards as a contingency in the event Automated Vehicle Location (AVL) dispatching is down.

7. Within a reasonable amount of time, inform the ONTARIO Fire Communications Center and IT of any existing known hardware or software related issues including but not limited to mobile devices, Mobile Data Computers (MDCs), modems to support AVL dispatching, station alerting systems, pagers, and/or radios. Upon discovery, inform the ONTARIO Fire Communications Center and IT of any newly discovered hardware or software related issues including but not limited to mobile devices, MDC, modems to support AVL dispatching, station alerting systems, pagers, and/or radios to ensure optimal service capacity under such conditions.

8. Provide all IT support for its own systems to all PALM SPRINGS fire stations, apparatuses, and systems deemed necessary by PALM SPRINGS.

9. Provide and maintain a standardized operational procedures.

10. Provide automatic and mutual aid agreements currently in effect.

11. Provide a single agency liaison to represent PALM SPRINGS within the ONTARIO Fire Communications Center.

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12. Fund any relocation or addition of services or new data/telephone lines, hardware required for the purposes of emergency communications and dispatching services for PALM SPRINGS.

13. Generate and disseminate all emergency mass notifications (reverse 911), evacuation notices, press releases and handle all media inquiries relevant to this Agreement and PALM SPRINGS incidents and calls for service. Any urgent personnel or operational issues may be addressed to the on-duty ONTARIO Fire Communications Center Supervisor. Non-urgent issues should be directed to the ONTARIO Fire Communications Center Manager.

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EXHIBIT “C”

INFORMATION TECHNOLOGY

CALL WHEN NECESSARY SERVICES

SCOPE OF SERVICES
ONTARIO provides information technology (IT) services to the Ontario Fire Department Communications Center in support of their delivery of emergency dispatching and communication services to the Palm Springs Fire Department (PALM SPRINGS). IT services subject to this Agreement include ONTARIO owned and operated infrastructure, systems, devices, and applications.

There are no IT, GIS, or Radio services included in this agreement outside of their support for the ONTARIO Fire Department Communications Center.

Ontario Information Technology Responsibilities:

1. Provide IT services to the Ontario Fire Department Communications Center in support of its mission of providing emergency dispatching and communications services and applicable tertiary responsibilities and tasks to both ONTARIO and PALM SPRINGS.

2. IT services essential to the Ontario Fire Department Communications Center’s mission of providing emergency dispatching and communications services and applicable tertiary responsibilities and tasks will be provided 24-hour-per-day basis.

3. IT services provided to PALM SPRINGS will include those services to, originating from, or as the result of ONTARIO owned and operated IT infrastructure, systems (including the cloud-based CAD), devices, and applications.

4. IT services provided to PALM SPRINGS and not subject to this agreement will be billed on a time and materials basis directly between PALM SPRINGS and ONTARIO Information Technology Department on a best effort basis and subject to ONTARIO Information Technology Department availability.

LEVEL OF SERVICE
ONTARIO provides IT services to the Ontario Fire Department Communications Center on a 24-hour-perday, 365-days-per-year.

COST OF SERVICE
Cost of IT services to the Ontario Fire Department Communications Center in support of the Center’s provision of emergency dispatching and communications services to PALM SPRINGS will be calculated and billed to Ontario Fire Department as internal services fees.

Cost of IT services provided to PALM SPRINGS and not subject to this agreement will be billed on time and materials basis directly between PALM SPRINGS and Ontario Information Technology Department using the most current City of Ontario Cost Allocation Plan.

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16 | P a g e
EXHIBIT “D”

INTERIM EMERGENCY MEDICAL DISPATCH SERVICES

SCOPE OF INTERIM SERVICES
ONTARIO shall provide Emergency Medical Dispatch (EMD) services to PALM SPRINGS on an interim basis prior to the full Fire Dispatch Services “Go-Live” date, which is scheduled to occur in the 3rd Quarter of FY 26-27 (as outlined in the Agreement), when requested in writing by the PALM SPRINGS Fire Chief.

ONTARIO Responsibilities:

1. ONTARIO shall maintain Emergency Medical Dispatch (EMD) accreditation through the National Academies of Emergency Medical Dispatch (NAEMD) and provide EMD, when possible, on all medical aid calls for PALM SPRINGS. ONTARIO communications personnel will evaluate the need for immediate care through pre-arrival instructions to patients or callers before the arrival of PALM SRINGS or other emergency first responders. Such pre-arrival instructions, when applicable on medical calls for service, shall be consistent with the Medical Priority Dispatch System (MPDS) and NAEMD protocols.

2. ONTARIO will quality insurance (QI) review the required number of calls (both for ONTARIO and PALM SPRINGS) based on NAEMD requirements. The calls get pulled in random by NAEMD and currently sits between 1% - 3% of our Ontario Communication Center calls each month.

LEVEL OF INTERIM SERVICE
ONTARIO will provide Interim EMD services to PALM SPRINGS on a 24-hour-per-day, 365-day-per-year basis, for all emergency calls transferred to ONTARIO from PALM SPRINGS. Such Interim EMD Services shall be provided by ONTARIO from the date requested by the PALM SPRINGS Fire Chief until the full Fire Dispatch Service “Go-Live” date, unless earlier terminated.

ONTARIO will staff the ONTARIO Fire Communications Center in a manner and level consistent with needs of the Center, at the direction of the Fire Communications Manager, and consistent with applicable standards of practice.

COST OF INTERIM SERVICE
Cost of Interim EMD services provided to PALM SPRINGS will be $40 per EMD call.

TERMINATION OF INTERIM SERVICE
Either party may terminate its provision of Interim EMD services at any time by providing no less than 14 days written notice prior to the desired date of termination.

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CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF PLANS, SPECIFICATIONS, AND ESTIMATE (PS&E) AND

AUTHORIZATION TO BID RAMON ROAD WIDENING (FROM SAN LUIS REY DR. TO LANDAU BLVD.) INCLUDING THE WHITEWATER RIVER BRIDGE WIDENING, CITY PROJECT NO. 08-25, FEDERAL AID
PROJECT NO. BHLS-5282 (040)
FROM: Scott C. Stiles, City Manager
BY: Department of Engineering Services
SUMMARY:

The construction documents (Plans, Specifications, and Estimate) for this project have been prepared and in accordance with Section 7.03.04 of the Procurement and Contracting Code, the City Council shall approve and adopt the plans, specifications, and work details and authorize the bid request for all public projects exceeding $220,000.

Approval of this item will allow the Staff to proceed with soliciting bids for the Ramon Road Widening (San Luis Rey Dr. to Landau Blvd.) including the Whitewater River Bridge Widening, City Project No. 08-25, Federal-Aid Project No. BHLS-5282 (040), (the “Project”).

RECOMMENDATION:
1) Approve the plans, specifications and estimate and authorize Staff to advertise, and solicit bids, pending federal authorization, for the Ramon Road Widening (San Luis Rey Dr. to Landau Blvd.) including the Whitewater River Bridge Widening, City Project No. 08-25, Federal-Aid Project No. BHLS-5282 (040).
2) Authorize the City Manager to execute all necessary documents.

BACKGROUND:

In 2008, the City of Palm Springs, the City of Cathedral City, and the Agua Caliente Band of Cahuilla Indians submitted a letter to CVAG requesting funding for a Project Study Report (PSR) to identify the Project details and overall scope for the widening of Ramon Road to its full 6-lane width, extending from San Luis Rey Drive to Landau Boulevard,

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City Council Staff Report
August 26, 2026 -- Page 2
Authorize Request for Bids for The Ramon Bridge Project including widening of the existing bridge over the Whitewater River. A location map is provided in Figure 1 for reference.

Figure 1 – Location Map
Subsequently, CVAG funding was approved and the City entered into a Professional Services Agreement with CNS Engineering Inc. (CNS) to prepare the Project Study Report, which would detail the overall Project scope and funding package to submit to the Federal Highway Bridge Program (HBP), which is administered by the State of California Department of Transportation (“Caltrans”).

The federal funding request was ultimately approved by Caltrans, with the HBP funds covering 88.53% of eligible Project costs, requiring an 11.47% local match. Pursuant to a previous funding agreement with CVAG and Cathedral City, the local funding amounts were funded by CVAG with 75% Regional Measure A funds with the remaining 25% appropriately split between Palm Springs and Cathedral City. Any costs that are not eligible per HBP funding requirements will be split between CVAG and both Cities. The budget with Caltrans has been revised over time as additional scope and costs have been identified.

On May 6, 2009, the City Council approved Agreement No. A6190 with CNS Engineers, Inc., for the Project’s environmental and design phase. The construction documents were substantially completed by January 2026, with 100% completed documents pending a constructability review once a Construction Management firm was selected ahead of obtaining authorization to bid for construction.

On March 11, 2026, the City Council approved Agreement No. 26P046 with Accenture Infrastructure and Capital Projects LLC (Accenture). Onboarding a construction management firm early allows the City to complete the required pre-construction surveys

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City Council Staff Report
August 26, 2026 -- Page 3
Authorize Request for Bids for The Ramon Bridge Project (biological and environmental), as well as provide a constructability review, in-depth traffic control staging layout review, and public outreach well in advance of going out to bid for construction. Since early summer, Accenture has been performing public outreach and has been meeting with impacted businesses. There are planned public meeting events in October before construction starts.

In August 2026, Accenture completed their review of plans, specifications, and traffic control staging layout. Public outreach is still on-going. A copy of the construction plan set is included as Attachment A.

STAFF ANALYSIS:

With City Council approval, Staff will advertise the Project in The Desert Sun and utilize the procurement site, PlanetBids™, to allow the submission of bids electronically. The contract documents will be provided free of charge to prospective bidders through the PlanetBids™ system. The anticipated dates of the Project bidding and Award are shown below, pending federal authorization anticipated in August 2026:

Notice Inviting Bids to be Posted: August 27, 2026
Deadline for Receipt of Bids: September 24, 2026
Contract Awarded by City Council: November 2026
This schedule is subject to change depending on preconstruction delays, questions from bidders, and the quality of bids received. In addition, the City has not yet received Authorization to Proceed with Construction from Caltrans, though the request was originally submitted to Caltrans in March 2026. In accordance with the Local Assistance Procedures outlined in the Master Agreement for this funding, the City must receive authorization prior to advertising the project for bid.

To prevent further delay, Staff recommend that the City Council approve the contract documents and grant authority to formally bid the subject Project for construction once the authorization from Caltrans is received.

ENVIRONMENTAL ASSESSMENT:

Section 21084 of the California Public Resources Code requires Guidelines for Implementation of the California Environmental Quality Act (“CEQA”). In accordance with the CEQA Guidelines, the City acting as “Lead Agency” pursuant to CEQA, previously completed an environmental analysis of the potential impacts resulting from construction of the Project. On May 7, 2014, the City Council adopted Resolution No. 23544, adopting and ordering the filing of a Mitigated Negative Declaration for the Project. Subsequently, on May 14, 2014, Staff filed a Notice of Determination with the Riverside County Clerk and State Clearinghouse.

The Project is funded, in part, by federal funds, requiring local oversight by Caltrans. As a federally funded project, the Project is subject to environmental review pursuant to the National Environmental Policy Act (“NEPA”).

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City Council Staff Report
August 26, 2026 -- Page 4
Authorize Request for Bids for The Ramon Bridge Project On June 9, 2014, Caltrans, acting as the lead agency pursuant to NEPA, made an environmental determination that the Project does not individually or cumulatively have a significant impact on the environment as defined by NEPA and is excluded from the requirements to prepare an Environmental Assessment (“EA”) or Environmental Impact Statement (“EIS”), and that it qualifies for a Categorical Exclusion in accordance with 23 USC 327. Subsequently, on January 21, 2016, Caltrans completed a NEPA re-validation of the Project, confirming that the prior NEPA determination for the Project remains valid.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.

FISCAL IMPACT:

Following the bidding process, the Project will be submitted to the City Council for approval. At that time, a detailed breakdown of the Project costs, including construction, consultant services, and staff costs, will be presented for Council review and approval.

The City will finance the initial upfront costs, however, through reimbursements with the other Agencies, the City is expected to pay only a portion of the total Project costs. The approximate funding breakdown is shown below:
• Highway Bridge Funding Source (88.53% - Caltrans share) • Regional Measure A 134-Fund (75% of 11.47% - CVAG share) • Local Measure A 134-Fund (10% of 11.47% - City share) • Capital Project 261-Fund (15% of 11.47% - Cathedral City share) For construction costs, the federal funds are only reimbursing the City for bridge related work. Work outside of the bridge limits will be split between CVAG and the Cities. Further, the split between the City of Palm Springs and Cathedral City will vary as it is dependent upon how much construction is taking place within the right-of-way of each City. As such, this split may be updated once the construction bids are received.

REVIEWED BY:

Acting City Engineer: Francisco Jaime
Assistant City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:

A. The construction plans for City Project 08-25 are available on the City’s Website using the following link:
https://publicportal.palmspringsca.gov/WebLink/Browse.aspx?id=1464312&dbid= 0&repo=CityHall-Primary

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Attachment A
Project Plans for Bidding
Attachment A is available on the City Website with the below Link:
https://publicportal.palmspringsca.gov/WebLink/
Browse.aspx?id=1464312&dbid=0&repo=CityHall-Primary

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CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 4 TO CONTRACT SERVICES
AGREEMENT NO. 23P188 WITH NEIGHBORHOOD PARTNERSHIP
HOUSING SERVICES, INC.

FROM: Scott C. Stiles, City Manager
BY: Housing and Community Development
SUMMARY:

This action will approve Amendment No. 4 to Contract Services Agreement No. 23P188 with Neighborhood Partnership Housing Services, Inc., (NPHS) in the amount of $1,700,000, expanding the scope of work to include administration of the City’s Residential Energy Efficiency Home Upgrade Program and extending the term two years through September 18, 2028.

The amendment will allow the City to continue administration of the Community Development Block Grant (CDBG) Owner-Occupied Home Rehabilitation Program while utilizing the consultant’s expertise to implement residential energy efficiency improvements funded through the City’s Sustainability Department.

RECOMMENDATION:
1) Approve Amendment No. 4 (Attachment A) to Contract Services Agreement No. 23P188 with Neighborhood Partnership Housing Services, Inc., to provide administration of the City’s Residential Energy Efficiency Home Upgrade Program and Community Development Block Grant (CDBG) Owner-Occupied Home Rehabilitation Program for an additional amount of $1,700,000 for a total revised contract amount not to exceed $2,878,878.54, and extend the term through September 18, 2028;
2) Authorize the City Manager or designee to execute all necessary documents.

BUSINESS PRINCIPAL DISCLOSURE:

Neighborhood Partnership Housing Services, Inc., is a 501c3 Public Benefit Nonprofit Corporation in the state of California (Attachment B).

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City Council Staff Report
August 26, 2026 -- Page 2
Amendment No. 4 to Neighborhood Partnership Housing Services Agreement BACKGROUND:

On September 14, 2023, the City Council approved Contract Services Agreement No. 23P188 (Attachment C) with Neighborhood Partnership Housing Services, Inc. to administer the City’s Community Development Block Grant (CDBG) Owner-Occupied Home Rehabilitation Program. The agreement provides professional construction program management, compliance monitoring, contractor procurement, project oversight, and related services necessary to implement the federally funded rehabilitation program.

On September 12, 2024, the City Council approved Amendment No. 1 (Attachment C) to clarify the term of the Agreement, incorporate CDBG Federal Provisions, and add additional compensation in the amount of $112,873.19 for a total revised contract amount not to exceed $525,139.19.

On October 9, 2024, the City entered into Amendment No. 2 (Attachment C) amending the schedule of fees, exercising the first one-year renewal option through September 18, 2025, adding additional compensation in the amount of $355,389.35 for a total revised contract amount not to exceed $880,528.54.

On September 19, 2025, the City entered into Amendment No. 3 (Attachment C) exercising the second one-year renewal option through September 18, 2026, adding additional compensation in the amount of $298,350 for a total revised contract amount not to exceed $1,178,878.54.

STAFF ANALYSIS:

Neighborhood Partnership Housing Services has successfully administered the construction phase of the City’s Owner-Occupied Home Rehabilitation Program by providing construction management, contractor procurement, project inspections, compliance monitoring, contractor financial administration, and project closeout services required under the Community Development Block Grant Program.

The City is expanding its residential rehabilitation programs to include energy efficiency improvements that complement existing rehabilitation activities. Funding for these improvements will be supported through the City’s Sustainability Department and may include matching funds from Desert Community Energy. Expanding the existing contract allows the City to utilize an experienced consultant already familiar with the City’s housing programs, resulting in administrative efficiencies and continuity of service.

The revised Scope of Work expands the consultant’s responsibilities to administer both the construction phase of the Owner-Occupied Residential Rehabilitation Program and the Residential Energy Efficiency Home Upgrade Program. In addition to existing rehabilitation services, the consultant will perform energy assessments, prepare work write-ups for eligible energy improvements, oversee construction, coordinate inspections, identify available rebates and incentives, monitor project compliance, and verify

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City Council Staff Report
August 26, 2026 -- Page 3
Amendment No. 4 to Neighborhood Partnership Housing Services Agreement completion of approved energy efficiency improvements. Eligible improvements may include insulation, HVAC systems, lighting, windows, roofing, electrical upgrades, water heating systems, renewable energy readiness improvements, and other energy conservation measures approved by the City.

ENVIRONMENTAL ASSESSMENT:

The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(b)(5) of the CEQA Guidelines, approval of a contract amendment for professional services constitutes an organizational or administrative activity of government that will not result in either a direct or reasonably foreseeable indirect physical change in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the following City Council Strategic Plan Broad Goal: Housing.

FISCAL IMPACT:

Funds for the proposed amendment are available in Community Development Block Grant allocations and Sustainability Program funding.

REVIEWED BY:

Department Director: Jay Virata
Assistant City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:

A. Amendment No. 4 to Agreement 23P188
B. Public Integrity Disclosure Form
C. NPHS Agreement & Amendments

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ATTACHMENT A
Amendment No. 4 to
Agreement 23P188

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Revised: 10.31.23
AMENDMENT NO. 4 TO THE CONTRACT SERVICES AGREEMENT
23P188 BETWEEN THE CITY PALM SPRINGS AND NEIGHBORHOOD
PARTNERSHIP HOUSING SERVICES, INC.

1. Parties and Date.

This Amendment No. 4 to the Contract Services Agreement 23P188 (“Agreement”) is made and entered into as of this 27th day of August 2026 by and between the City of Palm Springs (“City”) and Neighborhood Partnership Housing Services, Inc., a California Nonprofit Corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. City and Contractor have entered into an agreement entitled “Contract Services Agreement 23P188” dated September 14, 2023, for the purpose of providing a CDBG home rehabilitation program for an amount not to exceed $412,266 and a term from September 15, 2023, to September 19, 2024, approved by City Council on September 18, 2023.

2.2 Amendment No. 1. City and Contractor amended the Agreement to clarify the term of the original agreement has options to extend for two additional one year terms, add $112,873.19, and incorporate the CDBG Federal Provisions. The Parties have heretofore entered into that Amendment No. 1 dated September 12, 2024, for an amount not to exceed $525,139.19 and a term of September 19, 2023, to September 18, 2024, with two one-year extension options at the City’s sole discretion, approved by City Council on September 12, 2024.

2.3 Amendment No. 2. City and Contractor amended the Agreement to exercise the first extension option, add additional compensation and revised the schedule of fees for a revised contract amount not to exceed $880,528.54.

2.4 Amendment No. 3. City and Contractor amended the Agreement to exercise the second extension option, and add additional compensation for a revised contract amount not to exceed $1,178,878.54.

2.5 Amendment purpose. City and Contractor desire to amend the Agreement to extend the term two years through September 18, 2028, revise the scope of services to include sustainable rehabilitation services and an add additional $1,7000,000 for a revised contract amount not to exceed $2,878,878.54.

2.6 Amendment Authority. This Amendment No. 4 is authorized pursuant to Section 3.3 of the Agreement.

3. Terms.

3.1 Amendment. Section 3.1 Compensation of Contractor. of the Agreement is hereby

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Revised: 10.31.23
amended in its entirety to read as follows:
“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 $2,878,878.54.”

3.2 Amendment. Section 4.4 Term. of the Agreement is hereby amended in its entirety to read as follows:
“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 five years, commencing on September 19, 2023, and ending on September 18, 2028, unless extended by mutual written agreement of the Parties.”

3.3 Amendment. Exhibit “A” of the Agreement is hereby deleted in its entirety and replaced with Exhibit “A” attached hereto and incorporated herein by reference.

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

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

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

3.6 Counterparts. This Amendment No. 4 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]

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Revised: 10.31.23

SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, 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: 8/26/2026 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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Revised: 10.31.23
EXHIBIT “A”

SCOPE OF SERVICES/WORK
Including,
Schedule of Fees
And
Schedule of Performance

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Revised: 10.31.23

1. Background:

A. The Community Development Block Grant (CDBG) Program began in 1976 and is administered nationally by the U.S. Department of Housing and Urban Development.

B. CDBG’s principal objectives are to:

1. Support low and middle income (LMI) communities, considering that a minimum of 70% of CDBG funds granted to a city/ state must be used directly to benefit LMI communities.

2. Eliminate and prevent blight and slums.

3. Meet urgent needs, such as responding to natural disasters.

C. These objectives are achieved by investing in community development projects to create sustainable and viable urban areas. The primary objective continues to be developing viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for low- and moderate-income persons.

D. Contractor shall provide residential rehabilitation activities that benefit low-andmoderate income residents. Eligible activities will be funded by the City’s Community Development Block Grant (CDBG) annual allocation, the City’s Sustainability Department $500,000 and a $500,000 match allocation from Desert Community Energy. City anticipates having approximately $350,000 in CDBG funds available for the Residential Rehabilitation program annually.

E. Under this program, the City would provide grants to qualified low- to moderateincome homeowners to make needed home improvements. Grants would be available to address code deficiencies, eliminate blight, improve handicapped accessibility, and implement eligible energy conservation measures that improve the energy efficiency, resiliency, and sustainability of residential properties. Grant funds may only be used for costs of services and materials necessary to carry out City-approved rehabilitation and energy efficiency improvements. Funding for the Residential Rehabilitation Program and the Energy Efficiency Home Upgrade Program shall be provided in accordance with available program funding, eligibility requirements, and applicable program guidelines. The City may modify available funding levels, eligible activities, and program requirements during the term of the Agreement.

F. The City shall be responsible for resident applications and eligibility. This includes preconstruction communication with the client, managing the City’s waitlist, and tracking demographic information. City shall communicate with the client and Contractor about what work is required and necessary and shall direct Contractor to solicit bids from subcontractors.

2. Scope:

A. The Contractor shall be responsible for all phases of general program administration and compliance, under the City's direct supervision, for approved projects under the Residential Rehabilitation Program and the Energy Efficiency Home Upgrade Program. Services also include compliance for approved projects, construction

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Revised: 10.31.23
management (including permits, inspections and Notices of Completion), financial record keeping, and monthly reporting to the City.

B. Construction/Rehabilitation: Construction or rehabilitation paid with CDBG funds shall be required to conform to 24 CFR 570.603 of the CDBG regulations, as applicable, and any other federal or state requirements which are associated with the grant funding source. This includes but is not limited to:

1. Conduct property inspections to identify requested work eligibility under the program guidelines, as well as meeting the City of Palm Springs’s Building and Planning Division’s requirements.

2. Prepare work write-ups, describing necessary repairs and improvements including line-item cost estimates.

3. Contractor shall solicit bids for each project, perform bid opening, evaluate bids, etc.

4. Contractor shall write and sign all contracts with subcontractors.

5. Contractor is responsible for all work performed, scheduling, etc.

6. Contractor is responsible for making payments to subcontractors.

7. Keep updated Contractors’ list with all eligible requirements including proof of insurance, verification with the Excluded Parties Listing System, and California Contractor’s State License Board.

8. Ensure subcontractors obtain required permits.

9. Conduct pre-construction conferences with the contractor and homeowner.

10. Monitor construction for compliance with the program requirements and assure that all work is professional and includes proper materials.

11. Conduct energy assessments or evaluations, as applicable, to identify eligible energy conservation improvements.

12. Prepare work write-ups describing recommended energy efficiency improvements, including line-item cost estimates.

13. Coordinate and oversee the installation of approved energy conservation measures in accordance with applicable program requirements.

14. Assist the City in identifying available utility rebates, incentives, or other funding opportunities applicable to approved improvements.

15. Verify that completed energy efficiency improvements comply with applicable program requirements and manufacturer installation standards.

C. Photos: Take “before and after” photos including work to be done, work in progress, and completed improvements.

D. Property Standards: All rehabilitated projects funded with Rehabilitation funds must meet local zoning ordinances and building codes.

E. Energy Efficiency: The Contractor shall incorporate eligible energy conservation measures into rehabilitation projects, where feasible, and administer standalone Energy Efficiency Home Upgrade Program projects as authorized by the City. Eligible

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Revised: 10.31.23
improvements may include, but are not be limited to, lighting, insulation, air sealing, HVAC systems, water heating, windows, roofing, electrical upgrades, renewable energy readiness, appliance replacements, and other energy conservation measures approved by the City.

F. Lead-Based Paint: If a rehabilitated home was originally placed into service prior to January 1, 1978, rehabilitation must comply with HUD lead-based paint rules (24 CFR Part 35 and 24 CFR Section 570.608). A lead-based paint risk assessment for lead based paint hazards shall be conducted, and rehabilitation work must be done by Contractors meeting the requirements of the HUD rule and the EPA Renovation, Repair and Painting rule.

G. Final Inspection: Conduct final inspections and close out project with all necessary lien releases, notices of completion and Building Inspector’s final permit. Interface with the City’s Building and Planning Departments as necessary.

H. Final Documentation: Prepare and provide (with required signatures) all payment requests to City staff, including lien releases, change orders, and all other required documents. The Consultant shall ensure that property warranty information is provided to the homeowner.

3. Schedule:

A. Work will be issued on a task order basis. Each project for homeowners should be no more than 120 days from application to work completion.

1. Compensation:

A. Work shall be compensated on a not-to-exceed basis. Contract pricing includes all labor, expenses, and incidentals to complete the work outlined in the contract scope. The Contractor may request monthly payments based on the percentage of work completed for the previous month as long as a detailed progress report is provided to support the amount requested. No additional compensation will be due by the City unless the contract is modified for additional work requested by the City.

B. An allowance has been added to account for the work performed by subcontractors.

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Revised: 10.31.23
Schedule of Fees

ITEM DESCRIPTION UNIT OF

MEASURE

ESTIMATED

QUANTITY

UNIT PRICE SUBTOTAL
1 Administrative Fee per
project
EA 50 15% Project
Cost
$255,000
2 Allowance for
Rehabilitation Costs
NTE 1 $1,445,000 $1,445,000
TOTAL $1,700,000

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ATTACHMENT B
Public Integrity
Disclosure Form

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PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principal Place of Business)

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

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

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

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
________________________  Officer  Director  Member  Manager [name]  General Partner  Limited Partner
Other ___________________________
_______________________________  Officer  Director  Member  Manager [name]  General Partner  Limited Partner
 Other __________________________
________________________________  Officer  Director  Member  Manager [name]  General Partner  Limited Partner
 Other __________________________
Neighborhood Partnership Housing Services, Inc.
9551 Pittsburgh Ave., Rancho Cucamonga, CA 91730
California
Clemente Mojica
Solon Escobar
Jesse Ibarra
x
x
x
x

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ATTACHMENT C
NPHS Agreement & Amendments

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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)
CDBG HOME REHABILITATION PROGRAM Neighborhood Partnership Housing Services,,,,,,,, Inc....... Jesse Ibarra [email protected] Provide CDBG home rehabilitation program.......
$$$$$$44441111111122222222,,,,,,,,2222222266666666.......000000000000000000 11111111 Year from Notice to Proceed Yes Solon Escobar,,,,,,,, [email protected] Clemente A....... Mojica,,,,,,,, [email protected] Community &&&& Economic Development Ariel Tolefree-----Williams 222222223333333P11111111888888 N////////A YesYesYes YesYesYes YesYesYes Procurement N////////A No RFP 33333337777-----222222223333333
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CONTRACT SERVICES AGREEMENT 23P188

CDBG HOME REHABILITATION PROGRAM
THIS AGREEMENT FOR CONTRACT SERVICES (“Agreement”) is made and entered into on __________________, by and between the City of Palm Springs, a California charter city and municipal corporation (“City”), and NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, INC., a California Nonprofit 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 and qualified firm to provide the City with a CDBG home rehabilitation program, (“Project”).

B. Contractor has submitted to City a proposal to provide the City with a CDBG home rehabilitation program, 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.

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

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

2. TIME FOR COMPLETION
The time for completion of the Services to be performed by Contractor is an essential condition of this Agreement. Contractor shall prosecute regularly and diligently the work of this Agreement 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 $412,266.00.

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

3.3 Changes. In the 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.

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4. PERFORMANCE SCHEDULE

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

4.2 Schedule of Performance. All Services rendered under this Agreement shall be performed under the agreed upon schedule of 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 one year, commencing on _issuance of notice to proceed, 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.

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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: Jesse Ibarra, Chief Business Officer. It is expressly understood that the experience, knowledge, education, capability, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services under this Agreement. The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

5.2 Contract Officer. The Contract Officer shall be the City 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.

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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:

Jesse Ibarra Chief Business Officer

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 DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140

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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 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 DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140

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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 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 DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140

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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 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 nondiscrimination in city contracting.

11. MISCELLANEOUS PROVISIONS
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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: Neighborhood Partnership Housing Services, Inc.

Attention: Clemente Mojica
9551 Pittsburgh Ave.

Rancho Cucamonga, CA 91730

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

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

11.4 Severability. Whenever possible, each provision of this Agreement 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.

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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 NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, 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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9/18/2023
09/14/2023 1-Q
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EXHIBIT “A”

SCOPE OF SERVICES/WORK
Including,
Schedule of Fees
And
Schedule of Performance
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1. Background:

A. The Community Development Block Grant (CDBG) Program began in 1976 and is administered nationally by the U.S. Department of Housing and Urban Development.

B. CDBG’s principal objectives are to:

1. Support low and middle income (LMI) communities, considering that a minimum of 70% of CDBG funds granted to a city/ state must be used directly to benefit LMI communities.

2. Eliminate and prevent blight and slums.

3. Meet urgent needs, such as responding to natural disasters.

C. These objectives are achieved by investing in community development projects to create sustainable and viable urban areas. The primary objective continues to be developing viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for low- and moderate-income persons.

D. Contractor will provide residential rehabilitation activities that benefit low-andmoderate income residents. Eligible activities will be funded from the City’s Program Year (PY) 2023-2024 Community Development Block Grant (CDBG) allocations.

The City anticipates having approximately $358,506 in CDBG funds available for the Residential Rehabilitation program.

E. Under this program the City would provide grants to qualified low- to moderateincome homeowners to make needed home improvements. Grants would be available to address code deficiencies, eliminate blight, and improve handicapped accessibility.

The maximum grant amount will be $15,000 per household and will be provided on a first come/first-served basis to qualified applicants. Grant funds may only be used for costs of services and materials necessary to carry out City approved repair work. The goals for this activity are to serve approximately 24 Low- or Moderate-Income Palm Springs households City-wide.

F. The City shall be responsible for resident applications and eligibility. This includes pre-construction communication with the client, managing the City’s waitlist, and tracking demographic information. The City will communicate with the client and Contractor about what work is required and necessary and should solicit bids from subcontractors.

2. Scope:

A. The Contractor shall be responsible for all phases of general program administration and compliance, under the City’s direct supervision, for approved projects. Services also include compliance for approved projects, construction management for housing rehabilitation program, (including permits, inspections and Notice of Completions) and financial record keeping and monthly reporting to the City.

B. Construction/Rehabilitation: Construction or rehabilitation paid with CDBG funds will be required to conform to 24 CFR 570.603 of the CDBG regulations, as DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140

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Revised 4.13.23 Page 14 of 21
applicable, and any other federal or state requirements which are associated with the grant funding source. This includes but is not limited to:

1. Conduct property inspections to identify requested work eligibility under the program guidelines, as well as meeting the City of Palm Springs’s Building and Planning Division’s requirements.

2. Prepare work write-ups, describing necessary repairs and improvements including line-item cost estimates.

3. Contractor shall solicit bids for each project, perform bid opening, evaluate bids, etc.

4. Contractor shall write and sign all contracts with subcontractors.

5. Contractor is responsible for all work performed, scheduling, etc.

6. Contractor is responsible for making payments to subcontractors.

7. Keep updated Contractors’ list with all eligible requirements including proof of insurance, verification with the Excluded Parties Listing System, and California Contractor’s State License Board.

8. Ensure subcontractors obtain required permits.

9. Conduct pre-construction conferences with the contractor and homeowner.

10. Monitor construction for compliance with the program requirements and assure that all work is professional and includes proper materials.

C. Photos: Take “before and after” photos including work to be done, work in progress, and completed improvements.

D. Property Standards: All rehabilitated projects funded with Rehabilitation funds must meet local zoning ordinances and building codes.

E. Energy Efficiency: Plans should incorporate energy efficiency measures through materials, heating, ventilation and air conditioning (HVAC) systems, design, and site orientation where feasible.

F. Lead-Based Paint: If a rehabilitated home was originally placed into service prior to January 1, 1978, rehabilitation must comply with HUD lead-based paint rules (24 CFR Part 35 and 24 CFR Section 570.608). A lead-based paint risk assessment for lead based paint hazards shall be conducted, and rehabilitation work must be done by Contractors meeting the requirements of the HUD rule and the EPA Renovation, Repair and Painting rule.

G. Final Inspection: Conduct final inspections and close out project with all necessary lien releases, notices of completion and Building Inspector’s final permit. Interface with the City’s Building and Planning Departments as necessary.

H. Final Documentation: Prepare and provide (with required signatures) all payment requests to City staff, including lien releases, change orders, and all other required documents. The Consultant shall ensure that property warranty information is provided to the homeowner.

DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140

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Revised 4.13.23 Page 15 of 21

3. Schedule:

Work will be issued on a task order basis. Each project for homeowners should be no more than 120 days from application to work completion.

4. Compensation:

A. Work will be compensated on a lumpsum basis. Contract pricing includes all labor, expenses, and incidentals to complete the work outlined in the contract scope. The Contractor may request monthly payments based on the percentage of work completed for the previous month as long as a detailed progress report is provided to support the amount requested. No additional compensation will be due by the City unless the contract is modified for additional work requested by the City.

B. An allowance has been added to account for the work performed by subcontractors.

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Revised 4.13.23 Page 16 of 21
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Revised 4.13.23 Page 17 of 21
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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Revised 4.13.23 Page 18 of 21

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 DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140

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Revised 4.13.23 Page 19 of 21
contribution it may have against City, its elected officials, officers, employees, agents, and volunteers.

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

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

6. Verification of Coverage. Contractor shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, affecting all of the coverages required by this Agreement. The 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.

DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140

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Revised 4.13.23 Page 20 of 21
D. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

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

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

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

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

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

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

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Revised 4.13.23 Page 21 of 21
EXHIBIT “C”
EXECUTIVE ORDER N-6-22 CERTIFICATION
Executive Order N-6-22 issued by Governor Gavin Newsom on March 4, 2022, directs all agencies and departments that are subject to the Governor’s authority to (a) terminate any contracts with any individuals or entities that are determined to be a target of economic sanctions against Russia and Russian entities and individuals; and (b) refrain from entering into any new contracts with such individuals or entities while the aforementioned sanctions are in effect.

Executive Order N-6-22 also requires that any contractor that: (1) currently has a contract with the City of Palm Springs funded through grant funds provided by the State of California; and/or (2) submits a bid or proposal or otherwise proposes to or enter into or renew a contract with the City of Palm Springs with State of California grant funds, certify that the person is not the target of any economic sanctions against Russia and Russian entities and individuals.

The contractor hereby certifies, SUBJECT TO PENALTY FOR PERJURY, that a) the contractor is not a target of any economic sanctions against Russian and Russian entities and individuals as discussed in Executive Order N-6-22 and b) the person signing below is duly authorized to legally bind the Contractor. This certification is made under the laws of the State of California.

Signature:

Printed Name:

Title:

Firm Name:

Date:

DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F 9/14/2023
Chief Financial Officer
Solon Escobar
Neighborhood Partnership Housing Services, Inc.

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

PLEASE NOTE THAT IT IS YOUR RESPONSIBILITY

TO RENEW AND UPDATE THIS LICENSE
ANNUALLY.

BUSINESS LICENSE CERTIFICATE
Business Name: Neighborhood Partnership Housing Services, Business Type(s):

Inc.
8999 SERVICES, NOT ELSEWHERE CLASSIFIED
Business Location: 9551 Pittsburgh Ave.

Rancho Cucamonga, CA 91739
Mailing Address: AVE
RANCHO CUCAMONGA, CA 91739
Owner: Solon Escobar
License Number: OC-002235-2023 License Type: Out of City Issued Date: 8/30/2023 Classification: Out of City
Expiration Date: 8/31/2024 Fees Paid: $40.00

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.

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 WVDADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS 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/MEMBER EXCLUDED?
(Mandatory in NH) DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENT EROTH- STATUTE PER
(MM/DD/YYYY) LIMITS POLICY EXP(MM/DD/YYYY) POLICY EFFLTR 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 PRO- JECT 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
8/24/2023
Arthur J. Gallagher Risk Management Services, LLC
500 N Brand Boulevard, Suite 100
Glendale CA 91203
Elena Ibarra 818. 539. 8671 818. 539. 8771 [email protected] License#: 0D69293 Nonprofits' Insurance Alliance of CA 10023 NEIGPAR-02 Employers Preferred Insurance Company 10346 Neighborhood Partnership Housing Services, Inc
9551 Pittsburgh Ave
Rancho Cucamonga, CA 91730
516563989
A X 1,000,000 X 1,000,000 20,000 1,000,000 2,000,000 X
Y 2023-01574 5/1/2023 5/1/2024
2,000,000
A 1,000,000 X XY 2023-01574 5/1/2023 5/1/2024
B Y EIG276183805 5/1/2023 5/1/2024
X
1,000,000 1,000,000 1,000,000
A Professional Liability Y 2023-01574 5/1/2023 5/1/2024 Per Claim Aggregate
$1,000,000
$2,000,000
Nonprofits' Insurance Alliance of CA - A.M. Best #011845 Policy: Improper Sexual Conduct
Policy#: 2023-01574
Carrier: Nonprofits' Insurance Alliance of CA
Policy Term: 5/1/2023 To 5/1/2024
Per Claim: $500,000 / Aggregate: $500,000
See Attached...

City of Palm Springs
Procurement and Contracting Department
3200 E. Tahquitz Canyon Way
Palm Springs CA 92262
DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140

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ACORD 101 (2008/01)
The ACORD name and logo are registered marks of ACORD
© 2008 ACORD CORPORATION. All rights reserved.

THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: FORM TITLE:

ADDITIONAL REMARKS
ADDITIONAL REMARKS SCHEDULE Page of
AGENCY CUSTOMER ID:

LOC #:

AGENCY

CARRIER NAIC CODE

POLICY NUMBER

NAMED INSURED
EFFECTIVE DATE:

NEIGPAR-02 1 1
Arthur J. Gallagher Risk Management Services, LLC
Neighborhood Partnership Housing Services, Inc
9551 Pittsburgh Ave
Rancho Cucamonga, CA 91730
25 CERTIFICATE OF LIABILITY INSURANCE
The City of Palm Springs , its elected officials, officers, employees, agents, and volunteers are named additional insured on General liability , auto liability and Professional coverage with respect to the operations of the named insured. Such insurance is Primary and Non-Contributory. Waiver of Subrogation on Workers compensation applies in favor of additional insured Written notice shall be provided at least ten (10) days in advance of cancellation for non-payment of premium and thirty (30) days in advance for any other cancellation or policy change. Endorsement to follow.

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POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED – OWNERS, LESSEES OR
CONTRACTORS – SCHEDULED PERSON OR

ORGANIZATION
CG 20 10 12 19
2023-01574
Named Insured: Neighborhood Partnership Housing Services, Inc.* Any person or organization that you are required to
add as an additional insured on this policy, under a
written contract or agreement currently in effect, or
becoming effective during the term of this policy. The
additional insured status will not be afforded with
respect to liability arising out of or related to your
activities as a real estate manager for that person or
organization.

All insured premises and operations.

Location(s) Of Covered Operations
Name Of Additional Insured Person(s)
Or Organization(s)

SCHEDULE

COMMERCIAL GENERAL LIABILITY COVERAGE PART
This endorsement modifies insurance provided under the following:

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

Section II – Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability for "bodily injury", "property damage" or "personal and advertising injury"
caused, in whole or in part, by:

1. Your acts or omissions; or

2. The acts or omissions of those acting on your
behalf;
in the performance of your ongoing operations for
the additional insured(s) at the location(s)
designated above.

However:

1. The insurance afforded to such additional
insured only applies to the extent permitted
by law; and
A.

B. With respect to the insurance afforded to these
additional insureds, the following additional
exclusions apply:

This insurance does not apply to "bodily injury" or
"property damage" occurring after:

1. All work, including materials, parts or
equipment furnished in connection with such
work, on the project (other than service,
maintenance or repairs) to be performed by
or on behalf of the additional insured(s) at the
location of the covered operations has been
completed; or

2. If coverage provided to the additional insured
is required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.

CG 20 10 12 19 © Insurance Services Office, Inc., 2012 Page 1 of 2 DocuSign Envelope ID: 300F1C27-0BBC-46CB-8A12-B6F12499AB7F Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140

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2. That portion of "your work" out of which the
injury or damage arises has been put to its
intended use by any person or organization
other than another contractor or subcontractor
engaged in performing operations for a
principal as a part of the same project.

C. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III – Limits Of Insurance:

If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:

1. Required by the contract or agreement; or

2. Available under the applicable Limits of
Insurance shown in the Declarations;
whichever is less.

This endorsement shall not increase the
applicable Limits of Insurance shown in the
Declarations.

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Revised: 10.31.23
AMENDMENT NO. 1 TO THE CONTRACT SERVICES AGREEMENT
23P188

BETWEEN THE CITY PALM SPRINGS AND NEIGHBORHOOD
PARTNERSHIP HOUSING SERVICES, INC.

1. Parties and Date.

This Amendment No. 1 to the Contract Services Agreement 23P188 (“Agreement”) is made and entered into as of this 12th day of September 2024, by and between the City of Palm Springs (“City”) and Neighborhood Partnership Housing Services, Inc., a California Nonprofit Corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. The City and Contractor have entered into an agreement entitled “Contract Services Agreement 23P188” dated September 14, 2023, for the purpose of providing a CDBG home rehabilitation program for an amount not to exceed $412,266 and a term from September 19, 2023 to September 18, 2024, approved by City Council on September 14, 2023.

2.2 Amendment. The City and Contractor desire to amend the Agreement to clarify the term of the original agreement has options to extend for two additional one year terms, increase the compensation, and incorporate the CDBG Federal Provisions.

2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 3.3 of the Agreement.

3. Terms.

3.1 Compensation to Contractor. Section 3.1 of the Agreement is hereby amended in its entirety, to add $112,873.19 to item 2, Allowance for Subcontractor Work, 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 Attachment “A”. The total amount of Compensation for the first term ending September 14, 2024, shall not exceed $525,139.19”.

3.2 Section 12 Federal Provisions is hereby added in its entirety to read as follows:
“Since funding for the Services is provided, in whole or in part, by the Department of Housing and Urban Development’s Community Block Grant Program, Contractor shall also fully and adequately comply with the provisions included in Exhibit “D” attached hereto and incorporated herein by reference (“Federal Provisions”). With respect to any conflict between Docusign Envelope ID: 57765E02-7C1B-4759-8D4A-02A164BB0F0A Docusign Envelope ID: 0FBD7337-87BE-43AF-A774-D167C2A2FD5C

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Revised: 10.31.23
such Federal Provisions and the terms of this Agreement and/or the provisions of state law, the more stringent requirement shall control.”
“Exhibit D attached hereto and incorporated herein by reference.”

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

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

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

3.6 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
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Revised: 10.31.23

SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, 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: September 12, 2024 Item No. 1Q
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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10/2/2024
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AMENDMENT NO. 2 TO THE CONTRACT SERVICES AGREEMENT
23P188

BETWEEN THE CITY PALM SPRINGS AND NEIGHBORHOOD
PARTNERSHIP HOUSING SERVICES, INC.

1. Parties and Date.

This Amendment No. 2 to the Contract Services Agreement 23P188 (“Agreement”) is made and entered into as of this 9th day of October 2024, by and between the City of Palm Springs (“City”) and Neighborhood Partnership Housing Services, Inc., a California Nonprofit Corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. The City and Contractor have entered into an agreement entitled “Contract Services Agreement 23P188” dated September 14, 2023, for the purpose of providing a CDBG home rehabilitation program for an amount not to exceed $412,266 and a term from September 19, 2023 to September 18, 2024, approved by City Council on September 14, 2023.

2.2 Amendment No. 1. The City and Contractor amended the Agreement to clarify the term of the original agreement has options to extend for two additional one year terms, add $112,873.19, and incorporate the CDBG Federal Provisions. The Parties have heretofore entered into that Amendment No. 1 dated September 12, 2024 for an amount not to exceed $525,139.19 and a term of September 19, 2023 to September 18, 2024, with two one-year extension options at the City’s sole discretion, approved by City Council on September 12, 2024.

2.3 Amendment No. 2. The City and Contractor desire to amend the Agreement to exercise the first extension option, add compensation, and amend the compensation process.

2.4 Amendment Authority. This Amendment No. 2 is authorized pursuant to Section 3.3 of the Agreement.

3. Terms.

3.1 Compensation to Contractor. Section 3.1 of the Agreement is hereby amended in its entirety, adding $355,389.35 for the 2nd year of the agreement, 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 $880,528.54.”

3.2 Term. Section 4.4 is hereby amended in its entirety, adding one year, to read as follows:

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“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 one year, commencing on September 19, 2023, and ending on September 18, 2025, 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 one (1) additional one (1) year terms.”

3.3 EXHIBIT “A”. Section 4, A – Compensation is hereby amended in its entirety, removing the lumpsum basis, to read as follows:
“Work will be compensated on a percentage basis, not to exceed $355,389.35 for year 2, as detailed on NPHS proposal dated September 26, 2024. The Contractor may request monthly payments based on the percentage of work completed for the previous month as long as a detailed progress report is provided to support the amount requested. No additional compensation will be due by the City unless the contract is modified for additional work requested by the City.”

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

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

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

3.7 Counterparts. This Amendment No. 2 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
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SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, 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: N/A Item No. N/A
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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Revised: 10.31.23
AMENDMENT NO. 3 TO THE CONTRACT SERVICES AGREEMENT
23P188 BETWEEN THE CITY PALM SPRINGS AND NEIGHBORHOOD
PARTNERSHIP HOUSING SERVICES, INC.

1. Parties and Date.

This Amendment No. 3 to the Contract Services Agreement 23P188 (“Agreement”) is made and entered into as of this 19th day of September 2025, by and between the City of Palm Springs (“City”) and Neighborhood Partnership Housing Services, Inc., a California Nonprofit Corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. The City and Contractor have entered into an agreement entitled “Contract Services Agreement 23P188” dated September 14, 2023, for the purpose of providing a CDBG home rehabilitation program for an amount not to exceed $412,266 and a term from September 19, 2023 to September 18, 2024, approved by City Council on September 14, 2023.

2.2 Amendment No. 1. The City and Contractor amended the Agreement to clarify the term of the original agreement has options to extend for two additional one year terms, add $112,873.19, and incorporate the CDBG Federal Provisions. The Parties have heretofore entered into that Amendment No. 1 dated September 12, 2024 for an amount not to exceed $525,139.19 and a term of September 19, 2023 to September 18, 2024, with two one-year extension options at the City’s sole discretion, approved by City Council on September 12, 2024.

2.3 Amendment No. 2. The City and Contractor amended the Agreement to exercise the first extension option, add compensation, and add additional compensation for a not to exceed $880,528.54.

2.4 Amendment purpose. The City and Contractor desire to amend the Agreement to exercise the extension option and add additional an additional compensation of $298,350.00.

2.5 Amendment Authority. This Amendment No. 3 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 $1,178,878.54.”
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3.2 Term. Section 4.4 is hereby amended in its entirety to read as follows:
“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 one year, commencing on September 19, 2025, and ending on September 18, 2026, unless extended by mutual written agreement of the Parties.”

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

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

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

3.6 Counterparts. This Amendment No. 3 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
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SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, 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: N/A Item No. N/A
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
Docusign Envelope ID: 8BCF6956-6C9F-85D4-8229-98A57248F140 6/24/2026 6/24/2026
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7/7/2026
7/7/2026

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55575.38285\45328566.1

CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: APPROVE EXHIBIT A-1 (LOCAL BRANDS) AND EXHIBIT A-2 (COMMUNITY NON-PROFIT USE) TO THE PALM SPRINGS

CONVENTION CENTER OPERATION AND MANAGEMENT
AGREEMENT NO. 25P206
FROM: Scott C. Stiles, City Manager
BY: City Attorney’s Office
SUMMARY:

The new Palm Springs Convention Center (PSCC) Contract Services Agreement 26P118 (F&B) was executed on July 1, 2026 with Ovations Fanfare L.P. dba OVG Hospitality (OVGH, sometimes Contractor). The City Council requested two exhibits be brought back with additional detail. This report presents the two exhibits to that contract and seeks approval of the policies therein.

RECOMMENDATIONS:
1) Approve Exhibit A-1 to the PSCC CSA Agreement – Local Brands – found as Attachment A to this report;
2) Approve Exhibit A-2 to the PSCC CSA Agreement – Community Non-Profit Use Policy – found as Attachment B to this report.

BUSINESS PRINCIPAL DISCLOSURE:

None required.

BACKGROUND:

Over the past several months, the City’s PSCC F&B Contractor has been busy with transitioning F&B services from the Savoury’s Good Earth Cuisine, Inc., to the OVGH team. At its June 30, 2026 meeting, where Council approved the F&B Agreement (the “Agreement”), staff was directed to further develop two contract exhibits based on input received at that meeting. This report seeks approval of those two exhibits, which include the local brands (Agreement Exhibit A-1 – See Attachment A) and the use of the PSCC by community non-profits (Agreement Exhibit A-2 – See Attachment B). Both of these exhibits are offered in more detail below.

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City Council Staff Report
August 26, 2026 -- Page 2
Approved Exhibit A-1 (Local Brands) and Exhibit A-2 (Community Non-Profit Use) to the Palm Springs Convention Center Operation and Management Agreement No. 25P206 STAFF ANALYSIS:

Exhibit A-1 – Local Brands
At its June 30, 2026 meeting of the City Council, City staff was directed to negotiate Exhibit A-1 further with OVGH and to develop a Local Brand obligation. Updated Exhibit A-1 is included as Attachment A, for Council’s consideration.

In short, OVGH is required to spend at least seven percent (7%) of total food & beverage purchases through greater Coachella valley vendors/suppliers/producers. If OVGH does not hit the required spend, OVGH will catch up the required local spend in the following year. If OVGH hasn't cured the deficiency by the end of the cure period then OVGH will pay that amount to the City in the amount of the final shortfall. Seven percent on the Local Brands is based on historical purchases at Acrisure Arena over the past three years.

Staff recommends approval of Exhibit A-1.

Exhibit A-2 – Community Non-Profit Use of PSCC
At its June 30, 2026 meeting of the City Council, staff was directed to develop Exhibit A2 with more definition and present the updates to the Council for approval. Updated Exhibit A-2 is included as Attachment B for Council’s consideration.

In short, any event F&B order $750 or less can be brought in from an outside vendor with no buyout due to OVGH. For events over $750, qualified groups would receive a discount equal to the current administrative fee published on menus, currently set at 24%.

Staff recommends approval of Exhibit A-2.

ENVIRONMENTAL ASSESSMENT:

The proposed approval of Attachments A and B (Exhibits A-1 & A-2) to the previously approved Agreement for F&B of the Palm Springs Convention Center has been reviewed in accordance with the California Environmental Quality Act (CEQA). This approval is categorically exempt from further review under the State CEQA Guidelines, Section 15301 Class 1 (Existing Facilities) and there is no substantial evidence demonstrating that an exception to a categorical exemption pursuant to CEQA Guidelines, Section 15300.2 applies.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports City Council priority for Economic Development to support a vibrant economy, including tourism.

FISCAL IMPACT:

N/A.

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City Council Staff Report
August 26, 2026 -- Page 3
Approved Exhibit A-1 (Local Brands) and Exhibit A-2 (Community Non-Profit Use) to the Palm Springs Convention Center Operation and Management Agreement No. 25P206 SUMMARY:

This report summarizes the various follow-up items required to complete the F&B Contract between City and OVGH.

REVIEWED BY:

City Attorney: Jeffrey Ballinger
City Manager: Scott Stiles
ATTACHMENTS:

A. Exhibit A-1
B. Exhibit A-2

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ATTACHMENT A

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Exhibit A-1
Local Brands
[to be deemed to be Exhibit A-1 under the Food and Beverage Contract] Contractor shall endeavor to make at least 7% of its total food & beverage purchases each Accounting Year from vendors/suppliers/producers located in the greater Coachella Valley area (collectively, “Local Vendors”). Such 7% goal shall be measured based on the “Cost of Goods Sold” line on Contractor’s financial statements, and shall include subcontractor payments.

If less than 7% of its cost of goods spend in any Accounting Year is made with Local Vendors, Contractor shall endeavor to make up the deficiency in the following Accounting Year. If such deficiency is not made up in the following Accounting Year, Contractor shall pay to the City the amount of the deficiency remaining after such following Accounting Year, provided that in no event shall Contractor be required to pay more than $25,000 in any Accounting Year under this Exhibit A-1

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ATTACHMENT B

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Exhibit A-2
Local non-profit/community use guidelines
[to be deemed to be Exhibit A-2 under the Food and Beverage Contract] For any Local and Community Non-Profit Group event for which the total food and beverage order is $750.00 or less, the licensee can use an outside vendor to fulfill such order with no buyout due to Contractor.

For local non-profit or community use events for which the total food and beverage order is greater than $750, such groups must use Contractor to service their food and beverage requirements, but certain qualified groups (as mutually agreed between Contractor and the Convention Center general manager) will receive a discount on their total catering bill equal to the current administrative fee published on menus. The current administrative fee is 24%.

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55575.38190\45222571.1

CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 PUBLIC HEARING
SUBJECT: CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE

CALIFORNIA GOVERNMENT CODE TO APPROVE A HOTEL

OPERATIONS COVENANT BETWEEN THE CITY OF PALM SPRINGS

AND THE WR PALM MOUNTAIN RESORT, LP PURSUANT TO
MUNICIPAL CODE CHAPTER 5.26 OF THE CITY’S HOTEL

OPERATIONS INCENTIVE PROGRAM
FROM: Scott C. Stiles, City Manager
BY: Office of Economic Development
SUMMARY:

This action seeks to conduct a public hearing regarding the approval of an economic development subsidy in the form of TOT Operations Covenant Agreement with The Palm Mountain Resort & Spa in support of the renovation of their property located at 155 S.

Belardo Road, Palm Springs.

RECOMMENDATION:
1) Open the public hearing and receive public testimony. 2) Approve a Hotel Operations Covenant Agreement with The Palm Mountain Resort located at 155 S. Belardo Road, Palm Springs.
3) Authorize the City Manager and City Attorney to make non-substantive changes and execute all necessary documents related to the subsidy.

BUSINESS PRINCIPAL DISCLOSURE:

The property is owned by WR Palm Mountain Resort LP. A Public Integrity Disclosure form is provided as Attachment A.

BACKGROUND:

The City Council adopted Chapter 5.26 of the Palm Springs Municipal Code in December 2007 (amended on May 15, 2013, February 6, 2019, and September 14, 2023), implementing a Hotel Operations Incentive Program (“Program”) for the operation and maintenance of hotel facilities that enhance the tourist and travel experience for visitors

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The Palm Mountain Resort & Spa Operations Covenant
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to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals.

In October 2013, Section 53083 was added to the California Government Code. Section 53083 states that before granting an economic development subsidy, each local agency shall provide public notice and conduct a hearing regarding the economic development subsidy. "Economic development subsidy" under Section 53083 means any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits.

STAFF ANALYSIS:

Operator has committed to a property improvement project that will invest no less than the equivalent of five thousand dollars ($5,000) per room. The renovation project was completed in Winter 2026. Upon City Council approval and after the City’s execution of the Operations Covenant Agreement (Attachment B), The Palm Mountain Resort & Spa will provide satisfactory documentation certifying its recent renovation and completion of the project as a qualified renovation under the Program.

Palm Mountain Resort & Spa is located at 155 S. Belarado Road and consists of 142 total hotel rooms. The renovation project included upgraded amenities to improve the guest experience. The renovation included full interior renovation of all guest rooms, including painting and installing wallpaper, new furnishings, refinished bathtubs, blinds and appliance replacement, as well as the installation of a new roof on one of the buildings.

Consistent with the provisions of the Program, the Operator now agrees to place restrictions upon the use and operation of the hotel, to ensure that the Project shall be operated and maintained continuously as a hotel available for short-term rentals. The hotel operator also agrees to participate in the Palm Springs Convention Center's Committable Rooms Program and provide designated room nights per month for official City use. In turn, the City will share a percentage of Transient Occupancy Tax Increment with Operator pursuant to the Program guidelines.

As noted above, California Government Code Section 53083 requires a public hearing for economic development subsidies where expenditure of public funds is in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency. Accordingly, before approving such economic development subsidies, the local jurisdiction is to provide specific information in written form available to the public, and through its Internet Web site.

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The Palm Mountain Resort & Spa Operations Covenant
55575.38190\45222571.1
For Palm Mountain Resort & Spa, the information is as follows:

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.

Operator is a single purpose entity domiciled in the State of California doing business from 155 S. Belardo Road, Palm Springs, CA 92262. The Agent for service of process to Operator is WR Palm Mountain Resort LP, doing business at 155 S.

Belardo Road, Palm Springs, CA 92262.

2. The start and end dates, and schedule, if applicable, for the economic development subsidy.

If approved, the Covenant would provide an economic subsidy to Operator through a term of ten (10) years, or until the Operator has received $6,469,870.24 pursuant to the Program, whichever event occurs first.

3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

A. The Program provides operating assistance to hotels in the form of a rebate of adjusted transient occupancy tax (“Adjusted TOT”) at a fixed level for existing hotels that meet Program criteria. The City Council has adopted the Phase II Renovation Project Program for improvement projects constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room, including this project.

B. Per the Program, the existing hotel project planned by Operator is rebated 50% of adjusted TOT for ten (10) years or until the rebate totals $6,469,870.24, whichever comes first. For purposes of the Covenant, an existing Hotel is defined as a property improvement project constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room.

The renovation project must commence no more than twelve (12) months after the City’s execution of the Operations Covenant Agreement and be completed no later than December 31, 2028.

C. The public funds to be spent if the City approves this Covenant will be the staff costs of administration, and statutorily mandated reporting through the term of the Program rebate/subsidy.

4. A statement of the public purposes for the economic development subsidy.

A. The City Council established the Program for the operation and maintenance

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The Palm Mountain Resort & Spa Operations Covenant
55575.38190\45222571.1
of quality and first-class hotel facilities which enhance the tourist and travel experience for visitors to the City of Palm Springs, maximize the use of the City’s convention center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. In the implementation of this Program, the City Council determined: (1) The general welfare and material wellbeing of the residents of the City of Palm Springs depend in large measure upon the growth and expansion of the tourism and travel industries in the City; (2) The operation, maintenance, and expansion of the inventory of quality hotels and first class hotels in the City of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the City, ensure utilization of the City’s convention center, provide employment opportunities for the residents of the City, and promote and enhance the economy of the City; (3) It is in the best interest of the City of Palm Springs to induce and encourage the operation and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the City’s general fund which supports the public services that the City provides its residents; and (4) The authority granted and the purposes to be accomplished are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of quality and first class hotels is of paramount importance to the City of Palm Springs, its residents, and businesses. (Ord. 1730 § 2, 2008)
B. To qualify for the Program, an Operator must invest no less than five thousand dollars ($5,000) per room, or if the project includes any common area or amenity, or any other area for guest use at the hotel, the amount of the investment shall not be less than the amount, if any, invested in rooms, added to the total number of rooms at the hotel that will exist at the end of the project multiplied by five thousand dollars ($5,000).

C. The Project would help beautify the neighborhood and implement energy saving and sustainable components.

5. Projected tax revenue to the local agency as a result of the economic development subsidy.

A. Per the Program, the City will receive 50% of Adjusted TOT for ten (10) years or until the rebate to the Operator totals $6,469,870.24, whichever comes first.

After ten (10) years the City will receive 100% of the TOT revenue (Adjusted TOT plus Unadjusted TOT).

6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The Operator anticipates increasing employment by zero (0) full-time positions and

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The Palm Mountain Resort & Spa Operations Covenant
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zero (0) part- time positions, for a total of zero (0) FTEs. The estimated construction jobs created were twenty (20) .

Project Description
The Palm Mountain Resort & Spa is located at 155 S. Belardo Road and consists of total 142 hotel rooms. The project location is shown below in Figure 1.

Figure 1

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No square footage additions were added to the existing Palm Mountain Resort & Spa buildings. All improvements occurred within the current footprint of the site and were completed on all guest rooms as part of the Project. Additionally, The Palm Mountain Resort & Spa expects renovations, upgrades, and enhancements to bring a heightened level of experience to the guests, thereby increasing occupancy, revenues and tax receipts.

Images of the upgrades are provided below.

Premium Pool View Balcony King Room

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August 26, 2026 -- Page 7
The Palm Mountain Resort & Spa Operations Covenant
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Premium Pool Side Patio Double Double

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August 26, 2026 -- Page 8
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Accessible Deluxe Patio King
Classic King Room

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The Palm Mountain Resort & Spa Operations Covenant
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ENVIRONMENTAL ASSESSMENT:

The extension of the Program considered at this time is not a “project” for purposes of the California Environmental Quality Act (CEQA), as that term is defined by CEQA guidelines (Guidelines) section 15378. This action is organizational or administrative activity by the City of Palm Springs in furtherance of its police power and will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines.

ALIGNMENT WITH STRATEGIC PLANNING:

Quality of Life, Advance Economic Development – Stimulate investment in activities that create living wage employment opportunities and increase livability of the community.

FISCAL IMPACT:

An amount equal to 50% of transient occupancy tax increment derived from the Palm Mountain Resort & Spa, over the annual base amount, will be paid to the Operator for a ten-year period. The maximum pay-out to the recipient cannot exceed $6,469,870.24 over the 10-year period.

REVIEWED BY:

City Attorney: Jeff Ballinger
City Manager: Scott Stiles
ATTACHMENTS:

A. Public Integrity Disclosure Form
B. Hotel Operations Covenant Agreement – Palm Mountain Resort & Spa

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ATTACHMENT B
Hotel Operations Covenant Agreement –
Palm Mountain Resort & Spa

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55575.38190\45222761.1 1

FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

THE CITY OF PALM SPRINGS 3200
E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: City Clerk
(Space Above This Line for Recorder's Office Use Only)

OPERATIONS COVENANT

THIS OPERATIONS COVENANT AND DECLARATION OF COVENANTS AND RESTRICTIONS ("Agreement" or “Covenant”) is made and entered into this day of , 2026, by and between the CITY OF PALM SPRINGS, a municipal corporation and charter city ("City"), and WR Palm Mountain Resort, LP, a California Limited Partnership ("Owner" or “Participant”).

R E C I T A L S:

A. The City of Palm Springs adopted Chapter 5.26 of its Municipal Code in December, 2007 to provide a Hotel Operations Incentive Program ("Program") for the operation and maintenance of Hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. (Chapter 5.26 of the Municipal code is incorporated herein by reference and defined terms therein shall, unless otherwise indicated, have the same meanings herein.)
B. On February 6, 2019, the City of Palm Springs amended Chapter 5.26 of its Municipal Code (“PSMC”) to re-establish the Program for Renovation Hotels as defined in Chapter

5.26 of the PSMC for the operation and maintenance of Hotel facilities that enhance the tourist and travel experience for visitors to the City, that assist the City in achieving its tourism goals.

C. On September 14, 2023, the City of Palm Springs amended Chapter 5.26 of the PSMC to extend the Program until December 31, 2028.

D. On May 18, 2026, Owner applied for the Program and has provided satisfactory documentation certifying its renovation project as a qualified renovation program under the Program. The Palm Mountain Resort & Spa ("Owner's Hotel" or "Project"), generally located at 155 S. Belardo Road, Palm Springs, California, consists of one-hundred forty-two (142) total hotel rooms on certain real property located in the City of Palm Springs, County of Riverside, State of California, legally described on the Legal Description attached hereto as Exhibit "A" and incorporated herein by reference (the "Site").

E. City and Owner now desire to place restrictions upon the use and operation of the Project, in order to ensure that the Project shall be operated continuously as a hotel available for short-term rental for the term of this Agreement.

F. City and Owner also agree that in return for participation in the Program, Owner shall agree to operate the Project as a hotel; participate in the Palm Springs Convention Center's

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Committable Rooms Program; and provide City with a minimum of two (2) room-nights per month for official City use; and, City agrees to share a percentage of Transient Occupancy Tax Increment with Owner pursuant to the Program guidelines.

G. The City finds that the approval of this Covenant is Categorically Exempt from CEQA under Section 15301 of the California Administrative Code as the Hotel Operations Incentive Program applicable to Owner's Hotel applies to the operation, repair, maintenance, or minor alteration of existing structures, facilities, mechanical equipment involving no material expansion of use beyond that previously existing.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Participant hereby conveys to the City the Operating Covenants described herein and City hereby agrees to provide Owner with funds as provided under the Program and as set forth hereinafter.

ARTICLE 1

STATEMENT OF OPERATING COVENANTS

1.1. OPERATION AND USE COVENANT. Upon occupancy, Owner covenants to operate, maintain, and use the Palm Mountain Resort & Spa in accordance with this Agreement.

All uses conducted on the Site, including, without limitation, all activities undertaken by the Owner pursuant to this Agreement shall, in all material respects, conform to requirements of this Agreement and Palm Springs Municipal Code (PSMC).

1.2. HOTEL USE. The Owner hereby agrees that the Project is to be owned, managed, and operated as a hotel (as defined by 5.36.020 of the PSMC) in a first-class manner, and the Project's participation in the Program shall continue in accordance with the terms of the Program, for a term equal to ten (10) years, or until Owner has received from the City the total sum of $6,469,870.24 if that occurs prior to the expiration of the ten (10) years, commencing upon the date Owner first receives from the City the Owner's share of transient occupancy tax revenues pursuant to the Program unless and until Owner's participation in the Program is terminated prior thereto in accordance with this Agreement (the "Term").

1. Housing Uses Prohibited. None of the rooms in the Project will at any time be utilized as a non-transient residential property including dormitory, fraternity or sorority house, rooming house, nursing home, hospital, sanitarium, or trailer court or park without the City's prior consent which consent may be given or withheld in its sole and absolute discretion.

2. Conversion of Project. No part of the Project will at any time be owned by a cooperative housing corporation, nor shall the Owner take any steps in connection with the conversion to such ownership or uses to condominiums, or to any other form of ownership, without the prior written approval of the City Council which approval may be given or withheld in its sole and absolute discretion.

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ARTICLE 2

WARRANTIESAND COVENANTS

2.1. WARRANTIES AND COVENANTS. For the Term of this Agreement, the Owner hereby represents, covenants, warrants and agrees as follows:

1. Owner has completed the City's application for the Hotel Operations Incentive Program. The City has determined the Transient Occupancy Tax Base to be used to calculate the Transient Occupancy Tax Increment shall be $692,999.51, and the Owner accepts such Transient Occupancy Tax Base.

2. Owner hereby agrees to subscribe to the Palm Springs Convention Center's Committable Rooms Program or any similar successor program as identified by the City Manager without being obligated to incur any additional costs or expenses.

3. Upon City's prior request, Owner shall provide the City at no cost two (2) rooms for one (1) night (or 1 room for 2 nights) other than Friday or Saturday nights each month for use for City purposes as approved or designated by the City Manager, provided that such use by the City shall be subject to the rooms being available at the time of the City's request. Such accommodations shall include all services and amenities for which the Owner would normally collect transient occupancy taxes but will not include services and amenities that are optional to the transient and for which the transient is not required to pay a transient occupancy taxes. City shall be responsible for any transient occupancy taxes for any occupancy provided to City under the provisions of this paragraph. Notwithstanding anything in this Agreement to the contrary, if the City does not use rooms during any month, then its right to use rooms with respect to that month shall expire at the end of that month and shall not accrue; provided, however, if the City was unable to use rooms solely because Owner's Hotel had no rooms available when the City requested a room in accordance with this Section 2.1.3, then, the City's right to use rooms shall not expire and may be used by the City in the next subsequent month.

ARTICLE 3

MAINTENANCE

3.1. MAINTENANCE.

1. Maintenance Obligation. Owner, for itself and its successors and assigns, hereby covenants and agrees to maintain and repair or cause to be maintained and repaired the Site and all related on-site improvements and landscaping thereon, including, without limitation, buildings, amenities, parking areas, lighting, signs and walls in a first class condition and repair, free of rubbish, debris and other hazards to persons using the same, and in accordance with all applicable laws, rules, ordinances and regulations of all federal, state, and local bodies and agencies having jurisdiction, at Owner's sole cost and expense.

Such maintenance and repair shall include, but not be limited to, the following:
(i) sweeping and trash removal; (ii) the care and replacement of all irrigation, shrubbery, plantings, and other landscaping to maintain it in a healthy condition; and (iii) the repair,

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replacement and restriping of asphalt or concrete paving using the same type of material originally installed, to the end that such paving at all times be kept clearly marked and in a level and smooth condition. In addition, Owner shall be required to maintain the Property in such a manner as to avoid the reasonable determination of a duly authorized official of the City that a public nuisance has been created by the absence of adequate maintenance such as to be detrimental to the public health, safety or general welfare or that such a condition of deterioration or disrepair causes appreciable harm or is materially detrimental to property or improvements within one thousand (1,000) feet of such portion of the Site.

2. Parking and Driveways. The driveways and traffic aisles on the Site shall be kept clear and unobstructed at all times.

3. Right of Entry. In the event Owner fails to maintain the Site in the abovementioned condition, and satisfactory progress is not made in correcting the condition within thirty (30) days from the date of written notice from City (which notice shall reasonably identify the required maintenance), City may, at City's option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter, either City or its employees, contractors, or agents, may cure Owner's default by entering upon the Site and performing the necessary landscaping and/or maintenance in accordance with Section 3.1.1 above. The City shall give Owner, its representative, or the residential manager reasonable notice of the time and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out this Agreement. Owner shall pay such costs as are reasonably incurred by City for such maintenance, including attorneys' fees and costs.

4. Lien. If any costs incurred by City under Section 3 above are not reimbursed within thirty (30) days after Owner's receipt of City's written request for reimbursement, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of the lower of ten percent (10%) per annum or the legal maximum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney's fees, shall be an obligation of Owner as well as a lien and charge, with power of sale, upon the property interests of Owner, and the rents, issues and profits of such property. City may bring an action at law against Owner obligated to pay any such sums or foreclose the lien against Owner's property interests. Any such lien may be enforced by sale by the City following recordation of a Notice of Default of Sale given in the manner and time required by law as in the case of a deed of trust; such sale to be conducted in accordance with the provisions of Section 2924, et seq., of the California Civil Code, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law.

Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust covering an ownership interest or leasehold or sublease hold estate in and to any Site approved by City pursuant to the Agreement, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof; provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incurred subsequent to such foreclosure,

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assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject Site after the date of such foreclosure sale, shall become a lien upon such Site upon recordation of a Notice of Assessment or Notice of Claim of Lien as herein provided.

ARTICLE 4

COMPLIANCE WITH LAWS

4.1. COMPLIANCE WITH LAWS. Owner shall comply with all ordinances, regulations and standards of the City applicable to the Site. Owner shall comply with all rules and regulations of any assessment district of the City with jurisdiction over the Site.

4.2. PREVAILING WAGE. In accordance with California Labor Code section 1781(a)(2), the Participant acknowledges that the City has expressly indicated to the Participant and persons associated with the Participant that laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et seq. and Palm Springs Municipal Code Section 7.06.030(1). The Participant agrees with the City that the Participant shall assume the responsibility and be solely responsible for payment of the prevailing per diem wage rate for their labor classification.

The Participant, on behalf of itself, its successors, and assigns, waives and releases the City from any right of action that may be available to it pursuant to California Labor Code Sections 1726 and 1781. The Participant acknowledges the protections of Civil Code Section 1542 relative to the waiver and releases contained in this section 4.2, which reads as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR

OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR

HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF

KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED THE PARTY.”

BY INITIALING BELOW, THE PARTICIPANT KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 SOLELY IN CONNECTION WITH THE WAIVERS AND RELEASES OF THIS SECTION 4.2.
____________
Participant’s Initials
Additionally, in accordance with this section 4.2, the Participant shall indemnify, defend with counsel acceptable to the City, and hold the City harmless against any claims pursuant to California Labor Code Sections 1726 and 1781 arising from this Covenant or the construction or operation of the Project.

ARTICLE 5

NONDISCRIMINATION

5.1. NONDISCRIMINATION. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, gender, sexual orientation, gender identity, gender expression, marital status, national origin, ancestry, physical or

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mental disability, or medical condition in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, or any part thereof, nor shall Owner, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of guests or vendees of the Site, or any part thereof.

ARTICLE 6

COVENANTS TO RUN WITH THE LAND

6.1. COVENANTS TO RUN WITH THE LAND. Owner hereby subjects the Site to the covenants, reservations, and restrictions set forth in this Agreement. City and Owner hereby declare their express intent that all such covenants, reservations, and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Site; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions shall expire. All covenants without regard to technical classification or designation shall be binding for the benefit of the City, and such covenants shall run in favor of the City for the entire term of this Agreement, without regard to whether the City is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Site or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed or other instrument.

City and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner's legal interest in the Site is rendered less valuable thereby. City and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and includes the enjoyment and use of the Project by the intended beneficiaries of such covenants, reservations, and restrictions, and by furthering the public purposes for which the City was formed.

Owner, in exchange for the City entering into the Agreement, hereby agrees to hold, sell, and convey the Site subject to the terms of this Agreement. Owner also grants to the City the right and power to enforce the terms of this Agreement against the Owner and all persons having any right, title or interest in the Site or any part thereof while such party owns the Site. No party shall have any liability or obligation in connection with any breach occurring while such party is not the owner of the Site.

Within fifteen (15) business days after request of Owner, City shall execute and provide to Owner an estoppel certificate, in the form approved by the City Attorney of the City, confirming whether or not Owner is in breach of any obligations under this Agreement and identifying any required cure.

ARTICLE 7

INDEMNIFICATION

7.1. GENERAL INDEMNIFICATION. Owner agrees for itself and its successors and assigns to indemnify, defend, and hold harmless City and its respective

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officers, members, officials, employees, agents, volunteers, and representatives from and against any loss, liability, claim, or judgment to or by any third party relating to development and/or operation of the Project by Owner, excepting only any such loss, liability, claim, or judgment arising solely out of the intentional wrongdoing or gross negligence of City or its respective officers, officials, employees, members, agents, volunteers, or representatives. Owner further agrees for itself, and its successors and assigns to indemnify and defend and hold harmless the City, its respective officers, members, officials, employees, agents, volunteers, and representatives from and against any loss, liability, claims, damages, penalties, losses, costs, expenses, injuries and/or liabilities arising out of claims that Owner’s participation in the Program creates a public work for prevailing wage purposes thereby requiring the payment of prevailing wages and this obligation shall apply regardless of whether or not the claim, damage, penalty, loss, cost, expense, injury and/or liability complained of arises out of or relates in any way to any negligence on the part of City. Owner, while in possession of the Site, and each successor or assign of Owner while in possession of the Site, shall remain fully obligated for the payment of property taxes and assessments in connection with the Site. The foregoing indemnification, defense, and hold harmless agreement shall only be applicable to and binding upon the party then owning the Site or applicable portion thereof.

7.2. ATTORNEY’S' FEES. In the event that a party to this Agreement brings an action against the other party hereto by reason of the breach of any condition, covenant, representation or warranty in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable expert witness fees, and its reasonable attorney's fees and costs. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery.

7.3. AMENDMENTS. This Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside.

7.4. NOTICE. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto:

City: City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Manager
Copy to: Office of the City Attorney
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Attorney
Owner: Palm Mountain Resort
& Spa
155 S. Belardo Road
Palm Springs, CA92262

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Attn: Patty Davis
The notice shall be deemed given three (3) business days after the date of mailing, or, if personally delivered, when received.

7.5. SEVERABILITY/WAIVER/INTEGRATION

1. Severability. If any provision of this Agreement or portion thereof, or the application to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of the provisions, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby; provided, that if any material terms or provisions of these Operating Covenants are rendered invalid, void and/or unenforceable, or due to changes in the law such terms or provisions would materially alter the terms of the transactions contemplated herein, the parties agree to meet and negotiate in good faith to attempt to reform these Operating Covenants to accomplish the intent of the parties.

2. Waiver. A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right.

3. Integration. This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement.

4. Third Parties. No third-party beneficiaries are intended, and the only parties who are entitled to enforce the provisions of these Operating Covenants are the City, Mortgagees, Participant and their respective successors and assigns.

7.6. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California and is subject to the provisions of Government Code Section 53083.

7.7. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall constitute one original and all of which shall be one and the same instrument.

7.8. TERMINATION. This Agreement may be terminated only (i) by and upon expiration of the Term, (ii) by mutual written agreement of the parties, and (iii) by and pursuant to the provisions of Section 7.9 or 7.10 below. In the event of any termination of this Covenant, Owner (or its successor, as applicable) shall not be obligated to return any amounts previously paid to it by the City pursuant to the Program.

7.9. DEFAULT BY OWNER. If at any time during the Term, City contends that Owner has committed a material default with respect this Agreement, e.g., by failing to operate the Hotel as a Hotel, City shall deliver to Owner written notice of default which specifies in detail all facts alleged by City to constitute such default. For a period of thirty days thereafter, Owner will have the right to commence and complete cure of the alleged default; provided, however, if the alleged

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default is of such a nature as to reasonably require more than thirty days to cure, and the Parties so agree, Owner will have such addition time as is reasonably necessary to complete such cure.

Subject to Section 7.11 below, if Owner fails to timely cure such default, City shall then have the right to terminate this Agreement. (To the extent of any inconsistency between the provisions of this Section 7.9 and the provisions of Section 3.1 above, the provisions of this Section 7.9 shall prevail.)

7.10 DEFAULT BY CITY. If at any time during the Term, Owner contends that City has committed a material default with respect to this Agreement, Owner may deliver to City written notice of default that specifies in detail all facts alleged by Owner to constitute such default. For a period of thirty days thereafter, City will have the right to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty days to cure, and the Parties so agree, City will have such addition time as is reasonably necessary to complete such cure. Subject to Section 7.11 below, if City fails to timely cure such default, Owner shall then have the right to terminate this Agreement or exercise any and all other rights and remedies available at law and in equity, and each of such rights and remedies shall be cumulative and not exclusive.

7.11 MORTGAGE PROVISIONS. Anything in this Agreement to the contrary notwithstanding, with respect to any recorded mortgage or deed of trust given in good faith and for value and encumbering the Hotel (“Mortgage”), any holder thereof that has delivered to City a copy of such recorded Mortgage and current contact information (“Mortgagee”) will be entitled rights and benefits in accordance with the following:

1. City acknowledges and agrees that the rights and obligations of Owner under this Agreement may, with or without approval by City, be conditionally assigned by Owner to any Mortgagee as security for performance of Mortgage obligations.

2. While any Mortgage remains in effect, City will not amend or modify this Agreement in any material respect without receiving prior written approval from Mortgagee, which approval may not be unreasonably withheld, delayed or conditioned; provided, however, failure by Mortgagee to provide written approval or disapproval (and if disapproval the reasons therefor) within thirty days of delivery of request therefor shall be deemed to constitute approval by Mortgagee.

3. While any Mortgage remains in effect, in the event City delivers to Owner of any notice of default as referenced in either Section 3.1 or 7.9 above, City shall concurrently deliver a copy thereof to Mortgagee.

4. Delivery of any such notice of default notwithstanding, City will not terminate or initiate or pursue any action to terminate this Agreement as long as Mortgagee diligently (i) declares a default by Owner under the Mortgage, (ii) pursues foreclosure and/or other appropriate actions under the Mortgage, (iii) pays to City all amounts that would otherwise have been payable by Owner to City, and (iv) cures non-monetary defaults.

7.12 Operator Provisions. City acknowledges and agrees that operational obligations of Owner may, with or without consent of City, be assigned by Owner to any entity owned or wholly

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controlled by Owner or its Members or Hotel Operator of Owner’s choice, and, in connection therewith, such Hotel Operator may assume all or part of Owner’s Hotel operation obligations under this Agreement; provided, however, Owner shall retain ultimate responsibility for such Hotel operation obligations. City agrees that while any Hotel Operator agreement is in effect, and provided that City has been put on notice of such agreement and received contact information for such Operator, in the event City delivers to Owner of any notice of default as referenced in either Section 3.1 or 7.9 above, City shall concurrently deliver a copy thereof to the Operator.

7.13 RESERVED.

7.14 Cooperation. Each party agrees to and shall do and perform such other and further acts and properly execute and deliver such other and further documents as may be reasonably necessary, expedient or convenient to implement and/or effectuate the intents and purposes hereof.

City and Owner agree to cooperate with each other and/or with any Mortgagee or proposed Mortgagee, in a manner consistent with concepts and principles of good faith, fair dealing and commercial reasonableness, with respect to consideration, implementation and execution of any modification(s) to this Agreement reasonably requested by the City, Owner, Mortgagee or proposed Mortgagee.

7.15 Reasonable Approvals. Whenever this Agreement requires or calls for the approval or consent of any party hereto, such approval shall not be unreasonably withheld, delayed or conditioned.

7.16 Binding Arbitration. In the event of any dispute or controversy arising out of or relating to this Agreement, or the breach or performance of it, the parties shall reasonably attempt to resolve such dispute or controversy without resort to third party review or resolution. The parties shall first meet and confer on any such dispute or controversy. Such meeting(s) shall include any principal of the Owner and, at the discretion of the City, may include the City Manager and/or the City Council, either as a whole or through an ad hoc subcommittee designated by the City Council. Upon a determination by the parties that they are or will be unable to resolve the dispute or controversy on their own, then the parties shall submit the dispute, controversy or any remaining unresolved matter to binding arbitration, to be held in the Coachella Valley, and be conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association.

7.17 Incorporation of Recitals and Exhibits. Each of the recitals set forth above and each of the exhibits attached hereto are agreed to and made part of this Agreement.

7.18 Authority. Each party represents and warrants to the other that such party has full right, power and authority to sign, execute and enter into this Agreement. [END -- SIGNATURES ON NEXT PAGE]

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IN WITNESS WHEREOF, the City and Owner have executed this Operations Covenant by duly authorized representatives on the date first written hereinabove. "CITY"

THE CITY OF PALM SPRINGS,
a municipal corporation and charter city
By:

ATTEST:

Scott C. Stiles, ICMA-CM
City Manager
Brenda Pree, MMC, CERA
City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER
By:

Jeffrey Ballinger, Esq.

City Attorney
WR Palm Mountain Resort, LP,
a California Limited Partnership
By:

Name:

Title:

By:

Name:

Title:
[END OF SIGNATURES]

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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 State of California )
County of )
On before me, ,
Date Here Insert Name and Title of the Officer
personally appeared.

Name(s) of Signer(s)
,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
Signature of Notary Public
Place Notary Seal Above

OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description of Attached Document
Title or Type of Document: Document Date:

Number of Pages: Signer(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer’s Name:

Corporate Officer — Title(s):

Signer’s Name:

Corporate Officer — Title(s):

Partner — Limited General Partner — Limited General
Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other:

Signer Is Representing:

Other:

Signer Is Representing:
©2014 National NotaryAssociation • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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55575.38190\45222761.1
EXHIBIT “A”

LEGALDESCRIPTION
LOTS 1, 2, 3 & 4 BLK 15 MB 009/432 SD MAP OF PALM SPRINGS FOR TOTAL DESCRIPTION SEE

ASSESSORS MAPS

OPERATIONS COVENANT

FOR HOTEL INCENTIVE PROGRAM
1 A – Page 1074 of 1230

CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF A RESOLUTION OF INTENTION AND A RESOLUTION PRELIMINARILY APPROVING THE ENGINEER’S REPORT FOR

PROPOSED OLD LAS PALMAS UNDERGROUND UTILITY
ASSESSMENT DISTRICT NO. 1
FROM: Scott C. Stiles, City Manager
BY: Department of Engineering Services
SUMMARY:

The property owners within a roughly 30-acre area of the Old Las Palmas neighborhood submitted a petition requesting formation of an underground utility assessment district (Old Las Palmas Underground Utility Assessment District No. 1 [“AD 1”]). The City Council certified the petition for AD 1 on October 22, 2025. This action requests City Council declare its intention to levy assessments and issue bonds to finance the undergrounding project, approve the Preliminary Assessment Engineer’s Report, and set October 28, 2026, as the time and place for a public hearing for AD 1.

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

CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO

TAKE PROCEEDINGS PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 1913 AND TO ISSUE BONDS PURSUANT TO THE IMPROVEMENT BOND ACT OF 1915, AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN

CONNECTION THEREWITH, ALL RELATING TO THE FORMATION OF OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 1”; and 2) Adopt Resolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, PRELIMINARILY APPROVING THE ASSESSMENT ENGINEER’S REPORT AND FIXING THE TIME AND PLACE OF

THE PUBLIC HEARING FOR OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 1.”
BUSINESS PRINCIPAL DISCLOSURE:

N/A.

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City Council Staff Report
August 26, 2026 -- Page 2
Underground Utility Assessment District No.1
BACKGROUND:

Owners of property located in the proposed assessment district submitted a petition to the City of Palm Springs in August 2025 requesting formation of a special assessment district to underground overhead utilities within a portion of the Old Las Palmas neighborhood. On October 6, 2025, the assessment engineer certified that owners representing more than 60 percent of the assessable property area within proposed AD 1 had signed a petition for undergrounding overhead utilities. On October 22, 2025, the City Council adopted Resolution No. 25346 accepting and certifying the petition for AD 1.

STAFF ANALYSIS:

The Municipal Improvement Act of 1913 (Streets and Highways Code Division 12, Section 10000 et. seq.) governs the procedures used to create the assessment district. Bonds issued under the Improvement Bond Act of 1915 (Streets and Highways Code Division 10, Section 8500 et. seq.) are issued to finance assessments not paid in cash within 30 days after confirmation of the assessment; the proposed Resolution of Intention provides for bonds with a maximum 20-year maturity.

If, following the public hearing and balloting, AD 1 is formed an assessment lien would be recorded on the title of properties included in the district. Thereafter, a cash collection period would take place to provide property owners with an opportunity to prepay their assessment and remove the assessment lien. A second cash collection period is also anticipated prior to the bond sale, which is anticipated to occur prior to construction and after design is complete. Design is estimated to be completed in twelve (12) to eighteen (18) months. The total estimated assessment for Proposed AD 1 is shown in Table 1:

Table 1 – Proposed Assessment District No. 1

ITEM COST
Cost of Design and Construction $4,767,000
Incidental Costs and Expenses $697,500
Financing (Bond) Costs $475,000
Estimated Total Cost: $5,939,500
In addition to payment of the assessment, each property owner will be responsible for the costs of connecting the main service conduit in the public right-of-way to the property owner’s home or business, if applicable. The cost to the property owner for this conversion varies depending on the condition and location of the current electrical service. Each property owner is encouraged to contact a licensed electrical contractor to assess their particular property needs.

Preliminary Engineer’s Report:

The preliminary Engineer’s Report describes the methodology for determining the proportionate special benefit for each property within the proposed district, and the resulting allocation of project costs.

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Underground Utility Assessment District No.1
Special Benefits:

To equitably assess benefits, the Assessment Engineer related each property’s proportional special benefits to the special benefits of all other properties within the district. Apportionments established for districts formed under the “Municipal Improvement Act of 1913” and Article XIIID of the State Constitution, commonly utilize a weighted apportionment method using a defined unit of measurement to calculate a basic unit of assessment. Collectively, the three benefit categories reflect the proportional special benefit each property within the district will receive. The total cost of the district will be apportioned using the benefit categories below with assigned weighted percentages to each benefit category, based upon the engineer’s field review of the parcels within the district and public testimony. The weighted apportionment of the benefit categories for the proposed district shown in Table 2:

Table 2 – Weighted Benefit
Benefit Category Percentage
Safety Benefit 33.33%
Aesthetics Benefit 33.33%
Reliability Benefit 33.33%
Safety Benefit:

Undergrounding the overhead facilities eliminates the threat to structures or property, including any occupants within, from being damaged or harmed by downed utility lines and poles. The removal of overhead facilities would also mitigate the risks of blocked driveways and access to properties. The removal of the fixed obstructions (existing utility poles, guy wires, and related facilities), and the mitigation of the potential delay by emergency responders, who will neither cross a downed utility line, nor set up equipment if an overhead power line is in the way, has been evaluated in the Engineer’s Report as part of the special-benefit and general-benefit analysis required by Article XIIID. All parcels within the district receive a special benefit from the undergrounding of poles and wires and share in the cost associated with this safety benefit as apportioned in the Engineer’s Report. The assessment report provides a breakdown for each parcel.

Aesthetics Benefit:

Removing the overhead utilities will improve the overall neighborhood aesthetics for all properties within the district. The special benefit results from improved aesthetics of the streetscape and airspace directly surrounding each property. Each parcel within the district will receive an aesthetic benefit as determined by total parcel area. Parcels that are directly adjacent to, or in the proximity of, overhead facilities will receive an aesthetic benefit as detailed in the assessment report.

Reliability Benefit:

Utility undergrounding provides enhanced reliability to parcels due to having new wires and equipment underground which reduces the threat of service interruptions or outages

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Underground Utility Assessment District No.1
if poles and wires are downed. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions, such as trees. All properties that connect to the new underground system receive a reliability benefit. This benefit is based on the average area of the parcels in the District.

Assessments and Costs:

There are 51 assessable parcels in the proposed Old Las Palmas Underground Utility Assessment District No. 1. Proposed individual assessments range from approximately $92,000 to $139,000. Assessments vary due to property size and benefits received.

In addition to the assessments, each property owner who currently receives overhead utility service will be required to hire a contractor to underground the overhead services on their private property. Underground connection costs can vary depending on the terrain, landscaping and hardscaping on the property. This amount is in addition to the assessment amounts.

Schedule:

The Assessment Engineer will mail the Notice of Assessment accompanied by an Assessment Ballot to each affected property owner informing them of their preliminary assessment amounts and the time and place for a public hearing to tally the votes. The ballot also indicates how, when, and to whom the ballots should be returned. Ballots remain sealed until the public hearing and final balloting. All assessment ballots submitted to the City Clerk prior to the close of the public hearing will be tabulated in accordance with Article XIIID, Section 4 of the California Constitution (Proposition 218) and Government Code Section 53753.

A Preliminary Engineer’s Report has been prepared by NV5 and is ready for City Council consideration (Attachment A). Staff recommends City Council adopt the Resolution of Intention to form the district (Attachment B), and the resolution preliminarily approving the Engineer’s Report to commence the process for a public hearing and final balloting by affected property owners (Attachment C). The on-call professional services agreement with NV5 has been included in Attachment D.

ENVIRONMENTAL ASSESSMENT:

On October 22, 2025, City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15302(d) (California Code of Regulations, title 14, Section 15302(d)) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding).

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure

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Underground Utility Assessment District No.1
and Facilities.

FISCAL IMPACT:

No fiscal impact to the City’s General Fund is anticipated. Funding of the Engineer’s Report and balloting has been deposited with the City by the Old Las Palmas Neighborhood Committee. If the Assessment District is successfully formed, and once the City receives funding from the Proposed District Bond Issue, the City will reimburse the deposit out of the bond funds.

REVIEWED BY:

Acting City Engineer: Francisco Jaime
Assistant City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:

A. Preliminary Assessment Engineer’s Report
B. Resolution No. _____
C Resolution No. _____
D. Professional Services Agreement 25Q085 with NV5, Inc.

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Attachment A
Preliminary Engineer's Report

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PRELIMINARY ENGINEER’S REPORT FOR
OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 1 PREPARED UNDER THE PROVISIONS OF THE MUNICIPAL IMPROVEMENT ACT OF 1913

CITY OF PALM SPRINGS
May 18, 2026
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TABLE OF CONTENTS
Page
Introduction and Certifications ............................................................................................ 2 PART I Plans and Specifications.......................................................................................... 6 PART II Cost Estimate ......................................................................................................... 7 PART III Assessment Roll and Method of Assessment Spread ........................................... 8 Table 1 - Assessment Roll ....................................................................................... 10 Table 2 - Debt Limit Valuation................................................................................ 11 Exhibit 1-Method and Formula of Assessment Spread ........................................... 12 PART IV Annual Administrative Assessment...................................................................... 18 PART V Diagram of Assessment District ............................................................................ 19 PART VI Description of Facilities........................................................................................ 21 Right-of-Way Certificate ...................................................................................................... 22 Certification of Completion of Environmental Proceedings................................................. 23

APPENDIX
A. Assessment Calculations
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AGENCY: CITY OF PALM SPRINGS
PROJECT: OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 1 TO: CITY COUNCIL
ENGINEER'S "REPORT" PURSUANT TO THE
PROVISIONS OF SECTIONS 2961 AND 10204

OF THE STREETS AND HIGHWAYS CODE
The purpose of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area known as the Old Las Palmas Underground Utility Assessment District No. 1.

The proposed underground utility improvements will provide conversion to an upgraded utility system and will enhance neighborhood aesthetics, safety and reliability.

The construction of these improvements will conform to existing City of Palm Springs, Southern California Gas Company, Southern California Edison, Spectrum, and Frontier. By virtue of such improvements, the proposed improvements are of special and direct benefit to these properties.

Pursuant to the provisions of Article XIIID of the State Constitution, Part 7.5 of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931'', being Division 4 of the Streets and Highways Code of the State of California, and the "Municipal Improvement Act of 1913", being Division 12 of said Code, and the Resolution of Intention, adopted by the City Council of the CITY OF PALM SPRINGS, State of California, in connection with the proceedings for Old Las Palmas Underground Utilities Assessment District No. 1 (hereinafter referred to as the “Assessment District”), I, Jeffrey M. Cooper, P.E., a Registered Professional Engineer and authorized representative of NV5, Inc., the duly appointed Engineer of Work, herewith submits the “Report” for the Assessment District, consisting of six (6) parts as stated below.

PART I
This part contains the plans and specifications which describe the general nature, location and extent for the proposed improvements to be constructed, and are filed herewith and made a part hereof.

Said plans and specifications are on file in the Office of the Superintendent of Streets/City Engineer.

PART II
This part contains an estimate of the cost of the proposed improvements, including capitalized interest, if any, incidental costs and expenses in connection therewith as set forth herein and attached hereto.

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PART III
This part consists of the following information:

A. A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof.

B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated for the Assessment District, which would require an investigation and report under the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" against the total area proposed to be assessed.

C. The total true value, determined from the latest Assessor's roll, of the parcels of land and improvements which are proposed to be assessed.

PART IV
This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the CITY OF PALM SPRINGS, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both.

PART V
This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment.

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PART VI
This part shall consist of the following information:

A. Description of facilities
B. Right-of-Way Certificate
C. Environmental Certificate
This report is submitted on May 18, 2026
NV5, INC.

JEFFREY M. COOPER, P.E.

R.C.E. No. 31572

ENGINEER OF WORK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
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Preliminary approval by the CITY COUNCIL of the CITY OF PALM SPRINGS, CALIFORNIA, on the _____ day of _______________, 2026.
____________________________

CITY CLERK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
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PART I
Plans and Specifications
The plans and specifications to construct the utility undergrounding improvements, and any ancillary improvements thereof, for the area generally described as Old Las Palmas area No. 1, area approximately bounded by N Palm Canyon Drive, W Chino Drive, W Alejo Road, N Via Monte Vista, W Canyon Place, and W Mountain View Place, describe the general nature, location and extent of the improvements for Assessment District are referenced herein and incorporated as if attached and a part of this Report.

Said Plans and Specifications for the improvements are on file in the office of the Superintendent of Streets/City Engineer.

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Part II
Cost Estimate
PALM SPRINGS - OLD LAS PALMAS ASSESSMENT DISTRICT NO. 1 CALCULATION Estimate
Length in ft. Cost per ft.

CONSTRUCTION COSTS:

Utility Undergrounding Construction Cost 4,767 $1,000.00 $ 4,767,000.00 $ 4,767,000.00
TOTAL CONSTRUCTION $ 4,767,000.00
INCIDENTIAL EXPENSES:

Total Incidental Expenses $ 697,500.00
Subtotal Incidental Expenses $ 697,500.00
Construction $ 4,767,000.00
Subtotal Incidental & Construction $ 5,464,500.00

FINANCIAL COSTS
Financing + Bond Costs $ 475,000.00
Subtotal & Financial Costs $ 475,000.00
TOTAL ESTIMATE $ 5,939,500.00
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Part III
Assessment Roll and Method of Assessment Spread
WHEREAS, on _________________, 2026 the City Council of the CITY OF PALM SPRINGS, State of California, did, pursuant to the provisions of the 1913 Act "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code, of the State of California, adopt its Resolution of Intention No. 2026-____, for the installation and construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith (the “improvements”), in a special assessment district known and designated as “Old Las Palmas Underground Utility Assessment District No. 1” (hereinafter referred to as the "Assessment District"); and WHEREAS, said Resolution of Intention, as required by Law, did direct the Engineer of Work to make and file a "Report", consisting of the following as required by Section 10204 of the Act:
a. Plans and Specifications
b. A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvement, if the works, appliances, or property are to be acquired as part of the improvement.
c. Cost Estimates
d. Assessment Diagram showing the Assessment District and the subdivisions of land therein; e. A proposed assessment of the costs and expenses of the works of improvement levied upon the parcels within the boundaries of the Assessment District; f. The proposed maximum annual assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds.

For particulars, reference is made to the Resolution of Intention as previously adopted.

NOW, THEREFORE, I, JEFFREY M. COOPER, P.E., the authorized representative of NV5, pursuant to Article XIIID of the California Constitution and the “Municipal Improvement Act of 1913", do hereby submit the following:

1. Pursuant to the provisions of Law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein.

2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll.

3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein.

4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915"), to represent all unpaid assessments, which bonds shall be issued in one or more series, each with a DRAFT

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term not to exceed the legal maximum term as authorized by law, THIRTY-NINE (39) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum.

5. By virtue of the authority contained in said "Municipal Improvement Act of 1913", and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below:

For particulars as to the individual assessments and their descriptions, reference is made to Table l (Assessment Roll) attached hereto.

6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit I), which is attached hereto, referenced and so incorporated.

As Preliminary Approved As Confirmed
Estimated Construction Cost: $ 4,767,000.00 $
Estimated Incidental Expenses: $ 697,500.00 $
Estimated Financial Costs: $ 475,000 $
Estimated Total to Assessment: $ 5,939,500.00 $
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Table 1 - Assessment
Asmt No.

Assessor's
Parcel Number
Total
True Value
Existing
Liens
Assessments as
Preliminarily Approved
Value
To Lien
Ratio
1 505-291-002 757,708.00 $ - $ 128,278.70 5.9
2 505-291-003 2,511,241.00 $ - $ 112,494.37 22.3
3 505-312-002 156,160.00 $ - $ 96,711.55 1.6
4 505-312-004 996,839.00 $ - $ 112,494.37 8.9
5 505-291-004 1,936,218.00 $ - $ 112,494.37 17.2
6 505-291-005 855,386.00 $ - $ 111,837.64 7.6
7 505-291-006 1,294,381.00 $ - $ 111,837.64 11.6
14 505-275-001 1,752,185.00 $ - $ 115,782.59 15.1
15 505-293-001 2,576,570.00 $ - $ 115,782.59 22.3
16 505-293-002 1,577,157.00 $ - $ 115,125.85 13.7
17 505-293-005 8,913,580.00 $ - $ 138,143.34 64.5
18 505-282-007 1,143,403.00 $ - $ 105,917.95 10.8
19 505-282-011 5,406,000.00 $ - $ 139,458.32 38.8
20 505-282-010 2,301,214.00 $ - $ 136,170.11 16.9
21 505-275-005 2,623,188.00 $ - $ 134,855.13 19.5
22 505-282-001 1,823,040.00 $ - $ 92,765.09 19.7
23 505-282-002 927,167.00 $ - $ 97,369.80 9.5
24 505-283-003 1,831,551.00 $ - $ 112,494.37 16.3
25 505-283-004 689,625.00 $ - $ 106,576.19 6.5
26 505-284-005 2,313,732.00 $ - $ 115,125.85 20.1
51 505-301-004 258,638.00 $ - $ 137,485.09 1.9
52 505-301-005 398,722.00 $ - $ 121,044.03 3.3
53 505-301-006 2,494,666.00 $ - $ 105,917.95 23.6
54 505-321-004 3,927,000.00 $ - $ 117,099.08 33.5
55 505-321-003 2,949,623.00 $ - $ 134,557.71 21.9
56 505-323-002 5,736,889.00 $ - $ 111,837.64 51.3
57 505-323-001 1,834,908.00 $ - $ 111,837.64 16.4
58 505-323-004 1,750,000.00 $ - $ 111,837.64 15.6
59 505-323-003 1,292,987.00 $ - $ 111,837.64 11.6
61 505-321-005 3,000,000.00 $ - $ 99,341.52 30.2
62 505-321-001 3,460,651.00 $ - $ 117,099.08 29.6
63 505-301-010 2,347,368.00 $ - $ 116,440.83 20.2
64 505-301-009 4,538,628.00 $ - $ 116,440.83 39
65 505-301-001 3,138,758.00 $ - $ 133,540.14 23.5
66 505-294-007 2,961,294.00 $ - $ 138,800.08 21.3
67 505-294-008 998,390.00 $ - $ 111,837.64 8.9
68 505-294-009 1,776,526.00 $ - $ 111,179.39 16
69 505-294-006 3,921,162.00 $ - $ 121,044.03 32.4
70 505-294-005 2,314,216.00 $ - $ 113,152.62 20.5
71 505-294-004 920,034.00 $ - $ 113,152.62 8.1
72 505-294-003 3,288,579.00 $ - $ 112,494.37 29.2
73 505-294-002 1,854,518.00 $ - $ 112,494.37 16.5
74 505-294-001 1,560,816.00 $ - $ 111,837.64 14
75 505-311-008 2,047,353.00 $ - $ 120,387.29 17
76 505-311-006 349,791.00 $ - $ 120,387.29 2.9
77 505-311-005 2,592,741.00 $ - $ 120,387.29 21.5
78 505-311-004 4,334,999.00 $ - $ 120,387.29 36
79 505-311-003 7,089,000.00 $ - $ 120,387.29 58.9
80 505-311-002 1,990,490.00 $ - $ 112,494.37 17.7
81 505-311-001 4,457,073.00 $ - $ 121,702.27 36.6
82 505-312-013 $ 78,067.00 - $ 99,341.52 0.8
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Table 2
Debt Limit Valuation
A. ESTIMATED BALANCE TO ASSESSMENT (Not including city owned parcels) $5,939,500.00 B. UNPAID SPECIAL ASSESSMENTS $0
TOTAL A& B $5,939,500.00
C. TRUE VALUE OF PARCELS (Not including city owned parcels) $122,050,232.00 AVERAGE VALUE TO LIEN RATIO 20.5:1
* Unpaid Special Assessments shall consist of the total principal sum of all unpaid special assessments previously levied or proposed to be levied other than in the instant proceedings. ** True Value of Parcels means the total value of the land and improvements as estimated and shown on the last equalized roll of the County or as otherwise reasonably calculated.

This report does not represent a recommendation of parcel value, economic viability or financial feasibility, as that is not the responsibility of the Assessment Engineer.

CERTIFICATION
I, the undersigned Assessment Engineer, do hereby certify that (i) the total amount of the principal sum of the special assessments proposed to be levied, together with the principal amount of previously levied special assessments, as set forth above, do not exceed one-half (1/2) the total true value of the parcels proposed to be assessed, and (ii) the amount proposed to be assessed upon any parcel does not exceed one-half of the true value of the parcel.

EXECUTED ON MAY 18, 2026
NV5, INC.

JEFFREY M. COOPER, P.E.

R.C.E. No. 31572

ENGINEER OF WORK

CITY OF PALM SPRINGS
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STATE OF CALIFORNIA

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Exhibit 1
Method and Formula of Assessment Spread
Since the improvements are to be funded by the levying of assessments, the "Municipal Improvement Act of 1913" and Article XIIID of the State Constitution require that assessments must be based on the special benefit that the properties receive from the works of improvement. In addition, Section 4 of Article XIIID of the State Constitution requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides that only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. It also provides that parcels within a district that are owned or used by any public agency, the State of California, or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. Neither the Act nor the State Constitution specifies the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings.

The responsibility for recommending an apportionment of the costs to properties which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it will receive from the improvements, an analysis has been completed and is used as the basis for apportioning costs to each property within the Assessment District.

Based upon an analysis of the special benefit to be received by each parcel from the construction of the works of improvement, the Assessment Engineer recommends the apportionment of costs as outlined below. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and tabulating the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits received by each parcel within the Assessment District. Ballot tabulation will be done at that time and, if a majority of the returned ballots weighted by assessment amount are not in opposition to the Assessment District, the City Council may form the Assessment District.

The following sections set forth the methodology used to apportion the costs of the improvements to each parcel.

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SPECIAL BENEFITS
In further making the analysis, it is necessary that the properties receive a special benefit distinguished from general benefits conferred on real property located in the District or to the public at large.

The purpose of this Assessment District is to provide the financing to underground existing overhead electrical, telephone and cable facilities as well as rehabilitate the affected portions of streets within the District. These facilities are the direct source of service to most properties within the Assessment District.

The proposed replacement of existing overhead utility facilities (power, telephone and cable facilities) with underground facilities and removal of the existing utility poles and the overhead wires will provide a special benefit to the parcels connected to and adjacent to, or in near proximity of, the facilities as follows:
• Improved Aesthetics Benefit. This benefit relates to the improved aesthetics of the streetscape due to the removal of overhead wires and utility poles. The Aesthetics benefit includes any and all benefit from viewing a pole at each property. The removal of guy wires and other support structures related to the overhead facilities are included in the definition of improved aesthetics.

Properties that are directly adjacent to, or in proximity of, overhead facilities receive an aesthetic benefit. This benefit is based on the area of the parcel. • Safety Benefit. This benefit relates to the additional safety of having the overhead distribution wires placed underground and having the power poles removed, which eliminates the threat of downed utility lines and poles due to wind, rain and other unforeseeable events. Falling facilities can lead to personal injuries and damage to structures, including fire. Properties immediately adjacent to, or in proximity of, the facilities usually have a greater risk. Properties that are adjacent to, or in proximity of, overhead facilities receive a safety benefit. This benefit is based on the average area of the parcels in the District.
• Reliability Benefit. This benefit relates to the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions (such as trees). Properties that are connected to, or have the ability to connect to, the facilities proposed to be undergrounded receive a reliability benefit. This benefit is based on the average area of the parcels in the District.

By virtue of such special benefits, the proposed improvements will provide a higher level of service, increase the desirability of the properties and will specifically enhance the values of the properties within the Assessment District. Therefore, the proposed improvements are of direct and special benefit to these properties.

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GENERAL BENEFITS
Section 4 of Article XIIID requires that the general benefits imparted by the utility undergrounding project be separated from the special benefits and that only the special benefit portion of the costs of the project be assessed against those parcels which are identified as receiving special benefits. Separating the general from the special benefits requires an examination of the facts and circumstances of the project and the property being assessed.

In this particular assessment district, the streets along which the existing overhead utility facilities are being undergrounded function as local and collector streets. No other roadways are designated as an arterial, a major arterial or a scenic corridor in the Transportation Element of the City's General Plan.

Furthermore, the City has an established network of arterial streets which appear to function as intended to provide for the movement of traffic around and through the community at large without the need to utilize local collector streets for such purposes. Under these circumstances, any use of the streets within the assessment district as ''through" streets is incidental.

The properties situated within the assessment district are residential.

Based on these facts and circumstances, any general benefits to the property within the Assessment District in general, to the surrounding community and to the public at large from the project of undergrounding these local overhead utility facilities on the local streets and alleys, such as to the general public visiting in cars, on bikes or on foot, are incidental and do not exceed five percent (5%) of the estimated project costs. This general benefit portion of the cost is more than offset by the approximate 20% percent utility company contribution. Therefore, the remainder of the project design and construction costs represents the local and special benefits to the parcels within the Assessment District.

Because only the net amount of $5,939,500 is apportioned to the parcels within the District, no parcel is assessed more than its proportional share of the special benefits from the improvements.

METHODOLOGY
Based upon the findings described above, the special benefit received by the properties within the boundaries of the Assessment District is the conversion from an overhead to an underground utility system resulting in additional safety, enhanced reliability, and improved aesthetics to the adjacent properties.

Based on these conditions, it is our conclusion that the improvements specially benefit all assessed properties in the Assessment District.

To establish the benefit to the individual parcels within the Assessment District, the highest and best use of each property is considered. For example, a vacant property is considered developed to its highest potential and connected to the system.

The properties within this Assessment District are zoned primarily residential, with some commercial and institutional zones. There is a direct correlation between the size of a property and the extent to which a property may develop. Because parcel size is one of the main limiting factors for what can be built on a property, or the extent the property is developed, the size of each parcel is used as the base unit for measuring benefit. In this case, only the aesthetic benefit is considered proportional to the parcel size.

This is because aesthetic benefits arise from the removal of overhead wires and support structures.

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Old Las Palmas Underground Utility Assessment District No. 1 Preliminary Engineer's Report
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Larger parcels receive more aesthetic benefits due to the removal of more of these items adjacent to them compared to smaller parcels. Reliability and safety benefits, however, are not dependent on parcel size and are instead based on a unit basis or the average parcel size in the district.

The special benefits from the undergrounding of overhead utilities are categorized into the three (3) distinct benefits identified above. All parcels within the District receive 3 of the 3 benefits. For the Improved Aesthetics Benefit, the parcel area is multiplied by 1 to calculate the "Aesthetics Benefit Area.” For the Reliability Benefit and Safety Benefit, the average parcel area within the district is determined and applied to the parcel, the “Reliability Benefit Area” and “Safety Benefit Area” are the average size of parcels in the District. The Assessed Benefit Area per parcel is equal to the Aesthetics Benefit Area plus the Safety Benefit Area plus the Reliability Benefit Area, divided by 3.

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Old Las Palmas Underground Utility Assessment District No. 1 Preliminary Engineer's Report
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ASSESSMENT APPORTIONMENT
Each parcel will be apportioned its fair share of the construction costs based on the Assessed Benefit Area calculated for each property.

Incidental Expenses and Financial Costs have been assessed to the entire Assessment District on a prorata basis relative to the total construction cost allocations.

The individual assessment calculations are provided in Appendix A. For particulars to the Assessment Roll, reference is made to Table 1 in Part III of this report.

In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the special benefits that each parcel receives from the works of improvement.

Federal Income Tax Component of Contribution Tax (ITCC) has not been included. The ITCC is a tax assessed whenever private party contributions in aid of construction (CIAC) are made. To date, underground utility districts have not been assessed this tax as underground utility districts are viewed as providing public benefit by increasing community aesthetics and public safety.

Dated: May 18, 2026
NV5, INC.

JEFFREY M. COOPER, P.E.

R.C.E. No. 31572

ENGINEER OF WORK

CITY OF PALM SPRINGS
DRAFT

STATE OF CALIFORNIA

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City of Palm Springs
Old Las Palmas Underground Utility Assessment District No. 1 Preliminary Engineer's Report
May 18, 2026 | 17
I, as CITY CLERK of the CITY OF PALM SPRINGS, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the __________ day of __________________, 2026.

CITY CLERK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
I, as CITY CLERK of the CITY OF PALM SPRINGS, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF PALM SPRINGS, CALIFORNIA, on ___________ day of ___________________, 2026.

CITY CLERK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
I, as CITY CLERK of the CITY OF PALM SPRINGS, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of the CITY OF PALM SPRINGS, CALIFORNIA, on ___________ day of ___________________, 2026.

CITY CLERK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
I, as SUPERINTENDENT OF STREETS/CITY ENGINEER of the CITY OF PALM SPRINGS, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was recorded in my office on ___________ day of ____________________, 2026.

SUPERINTENDENT OF STREETS/CITY ENGINEER

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
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Old Las Palmas Underground Utility Assessment District No. 1 Preliminary Engineer's Report
May 18, 2026 | 18

PART IV
Annual Administrative Assessment
A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District to pay for necessary costs and expenses incurred by the CITY OF PALM SPRINGS, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration or registration of any bonds and reserve or other related funds, or both. The maximum assessment is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code and shall not exceed eighty eight dollars ($88) per parcel per year, subject to an annual increase based on the Consumer Price Index (CPI), or 3%, whichever is greater, during the preceding year ending in January, for all Urban Consumers in the Los Angeles, Riverside, and Orange County areas. The exact amount of the administration charge will be established each year by the Superintendent of Streets.

It should be expressly understood that the annual administrative assessment, as set forth above, is separate from, and in addition to, (a) the sixteen dollar ($16.00) per-parcel collection fee that may be added to each annual assessment under California Streets and Highways Code Sections 8682 (to cover expenses of collection) and 8682.1 (to cover bond administration costs), and (b) any fees payable to the City in connection with Assessment prepayments after the issuance of Bonds, apportionment of Assessments to reflect parcels splits or parcel mergers, and late charges and penalties for delinquent Assessment installments.

The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement.

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Old Las Palmas Underground Utility Assessment District No. 1 Preliminary Engineer's Report
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PART V
Diagram of Assessment
A reduced copy of the Assessment Diagram is attached hereto. Full-sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Palm Springs.

As required by the Act, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part III Table I. The Assessor's Parcel Number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of Riverside County for the boundaries and dimensions of each parcel of land.

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W MOUNTAIN VIEW PL

W CANYON PL

MERITO PL

MERITO PL N VIA MONTE VISTA N CAHUILA RD N BELARDO RDN PATENCIO RD N MISSION RD N PRESCOTT DR N PATENCIO RD

W ALEJO RD

W CHINO DR

CITY OF PALM SPRINGS
OLD LAS PALMAS ASSESSMENT DISTRICT NO.1

ASSESSMENT

DISTRICT

BOUNDARY
05/18/2026
PREPARED BY:

ASSESSMENT DIAGRAM
LEGEND

ON-SITE PARCEL

OFF-SITE PARCELS

POWER POLE TO BE REMOVED

ASSESSMENT DISTRICT AREA BOUNDARY

POWER LINE TO BE REMOVED
PARCELS: 51
POWER POLES TO BE REMOVED: 37
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Old Las Palmas Underground Utility Assessment District No. 1 Preliminary Engineer's Report
May 18, 2026 | 21
Part VI
Description of Facilities
Section 10100 of the Act provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Act to be installed, or improved under the provisions of the Act, including the acquisition of required right-of-way and/or property. For the general location of the improvements to be constructed referenced is hereby made to the Plans and Specifications described in Part I of this report.

The following improvements are proposed to be constructed and installed in the general location referred to as the Old Las Palmas Underground Utility Assessment District No. 1.

1. Acquisition of any required easements or rights-of-way.

2. Removal of existing utility poles.

3. Removal of overhead resident service drops.

4. Construction of mainline underground power, telephone and cable conduit, with appurtenant manholes and pull boxes, and installation of cabling, wiring and other facilities.

5. Construction of service conduit and appurtenances.

The improvements will be designed by City of Palm Springs, Southern California Gas Company, Southern California Edison, Spectrum, and Frontier. The utility companies will be responsible for inspecting the work for their facilities and the City of Palm Springs will inspect the work to ensure conformance to City standards and specifications where applicable.

The City may construct additional pavement rehabilitation as needed for the project.

Once completed, the underground facilities will become the property and responsibility of City of Palm Springs, Southern California Gas Company, Southern California Edison, Spectrum, and Frontier.

Each owner of property located within the Assessment District will be responsible for arranging for and paying for work on his or her property necessary to connect facilities constructed by the public utilities in the public streets and alleys to the points of connection on the private property. Conversion of individual service connections on private property is not included in the work done by the Assessment District.

The estimated time for completion of the undergrounding of the utilities is 12 months after the sale of bonds. Property owners will be required to provide necessary underground connections following the receipt of the City of Palm Springs’s connection notices to property owners.

Failure to convert individual service connections on private property may result in a recommendation to the City Council that the public utilities be directed to discontinue service to that property pursuant to Section 8.04.455 of the Municipal Code. Overhead facilities cannot be removed until all overhead service has been discontinued.

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Right-of-Way Certificate

STATE OF CALIFORNIA

RIVERSIDE COUNTY

CITY OF PALM SPRINGS
The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct.

That at all time herein mentioned, the undersigned was, and now is, the authorized representative of the duly appointed SUPERINTENDENT OF STREETS/CITY ENGINEER of the CITY OF PALM SPRINGS, CALIFORNIA.

That there have now been instituted proceedings under the provisions of Article XIIID of the California Constitution, and the "Municipal Improvements Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public improvements in a special assessment district known and designated as Old Las Palmas Underground Utility Assessment District No. 1 (hereinafter referred to as the "Assessment District").

THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS:

All easements or right-of-way necessary for the construction and installation of the public improvements of the Assessment District either have been obtained or are in process of being obtained and will be obtained and in the possession of the affected utility company, the City, Riverside County or the State of California prior to commencement of the construction and installation of such public improvements.

EXECUTED this day of , 2026 at CITY OF PALM SPRINGS,
California.

SUPERINTENDENT OF STREETS/CITY ENGINEER

CITY OF PALM SPRINGS
State of California
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By:

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Old Las Palmas Underground Utility Assessment District No. 1 Preliminary Engineer's Report
May 18, 2026 | 23
Certificate of Completion of Environmental Proceedings

STATE OF CALIFORNIA

RIVERSIDE COUNTY

CITY OF PALM SPRINGS
The undersigned, under penalty of perjury, CERTIFIES as follows:

1. That I am the person who authorized to prepare and process all environmental documentation as needed as it relates to the formation of the special Assessment District being formed pursuant to the provisions of the "Municipal Improvement Act of 1913" being Division 12 of the Streets and Highways Code of the State of California, said special Assessment District known and designated as OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 1 (hereinafter referred to as the "Assessment District").

2. The specific environmental proceedings relating to this Assessment District that have been completed are as follows:

CEQA compliance review:

The proposed project is Categorically Exempt (Class 2) from the provisions of CEQA (replacement or reconstructions).

3. I do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary.

EXECUTED this day of , 2026 at CITY OF PALM SPRINGS,
California.

By:

CITY OF PALM SPRINGS
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STATE OF CALIFORNIA

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May 18, 2026 | 24

APPENDIX
A. AssessmentCalculations
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ASSESSMENT CALCULATIONS
Property
Address
Asmt
No.

Assessor's Parcel
Number
Parcel
Area (sf)
Assigned
Connections
Aesthetics
Benefit
(YES/NO)
Aesthetics
Benefit Area
Safety
Benefit
(YES/NO)
Safety Benefit
Area
Reliability
Benefit
(YES/NO)
Reliability
Benefit Area
Assessed
Benefit Area
Total Design,
Construction
Incidental
Expenses
Financial
Costs
Final
Total
Assessment
696 N VIA MONTE VIS 1 505-291-002 33,541 1 YES 33,541 YES 25,713.22 YES 25,713.22 28,322.48 $ 102,955.56 $ 1 5,064.30 $ 1 0,258.84 $ 128,278.70 610 N VIA MONTE VIS 2 505-291-003 23,086 1 YES 23,086 YES 25,713.22 YES 25,713.22 24,837.48 $ 90,287.17 $ 1 3,210.68 $ 8,996.52 $ 112,494.37 3 505-312-002 12,632 1 YES 12,632 YES 25,713.22 YES 25,713.22 21,352.81 $ 77,620.00 $ 1 1,357.24 $ 7,734.32 $ 96,711.55 591 N PATENCIO RD 4 505-312-004 23,086 1 YES 23,086 YES 25,713.22 YES 25,713.22 24,837.48 $ 90,287.17 $ 1 3,210.68 $ 8,996.52 $ 112,494.37 500 W CRESCENT DR 5 505-291-004 23,086 1 YES 23,086 YES 25,713.22 YES 25,713.22 24,837.48 $ 90,287.17 $ 1 3,210.68 $ 8,996.52 $ 112,494.37 701 N PATENCIO RD 6 505-291-005 22,651 1 YES 22,651 YES 25,713.22 YES 25,713.22 24,692.48 $ 89,760.08 $ 1 3,133.56 $ 8,944.00 $ 111,837.64 777 N PATENCIO RD 7 505-291-006 22,651 1 YES 22,651 YES 25,713.22 YES 25,713.22 24,692.48 $ 89,760.08 $ 1 3,133.56 $ 8,944.00 $ 111,837.64 790 N MISSION RD 14 505-275-001 25,264 1 YES 25,264 YES 25,713.22 YES 25,713.22 25,563.48 $ 92,926.27 $ 1 3,596.83 $ 9,259.49 $ 115,782.59 776 N MISSION RD 15 505-293-001 25,264 1 YES 25,264 YES 25,713.22 YES 25,713.22 25,563.48 $ 92,926.27 $ 1 3,596.83 $ 9,259.49 $ 115,782.59 348 W MERITO PL 16 505-293-002 24,829 1 YES 24,829 YES 25,713.22 YES 25,713.22 25,418.48 $ 92,399.18 $ 1 3,519.70 $ 9,206.97 $ 115,125.85 300 W MERITO PL 17 505-293-005 40,075 1 YES 40,075 YES 25,713.22 YES 25,713.22 30,500.48 $ 110,872.85 $ 1 6,222.74 $ 1 1,047.75 $ 138,143.34 18 505-282-007 18,730 1 YES 18,730 YES 25,713.22 YES 25,713.22 23,385.48 $ 85,008.98 $ 1 2,438.38 $ 8,470.58 $ 105,917.95 735 N PRESCOTT DR 19 505-282-011 40,946 1 YES 40,946 YES 25,713.22 YES 25,713.22 30,790.81 $ 111,928.25 $ 1 6,377.17 $ 1 1,152.91 $ 139,458.32 815 N PRESCOTT DR 20 505-282-010 38,768 1 YES 38,768 YES 25,713.22 YES 25,713.22 30,064.81 $ 109,289.15 $ 1 5,991.02 $ 1 0,889.94 $ 136,170.11 325 W MOUNTAIN VIEW PL 21 505-275-005 37,897 1 YES 37,897 YES 25,713.22 YES 25,713.22 29,774.48 $ 108,233.76 $ 1 5,836.59 $ 1 0,784.78 $ 134,855.13 275 W MOUNTAIN VIEW PL 22 505-282-001 10,018 1 YES 10,018 YES 25,713.22 YES 25,713.22 20,481.48 $ 74,452.60 $ 1 0,893.79 $ 7,418.71 $ 92,765.09 245 W MOUNTAIN VIEW PL 23 505-282-002 13,068 1 YES 13,068 YES 25,713.22 YES 25,713.22 21,498.14 $ 78,148.30 $ 1 1,434.54 $ 7,786.96 $ 97,369.80 840 N PRESCOTT DR 24 505-283-003 23,086 1 YES 23,086 YES 25,713.22 YES 25,713.22 24,837.48 $ 90,287.17 $ 1 3,210.68 $ 8,996.52 $ 112,494.37 780 PRESCOTT DR 25 505-283-004 19,166 1 YES 19,166 YES 25,713.22 YES 25,713.22 23,530.81 $ 85,537.29 $ 1 2,515.68 $ 8,523.22 $ 106,576.19 740 PRESCOTT DR 26 505-284-005 24,829 1 YES 24,829 YES 25,713.22 YES 25,713.22 25,418.48 $ 92,399.18 $ 1 3,519.70 $ 9,206.97 $ 115,125.85 NONE 51 505-301-004 39,639 1 YES 39,639 YES 25,713.22 YES 25,713.22 30,355.14 $ 110,344.55 $ 1 6,145.44 $ 1 0,995.10 $ 137,485.09 651 N BELARDO RD 52 505-301-005 28,749 1 YES 28,749 YES 25,713.22 YES 25,713.22 26,725.14 $ 97,149.07 $ 1 4,214.70 $ 9,680.26 $ 121,044.03 633 N BELARDO RD 53 505-301-006 18,730 1 YES 18,730 YES 25,713.22 YES 25,713.22 23,385.48 $ 85,008.98 $ 1 2,438.38 $ 8,470.58 $ 105,917.95 591 N BELARDO RD 54 505-321-004 26,136 1 YES 26,136 YES 25,713.22 YES 25,713.22 25,854.14 $ 93,982.88 $ 1 3,751.43 $ 9,364.77 $ 117,099.08 222 W CHINO DR 55 505-321-003 37,700 1 YES 37,700 YES 25,713.22 YES 25,713.22 29,708.81 $ 107,995.05 $ 1 5,801.67 $ 1 0,760.99 $ 134,557.71 535 N BELARDO RD 56 505-323-002 22,651 1 YES 22,651 YES 25,713.22 YES 25,713.22 24,692.48 $ 89,760.08 $ 1 3,133.56 $ 8,944.00 $ 111,837.64 501 N BELARDO RD 57 505-323-001 22,651 1 YES 22,651 YES 25,713.22 YES 25,713.22 24,692.48 $ 89,760.08 $ 1 3,133.56 $ 8,944.00 $ 111,837.64 450 N CAHUILLA RD 58 505-323-004 22,651 1 YES 22,651 YES 25,713.22 YES 25,713.22 24,692.48 $ 89,760.08 $ 1 3,133.56 $ 8,944.00 $ 111,837.64 500 N CAHUILLA RD 59 505-323-003 22,651 1 YES 22,651 YES 25,713.22 YES 25,713.22 24,692.48 $ 89,760.08 $ 1 3,133.56 $ 8,944.00 $ 111,837.64 550 N CAHUILLA RD 61 505-321-005 14,374 1 YES 14,374 YES 25,713.22 YES 25,713.22 21,933.48 $ 79,730.79 $ 1 1,666.08 $ 7,944.65 $ 99,341.52 600 N CAHUILLA RD 62 505-321-001 26,136 1 YES 26,136 YES 25,713.22 YES 25,713.22 25,854.14 $ 93,982.88 $ 1 3,751.43 $ 9,364.77 $ 117,099.08 630 N CAHUILLA RD 63 505-301-010 25,700 1 YES 25,700 YES 25,713.22 YES 25,713.22 25,708.81 $ 93,454.57 $ 1 3,674.13 $ 9,312.13 $ 116,440.83 650 N CAHUILLA RD 64 505-301-009 25,700 1 YES 25,700 YES 25,713.22 YES 25,713.22 25,708.81 $ 93,454.57 $ 1 3,674.13 $ 9,312.13 $ 116,440.83 271 W MERITO PL 65 505-301-001 37,026 1 YES 37,026 YES 25,713.22 YES 25,713.22 29,484.14 $ 107,178.36 $ 1 5,682.17 $ 1 0,679.61 $ 133,540.14 333 W MERITO PL 66 505-294-007 40,510 1 YES 40,510 YES 25,713.22 YES 25,713.22 30,645.48 $ 111,399.94 $ 1 6,299.87 $ 1 1,100.27 $ 138,800.08 641 N CAHUILLA RD 67 505-294-008 22,651 1 YES 22,651 YES 25,713.22 YES 25,713.22 24,692.48 $ 89,760.08 $ 1 3,133.56 $ 8,944.00 $ 111,837.64 621 N CAHUILLA RD 68 505-294-009 22,215 1 YES 22,215 YES 25,713.22 YES 25,713.22 24,547.14 $ 89,231.78 $ 1 3,056.25 $ 8,891.36 $ 111,179.39 401 W MERITO PL 69 505-294-006 28,749 1 YES 28,749 YES 25,713.22 YES 25,713.22 26,725.14 $ 97,149.07 $ 1 4,214.70 $ 9,680.26 $ 121,044.03 423 W MERITO PL 70 505-294-005 23,522 1 YES 23,522 YES 25,713.22 YES 25,713.22 24,982.81 $ 90,815.48 $ 1 3,287.98 $ 9,049.16 $ 113,152.62 431 W MERITO PL 71 505-294-004 23,522 1 YES 23,522 YES 25,713.22 YES 25,713.22 24,982.81 $ 90,815.48 $ 1 3,287.98 $ 9,049.16 $ 113,152.62 443 W MERITO PL 72 505-294-003 23,086 1 YES 23,086 YES 25,713.22 YES 25,713.22 24,837.48 $ 90,287.17 $ 1 3,210.68 $ 8,996.52 $ 112,494.37 465 W MERITO PL 73 505-294-002 23,086 1 YES 23,086 YES 25,713.22 YES 25,713.22 24,837.48 $ 90,287.17 $ 1 3,210.68 $ 8,996.52 $ 112,494.37 481 W MERITO PL 74 505-294-001 22,651 1 YES 22,651 YES 25,713.22 YES 25,713.22 24,692.48 $ 89,760.08 $ 1 3,133.56 $ 8,944.00 $ 111,837.64 588 N PATENCIO RD 75 505-311-008 28,314 1 YES 28,314 YES 25,713.22 YES 25,713.22 26,580.14 $ 96,621.97 $ 1 4,137.58 $ 9,627.74 $ 120,387.29 444 W CHINO DR 76 505-311-006 28,314 1 YES 28,314 YES 25,713.22 YES 25,713.22 26,580.14 $ 96,621.97 $ 1 4,137.58 $ 9,627.74 $ 120,387.29 420 W CHINO DR 77 505-311-005 28,314 1 YES 28,314 YES 25,713.22 YES 25,713.22 26,580.14 $ 96,621.97 $ 1 4,137.58 $ 9,627.74 $ 120,387.29 398 W CHINO DR 78 505-311-004 28,314 1 YES 28,314 YES 25,713.22 YES 25,713.22 26,580.14 $ 96,621.97 $ 1 4,137.58 $ 9,627.74 $ 120,387.29 362 W CHINO DR 79 505-311-003 28,314 1 YES 28,314 YES 25,713.22 YES 25,713.22 26,580.14 $ 96,621.97 $ 1 4,137.58 $ 9,627.74 $ 120,387.29 330 W CHINO DR 80 505-311-002 23,086 1 YES 23,086 YES 25,713.22 YES 25,713.22 24,837.48 $ 90,287.17 $ 1 3,210.68 $ 8,996.52 $ 112,494.37 573 N CAHUILLA RD 81 505-311-001 29,185 1 YES 29,185 YES 25,713.22 YES 25,713.22 26,870.48 $ 97,677.37 $ 1 4,292.00 $ 9,732.90 $ 121,702.27 82 505-312-013 14,374 1 YES 14,374 YES 25,713.22 YES 25,713.22 21,933.48 $ 79,730.79 $ 1 1,666.08 $ 7,944.65 $ 99,341.52 1,311,374.00 $ 4,767,000.00 $ 697,500.00 $ 475,000.00 $ 5,939,500.00 DRAFT

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Jeffrey M. Cooper, P.E.

COO
NV5
Phone: (949) 585-0477
Email: [email protected]
DRAFT

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Attachment B
Resolution of Intention to Form
Assessment District No. 1

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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, DECLARING ITS

INTENTION TO TAKE PROCEEDINGS PURSUANT TO THE
MUNICIPAL IMPROVEMENT ACT OF 1913 AND TO ISSUE

BONDS PURSUANT TO THE IMPROVEMENT BOND ACT
OF 1915, AND MAKING CERTAIN FINDINGS AND

DETERMINATIONS IN CONNECTION THEREWITH, ALL

RELATING TO THE FORMATION OF OLD LAS PALMAS
UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 1
WHEREAS, the City Council of the City of Palm Springs (“City”) desires to provide certain property located in the City with the undergrounding of electric, telephone and cable facilities, and removal of poles, overhead wires, guys, anchors and appurtenant work therewith as further described in Section 3 hereof (“Improvements”) and to order the formation of an Assessment District to pay the costs thereof under and pursuant to the provisions of the Municipal Improvement Act of 1913 (the “1913 Act”); and WHEREAS, the proposed assessment district, if it is formed, is to be known and designated as Old Las Palmas Underground Utility Assessment District No. 1 (“Assessment District”); and
WHEREAS, the proposed boundaries of the Assessment District are shown on a map which indicates by a boundary line the extent of the territory proposed to be included in the Assessment District, which map is designated “Boundary Map for Old Las Palmas Underground Utility Assessment District No. 1, City of Palm Springs” (“Map”), which Map is on file in the office of the City Clerk; and
WHEREAS, the City Council has been presented with a petition signed by owners representing more than sixty percent (60%) of the assessable property area within the boundaries of the proposed Assessment District requesting the formation of the Assessment District to finance the Improvements; and
WHEREAS, pursuant to California Streets and Highways Code Sections 5896.5 and 5896.8, there is on file with the City Clerk a certificate of NV5, Inc. certifying the sufficiency of such petition; and
WHEREAS, the Map has been presented to the City Council for approval and is on file in the office of the City Clerk; and
WHEREAS, it appears to the City Council that the Assessment District should be formed to finance the installation of said Improvements under the provisions of the 1913 Act; and
WHEREAS, the City Engineer, with the assistance of NV5, Inc., is competent to make and    file with the City Clerk the report regarding the Improvements, which report is

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Resolution No. _____