CITY OF PALM SPRINGS
Regular Meeting Agenda
SEPTEMBER 9, 2026
3:00 PM Closed Session
5:30 PM Open Session
Council Chamber
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Palmspringsca.gov
CITY COUNCIL
AND AS SUCCESSOR AGENCY TO THE
COMMUNITY REDEVELOPMENT AGENCY
Naomi Soto, Mayor
David Ready, Mayor Pro Tem
Jeffrey Bernstein, Councilmember
Grace Elena Garner, Councilmember
Ron deHarte, Councilmember
Scott Stiles, City Manager
A
To view, listen to, or participate in the meeting live, please contact the Office of the City Clerk at [email protected] or at the telephone number (760) 323- 8204 to register for participation in the Zoom meeting. An email containing the Zoom credentials will be sent upon completion of registration in order to facilitate access to the meeting and enable public comment. Individuals wishing to provide public testimony regarding an item on the agenda are requested to file a speaker card before the Public Testimony portion of the meeting closes.
You may submit your public comment to the City Council electronically.
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Please note any agenda item which has not been initiated by 11:00 p.m. may be continued to a subsequent meeting.
At approximately 10:00 p.m., the City Council will determine the number of speakers who wish to address the City Council during Public Comment for non-Agenda Items and determine which agenda items will be considered before the 11:00 p.m. adjournment time. 3:00 PM CLOSED SESSION:
CLOSED SESSION CALL TO ORDER:
PUBLIC COMMENT FOR CLOSED SESSION (Council Chamber):
The City Council welcomes public input. Members of the public may address the City Council on Closed Session items by contacting the City Clerk's Office at 760-323-8204 or [email protected]. Pursuant to State Law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). If you are compensated to communicate with City officials, you may be required to register and/or make certain disclosures as a lobbyist. Please see the City Clerk for additional information.
RECESS TO CLOSED SESSION (Small Conference Room):
CONFERENCE WITH LEGAL COUNSEL: The City Council finds, based on advice from the City Attorney, that discussion in open session of the following described matter(s) will prejudice the position of the City in existing and anticipated litigation.
CLOSED SESSION ITEM(S):
CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION Gov. Code § 54956.9(d)(4)
Two (2) matters
CONFERENCE WITH LEGAL COUNSEL — SIGNIFICANT EXPOSURE
TO LITIGATION Gov. Code § 54956.9(d)(2)
One (1) matter
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Gov.
Code § 54956.9(d)(1)
Two (2) matters
Center for Biological Diversity v. City of Palm Springs, City Council for the City of Palm Springs, Riverside County Superior Court,
Case No. CVRI2505069
Worker’s Compensation Claim (John Hainsey) (ADJ20829539 and ADJ20829557)
CONFERENCE WITH LABOR NEGOTIATORS – Gov. Code § 54957.6 City Negotiators: Scott Stiles, City Manager
Stephanie George, Human Resources Director
Peter Brown, Legal Counsel
Employee
organization:
Palm Springs Fire Management Association
City Negotiators: Naomi Soto, Mayor
Jeff Ballinger, City Attorney
Unrepresented
Employee:
City Manager
CONFERENCE WITH REAL PROPERTY NEGOTIATORS – Gov. Code
§54956.8
Property: APN: 513-092-009 Westernmost end of E. Andreas Rd.
City Negotiator: Scott Stiles, City Manager and Jeff Ballinger, City Attorney
Negotiating parties: Michael Braun, Grit Development
Under negotiation: Price and Terms
CLOSED SESSION ADJOURNMENT:
5:30 PM REGULAR MEETING:
CALL TO ORDER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
PRESENTATIONS:
(A) SWEARING IN AND BADGE PINNING CEREMONY FOR CHIEF
OF POLICE KYLE STJERNE
ACCEPTANCE OF THE AGENDA:
The City Council will discuss the order of the agenda, may amend the order, add urgency items, note abstentions or "no" votes on Consent Calendar items, and request Consent Calendar items be removed from the Consent Calendar for discussion. The City Council may also remove items from the Consent Calendar prior to that portion of the Agenda.
REPORT OF CLOSED SESSION:
PUBLIC TESTIMONY (Agenda Items Only | Non-Public Hearing Items): This time has been set aside for members of the public to address the City Council only on agenda items. Two (2) minutes will be assigned to each speaker. Testimony for Public Hearings will only be taken at the time of the hearing, and General Public Comments, non-agenda items, will be taken later in the meeting.
1. CONSENT CALENDAR: The following routine matters may be acted upon by one motion. Individual items may be removed by the Council for separate discussion at this time or under Acceptance of the Agenda. The ordinance title is deemed to be read in its entirety and further reading waived on any ordinance listed on the Consent Calendar. 1A. MOTION TO READ ORDINANCE BY TITLE ONLY
RECOMMENDATION:
Approve.
1B. APPROVAL OF MINUTES
RECOMMENDATION:
1. Approve the Special City Council Meeting Minutes of August 20, 2026.
2. Approve the City Council Meeting Minutes of August 26, 2026. 1C. DESTRUCTION OF OBSOLETE RECORDS PURSUANT TO THE
ADOPTED RECORDS RETENTION SCHEDULE AND
DESTRUCTION PROCEDURE
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE DESTRUCTION OF RECORDS (AS IDENTIFIED ON EXHIBIT “A”) AND
IN COMPLIANCE WITH THE RETENTION SCHEDULE ADOPTED PER
RESOLUTION NO. 25239.”
1D. TEN (10) DAY MORATORIUM REPORT REGARDING
ORDINANCE NO. 2134 TEMPORARILY PROHIBITING THE
APPROVAL OF DATA CENTERS
RECOMMENDATION:
Receive and file.
1E. AUTHORIZE THE CITY OF PALM SPRINGS TO ENTER INTO A
THIRTY-SIX MONTH LEASE AGREEMENT WITH CLUB CAR, LLC
FOR ONE HUNDRED FIFTY-TWO (152) 2027 TEMPO LITHIUMION GOLF CARS, FIVE (5) 2027 CARRYALL 500 – MAINTENANCE CART – LITHIUM, ONE (1) 2027 CARRYALL
500 – DRIVING RANGE UNIT, ONE (1) 2027 CARRYALL 500 –
CAFé EXPRESS – LITHIUM, AND ONE (1) 2027 CARRYALL 500
– MAINTENANCE CART – LITHIUM TO SERVE THE PALM
SPRINGS TAHQUITZ CREEK GOLF RESORT
RECOMMENDATION:
1. Approve a thirty-six month lease (Attachment A) of one hundred fifty-two 2027 Tempo Lithium Ion Golf Cars, five 2027 CarryAll 500 – Maintenance Cart – Lithium maintenance vehicles, one 2027 CarryAll 500 – Driving Range Unit, one 2027 CarryAll 500 – CAFÉ Express – Lithium beverage cart, one 2027 CarryAll 500 – Maintenance Cart – Lithium
maintenance vehicle, subject to final City Manager and City Attorney approval, through Club Car, LLC, for a monthly lease payment of $25,576.79, and a total lease agreement amount of $920,764.46; and
2. Authorize the City Manager, or designee, to execute all necessary documents.
1F. SECOND READING AND ADOPTION OF ORDINANCE NO. 2121
OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING
CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL CODE
REGARDING CANNABIS CONSUMPTION LOUNGES
RECOMMENDATION:
Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2121, “AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL CODE
REGARDING CANNABIS CONSUMPTION LOUNGES.”
1G. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT
WITH ALTA PLANNING + DESIGN, INC., IN THE AMOUNT OF
$953,702 FOR PROFESSIONAL TRANSPORTATION PLANNING
AND ENGINEERING SERVICES TO PREPARE THE
COMPREHENSIVE SAFETY ACTION PLAN, CITY PROJECT NO.
26-06
RECOMMENDATION:
1. Approve a Professional Services Agreement with Alta Planning + Design, Inc. in the amount of $953,702 for professional transportation planning and engineering services to prepare the Comprehensive Safety Action Plan; an
2. Authorize the City Manager or his designee to execute all necessary documents.
1H. APPROVE CONTRACT AGREEMENTS NO. 26B181 AND 26B182
WITH POLAR ELECTRICAL COMPANY AND NO. 26B183 AND
26B184 WITH M. BREY, INC., DBA MBE CONSTRUCTION, FOR
ELECTRICAL REPAIR AND INSTALLATION SERVICE
RECOMMENDATION:
1. Approve Construction Agreement 26B181 (Attachment A) with Polar Electrical Company to provide electrical installation services for the Public Works department in an amount not to exceed $900,000 for an initial one-year term beginning
September 10, 2026, through September 9, 2027, with four one-year extension options at the City’s sole discretion; and
2. Approve Contract Services Agreement 26B182 (Attachment B) with Polar Electrical Company to provide electrical repair services for the Public Works department in an amount not to exceed $75,000 for an initial three-year term beginning September 10, 2026, through September 09, 2029, with two one-year extension options at the City’s sole discretion; and
3. Approve Construction Agreement 26B183 (Attachment C) with M. Brey, Inc., dba MBE Construction to provide electrical installation services for the Public Works department in an amount not to exceed $575,000 for an initial one-year term beginning September 10, 2026, through September 9, 2027, with four one-year extension options at the City’s sole discretion; and
4. Approve Contract Services Agreement 26B184 (Attachment D) with M. Brey, Inc., dba MBE Construction to provide electrical repair services for the Public Works department in an amount not to exceed $75,000 for an initial three-year term beginning September 10, 2026, through September 09, 2029, with two one-year extension options at the City’s sole discretion; and
5. Authorize the City Manager or designee to execute all necessary documents.
1I. DONATION OF ORIGINAL MORRIS KIGHT MEMORIAL PLAQUE
AND LGBTQ+ SERVICE MEMBER MARKER TO THE LGBTQ+
HISTORY & ARCHIVES OF THE DESERT
RECOMMENDATION:
1. Waive the surplus requirements of Section 7.08.02(5) of the Palm Springs Municipal Code and approve the donation of the original Morris Kight Memorial Plaque and LGBTQ+ Service Member Marker to the LGBTQ+ History & Archives of the
Desert, a California non-profit corporation; and
2. Authorize the City Manager, or designee, to execute any documents necessary to complete the donation
1J. APPROVE CONSTRUCTION CONTRACT NO. 26B203 WITH HTL
MECHANICAL, INC., AND NO. 26B204 WITH RIVCO
MECHANICAL SERVICES, INC., FOR HVAC REPAIR AND
INSTALLATION SERVICES
RECOMMENDATION:
1. Approve Construction Contract 26B203 (Attachment A) with HTL Mechanical, Inc., to provide on-call HVAC repair and installation services for the Public Works department in an amount not to exceed $975,000 for an initial one-year term beginning September 10, 2026, through September 9, 2027, with four one-year extension options at the City’s sole discretion; and
2. Approve Construction Contract 26B204 (Attachment B) with Rivco Mechanical Services, Inc., to provide on-call HVAC repair and installation services for the Public Works
department in an amount not to exceed $417,856 for an initial one-year term beginning September 10, 2026, through
September 9, 2027, with four one-year extension options at the City’s sole discretion; and
3. Authorize the City Manager or his designee to execute all necessary documents
1K. APPROVE CONSTRUCTION CONTRACT NO. 26C173 WITH
BELFOR USA GROUP, INC. FOR ON-CALL GENERAL
EMERGENCY RESTORATION AND REMEDIATION SERVICES
RECOMMENDATION:
1. Approve Construction Contract No. 26C173 (Attachment A) with BELFOR USA Group, Inc., to provide on-call general emergency restoration and remediation services for the Public Works Department in the amount not to exceed $900,000 for the initial 3-year term beginning September 10, 2026,
through September 9, 2029, with two one-year extension
options at the City’s sole discretion.
2. Authorize the City Manager or designee to execute all necessary documents
1L. APPROVE COOPERATIVE PURCHASE AGREEMENT NO. 26C175
WITH L.N. CURTIS & SONS AND NO. 26C176 WITH ALLSTAR
FIRE EQUIPMENT, INC., FOR THE PURCHASE OF
FIREFIGHTING EQUIPMENT, SELF-CONTAINED BREATHING
APPARATUS, AND PROTECTIVE GEAR
RECOMMENDATION:
1. Approve Cooperative Purchase Agreement No. 26C175
(Attachment A) with L.N. Curtis & Sons for the purchase of Firefighting Equipment, Work Apparel for Emergency Services, and Fire Hoses in an amount not to exceed $1,000,000 for a five-year term commencing on September 9, 2026 through
September 8 ,2031;
2. Approve Cooperative Purchase Agreement No. 26C176
(Attachment B) with AllStar Fire Equipment, Inc., for the purchase of Firefighting Equipment, Work Apparel and SelfContained Breathing Apparatus (SCBA) for Emergency Services, and Personal Alert Safety Systems (PASS) in an amount not to exceed $1,000,000 for a five-year term
commencing on September 9, 2026 through September 8,
2031;
3. Waive the requirements for disposition of surplus property outlined in Palm Springs Municipal Code Section 7.08 for Personal Protective and Rope Rescue Equipment
replacements;
4. Authorize The City Manager or designee to execute all necessary documents.
1M. APPROVE PARTICIPATING ADDENDUM 26C189 WITH
AMAZON.COM SERVICES LLC FOR THE PURCHASE OF
MATERIALS AND SUPPLIES
RECOMMENDATION:
1. Approve Participating Addendum (Attachment A) 26C189, with Amazon.com Services LLC for the purchase of materials and supplies for an annual amount not to exceed $300,000 for an initial term ending on January 18, 2028, with two additional two-year periods;
2. Authorize the City Manager or designee to execute all necessary documents
2. PUBLIC HEARINGS:
2A. 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 WGI PALM SPRINGS, LLC PURSUANT TO
MUNICIPAL CODE CHAPTER 5.26 OF THE CITY’S HOTEL
OPERATIONS INCENTIVE PROGRAM
RECOMMENDATION:
Staff is recommending this item be removed from the September 9, 2026, agenda, and be continued to a date uncertain.
3. BUSINESS & LEGISLATIVE:
3A. ADOPTION OF THE 2026/2027 LEGISLATIVE PLATFORM
RECOMMENDATION:
Staff recommend that the City Council adopt the proposed 2026/2027 Legislative Platform.
3B. REPORT ON THE PERFORMANCE STATUS OF THE DREAM
HOTEL PROJECT
RECOMMENDATION:
Receive the report and provide direction to staff.
3C. DISCUSSION AND POSSIBLE DIRECTION REGARDING
COMMUNITY WORKFORCE AGREEMENT (CWA)
RECOMMENDATION:
Discuss and provide City staff and City Attorney with direction regarding a possible extension of the Community Workforce Agreement (CWA).
3D. APPROVE A FUNDING AND SERVICES AGREEMENT WITH
CARAVANSERAI - ALLIANCE FOR ENTREPRENEURS FOR
IMPLEMENTATION OF THE SMALL BUSINESS SUPPORT
PROGRAM ("BIZUP: PALM SPRINGS")
RECOMMENDATION:
1. Approve a Funding and Services Agreement with Caravanserai - Alliance for Entrepreneurs for implementation of the Small Business Support Program ("Bizup: Palm Springs"); and
2. Authorize the City Manager or their designee to execute all necessary documents.
3E. DISCUSSION OF CITY MAYORAL POSITION AND REPORT
FROM AD HOC SUBCOMMITTEE
RECOMMENDATION:
Receive and file this report and provide direction to Staff as appropriate.
PUBLIC COMMENT (Non-Agenda Items): This time has been set aside for members of the public to address the City Council on items of general interest within the subject matter jurisdiction of the City. Although the City Council values your comments, pursuant to the Brown Act, it generally cannot take any action on items not listed on the posted agenda. Two (2) minutes will be assigned to each speaker.
CITY COUNCIL AND CITY MANAGER COMMENTS, REPORTS, & AGENDA DEVELOPMENT: This time is set aside for the City Council and City Manager to provide additional general comments and reports. Additionally, the City Council and City Manager may briefly discuss items of concern and prioritize agenda items for future meeting dates.
A. TENTATIVE UPCOMING MEETING SCHEDULE
ADJOURNMENT:
AFFIDAVIT OF POSTING
State of California )
County of Riverside ) ss.
City of Palm Springs )
I, Brenda Pree, City Clerk of the City of Palm Springs, California, hereby certify this Agenda was delivered to each member of the City Council, provided to all parties who have requested such notice, posted at City Hall before 7:00 p.m., September 2, 2026, and posted on the City’s website as required by established policies and procedures.
Brenda Pree, MMC, CERA
City Clerk
PUBLIC NOTICE
Pursuant to G.C. Section 54957.5(b)(2) the designated office for inspection of records in connection with the meeting is the Office of the City Clerk, City Hall, 3200 E. Tahquitz Canyon Way. Complete Agenda Packets are available for public inspection at: City Hall Office of the City Clerk. Agenda and staff reports are available on the City’s website www.palmspringsca.gov. If you would like additional information on any item appearing on this agenda, please contact the Office of the City Clerk at (760) 323-8204 Pursuant to G.C. Section 65009(b)(2) if you challenge any action taken concerning a public hearing item in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing.
It is the intention of the City of Palm Springs to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 323-8204, at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. 1A. MOTION TO READ ORDINANCE BY TITLE ONLY
RECOMMENDATION:
Approve.
Item 1A - Page 1
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(DRAFT MEETING MINUTES)
August 20, 2026
Minutes of the Special Meeting of the City Council
of the City of Palm Springs
CALL TO ORDER:
A Special Meeting of the Palm Springs City Council was called to order by Mayor Soto on August 20, 2026, at 9:03 AM.
PLEDGE OF ALLEGIANCE:
Mayor Soto led the City Council in the Pledge of Allegiance.
ROLL CALL:
Present: Councilmember Jeffrey Bernstein, Councilmember Ron deHarte, Councilmember Grace Garner, Mayor Naomi Soto, Mayor Pro Tem David Ready
Absent: None
City Staff
Present:
Scott Stiles, City Manager; Teresa Gallavan, Assistant City Manager; Flinn Fagg, Assistant City Manager; Jeremy Hammond, Deputy City Manager; Jeff Ballinger, City Attorney; Andrew Mills, Chief of Police; Brenda Pree, City Clerk; and Evelyn Beltran, Chief Deputy City Clerk, were present at Roll Call.
Other staff members presented reports or responded to questions as indicated in the minutes.
PRESENTATIONS: None.
PRESENTATIONS: None.
ACCEPTANCE OF THE AGENDA:
Motion by Councilmember Garner, Second by Mayor Soto, CARRIED 5 – 0, to: Accept the agenda.
AYES: Councilmember Bernstein, Councilmember deHarte, Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
B – Page 13 of 913
City Council Minutes August 20, 2026
City of Palm Springs (DRAFT) Page 2
ABSTAIN: None
RECUSED: None
PUBLIC TESTIMONY (Non-Public Hearing Agenda Items Only):
Joan Taylor provided oral testimony.
1. BUSINESS & LEGISLATIVE:
1A. CONSIDERATION OF A RESOLUTION APPOINTING CANDIDATE
FOR DISTRICT 2 CITY COUNCIL SEAT AND CANCELING THE
GENERAL MUNICIPAL ELECTION FOR DISTRICT 2 SCHEDULED FOR NOVEMBER 3, 2026
Motion by Councilmember Garner, Second by Councilmember deHarte, CARRIED 3 – 1, with 1 abstention, to: Direct the City Clerk to proceed with holding the election for City Council District 2.
AYES: Councilmember deHarte, Councilmember Garner, Mayor Pro Tem Ready
NAYS: Mayor Soto
ABSTAIN: Councilmember Bernstein
RECUSED: None
ADJOURNMENT:
The City Council adjourned the Special Meeting of August 20, 2026, at 9:32 AM Respectfully submitted,
Brenda Pree, MMC, CERA
City Clerk
- EB
B – Page 14 of 913
(DRAFT MEETING MINUTES)
August 26, 2026
Minutes of the Regular Meeting of the City Council
of the City of Palm Springs
CALL TO ORDER:
A Regular Meeting of the Palm Springs City Council was called to order by Mayor Soto on August 26, 2026, at 5:37 PM.
PLEDGE OF ALLEGIANCE:
ROLL CALL:
Present: Councilmember Jeffrey Bernstein, Councilmember Ron deHarte, Councilmember Grace Garner, Mayor Naomi Soto, Mayor Pro Tem David Ready
Absent: None
City Staff
Present:
Scott Stiles, City Manager; Teresa Gallavan, Assistant City Manager; Flinn Fagg, Assistant City Manager; Jeff Ballinger, City Attorney; Andrew Mills, Chief of Police; Kyle Stjerne, Deputy Police Chief; Brenda Pree, City Clerk; and Brent Rasi, Deputy City Clerk, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes.
PRESENTATIONS:
Chief Andy Mills received a special tribute in recognition of his contributions and dedicated service to the community.
(A) COMMUNITY EMERGENCY RESPONSE TEAM (CERT) PROGRAM AND
EMERGENCY PREPAREDNESS
Emergency Management Coordinator Daniel DeSelms conducted the presentation.
PROCLAMATIONS:
Mayor Soto announced the issuance of the following proclamation:
B – Page 15 of 913
City Council Minutes August 26, 2026
City of Palm Springs (DRAFT) Page 2
• Deven Green and Handsome Ned were recognized on August 22, 2026, for their contributions to the Palm Springs community.
ACCEPTANCE OF THE AGENDA:
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to: Accept the Agenda with the removal of Consent Calendar Item Nos. 1P, 1T, 1V, 1X, and 1AA for separate discussion; with Consent Calendar Item No. 1I tabled; with Councilmember deHarte noting a recusal on Consent Calendar Item No. 1Q; and Councilmember Garner and Mayor Pro Tem Ready noting recusals on Consent Calendar Item No. 1U.
AYES: Councilmember Bernstein, Councilmember deHarte, Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
REPORT OF CLOSED SESSION:
The Closed Session of the City Council of August 26, 2026, was called to order by Mayor Soto at 4:00 PM.
The meeting convened into Closed Session to discuss the following items as listed on the Closed Session Meeting Agenda, with no reportable action:
CLOSED SESSION ITEM(S):
CONFERENCE WITH LEGAL COUNSEL–INITIATION OF LITIGATION Gov.
Code § 54956.9(d)(4)
Under existing facts and circumstances, there was one (1) matter.
CONFERENCE WITH LEGAL COUNSEL — SIGNIFICANT EXPOSURE TO LITIGATION Gov. Code § 54956.9(d)(2)
Under existing facts and circumstances, there was one (1) matter.
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Gov. Code § 54956.9(d)(1)
Under existing facts and circumstances, there was one (1) matter.
James Degaine v. City of Palm Springs; Riv. Sup. Ct. No. CVPS2404440
B – Page 16 of 913
City Council Minutes August 26, 2026
City of Palm Springs (DRAFT) Page 3
PUBLIC TESTIMONY (Agenda Items Only | Non-Public Hearing Items):
Jane Dodd, Philip Hodges, Ginny Weissman, Lindsay Rowe, Hank Bates, Don Soja, Katherine Kruger, Carol Listenberger, Elizabeth Humphreys, Gail Vasquez, Dominic Moonheart, Jesse Neimeyer-Romero, Leslie Baza, and Alan Carvalto provided oral testimony.
1. CONSENT CALENDAR:
1A. MOTION TO READ ORDINANCE BY TITLE ONLY
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to: Approve.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1B. APPROVAL OF MINUTES
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Approve the Special City Council Meeting Minutes of June 30, 2026.
2. Approve the Special Closed Session City Council Meeting Minutes of July 7, 2026.
3. Approve the City Council Meeting Minutes of July 8, 2026.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1C. ACCEPTANCE OF RESIGNATIONS FROM VARIOUS BOARDS AND
COMMISSIONS
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Accept the resignations of Michael Frick and Bernard Rottner from
B – Page 17 of 913
City Council Minutes August 26, 2026
City of Palm Springs (DRAFT) Page 4
the Sustainability Commission, effective immediately.
2. Accept the resignation of Jerry Ogburn from the Mount San Jacinto Winter Park Authority, effective immediately.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1D. TREASURER’S INVESTMENT REPORT AS OF JUNE 30, 2026
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to: Receive and File.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1E. ACCEPTANCE OF PUBLIC IMPROVEMENTS AND AUTHORIZATION
TO RELEASE SUBDIVISION IMPROVEMENT SECURITIES FOR THE
“ÉLAN” TRACT, TRACT MAP 36914
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to: Adopt Resolution No. 25426 entitled, “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE SUBDIVISION
IMPROVEMENTS ASSOCIATED WITH TRACT MAP 36914 AND
AUTHORIZING RELEASE OF SECURITIES REQUIRED BY THE
SUBDIVISION IMPROVEMENT AGREEMENT WITH FAR WEST INDUSTRIES, A CALIFORNIA CORPORATION, (A8746), FOR PROPERTY LOCATED AT 777 SOUTH PALM CANYON DRIVE, IN SECTION 22, TOWNSHIP 4 SOUTH, RANGE 4 EAST”.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
B – Page 18 of 913
City Council Minutes August 26, 2026
City of Palm Springs (DRAFT) Page 5
RECUSED: None
1F. APPROVE A PLAN AMENDMENT TO THE CITY OF PALM SPRINGS
RETIREMENT HEALTH SAVINGS PLAN TO INCREASE MANDATORY
EMPLOYEE COMPENSATION CONTRIBUTIONS BY ELIGIBLE PALM
SPRINGS FIREFIGHTER ASSOCIATION EMPLOYEES
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Approve an amendment to the City of Palm Springs Retirement Health Savings Plan to increase mandatory employee
compensation contributions by eligible Palm Springs Firefighter Association employees.
2. Authorize the City Manager to execute all documents necessary to effectuate this action.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1G. ACCEPTANCE OF THE FEDERAL AVIATION ADMINISTRATION
(FAA) AIRPORT INFRASTRUCTURE GRANT (AIG), GRANT NO. 03- 06-0181-073-2026, FOR THE FUNDING OF THE AIRPORT
BAGGAGE HANDLING SYSTEM IN-LINE SCREENING PROJECT AND
AIRPORT IMPROVEMENT PROGRAM (AIP) GRANT NO. 03-06-
0181-074-2026 FOR FUNDING TO EQUIP AIRPORT VEHICLES
WITH VEHICLE MOVEMENT AREA TRANSMITTERS (VMAT) FOR THE
PALM SPRINGS INTERNATIONAL AIRPORT
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Approve acceptance of Federal Aviation Administration (FAA) Airport Infrastructure Grant (AIG) No. 03-06-0181-073-2026 up to $10,500,000 for the new Baggage Handling System In-Line Screening Project at the Palm Springs International Airport (Airport).
2. Approve acceptance of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) Grant No. 03-06-0181-074- 2026 up to $142,510 to equip airport vehicles with Vehicle Movement Area Transmitters (VMAT) at the Palm Springs
International Airport (Airport).
3. Authorize the City Manager or designee to execute all necessary
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City Council Minutes August 26, 2026
City of Palm Springs (DRAFT) Page 6
grant documents.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1H. APPROVE COOPERATIVE PURCHASE AGREEMENT NO. 26C149
WITH INSIGHT PUBLIC SECTOR, INC., FOR MICROSOFT
LICENSING AND MAINTENANCE
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Approve Cooperative Purchase Agreement No. 26C149
(Attachment A) with Insight Public Sector, Inc., to provide Microsoft Licensing and Maintenance for City staff, in an amount not to exceed $909,039.60, for an initial three-year term, with one optional three-year extension;
2. Delegate authority to the City Manager to enter in an amendment to exercise the optional three-year term for an additional amount not to exceed $909,039.60, with a potential total Agreement value not to exceed $1,818,079.20;
3. Authorize the City Manager or designee to execute all necessary documents.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1I. APPROVE COOPERATIVE PURCHASE AGREEMENT WITH AXON
ENTERPRISE, INC. FOR THE PURCHASE OF 100 AXON TASER 10
DEVICES WITH CERTIFICATION BUNDLE, INCLUDING HARDWARE,
SOFTWARE, SERVICES, AND WARRANTIES FOR A FIVE-YEAR TERM The item was tabled at the request of staff.
1J. ACCEPT THE SUPPLEMENTAL LAW ENFORCEMENT SERVICES
ACCOUNT (SLESA) GRANT FROM THE STATE OF CALIFORNIA AND
APPROVE AN EXPENDITURE PLAN AND APPROPRIATION FOR
B – Page 20 of 913
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City of Palm Springs (DRAFT) Page 7
FISCAL YEAR 2026-2027
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Accept the State of California Supplemental Enforcement Services Account Grant (SLESA) and Expenditure Plan.
2. Direct the Director of Finance/City Treasurer to fund the appropriation.
3. Authorize the City Manager to execute all necessary documents.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1K. ACCEPTANCE OF THE WASTEWATER TREATMENT PLANT VARIOUS DEMOLITIONS, CITY PROJECT 21-06
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Accept the public works improvement identified Wastewater Treatment Plant Various Demolitions, City Project 21-06, as completed in accordance with the plans and specifications;
2. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for Wastewater Treatment Plant Various Demolitions, City Project 21-
06. AYES: Councilmember Bernstein, Councilmember deHarte, Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1L. AWARD OF A CONTRACT AND APPROVAL OF TASK ORDER FOR THE 2026 SLURRY SEAL PROJECT (CITY PROJECT NO. 26-02)
INCLUDING APPROVAL OF A CONSTRUCTION CONTRACT TO
UNION PAVEMENT SERVICES, INC. IN THE AMOUNT OF $734,147; APPROVAL OF A TASK ORDER UNDER ON-CALL AGREEMENT NO.
25Q158 WITH DUDEK, INC., IN AN AMOUNT NOT TO EXCEED
$194,400 FOR CONSTRUCTION MANAGEMENT AND INSPECTION
B – Page 21 of 913
City Council Minutes August 26, 2026
City of Palm Springs (DRAFT) Page 8
SERVICES
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Award a construction contract to Union Pavement Services, Inc. in the amount of $734,147 for the 2026 Slurry Seal, City Project No. 26-02;
2. Authorize the City Manager to approve a task order for construction management and inspection services from an on-call engineering services firm, Dudek, Inc., in an amount not to exceed $194,400;
3. Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $150,000 with all change orders reported and filed to the City Council; and
4. Authorize the City Manager or designee to execute all necessary documents.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1M. APPROVE CONTRACT CHANGE ORDER NO. 9 WITH STEVE P.
RADOS INC., IN THE AMOUNT OF $336,049.59, AND APPROVE
AMENDMENT NO. 6 UNDER PROFESSIONAL SERVICE AGREEMENT
NO. A9141 WITH MWH CONSTRUCTORS INC., IN THE AMOUNT OF
$21,296.00 FOR CONSTRUCTION MANAGEMENT AND INSPECTION
SERVICES FOR WWTP DIGESTER NO. 2, WASTE GAS FLARE AND
FILTRATE PUMP STATION, CITY PROJECT CP 20-25 & 21-07
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Approve Contract Change Order No. 9 in the amount of $336,049.59 to Agreement A9137 with Steve P. Rados, Inc. for the WWTP Digester No. 2 Waste Gas Flare and Filtrate Pump Station, City Project No. 20-25 & 21-07 (“Project”).
2. Approve amendment No. 6 in the amount of $21,296.00 to Professional Services Agreement No. A9141, for a new not-toexceed amount of $2,096,708.14 with MWH and extend the agreement expiration date to October 31, 2026.
3. Appropriate $357,345.59 from the Wastewater Fund to the project’s account.
B – Page 22 of 913
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City of Palm Springs (DRAFT) Page 9
4. Authorize the City Manager or his designee to execute all necessary documents.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1N. APPROVE CONTRACT SERVICES AGREEMENT NO. 26B158 WITH URBAN WORX CONSTRUCTION, INC. AND CONTRACT SERVICES
AGREEMENT NO. 26B159 WITH PRO-CRAFT CONSTRUCTION, INC.
FOR ON-CALL PLUMBING MAINTENANCE AND INSTALLATION
SERVICES FOR THE PALM SPRINGS INTERNATIONAL AIRPORT
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Approve Contract Services Agreement No. 26B158 with Urban Worx Construction, Inc., to provide on-call plumbing maintenance and installation services in an amount not to exceed $180,000 for an initial three-year term commencing on August 27, 2026, and continuing through August 26, 2029, with two one-year extension options upon mutual written agreement of the parties.
2. Approve Contract Services Agreement No. 26B159 with Pro-Craft Construction, Inc., to provide on-call plumbing maintenance and installation services in an amount not to exceed $120,000 for an initial three-year term commencing on August 27, 2026, and continuing through August 26, 2029, with two one-year extension options upon mutual written agreement of the parties.
3. Authorize the City Manager or designee to execute all necessary documents subject to such changes / revisions agreeable to the City Manager and City Attorney.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1O. APPROVE DOWNTOWN COMMUNITY MURAL PROGRAM
Motion by Councilmember deHarte, Second by Councilmember
B – Page 23 of 913
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City of Palm Springs (DRAFT) Page 10
Garner, CARRIED 5 – 0, to:
Approve the Downtown Community Mural Program as recommended by the Public Arts Commission.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1P. APPROVE AMENDMENT NO. 3 TO CONTRACT SERVICE AGREEMENT NO. 23I320 WITH AVIATRIX COMMUNICATIONS, LLC FOR
WEBSITE SUPPORT AND MAINTENANCE SERVICES FOR PALM
SPRINGS INTERNATIONAL AIRPORT
Motion by Councilmember Bernstein, Second by Councilmember deHarte, CARRIED 5 – 0, to:
1. Approve Amendment No. 3 to Contract Services Agreement No. 23I320 (Attachment A) with Aviatrix Communications, LLC to increase compensation in the amount $44,750, for a revised not to exceed amount of $227,342, and extend the term for an additional one year through August 31, 2027, to provide ongoing website support and maintenance services for the Palm Springs
International Airport.
2. Authorize the City Manager or designee to execute all necessary documents subject to such changes/revisions agreeable to the City Manager and City Attorney.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1Q. STAFF AUTHORIZED AGREEMENTS AND PURCHASE ORDERS FOR THE PERIOD OF JUNE 1 THROUGH JULY 31, 2026
CONSENT CALENDAR MOTION:
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 4 – 0, to: Receive and file the report of Staff Authorized Agreements and Purchase Orders for the period of June 1 through July 31, 2026.
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City of Palm Springs (DRAFT) Page 11
AYES: Councilmember Bernstein, Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: Councilmember deHarte
1R. APPROVAL OF ISSUANCE OF PURCHASE ORDER TO
ENVIROMENTAL SYSTEMS RESEARCH INSTITUTE (ESRI) IN THE
AMOUNT OF $8,223.46 FOR GIS SOFTWARE SUBSCRIPTION
PURCHASE
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Approve the issuance of a Purchase Order for ArcGIS Hub Premium ArcGIS Online Community Annual Subscription (Quote Q-576221, Attachment A) with Environmental Systems Research Institute (ESRI) for an additional amount of $8,223.46 and a new
cumulative total spend of $154,847.09; and
2. Authorize the City Manager or designee to execute all necessary documents.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1S. APPROVAL OF AMENDMENT NO. 9 TO THE EXISTING CAR RENTAL CONCESSION AGREEMENTS; AMENDMENT NO. 10 TO THE AVISBUDGET CAR RENTAL CONCESSION AGREEMENT; AND AMENDMENT NO. 1 TO THE SIXT CAR RENTAL CONCESSION
AGREEMENT, IN ORDER TO ADD STAGING SPACE WITH
CORRESPONDING FEE, INCREASE CERTAIN FIXED RENT CHARGES,
AND REVISE THE MINIMUM ANNUAL GUARANTEE AT PALM
SPRINGS INTERNATIONAL AIRPORT
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Approve Amendment No. 9; Avis-Budget Amendment No. 10; and SIXT Amendment No. 1 to Airport car rental concession
agreements doing business as car rental agencies at the Airport which include:
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City of Palm Springs (DRAFT) Page 12
• Avis/Budget Car Rental, LLC (Amendment No. 10)
• The Hertz Corporation (Amendment No. 9)
• Enterprise Rent-A-Car, LLC dba Alamo Rent a Car / National Car Rental (Amendment No. 9)
• Enterprise Rent-A-Car Company of Los Angeles (Amendment No. 9)
• DTG Operations, Inc. dba Dollar Rent a Car /Thrifty Car Rental (Amendment No. 9)
• SIXT Rent a Car, LLC (Amendment No. 1)
2. Authorize the City Manager or designee to execute all necessary documents subject to such changes / revisions agreeable to the City Manager and City Attorney
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1T. APPROVAL OF PLANS, SPECIFICATIONS, AND ESTIMATE (PS&E)
AND AUTHORIZATION TO BID EAST PALM CANYON DRIVE
BRIDGE, CITY PROJECT 12-04, FEDERAL AID PROJECT NO. BRLS 5282(041)
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:
1. Approve the plans, specifications and estimate and authorize Staff to advertise and solicit bids for the East Palm Canyon Drive Bridge, City Project 12-04, Federal Aid Project No. BRLS 5282(041).
2. Authorize the City Manager to execute all necessary documents.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1U. APPROVAL OF PAYROLL & ACCOUNTS PAYABLE WARRANTS,
CLAIMS AND DEMANDS
CONSENT CALENDAR MOTION:
Motion by Councilmember deHarte, Second by Councilmember
B – Page 26 of 913
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City of Palm Springs (DRAFT) Page 13
Garner, CARRIED 3 – 0, to: Adopt Resolution No. 25427 entitled, “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING PAYMENT OF PAYROLL
WARRANTS/DISBURSEMENTS FOR THE PERIOD ENDING 05-09-2026 AND 05-23-2026 TOTALING $5,536,162.46 AND ACCOUNTS PAYABLE WARRANTS DATED 05-07-2026 AND 05-21-2026 TOTALING
$8,383,663.68 IN THE AGGREGATE AMOUNT OF $13,919,826.14, DRAWN ON BANK OF AMERICA”.
AYES: Councilmember Bernstein, Councilmember deHarte,
Mayor Soto
NAYS: None
ABSTAIN: None
RECUSED: Councilmember Garner, Mayor Pro Tem Ready
1V. APPROVE AN AMENDMENT TO THE AGREEMENT WITH LIEBERT
CASSIDY WHITMORE TO PROVIDE EMPLOYMENT AND LABOR
RELATIONS LEGAL SERVICES
The City Council tabled this item.
1W. APPROVE OFFICAL POLICE TOW AND STORAGE SERVICE
AGREEMENT NO. 26Q168 WITH ALFONSO TOWING, INC.; NO.
26Q169 WITH DAVE’S TOWING SERVICE; AND NO. 26Q170 WITH
MOHICA TOWING, INC. FOR AS-NEEDED VEHICLE TOWING AND
STORAGE SERVICES FOR THE PALM SPRINGS POLICE
DEPARTMENT
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Adopt Resolution No. 25428 entitled, "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING AGREEMENTS WITH CERTAIN TOW COMPANIES FOR
AS-NEEDED VEHICLE TOWING AND STORAGE SERVICES FOR THE
PALM SPRINGS POLICE DEPARTMENT."
2. Authorize the City Manager or designee to execute all necessary documents.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
B – Page 27 of 913
City Council Minutes August 26, 2026
City of Palm Springs (DRAFT) Page 14
1X. 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
Motion by Councilmember Bernstein, Second by Councilmember Garner, CARRIED 5 – 0, to: Approve agreement with Ontario Fire Department to provide enhanced emergency medical dispatching and pre-arrival instructions, included as Attachment A.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1Y. 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)
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
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 AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1Z. APPROVE AMENDMENT NO. 4 TO CONTRACT SERVICES
AGREEMENT NO. 23P188 WITH NEIGHBORHOOD PARTNERSHIP
HOUSING SERVICES, INC.
B – Page 28 of 913
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City of Palm Springs (DRAFT) Page 15
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
1. Approve Amendment No. 4 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.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1AA. 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
Motion by Councilmember deHarte, Second by Councilmember Bernstein, as amended, CARRIED 5 – 0, to:
1. Approve Exhibit A-1 to the PSCC CSA Agreement – Local Brands
2. Approve Exhibit A-2 to the PSCC CSA Agreement – Community Non-Profit Use Policy
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
As amended.
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:
AYES: Councilmember Bernstein, Councilmember deHarte, Councilmember
B – Page 29 of 913
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City of Palm Springs (DRAFT) Page 16
Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
2. PUBLIC HEARINGS:
2A. 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
Motion by Councilmember Garner, Second by Councilmember deHarte, CARRIED 5 – 0, to:
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 nonsubstantive changes and execute all necessary documents related to the subsidy.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
3. BUSINESS & LEGISLATIVE:
3A. 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
Motion by Mayor Pro Tem Ready, Second by Councilmember
deHarte, CARRIED 5 – 0, to:
1. Adopt Resolution No. 25429 entitled, “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,
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City of Palm Springs (DRAFT) Page 17
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. 25430 entitled, “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.”
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
3B. 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. 2
Motion by Mayor Pro Tem Ready, Second by Councilmember
deHarte, CARRIED 5 – 0, to:
1. Adopt Resolution No. 25431 entitled, “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. 2”; and
2. Adopt Resolution No. 25432 entitled, “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. 2.”
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
B – Page 31 of 913
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City of Palm Springs (DRAFT) Page 18
ABSTAIN: None
RECUSED: None
3C. ADOPTION OF AN URGENCY MORATORIUM ORDINANCE TO
TEMPORARILY PROHIBIT THE ACCEPTANCE, PROCESSING, OR
APPROVAL OF DATA CENTERS
Motion by Councilmember Bernstein, Second by Councilmember Garner, CARRIED 5 – 0, to: That the City Council adopt, by a four-fifths vote, urgency Ordinance No. 2134 implementing a moratorium on the acceptance, processing, or approval of applications, permits, entitlements, or other approvals related to data centers, effective immediately upon adoption.
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
3D. DISCUSSION OF CITY MAYORAL POSITION AND REPORT FROM AD
HOC SUBCOMMITTEE
Received and filed.
PUBLIC COMMENT (Non-Agenda Items):
Alan Carvalto, Dana Ann Denton, Richard Morris, Jesse Niemeyer Romero, Elizabeth Smith, Brandon Allen, Carl Lindstrom, Andrew Figueroa, Jane Dodd, and Dominic Moonheart provided oral testimony.
CITY COUNCIL AND CITY MANAGER COMMENTS, REPORTS, & AGENDA DEVELOPMENT:
A. TENTATIVE UPCOMING MEETING SCHEDULE
City Manager Stiles and the City Council discussed the tentative meeting schedule and agenda items for upcoming meetings.
ADJOURNMENT:
The City Council adjourned the Regular Meeting of August 26, 2026, at 9:11 PM.
B – Page 32 of 913
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City of Palm Springs (DRAFT) Page 19
Respectfully submitted,
Brenda Pree, MMC, CERA
City Clerk
B – Page 33 of 913
CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 9, 2026 CONSENT CALENDAR
SUBJECT: DESTRUCTION OF OBSOLETE RECORDS PURSUANT TO THE
ADOPTED RECORDS RETENTION SCHEDULE AND DESTRUCTION
PROCEDURE
FROM: Scott C. Stiles, City Manager
BY: City Clerk
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE DESTRUCTION OF RECORDS (AS IDENTIFIED ON EXHIBIT “A”) AND IN COMPLIANCE WITH THE RETENTION SCHEDULE ADOPTED PER RESOLUTION NO. 25239.”
BACKGROUND:
On July 25, 2024, the Palm Springs City Council adopted Resolution No. 25239 implementing an updated records retention schedule and destruction process. Resolution No. 25239 superseded the previous record retention Resolutions Nos. 19644 and 21227 adopted on September 15, 1999, and March 16, 2005. The purpose of the records retention schedule is to identify and establish a process to dispose of obsolete records. The retention schedule was developed in compliance with California Government Code Section 34090 et seq. and will be under periodic review to comply with changes in applicable retention laws.
In accordance with the approved retention and destruction process, attached is “Exhibit A,” the destruction request form. The request forms are drafted under the oversight of the respective department heads and reviewed by the City Clerk and City Attorney.
STAFF ANALYSIS:
Staff continue to review destruction-eligible records to comply with State law and the City’s approved retention and destruction schedule. In addition, proper records management will mitigate off-site storage costs. Staff are also pursuing the destruction of obsolete physical records to better utilize office and storage space at various City worksites. The destruction of obsolete records is format neutral, including both digital and physical records that have met the approved retention period. The attached Exhibit “A” is
C – Page 34 of 913
City Council Staff Report
September 9, 2026 -- Page 2
Destruction of Obsolete Records
a request by the Palm Springs Police Department for the destruction of physical records in accordance with the City’s adopted retention schedule.
The records pending approval for destruction are felony police reports and non-fatal reports including misdemeanors, citations, and non-criminal occurrences within the date range of December 14, 2001, to April 15, 2002. These records are eligible for destruction pursuant to California Penal Code Section Nos. 799-801.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities. Approval of this action supports improvements to City infrastructure and facilities by enabling more efficient use of office and storage space.
REVIEWED BY:
Department Director: Brenda Pree
Deputy City Manager: Jeremy Hammond
City Manager: Scott Stiles
ATTACHMENTS:
A. Draft Resolution
B. Exhibit A – Records Destruction Request Form (Palm Springs Police Department)
C – Page 35 of 913
Attachment A
Draft Resolution
C – Page 36 of 913
Resolution No. _____
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AUTHORIZING THE
DESTRUCTION OF RECORDS (AS IDENTIFIED ON
EXHIBIT “A”) AND IN COMPLIANCE WITH THE
RETENTION SCHEDULE ADOPTED PER RESOLUTION
NO. 25239.
WHEREAS, on September 15, 1999, the Palm Springs City Council adopted Resolution No. 19644 establishing general guidelines for records retention and directed departments to establish individual retention schedules complaint with Section 34090 of the California Government Code.
WHEREAS, on March 16, 2005, the City Council adopted Resolution No. 21227, establishing further guidance on retention requirements not previously addressed regarding Resolution No. 19644
WHEREAS, on July 25, 2024, The City Council adopted Resolution No. 25239 implementing a revised records retention schedule and destruction policy WHEREAS, the revised policy complies with all requirements of Government Code Section 34090 et Seq. for the destruction of obsolete records; and WHEREAS, in accordance with the Policy, this Resolution is presented to the City Council and City Attorney for approval to destroy obsolete records in compliance with the approved retention and all applicable State and Federal Laws.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby finds and determines the records identified in “Exhibit A” and Exhibit “B” exceed the applicable retention period set forth by law and the city’s policy and are no longer needed or required to be kept by statue or law.
SECTION 2. The City Council hereby authorizes and directs the destruction of the records described on “Exhibit A”.
SECTION 3. In accordance with the policy and requirements of Government Code Section 34090 et seq., The City Council hereby authorizes the City Clerk to destroy the above-described City records without making a copy thereof.
SECTION 4. This Resolution shall be effective immediately upon its passage and approval.
C – Page 37 of 913
Resolution No. _____
ADOPTED THIS ___DAY OF ________________, _________.
SCOTT C. STILES
CITY MANAGER
ATTEST:
BRENDA PREE
CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on _______________________, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.
Brenda Pree, City Clerk
City of Palm Springs, California
C – Page 38 of 913
Resolution No. _____
EXHIBIT “A”
C – Page 39 of 913
Attachment B -
"Exhibit A" to Resolution
(Request Form)
C – Page 40 of 913
C – Page 41 of 913
CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 9, 2026 CONSENT CALENDAR
SUBJECT: TEN (10) DAY MORATORIUM REPORT REGARDING ORDINANCE NO. 2134 TEMPORARILY PROHIBITING THE APPROVAL OF DATA
CENTERS
FROM: Scott C. Stiles, City Manager
BY: Department of Planning Services
SUMMARY:
On August 26, 2026, the City Council adopted an interim urgency ordinance (Ordinance No. 2134) that temporarily suspended the City’s approval of new applications for data centers. The interim urgency ordinance is effective for forty-five (45) days, set to expire on October 10, 2026.
RECOMMENDATION:
Receive and file.
BACKGROUND:
Ordinance No. 2134 was adopted pursuant to California Government Code Section 65858 and provides that the ordinance shall expire forty-five (45) days from its date of adoption (October 10, 2026), unless the ordinance is extended by the Palm Springs City Council. The City Council may adopt an extension of an interim urgency ordinance for an additional ten (10) months fifteen (15) days or an additional twenty-two (22) months fifteen (15) days, for a total period of one (1) or two (2) years.
Government Code Section 65858(d) further requires that at least ten (10) days prior to the expiration or any extension of the moratorium, the City Council must issue a written report describing the measures taken to alleviate the conditions which led to the adoption of the ordinance. This staff report serves as the required written report.
STAFF ANALYSIS:
Since the initial adoption of the moratorium, the Department of Planning Services has coordinated with the consulting team undertaking the comprehensive review of the City’s
D – Page 42 of 913
City Council Staff Report
September 9, 2026 -- Page 2
Ten (10) Day Moratorium Report Regarding Ordinance No. 2134 Zoning Code to engage them on studying the benefits and impacts of data centers as well as best practices for mitigating those impacts through potential regulations to be housed in the updated zoning framework. Further review includes conducting additional research and analysis, conducting public outreach, and a final review by the Planning Commission and City Council at the time a draft Zoning Code is ready for review.
Additional time is necessary to thoughtfully and thoroughly review these land uses both internally and with the community. As such, Staff will present to the Council at its meeting of September 30, 2026, a request to extend the moratorium for an additional period of twenty-two (22) months fifteen (15) days, for a total period of two (2) years. The moratorium may be rescinded by Council at such time that a new Zoning Code is adopted establishing regulations for data centers.
ENVIRONMENTAL ASSESSMENT:
This report is not a project in accordance with the California Environmental Quality Act (CEQA) because it has no potential for resulting in physical changes to the environment, directly or indirectly.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
None.
REVIEWED BY:
Department Director: Christopher Hadwin
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
None.
D – Page 43 of 913
CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 9, 2026 CONSENT CALENDAR
SUBJECT: AUTHORIZE THE CITY OF PALM SPRINGS TO ENTER INTO A THIRTYSIX MONTH LEASE AGREEMENT WITH CLUB CAR, LLC FOR ONE HUNDRED FIFTY-TWO (152) 2027 TEMPO LITHIUM-ION GOLF CARS, FIVE (5) 2027 CARRYALL 500 – MAINTENANCE CART – LITHIUM, ONE (1) 2027 CARRYALL 500 – DRIVING RANGE UNIT, ONE (1) 2027 CARRYALL 500 – CAFÉ EXPRESS – LITHIUM, AND ONE (1) 2027 CARRYALL 500 – MAINTENANCE CART – LITHIUM TO SERVE THE
PALM SPRINGS TAHQUITZ CREEK GOLF RESORT
FROM: Scott C. Stiles, City Manager
BY: Department of Parks & Recreation
SUMMARY:
The Department of Parks & Recreation seeks authorization to enter into a thirty-six month lease agreement with Club Car, LLC, for a new fleet of golf cars, range picker, maintenance vehicles, and a beverage cart, replacing the current leased golf cars to serve the Palm Springs Tahquitz Creek Golf Resort.
RECOMMENDATION:
1) Approve a thirty-six month lease (Attachment A) of one hundred fifty-two 2027 Tempo Lithium Ion Golf Cars, five 2027 CarryAll 500 – Maintenance Cart – Lithium maintenance vehicles, one 2027 CarryAll 500 – Driving Range Unit, one 2027 CarryAll 500 – CAFÉ Express – Lithium beverage cart, one 2027 CarryAll 500 – Maintenance Cart – Lithium maintenance vehicle, subject to final City Manager and City Attorney approval, through Club Car, LLC, for a monthly lease payment of $25,576.79, and a total lease agreement amount of $920,764.46; and 2) Authorize the City Manager, or designee, to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
A copy of Club Car, LLC’s public integrity disclosure form is included as Attachment B.
E – Page 44 of 913
City Council Staff Report
September 9, 2026 -- Page 2
Golf Cars and Ancillary Equipment Lease Agreement
BACKGROUND:
Century Golf Partners Management (“Century Golf”) operates and manages the Tahquitz Creek Golf Resort, comprised of both the Resort and Legends golf courses, on behalf of the City of Palm Springs. Since assuming management responsibilities of the City’s two golf courses in 2008, Century Golf has successfully operated and maintained these facilities, providing comprehensive management of all aspects of the City golf courses and is one of the most experienced golf course operators in the country.
Historically, the City has entered into various lease agreements with financial institutions to provide both golf cars and ancillary vehicles for the Tahquitz Creek Golf Resort and Legends course. On September 29, 2022, the City Council approved the current lease agreements with Yamaha Motor Finance Corporation, U.S.A. for the golf cars, range picker, utility vehicles and beverage cart. The current lease agreement expired in June 2026.
STAFF ANALYSIS:
Century Golf works diligently to secure the best pricing available in the golf industry. Their ownership and association of forty-five golf properties and more than four thousand five hundred leased golf carts provides a strategic position with which they aggressively negotiate corporate pricing agreements with the most qualified equipment providers in the industry. As such, they can extend their leveraged 39% corporate pricing discounts to the City's benefit, enabling the best overall value for public funds.
The City often purchases directly with vendors through cooperative purchasing agreements. In determining if the lease pricing secured by Century Golf was competitive, staff reviewed the current Cooperative Purchasing Agreement through Sourcewell with Club Car (Contract #091024-CCR) which offers a discount range from 4%-34% off MSRP, which is less competitive than has been offered directly through Century Golf. On this basis, staff recommends that the City Council award the lease agreement, leveraging the volume pricing discounts that Century Golf is able to obtain on the City’s behalf.
Pursuant to Section 7.03.09 of the Municipal Code, the City Council may award a contract without competition, when it is determined that an unusual or unique situation exists, in that due to experience and expertise demonstrated in prior contracts with the City, or experience or expertise with similarly described contracts with other public agencies, a particular contract is uniquely qualified for a particular procurement, that makes the application of this Title contrary to the public interest.
Century Golf solicited quotes for lease of the golf cars and ancillary equipment from three national vendors: Club Car, EZ Go, and Yamaha. A summary of the lease costs from each vendor is shown in the following tables.
E – Page 45 of 913
City Council Staff Report
September 9, 2026 -- Page 3
Golf Cars and Ancillary Equipment Lease Agreement
Club Car Quantity Lease/Month Total Month
w/Tax
Annually 36 Month
Lease
Golf Cars 152 $139.00 $23,082.34 $276,988.08 $830,964.24 Maintenance Cart 5 $365.33 $1,995.62 $23,947.38 $71,842.14 Range Unit 1 $456.60 $498.84 $5,986.03 $17,958.08
Beverage Cart 1 FREE USE FREE USE FREE USE FREE USE
Maintenance Cart 1 FREE USE FREE USE FREE USE FREE USE
Total Monthly $25,576.79
Total Annually $306,921.49
Total 36-Month Lease $920,764.46
Yamaha Quantity Lease/Month Total Month
w/Tax
Annually 36 Month
Lease
Golf Cars 152 $143.00 $23,746.58 $284,958.96 $854,876.88 Maintenance Cart 6 $299.00 $1,794.00 $23,519.34 $70,558.02 Range Unit 1 $399.00 $399.00 $5,230.89 $15,692.67
Total Monthly $26,142.43
Total Annually $313,709.19
Total 36-Month Lease* $941,127.57
*Yamaha was only able to provide three (3) of the four (4) required carts. Yamaha’s total of $941,127.57 plus the cost of the beverage cart $26,150.52 provide for a total three six (36) month lease cost of $967,278.09.
EZ Go Quantity Lease/Month Total Month
w/Tax
Annually 36 Month
Lease
Golf Cars 152 $139.72 $23,201.90 $278,422.84 $835,268.52 Range Unit 1 $438.41 $478.96 $5,747.56 $17,242.67
Total Monthly $23,680.87
Total Annually $284,170.39
Total 36-Month Lease* $852,511.18
*EZ Go was only able to provide two (2) of the four (4) required carts. EZ Go’s total of $852,511.18 plus the cost of the beverage cart $26,150.52 and six (6) maintenance carts $70,558.02 provide for a total three six (36) month lease cost of $949,219.72.
Wells Fargo Quantity Lease/Month Total Month
w/Tax
Annually 36 Month
Lease
Beverage Cart 1 $664.90 $726.40 $8,716.84 $26,150.52
Total 36-Month Lease* $26,150.52
Club Car, LLC provided the lowest lease rate and has all of the needed fleet of new golf cars and ancillary equipment to operate the Tahquitz Creek Golf Resort.
Century Golf has worked closely with Parks & Recreation staff as well as members of the Parks & Recreation Commission – Golf Ad-Hoc Committee to ensure these new golf cars and ancillary vehicles fulfill the needs of the golf resort.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California
E – Page 46 of 913
City Council Staff Report
September 9, 2026 -- Page 4
Golf Cars and Ancillary Equipment Lease Agreement
Environmental Quality Act (CEQA). Pursuant to Section 15375(a), a “Project” means the whole of an action which has a potential for resulting in 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) 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:
The estimated total monthly lease payment for the fleet of golf cars and ancillary equipment is $25,576.79, a total of $920,764.46 over the thirty-six-month term of the lease agreement. Funding for these agreements is included within the golf course management fund for the Tahquitz Creek Golf Resort and will be budgeted in future fiscal years.
REVIEWED BY:
Director of Parks & Recreation: Nicholas S. Gonzalez
Procurement & Contracting Manager: Tabitha Richards
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Lease Agreement
B. Public Integrity Disclosure
E – Page 47 of 913
ATTACHMENT A
Lease Agreement
E – Page 48 of 913
DLL 4843-2 - golf (11/15) Page 1 of 1
August 21, 2026
CITY OF PALM SPRINGS, CA
3200 E TAHQUITZ CANYON WAY
PALM SPRINGS, CA 92262
I have enclosed the Lease documentation for the equipment supplied by CLUB CAR NATIONAL ACCOUNT. After having the documents signed, please fax or email them back to me at 515-334-7897 or [email protected].
Please have the Mayor of Palm Springs sign and date the following:
o Lease Agreement
o Exhibit A – Equipment Description
o Maintenance Agreement
o Property Tax Acknowledgment
o Delivery and Acceptance Certificate
o May be completed via fax, if equipment has not been delivered at time of document signing o Agreement to Provide Physical Damage Insurance
o Authorization Agreement for Automatic Withdrawals (ACH) (OPTIONAL) o Opinion of Lessee’s Counsel (required for leases over $500,000) If you have any questions, please feel free to contact me at 1-800-873-2474. Thank you for your business.
Sincerely,
Account Manager – Golf, Turf & Recreational Products
E – Page 49 of 913
LEASE AGREEMENT (Golf Equipment – Municipal Entities)
DLL 4833-2 (05/15) For municipal golf leases in all states except AR Page 1 of 6 TO OUR VALUED CUSTOMER: This Lease Agreement (this “Lease”) has been written in “Plain English.” The words “You” and “Your” are used in this Lease to mean the Lessee identified below. The words “We,” “Us” and “Our” are used in this Lease to mean the Lessor who is DLL Finance LLC, 8001 Birchwood Court, P.O. Box 2000, Johnston, IA 50131 and any of our affiliates, subsidiaries, successors and assigns.
LESSEE
Full Legal Name: CITY OF PALM SPRINGS, CA
Mailing Address
3200 E TAHQUITZ CANYON WAY
City
PALM SPRINGS
State
C 92262
Zip
92262
SUPPLIER
Name: CLUB CAR NATIONAL ACCOUNT
Address: PO BOX 204658, AUGUSTA, GA 30917
Phone: 706-228-2636
TERM AND LEASE PAYMENT SCHEDULE
You agree to the following terms:
TERM
The Initial Term (“Term”) shall be 37 months from the
Commencement Date.
Commencing on: OR the 1st day of the month immediately following Borrower’s signature on the Delivery and Acceptance Certificate and Lender’s receipt thereof (the “Commencement Date”).
PAYMENT
The aggregate sum due under this Lease includes lease payments and other amounts required to be paid under this Lease (each payment shall be referred to as a “Payment” and collectively as “the Payments”) and shall be payable as follows:
The lease payment shall be as follows (the “Lease Payment”):
The first scheduled payment will be due on: OR the Commencement Date.
Each payment thereafter will be due:
on the 1st day of the month or as indicated below.
Number of Payments:
36 Payment Amount:
$23,410.81
Payment Frequency: Monthly Quarterly; or
On the following day(s)
Use tax per Payment
(estimated):
$2,165.50
Total Payment Amount with Sales/
Use Taxes (estimated):
$25,576.31
Security Deposit:
0.00 TAXES
Sales/use tax has been estimated above to provide an approximation of the taxes and total Payment amount. The actual sales and use tax may vary and may be, depending on state law, collected at the time this Lease is entered into or added to each Payment on the terms of this Lease. Property tax will be billed annually and is due on invoice. If the use tax payment box above is empty or indicates $0, we anticipate receiving a valid exemption certificate. If such certificate is not received, Sales or use tax may be billed to you and/or added to the Payments.
PAYMENTS. You agree to make all Payments due under this Lease to Us at P.O. Box 14535, Des Moines, IA 50306 or at such other address as We may designate from time to time. Your Payments shall constitute a current expense and do not constitute a mandatory payment obligation of You in any fiscal year beyond Your current fiscal year. Your obligations hereunder shall not be construed to be a debt in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness by You, nor shall anything contained herein constitute a pledge of Your general credit, tax revenues, funds, or moneys.
INSURANCE & TAXES. You are required to provide and maintain insurance related to the Equipment (defined below) and other items described in this Lease and to pay any property, use, sales, excise, and other taxes related to this Lease or any Equipment and to pay all license and registration fees assessed against this Lease or any Equipment. You agree to furnish Us with satisfactory evidence of Your tax exemption.
DELINQUENT PAYMENTS AND RETURNED CHECK CHARGE. Each Payment past due more than 10 days shall be subject to a late charge accrued at a rate equal to 1.75% per month from the due date until paid or $1, whichever is greater, but in no event shall any late charge exceed the maximum amount allowed by law. If any check or payment is returned or rejected for insufficient funds or any other reason, You shall pay to Us a fee of $25.00 or such other amount established by Us from time to time not to exceed the maximum amount permitted under applicable law. In Our discretion, such amount shall be paid on demand or added to the next Payment and You agree to pay such increased Payment amount.
TERMS AND CONDITIONS
1. Lease. We agree to lease to You and you agree to lease from Us, the equipment listed on the Equipment Schedule attached hereto and incorporated herein by reference, including all replacement parts, repairs, additions and accessories (the “Equipment”) on the terms and conditions of this Lease and all exhibits, schedules and amendments hereto.
2. Term. Provided this Lease has been accepted and executed by both parties, this Lease shall become effective upon the Commencement Date and shall remain effective for an original term (the “Original Term”) ending at the end of Your budget year in effect on the Commencement Date and shall be continued by You for additional one-year terms (each, a “Renewal Term”) coinciding with Your budget year up to the total number of months indicated above as the Full Lease Term; provided, however, that at the end of the Original Term and at the end of each Renewal Term, You shall be deemed to have continued this Lease for the next Renewal Term unless You shall have terminated this Lease pursuant to Section 3. Payments under this Lease shall be due as set forth on the Payment Schedule until the balance of the Payments and any additional Payments or expenses chargeable to You are paid in full. Payment amounts and other amounts required to be paid under this Lease shall be referred to in this lease as “Payments.” Unless otherwise indicated in the Payment schedule provided above, the first Payment under this Lease is due when this Lease is signed by You and the remaining Payments will be due on the first day of each subsequent month through the expiration of the Term.
You agree to pay Us the amount of all search fees, filing fees and administration fees specified in this Lease at the time this Lease is executed and, in any event, upon demand by Us, and to reimburse Us for the amount of all search and filing fees incurred by Us in connection with this Lease upon demand by Us. EXCEPT AS PROVIDED IN SECTION Lessee’s Budget Year Ends in the Month of: Lease Agreement Number: FA-589724
E – Page 50 of 913
DLL 4833-2 (05/15) For municipal golf leases in all states except AR Page 2 of 6 3, THIS LEASE IS NON-CANCELABLE AND YOUR OBLIGATION TO PAY IN FULL
THE PAYMENTS AND ANY OTHER AMOUNT DUE HEREUNDER IS ABSOLUTE,
IRREVOCABLE AND UNCONDITIONAL AND IS NOT SUBJECT TO AND SHALL NOT
BE AFFECTED BY ANY ABATEMENT, SET-OFF, DISPUTE, CLAIM, COUNTERCLAIM,
DEDUCTION, DEFENSE OR OTHER RIGHT WHICH YOU MAY HAVE OR ASSERT
AGAINST ANY SUPPLIER, DEALER, VENDOR OR MANUFACTURER OF THE
EQUIPMENT OR ANY OTHER PARTY FOR ANY REASON WHATSOEVER, ALL OF WHICH YOU HEREBY EXPRESSLY WAIVE AS AGAINST US. YOU AGREE NOT TO
ASSERT AGAINST US ANY CLAIMS OR DEFENSES YOU MAY HAVE WITH RESPECT TO ANY EQUIPMENT. In no case shall We be liable for any special, incidental or consequential damages based upon any legal theory, including, but not limited to, loss of profits, loss of use of the Equipment, the claims of third parties or damage to the Equipment.
3. Non-Appropriation of Funds. Notwithstanding anything to the contrary contained herein, You warrant that You have funds available to pay all Payments that are to be paid hereunder through the end of Your current appropriation period. If Your legislative body or other funding authority does not appropriate funds for Payments for any subsequent appropriation period and You do not otherwise have funds available to lawfully pay the Payments (a “Non Appropriation Event”), You may, subject to the conditions herein and upon prior written notice to Us (the “Non-Appropriation Notice”), effective the later of (a) 60 days after such Non-Appropriation Notice, or (b) the end of Your then-current appropriation period (the “Non-Appropriation Date”), terminate this Lease and be released of Your obligation to make all Payments coming due after the Non-Appropriation Date. As a condition to exercising its rights under this Section, You shall (a) provide with the Non-Appropriation Notice a sworn affidavit of a responsible official that a NonAppropriation Event has occurred and that You have attempted to obtain funding, in good faith, from all available funding sources, but those efforts have failed to obtain funding for the Payments, (b) return the Equipment on or before the Non-Appropriation Date to Us or a location designated by Us, in the condition required by, and in accordance with the return provisions of, this Lease, at Your expense, and (c) pay Us all sums payable to Us under this Lease up to the Non-Appropriation Date. In the event of any NonAppropriation Event, We shall retain all sums paid hereunder or under the Lease, including the security deposit, if any, specified in this Lease. Termination pursuant to this Section shall not constitute a Default under this Lease; provided that the Parties agree that this Section is not intended to permit You to terminate this Lease at will or for convenience.
4. Delivery and Acceptance; DISCLAIMER OF WARRANTIES. You agree to accept each item of Equipment in its as-is condition when delivered and, if requested by Us, to execute the Delivery and Acceptance Certificate supplied by Us as evidence thereof.
YOU ACKNOWLEDGE THAT WE MAKE NO WARRANTY, EITHER EXPRESS OR
IMPLIED WITH RESPECT TO ANY EQUIPMENT, INCLUDING WITHOUT LIMITATION,
ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. You also agree that neither the manufacturer nor the supplier of the Equipment is an agent of Ours. If the Equipment is covered by a manufacturer’s warranty, such warranty shall be extended to You if automatically assignable. You agree that there shall be no abatement of any Payment obligation because of unavailability of the Equipment during periods of its warranted or non-warranted repair. You agree to hold Us harmless from specific performance of this Lease and from damages, if, for any reason, the supplier, manufacturer, vendor or any other party fails to deliver, or delays in delivery of, the Equipment so ordered or if the Equipment is unsatisfactory for any reason whatsoever. You agree that any delay in delivery of or defect in the Equipment shall not affect the validity of this Lease or the obligation to make Payments hereunder. Your execution of a Delivery and Acceptance Certificate in the form attached hereto shall conclusively establish that the Equipment covered thereby is acceptable to You for all purposes of this Lease.
5. Use, Maintenance and Return of Equipment. You agree that all Equipment is to be used for commercial purposes and that the Equipment will not be moved outside of the contiguous forty-eight states of the United States and to notify Us of each change in the place where the Equipment is located or used not more than twenty (20) days following each change in location. You further agree as follows: (a) to operate the Equipment in a careful manner; (b) to maintain the Equipment in good repair and repair any damage thereto; (c) restrict the Equipment’s use to experienced and competent operators employed by You; (d) to use the Equipment only in the conduct of Your business; (e) properly house and store the Equipment when not in use; (f) not to rent or sub-lease the Equipment without Our prior written consent except as described in Section 17; (g) to not allow any lien, encumbrance or security interest (other than as created pursuant to this Lease, if any) attach to any Equipment; (h) to comply with all laws and regulations relating to the possession, operation and use of the Equipment; and (i) to pay all license and registration fees and all sales, use, excise, property and all other federal, state and local taxes assessable against this Lease and/or any Equipment, including without limitation, its use or operation and to reimburse Us, upon demand, as additional rent, the amount of any such taxes or costs paid by Us. Upon the expiration or termination of the Lease, You agree to make the Equipment available for pick up by Us at Your cost and expense and in the same condition as when delivered, ordinary wear and tear excepted, free of any lien, encumbrance or security interest claimed by any person. You will not in any event subject the Equipment to any abrasive, corrosive or abnormal working conditions or any environmentally hazardous substance (under any applicable federal, state or local law, rule or regulation) without Our prior written consent. You shall notify Us of any change in the state of Your location (as such term is defined in the Uniform Commercial Code) not more than twenty (20) days following each change. In addition to all other amounts payable hereunder, You hereby agree to pay to Us, upon demand, all charges for the late return of any Equipment, all charges incurred by Us to repair any excessive wear and tear to any Equipment (including but not limited to repair or replacement of engine, drive train, glass, metal work and trim, rips, tears, tires in an unsafe condition and any other unsafe or abnormal condition of the Equipment), plus an amount equal to the Rate Per Excess Hour multiplied by any units of use of any Equipment in excess of the Hours of Use During Lease Term shown on the Lease. You agree to be responsible for and to pay the entire cost of all necessary maintenance and repair of the Equipment. In maintaining and repairing any Equipment, You shall conform to the recommended practices and procedures of the manufacturer of the Equipment, and shall not, without Our approval, effect any modification or alteration of or to any Equipment. You shall comply with any mandatory or recommended product recalls issued by the manufacturer. All replacement parts and improvements incorporated into any Equipment shall become Our property. Should this Lease be terminated prior to the expiration of the Term, the applicable Hours of Use During Lease Term will be prorated by multiplying this unit total by the actual lease term in months divided by the Term in months and the Rate Per Excess Hour will apply to all units of use in excess of this prorated unit total. We may, at any reasonable time, access the premises where the Equipment is located so that We may inspect the Equipment’s existence, location, installation, condition and/or maintenance.
6. Risk of Use, Damage and Destruction. You assume all risk arising from the possession and operation of the Equipment and agree to defend and indemnify Us and hold Us harmless from all claims, demands, damages and losses, including reasonable attorneys’ fees and expenses, arising therefrom. In the event of the theft, destruction or other total loss with respect to any item of Equipment (each item of Equipment singularly referred to herein as the “machine”) during the Term or any extension thereof, You shall provide Us prompt written notice. In the event of damage thereto from any cause which in Our judgment cannot be economically repaired, or in the event of the loss of the machine, its theft, or removal from Your possession by the operation of law or otherwise, then, but only with respect to that machine, this Lease shall terminate and You shall immediately pay to Us, only with respect to that machine, the sum of all past due and future Payments for the then-current Term and interest thereon, Taxes, fees and charges to be made but not yet due under the terms of this Lease for the then-current Term, plus the residual value associated with such machine, all as indicated in Our books and records. In the event the Lease covers two or more items of equipment, the Payment allocation shall be based on the pro-rata relationship of the Minimum Equipment Insurance Amount Required, as shown in this Lease, to the total Payments. The Payments due under this Lease on the remaining items of equipment following such termination shall be reduced by the unpaid balance of the Payments allocable to the lost piece of equipment as set forth above. The amount of any insurance proceeds received by Us because of such destruction or event, and the amount received by Us upon the disposition of the machine should it be recovered, shall be deducted (i) first, from the residual value of such machine as indicated in Our books and records (the “Residual Value”), and (ii) second, from the Payments, any excess amount over the Residual Value. In the event of damage to any machine, which damage in Our judgment can be economically repaired, then this Lease shall not be terminated with respect to the machine, but rather the machine shall be restored to its original condition by You, at Your expense. We shall apply the amount of any insurance proceeds received by Us because of such damage first to the repair of the machine and any excess amount of insurance proceeds shall be credited to the Payments.
7. Insurance. You shall purchase and maintain, at Your expense: (a) standard all risk type property damage insurance (covering theft, destruction and/or damage) for the Equipment’s full replacement value and in no event less than the Minimum Equipment Insurance Amount Required (as indicated on the Equipment Schedule) with a maximum deductible equal to the greater of $500.00 or five percent (5.0%) of the adjusted loss; (b) liability insurance in an amount of at least one million dollars ($1,000,000) (five million dollars ($5,000,000) if the Equipment or any single machine is deemed a “motor vehicle” under applicable law in the state where You are located) that protects You and Us against the risk of personal injury and physical damage (to property other than the Equipment itself) arising out of or resulting from or because of the operation of the Equipment; and (c) workers’ compensation coverage as required by the laws of the state in which You are located. All insurance required herein must be in a form and from an insurer satisfactory to Us and You shall keep such insurance in effect during the Full Lease Term. Evidence of all such insurance shall be provided to Us and such insurance shall provide Us with 10 days advance notice of modification or cancellation and name Us as loss payee. If such insurance is modified, cancelled or allowed to lapse, We may (but shall not be obligated to) purchase or otherwise provide such insurance from an insurer of Our choice, which may be an affiliate of Ours. The costs, limits, terms, conditions and coverage of such replacement insurance, if any, may vary from any previous coverage. We may add the costs of acquiring and maintaining such insurance and Our fees for Our services in placing and maintaining such insurance (collectively “Insurance Charge”) to the Payments and You agree to pay such amount, together with interest thereon at a rate per month of 1.75% from the date such insurance was purchased or provided by Us until paid. You agree that such Insurance Charge and additional amounts and the interest thereon shall, as specified by Us, either be paid on demand or be added to the Payments and You promise to pay the resulting increase in the Payments and agree that We may make a profit. We shall have no responsibility to You for the cost or appropriateness of the premium for any insurance, the creditworthiness of any insurance company, the rebate or refund of any insurance premium to which You may be entitled or any other matter relating to any insurance even if any insurance was provided through a group policy arranged by Us. Nothing in this Lease will create an insurance relationship of any type between Us and/or any person or party. Insurance coverage for personal liability or physical damage caused to the property of others is not provided.
8. UCC Filings; Article 2A Provisions; Finance Lease Status. We are the owner of and will hold title to the Equipment under this Lease. Although the Equipment may become attached to real estate, it is and will remain personal property and will not become a fixture. If this Lease is deemed to be a security agreement, You grant us a security interest in the Equipment, whether categorized as inventory, goods or otherwise, under the Uniform Commercial Code (“UCC”), as collateral to secure payment of all of Your present and future obligations owed to Us including without limitation, Your Payments and We shall be entitled to all rights of a secured party under the applicable UCC with respect thereto. You authorize Us to prepare and file against You a financing statement describing the Equipment. You hereby authorize, ratify and approve any financing statement covering Equipment filed by Us on or prior to the date hereof. The parties intend this Lease to be a true lease and the filing of a financing statement shall not be construed as evidence to the contrary. You agree Article 2A- Leases of the UCC applies to this Lease, and this Lease will be considered a “Finance Lease” as that term is defined in Article 2A. By signing this Lease, You acknowledge and agree that the Supplier identified in the Lease is the supplier (as that term if defined in Article 2A of the UCC) of the Equipment and that You Have been informed that You are entitled to the promises and warranties provided by the manufacturer, dealer, vendor or other person supplying the Equipment in connection with the contract by which We acquired the Equipment (the “Supply Contract”) and that You may contact the manufacturer, supplier, dealer or vendor of the Equipment for a description of any rights or warranties that You may be entitled to under the Supply Contract. With respect to this Lease, TO THE
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DLL 4833-2 (05/15) For municipal golf leases in all states except AR Page 3 of 6
EXTENT PERMITTED BY APPLICABLE LAW, YOU WAIVE ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE BY UCC ARTICLE 2A, including without limitation, Section 2A-508 through 2A-522 of the UCC. You also represent that all trade-in property is free and clear of all security interests, liens and encumbrances.
9. Assignment / Sub-Lease. You may not assign this Lease or any of Your rights hereunder, nor may You sell, transfer, sublease, rent or lend any Equipment or permit it to be used by anyone other than Your employees without Our prior written consent except as described in section 18. We may assign this Lease without notice or consent and the assignee shall succeed to all of Our rights. Any such assignee shall have all of Our rights, remedies, powers and privileges under this Lease, but shall have none of Our obligations.
10. Default. Each of the following is a “Default” under this Lease: (a) You fail to pay any Payment or any other payment obligation when due under this Lease; (b) You do not perform any of Your other obligations under this Lease or in any other agreement with Us or with any of Our affiliates; (c) any representation or warranty made by You proves to be incorrect in any material respect when made; (d) You become insolvent, or are generally unable to pay Your debts when due, You dissolve or are dissolved, or You assign Your assets for the benefit of Your creditors, You seek appointment of a receiver, custodian or other similar official for You or for Your assets, or You commence or have commenced against You any action for relief under any bankruptcy, insolvency or reorganization laws; (e) You sell all or substantially all of Your assets or property, (f) You shall or shall attempt to abandon, remove, sell, encumber, rent or sublet any item of Equipment except as described in section 18; (g) You shall suffer a material adverse change in Your financial condition or operations; (h) You shall cause or suffer to exist any sale or transfer of any interest which would result in a change in majority ownership of You; (i) You shall amalgamate, merge or consolidate with another entity without Our consent; (j) any guarantor of Your obligations under this Lease dies, does not perform such guarantor’s obligations under the guaranty, or becomes subject to one of the events listed in clause (d), (e), (f), (g), (h) or (i) above; or (k) any letter of credit required under this Lease is breached, canceled, accelerated, terminated or not renewed for any reason.
11. Remedies. In the event of a Default or an event which, with the passage of time, would constitute a Default hereunder, We may, at Our option: (a) cancel or terminate this Lease or any or all other agreements that We have entered into with You; (b) declare the entire unpaid balance of all Payments immediately due and payable without notice or demand and require You to immediately pay Us, as compensation for loss of Our bargain and not as a penalty, a sum equal to (i) all past due and future Payments and interest thereon for the then-current Term, (ii) Taxes, fees and charges to be made but not yet due under the terms of this Lease for the then-current Term, and (iii) the Residual Value of the Equipment; (c) require You to deliver the Equipment to Us; (d) peacefully repossess the Equipment without court order and You will not make any claims against Us or our agents for damages or trespass or any other reason; (e) appoint a receiver/manager; (f) charge You interest on all monies due to Us at the rate of 1.75% per month from the due date thereof until paid but in no event more than the maximum rate permitted by law; (g) advise any or all account parties and any of Your renters, lessees and borrowers of the Equipment to make all rental, lease and loan payments to Us and/or direct them to return the Equipment to Us upon the expiration of the rental, lease or loan term; and (h) exercise any other right or remedy available at law or in equity. You agree to pay all of Our costs and expenses, including, without limitation, reasonable attorney’s fees and expenses and collection agency fees and expenses, of enforcing Our rights against You, for the recovery or repossession of Equipment and in the collection of Your obligations to Us under this Lease. If We take possession of any Equipment, We may sell, re-lease or otherwise dispose of it with or without notice, at a public or private sale, on Your premises or elsewhere and apply the net proceeds (after We have deducted all costs related to the sale or disposition of the Equipment) (i) first, to the Residual Value; (ii) second, to Payments, Taxes, fees and charges that would have become due in the course of the Full Lease Term; and (iii) to the amounts that You owe Us. You agree that if notice of sale is required by law to be given, 10 days’ notice shall constitute reasonable notice. You will remain responsible for any amounts that remain due after We have applied such net proceeds. If You fail to deliver the Equipment upon demand by Us or fail to return the Equipment in a timely manner, as determined by Us, upon the termination or expiration of this Lease or upon Default and We do not recover the Equipment, then You shall be additionally liable to Us for the fair market value of the Equipment at the time of termination or expiration of this Lease or at the time of Default, whichever is earlier. The remedies provided by this Lease in favor of Us shall not be deemed exclusive, but shall be cumulative and in addition to all other remedies in Our favor existing at law or equity or by statute or otherwise, and may be enforced concurrently or separately. No failure or delay on Our part in exercising any right or remedy shall operate as a waiver thereof or modify the terms of this Lease. A waiver of default shall not be a waiver of any other or subsequent default. Our recovery hereunder shall not exceed the maximum recovery permitted by law.
12. Renewal. Unless this Lease is earlier terminated pursuant to Section 3, You must give Us at least 60 (but not more than 180 unless waived by Us in Our sole discretion) days written notice before the end of the Full Lease Term that You will return the Equipment to Us. Until You give Us such written notice: (a) the Lease will automatically renew on a month-to-month basis (each a “Renewal Month Term”) until You provide Us 60 days prior written notice that You will return the Equipment to Us (in which case the Lease will renew for two additional Renewal Month Terms), each Renewal Month Term will commence immediately upon the expiration of the then current term and (b) the terms of the Lease, including without limitation the amount of the Payment, will continue to apply and (c) Your security deposit, if any, will continue to be held to secure Your performance during the Renewal Month Term.
13. Indemnification. You are responsible for any losses, damages, penalties, claims, suits and actions, including, without limitation, court costs and attorney’s fees and expenses, (collectively “Claims”), whether based on a theory of strict liability or otherwise caused by or related to (a) the manufacture, installation, ownership, operation, use, lease, possession or delivery of the Equipment, (b) any defects in the Equipment or (c) this Lease (and any supplements and amendments hereof). To the maximum extent permitted by applicable law, You agree to reimburse Us for and, if We request, to defend Us against any Claims. This indemnification will continue even after the termination of this Lease or full payment of all obligations owed by You hereunder.
14. Representations, Warranties and Covenants. You represent, warrant and covenant as follows: (a) You are a municipal corporation and political subdivision duly organized and existing under the constitution and laws of the state in which You are located; (b) You are authorized under the constitution and laws of said state to enter into this Lease and the transaction contemplated hereby and to perform all of Your obligations hereunder; (c) You have been duly authorized to execute and deliver this Lease by proper action and approval of Your governing body at a meeting duly called, regularly convened and attended throughout by requisite majority of the members thereof or by other appropriate official approval; (d) this Lease constitutes Your legal, valid and binding obligation enforceable in accordance with its terms, except to the extent limited by applicable bankruptcy, insolvency, reorganization or other laws affecting creditors’ rights generally; (e) no event or condition that constitutes, or with the giving of notice or the lapse of time or both would constitute, a Default exists at the Commencement Date; (f) You have in accordance with the requirements of lawfully budgeted and appropriated sufficient funds for the current fiscal year to make the Payments scheduled to come due during the Original Term and to meet Your other obligations for the Original Term and such funds have not been extended for other purposes; (g) You will do or cause to be done all things necessary to preserve and keep in full force and effect Your existence as a corporate and body politic; (h) You have complied with such public bidding requirements as may be applicable to this Lease and Your acquisition of the Equipment hereunder; (i) there is no action suit, proceeding inquiry or investigation, at law or in equity, before or by any court, public board or body, pending or threatened against or affecting You or this Lease, nor to the best of Your knowledge is there any basis therefore wherein an unfavorable decision ruling or finding would materially adversely affect the transactions contemplated by this Lease or any other document, agreement or certificate which is used or contemplated for use in the consummation of the transactions contemplated by this Lease or materially adversely affect Your financial condition or properties; (j) You have obtained all authorizations, consents and approvals of governmental bodies or agencies required in connection with the execution and delivery of this Lease or in connection with the performance of Your obligations hereunder; (k) the entering into and performance of this Lease or any other document or agreement contemplated hereby to which the You are or are to be a party will not violate any judgment, order, law or regulation applicable to You or result in any breach of, or constitute a default under, or result in the creation of any lien, charge, security interest of other encumbrance on any of Your assets or the Equipment pursuant to any indenture, mortgage, deed of trust, bank loan or credit agreement or other instrument to which You are a party or by which You or Your assets maybe be bound, except as herein provided; (l) the Equipment described in this Lease is essential to Your function or to the services You provide to Your citizens, You have an immediate need for, and expect to make immediate use of, substantially all of the Equipment, which need is not temporary or expected to diminish in the foreseeable future and the Equipment will be used by You only for the purpose of performing one or more of Your governmental or proprietary functions consistent with the permissible scope of Your authority and will not be used in the trade or business of any other entity or person; (m) You have never failed to appropriate or otherwise make available funds sufficient to pay rental or other payments coming due under any lease purchase, installment sale or other similar agreement. Your representations, warranties and covenants shall survive beyond the Full Lease Term and the termination of this Lease.
15. Choice of Law and Jurisdiction; Waiver of Jury Trial. The law of the state of Your address shown on the front page hereof shall govern all matters relating to this Lease. This Lease shall not be enforceable by You until signed by Us in our Johnston, Iowa offices. To the extent permitted by applicable law, You also waive Your right to a trial by jury.
16. Waivers. You acknowledge receipt of an executed copy of this Lease. Where permitted by law, You waive Your right to receive a copy of any financing statement, financing change statement, verification statement or other similar instrument filed or issued at any time in respect of this Lease or any amendment hereof. To the extent permitted by law, You, being fully aware of the rights and benefits afforded to You by statute, hereby waive the benefits of all provisions of any applicable statute, including, without limitation, any statute relating to leases, conditional sales, or regulatory credit, and of any regulations made thereunder in any and all states of the United States, which would, in any manner, affect, restrict or limit Our rights hereunder. You also waive and assign to Us the right of any statutory exemption from execution or otherwise and further waive any rights to demand security for costs in the event of litigation.
17. TAX TREATMENTS AND INDEMNIFICATION. Unless otherwise provided, this Lease is entered into on the assumption that We are the owner of the Equipment for income tax purposes and are entitled to certain federal and state tax benefits available to an owner of the equipment (collectively “Tax Benefits”), including without limitation, accelerated cost recovery deductions and deductions for interest incurred by the Lessor to finance the purchase of the Equipment, available under the Internal Revenue Code of 1986, as amended (the “Code”). You represent, warrant, and covenant to Us that (a) the Equipment will be used for a governmental or proprietary purpose; (b) You are a taxexempt entity (as defined in Section 168(h) of the Code); (c) You will use all Equipment solely within the United States; and (d) You will take no position inconsistent with the assumption that We are the owner of the Equipment for any tax purposes. You and Us contemplate that the Equipment will be exempt from all Taxes. If, however, because of any of Your acts or omissions or any party acting through You, or the breach or inaccuracy of any representation, warranty or covenant made by You, We reasonably determine that we cannot claim, are not allowed to claim, or that we may lose or must recapture any or all of the Tax Benefits otherwise available with respect to the Equipment subject to any Lease (a “Tax Loss”), then You will, promptly upon demand, pay to Us an amount sufficient to provide Us the same after-tax rate of return and aggregate after-tax cash flow through the end of the term of such Lease then in effect that We would have realized but for such Tax Loss.
You will be responsible for as and when due and shall indemnify and hold Us harmless from and against all present and future taxes and other governmental charges, including, without limitation, those for sales, use, leasing and stamp taxes, license and registration fees, and amounts in lieu of such taxes and charges plus any penalties or interest on any of the above, (all of the foregoing are collectively the "Taxes"), imposed, levied upon, assessed in connection with, or as a result of the purchase, ownership, delivery, leasing, possession or use of the Equipment, or based upon or measured by the Payments or receipts with respect to this Lease. If You do not pay any of the Taxes, We have the right, but not the obligation, to pay them on Your behalf. You will not, however, be obligated to pay any taxes on or measured by Our net income. You authorize Us to add to the amount of each Payment any Taxes that may be imposed on or measured by such Payment. We do not have to contest any Taxes, fines or penalties. We will file all personal property,
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DLL 4833-2 (05/15) For municipal golf leases in all states except AR Page 4 of 6 use or other Tax returns as required by law under this Lease. In such case, You will pay to Us on demand, as an additional Payment, the amount of the personal property tax We are required to pay. You agree to reimburse Us with the next Payment for any Taxes We pay, plus a fee to Us for collecting and administering any Taxes and remitting them to the appropriate authorities on which we may make a profit and interest thereon at the highest legal rate allowed, from the date due until fully paid. If You do not pay this reimbursement with the next Payment You agree to pay Us interest on those amounts at the highest legal rate allowed from the due date until paid in full. We make no recommendation, representation or warranty as to the treatment of this Lease for tax or accounting purposes. You acknowledge that You have consulted with Your tax and accounting advisors concerning the appropriate tax and accounting treatment of this Lease and have not relied on advice from Us; and You hold Us harmless for any adverse consequences resulting from Your tax and accounting treatment of this Lease.
18. Golf Cars. If the Equipment includes golf cars, with respect to the golf cars only, notwithstanding the limitations in Section 5, 9 and 10 You may rent the golf cars on a daily or per-round basis to Your patrons, in the ordinary course of Your business. To the extent You complete an exemption certificate relative to personal property taxes on the golf cars, You agree to indemnify Us from and against any Claims related to the failure to pay personal property taxes based on such representation and You agree that you are responsible for remitting any and all required sales, use or other tax required as a result of the rental of the golf cars to patrons.
19. Financial and Credit Information; Communication Methods. You authorize Us to obtain credit bureau reports and make other credit inquiries that We determine are necessary and agree that without further notice We may use or request additional credit bureau reports to update Our information so long as You have any outstanding indebtedness or obligations owed to Us. You further agree to provide Us, promptly after request therefor by Us, such income statements, balance sheets and other financial statements and information and such federal and state income tax returns concerning You that We determine are necessary. Providing Your email address and/or telephone number in Your credit application or otherwise is Your acknowledgment that We may retain Your email address and/or telephone number for further communication with You.
You agree to allow Us to conduct business with You using email or by calling You, regardless of the purpose of Our communication, which may include, without limitation, collections and notices under Your agreements with Us. We reserve the right to use the method of communication We deem best in interacting with You.
20. Facsimile. This Lease may be executed by a party and transmitted by facsimile or electronic mail. You agree that a copy of this Lease bearing Your signature which was transmitted by facsimile or printed from an electronic file shall be admissible in any legal proceeding as evidence of its contents and its execution by the parties in the same manner as an original document. You further agree not to object to the admissibility of such copy into evidence under the business records to the hearsay rule or the best evidence rule or otherwise and expressly waive any right to do so. The original or a facsimile or electronic copy of this Lease which bears both a signature of Us and You and Our original signature shall be deemed the execution original of this Lease for the purposes of taking possession of this Lease for all other purposes.
21. Miscellaneous. You agree the terms and conditions contained in this Lease constitute the final agreement between You and Us and is the exclusive expression of our agreement regarding the lease of the Equipment. All earlier and contemporaneous negotiations and agreements between You and Us on the matters contained herein are expressly merged into and superseded by this Lease. Any modification or addition to the terms of this Lease must be in a written agreement identified as an amendment and signed by Us. You agree, however, We are authorized, without notice to You, to insert in this Lease and/or the Equipment Schedule any serial number, model numbers and/or make of any item of Equipment, correct any errors in such information reflected in this Lease and/or the Equipment Schedule and correct any other patent errors or omissions in the description of any item of Equipment reflected in the Equipment Schedule, to supply information missing from this Lease or the Equipment Schedule and to correct any obvious errors in this Lease or in the Equipment Schedule. Without limiting the foregoing, You agree we may insert the date and Number of this Lease after Your execution of the Lease. If We delay or fail to enforce any of Our rights under this Lease, We will still be entitled to enforce those rights at a later time and such rights shall not be waived. Any waiver by Us of any breach or default will not constitute a waiver by Us of any additional or subsequent breach of default nor shall it be a waiver of any of Our rights. Any waiver of a remedy, term or condition or change to the terms and conditions of this Lease must be in writing and signed by Us. All notices shall be given in writing by the party sending the notice and shall be effective when (a) deposited in the U.S. mail, with first class postage prepaid, or (b) sent by overnight courier of national reputation, in either case, addressed to the party receiving the notice at the address shown on the front of this Lease (or to any other address specified by that party in writing). All of Our rights and indemnities will survive the termination of this Lease. Our rights, privileges and indemnities, to the extent they are fairly attributable to events or conditions occurring or existing during the Term of this Lease, shall survive and be enforceable by Us and Our successors and assignees. Payments received may be applied at Our discretion to obligations hereunder or to any other indebtedness owed by You to Us despite directions, if any, appearing on the remittance or communicated to Us otherwise, and to late charges first and then to the amount owing. It is the express intent of the parties not to violate any applicable usury laws or to exceed the maximum amount of time price differential or interest, as applicable, permitted to be charged or collected by applicable law, and any such excess payment will be applied to Payments in inverse order of maturity, and any remaining excess will be refunded to You. If You do not perform any or all of Your obligations under this Lease, We have the right, but not the obligation, to take any action or pay any amounts We believe are necessary to protect Our interest. You agree to reimburse Us immediately upon Our demand for any such amounts We pay. In the event any provision of this Lease shall be determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable, the parties hereto agree such provision shall be ineffective and the remaining provisions of this Lease shall remain in full force if the essential provisions of this Lease for each party remain valid, legal, and enforceable. Any provision of this Lease which is, for any reason, unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof. This Lease and Equipment Schedule shall be binding upon and inure to the benefit of the parties and their permitted successors and assigns. You shall promptly execute and deliver to Us such further documents and take such further action as We may request to more effectively carry out the intent and purpose of this Lease and the Equipment Schedule.
Words importing the singular include the plural and vice versa and words importing gender include all genders. If more than one lessee has signed this Lease, each of You agree Your liability is joint and several. Restrictive or similar endorsements contained on or provided in connection with any Payment You make shall not be binding on Us. Time is of the essence under this Lease. .
BY SIGNING THIS AGREEMENT: (I) YOU ACKNOWLEDGE THAT YOU HAVE READ AND UNDERSTAND THE TERMS AND CONDITIONS ON EACH PAGE OF THIS
AGREEMENT (II) YOU AGREE THAT THIS IS A NET LEASE, THAT YOU CANNOT TERMINATE OR CANCEL, THAT YOU HAVE AN UNCONDITIONAL OBLIGATION TO MAKE
ALL PAYMENTS DUE, AND YOU CANNOT WITHHOLD, SET OFF OR REDUCE ANY SUCH PAYMENTS FOR ANY REASON, INCLUDING, WITHOUT LIMITATION,
FUNDAMENTAL BREACH, (III) YOU WARRANT THAT THE PERSON SIGNING THIS LEASE FOR YOU HAS THE AUTHORITY TO DO SO, (IV) YOU CONFIRM THAT YOU HAVE
DECIDED TO ENTER INTO THIS LEASE RATHER THAN PURCHASE THE EQUIPMENT FOR THE TOTAL PURCHASE PRICE AND (V) YOU AGREE THAT THIS LEASE WILL BE GOVERNED BY THE LAWS OF THE STATE OF YOUR ADDRESS ON THE FRONT PAGE HEREOF AND YOU EXPRESSLY WAIVE ANY RIGHTS TO A TRIAL BY JURY.
IN WITNESS WHEREOF, the parties have executed this Lease effective as of the date set forth on the first page of this Lease. LESSEE SIGNATURE
CITY OF PALM SPRINGS, CA
LESSOR
SIGNATURE
DLL Finance LLC,
At: 8001 Birchwood Court, Johnston, IA 50131
Lessee
Authorized Signature Authorized Signature
Print Name Title Date Print Name & Title Date
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DLL 4833-2 (05/15) For municipal golf leases in all states except AR Page 5 of 6 Equipment Schedule
New/
Used
Make and Model of Equipment Serial
Number
Minimum
Equipment
Insurance Amount
Required
Hours at
delivery
Hours during
Lease Term
Rate per
Excess
Hour
$1,154,162.71 N/A N/A N/A
NEW CLUB CAR TEMPLION ELEC GOLF CAR ( QTY 152)
NEW CLUB CAR CA500LI ELEC UTILITY
NEW CLUB CAR CA500LI ELEC UTILITY (QTY5)
NEW CLUB CAR CA500LI ELEC
NEW CLUB CAR CAFEXP ELEC BEVERAGE UNIT
Note: Although the Equipment listed above may be described as “New”, that description does not mean it was necessarily manufactured in the current year.
I have reviewed and acknowledge and agree that the Equipment description above is accurate and complete. LESSEE SIGNATURE
CITY OF PALM SPRINGS, CA
Lessee
Authorized Signature
Print Name Title Date
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DLL 4833-2 (05/15) For municipal golf leases in all states except AR Page 6 of 6 Delivery and Acceptance Certificate
New/
Used
Make and Model of Equipment
Serial
Number
Minimum
Equipment
Insurance Amount
Required
Hours at
delivery
Hours during
Lease Term Rate per Excess
Hour
N/A N/A N/A
NEW CLUB CAR TEMPLION ELEC GOLF CAR ( QTY 152) $1,154162.71 NEW CLUB CAR CA500LI ELEC UTILITY
NEW CLUB CAR CA500LI ELEC UTILITY (QTY 5)
NEW CLUB CAR CA500LI ELEC
NEW CLUB CAR CAFEXP ELEC BEVERAGE UNIT
The undersigned hereby certifies that Lessee has leased all items described in (the “Equipment”) pursuant to the Lease Agreement between DLL Finance LLC (“Lessor”) and the Lessee identified below and in the Lease Agreement No. FA-589724 (the “Lease”) and further certifies that:
(i) the Equipment has been delivered to and has been received by Lessee; (ii) all installation or other work necessary prior to the use thereof has been completed; (iii) all Equipment has been examined by Lessee, is in good operating order and condition, and is in all respects satisfactory to Lessee; (iv) the Equipment is accepted by Lessee for all purposes under the Lease Agreement and the Lease. LESSEE SIGNATURE
CITY OF PALM SPRINGS, CA
Lessee
Authorized Signature
Print Name Title Date
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Maintenance Agreement (Golf Cars)
DLL 4821-5 (09/19) Page 1 of 1
This Maintenance Agreement (the “Agreement”) relates to all Equipment, as defined in the Lease agreement between Lessee and DLL Finance LLC as further identified above (the “Lease Agreement”) and each Lease entered into pursuant to the Lease Agreement. All capitalized terms shall have the meanings ascribed to them in the Lease Agreement. Lessee agrees as follows with respect to each item of Equipment which is required to be returned:
1. RETURN OF EQUIPMENT. Notwithstanding anything to the contrary contained in the Lease Agreement and/or the Lease and in addition to the terms and conditions contained therein and herein, Lessee shall, at Lessee’s sole cost and expense, return all, but not less than all, of the Equipment described in each Lease to Lessor, or its designee immediately upon the expiration of the Term of the Lease pursuant to the terms and conditions contained in the Lease and with respect to each item of Equipment, as applicable, the following must be true:
(A) All safety equipment must be in place and meet applicable federal, state and other governmental standards. (B) All windscreens, covers and guards must be in place with no sheet metal, plastic, or cowling damage. (C) All parts, pieces, components and optional equipment must be present, installed and operational. All accessories that accompanied the units and/or were subject to the Lease, including without limitation battery chargers, GPS equipment, diagnostic and tuning equipment shall be returned in proper order. Upon request of Lessor, all maintenance records and manuals related to the Equipment shall be provided by Lessee to Lessor. (D) All motors shall operate smoothly without overheating and shall have good bearings and bushings. (E) All electronic controls shall operate per manufacturer’s specifications. Controls which bypass normal operations shall be repaired at Lessee’s expense.
(F) All electrical systems shall be able to provide electrical output as specified by the manufacturer. (G) All batteries shall be in good, safe operating condition with no dead cells or cracked cases. Batteries should hold a charge and provide adequate power to operate the equipment.
(H) All Equipment shall have serviceable brakes and tires (retaining proper air pressure, and without repair patches) and the wheels shall not be dented and/or bent.
(I) All oil and grease seals must contain lubrication in the manufacturers designed reservoir. (J) All Equipment must have a relatively clean appearance. (K) All Equipment shall be free from excessive wear necessitating major component repair or replacement caused by lack of recommended maintenance as detailed in customer operating/maintenance manual furnished with each item of equipment. (L) All Equipment shall be free from structural damages and/or bent frames. (M) All Equipment attachments, if any, must be in good condition.
2. RETURN PERFORMANCE. Each item of Equipment must be able to complete the following tests:
(A) Operate normally in forward and reverse directions through all the speed ranges or gears. (B) Steer normally both right and left in both forward and reverse. (C) Have all functions and controls work in normal manner. (D) Be able to stop with its service brakes in a safe distance in both forward and reverse. (E) Operates without leaking any fluids.
(F) Perform its designed functions in a satisfactory manner.
Notwithstanding the above, if the total cost of the repairs for all items of Equipment subject to a Lease is less than $100, Lessor will not bill Lessee.
3. REPAIRS / REQUIRED PURCHASE. If, in the Lessor’s sole judgment, any item of Equipment is damaged or does not meet the standards set forth above, or if Lessee fails to discharge its obligations set forth above with regard to any item of Equipment, Lessee shall pay to Lessor, immediately upon demand, at Lessor’s election, (a) the amount which Lessor determines will be necessary to return the Equipment to its required condition and/or to replace missing, damaged or non-performing items or equipment, or (b) Payments due and to become due under the terms of the Lease, Taxes, fees and charges due and to become due under the terms of the Lease, plus the residual value as indicated in Lessor’s books and records associated with such item of Equipment.
4. MISCELLANEOUS. Lessee agrees that a copy of this Agreement bearing a signature of Lessee which was transmitted by facsimile or printed from an electronic file shall be admissible in any legal proceeding as evidence of its contents and its execution by the parties in the same manner as an original document.
LESSEE
Lessee’s Name: CITY OF PALM SPRINGS, CA
LESSOR
Accepted by DLL Finance LLC in Johnston, Iowa
Signature Signature
Print Name Title Print Name Title
Lease Case ID: FA-589724 Lessor: DLL Finance LLC
Lessee: CITY OF PALM SPRINGS, CA
Date: 08/21/2026
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DLL Golf 4932 (7/25) Page 1 of 1
LEASE AGREEMENT
SUPPLEMENT – OPINION OF COUNSEL
Name of Lessee: CITY OF PALM SPRINGS, CA (the “Lessee”) Lease Agreement Number: FA-589724 (the
“Agreement”)
In order to induce DLL Finance LLC (“Lessor”) to enter into the Agreement pursuant to which the Equipment will be financed or leased to Lessee, the undersign represents the following:
As legal counsel of Lessee, I have examined (a) the Agreement and the corresponding documentation, which, among other things, provide for the financing or lease of the Equipment to Lessee; (b) an executed counterpart of the ordinance or resolution of Lessee which, among other things, authorizes Lessee to execute the Agreement; and (c) such other opinions, documents and matters of law as I have deemed necessary in connection with the following opinions.
Based on the foregoing, I am of the following opinions: (a) Lessee is a public body corporate and politic, duly organized and existing under the laws of the State of CA, and has substantial amount of one or more of the following sovereign powers (1) the power of eminent domain, and (2) police power; (b) Lessee has the requisite power and authority to purchase or lease the Equipment and to execute and deliver the Agreement and to perform its obligations under the Agreement; (c) the representative(s) of Lessee executing the Agreement has been duly authorized to do so; (d) the Agreement and the other documents either attached thereto or required therein have been duly authorized, approved and executed by and on behalf of Lessee and the Agreement is a valid and binding obligation of Lessee enforceable in accordance with its terms; (e) the authorization, approval and execution of the Agreement and all other documentation relating to the transactions contemplated thereby have been performed in accordance with all open meeting laws, public bidding laws and all applicable state and federal laws; (f) if applicable, a contract was properly awarded to the Supplier and there is no pending or threatened protest of such award or Lessee’s compliance with public bidding laws; and (g) there is no proceeding pending or threatened in any court or before any governmental authority or arbitration board or tribunal that, if adversely determined, would adversely affect the transactions contemplated by the Agreement or the security interest of Lessor or its assigns, as the case may be, in the Equipment.
All capitalized terms not otherwise defined herein shall have the same meanings as in the Agreement. Lessor, its successors and assigns, and any counsel rendering an opinion on the tax-exempt status of the interest components of the Payments are entitled to rely on this opinion.
Dated this day of , 2026.
Sincerely,
_________________________________
(Signature)
Print Name:
Admitted to Practice Law in the State
Address:
Telephone:
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DLL Golf 4935 (5/15) Page 1 of 1
LEASE AGREEMENT SUPPLEMENT –
PROPERTY TAX ACKNOWLEDGEMENT
Name of Lessee: CITY OF PALM SPRINGS, CA (the “Lessee”) Date of Lease Agreement: 08/21/2026 (the “Lease”)
In order to induce DLL Finance LLC (“Lessor”) to enter into the Lease pursuant to which the Equipment will be leased to Lessee, the undersigned represents the following:
o The Lessee acknowledges and understands that Lessor will file all personal property tax returns and Lessee shall reimburse Lessor for property taxes related to the Equipment. o Property taxes will be billed annually to Lessee and are due on invoice. Lessee acknowledges that property taxes may be billed to Lessee after the Term of the Lease. o If Lessee does not pay property taxes, Lessor has the right, but not the obligation, to pay them on Lessee’s behalf and add to the amount of such taxes to the Lease Payments.
All capitalized terms not otherwise defined herein shall have the same meanings as in the Agreement. Lessee agrees that Lessor’s emphasis of the provisions of the Agreement contained herein are for the convenience of the Lessee and shall not minimize or waive any remaining provisions of the Agreement, all of which remain in full force and effect. Lessor, its successors and assigns, and any counsel rendering an opinion on the tax-exempt status of the interest components of the Payments are entitled to rely on this acknowledgement. Lessee’s facsimile signature shall be considered binding as an original.
Dated this day of , 2026. LESSEE SIGNATURE
CITY OF PALM SPRINGS, CA
Lessee
Authorized Signature
Print Name Title Date
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E – Page 59 of 913
ATTACHMENT B
Public Integrity Disclosure
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CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 9, 2026 CONSENT CALENDAR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2121 OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.55 OF
THE PALM SPRINGS MUNICIPAL CODE REGARDING CANNABIS
CONSUMPTION LOUNGES
FROM: Scott C. Stiles, City Manager
BY: Special Program Compliance
SUMMARY:
This agenda item is for the second reading of an Ordinance amending Chapter 5.55 of the Palm Springs Municipal Code (“PSMC”) related to cannabis consumption lounges consistent with Assembly Bill 1775 (“AB 1775”).
RECOMMENDATION:
Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2121, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING CANNABIS CONSUMPTION LOUNGES.” BACKGROUND:
On July 8, 2026, Ordinance No. 2121 was introduced for first reading as noted below.
Waive the reading of text in its entirety, read by title only, and introduce for first reading an Ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING CANNABIS CONSUMPTION LOUNGES”.
AYES: Councilmembers Bernstein, deHarte, Garner, Mayor Pro Tem Ready, Mayor Soto.
NOES: None.
ABSENT: None.
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City Council Staff Report
September 9, 2026 -- Page 2
Second Reading of Ordinance No. 2121 Amending Chapter 5.55 – Cannabis Consumption Lounges STAFF ANALYSIS:
At the July 8 Council meeting, Council voted to introduce Ordinance No. 2121, subject to certain revisions which were made at the time of first reading. The revisions were:
PSMC Section 5.55.500, subdivision (C) is amended by adding and removing language from the following sentences: “Cannabis lounges may host outdoor special events by submitting written verification of the steps that it will take to comply with applicable rules governing the event, completing an application through the Department of Special Programs and shall comply with all applicable conditions of approval, public safety requirements, and nuisance mitigation standards established by the City to operate said events. Cannabis lounges located directly adjacent to a site that sells primarily alcoholic beverages, tobacco, or tobacco products on the site may not operate outdoor events with a land use permit.
PSMC Section 5.55.580, subdivision (A) is amended by removing language from the following sentence: “No person shall consume cannabis or cannabis products at a cannabis lounge in any area other than within the authorized portions of a licensed cannabis consumption lounge., or as authorized by a land use permit. PSMC Section 5.55.585, subdivision (B) is amended by removing language from the following sentence: “No cannabis consumption lounge operator may sell or provide for free any non-cannabis food or beverages inside the lounge unless such food and beverage does not contain cannabis or alcohol”.
These revisions have been incorporated into the second reading ordinance included as Attachment A.
ENVIRONMENTAL ASSESSMENT:
This action is exempt from the California Environmental Quality Act (CEQA) because it is the adoption of an ordinance, rule, or regulation that requires discretionary review, including environmental review, and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity (CEQA Guidelines section 15061(B)(1), California Business and Professions Code section 26055(h)) and because it does not have the potential for causing a significant effect on the environment (CEQA Guidelines section 15061(b)(3)).
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.
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City Council Staff Report
September 9, 2026 -- Page 3
Second Reading of Ordinance No. 2121 Amending Chapter 5.55 – Cannabis Consumption Lounges FISCAL IMPACT:
There is no immediate fiscal impact associated with the adoption of the proposed Ordinance. Over time, expanded operational opportunities for licensed cannabis lounges may result in increased sales tax and cannabis tax revenue.
REVIEWED BY:
Acting Director: Patrick Clifford
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Ordinance No. 2121
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55575.18195\45399150.1
Attachment A
Proposed Ordinance
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Ordinance No. 2121
55575.18195\45399150.1
ORDINANCE NO. 2121
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER
5.55 OF THE PALM SPRINGS MUNICIPAL CODE,
REGARDING CANNABIS CONSUMPTION LOUNGES
City Attorney’s Summary
This ordinance amends the City of Palm Springs’ existing cannabis lounge business ordinance in order to authorize certain activities within cannabis lounges, in accordance with Assembly Bill 1775 (2024).
WHEREAS, the City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and pursuant to the authority granted the City by Section 5 of Article XI, the City has the power to make and enforce within its limits all ordinances and regulations in respect to municipal affairs not in conflict with general laws and its own charter. Such police powers include without limitation the ability to adopt comprehensive zoning regulations and regulations upon the use of land and property within the City; and
WHEREAS, the consumer landscape of cannabis is constantly evolving and innovating in the wake of a legalized market; and
WHEREAS, many states and municipalities are now recognizing the onsite consumption of cannabis as a profitable and sensible addition to the regulated cannabis market; and
WHEREAS, the City has established clear rules for the regulation of onsite cannabis consumption, and this has stimulated the growth of various cannabis businesses; and
WHEREAS, existing law authorizes a cannabis business in Palm Springs to operate a dispensary and to obtain a permit in order for cannabis to be consumed on the premises of the dispensary; and
WHEREAS, as authorized by Assembly Bill 1775 (2024), this ordinance would allow the preparation and sale of non-cannabis food or beverage products by a licensed retailer in those areas where the consumption of cannabis is allowed, and to allow the sale of tickets for live musical or other performances on the premises of a licensed retailer in those areas where the consumption of cannabis is allowed, and establish standards for the City’s cannabis consumption lounges; and WHEREAS, the City Council has carefully reviewed and considered all of the
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55575.18195\45399150.1
evidence presented in connection with the proposed ordinance, including, but not limited to, the staff report, and all written and oral testimony presented.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES ORDAIN AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this reference as material findings in support of this Ordinance.
SECTION 2. Chapter 5.55 of the Palm Springs Municipal Code is hereby bifurcated into two (2) Articles, and the Chapter 5.55, as it exists immediately prior to the effective date of this Ordinance, is hereby designated as Chapter 5.55, Article I.
SECTION 3. Section 5.55.050 of Chapter 5.55, Article I, of the Palm Springs Municipal Code (Definitions) is hereby amended as follows:
A. The definition of “cannabis lounge” is hereby amended to read as follows:
“Cannabis lounge” or “cannabis consumption lounge” means a separate parcel or segregated tenant space, other than in a private residence or at an event held pursuant to section 5.55.100, with valid authorization, where cannabis or cannabis products are consumed.
B. A new definition for “cannabis consumption lounge operator” is hereby added to read as follows:
“Cannabis consumption lounge operator” means a cannabis dispensary permittee who is authorized to operate a cannabis consumption lounge in accordance with this chapter.
C. A new definition for “smoking” is hereby added as follows:
“Smoking” or “smoke” (when used as a verb) means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated tobacco or plant product intended for inhalation, whether natural or synthetic, in any manner or in any form. “Smoking” includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking.
D. A new definition for “vaping” is hereby added to read as follows:
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“Vaping” means to inhale vapor from a device that heats up and vaporizes a liquid or solid.
SECTION 4. A new Article II of Chapter 5.55 of the Palm Springs Municipal Code (Cannabis Consumption Lounges) is hereby added to read as follows:
“Chapter 5.55, Article II (Cannabis Lounges)
5.55.480. Provisions not Exclusive.
5.55.490 Prohibition on Consumption of Cannabis.
5.55.500 Authorization Required to Operate Cannabis
Consumption Lounge
5.55.510 Site Management Requirements.
5.55.515 Cannabis Consumption Lounge Premises Restrictions.
5.55.520 Ventilation Requirements.
5.55.530 Authorization To Operate Must Be Displayed.
5.55.535 Worker Protections.
5.55.540 Required Health Warnings.
5.55.545 Waste Containers.
5.55.550 Operating Hours.
5.55.560 Age Restriction.
5.55.570 Personnel Requirements.
5.55.580 Consumption Of Cannabis and Cannabis Products On Site.
5.55.585 Consumption of Prepackaged Food and Beverages.
5.55.590 Customer Conduct.
5.55.480 Provisions not Exclusive.
Except as more specifically provided in this Article II, Article I of Chapter 5.55 shall apply to Cannabis Lounges.
5.55.490 Prohibition on Consumption of Cannabis.
A. No cannabis business, its manager, its employee, or person with an ownership interest, shall allow any person to smoke, ingest, or otherwise consume cannabis products on its site, or within 20 feet of the site, except as described in this chapter.
B. No cannabis business, its manager, its employee, or person with an ownership interest, shall permit, aid, abet, or conceal the smoking, ingesting, or other consumption of cannabis or cannabis products on its site in violation of this code.
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C. Each cannabis dispensary that is not authorized to operate a cannabis lounge must have a sign prominently displayed stating, “Smoking, ingesting, or consuming cannabis or cannabis products on this site or in a public place is prohibited.”
5.55.500 Authorization Required to Operate Cannabis Consumption Lounge
A. No person shall operate a cannabis consumption lounge without first having received from the City a valid cannabis dispensary permit with a condition that expressly authorizes the operation of a lounge in accordance with this article.
B. A cannabis dispensary permit may be authorized to allow the operation of a cannabis consumption lounge with one or more of the following conditions:
(a) Preparation and sale of non-cannabis infused food.
(b) Delivery and service of non-cannabis infused food.
(c) Host non-ticketed events and host up to twenty-four (24) ticketed events per year, subject to the provisions of this chapter.
C. Cannabis lounges may host outdoor special events by submitting written verification of the steps that it will take to comply with applicable rules governing the event, completing an application through the Department of Special Programs and shall comply with all applicable conditions of approval, public safety requirements, and nuisance mitigation standards established by the City to operate said events. Cannabis lounges located directly adjacent to a site that sells primarily alcoholic beverages, tobacco, or tobacco products on the site may not operate outdoor events with a land use permit.
D. Cannabis Lounges may apply to operate an onsite kitchen facility.
Operators must comply with both State and Riverside County regulations. Additionally, all proposed kitchen facilities must be inspected by the City to determine that the facility is safe to occupy and suitable for the intended use.
5.55.510 Site Management Requirements.
Notwithstanding any other provision of the code, a cannabis lounge consumption operator shall:
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A. Prevent and eliminate nuisances on its site, including the unlawful consumption of cannabis and cannabis products;
B. Maintain the exterior of the site, including any parking lots under the control of the permittee, free of litter, debris, and trash; C. Properly store and dispose of all waste generated on the site, including chemical and organic waste, in accordance with all applicable laws and regulations; and
D. Make cannabis and cannabis products unusable and
unrecognizable before discarding them.
E. Maintain sanitary surfaces and devices. Sanitation and cleaning frequency. Each cannabis consumption lounges shall ensure that:
F.
1. The surfaces, utensils, and reusable devices that have direct contact with cannabis products are adequately washed, rinsed and sanitized.
2. After being cleaned, surfaces of equipment, utensils, and reusable devices that have direct contact with cannabis products are sanitized in:
a) Hot water manual operations by immersion for at least 30 seconds with a temperature of 170°F (77°C) or
above;
b) Hot water mechanical operations by being cycled
through equipment that is set up and achieving a
utensil surface temperature of 160°F (71°C) as
measured by an irreversible registering temperature
indicator; or
c) Chemical manual or mechanical operations, including, without limitation, the application of sanitizing
chemicals by immersion, manual swabbing, brushing
or pressure spraying methods using a solution as
specified on the manufacturer’s label use instructions
that are approved by the Environmental Protection
Agency, by providing an exposure time of at least 30
seconds unless the manufacturer’s label use
instructions provide otherwise.
3. If the surfaces of utensils or equipment come into contact with
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potentially hazardous cannabis products and ingredients, the surfaces and utensils are cleaned throughout the day at least once every 4 hours.
4. The surfaces of utensils and equipment that have direct contact with cannabis products and ingredients that are not potentially hazardous are cleaned:
a) At any time when contamination may have occurred;
and
b) In equipment, including, without limitation, ice bins and beverage dispensing nozzles, and enclosed
components of equipment, such as ice makers,
cooking oil storage tanks and distribution lines,
beverage and syrup dispensing lines or tubes, coffee
bean grinders and water vending equipment:
(1) At a frequency specified by the manufacturer; or
(2) If the manufacturer does not specify a frequency,
at a frequency necessary to prevent the
accumulation of soil or mold.
State and local public health regulatory agencies may require permits and/or conduct inspections related to the services offered at the cannabis consumption lounge.
G. Any preparation or sale of noncannabis food or beverage products shall be in compliance with all applicable provisions of the California Retail Food Code (Chapter 1 (commencing with Section 113700) of Part 7 of Division 104 of the Health and Safety Code).
5.55.515 Cannabis Consumption Lounge Premises Restrictions.
A. Enclosed. A cannabis consumption lounge must be indoors and fully enclosed.
B. Not visible to the public. Cannabis consumption shall not be visible from any public place, non-age-restricted area, any unsecured area surrounding the buildings on the site, or the site’s main entrance and lobby.
C. Partitioned. A cannabis consumption lounge must be separated from all other areas of the cannabis dispensary by solid walls and doors. The wall may include glass to provide visibility between the dispensary and the lounge.
D. Soundproof. A cannabis consumption lounge must be adequately soundproofed so that the interior noise does not violate chapter
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11.74 (Noise Ordinance).
E. Licensed Security Personnel. A cannabis consumption lounge shall have adequate state-licensed security personnel to patrol the site and the area within 100 feet of the site to preserve the safety of persons and to protect the site from theft. All security personnel shall possess a valid California Department of Consumer Affairs security guard license while on duty on the site.
F. Loitering in or around the cannabis consumption lounge is prohibited, and the cannabis consumption operator shall ensure the absence of loitering.
G. Smoking or vaporizing of any cannabis product by an employee or customer is not allowed in the food preparation, food storage, or warewashing area of a food facility located on the premises. For purposes of this subparagraph, the following definitions apply:
(I) “Food facility” has the same meaning as that term is defined in Section 113789 of the Health and Safety Code.
(II) “Warewashing” has the same meaning as that term is defined in Section 113940 of the Health and Safety Code.
5.55.520 Ventilation Requirements.
A. The cannabis consumption lounge shall be designed to have negative pressure to limit, to the extent possible, leakage of smoke and particulate matter into the non-smoking areas of the site; B. The lounge shall have an HVAC system that does not recirculate air and that has a high rate of air exchange; and
C. The lounge shall have an odor-absorbing ventilation and exhaust system that prevents the odor from inside of the lounge from being detected outside of the site or within any other area located within the same building as the lounge.
5.55.530 Authorization To Operate Must Be Displayed.
A cannabis consumption lounge operator shall display a valid cannabis permit with a condition that authorizes the operation of a cannabis consumption lounge in a conspicuous place inside of the lounge so that all persons inside of the lounge may readily see it.
Additionally, at the entrance of the lounge, a sign must be posted that states, “Cannabis consumption, including smoking and vaping,
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is allowed inside of this lounge. No person under 21 years of age shall be in the lounge.” The sign must be posted in a conspicuous place so that all persons entering the cannabis lounge may readily see it. The sign must be clearly legible and not less than 8 inches by 10 inches in size.
5.55.535 Worker Protections.
A. Employees shall be permitted at their discretion and without penalty or sanction to wear a mask for respiration, including N95 and NIOSH N95 rated masks in any area where cannabis is smoked.
Employers are required to pay for such masks.
B. When hired, employees who will be working where cannabis is smoked shall be provided in writing the Department of Public Health or its successor’s guidance regarding secondhand cannabis smoke.
C. A cannabis consumption lounge that offers on-site consumption of cannabis products shall include secondhand smoke in their analysis of potential work hazards for purposes of their injury and illness prevention programs required by Section 3203 of Title 8 of the California Code of Regulations.
5.55.540 Required Health Warnings.
A cannabis consumption lounge operator shall display signs designated by the city that address the health impacts of the consumption of cannabis. The signs must be displayed at the entrance to the lounge in a conspicuous place so that all persons entering the cannabis consumption lounge may readily see it.
5.55.545 Waste Containers.
Cannabis consumption lounge operators shall include properly maintained solid waste, organic waste, and recycling containers in sufficient numbers and locations to service the needs of the lounge.
5.55.550 Operating Hours.
All cannabis consumption lounges may operate between the hours of 6:00 am and 10:00 pm.
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5.55.560 Age Restriction.
A. Access to any area where cannabis consumption is allowed shall be restricted to persons 21 years of age or older and each entrance to any such area shall be prominently posted with a warning that cannabis consumption, including smoking of cannabis, is permitted inside.
B. No cannabis consumption lounge operator shall allow any violation of this section.
5.55.570 Personnel Requirements.
A. Operator age limit. No person under 21 years of age shall operate a cannabis consumption lounge in any capacity, including as a manager, employee, contractor, or volunteer.
B. Education and training. The cannabis consumption lounge operator shall educate their managers, employees, and volunteers about the various types of cannabis and cannabis products allowed in the consumption lounge, including the potency, absorption time, and effects; and shall train their managers, employees, and volunteers to likewise educate customers on their purchases. The cannabis lounge operator shall also train their managers, employees, and volunteers to recognize signs of impairment in their customers.
C. Community relations employee. The cannabis lounge operator shall designate an employee as their onsite community-relations contact; provide their name and phone number by certified mail to all owners and tenants of neighboring properties within 100 feet of the site; and advise them to notify the community-relations contact if there are operational problems with the lounge that impact the neighborhood. The cannabis consumption lounge operator shall also provide the name and phone number by e-mail to all owners and tenants of neighboring properties within 100 feet of the site; and advise them to notify the community relations contact if there are operational problems with the lounge that impact the neighborhood. The cannabis consumption lounge operator shall also provide the name and phone number of the onsite community relations contact to the Department of Special Program
Compliance.
D. The cannabis consumption lounge operator shall ensure that during the consumption lounge hours of operation:
a) Adequate onsite staffing;
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b) Continuous security monitoring;
c) Manager availability on the licensed premises; and
d) Compliance with all security and operational requirements outlined in Sections 5.55.200; 5.55.205; and 5.55.210.
5.55.580 Consumption Of Cannabis and Cannabis Products On Site.
A. Consumption in lounge only. No person shall consume cannabis or cannabis products at a cannabis lounge in any area other than within the authorized portions of a licensed cannabis consumption lounge, or as authorized by a land use permit.
B. No cannabis consumption lounge operator shall allow any person to consume in the lounge any cannabis or cannabis product that was not purchased from the associated dispensary.
5.55.585 Consumption of Prepackaged Food and Beverages.
A. No cannabis consumption lounge operator shall sell or provide for free any cannabis or cannabis products inside the lounge area.
B. No cannabis consumption lounge operator may sell or provide for free any non-cannabis food or beverages inside the lounge unless such food and beverage does not contain cannabis or alcohol.
C. No cannabis consumption lounge operator shall allow any cannabis or cannabis product to be stored, displayed, served or otherwise handled in a manner that results in contamination of, or co-mingling with, any food or beverage product. Food and beverage products shall be maintained, prepared, and served in compliance with all applicable State and local health and safety laws and regulations.
5.55.590 Customer Conduct.
A. Closing announcement. One hour before the closing time of the lounge and at the closing time, the cannabis consumption lounge operator or their manager shall announce the closing time of the lounge and request that customers respect the residents of the adjacent neighbors by being quiet when leaving.
B. Retail limit. No cannabis consumption lounge operator or its manager, employee, or volunteer shall provide cannabis or cannabis products to obviously impaired customers.
F – Page 77 of 913
Ordinance No. 2121
55575.18195\45399150.1
C. Car services. A cannabis consumption lounge operator shall provide written information on ridesharing and ride-hailing car services for their customers.
D. Alcohol/Tobacco. The sale or consumption of alcohol or tobacco is prohibited on the cannabis consumption lounge premises.” SECTION 4. The City Council finds that the adoption of this Ordinance is exempt from the California Environmental Quality Act (CEQA) because it is the adoption of an ordinance, rule, or regulation that requires discretionary review, including environmental review, and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity (California Business and Professions Code section 26055(h)) and because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines section 15061(b)(3)).
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS _____ DAY OF ______________, 2026.
NAOMI SOTO, MAYOR
ATTEST:
BRENDA PREE, MMC, CERA
CITY CLERK
F – Page 78 of 913
Ordinance No. 2121
55575.18195\45399150.1
F – Page 79 of 913
Ordinance No. 2121
55575.18195\45399150.1
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on _________ and adopted at a regular meeting of the City Council held on __________ by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.
BRENDA PREE, MMC, CERA
CITY CLERK
F – Page 80 of 913
CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 9, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH ALTA PLANNING + DESIGN, INC., IN THE AMOUNT OF $953,702 FOR
PROFESSIONAL TRANSPORTATION PLANNING AND ENGINEERING
SERVICES TO PREPARE THE COMPREHENSIVE SAFETY ACTION
PLAN, CITY PROJECT NO. 26-06
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
Approval of this Professional Services Agreement will allow the City to proceed with the preparation of the Comprehensive Safety Action Plan, City Project No. 26-06 (“Project”).
RECOMMENDATION:
1) Approve a Professional Services Agreement with Alta Planning + Design, Inc. in the amount of $953,702 for professional transportation planning and engineering services to prepare the Comprehensive Safety Action Plan; and 2) Authorize the City Manager or his designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosure Form from Alta Planning and Design, Inc. (Alta) is included as Attachment A.
BACKGROUND:
The Safe Streets and Roads for All (SS4A) Program was established under Section 24112 of the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law, and is administered by the U.S. Department of Transportation through the Federal Highway Administration (FHWA). The SS4A Program provides funding to support regional, local, and Tribal initiatives through grants to improve roadway safety and reduce traffic related fatalities and serious injuries.
G – Page 81 of 913
City Council Staff Report
September 9, 2026 -- Page 2
Approve Professional Services Agreement for Comprehensive Safety Action Plan – CP 26-06 The SS4A Program includes both Planning and Demonstration Grants, which fund the development, completion, or supplementation of Comprehensive Safety Action Plans, and Implementation Grants, which fund projects and strategies identified in an adopted Action Plan.
A Comprehensive Safety Action Plan (CSAP) is a strategic planning document intended to identify roadway safety issues, prioritize projects and strategies, and establish a framework for reducing fatalities and serious injuries for all roadway users, including motorists, bicyclists, and pedestrians.
The City of Palm Springs currently maintains several planning documents related to transportation and safety, including its 2022 Local Road Safety Plan, 2021 Pedestrian Master Plan, and Traffic Calming Manual. While these documents provide guidance in specific areas, they have not been consolidated into a unified comprehensive safety document that meets current federal SS4A Action Plan requirements.
On May 15, 2024, the City submitted an application to the Federal Highway Administration for SS4A Planning and Demonstration Grant funding to prepare a CSAP.
The City was subsequently awarded $776,000 in federal grant funding under the FY 2024 SS4A Program. The grant requires a local funding match of $194,000, representing twenty percent (20%) of total eligible project costs. Total project funding is $970,000.
On May 12, 2026, the City Council approved an agreement with FHWA to accept the grant funding.
STAFF ANALYSIS:
On June 24, 2026, the Engineering Services Department issued a Request for Proposals (RFP 26-06) for professional consulting services for the preparation of a Comprehensive Safety Action Plan. RFP 26-06 was published on the City’s on-line bid management system, PlanetBids. By the July 20, 2026 deadline, the City received six proposals from the following firms:
• Alta Planning & Design, Inc.
• CR Associates
• Foresite Group, LLC
• Linscott, Law & Greenspan, Engineers
• Minagar & Associates, Inc.
• TJKM
The RFP was written to ensure that the selected firm demonstrated successful experience and capacity to provide the professional services needed for the Project.
G – Page 82 of 913
City Council Staff Report
September 9, 2026 -- Page 3
Approve Professional Services Agreement for Comprehensive Safety Action Plan – CP 26-06 An evaluation committee consisting of staff from the Engineering Services Department and Sustainability Department reviewed and scored the proposals based on the evaluation criteria established in RFP 26-06. The criteria included firm experience and references, qualifications and experience of the proposed project team, demonstrated understanding of the project and requested scope of work, ability to meet the City’s contractual requirements, and local preference in accordance with Chapter 7 of the Palm Springs Municipal Code.
Based on the proposal evaluations, the two highest-ranked firms were invited to participate in interviews. Following the interviews, Alta was determined to be the highestranked and most qualified consultant for the Project.
City staff subsequently negotiated the final scope of services and fee with Alta. Staff determined that the proposed fee is fair and reasonable for the requested services and is within the available Project budget.
Staff recommends the City Council approve a Professional Services Agreement with Alta in an amount not to exceed $953,702. A copy of the agreement that incorporates the City’s RFP 26-06 and Alta’s proposal is included as Attachment B.
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) 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:
The total Project budget is $970,000, consisting of $776,000 in federal SS4A grant funds (80%) and a required local match of $194,000 (20%). The City’s local match will be funded with Measure “J” funds budgeted for the Pedestrian Master Plan.
The proposed Professional Services Agreement with Alta is for an amount not to exceed $953,702 and is within the available Project budget.
G – Page 83 of 913
City Council Staff Report
September 9, 2026 -- Page 4
Approve Professional Services Agreement for Comprehensive Safety Action Plan – CP 26-06 REVIEWED BY:
City Engineer: Joel Montalvo
Director of Finance & Treasurer: Kristopher J. Mooney
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Public Integrity Disclosure Form
B. Professional Services Agreement – Alta
https://publicportal.palmspringsca.gov/WebLink/DocView.aspx?id=1466487&dbid =0&repo=CityHall-Primary
G – Page 84 of 913
Attachment A
Public Integrity Disclosures
G – Page 85 of 913
ALTA PLANNING + DESIGN, INC. City of Palm Springs SS4A Comprehensive Safety Action Plan vi
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
Alta Planning + Design, Inc,
California
980 W 6th Street, Ontario, CA 91762
101 SW Main St., Ste. 2000, Portland, OR 97204
X
Brett Hondorp
Steven Frieson
Katie Mangle
X
X
X
G – Page 86 of 913
ALTA PLANNING + DESIGN, INC. City of Palm Springs SS4A Comprehensive Safety Action Plan vii
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
Matt Hayes
Michael Renshaw
Julia Stutz
X
X
X
Public Integrity Disclosure Form Additional Page
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
Charul Doshi
X
Trilon (Parent Company) Chair
Trilon (Parent Company) Secretary
Trilon (Parent Company) Treasurer
G – Page 87 of 913
ALTA PLANNING + DESIGN, INC. City of Palm Springs SS4A Comprehensive Safety Action Plan viii
7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity
EXAMPLE
JANE DOE
[name of owner/investor]
50%, ABC COMPANY, Inc.
[percentage of beneficial interest in entity and
name of entity]
A.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signature of Disclosing Party, Printed Name, Title Date Trilon Transportation C-Corp Holdings, Inc 100%, Alta Planning + Design, Inc.
Steven Frieson, PE
Vice President, as duly authorized 7/20/2026
G – Page 88 of 913
Attachment B
Professional Services Agreement
https://publicportal.palmspringsca.gov/WebLink/
DocView.aspx?id=1466487&dbid=0&repo=CityHallPrimary
G – Page 89 of 913
CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 9, 2026 CONSENT CALENDAR
SUBJECT: APPROVE CONTRACT AGREEMENTS NO. 26B181 AND 26B182 WITH POLAR ELECTRICAL COMPANY AND NO. 26B183 AND 26B184 WITH M. BREY, INC., DBA MBE CONSTRUCTION, FOR ELECTRICAL REPAIR
AND INSTALLATION SERVICES
FROM: Scott C. Stiles, City Manager
BY: David McAbee, Director of Public Works
SUMMARY:
This action will approve Construction Agreement No. 26B181 in an amount not to exceed $900,000, and Contract Services Agreement No. 26B182 in an amount not to exceed $75,000 with Polar Electrical Company; and Construction Agreement No. 26B183 in an amount not to exceed $575,000, and Contract Services Agreement No. 26B184 in an amount not to exceed $75,000 with M. Brey, Inc., dba MBE Construction, for electrical repairs and installation services for the Public Works department.
RECOMMENDATION:
1) Approve Construction Agreement 26B181 (Attachment A) with Polar Electrical Company to provide electrical installation services for the Public Works department in an amount not to exceed $900,000 for an initial one-year term beginning September 10, 2026, through September 9, 2027, with four one-year extension options at the City’s sole discretion; and
2) Approve Contract Services Agreement 26B182 (Attachment B) with Polar Electrical Company to provide electrical repair services for the Public Works department in an amount not to exceed $75,000 for an initial three-year term beginning September 10, 2026, through September 09, 2029, with two one-year extension options at the City’s sole discretion; and
3) Approve Construction Agreement 26B183 (Attachment C) with M. Brey, Inc., dba MBE Construction to provide electrical installation services for the Public Works department in an amount not to exceed $575,000 for an initial one-year term beginning September 10, 2026, through September 9, 2027, with four one-year extension options at the City’s sole discretion; and
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City Council Staff Report
September 9, 2026 -- Page 2
Electrical Repair and Installation Agreements
4) Approve Contract Services Agreement 26B184 (Attachment D) with M. Brey, Inc., dba MBE Construction to provide electrical repair services for the Public Works department in an amount not to exceed $75,000 for an initial three-year term beginning September 10, 2026, through September 09, 2029, with two one-year extension options at the City’s sole discretion; and
5) Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure Forms (Attachments E and F) submitted on August 5, 2026 and August 6, 2026, respectively, Polar Electrical Company and M. Brey, Inc., dba MBE Construction, are both registered in the state of California.
BACKGROUND:
The City of Palm Springs requires qualified contractors to provide electrical repair and installation services at various City buildings and facilities managed by the Public Works Department. Due to the volume and extent of electrical services required to maintain and repair existing infrastructure, staff determined that the available funding under the current contracts will be fully expended prior to their scheduled expiration. As a result, staff elected to resolicit bids to ensure continuity of services and avoid delays in completing necessary electrical work.
Building on the success of the electrical service contracts awarded in 2022 and 2024, staff are recommending approval of four new contract agreements. The proposed agreements will provide a primary and secondary contractor for electrical installation services and a primary and secondary contractor for electrical repair and maintenance services. These contracts will support ongoing facility maintenance needs as well as planned building renovation and improvement projects throughout the City.
STAFF ANALYSIS:
The contracts with Polar Electrical Company and M. Brey, Inc., dba MBE Construction are on-call, as-needed type contracts. The bids were used to determine the lowest, responsive, responsible bidders and to set the unit rates for the contracts; however, the actual amount of the contracts is based on the budgeted amount set by the Department and will therefore not match the bid amounts.
An Invitation for Bids (IFB 26-16) was initiated by the City’s Procurement and Contracting Department on July 13, 2026, based on the Department of Public Works specifications.
Bids were solicited directly via the City’s procurement vendor portal, PlanetBids. In addition, the IFB was advertised in The Desert Sun. Seven bids were received by the August 6, 2026, deadline as follows:
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City Council Staff Report
September 9, 2026 -- Page 3
Electrical Repair and Installation Agreements
Vendor Bid
Polar Electrical Company – Fallbrook, CA $1,550,040.60
DDP Electric, Inc. – Holtville, CA (Non-responsive) $1,551,705.00 Reliable Electric – Redlands, CA (Non-responsive) $1,637,330.00 M. Brey, Inc. dba MBE Construction – Beaumont, CA $1,658,133.07 GA Technical Services – Glendora, CA $1,713,159.60
AMTEK Construction – Orange, CA $2,251,975.00
Fox Company Electric, LLC – Desert Hot Springs, CA $2,353,990.84 DDP Electric, Inc., was deemed non-responsive for not completing the required forms, and Reliable Electric was deemed non-responsive for lack of acknowledgement of the addenda issued during the solicitation process.
The Department’s intent for this solicitation was to award four contracts to the two lowest responsive and responsible bidders. Unit pricing will remain fixed for the first year and will be subject to CPI adjustments in subsequent years.
Staff recommend approval of the following agreements, effective September 10, 2026:
Polar Electrical Company
• Construction Agreement No. 26B181 for Electrical Installation Services, in an amount not to exceed $900,000 for an initial one-year term through September 9, 2027, with four one-year extension options at the City’s sole discretion; and • Contract Services Agreement No. 26B182 for Electrical Repair Services, in an amount not to exceed $75,000 for an initial three-year term through September 09, 2029, with two one-year extension options at the City’s sole discretion.
M. Brey, Inc. dba MBE Construction
• Construction Agreement No. 26B183 for Electrical Installation Services, in an amount not to exceed $575,000 for an initial one-year term through September 9, 2027, with four one-year extension options at the City’s sole discretion; and • Contract Services Agreement No. 26B184 for Electrical Repair Services, in an amount not to exceed $75,000 for an initial three-year term through September 9, 2029, with two one-year extension options at the City’s sole discretion.
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) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
H – Page 92 of 913
City Council Staff Report
September 9, 2026 -- Page 4
Electrical Repair and Installation Agreements
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
The total not to exceed amount of all four contracts is $1,625,000. Funding is available in the 2026-27 budget and will be budgeted in subsequent years.
Public Works: 5206570-40105 & 50119
Measure J: 2603080-80000
Measure J Deferred Maintenance: 2603205-50119
REVIEWED BY:
Assistant Director of Public Works: Daniel Martinez
Director of Public Works: David McAbee
Procurement and Contracting Manager: Tabitha Richards
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Agreement No. 26B181 - Polar Electrical Company
B. Agreement No. 26B182 - Polar Electrical Company
C. Agreement No. 26B183 - M. Brey, Inc., dba MBE Construction D. Agreement No. 26B184 - M. Brey, Inc., dba MBE Construction E. Public Integrity Disclosure - Polar Electrical Company F. Public Integrity Disclosure - M. Brey, Inc., dba MBE Construction
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ATTACHMENT “A”
Construction Agreement 26B181 Polar Electric
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55575.18100\42920836.2
Revised 10.5.21 1 SHORT FORM CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT 26B181
ELECTRICAL INSTALLATION SERVICES
1. PARTIES AND DATE.
This Contract is made and entered into this 10th day of September 2026 (“Effective Date”) by and between the City of Palm Springs, a California charter city and municipal corporation (“City”) and Polar Electrical Company, a sole proprietorship, (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Contract.
2. RECITALS.
2.1 City. City is a public agency organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.
2.2 Contractor. Contractor desires to perform and assume responsibility for the provision of certain construction services required by the City on the terms and conditions set forth in this Contract. Contractor represents that it is duly licensed and experienced in providing Electrical Installation related construction services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it is familiar with the plans of City. The following license classifications are required for this Project: C10
2.3 Project. City desires to engage Contractor to render such services for the Electrical Installation Service (“Project”) as set forth in this Contract.
2.4 Project Documents & Certifications. Contractor has obtained, and delivers concurrently herewith, Performance Bond, Payment Bond and Insurance Documents as required by the Contract.
3. TERMS
3.1 Compensation and Payment.
3.1.1 Amount of Compensation. As consideration for performance of the Work required herein, City agrees to pay Contractor the Total Contract Price of Nine Hundred Thousand Dollars and Zero Cents ($900,000.00) (“Total Contract Price”) provided that such amount shall be subject to adjustment pursuant to the applicable terms of this Contract or written change orders approved and signed in advance by the City.
3.1.2 Payment of Compensation. If the Work is scheduled for completion in thirty (30) or less calendar days, City will arrange for payment of the Total Contract Price upon completion and approval by City of the Work. If the Work is scheduled for completion in more than thirty (30) calendar days, City will pay Contractor on a monthly basis as provided for herein. On or before the fifth (5th) day of each month, Contractor shall submit to the City an itemized application for payment in the format supplied by the City indicating the amount of Work completed since commencement of the Work or since the last progress payment. These applications shall be supported by evidence which is required by this Contract and such other
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Revised 8.9.23 Page 2 of 45
documentation as the City may require. The Contractor shall certify that the Work for which payment is requested has been done and that the materials listed are stored where indicated.
Contractor may be required to furnish a detailed schedule of values upon request of the City and in such detail and form as the City shall request, showing the quantities, unit prices, overhead, profit, and all other expenses involved in order to provide a basis for determining the amount of progress payments.
3.1.3 Prompt Payment. City shall review and pay all progress payment requests in accordance with the provisions set forth in Section 20104.50 of the California Public Contract Code. However, no progress payments will be made for Work not completed in accordance with this Contract. Contractor shall comply with all applicable laws, rules and regulations relating to the proper payment of its employees, subcontractors, suppliers or others.
3.1.4 Contract Retentions. If this Contract is greater than Five Thousand dollars ($5,000), from each approved progress estimate, five percent (5%) will be deducted and retained by the City, and the remainder will be paid to Contractor. All Contract retention shall be released and paid to Contractor and subcontractors pursuant to California Public Contract Code Section 7107.
3.1.5 Other Retentions. In addition to Contract retentions, the City may deduct from each progress payment an amount necessary to protect City from loss because of:
(1) liquidated damages which have accrued as of the date of the application for payment; (2) any sums expended by the City in performing any of Contractor’s obligations under the Contract which Contractor has failed to perform or has performed inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be completed for the unpaid balance of the Total Contract Price or within the scheduled completion date; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from the Contract; (8) failure of Contractor to maintain or submit on a timely basis proper and sufficient documentation as required by the Contract or by City during the prosecution of the Work; (9) erroneous or false estimates by Contractor of the value of the Work performed; (10) any sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Contract; and (11) any other sums which the City is entitled to recover from Contractor under the terms of the Contract or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City’s right to such sums.
3.1.6 Substitutions for Contract Retentions. Pursuant to California Public Contract Code section 22300, Contractor may substitute securities for any money withheld by the City to ensure the performance under the Contract. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the City, with the State or a federally chartered bank as the escrow agent, who shall return such securities to Contractor upon satisfactory completion of the Contract. Deposit of securities with an escrow agent shall be subject to a written agreement between the escrow agent and the City, which provides that no portion of the securities shall be paid to Contractor until the City has certified to the escrow agent, in writing, that the Contract has been satisfactorily completed. The City shall certify that the Contract has been satisfactorily completed within sixty (60) days of work "completion" as defined in Section 7107(c) of the California Public Contract Code. Securities eligible for investment under this section shall be limited to those listed in Section 16430 of the Government Code, bank or savings & loan certificates of deposit, interest-bearing demand
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Revised 8.9.23 Page 3 of 45
deposit accounts, stand-by letters of credit, or any other security mutually agreed to by Contractor.
3.1.7 Payment to Subcontractors. Contractor shall pay all subcontractors for and on account of work performed by such subcontractors in accordance with the terms of their respective subcontracts and as provided for in Section 7108.5 of the California Business and Professions Code. Such payments to subcontractors shall be based on the measurements and estimates made and progress payments provided to Contractor pursuant to this Contract.
3.1.8 Title to Work. As security for partial, progress, or other payments, title to Work for which such payments are made shall pass to the City at the time of payment. To the extent that title has not previously been vested in the City by reason of payments, full title shall pass to the City at delivery of the Work at the destination and time specified in this Contract. Such transferred title shall in each case be good, free and clear from any and all security interests, liens, or other encumbrances. Contractor promises and agrees that it will not pledge, hypothecate, or otherwise encumber the items in any manner that would result in any lien, security interest, charge, or claim upon or against said items. Such transfer of title shall not imply acceptance by the City, nor relieve Contractor from the responsibility to strictly comply with the Contract, and shall not relieve Contractor of responsibility for any loss of or damage to items.
3.1.9 Labor and Material Releases. Contractor shall furnish City with labor and material releases from all subcontractors performing work on, or furnishing materials for, the Work governed by this Contract prior to final payment by City.
3.2 Period of Performance and Liquidated Damages.
3.2.1 Contractor shall perform and complete all Work under this Contract within the one (1) year term, beginning the Effective Date (“Contract Time”). Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed by the City. Such schedules or milestones may be included as part of Exhibits “A” or “B” attached hereto or may be provided separately in writing to Contractor. Contractor agrees that if such Work is not completed within the aforementioned Contract Time and/or pursuant to any such completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages the sum of Five Hundred Dollars ($500.00) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule or Project milestones established pursuant to the Contract.
3.2.2 If Contractor is delayed in the performance or progress of the Work by a Force Majeure Event (as defined herein), then the Contractor shall be entitled to a time extension, as provided herein, when the Work stopped is on the critical path and shall not be charged liquidated damages. Such a non-compensable adjustment shall be Contractor’s sole and exclusive remedy for such delays and the Contractor will not receive an adjustment to the Total Contract Price or any other compensation. Contractor must submit a timely request in accordance with the requirements of the Contract.
3.2.3 A Force Majeure Event shall mean an event that materially affects a party’s performance and is one or more of the following: (1) Acts of God or other natural
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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); (4) pandemics, epidemics or quarantine restrictions; and (5) strikes and other organized labor action occurring at the project site and the effects thereof on the work, only to the extent such strikes and other organized labor action are beyond the control of Contractor and its subcontractors, of every tier, and to the extent the effects thereof cannot be avoided by use of replacement workers. 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.
3.3 Incorporation of Documents. This Contract includes and hereby incorporates in full by reference the following documents, including all exhibits, drawings, specifications and documents therein, and attachments and addenda thereto:
• Services/Schedule (Exhibit “A”)
• Schedule of Compensation (Exhibit “B”)
• Special Conditions (Exhibit “C”)
• Contractor’s Certificate Regarding Workers’ Compensation (Exhibit “D”) • Public Works Contractor Registration Certification (Exhibit “E”) • Payment and Performance Bonds (Exhibit “F”)
• Executive Order N-6-22 Certification (Exhibit “G”)
• Fleet Compliance Certification (Exhibit “H”)
• Addenda
• Notice Inviting Bids
• Contractor’s Bid
To the extent there is a conflict between any portions of this Contract, the order of precedence shall be as follows: change orders, special conditions, technical specifications, plans/construction drawings, general contract terms, scope of work, standard plans, advertisements for bid/proposals, bids/proposals or other documents submitted by Contractor.
3.4 Contractor’s Basic Obligation; Scope of Work.
3.4.1 Scope of Work. Contractor promises and agrees, at its own cost and expense, to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately complete the Project, including all structures and facilities necessary for the Project or described in the Contract (hereinafter sometimes referred to as the “Work”), for a Total Contract Price as specified pursuant to this Contract. All Work shall be subject to, and performed in accordance with the above referenced documents, as well as the exhibits attached hereto and incorporated herein by reference. The plans and specifications for the Work are further described in Exhibit “B” attached hereto and incorporated herein by this reference. Special Conditions, if any, relating to the Work are described in Exhibit “C” attached hereto and incorporated herein by this reference.
3.4.2 Change in Scope of Work. Any change in the scope of the Work, method of performance, nature of materials or price thereof, or any other matter materially affecting the performance or nature of the Work shall not be paid for or accepted unless such change, addition or deletion is approved in advance and in writing by a valid change order executed by the City. Should Contractor request a change order due to unforeseen
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circumstances affecting the performance of the Work, such request shall be made within five (5) business days of the date such circumstances are discovered or shall waive its right to request a change order due to such circumstances. If the Parties cannot agree on any change in price required by such change in the Work, the City may direct the Contractor to proceed with the performance of the change on a time and materials basis.
3.4.3 Change Orders. Changes to the Contract Time (as defined in Section
3.3) or Total Contract Price shall be in the form of a written Change Order, either signed by both parties or issued unilaterally by the City. No adjustment shall be made to the Contract Time unless the delay impacts the critical path to completion and the delay was not caused in whole or in part by the Contractor. The City’s liability to Contractor for delays for which the City is responsible shall be limited to only an extension of time unless such delays were unreasonable under the circumstances. Failure to timely request a Change Order shall constitute a waiver of any right to adjust the Contract Time or the Total Contract Price. All requests for Change Orders shall be accompanied by detailed supporting documentation, including but not limited to payroll records, invoices, schedules, and any other documentation requested by the City for the purpose of determining the additional costs or the impact of any delay. If the change involves Work bid at a unit price, then the Total Contract Price shall be increased at the unit price. If there is no unit price, then the Total Contract Price shall be adjusted to account for costs actually incurred plus an allowed mark-up of fifteen percent (15%), which shall constitute the entire amount of profit, mark-ups, field or home office overhead costs, including personnel, equipment or office space, any materials, or any costs of equipment idle time for such work.
Regardless of ownership, equipment rates shall not exceed the listed prevailing rates at local equipment rental agencies, or distributors, at the time the work is performed. Nothing herein shall prevent the Parties from agreeing to a lump sum cost.
3.4.4 Changes Ordered By City. City may at any time issue a written directive ordering additions, deletions, or changes to the Work. Contractor shall proceed with the work in accordance with the directive. To the extent the directive results in extra work or requires additional Contract Time, Contractor shall request a Change Order within seven (7) days of receiving the Work Directive. If any costs are not capable of being determined within seven (7) days, then Contractor shall request a Change Order within seven (7) days of when the costs are capable of being determined.
3.4.5 Changes Requested By Contractor. With respect to any matter that may involve or require an adjustment to the Contract Time or the Contract Price, Contractor shall provide written notice of the underlying facts and circumstances that gave rise to the potential change within seven (7) days or prior to the alteration of conditions, whichever is earlier. Failure to give notice shall constitute a waiver of Contractor’s right to a change order. If any costs are not capable of being determined within seven (7) days, then Contractor shall request a Change Order within seven (7) days of when the costs are capable of being determined.
3.5 Substitutions/”Or Equal”. Pursuant to Public Contract Code Section 3400(b), the City may make a finding that designates certain products, things, or services by specific brand or trade name. Unless specifically designated in this Contract, whenever any material, process, or article is indicated or specified by grade, patent, or proprietary name or by name of manufacturer, such Specifications shall be deemed to be used for the purpose of facilitating the description of the material, process or article desired and shall be deemed to be followed by the words “or equal.”
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Contractor may, unless otherwise stated, offer for substitution any material, process or article which shall be substantially equal or better in every respect to that so indicated or specified in this Contract. However, the City may have adopted certain uniform standards for certain materials, processes and articles. Contractor shall submit requests, together with substantiating data, for substitution of any “or equal” material, process or article no later than thirty-five (35) days after award of the Contract. To facilitate the construction schedule and sequencing, some requests may need to be submitted before thirty-five (35) days after award of Contract. Provisions regarding submission of “or equal” requests shall not in any way authorize an extension of time for performance of this Contract. If a proposed “or equal” substitution request is rejected, Contractor shall be responsible for providing the specified material, process or article. The burden of proof as to the equality of any material, process or article shall rest with Contractor.
The City has the complete and sole discretion to determine if a material, process or article is an “or equal” material, process or article that may be substituted. Data required to substantiate requests for substitutions of an “or equal” material, process or article data shall include a signed affidavit from Contractor stating that, and describing how, the substituted “or equal” material, process or article is equivalent to that specified in every way except as listed on the affidavit.
Substantiating data shall include any and all illustrations, specifications, and other relevant data including catalog information which describes the requested substituted “or equal” material, process or article, and substantiates that it is an “or equal” to the material, process or article. The substantiating data must also include information regarding the durability and lifecycle cost of the requested substituted “or equal” material, process or article. Failure to submit all the required substantiating data, including the signed affidavit, to the City in a timely fashion will result in the rejection of the proposed substitution.
Contractor shall bear all of the City’s costs associated with the review of substitution requests.
Contractor shall be responsible for all costs related to a substituted “or equal” material, process or article. Contractor is directed to the Special Conditions (if any) to review any findings made pursuant to Public Contract Code section 3400.
3.6 Standard of Performance; Performance of Employees. Contractor shall perform all Work under this Contract in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Work. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them.
Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Work, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Contract. As provided for in the indemnification provisions of this Contract, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any work necessary to correct errors or omissions which are caused by Contractor’s failure to comply with the standard of care provided for herein. Any employee who is determined by the City to be uncooperative, incompetent, a threat to the safety of persons or the Work, or any employee who fails or refuses to perform the Work in a manner acceptable to the City, shall be promptly removed from the Project by Contractor and shall not be re-employed on the Work.
3.7 Control and Payment of Subordinates; Contractual Relationship. City retains Contractor on an independent contractor basis and Contractor is not an employee of City. Any additional personnel performing the work governed by this Contract on behalf of
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Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Contract and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance.
3.8 City’s Basic Obligation. City agrees to engage and does hereby engage Contractor as an independent contractor to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provided in the Contract, the City shall pay to Contractor, as full consideration for the satisfactory performance by Contractor of the services and obligations required by this Contract, the below-referenced compensation in accordance with compensation provisions set forth in the Contract.
3.9 Labor.
3.9.1 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. Since the Work is 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. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Contract. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Contractor and any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than the prevailing wage rates.
3.9.2 Apprenticeable Crafts. When Contractor employs workmen in an apprenticeable craft or trade, Contractor shall comply with the provisions of Section 1777.5 of the California Labor Code with respect to the employment of properly registered apprentices upon public works. The primary responsibility for compliance with said section for all apprenticeable occupations shall be with Contractor. The Contractor or any subcontractor that is determined by the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or such greater amount as provided by law.
3.9.3 Hours of Work. Contractor is advised that eight (8) hours labor constitutes a legal day’s work. Pursuant to Section 1813 of the California Labor Code, Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week, except when payment for overtime is made at not less than one and one-half (1-1/2) times the basic rate for that worker.
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3.9.4 Payroll Records. Contractor and each subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of Contractor in the manner provided in Labor Code section 1776. In the event of noncompliance with the requirements of this section, Contractor shall have 10 days in which to comply subsequent to receipt of written notice specifying in what respects such Contractor must comply with this section. Should noncompliance still be evident after such 10-day period, Contractor shall, as a penalty to City, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compliance is effectuated. The amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on Contractor. In accordance with Labor Code section 1771.4, the Contractor and each subcontractor shall furnish the certified payroll records directly to the Department of Industrial Relations (“DIR”) on a weekly basis and in the format prescribed by the DIR, which may include electronic submission. The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.
3.9.5 Contractor and Subcontractor Registration. Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the DIR. No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the DIR to perform public work. Contractor is directed to review, fill out and execute the Public Works Contractor Registration Certification attached hereto as Exhibit “E” prior to contract execution. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
3.9.6 Labor Compliance; Stop Orders. This Project is subject to compliance monitoring and enforcement by the DIR. It shall be the Contractor’s sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract and applicable law. Any stop orders issued by the DIR against Contractor or any subcontractor that affect Contractor’s performance of Work, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay subject to any applicable liquidated damages and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against Contractor or any subcontractor.
3.10 Performance of Work; Jobsite Obligations.
3.10.1 Water Quality Management and Compliance.
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3.10.1.1 Water Quality Management and Compliance. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Work including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); local ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.
3.10.1.2 Compliance with the Statewide Construction General Permit.
Contractor shall comply with all conditions of the most recent iteration of the National Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated with Construction Activity, issued by the California State Water Resources Control Board (“Permit”).
It shall be Contractor’s sole responsibility to file a Notice of Intent and procure coverage under the Permit for all construction activity which results in the disturbance of more than one acre of total land area or which is part of a larger common area of development or sale. Prior to initiating work, Contractor shall be solely responsible for preparing and implementing a Storm Water Pollution Prevention Plan (SWPPP) as required by the Permit. Contractor shall be responsible for procuring, implementing and complying with the provisions of the Permit and the SWPPP, including the standard provisions, and monitoring and reporting requirements as required by the Permit. The Permit requires the SWPPP to be a “living document” that changes as necessary to meet the conditions and requirements of the job site as it progresses through difference phases of construction and is subject to different weather conditions. It shall be Contractor’s sole responsibility to update the SWPPP as necessary to address conditions at the project site.
3.10.1.3 Other Water Quality Rules Regulations and Policies.
Contractor shall comply with the lawful requirements of any applicable municipality, drainage City, or local agency regarding discharges of storm water to separate storm drain systems or other watercourses under their jurisdiction, including applicable requirements in municipal storm water management programs.
3.10.1.4 Cost of Compliance. Storm, surface, nuisance, or other waters may be encountered at various times during construction of the Work. Therefore, the Contractor, hereby acknowledges that it has investigated the risk arising from such waters and assumes any and all risks and liabilities arising therefrom.
3.10.1.5 Liability for Non-Compliance. Failure to comply with laws, regulations, standards, ordinances, and permits listed in Sections 3.10.1.1, 3.10.1.2, 3.10.1.3, and 3.10.1.4 of the Contract is a violation of federal and state law. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to defend, indemnify and hold harmless the City and its directors, officials, officers, employees, volunteers and agents for any alleged violations. In addition, City may seek damages from Contractor for any delay in completing the Work in accordance with the Contract, if such delay is caused by or related to Contractor’s failure to comply with the Permit.
3.10.1.6 Reservation of Right to Defend. City reserves the right to defend any enforcement action brought against the City for Contractor’s failure to comply with the Permit or any other relevant water quality law, regulation, or policy. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to
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reimburse the City for the costs (including the City’s attorney’s fees) associated with, any settlement reached between the City and the relevant enforcement entity.
3.10.1.7 Training. In addition to the standard of performance requirements set forth in this Contract, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies described in paragraph 3.10.1. Contractor further warrants that it, its employees and subcontractors will receive adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in paragraph 3.10.1 as they may relate to the Work provided under this Contract. Upon request, City will provide the Contractor with a list of training programs that meet the requirements of this paragraph.
3.10.2 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. Contractor shall comply with the requirements of the specifications relating to safety measures applicable in particular operations or kinds of work. In carrying out its Work, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the Work and the conditions under which the Work is to be performed. Safety precautions as applicable shall include, but shall not be limited to, adequate life protection and lifesaving equipment; adequate illumination for underground and night operations; instructions in accident prevention for all employees, such as machinery guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the proper inspection and maintenance of all safety measures.
Furthermore, Contractor shall prominently display the names and telephone numbers of at least two medical doctors practicing in the vicinity of the Project, as well as the telephone number of the local ambulance service, adjacent to all telephones at the Project site.
3.10.3 Laws and Regulations. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Contract or the Work, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with the Work. If Contractor observes that the drawings or specifications are at variance with any law, rule or regulation, it shall promptly notify the City in writing. Any necessary changes shall be made by written change order. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Contract to the same extent as though set forth herein and will be complied with.
Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Contract, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
3.10.4 Permits and Licenses. Contractor shall be responsible for securing City permits and licenses necessary to perform the Work described herein, including, but not limited to, a City Business License. While Contractor will not be charged a fee for any City
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permits, Contractor shall pay the City’s applicable business license fee. Any ineligible contractor or subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this Project.
3.10.5 Trenching Work. If the Total Contract Price exceeds $25,000 and if the Work governed by this Contract entails excavation of any trench or trenches five (5) feet or more in depth, Contractor shall comply with all applicable provisions of the California Labor Code, including Section 6705. To this end, Contractor shall submit for City’s review and approval a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.
3.10.6 Hazardous Materials and Differing Conditions. As required by California Public Contract Code Section 7104, if this Contract involves digging trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly, and prior to disturbance of any conditions, notify City of: (1) any material discovered in excavation that Contractor believes to be a hazardous waste that is required to be removed to a Class I, Class II or Class III disposal site; (2) subsurface or latent physical conditions at the site differing from those indicated by City; and (3) unknown physical conditions of an unusual nature at the site, significantly different from those ordinarily encountered in such contract work. Upon notification, City shall promptly investigate the conditions to determine whether a change order is appropriate. In the event of a dispute, Contractor shall not be excused from any scheduled completion date and shall proceed with all Work to be performed under the Contract, but shall retain all rights provided by the Contract or by law for making protests and resolving the dispute.
3.10.7 Underground Utility Facilities. To the extent required by Section 4215 of the California Government Code, City shall compensate Contractor for the costs of: (1) locating and repairing damage to underground utility facilities not caused by the failure of Contractor to exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in the construction drawings; and (3) equipment necessarily idled during such work. Contractor shall not be assessed liquidated damages for delay caused by failure of City to provide for removal or relocation of such utility facilities.
3.10.8 Air Quality. Contractor shall fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the air pollution control district or air quality management district with jurisdiction (Air District) and/or California Air Resources Board (CARB). Although the Air District and CARB limits and requirements are more broad, Contractor shall specifically be aware of their application to "portable equipment", which definition is considered by Air District and CARB to include any item of equipment with a fuel-powered engine.
The California Air Resources Board (“CARB”) implemented amendments to the In-Use Off-Road Diesel-Fueled Fleets Regulations (“Regulation”) which are effective on January 1, 2024 and apply broadly to all self-propelled off road diesel vehicles 25 horsepower or greater and other forms of equipment used in California. A copy of the Regulation is available at https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2022/off-roaddiesel/appa-1.pdf.
Contractors and Subcontractors are required to comply with all CARB and Regulation requirements, including, without limitation, all applicable sections of the Regulation, as codified in Title 13 of the California Code of Regulations section 2449 et seq. throughout the term of the
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Project. Contractors must provide, with their Bid, copies of Bidder’s and all listed subcontractors the most recent, valid Certificate of Reported Compliance (“CRC”) issued by CARB. Failure to provide valid CRCs as required herein in “Exhibit H” may render the Bid non-responsive.
Contractor shall comply, and shall ensure all subcontractors comply, with all applicable requirements of Title 13, California Code of Regulations Division 3, Chapter 9 and all pending amendments (“Regulation”). Throughout the Project, and for three (3) years thereafter, Contractor shall make available for inspection and copying any and all documents or information associated with Contractor’s and any subcontractors’ fleet including, without limitation, all Certificates of Reported Compliance, fuel/refueling records, maintenance records, emissions records, and any other information the Contractor is required to produce, keep or maintain pursuant to the Regulation upon two (2) calendar days’ notice from the District. Contractor shall indemnify District against any fines or penalties imposed by Air District, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.
3.10.9 State Recycling Mandates. Contractor shall comply with State Recycling Mandates. Any recyclable materials/debris collected by the contractor that can be feasibly diverted via reuse or recycling must be hauled by the appropriate handler for reuse or recycling.
3.10.10 Inspection Of Site. Contractor has visited sites where Work is to be performed and has become acquainted with all conditions affecting the Work. Contractor warrants that it has made such examinations as it deems necessary to determine the condition of the Work sites, its accessibility to materials, workmen and equipment, and to determine the Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money–will be allowed as to such matters.
3.10.11 Field Measurements. Contractor shall make field measurements, verify field conditions and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract Documents before commencing activities. Errors, inconsistencies or omissions discovered shall be reported to the City immediately and prior to performing any work or altering the condition.
3.11 Completion of Work. When Contractor determines that it has completed the Work required herein, Contractor shall so notify City in writing and shall furnish all labor and material releases required by this Contract. City shall thereupon inspect the Work. If the Work is not acceptable to the City, the City shall indicate to Contractor in writing the specific portions or items of Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed the incomplete or unsatisfactory Work, Contractor may request a re-inspection by the City. Once the Work is acceptable to City, City shall pay to Contractor the Total Contract Price remaining to be paid, less any amount which City may be authorized or directed by law to retain. Payment of retention proceeds due to Contractor shall be made in accordance with Section 7107 of the California Public Contract Code.
3.12 Claims; Government Code Claim Compliance.
3.12.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code
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prescribes a process for negotiation and mediation to resolve disputes on construction claims.
The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.
3.12.2 Claims. For purposes of this Section, “Claim” means a separate demand by the Contractor, after a change order duly requested in accordance with the terms of this Contract has been denied by the City, for (A) a time extension, (B) payment of money or damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, or (C) an amount the payment of which is disputed by the City. A “Claim” does not include any demand for payment for which the Contractor has failed to provide notice, request a change order, or otherwise failed to follow any procedures contained in the Contract Documents.
3.12.3 Filing Claims. Claims governed by this Section may not be filed unless and until the Contractor completes all procedures for giving notice of delay or change and for the requesting of a time extension or change order, including but not necessarily limited to the change order procedures contained herein, and Contractor’s request for a change has been denied in whole or in part. Claims governed by this Section must be filed no later than fourteen (14) days after a request for change has been denied in whole or in part or after any other event giving rise to the Claim. The Claim shall be submitted in writing to the City and shall include on its first page the following in 16 point capital font: “THIS IS A CLAIM.” Furthermore, the claim shall include the documents necessary to substantiate the claim. Nothing in this Section is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims, including all requirements pertaining to compensation or payment for extra Work, disputed Work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon.
3.12.4 Supporting Documentation. The Contractor shall submit all claims in the following format:
3.12.4.1 Summary of claim merit and price, reference Contract Document provisions pursuant to which the claim is made
3.12.4.2 List of documents relating to claim:
A. Specifications
B. Drawings
C. Clarifications (Requests for Information)
D. Schedules
E. Other
3.12.4.3 Chronology of events and correspondence
3.12.4.4 Analysis of claim merit
3.12.4.5 Analysis of claim cost, including calculations and supporting documents
3.12.4.6 Time impact analysis in CPM format
3.12.4.7 If Contractor’s claim is based in whole or in part on an allegation of errors or omissions in the Drawings or Specifications for the Project, Contractor shall provide a summary of the percentage of the claim subject to design errors or omissions and shall obtain a certificate of merit in support of the claim of design errors and omissions.
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3.12.4.8 If Contractor’s claim is based in whole or in part on an allegation of errors or omissions in the Drawings or Specifications for the Project, Contractor shall provide a summary of the percentage of the claim subject to design errors or omissions and shall obtain a certificate of merit in support of the claim of design errors and omissions.
3.12.5 City’s Response. Upon receipt of a Claim pursuant to this Section, City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days of receipt of the Claim, or as extended by mutual agreement, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the Claim will be processed and made within 60 days after the City issues its written statement.
3.12.5.1 If City needs approval from its governing body to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, City shall have up to three (3) days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
3.12.5.2 Within 30 days of receipt of a Claim, City may request in writing additional documentation supporting the Claim or relating to defenses or claims City may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of City and the Contractor.
City’s written response to the Claim, shall be submitted to the Contractor within 30 Days (if the Claim is less than $50,000, within 15 Days) after receipt of the additional documentation, or within a period of time no greater than that taken by the Contractor in producing the additional information or requested documentation, whichever is greater.
3.12.6 Meet and Confer. If the Contractor disputes City’s written response, or City fails to respond within the time prescribed, the Contractor may so notify City, in writing, within 15 Days of receipt of City’s response or the City’s failure to respond, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, City shall schedule a meet and confer conference within 30 Days for settlement of the dispute.
3.12.7 Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 Days after City issues its written statement. Any disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with City and the Contractor sharing the associated costs equally. City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing, unless the Parties agree to select a mediator at a later time.
3.12.7.1 If the Parties cannot agree upon a mediator, each Party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.
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3.12.7.2 For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the Parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
3.12.7.3 Unless otherwise agreed to by City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
3.12.7.4 The mediation shall be held no earlier than the date the Contractor completes the Work or the date that the Contractor last performs Work, whichever is earlier. All unresolved Claims shall be considered jointly in a single mediation, unless a new unrelated Claim arises after mediation is completed.
3.12.8 Procedures After Mediation. If following the mediation, the Claim or any portion remains in dispute, the Contractor must file a claim pursuant to Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time the Contractor submits his or her written Claim pursuant to subdivision (a) until the time the Claim is denied, including any period of time utilized by the meet and confer conference or mediation.
3.12.9 Civil Actions. The following procedures are established for all civil actions filed to resolve Claims of $375,000 or less:
3.12.9.1 Within 60 Days, but no earlier than 30 Days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both Parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the terms of these procedures. The mediation process shall provide for the selection within 15 Days by both Parties of a disinterested third person as mediator, shall be commenced within 30 Days of the submittal, and shall be concluded within 15 Days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court.
3.12.9.2 If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.
3.12.9.3 In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction law, and (B) any party appealing an arbitration award who does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney’s fees on appeal of the other party.
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3.12.10 Government Code Claim Procedures.
3.12.10.1 This section does not apply to tort claims and nothing in this section is intended nor shall be construed to change the time periods for filing tort claims or actions specified by Chapter 1 (commending with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.5 of Title 1 of the Government Code.
3.12.10.2 In addition to any and all Contract requirements pertaining to notices of and requests for adjustments to the Contract Time, Contract Price, or compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City.
3.12.10.3 Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to adjustment of the Contract Time, Contract Price, or compensation or payment for extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor may not file any action against the City.
3.12.10.4 A Government Code claim must be filed no earlier than the date the work is completed or the date the Contractor last performs work on the Project, whichever occurs first. A Government Code claim shall be inclusive of all unresolved Claims known to the Contractor excepting only new unrelated Claims that arise after the Government Code claim is submitted.
3.12.11 Non-Waiver. City’s failure to respond to a Claim from the Contractor within the time periods described in this section or to otherwise meet the time requirements of this section shall result in the Claim being deemed rejected in its entirety and shall not constitute a waiver of any rights under this section.
3.13 Loss and Damage. Except as may otherwise be limited by law, Contractor shall be responsible for all loss and damage which may arise out of the nature of the Work agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Work until the same is fully completed and accepted by City. In the event of damage proximately caused by an Act of God, as defined by Section 7105 of the Public Contract Code, the City may terminate this Contract pursuant to the termination provisions in this Contract; provided, however, that the City needs to provide Contractor with only one (1) day advanced written notice.
3.14 Indemnification.
3.14.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its officials, employees, agents and volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or
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agents in connection with the performance of the Contractor’s services, the Project or this Contract, including without limitation the payment of all consequential damages, expert witness fees, attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor’s indemnity obligation shall not apply to such loss or damage which is caused by the sole or active negligence or willful misconduct of the City.
3.14.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City’s choosing and at Contractor’s own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against City or its officials, employees, agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its officials, employees, agents and authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by City or its officials, employees, agents and authorized volunteers as part of any such claim, suit, action or other proceeding.
Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse City and its officials, employees, agents and authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration or termination of this Contract, and shall not be restricted to insurance proceeds, if any, received by the City, its officials, employees, agents and authorized volunteers.
3.15 Insurance.
3.15.1 Time for Compliance. Contractor shall not commence Work under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Contract for cause.
3.15.2 Minimum Requirements. Contractor shall, at its expense, procure and maintain for the duration of the Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees or subcontractors. Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Contract. Such insurance shall meet at least the following minimum levels of coverage:
3.15.2.1 Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 00 01) OR Insurance Services Office Owners and Contractors Protective Liability Coverage Form (CG 00 09 11 88) (coverage for operations of designated contractor); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 00 01, code 1 (any auto); (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance; and (4) Builders’/All Risk: Builders’/All Risk insurance covering for all risks of loss, including explosion, collapse, underground excavation and removal of lateral support (and including earthquakes and floods if requested by the City).
Policies shall not contain exclusions contrary to this Contract.
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3.15.2.2 Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence and $4,000,000 general aggregate for bodily injury, personal injury and property damage; (2) Automobile Liability:
$1,000,000 per accident for bodily injury and property damage; (3) Workers’ Compensation and Employer’s Liability: Workers’ compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 each accident, policy limit bodily injury or disease, and each employee bodily injury or disease; and (4) Builders’/All Risk: Completed value of the project. Defense costs shall be available in addition to the limits. Notwithstanding the minimum limits specified herein, any available coverage shall be provided to the parties required to be named as additional insureds pursuant to this Contract.
3.15.2.3 Notices; Cancellation or Reduction of Coverage. At least fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or materially reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. In the event any policy of insurance required under this Contract does not comply with these specifications or is canceled and not replaced, the City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the City will be promptly reimbursed by Contractor or the City may withhold amounts sufficient to pay premium from Contractor payments. In the alternative, the City may suspend or terminate this Contract.
3.15.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor shall provide endorsements (amendments) on forms supplied or approved by the City to add the following provisions to the insurance policies:
3.15.3.1 General Liability. (1) Such policy shall give the City, its officials, employees, agents and volunteers additional insured status using ISO endorsements CG20 10 10 01 plus CG20 37 10 01, or endorsements providing the exact same coverage, with respect to the Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such work; (2) all policies shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of any loss or any coverage provided to any person named as an additional insured pursuant to this Contract, and Contractor agrees to waive all such rights of subrogation; and (3) the insurance coverage shall be primary insurance as respects the City, its officials, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Contractor’s scheduled underlying coverage. Any insurance or selfinsurance maintained by the City, its officials, employees, agents and volunteers shall be excess of Contractor’s insurance and shall not be called upon to contribute with it.
3.15.3.2 Automobile Liability. (1) Such policy shall give the City, its officials, employees, agents and volunteers additional insured status with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by Contractor or for which Contractor is responsible; (2) all policies shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of any loss or any coverage provided to any person named as an additional insured pursuant to this Contract, and Contractor agrees to waive all such rights of subrogation; and (3) the insurance coverage shall be primary insurance as respects the City, its officials, employees, agents and volunteers, or if excess, shall stand in
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an unbroken chain of coverage excess of Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its officials, employees, agents and volunteers shall be excess of Contractor’s insurance and shall not be called upon to contribute with it in any way.
3.15.3.3 Workers’ Compensation and Employer’s Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the City, its officials, employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from work performed by Contractor.
3.15.3.4 All Coverages. Each insurance policy required by this Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its officials, employees, agents and volunteers.
3.15.4 Builders’/All Risk Policy Requirements. The builders’/all risk insurance shall provide that the City be named as loss payee. In addition, the insurer shall waive all rights of subrogation against the City.
3.15.5 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its officials, employees, agents and volunteers.
3.15.6 Professional Liability Insurance. All architects, engineers, consultants or design professionals retained by Contractor shall also procure and maintain, for a period of five (5) years following completion of the Contract, errors and omissions liability insurance with a limit of not less than $1,000,000 per occurrence. This insurance shall name the City, its directors, officials, officers, employees, agents and volunteers as additional and insureds with respect to Work performed, and shall otherwise comply with all requirements of this Section.
Defense costs shall be paid in addition to the limits.
3.15.7 Deductibles and Self-Insurance Retentions. Any deductibles or selfinsured retentions must be declared to and approved by the City. Contractor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officials, employees, agents and authorized volunteers; or (2) the Contractor shall procure a bond or other financial guarantee acceptable to the City guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.
3.15.8 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A:VII, licensed to do business in California, and satisfactory to the City. Exception may be made for the State Compensation Insurance Fund when not specifically rated.
3.15.9 Verification of Coverage. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Contract on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on
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forms supplied or approved by the City. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.
3.15.10 Subcontractors. All subcontractors shall meet the requirements of this Section before commencing Work. Contractor shall furnish separate certificates and endorsements for each subcontractor. Subcontractor policies of General Liability insurance shall name the City, its officials, employees, agents and authorized volunteers as additional insureds using form ISO 20 38 04 13 or endorsements providing the exact same coverage. All coverages for subcontractors shall be subject to all of the requirements stated herein except as otherwise agreed to by the City in writing.
3.15.11 Reporting of Claims. Contractor shall report to the City, in addition to Contractor’s insurer, any and all insurance claims submitted by Contractor in connection with the Work under this Contract.
3.16 Bond Requirements.
3.16.1 Payment Bond. If required by law or otherwise specifically requested by City in Exhibit “F” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Payment Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.
3.16.2 Performance Bond. If specifically requested by City in Exhibit “F” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Performance Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.
3.16.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the effected bond within (ten) 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Contract until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the Total Contract Price is increased in accordance with the Contract, Contractor shall, upon request of the City, cause the amount of the bond to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. If Contractor fails to furnish any required bond, the City may terminate the Contract for cause.
3.16.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be accepted. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.
3.17 Warranty. Contractor warrants all Work under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and
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any non-conforming materials incorporated into the Work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Work or non-conformance of the Work to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the Work (or work of other contractors) damaged by its defective Work or which becomes damaged in the course of repairing or replacing defective Work. For any Work so corrected, Contractor’s obligation hereunder to correct defective Work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected Work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the Work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming Work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.
3.18 Employee/Labor Certifications.
3.18.1 Contractor’s Labor Certification. By its signature hereunder, Contractor certifies that he is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Work. A certification form for this purpose, which is attached to this Contract as Exhibit “D” and incorporated herein by reference, shall be executed simultaneously with this Contract.
3.18.2 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
3.18.3 Verification of Employment Eligibility. By executing this Contract, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subcontractors and sub-subcontractors to comply with the same.
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3.19 Termination. This Contract may be terminated by City at any time, either with our without cause, by giving Contractor three (3) days advance written notice. In the event of termination by City for any reason other than the fault of Contractor, City shall pay Contractor for all Work performed up to that time as provided herein. In the event of breach of the Contract by Contractor, City may terminate the Contract immediately without notice, may reduce payment to Contractor in the amount necessary to offset City’s resulting damages, and may pursue any other available recourse against Contractor. Contractor may not terminate this Contract except for cause. In the event this Contract is terminated in whole or in part as provided, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. Further, if this Contract is terminated as provided, City may require Contractor to provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by Contractor in connection with its performance of this Contract. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.
City Officers and Employees: Non-Discrimination.
3.19.1 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 Contract.
3.19.2 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 Contract nor shall Contractor enter into any agreement of any kind with any such officer or employee during the term of this Contract 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 Contract.
3.19.3 Covenant Against Discrimination. In connection with its performance under this Contract, 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 Contract, and in executing this Contract, 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.
3.20 General Provisions.
3.20.1 City’s Representative. The City hereby designates Daniel Martinez, or his or her designee, to act as its representative for the performance of this Contract (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all
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purposes under this Contract. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.
3.20.2 Contractor’s Representative. Before starting the Work, Contractor shall submit in writing the name, qualifications and experience of its proposed representative who shall be subject to the review and approval of the City (“′Contractor’s Representative”).
Following approval by the City, Contractor’s Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Contract. Contractor’s Representative shall supervise and direct the Work, using his best skill and attention, and shall be responsible for all construction means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Contract. Contractor’s Representative shall devote full time to the Project and either he or his designee, who shall be acceptable to the City, shall be present at the Work site at all times that any Work is in progress and at any time that any employee or subcontractor of Contractor is present at the Work site.
Arrangements for responsible supervision, acceptable to the City, shall be made for emergency Work which may be required. Should Contractor desire to change its Contractor’s Representative, Contractor shall provide the information specified above and obtain the City’s written approval.
3.20.3 Contract Interpretation. Should any question arise regarding the meaning or import of any of the provisions of this Contract or written or oral instructions from City, the matter shall be referred to City’s Representative, whose decision shall be binding upon Contractor.
3.20.4 Anti-Trust Claims. This provision shall be operative if this Contract is applicable to California Public Contract Code Section 7103.5. In entering into this Contract to supply goods, services or materials, Contractor hereby offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tender final payment to Contractor, without further acknowledgment by the Parties.
3.20.5 Notices. All notices hereunder and communications regarding interpretation of the terms of the Contract or changes thereto shall be provided by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows:
To City: City of Palm Springs
Attention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Contractor: Polar Electrical Company
Attention: Aaron Han
35834 Blue Breton Dr.
Fallbrook, CA 92028
Any notice so given shall be considered received by the other Party three (3) days after deposit in the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice
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shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.20.6 Time of Essence. Time is of the essence in the performance of this Contract.
3.20.7 Assignment Forbidden. Contractor shall not, either voluntarily or by action of law, assign or transfer this Contract or any obligation, right, title or interest assumed by Contractor herein without the prior written consent of City. If Contractor attempts an assignment or transfer of this Contract or any obligation, right, title or interest herein, City may, at its option, terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to Contractor or its assignee or transferee.
3.20.8 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.20.9 Laws; Venue. This Contract shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Contract, the action shall be brought in a state or federal court situated in the County of Riverside, State of California.
3.20.10 Attorneys’ Fees. If either Party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Contract, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys’ fees and all other costs of such action.
3.20.11 Counterparts. This Contract may be executed in counterparts, each of which shall constitute an original.
3.20.12 Successors. The Parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract.
3.20.13 Solicitation. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Contract. For breach or violation of this warranty, City shall have the right to terminate this Contract without liability.
3.20.14 Certification of License.
3.20.14.1 Contractor certifies that as of the date of execution of this Contract, Contractor has a current contractor’s license of the classification indicated below under Contractor’s signature.
3.20.14.2 Contractors are required by law to be licensed and regulated by the Contractors’ State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four (4) years of the
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date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O. Box 26000, Sacramento, California 95826.
3.20.15 Authority to Enter Contract. Each Party warrants that the individuals who have signed this Contract have the legal power, right and authority to make this Contract and bind each respective Party.
3.20.16 Entire Contract; Modification. This Contract contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Contract may only be modified by a writing signed by both Parties.
3.20.17 Non-Waiver. None of the provisions of this Contract shall be considered waived by either party, unless such waiver is specifically specified in writing.
3.20.18 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project or other projects.
3.21 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 Attachment “G” (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 POLAR ELECTRICAL COMPANY
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.
CONTRACTOR:
By Date
Signature
CITY OF PALM SPRINGS:
APPROVED BY CITY COUNCIL: Date: Item No.
APPROVED AS TO FORM: ATTEST:
By By
City Attorney City Clerk
APPROVED:
By Date
City Manager – up to $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
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EXHIBIT “A”
SERVICES / SCHEDULE
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Scope:
A. Contractor shall provide electrical repairs and installation services on an as-needed basis for all City of Palm Springs buildings and facilities.
B. Contractor shall provide all necessary labor with certified technicians, materials, hand and power tools, supplies and equipments in accordance with the provisions and terms and conditions.
C. The scope of Work shall include, but is not limited to: general electrical repairs, installation, troubleshooting, testing, inspecting, IR scanning, wiring, wire management, distribution equipment testing and repair, cable pulling, lighting upgrades, high and low voltage, and other work normally under the jurisdiction of a licensed electrical construction contractor, the National Electrical Contractors Association and the Sound Public Address and Communication Employees Association (Work). Medium (1000 volts to 34,500 volts), line (up to 1000 volts) and low (under 50 volts AC/DC) voltage Work are included under this contract. This may include project estimation and budgeting of work. The scope of work will not include A/V work.
D. Requests for proposals shall be provided within 14 days from the initial request.
E. Contractor shall respond to department within 48 hours from request for work.
F. The Contractor shall respond to emergency calls for service within 24 hours from request. Emergency responses to include weekends, after-hours, and holidays.
G. Contractor shall provide sufficient resources to respond to multiple requests for work simultaneously, dispatching crews to each project which may have overlapping timelines.
H. Contractor shall be responsible for setting up proper site protection prior to commencing services, as well as daily clean-up following completion of work.
I. The Contractor shall be solely responsible for correcting any damages caused by onsite work, due to improperly protecting property.
J. Contractor shall have weekly written communication with the Project Manager to provide project updates and provide forthcoming schedule updates.
K. Contractor shall discuss all modifications with the Project Manager prior to commencement of work.
L. Contractor shall have knowledge of the City of Palm Springs Historic buildings and the various historic classifications that shall define and outline the repair and improvements allowed. Details are available at https://www.palmspringsca.gov/ government/departments/planning/historic-resources/historic-properties M. Correction of work deficiencies:
1. Contractor shall correct work rejected by the City as failing to conform to the requirements in the project documents within thirty days. The Contractor shall bear the cost of correcting such rejected work, including the costs of uncovering, replacement, and additional testing.
2. If the Contractor fails to commence correction of nonconforming work within a seven day period after written notice, the city may correct the deficiencies by other means. In such case, the City may exercise rights and remedies as provided in section 8.5 of the sample agreement attached at Section 6 of this IFB.
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3. In addition to the Contractor’s other obligations, the contractor shall, for a period of one year after substantial completion, correct work not conforming to the requirements of the work.
N. Compliance with regulations and permits: Contractor shall comply with or exceed all relevant statutes, codes, rules, and regulations as may be applicable to this contract and shall be responsible for securing any and all permits as required by the governing authority. The City shall reimburse the Contractor for only the actual cost of said permits.
O. Equipment and supplies: Contractor shall provide, at no additional cost to the City, all necessary equipment, hand, and power tools and supplies typically used by the job classification and/or assigned trade person. Mechanical or other equipment used for Work must be of a type that is approved by the industry and shall be operated in such a manner as not to cause danger of any nature to employees or other persons or damage to the building structure, fixtures, furnishings, etc. The City, at its sole and absolute discretion, may approve to pay for equipment, tools, or materials it determines is not typical of that job classification. Contractor must not store equipment and/or supplies on any City property.
P. General safety requirements: The Contractor shall be responsible for all safety precautions required in connection with their work, including regulations of the Occupational Safety and Health Administration (OSHA) and other governing agencies.
The City reserves the right to oversee all service work from a safety standpoint and require the Contractor to take appropriate action to ensure safety and code compliance.
Q. Damages: Necessary precautions shall be taken at all times to protect persons, property and equipment from injury or damage. Any damage shall be reported, reviewed, and discussed with the facility manager
R. Security:
1. The Contractor is responsible for ensuring all entries/exits to the work area are secure during the discharge of their duties (doors must not be propped open). The Contractor does not have the authority and shall not grant access to any person requesting entry into the building or specific work area.
2. Any items or articles of apparent value found by the Contractor’s personnel in any areas of the building or site shall be turned over to the facility manager or on-site Security. Any suspicious articles that may be found, or persons loitering or conducting themselves in a manner to arouse suspicion or possibly in need of help, shall be immediately reported to Police.
S. Uniforms and vehicles: The Contractor shall be required to properly uniform its service personnel, and they shall present a clean and neat appearance at all times. Day service personnel shall have color-coordinated shirts with company name and/or logo provided by the Contractor. Contractor must abide by City’s requirements for visiting City buildings, including wearing required face coverings. Contractor vehicles must display company logo and name.
Pricing:
A. The pricing included in this Contract shall be firm for the first year.
B. The unit prices may be adjusted (decreased or increased) once a year to correspond with the most recent annual change to the Consumer Price Index for All Urban
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Consumers as published by the U.S. Bureaus of Labor Statistics for the Riverside-San Bernardino-Ontario Areas.
C. The City will only pay for the items listed on the bid form. Contractor must incorporate all of its costs in its unit bid prices, including but not limited to labor, supervision, project management, overhead, profit, onboarding training, travel, mileage, truck charges, fuel charges, service call charges, parking, delivery, portal-to-portal charges, environmental fees, shop supplies and consumable incidental materials. The City will not pay for subcontractors, rental of equipment/tools, and purchase of materials/supplies unless the City authorized payment of the applicable items.
Payment:
The resulting contract for these services is an on-call as needed contract. No specific amount of work is guaranteed. The contract value is an estimated value only. All work authorized under the contract will be compensated on a time and material basis as outlined in the Invoicing Section
Invoicing:
Contractor will submit an itemized invoice. Billings must reference a purchase order number and shall indicate the unit (contract) price. Contractor will be paid for the actual hours worked at the rates shown in the contract. Parts, materials, equipment, and subcontractor costs will be compensated at actual cost with receipts required with allowable markup as outline in the contract. Contractor shall break out the line items on the invoice in accordance with the line items on the bid form. Contractor must provide back-up documentation for materials, subcontractor, rented equipment, permits, disposal and recycling fees. Invoices that are submitted with incorrect prices may be returned for correction before any payments to the contractor are authorized. It shall be the contractor’s responsibility to submit a correct invoice. The City shall not be responsible for payment until a correct invoice is received. The invoice shall be accompanied by receipts, dated, and signed by a City Employee, verifying the work was done. Invoices and receipts will be submitted to the Contract Officer for approval. All invoices are to be sent as one document to: [email protected].
Special Security Requirements:
A. Palm Springs Police Department: Any personnel of Contractor assigned to perform services at the Palm Springs Police Department must pass a Criminal History Records Check (CHRC) prior to performing services at this facility. The CHRC(s) will be provided at no charge to Contractor. Contractor shall coordinate the record checks with the City’s Contract Officer. The City will accept as evidence of passing such a test a LiveScan card issued by another government agency.
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EXHIBIT “B”
SCHEDULE OF COMPENSATION
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EXHIBIT “C”
SPECIAL CONDITIONS
ARTICLE 1. BONDS
Concurrently with this Contract, the Contractor shall deliver to the City four identical counterparts of the Performance Bond and Payment Bond on the forms supplied by the City and included as Exhibit “F” to the Contract. The surety supplying the bond must be an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, authorized to do business as such in the State of California and satisfactory to the City. The Performance Bond and the Payment Bond shall be for one hundred percent (100%) of the Total Contract Price.
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EXHIBIT “D”
CERTIFICATION
LABOR CODE - SECTION 1861
I, the undersigned Contractor, am aware of the provisions of Section 3700, et seq., of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of the Code, and I, the undersigned Contractor, agree to and will comply with such provisions before commencing the performance of the Work on this Contract.
POLAR ELECTRICAL COMPANY
By:
Signature
Name (print)
Title (print)
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EXHIBIT “E”
PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See http://www.dir.ca.gov/PublicWorks/PublicWorks.html for additional information.
No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work.
Contractor hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relations.
Name of Contractor:
DIR Registration Number:
DIR Registration Expiration:
Small Project Exemption: _____ Yes or _____ No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further acknowledges:
1. Contractor shall maintain a current DIR registration for the duration of the project.
2. Contractor shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project.
3. Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is non-responsive.
Name of Contractor
Signature
Name and Title
Dated
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EXHIBIT “F”
PAYMENT AND PERFORMANCE BONDS
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PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Palm Springs (hereinafter referred to as “City”) has awarded to ____________________, (hereinafter referred to as the “Contractor”) _______________________ an agreement for ______________________________ (hereinafter referred to as the “Project”).
WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.
NOW, THEREFORE, we, _______________, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of ___________________________ DOLLARS, ($____________), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officers and agents, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.
As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15.
Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:
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(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.
(3) Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.
Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.
Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project.
The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__).
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal)
Surety
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By
Attorney-in-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)
THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety
and Agent or Representative for
service of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
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Notary Acknowledgment
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally
appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of Palm Springs (hereinafter designated as the “City”), by action taken or a resolution passed ___________ , 20____has awarded to ________________ hereinafter designated as the “Principal,” a contract for the work described as follows:
_____________________________________________________ (the “Project”); and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated __________________ (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.
NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of ______________ Dollars ($___________) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses.
This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond.
It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any
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scheme or work of improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal) Surety
By
Attorney-in-Fact
Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
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Notary Acknowledgment
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally
appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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