The URL can be used to link to this page

Home My WebLink AboutItem No. 17 - Amendment No. 1 with CM Wash Equipment for Additional Maintenance Services of Wa17)Amendment No. 1 with CM Wash Equipment for Additional Maintenance Services of Wash Stations and Equipment for Citywide Facilities Approve and authorize the City Manager to execute Amendment No. 1 with CM Wash Equipment for additional maintenance of wash stations and equipment for Citywide Facilities and to increase compensation by an additional $12,000.00 for a total not to exceed $61,007.95 per Fiscal Year plus ten percent contingency of $6,100.80 in such final form as approved by the City Attorney. Page 1 of 2 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Jason Simpson, City Manager Prepared by:Rick De Santiago, Public Works Manager Date:June 25, 2024 Subject:Amendment No. 1 with CM Wash Equipment for Additional Maintenance Services of Wash Stations and Equipment for Citywide Facilities Recommendation Approve and authorize the City Manager to execute Amendment No. 1 with CM Wash Equipment for additional maintenance of wash stations and equipment for Citywide Facilities and to increase compensation by an additional $12,000.00 for a total not to exceed $61,007.95 per Fiscal Year plus ten percent contingency of $6,100.80 in such final form as approved by the City Attorney. Background The City entered into the original agreement on September 13, 2022, for $49,007.95 for the maintenance of wash stations and equipment for Citywide Facilities. CM Wash Equipment has provided valuable maintenance services to the City of Lake Elsinore at multiple locations. CM Wash Equipment conducts regular maintenance and repairs to ensure the optimal performance and longevity of wash stations and equipment. Discussion Amendment No. 1 is requested to incorporate additional maintenance services including inspections, repairs, and cleaning of wash stations and equipment. This ensures that the wash stations are functioning properly, free from any leaks or malfunctions. This includes inspecting and servicing the equipment, identifying, and resolving any issues or malfunctions, performed routine maintenance, replacement of worn-out parts, adjustment of settings, and temperatures. Fiscal Impact Funds are available in the Fiscal Year 23-24 Annual Operating Budget. Amendment No. 1 with CM Wash Page 2 of 2 Attachments Attachment 1 - Amendment No. 1 Exhibit A - Invoices Attachment 2 - Original Agreement Public Works AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACTOR SERVICES CM Wash Equipment Maintenance of Wash Stations and Equipment This Amendment No. 1 to Agreement for Contractor Services is made and entered into as of 6/25/2024, by and between the City of Lake Elsinore, a municipal corporation (“City), and CM Wash Equipment, a Limited Liability Co. (“Contractor”). RECITALS A. The City and Contractor have entered into that certain Agreement for Contractor Services dated as of 9/13/2022, (the “Original Agreement”). Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement. B. The Original Agreement provided for compensation to Contractor in an amount of Forty-Nine Thousand Seven dollars and Ninety-Five cents ($49,007.95). C. The Original Agreement had a term of commencing on September 13, 2022, and ending June 30, 2023. The City may, at its discretion, extend the term of this Agreement on a 12- month basis not to exceed 2 additional twelve (12) month renewal terms. D. The parties now desire to amend and increase the payment for such services as set forth in this Amendment No. 1 for an annual amount not to exceed $61,007.95. NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, City and Contractor agree as follows: 1. Section 3, Compensation, of the Original Agreement is hereby amended to read in its entirety as follows: Compensation to be paid to Contractor shall be in accordance with the fees set forth in Contractor ’s Proposal (Exhibit A-1), which is attached hereto and incorporated herein by reference. In no event shall Contractor ’s annual compensation exceed Sixty-One Thousand Seven and Ninety-Five Cents ($61,007.95) without additional written authorization from the City Council. 2. Except for the changes specifically set forth herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to be executed on the respective dates set forth below. “CITY” CITY OF LAKE ELSINORE, a municipal corporation “CONTRACTOR” CM Wash Equipment, a Limited Liability Co. City Manager Date: Michael Rose, Member Date: __ ATTEST: City Clerk APPROVED AS TO FORM: City Attorney Assistant City Manager Attachments: Exhibit A-1 – Contractor ’s Proposal EXHIBIT A-1 CONTRACTOR ’S PROPOSAL [ATTACHED] Invoice Date 5/22/24 Invoice # 32380 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To CITY YARD ATTN: LUIS CEJA CM Wash Equipment WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment PO Box 1517 Lake Elsinore, CA 92531 PLEASE REMIT PAYMENT TO: PO BOX 1517, LAKE ELSINORE, CA 92531 PH: 951-471-5590 Item Description Qty Rate Amount (FY 23/24) QUARTERLY PM SERVICE ROSETTA CANYON PARK UTILITY CART : TORO SAND PRO QUARTERLY PM SERVICE #4 (1) TORO SAND PRO Non-inventory AIR FILTER 1 31.75 31.75T Non-inventory PRE CLEANER 1 9.00 9.00T MO MOTOR OIL 2 11.45 22.90T Non-inventory OIL FILTER 1 24.00 24.00T SPB CHAMPION 71 SPARK PLUG FOR B&S ENGINES 2 9.95 19.90T Non-inventory FUEL FILTER 1 22.00 22.00T MISC MISC FITTINGS/HARDWARE/SUPPLIES: GREASE, HYDRAULIC FLUID, LINKAGE LUBRICANT, BRAKE FLUID. ANNUAL: REMOTE AIR CLEANER, HYDRAULIC OIL X 5 GAL., HYDRAULIC OIL FILTER 1 125.00 125.00T MR FIELD LABOR- MR 4 110.00 440.00 SUBTOTAL - FOR QUARTERLY PM SERVICE #4 694.55 *QUARTERLY SERVICE INCLUDES THE FOLLOWING: CHECK BATTERY FLUID LEVEL, CHECK BATTERY CABLE CONNECTIONS, GREASE BEARINGS/BUSHINGS & TRACTION CONTROL LINKAGE, CHECK STEERING CHAIN ADJUSTMENT, REPLACE AIR FILTER, CHANGE ENGINE OIL AND FILTER, CHANGE SPARK PLUGS, CHECK CONDITION OF TIRES & TIRE PRESSURE, TORQUE WHEEL LUGS, CHECK HYDRAULIC FLUID LEVEL, CLEAN ENGINE COOLING AREAS, INSPECT BRAKES, REPLACE FUEL FILTER. Page 1 Invoice Date 5/22/24 Invoice # 32380 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To CITY YARD ATTN: LUIS CEJA CM Wash Equipment WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment PO Box 1517 Lake Elsinore, CA 92531 PLEASE REMIT PAYMENT TO: PO BOX 1517, LAKE ELSINORE, CA 92531 PH: 951-471-5590 Item Description Qty Rate Amount **ADDITIONAL SERVICES PERFORMED ANNUALLY: REPLACE REMOTE AIR CLEANER, CHANGE HYDRAULIC SYSTEM OIL AND OIL FILTER. Page 2 $716.82$716.82 $694.55 $22.27$0.00 Invoice Date 5/22/24 Invoice # 32381 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To CITY YARD ATTN: DAN CHADD WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment P.O. BOX 1517 Lake Elsinore, CA 92531 Item Description Qty Rate Amount (FY 23/24) PM SERVICE ROSETTA CANYON PARK UTILITY CART : JOHN DEERE GATOR #1 Non-inventory AIR FILTER 1 41.75 41.75T MO MOTOR OIL 2 11.45 22.90T Non-inventory OIL FILTER 1 24.00 24.00T SPB CHAMPION 71 SPARK PLUG FOR B&S ENGINES 2 9.95 19.90T Non-inventory FUEL FILTER 1 22.00 22.00T MISC MISC FITTINGS/HARDWARE/SUPPLIES: GREASE, TRANSAXLE FLUID, BRAKE FLUID, QUARTERLY: CARBON CANISTER, FUEL FILTER 1 24.00 24.00T MR FIELD LABOR- MR 3 110.00 330.00 SUBTOTAL 484.55 *MONTHLY SERVICE INCLUDES THE FOLLOWING: GREASE BEARINGS/BUSHINGS, REPLACE AIR FILTER, CHANGE ENGINE OIL AND FILTER, CHANGE SPARK PLUGS, CHECK CONDITION OF TIRES & TIRE PRESSURE, TORQUE WHEEL LUGS, CHECK TRANSAXLE OIL LEVEL, CHECK OPERATION OF NEUTRAL GEAR SHIFT POSITION, CLEAN ENGINE COOLING AREAS, INSPECT BRAKES, CHECK BRAKE FLUID LEVEL Page 1 Invoice Date 5/22/24 Invoice # 32381 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To CITY YARD ATTN: DAN CHADD WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment P.O. BOX 1517 Lake Elsinore, CA 92531 Item Description Qty Rate Amount **ADDITIONAL SERVICES PERFORMED QUARTERLY: REPLACE CARBON CANISTER FILTER, ADJUST PARKING BRAKE, CHECK CONDITION & TENSION OF DRIVE BELT, CHECK CONDITION & TENSION OF STARTER-GENERATOR BELT, INSPECT FUEL LINES & CONNECTIONS, CLEAN PRIMARY-DRIVE CLUTCH, REPLACE FUEL FILTER. Page 2 $498.07$498.07 $484.55 $13.52$0.00 Invoice Date 5/22/24 Invoice # 32382 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To ROSETTA CANYON PARK CM Wash Equipment WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment PO Box 1517 Lake Elsinore, CA 92531 PLEASE REMIT PAYMENT TO: PO BOX 1517, LAKE ELSINORE, CA 92531 PH: 951-471-5590 Item Description Qty Rate Amount (FY 23/24) QUARTERLY PM SERVICE#4 ON RED TRAILER PRESSURE WASHER LOCATED AT ROSETTA CANYON PARK 3782 HONDA FILTER 11 HP & 13 HP (GX340 & GX390) 1 31.22 31.22T SPH SPARK PLUG FOR HONDA ENGINES GX160-390 1 9.95 9.95T MO MOTOR OIL 1 11.45 11.45T 1753 32oz PUMP OIL 1 21.00 21.00T MR FIELD LABOR/TRIP CHARGE 2 110.00 220.00 SUBTOTAL 293.62 PM SERVICE INCLUDES COMPLETE INSPECTION OF PRESSURE WASHER/FITTINGS/AIR PRESSURE IN TIRES/PM SERVICE WILL BE PERFORMED AT LOCATION WHERE EQUIPMENT IS LOCATED *ADDITIONAL PARTS/REPAIRS 1475 ST1500 SPRAY GUN 1 64.95 64.95T 1402 DELUXE MOLDED GRIP 48" ZINC PLATED LANCE 1 48.00 48.00T 1211 HANSEN SOCKET 1/4 FPT BRASS 1 15.00 15.00T 1193 HANSEN PLUG 3/8 MPT STEEL 1 9.00 9.00T $448.99$448.99 $430.57 $18.42$0.00 Invoice Date 5/22/24 Invoice # 32383 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To SUMMERLY PARK CM Wash Equipment WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment PO Box 1517 Lake Elsinore, CA 92531 PLEASE REMIT PAYMENT TO: PO BOX 1517, LAKE ELSINORE, CA 92531 PH: 951-471-5590 Item Description Qty Rate Amount (FY 23/24) QUARTERLY PM SERVICE#4 ON RED TRAILER PRESSURE WASHER LOCATED AT SUMMERLY PARK 3782 HONDA FILTER 11 HP & 13 HP (GX340 & GX390) 1 31.22 31.22T SPH SPARK PLUG FOR HONDA ENGINES GX160-390 1 9.95 9.95T MO MOTOR OIL 1 11.45 11.45T 1753 32oz PUMP OIL 1 21.00 21.00T MR FIELD LABOR/TRIP CHARGE 2 110.00 220.00 SUBTOTAL 293.62 PM SERVICE INCLUDES COMPLETE INSPECTION OF PRESSURE WASHER/FITTINGS/AIR PRESSURE IN TIRES/PM SERVICE WILL BE PERFORMED AT LOCATION WHERE EQUIPMENT IS LOCATED *ADDITIONAL PARTS/REPAIRS $300.06$300.06 $293.62 $6.44$0.00 Invoice Date 5/22/24 Invoice # 32384 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To SUMMERLY PARK WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment P.O. BOX 1517 Lake Elsinore, CA 92531 Item Description Qty Rate Amount (FY 23/24) QUARTERLY PM SERVICE#4 SUMMERLY PARK UTILITY CART : CUSHMAN HAULER Non-inventory AIR FILTER 1 41.75 41.75T MO MOTOR OIL 2 11.45 22.90T Non-inventory OIL FILTER 1 23.00 23.00T SPB CHAMPION 71 SPARK PLUG FOR B&S ENGINES 1 9.95 9.95T Non-inventory FUEL FILTER 1 22.00 22.00T MISC MISC FITTINGS/HARDWARE/SUPPLIES: GREASE, REAR AXLE FLUID, BRAKE FLUID. QUARTERLY: FUEL FILTER 1 24.00 24.00T MR FIELD LABOR- MR 3 110.00 330.00 SUBTOTAL 473.60 *MONTHLY SERVICE INCLUDES THE FOLLOWING: GREASE BEARINGS/BUSHINGS, REPLACE AIR FILTER, CHANGE ENGINE OIL AND FILTER, CHANGE SPARK PLUG, CHECK CONDITION OF TIRES & TIRE PRESSURE, TORQUE WHEEL LUGS, CLEAN ENGINE COOLING AREAS, CHECK OPERATION OF REVERSE WARNING ALARM, CHECK HEADLIGHTS AND TAILLIGHTS. **ADDITIONAL SERVICES PERFORMED QUARTERLY: CHECK REAR AXLE OIL LEVEL, INSPECT BRAKES, CHECK CONDITION OF BELTS & BELT TENSION, REPLACE FUEL FILTER. $486.17$486.17 $473.60 $12.57$0.00 Invoice Date 5/22/24 Invoice # 32385 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To CANYON HILLS PARK WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment P.O. BOX 1517 Lake Elsinore, CA 92531 Item Description Qty Rate Amount (FY 23/24) QUARTERLY PM SERVICE#4 CANYON HILLS PARK UTILITY CART : CUSHMAN HAULER Non-inventory AIR FILTER 1 41.75 41.75T MO MOTOR OIL 2 11.45 22.90T Non-inventory OIL FILTER 1 23.00 23.00T SPB CHAMPION 71 SPARK PLUG FOR B&S ENGINES 1 9.95 9.95T Non-inventory FUEL FILTER 1 22.00 22.00T MISC MISC FITTINGS/HARDWARE/SUPPLIES: GREASE, REAR AXLE FLUID, BRAKE FLUID. QUARTERLY: FUEL FILTER 1 24.00 24.00T MR FIELD LABOR- MR 3 110.00 330.00 SUBTOTAL 473.60 *MONTHLY SERVICE INCLUDES THE FOLLOWING: GREASE BEARINGS/BUSHINGS, REPLACE AIR FILTER, CHANGE ENGINE OIL AND FILTER, CHANGE SPARK PLUG, CHECK CONDITION OF TIRES & TIRE PRESSURE, TORQUE WHEEL LUGS, CLEAN ENGINE COOLING AREAS, CHECK OPERATION OF REVERSE WARNING ALARM, CHECK HEADLIGHTS AND TAILLIGHTS. **ADDITIONAL SERVICES PERFORMED QUARTERLY: CHECK REAR AXLE OIL LEVEL, INSPECT BRAKES, CHECK CONDITION OF BELTS & BELT TENSION, REPLACE FUEL FILTER. $486.17$486.17 $473.60 $12.57$0.00 Invoice Date 5/22/24 Invoice # 32386 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To CANYON HILLS PARK CM Wash Equipment WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment PO Box 1517 Lake Elsinore, CA 92531 PLEASE REMIT PAYMENT TO: PO BOX 1517, LAKE ELSINORE, CA 92531 PH: 951-471-5590 Item Description Qty Rate Amount (FY 23/24) QUARTERLY PM SERVICE#4 ON RED TRAILER PRESSURE WASHER LOCATED AT CANYON HILLS PARK 3782 HONDA FILTER 11 HP & 13 HP (GX340 & GX390) 1 31.22 31.22T SPH SPARK PLUG FOR HONDA ENGINES GX160-390 1 9.95 9.95T MO MOTOR OIL 1 11.45 11.45T 1753 32oz PUMP OIL 1 21.00 21.00T MR FIELD LABOR/TRIP CHARGE 2 110.00 220.00 SUBTOTAL 293.62 PM SERVICE INCLUDES COMPLETE INSPECTION OF PRESSURE WASHER/FITTINGS/AIR PRESSURE IN TIRES/PM SERVICE WILL BE PERFORMED AT LOCATION WHERE EQUIPMENT IS LOCATED *ADDITIONAL PARTS/REPAIRS $300.06$300.06 $293.62 $6.44$0.00 Invoice Date 5/22/24 Invoice # 32387 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL OF LAKE ELSINORE 130 MAIN ST LAKE ELSINORE, CA 92530 Ship To LAUNCH POINTE 32040 RIVERSIDE DR LAKE ELSINORE, CA 92530 LUIS CEJA CM Wash Equipment WO #PO #Terms Net 30 Due Date 6/21/24 Rep MR Ship Date 5/22/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment PO Box 1517 Lake Elsinore, CA 92531 PLEASE REMIT PAYMENT TO: PO BOX 1517, LAKE ELSINORE, CA 92531 PH: 951-471-5590 Item Description Qty Rate Amount (FY 23/24) QUARTERLY PM SERVICE#4 ON RED TRAILER PRESSURE WASHER LOCATED AT LAUNCH POINTE 3782 HONDA FILTER 11 HP & 13 HP (GX340 & GX390) 1 31.22 31.22T SPH SPARK PLUG FOR HONDA ENGINES GX160-390 1 9.95 9.95T MO MOTOR OIL 1 11.45 11.45T 1753 32oz PUMP OIL 1 21.00 21.00T MR FIELD LABOR/TRIP CHARGE 2 110.00 220.00 SUBTOTAL 293.62 PM SERVICE INCLUDES COMPLETE INSPECTION OF PRESSURE WASHER/FITTINGS/AIR PRESSURE IN TIRES/PM SERVICE WILL BE PERFORMED AT LOCATION WHERE EQUIPMENT IS LOCATED *ADDITIONAL PARTS/REPAIRS $300.06$300.06 $293.62 $6.44$0.00 Invoice Date 5/30/24 Invoice # 32388 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL OF LAKE ELSINORE 130 MAIN ST LAKE ELSINORE, CA 92530 Ship To LAUNCH POINTE 32040 RIVERSIDE DR LAKE ELSINORE, CA 92530 LUIS CEJA CM Wash Equipment WO #PO #Terms Net 30 Due Date 6/29/24 Rep MR Ship Date 5/30/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment PO Box 1517 Lake Elsinore, CA 92531 PLEASE REMIT PAYMENT TO: PO BOX 1517, LAKE ELSINORE, CA 92531 PH: 951-471-5590 Item Description Qty Rate Amount (MAY. FY 23/24) MONTHLY PM SERVICE WASH BAY - LAUNCH POINTE MISC MISC FITTINGS/HARDWARE/SUPPLIES 1 35.00 35.00T MR FIELD LABOR- MR 3.5 110.00 385.00 ADDITIONAL REPAIRS/SUPPLIES: WASH PAD: REMOVE GRATES, CLEAN INSIDE & REASSEMBLE VACUUM: INSPECT, CLEAN INSIDE, RINSE FILTER & REASSEMBLE WATER FILTRATION: DISASSEMBLE, CLEAN AND RINSE FILTERS & REASSEMBLE INSPECT ENTIRE SYSTEM INCLUDING PRESSURE PUMPS & SPOT FREE WATER SYSTEM *SALT ADDED ON A AS NEEDED BASIS. ADDITIONAL CHARGE WILL APPLY **ANY SUPPLIES OR ADDITIONAL REPAIRS WILL BE BROUGHT TO MANAGEMENT FOR APPROVAL BEFORE REPAIRS ARE PERFORMED. $423.06$423.06 $420.00 $3.06$0.00 Invoice Date 5/30/24 Invoice # 32389 Bill To ATTN: CARLA KHALIL FINANCE DEPARTMENT CITY HALL LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CA 92530 Ship To CITY YARD 521 N LANGSTAFF ST LAKE ELSINORE, CA 92530 CM Wash Equipment WO #PO #Terms Net 30 Due Date 6/29/24 Rep MR Ship Date 5/30/24 TotalBalance Due Subtotal Sales Tax (8.75%)Payments/Credits USD CM Wash Equipment PO Box 1517 Lake Elsinore, CA 92531 PLEASE REMIT PAYMENT TO: PO BOX 1517, LAKE ELSINORE, CA 92531 PH: 951-471-5590 Item Description Qty Rate Amount MAY (FY 23/24) MONTHLY PM SERVICE OF RMME2/R4TE1 WATER RECLAIM & FILTRATION EQUIPMENT/INSPECTION OF PRESSURE WASHER EQUIPMENT - WASH BAY CITY YARD FFS MISCELLANEOUS FASTENERS, FITTINGS, FILTERS, O-RINGS, SUPPLIES 1 38.00 38.00T 1753 32oz PUMP OIL 3 21.00 63.00T Non-inventory CMFB40 OIL SOCK 2 49.50 99.00T Non-inventory CMFB42 POLY FELT FILTER BAG 2 29.00 58.00T Non-inventory CMVFB05 STORAGE TANK FILTER BAG 1 29.00 29.00T MR FIELD LABOR 4 110.00 440.00 SUBTOTAL 727.00 ADDITIONAL PARTS/REPAIRS: 1822 QC 40040 NOZZLE 1 12.00 12.00T 1817 QC 25040 NOZZLE 1 12.00 12.00T $778.21$778.21 $751.00 $27.21$0.00 ([KLELW$QQXDO&RQWUDFWRU6HUYLFHV$JUHHPHQWGRF[3DJH $*5((0(17)25&2175$&7256(59,&(6 &0:DVK(TXLSPHQW 0DLQWHQDQFHRI:DVK6WDWLRQVDQG(TXLSPHQW 7KLV$JUHHPHQWIRU&RQWUDFWRU6HUYLFHVWKH³$JUHHPHQW´LVPDGHDQGHQWHUHGLQWRDVRI 6HSWHPEHUE\DQGEHWZHHQWKH&LW\RI/DNH(OVLQRUHDPXQLFLSDOFRUSRUDWLRQµµ&LW\ DQG&0:DVK(TXLSPHQWD/LPLWHG/LDELOLW\&R&RQWUDFWRU 5(&,7$/6 $ 7KH&LW\KDVGHWHUPLQHGWKDWLWUHTXLUHVWKHIROORZLQJ&RQWUDFWRUVHUYLFHV 0DLQWHQDQFHRI:DVK6WDWLRQVDQG(TXLSPHQWIRU&LW\ZLGH)DFLOLWLHV % &RQWUDFWRUKDVVXEPLWWHGWR&LW\DSURSRVDOGDWHG$XJXVWDWWDFKHG KHUHWR DV ([KLELW $ ³&RQWUDFWRU¶V 3URSRVDO´ DQG LQFRUSRUDWHGKHUHLQ WR SURYLGH FRQWUDFWRU VHUYLFHVWR&LW\SXUVXDQWWRWKHWHUPVRIWKLV$JUHHPHQW & &RQWUDFWRUSRVVHVVHVWKHVNLOOH[SHULHQFHDELOLW\EDFNJURXQGFHUWLILFDWLRQDQG NQRZOHGJHWRSHUIRUPWKHVHUYLFHVGHVFULEHGLQWKLV$JUHHPHQWRQWKHWHUPVDQGFRQGLWLRQV GHVFULEHGKHUHLQ ' &LW\GHVLUHVWRUHWDLQ&RQWUDFWRUWRSHUIRUPWKHVHUYLFHVDVSURYLGHGKHUHLQDQG &RQWUDFWRUGHVLUHVWRSURYLGHVXFKFRQWUDFWRUVHUYLFHVDVVHWIRUWKLQWKLV$JUHHPHQW $*5((0(17 6FRSHRI6HUYLFHV&RQWUDFWRUVKDOOSHUIRUPWKHVHUYLFHVGHVFULEHGLQ&RQWUDFWRU¶V 3URSRVDO([KLELW$&RQWUDFWRUVKDOOSURYLGHVXFKVHUYLFHVDWWKHWLPHSODFHDQGLQWKHPDQQHU VSHFLILHGLQ&RQWUDFWRU¶V3URSRVDOVXEMHFWWRWKHGLUHFWLRQRIWKH&LW\WKURXJKLWVVWDIIWKDWLWPD\ SURYLGHIURPWLPHWRWLPH 7LPHRI3HUIRUPDQFH D 7LPH RI (VVHQFH 7LPH LV RI WKH HVVHQFH LQ WKH SHUIRUPDQFHRI WKLV $JUHHPHQW7KHWLPHIRUFRPSOHWLRQRIWKHFRQWUDFWRUVHUYLFHVWREHSHUIRUPHGE\&RQWUDFWRULV DQHVVHQWLDOFRQGLWLRQRIWKLV$JUHHPHQW&RQWUDFWRUVKDOOSURVHFXWHUHJXODUO\DQGGLOLJHQWO\WKH FRQWUDFWRU VHUYLFHV FRQWHPSODWHG SXUVXDQW WR WKLV $JUHHPHQW DFFRUGLQJ WR WKH DJUHHG XSRQ SHUIRUPDQFHVFKHGXOHLQ&RQWUDFWRU¶V3URSRVDO([KLELW$ E 3HUIRUPDQFH6FKHGXOH&RQWUDFWRUVKDOOFRPPHQFHWKHVHUYLFHVSXUVXDQW WRWKLV$JUHHPHQWXSRQUHFHLSWRIDZULWWHQQRWLFHWRSURFHHGDQGVKDOOSHUIRUPDOOVHUYLFHVZLWKLQ WKHWLPHSHULRGVHVWDEOLVKHGLQWKH&RQWUDFWRU¶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¶VELOOVVKDOOEHVHJUHJDWHGE\SURMHFWWDVN LIDSSOLFDEOHVXFKWKDWWKH&LW\UHFHLYHVDVHSDUDWHDFFRXQWLQJIRUZRUNGRQHRQHDFKLQGLYLGXDO WDVNIRUZKLFK&RQWUDFWRUSURYLGHVVHUYLFHV&RQWUDFWRU¶VELOOVVKDOOLQFOXGHDEULHIGHVFULSWLRQRI WKHVHUYLFHVSHUIRUPHGWKHGDWHWKHVHUYLFHVZHUHSHUIRUPHGWKHQXPEHURIKRXUVVSHQWDQGE\ ZKRPDQGDGHVFULSWLRQRIDQ\UHLPEXUVDEOHH[SHQGLWXUHV&LW\VKDOOSD\&RQWUDFWRUQRODWHU WKDQIRUW\ILYHGD\VDIWHUUHFHLSWRIWKHPRQWKO\LQYRLFHE\&LW\VWDII %DFNJURXQG &KHFNV $W DQ\ WLPH GXULQJ WKH WHUP RI WKLV $JUHHPHQW WKH &LW\ UHVHUYHVWKHULJKWWRPDNHDQLQGHSHQGHQWLQYHVWLJDWLRQLQWRWKHEDFNJURXQGRI&RQWUDFWRU¶V SHUVRQQHO ZKR SHUIRUP ZRUN UHTXLUHG E\ WKLV $JUHHPHQW LQFOXGLQJ EXW QRW OLPLWHG WR WKHLU UHIHUHQFHV FKDUDFWHU DGGUHVV KLVWRU\ SDVW HPSOR\PHQW HGXFDWLRQ VRFLDO VHFXULW\ QXPEHU YDOLGDWLRQDQGFULPLQDORUSROLFHUHFRUGVIRUWKHSXUSRVHRIFRQILUPLQJWKDWVXFKSHUVRQQHODUH ODZIXOO\HPSOR\HGTXDOLILHGWRSURYLGHWKHVXEMHFWVHUYLFHRUSRVHDULVNWRWKHVDIHW\RISHUVRQV RUSURSHUW\LQDQGDURXQGWKHYLFLQLW\RIZKHUHWKHVHUYLFHVZLOOEHUHQGHUHGRU&LW\+DOO,IWKH&LW\ PDNHVDUHDVRQDEOHGHWHUPLQDWLRQWKDWDQ\RI&RQWUDFWRU¶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³0HWKRGRI3D\PHQW´KHUHLQ 3ODQV6WXGLHV'RFXPHQWV D 2ZQHUVKLSRI'RFXPHQWV$OOSODQVVWXGLHVGRFXPHQWVDQGRWKHUZULWLQJV SUHSDUHGE\DQGIRU&RQWUDFWRULWVRIILFHUVHPSOR\HHVDQGDJHQWVDQGVXEFRQWUDFWRUVLQWKH FRXUVH RI LPSOHPHQWLQJ WKLV $JUHHPHQW H[FHSW ZRUNLQJ QRWHSDG LQWHUQDO GRFXPHQWV VKDOO EHFRPHWKHSURSHUW\RIWKH&LW\XSRQSD\PHQWWR&RQWUDFWRUIRUVXFKZRUNDQGWKH&LW\VKDOO KDYH WKH VROH ULJKW WR XVH VXFK PDWHULDOV LQ LWV GLVFUHWLRQ ZLWKRXW IXUWKHU FRPSHQVDWLRQ WR &RQWUDFWRURUWRDQ\RWKHUSDUW\&RQWUDFWRUVKDOODW&RQWUDFWRU¶VH[SHQVHSURYLGHVXFKUHSRUWV SODQVVWXGLHVGRFXPHQWVDQGRWKHUZULWLQJVWR&LW\XSRQZULWWHQUHTXHVW&LW\VKDOOKDYHVROH GHWHUPLQDWLRQRIWKHSXEOLF¶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¶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¶V QDPH RU LQVLJQLD SKRWRJUDSKV UHODWLQJ WR SURMHFW IRU ZKLFK &RQWUDFWRU¶V VHUYLFHV DUH UHQGHUHGRUDQ\SXEOLFLW\SHUWDLQLQJWRWKH&RQWUDFWRU¶VVHUYLFHVXQGHUWKLV$JUHHPHQWLQDQ\ PDJD]LQHWUDGHSDSHUQHZVSDSHUWHOHYLVLRQRUUDGLRSURGXFWLRQRURWKHUVLPLODUPHGLXPZLWKRXW WKHSULRUZULWWHQFRQVHQWRI&LW\ 3DJH &RQWUDFWRU¶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¶VDGGUHVVLQGLFDWHGIRUUHFHLSWRIQRWLFHV LQWKLV$JUHHPHQW G :KHUH&LW\KDVUHDVRQWREHOLHYHWKDWVXFKUHFRUGVRUGRFXPHQWVPD\EH ORVWRUGLVFDUGHGGXHWRGLVVROXWLRQGLVEDQGPHQWRUWHUPLQDWLRQRI&RQWUDFWRU¶VEXVLQHVV&LW\ PD\E\ZULWWHQUHTXHVWE\DQ\RIWKHDERYHQDPHGRIILFHUVUHTXLUHWKDWFXVWRG\RIWKHUHFRUGV EHJLYHQWRWKH&LW\DQGWKDWWKHUHFRUGVDQGGRFXPHQWVEHPDLQWDLQHGLQ&LW\+DOO$FFHVVWR VXFKUHFRUGVDQGGRFXPHQWVVKDOOEHJUDQWHGWRDQ\SDUW\DXWKRUL]HGE\&RQWUDFWRU&RQWUDFWRU¶V UHSUHVHQWDWLYHVRU&RQWUDFWRU¶VVXFFHVVRULQLQWHUHVW ,QGHSHQGHQW&RQWUDFWRU D &RQWUDFWRU LV DQG VKDOO DW DOO WLPHV UHPDLQ DV WR WKH &LW\ D ZKROO\ LQGHSHQGHQW FRQWUDFWRU SXUVXDQW WR &DOLIRUQLD /DERU &RGH 6HFWLRQ 7KH SHUVRQQHO SHUIRUPLQJWKHVHUYLFHVXQGHUWKLV$JUHHPHQWRQEHKDOIRI&RQWUDFWRUVKDOODWDOOWLPHVEHXQGHU &RQWUDFWRU¶VH[FOXVLYHGLUHFWLRQDQGFRQWURO1HLWKHU&LW\QRUDQ\RILWVRIILFHUVHPSOR\HHVRU DJHQWV VKDOO KDYH FRQWURO RYHU WKH FRQGXFW RI &RQWUDFWRU RU DQ\ RI &RQWUDFWRU¶V RIILFHUV HPSOR\HHVRUDJHQWVH[FHSWDVVHWIRUWKLQWKLV$JUHHPHQW&RQWUDFWRUVKDOOQRWDWDQ\WLPHRU LQDQ\PDQQHUUHSUHVHQWWKDWLWRUDQ\RILWVRIILFHUVHPSOR\HHVRUDJHQWVDUHLQDQ\PDQQHU RIILFHUVHPSOR\HHVRUDJHQWVRIWKH&LW\&RQWUDFWRUVKDOOQRWLQFXURUKDYHWKHSRZHUWRLQFXU DQ\GHEWREOLJDWLRQRUOLDELOLW\ZKDWVRHYHUDJDLQVW&LW\RUELQG&LW\LQDQ\PDQQHU E 1RWZLWKVWDQGLQJDQ\RWKHUIHGHUDOVWDWHDQGORFDOODZVFRGHVRUGLQDQFHV DQGUHJXODWLRQVWRWKHFRQWUDU\DQGH[FHSWIRUWKHIHHVSDLGWR&RQWUDFWRUDVSURYLGHGLQWKH $JUHHPHQW&RQWUDFWRUDQGDQ\RILWVHPSOR\HHVDJHQWVDQGVXEFRQWUDFWRUVSURYLGLQJVHUYLFH XQGHUWKLV$JUHHPHQWVKDOOQRWTXDOLI\IRURUEHFRPHHQWLWOHGWRDQGKHUHE\DJUHHWRZDLYHDQ\ FODLPVWRDQ\FRPSHQVDWLRQEHQHILWRUDQ\LQFLGHQWRIHPSOR\PHQWE\&LW\LQFOXGLQJEXWQRW OLPLWHGWRHOLJLELOLW\WRHQUROOLQ3(56DVDQHPSOR\HHRI&LW\DQGHQWLWOHPHQWWRDQ\FRQWULEXWLRQ WREHSDLGE\&LW\IRUHPSOR\HUFRQWULEXWLRQDQGRUHPSOR\HHFRQWULEXWLRQVIRU3(56EHQHILWV 3(56(OLJLELOLW\,QGHPQLILFDWLRQ,QWKHHYHQWWKDW&RQWUDFWRURUDQ\HPSOR\HH DJHQW RU VXEFRQWUDFWRU RI &RQWUDFWRU SURYLGLQJ VHUYLFHV XQGHUWKLV $JUHHPHQW FODLPV RU LV GHWHUPLQHGE\DFRXUWRIFRPSHWHQWMXULVGLFWLRQRUWKH&DOLIRUQLD3XEOLF(PSOR\HHV5HWLUHPHQW 6\VWHP3(56WREHHOLJLEOHIRUHQUROOPHQWLQ3(56DVDQHPSOR\HHRIWKH&LW\&RQWUDFWRUVKDOO 3DJH LQGHPQLI\GHIHQGDQGKROGKDUPOHVV&LW\IRUWKHSD\PHQWRIDQ\HPSOR\HHDQGRUHPSOR\HU FRQWULEXWLRQV IRU 3(56 EHQHILWV RQ EHKDOI RI &RQWUDFWRU RU LWVHPSOR\HHV DJHQWV RU VXEFRQWUDFWRUVDVZHOODVIRUWKHSD\PHQWRIDQ\SHQDOWLHVDQGLQWHUHVWRQVXFKFRQWULEXWLRQV ZKLFKZRXOGRWKHUZLVHEHWKHUHVSRQVLELOLW\RI&LW\ ,QWHUHVWV RI &RQWUDFWRU &RQWUDFWRU LQFOXGLQJ SULQFLSDOV DVVRFLDWHV DQG SURIHVVLRQDOHPSOR\HHVFRYHQDQWVDQGUHSUHVHQWVWKDWLWGRHVQRWQRZKDYHDQ\LQYHVWPHQWRU LQWHUHVWLQUHDOSURSHUW\DQGVKDOOQRWDFTXLUHDQ\LQWHUHVWGLUHFWRULQGLUHFWLQWKHDUHDFRYHUHG E\WKLV$JUHHPHQWRUDQ\RWKHUVRXUFHRILQFRPHLQWHUHVWLQUHDOSURSHUW\RULQYHVWPHQWZKLFK ZRXOG EH DIIHFWHG LQ DQ\ PDQQHU RU GHJUHH E\ WKH SHUIRUPDQFH RI &RQWUDFWRU¶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¶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¶V RZQ FRVW DQG H[SHQVH VKDOO SURFXUHDQGPDLQWDLQIRUWKHGXUDWLRQRIWKHFRQWUDFWXQOHVVPRGLILHGE\WKH&LW\¶V5LVN0DQDJHU WKHIROORZLQJLQVXUDQFHSROLFLHV L :RUNHUV¶ &RPSHQVDWLRQ &RYHUDJH &RQWUDFWRU VKDOO PDLQWDLQ :RUNHUV¶ &RPSHQVDWLRQ ,QVXUDQFH DQG (PSOR\HU¶V /LDELOLW\ ,QVXUDQFH IRU KLVKHU HPSOR\HHVLQDFFRUGDQFHZLWKWKHODZVRIWKH6WDWHRI&DOLIRUQLD,QDGGLWLRQ&RQWUDFWRU VKDOOUHTXLUHHDFKVXEFRQWUDFWRUWRVLPLODUO\PDLQWDLQ:RUNHUV¶&RPSHQVDWLRQ,QVXUDQFH DQG(PSOR\HU¶V/LDELOLW\,QVXUDQFHLQDFFRUGDQFHZLWKWKHODZVRIWKH6WDWHRI&DOLIRUQLD IRUDOORIWKHVXEFRQWUDFWRU¶VHPSOR\HHV$Q\QRWLFHRIFDQFHOODWLRQRUQRQUHQHZDORIDOO :RUNHUV¶&RPSHQVDWLRQSROLFLHVPXVWEHUHFHLYHGE\WKH&LW\DWOHDVWWKLUW\GD\VSULRU WRVXFKFKDQJH7KHLQVXUHUVKDOODJUHHWRZDLYHDOOULJKWVRIVXEURJDWLRQDJDLQVW&LW\LWV RIILFHUVDJHQWVHPSOR\HHVDQGYROXQWHHUVIRUORVVHVDULVLQJIURPZRUNSHUIRUPHGE\ &RQWUDFWRUIRU&LW\,QWKHHYHQWWKDW&RQWUDFWRULVH[HPSWIURP:RUNHU¶V&RPSHQVDWLRQ ,QVXUDQFHDQG(PSOR\HU¶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³DQ\DXWR´1RHQGRUVHPHQWPD\ EHDWWDFKHGOLPLWLQJWKHFRYHUDJH LY 3URIHVVLRQDO /LDELOLW\ &RYHUDJH &RQWUDFWRU VKDOO PDLQWDLQ SURIHVVLRQDO HUURUV DQG RPLVVLRQV OLDELOLW\ LQVXUDQFH DSSURSULDWH IRU &RQWUDFWRU¶V SURIHVVLRQIRUSURWHFWLRQDJDLQVWFODLPVDOOHJLQJQHJOLJHQWDFWVHUURUVRURPLVVLRQVZKLFK PD\DULVHIURP&RQWUDFWRU¶VVHUYLFHVXQGHUWKLV$JUHHPHQWZKHWKHUVXFKVHUYLFHVDUH SURYLGHGE\WKH&RQWUDFWRURUE\LWVHPSOR\HHVVXEFRQWUDFWRUVRUVXE&RQWUDFWRUV7KH DPRXQWRIWKLVLQVXUDQFHVKDOOQRWEHOHVVWKDQRQHPLOOLRQGROODUVRQD FODLPVPDGHDQQXDODJJUHJDWHEDVLVRUDFRPELQHGVLQJOHOLPLWSHURFFXUUHQFHEDVLV E (QGRUVHPHQWV(DFKJHQHUDOOLDELOLW\DQGDXWRPRELOHOLDELOLW\LQVXUDQFH SROLF\VKDOOEHZLWKLQVXUHUVSRVVHVVLQJD%HVW¶VUDWLQJRIQROHVVWKDQ$9,,DQGVKDOOEHHQGRUVHG ZLWKWKHIROORZLQJVSHFLILFODQJXDJH L 1RWZLWKVWDQGLQJ DQ\ LQFRQVLVWHQW VWDWHPHQW LQ DQ\ UHTXLUHG LQVXUDQFH SROLFLHV RU DQ\ VXEVHTXHQW HQGRUVHPHQWV DWWDFKHG WKHUHWR WKH SURWHFWLRQ RIIHUHGE\DOOSROLFLHVH[FHSWIRU:RUNHUV¶&RPSHQVDWLRQVKDOOEHDUDQHQGRUVHPHQW ZKHUHE\LWLVSURYLGHGWKDWWKH&LW\DQGLWVRIILFHUVHPSOR\HHVVHUYDQWVYROXQWHHUVDQG DJHQWVDQGLQGHSHQGHQWFRQWUDFWRUVLQFOXGLQJZLWKRXWOLPLWDWLRQWKH&LW\0DQDJHUDQG &LW\$WWRUQH\DUHQDPHGDVDGGLWLRQDOLQVXUHGV$GGLWLRQDOLQVXUHGVVKDOOEHHQWLWOHGWR WKHIXOOEHQHILWRIDOOLQVXUDQFHSROLFLHVLQWKHVDPHPDQQHUDQGWRWKHVDPHH[WHQWDVDQ\ RWKHULQVXUHGVDQGWKHUHVKDOOEHQROLPLWDWLRQWRWKHEHQHILWVFRQIHUUHGXSRQWKHPRWKHU WKDQSROLF\OLPLWVWRFRYHUDJHV LL 7KLVSROLF\VKDOOEHFRQVLGHUHGSULPDU\LQVXUDQFHDVUHVSHFWVWKH &LW\LWVHOHFWHGRUDSSRLQWHGRIILFHUVRIILFLDOVHPSOR\HHVDJHQWVDQGYROXQWHHUV$Q\ LQVXUDQFHPDLQWDLQHGE\WKH&LW\LQFOXGLQJDQ\VHOILQVXUHGUHWHQWLRQWKH&LW\PD\KDYH VKDOOEHFRQVLGHUHGH[FHVVLQVXUDQFHRQO\DQGVKDOOQRWFRQWULEXWHZLWKLW LLL 7KLVLQVXUDQFHVKDOODFWIRUHDFKLQVXUHGDQGDGGLWLRQDOLQVXUHGDV WKRXJKDVHSDUDWHSROLF\KDGEHHQZULWWHQIRUHDFKH[FHSWZLWKUHVSHFWWRWKHOLPLWVRI OLDELOLW\RIWKHLQVXULQJFRPSDQ\ LY 7KHLQVXUHUZDLYHVDOOULJKWVRIVXEURJDWLRQDJDLQVWWKH&LW\LWV HOHFWHGRUDSSRLQWHGRIILFHUVRIILFLDOVHPSOR\HHVRUDJHQWV Y $Q\IDLOXUHWRFRPSO\ZLWKUHSRUWLQJSURYLVLRQVRIWKHSROLFLHVVKDOO QRW DIIHFW FRYHUDJH SURYLGHG WR WKH &LW\ LWV HOHFWHG RU DSSRLQWHG RIILFHUV RIILFLDOV HPSOR\HHVDJHQWVRUYROXQWHHUV 3DJH YL 7KH LQVXUDQFH SURYLGHG E\ WKLV 3ROLF\ VKDOO QRW EH VXVSHQGHG YRLGHGFDQFHOHGRUUHGXFHGLQFRYHUDJHRULQOLPLWVH[FHSWDIWHUWKLUW\GD\VZULWWHQ QRWLFHKDVEHHQUHFHLYHGE\WKH&LW\ F 'HGXFWLEOHVDQG6HOI,QVXUHG5HWHQWLRQV$Q\GHGXFWLEOHVRUVHOILQVXUHG UHWHQWLRQVPXVWEHGHFODUHGWRDQGDSSURYHGE\WKH&LW\$WWKH&LW\¶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¶ )HHV ,I HLWKHU SDUW\ WR WKLV $JUHHPHQW FRPPHQFHVDQ\OHJDODFWLRQDJDLQVWWKHRWKHUSDUW\DULVLQJRXWRIWKLV$JUHHPHQWWKHSUHYDLOLQJ SDUW\VKDOOEHHQWLWOHGWRUHFRYHULWVUHDVRQDEOHOLWLJDWLRQH[SHQVHVLQFOXGLQJFRXUWFRVWVH[SHUW ZLWQHVVIHHVGLVFRYHU\H[SHQVHVDQGDWWRUQH\V¶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¶V 3URSRVDOLVLQFRUSRUDWHGRQO\IRUWKHGHVFULSWLRQRIWKHVFRSHRIVHUYLFHVDQGRUWKHVFKHGXOHRI SHUIRUPDQFHDQGQRRWKHUWHUPVDQGFRQGLWLRQVIURPVXFKSURSRVDOVKDOODSSO\WRWKLV$JUHHPHQW XQOHVV VSHFLILFDOO\ DJUHHG WR LQ ZULWLQJ ,Q WKH HYHQW RI FRQIOLFW WKLV $JUHHPHQW VKDOO WDNH SUHFHGHQFHRYHUWKRVHFRQWDLQHGLQWKH&RQWUDFWRU¶V3URSRVDO $PHQGPHQWV7KLV$JUHHPHQWPD\EHPRGLILHGRUDPHQGHGRQO\E\DZULWWHQ GRFXPHQWH[HFXWHGE\ERWK&RQWUDFWRUDQG&LW\DQGDSSURYHGDVWRIRUPE\WKH&LW\$WWRUQH\ >6LJQDWXUHVRQQH[WSDJH@ 3DJH ,1:,71(66:+(5(2)WKHSDUWLHVKDYHFDXVHGWKLV$JUHHPHQWWREHH[HFXWHGRQWKH GDWHILUVWZULWWHQDERYH ³&,7<´ &,7<2)/$.((/6,125(DPXQLFLSDO FRUSRUDWLRQ &LW\0DQDJHU $77(67 &LW\&OHUN $33529('$672)250 &LW\$WWRUQH\ $VVLVWDQW&LW\0DQDJHU ³&2175$&725´ &0:DVK(TXLSPHQWD/LPLWHG/LDELOLW\&R %\ 0LFKDHO5RVH ,WVůŝĐŬŽƌƚĂƉŚĞƌĞƚŽĞŶƚĞƌƚĞǆƚ͘ $WWDFKPHQWV([KLELW$±&RQWUDFWRU¶V3URSRVDO ([KLELW%±/LVWRI6XEFRQWUDFWRUV (;+,%,7$ (;+,%,7$ &2175$&725¶6352326$/ >$77$&+('@ (;+,%,7% (;+,%,7% /,672)68%&2175$&7256 >$77$&+('@ CITY OF LAKE ELSINORE TO BE POSTED IN A CONSPICUOUS PLACE Business Name: Business Location: Owner Name(s): BUSINESS LICENSE NO. Issue Date: Description: Expiration Date: BUSINESS LICENSE THIS IS YOUR LICENSE • NOT TRANSFERABLE 534 THIRD ST Business Type: LAKE ELSINORE, CA 92530 CM WASH EQUIPMENT CONSOLIDATED WASH INDUSTRIES, LLC 534 THIRD ST LAKE ELSINORE, CA 92530 This business license is issuedfor revenue purposes only anddoes not grant authorization to operate a business. This business license is issuedwithout verificationthat the holder is subject to or exempted from licensing by the state, county, federal government, or any other governmental agency. Administrative Services - Licensing 130 South Main Street, Lake Elsinore, CA 92530 PH (951) 674-3124 CM WASH EQUIPMENT MICHAEL ROSE RETAIL/GENERAL-MISC. PRESSURE WASHER SALES & SERVICE 025257 9/1/2022 8/31/2023 Starting January 1, 2021, Assembly Bill 1607 requires the prevention of gender-based discrimination of business establishments. A full notice is available in English or other languages by going to: https://www.dca.ca.gov/publications/