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2017 06 06 CC Joint with HA PACKETHOUSING AUTHORITY 1 JUNE 6, 2017 SPECIAL MEETING NOTICE AND CALL OF SPECIAL MEETING OF THE LA QUINTA HOUSING AUTHORITY TO THE MEMBERS OF THE HOUSING AUTHORITY OF THE CITY OF LA QUINTA AND TO THE CITY CLERK/AUTHORITY SECRETARY: NOTICE IS HEREBY GIVEN that a special meeting of the Housing Authority of the City of La Quinta is hereby called to be held on June 6, 2017 commencing with at 4:00 p.m. at La Quinta City Hall, 78-495 Calle Tampico, La Quinta, California. CONSENT CALENDAR 1. APPROVE MINUTES OF APRIL 18, 2017 2. APPROVE MINUTES OF MAY 2, 2017 3. ADOPT A RESOLUTION APPROVING THE INVESTMENT OF HOUSING AUTHORITY MONIES IN THE LOCAL AGENCY INVESTMENT FUND IN THE STATE TREASURY PURSUANT TO GOVERNMENT CODE SECTION 16429.1 [RESOLUTION NO. HA 2017-001] BUSINESS SESSION 1. INTERVIEWS AND APPOINTMENTS OF RESIDENTS TO VARIOUS CITY BOARDS AND COMMISSIONS AND A CITY REPRESENTATIVE TO THE PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION 2. APPROVE THE RELOCATION PLAN FOR WASHINGTON STREET APARTMENTS CONTINGENT UPON THE HOUSING AUTHORITY APPROVING THE AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT AND ASSOCIATED SUMMARY REPORT STUDY SESSION 1. FISCAL YEAR 2017/18 PROPOSED BUDGET HOUSING AUTHORITY 2 JUNE 6, 2017 SPECIAL MEETING PUBLIC HEARINGS 1. ADOPT RESOLUTIONS APPROVING AN AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT AND THE ASSOCIATED SUMMARY REPORT BETWEEN THE LA QUINTA HOUSING AUTHORITY AND COACHELLA VALLEY HOUSING COALITION TO PURCHASE PROPERTY LOCATED AT THE SOUTHEAST CORNER OF HIDDEN RIVER ROAD AND WASHINGTON STREET FOR THE PURPOSE OF REHABILITATING, CONSTRUCTING AND OPERATING AFFORDABLE RENTAL HOUSING [RESOLUTION NO. 2017-015 AND RESOLUTION NO. HA 2017-002] Dated: June 2, 2017 /s/ Kathleen Fitzpatrick Kathleen Fitzpatrick, Chairperson Attest: ______________________________ Susan Maysels Housing Authority Secretary DECLARATION OF POSTING I, Susan Maysels, La Quinta Housing Authority Secretary, do hereby declare that the foregoing notice for the Special La Quinta Housing Authority meeting of June 6, 2017, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111 on June 2, 2017. DATED: June 2, 2017 Susan Maysels, Authority Secretary La Quinta Housing Authority CITY COUNCIL AGENDA 1 JUNE 6, 2017 HOUSING AUTHORITY AGENDA – SPECIAL MEETING AGENDA JOINT MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta REGULAR CITY COUNCIL MEETING ON TUESDAY, JUNE 6, 2017 3:00 P.M. CLOSED SESSION | 4:00 P.M. OPEN SESSION SPECIAL HOUSING AUTHORITY MEETING ON TUESDAY, JUNE 6, 2017, AT 4:00 P.M. CALL TO ORDER – CITY COUNCIL ROLL CALL: Councilmembers: Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the City Council on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. The City Council values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CONFIRMATION OF AGENDA – CITY COUNCIL CLOSED SESSION 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT AVENIDA MONTEZUMA AND EISENHOWER DRIVE ADJACENT TO THE SOUTHWEST SIDE OF FRANCIS HACK PARK (APN: 773-094-014) CITY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER NEGOTIATING PARTIES: MARSHAL HUGHES UNDER CONSIDERATION: PRICE AND TERMS OF PAYMENT City Council and Housing Authority agendas and staff reports are available on the City’s web page: www.laquintaca.gov CITY COUNCIL AGENDA 2 JUNE 6, 2017 HOUSING AUTHORITY AGENDA – SPECIAL MEETING 2. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: CHRIS ESCOBEDO, DIRECTOR OF COMMUNITY RESOURCES; AND EMPLOYEE ORGANIZATION: LA QUINTA CITY EMPLOYEES ASSOCIATION 3. PERFORMANCE EVALUATION PURSUANT TO GOVERNMENT CODE SECTION 54957, COUNCIL APPOINTED POSITION – CITY ATTORNEY RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. REPORT ON ACTIONS(S) TAKEN IN CLOSED SESSION CALL TO ORDER – HOUSING AUTHORITY ROLL CALL: Authority Members: Evans, Peña, Radi, Sanchez, Chairperson Fitzpatrick VERBAL ANNOUNCEMENT – AB 23 [AUTHORITY SECRETARY] CONFIRMATION OF AGENDA – HOUSING AUTHORITY PLEDGE OF ALLEGIANCE – CITY COUNCIL AND HOUSING AUTHORITY PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – CITY COUNCIL AND HOUSING AUTHORITY At this time, members of the public may address the City Council and Housing Authority on any matter not listed on the agenda. Please complete a “Request to Speak” form and limit your comments to three minutes. The City Council and Housing Authority values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – CITY COUNCIL 1. DESIGN AND DEVELOPMENT DIRECTOR TIMOTHY JONASSON’S RETIREMENT CEREMONY 2. SILVERROCK DEVELOPMENT COMPANY’S GOLF COURSE REALIGNMENT – PROJECT UPDATE CITY COUNCIL AGENDA 3 JUNE 6, 2017 HOUSING AUTHORITY AGENDA – SPECIAL MEETING CONSENT CALENDAR – CITY COUNCIL NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. APPROVE MINUTES OF MAY 16, 2017 9 2. EXCUSE ABSENCES FOR COMMISSIONERS MILLS AND TURBOW FROM THE MAY 10, 2017 FINANCIAL ADVISORY COMMISSION MEETING AND COMMISSIONER WRIGHT FROM THE MAY 23, 2017 PLANNING COMMISSION MEETING 19 3. APPROVE FISCAL YEAR 2017/18 FINANCIAL ADVISORY COMMISSION WORK PLAN 21 4. ADOPT RESOLUTIONS TO 1) APPROVE PRELIMINARY 2017/18 ENGINEER’S ANNUAL REPORT FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1, AND 2) DECLARE INTENT TO LEVY ANNUAL ASSESSMENTS FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 [RESOLUTION NOs. 2017-019 AND 2017-020] 23 5. ADOPT A RESOLUTION TO APPROVE THE FISCAL YEAR 2017/18 INVESTMENT POLICY [RESOLUTION NO. 2017-021] 53 6. ADOPT A RESOLUTION TO EXTEND TIME TO COMPLETE ON-SITE IMPROVEMENTS FOR CAPISTRANO RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 31910) LOCATED ON THE WEST SIDE OF MONROE STREET APPROXIMATELY 1,300 FEET NORTH OF AVENUE 58 [RESOLUTION NO. 2017-022] 105 7. ADOPT A RESOLUTION GRANTING APPROVAL OF FINAL TRACT MAP AND SUBDIVISION IMPROVEMENT AGREEMENTS ASSOCIATED WITH TRACT MAP NO. 33597, THE ESTATE COLLECTION AT CORAL MOUNTAIN, LOCATED AT THE SOUTHWEST CORNER OF MADISON STREET AND AVENUE 60 [RESOLUTION NO. 2017-023] 113 8. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH OMNI- MEANS, LTD. TO PREPARE ENVIRONMENTAL COMPLIANCE AND RIGHT-OF-WAY DOCUMENTS, PLANS, SPECIFICATIONS AND ENGINEER’S ESTIMATE FOR THE VILLAGE COMPLETE STREETS – A ROAD DIET PROJECT NO. 2015-03 143 9. ADOPT ORDINANCE NO. 558 ON SECOND READING AMENDING TITLE 193 CITY COUNCIL AGENDA 4 JUNE 6, 2017 HOUSING AUTHORITY AGENDA – SPECIAL MEETING 11 OF THE LA QUINTA MUNICIPAL CODE, SECTIONS 11.90.040, 11.90.050, 11.92.040, AND 11.92.050 RELATING TO COLLECTION OF FEES AND FINES FOR REPEAT FALSE ALARMS 10. ADOPT ORDINANCE NO. 559 ON SECOND READING REVISING SEVERAL CHAPTERS OF TITLE 12 OF THE LA QUINTA MUNICIPAL CODE RELATED TO VEHICLES AND TRAFFIC 203 11. ADOPT A RESOLUTION TO APPROVE THE INVESTMENT OF HOUSING AUTHORITY MONIES IN THE LOCAL AGENCY INVESTMENT FUND IN THE STATE TREASURY PURSUANT TO GOVERNMENT CODE SECTION 16429.1 [RESOLUTION NO. 2017-024] 251 12. APPROVE DEMAND REGISTERS DATED MAY 12, 19, AND 26, 2017 255 CONSENT CALENDAR – HOUSING AUTHORITY NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. APPROVE MINUTES OF APRIL 18, 2017 278 2. APPROVE MINUTES OF MAY 2, 2017 281 3. ADOPT A RESOLUTION APPROVING THE INVESTMENT OF HOUSING AUTHORITY MONIES IN THE LOCAL AGENCY INVESTMENT FUND IN THE STATE TREASURY PURSUANT TO GOVERNMENT CODE SECTION 16429.1 [RESOLUTION NO. HA 2017-001] 283 BUSINESS SESSION – CITY COUNCIL AND HOUSING AUTHORITY 1. City Council: APPROVE THIRD ROUND COMMUNITY SERVICES GRANTS FOR 2016/17 287 2 City Council and Housing Authority: INTERVIEWS AND APPOINTMENTS OF RESIDENTS TO VARIOUS CITY BOARDS AND COMMISSIONS AND A CITY REPRESENTATIVE TO THE PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION 295 3. City Council and Housing Authority: APPROVE THE RELOCATION PLAN FOR WASHINGTON STREET APARTMENTS CONTINGENT UPON THE HOUSING AUTHORITY APPROVING THE AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT AND ASSOCIATED SUMMARY REPORT 299 CITY COUNCIL AGENDA 5 JUNE 6, 2017 HOUSING AUTHORITY AGENDA – SPECIAL MEETING STUDY SESSION – CITY COUNCIL AND HOUSING AUTHORITY 1.City Council: RECEIVE AND FILE 2017 ANNUAL REPORT ON POLICE SERVICES BY MATRIX CONSULTING GROUP 319 2.City Council and Housing Authority: FISCAL YEAR 2017/18 PROPOSED BUDGET 389 PUBLIC HEARINGS – CITY COUNCIL AND HOUSING AUTHORITY – 5:00 P.M. For all Public Hearings on the agenda, a completed “Request to Speak” form must be filed with the City Clerk prior to consideration of that item. A person may submit written comments to City Council and Housing Authority before a public hearing or appear in support or opposition to the approval of a project(s). If you challenge a project(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondence delivered to the City at, or prior to the public hearing. 1.City Council and Housing Authority: ADOPT RESOLUTIONS APPROVING AN AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT AND THE ASSOCIATED SUMMARY REPORT BETWEEN THE LA QUINTA HOUSING AUTHORITY AND COACHELLA VALLEY HOUSING COALITION TO PURCHASE PROPERTY LOCATED AT THE SOUTHEAST CORNER OF HIDDEN RIVER ROAD AND WASHINGTON STREET FOR THE PURPOSE OF REHABILITATING, CONSTRUCTING AND OPERATING AFFORDABLE RENTAL HOUSING [RESOLUTION NO. 2017-025 AND RESOLUTION NO. HA 2017-002] 403 2.City Council: ADOPT A RESOLUTION TO APPROVE A TIME EXTENSION FOR SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762, EXTENSION 7) FOR A 208-UNIT SENIOR LIVING COMMUNITY LOCATED AT THE NORTHEAST CORNER OF WASHINGTON STREET AND AVENUE 50 [RESOLUTION NO. 2017-026] 647 DEPARTMENTAL REPORTS – CITY COUNCIL 1. CITY MANAGER A. UPCOMING EVENTS AND CITY COUNCIL CALENDAR 759 B. ANNUAL CITY MANAGER PERFORMANCE EVALUATION 763 2. CITY ATTORNEY 3. CITY CLERK 4. COMMUNITY RESOURCES 5. DESIGN AND DEVELOPMENT - WASHINGTON STREET AND EISENHOWER DRIVE ENHANCED DRAINAGE IMPROVEMENTS 765 CITY COUNCIL AGENDA 6 JUNE 6, 2017 HOUSING AUTHORITY AGENDA – SPECIAL MEETING 6. FACILITIES COUNCIL AND AUTHORITY MEMBERS’ ITEMS REPORTS AND INFORMATIONAL ITEMS – CITY COUNCIL 1. CVAG COACHELLA VALLEY CONSERVATION COMMISSION (Evans) 2. CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE (Evans) 3. CVAG EXECUTIVE COMMITTEE (Evans) 4. EAST VALLEY COALITION (Evans) 5. GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU (Evans) 6. LEAGUE OF CALIFORNIA CITIES DELEGATE (Evans) 7. COACHELLA VALLEY WATER DISTRICT POLICY COMMITTEE (Evans) 8. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (Evans) 9. ECONOMIC DEVELOPMENT SUBCOMMITTEE (Evans & Radi) 10. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Fitzpatrick) 11. COACHELLA VALLEY MOUNTAINS CONSERVANCY (Fitzpatrick) 12. CHAMBER OF COMMERCE INFO EXCHANGE COMMITTEE (Fitzpatrick) 13. DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick and Radi) 14. COACHELLA VALLEY UNIFIED SCHOOL DISTRICT COMMITTEE (Fitzpatrick and Peña) 15. CANNABIS AD HOC COMMITTEE (Peña and Sanchez) 16. CVAG PUBLIC SAFETY COMMITTEE (Peña) 17. CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE (Peña) 18. JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY (Peña) 19. CVAG TRANSPORTATION COMMITTEE (Radi) 20. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) (Radi) 21. SUNLINE TRANSIT AGENCY (Radi) 22. DESERT SANDS SCHOOL DISTRICT COMMITTEE (Radi and Sanchez) 23. ANIMAL CAMPUS COMMISSION (Sanchez) 24. IID ENERGY CONSUMERS’ ADVISORY COMMITTEE (Sanchez) 25. PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION MINUTES DATED MAY 17, 2017 769 26. PLANNING COMMISSION MINUTES DATED APRIL 11, 2017 771 27. HOUSING COMMISSION MINUTES DATED APRIL 12, 2017 775 ADJOURNMENT – CITY COUNCIL AND HOUSING AUTHORITY ********************************* The next regular meeting of the City Council will be held on June 20, 2017 commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. at the City Hall Council Chamber, 78-495 Calle Tampico, La Quinta, California 92253. CITY COUNCIL AGENDA 7 JUNE 6, 2017 HOUSING AUTHORITY AGENDA – SPECIAL MEETING The next regular meeting of the La Quinta Housing Authority will be held on July 18, 2017, at 4:00 p.m. at the City Hall Council Chamber, 78-495 Calle Tampico, La Quinta, California 92253. DECLARATION OF POSTING I, Susan Maysels, City Clerk, of the City of La Quinta, do hereby declare that the foregoing Agenda for the Joint La Quinta City Council and Housing Authority meeting was posted on the City’s website, near the entrance to the Council Chambers at 78- 495 Calle Tampico, and the bulletin boards at the Stater Brothers Supermarket at 78- 630 Highway 111, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on June 2, 2017. DATED: June 2, 2017 SUSAN MAYSELS, City Clerk / Authority Secretary City of La Quinta, California Public Notices  The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk’s office at 777-7103, twenty- four (24) hours in advance of the meeting and accommodations will be made.  If special electronic equipment is needed to make presentations to the City Council, arrangements should be made in advance by contacting the City Clerk’s office at 777- 7103. A one (1) week notice is required.  If background material is to be presented to the Councilmembers during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting.  Any writings or documents provided to a majority of the City Council regarding any item(s) o n t h i s a g e n d a w i l l b e m a d e a v a i l a b l e f o r p u b l i c i n s p e c t i o n a t t h e C o m m u n i t y Development counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. 8 CITY COUNCIL MINUTES Page 1 of 10 MAY 16, 2017 CITY COUNCIL MINUTES TUESDAY, MAY 16, 2017 A regular meeting of the La Quinta City Council was called to order at 3:30 p.m. by Mayor Evans. PRESENT: Councilmembers Fitzpatrick, Peña, Sanchez, Mayor Evans ABSENT: Mayor Pro Tem Radi MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to excuse Mayor Pro Tem Radi’s absence. Motion passed: ayes 4, absent 1 (Radi). PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA City Manager Spevacek requested the following changes to the agenda: Introduce new staff members and show a video of the Silverrock golf course realignment construction progress under the Announcements, Presentations and Written Communications portion of the meeting. Continue Consent Calendar Item No. 11; he explained RJ Mayer, applicant and property owner, submitted a written request for a two-week continuation (the applicant’s request dated May 16, 2017 is on file in the Clerk’s Office). Continue Study Session Item No. 1 at the request of Riverside County until a county representative could attend the Council meeting. Council concurred and confirmed the agenda as amended. CLOSED SESSION 1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED ON HIGHWAY 111 EAST OF DUNE PALMS (APN 600-020-053) CITY NEGOTIATOR: FRANK J. SPEVACEK, CITY MANAGER PROPERTY OWNER: CITY OF LA QUINTA UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT AND/OR DISPOSITION OF THE PROPERTY IDENTIFIED COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:34 P.M. CONSENT CALENDAR ITEM NO. 1 9 CITY COUNCIL MINUTES Page 2 of 10 MAY 16, 2017 MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:01 P.M. WITH ALL MEMBERS PRESENT EXCEPT COUNCILMEMBER RADI REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported no actions were taken in Closed Session that require reporting pursuant to Government Code section 54957.1 (Brown Act). PLEDGE OF ALLEGIANCE Councilmember Peña led the audience in the pledge of allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: Mr. Mark Johnson, La Quinta – introduced himself and said the La Quinta resident golfers (LQ Golfers) provided to Council verbal and written comments on tee times and green fees at the March 21, 2017 Study Session item regarding the Silverrock development. Additional verbal and written comments were provided on the proposed Covenants and Amendment No. 2 to Purchase, Sale, and Development Agreement for the Silverrock development at the April 18, 2017, Business Session item. He noted the LQ Golfers were disappointed to find out that the covenants were recorded exactly as originally proposed and the amendments suggested by the LQ Golfers were not adequately considered. He asked the Council to listen, acknowledge, and respond to the La Quinta residents; and to consider the feedback of the LQ Golfers who frequently utilize the golf course, have decades of golf experience, and aim to maintain and improve the residents’ golf privileges. He expressed his personal disappointment as he has invested considerable time and resources in trying to make La Quinta a better community through his service on the Advisory Committee, the Community Services Commission, and Vote “Yes on Measure G” Committee. He said the LQ Golfers were excited to work with the Robert Green Development Co. (RGDC) which has been very responsive to their inquiries. He requested that Council create an Ad-hoc Committee comprised of Councilmembers, LQ Golfers, and representatives of the RGDC to review the detailed comments provided by the LQ Golfers on the Silverrock development covenants and bring appropriate changes to Council for consideration. PUBLIC SPEAKER: Mr. James R. Paul, La Quinta – introduced himself and commended Council for dedicating their time and service to the City, and for a job well done. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. INTRODUCE NEW CITY STAFF City Manager Spevacek introduced Senior Planner Cheri Flores with the Planning Division and Office Assistant Mirta Lerma with the Design and Development Department. 10 CITY COUNCIL MINUTES Page 3 of 10 MAY 16, 2017 2. SILVERROCK DEVELOPMENT COMPANY’S GOLF COURSE REALIGNMENT UPDATE Facilities Director Howlett presented a video showing the construction progress on the Silverrock golf course realignment project. PUBLIC SPEAKER: Randy Duncan, General Manager SilverRock Resort Golf Course – introduced himself and provided Council with an update on staff’s efforts to ensure the La Quinta residents are aware of the current construction and the reduced golf rates to compensate for the temporary inconvenience until the golf course realignment is completed. CONSENT CALENDAR 1. APPROVE MINUTES OF MAY 2, 2017 2. APPROVE CHANGE ORDER NO. 1 TO CONTRACT WITH HORIZON LIGHTING, INC. TO EXTEND CITYWIDE LIGHTING MAINTENANCE SERVICES FOR ONE YEAR 3. APPROVE CHANGE ORDER NO. 2 TO CONTRACT WITH CONSERVE LANDCARE, INC. TO EXTEND LANDSCAPE MAINTENANCE SERVICES FOR ONE YEAR AND INCREASE CONTRACT AMOUNT 4. APPROVE CHANGE ORDER NO. 2 TO CONTRACT WITH CONSERVE LANDCARE, INC. TO EXTEND PARK LANDSCAPE MAINTENANCE SERVICES FOR ONE YEAR 5. APPROVE AMENDMENT NO. 1 TO THE CONTRACT WITH NELSEN’S JANITORIAL SERVICE FOR JANITORIAL SERVICES EXTENDING THE TERM ONE YEAR AND INCREASING SERVICES AND THE CONTRACT AMOUNT 6. APPROVE DEMAND REGISTERS DATED APRIL 28 AND MAY 5, 2017 7. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED JANUARY 31 AND FEBRUARY 28, 2017 8. ACCEPT ON-SITE IMPROVEMENTS ASSOCIATED WITH THE RESIDENCE CLUB AT PGA WEST RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 31627) LOCATED AT THE SOUTHEAST CORNER OF AVENUE 54 AND PGA BOULEVARD 9. ADOPT A RESOLUTION GRANTING CONDITIONAL APPROVAL OF FINAL PARCEL MAP NO. 36836 ASSOCIATED WITH THE J. PAUL COMMERCIAL BUILDING LOCATED AT THE NORTHWEST CORNER OF DUNE PALMS ROAD AND CORPORATE CENTRE DRIVE 11 CITY COUNCIL MINUTES Page 4 of 10 MAY 16, 2017 10. APPROVE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH TRAFFEX ENGINEERS, INC. FOR CONTRACT TRAFFIC ENGINEER SERVICES 11. pulled at applicant’s request >>> ADOPT A RESOLUTION FOR THE FIFTH EXTENSION OF CONDITIONAL USE PERMIT 2007-105 AND SITE DEVELOPMENT PERMIT 2006-875, AND THE FIRST EXTENSION OF TENTATIVE PARCEL MAP 35088 LOCATED AT THE NORTHEAST CORNER OF WASHINGTON STREET AND FRED WARING DRIVE 12 ADOPT RESOLUTION REQUESTING COUNTY OF RIVERSIDE PLACE COLLECTION COSTS FOR SOLID WASTE HANDLING SERVICES AT SINGLE-FAMILY DWELLINGS ON TAX ROLLS 13. APPROVE AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH MICHAEL BAKER INTERNATIONAL TO PREPARE PLANS, SPECIFICATIONS AND ENGINEER’S ESTIMATE FOR THE EISENHOWER DRIVE RETENTION BASIN IMPROVEMENTS 14. APPROVE DECLARATION OF SURPLUS 15. APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH LANCE, SOLL & LUNGHARD, LLP FOR ACCOUNTING SERVICES Councilmembers discussed the level of service and satisfaction expected of the maintenance services agreements for citywide lighting and landscaping; additional janitorial services included in the agreement extension; ensuring that landscaping is included along Eisenhower Drive, to enhance the area; the need to identify the drainage impacts for Eisenhower Drive before landscaping options can be considered; and ensuring the construction of Eisenhower Drive is scheduled during the off-season. MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to approve the Consent Calendar as amended, with Item Nos. 9 and 12 adopting Resolution Nos. 2017-017 and 2017-018 respectively. Motion passed: ayes 4, absent 1 (Radi). BUSINESS SESSION 1. APPROVE SETTLEMENT AGREEMENT AND MUTUAL RELEASE, AND RELATED APPURTENANCE AGREEMENTS, FOR ALVERIZ ET AL. V. CITY OF LA QUINTA ET AL., AND BARTON ET AL. V. CITY OF LA QUINTA ET AL., RIVERSIDE COUNTY SUPERIOR COURT, CASE NOS. PSC 1503161 AND PSC 1505200 City Attorney Ihrke presented the staff report, which is on file in the Clerk’s Office. 12 CITY COUNCIL MINUTES Page 5 of 10 MAY 16, 2017 MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to approve Settlement Agreement and Mutual Release, Appurtenance Agreement (Dunes Golf Course/Haciendas), and Appurtenance Agreement (Lower Cove), substantially in forms attached; and to authorize the City Manager to execute agreements on behalf of the City, accept non-substantive corrections to agreements, and direct implementing actions pursuant to the settlement. Motion passed: ayes 4, absent 1 (Radi). 2. INTRODUCE FOR FIRST READING AN ORDINANCE REVISING SEVERAL CHAPTERS OF TITLE 12 OF THE LA QUINTA MUNICIPAL CODE RELATED TO VEHICLES AND TRAFFIC [ORDINANCE NO. 559] Principal Engineer Wimmer presented the staff report, which is on file in the Clerk’s Office. Councilmembers discussed the proposed code changes and asked clarifying questions of staff regarding Section 12.60.010 (Establishment); Chapter 12.60 Loading Zones; Section 12.08.070 (Traffic engineer – Duties); Section 12.16.070 (Installation at intersection – Require where); Chapter 12.32 Parking; Chapter 12.69 Golf Carts; Section 12.56.030 (Truck routes – Exemptions); Section 1.09.020 (Authority and fines); Section 1.09.030 (Failure to pay fines); Section 1.01.250 (Vialations public nuisances); and Section 1.01.200 (Violation – Infraction). MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/Peña to take up Ordinance No. 559 by title and number only and waive further reading. Motion passed: ayes 4, absent 1 (Radi). Deputy City Clerk Radeva read the following title of Ordinance No. 559 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SEVERAL CHAPTERS OF THE MUNICIPAL CODE TITLE 12 AND DELETING CERTAIN SECTIONS OF TITLE 12 RELATING TO VEHICLES AND TRAFFIC MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/Peña to introduce at first reading Ordinance No. 559 as recommended. Motion passed: ayes 4, absent 1 (Radi). 3. APPROVE SILVERROCK RESORT 2017/18 ANNUAL PLAN Facilities Director Howlett presented the staff report, which is on file in the Clerk’s Office. Councilmembers discussed the golf carts’ GPS system and its benefits and capabilities; Silverrock’s proposed marketing budget and its correlation with the City’s branding efforts; modifying Silverrock’s model of advertising to incorporate the future home of the Montage brand; metrics on golf patrons’ profile; golf course realignment and remodel; two percent capital reserve; possibility of utilizing solar power to offset some 13 CITY COUNCIL MINUTES Page 6 of 10 MAY 16, 2017 of the operational costs in the future; ability for residents to book tee times starting at 5:00 a.m. daily as of May 1; and temporary golf clubhouse. Council directed staff to schedule the following items for Council’s consideration: 1) the increase of the golf rates when the realignment is completed and the golf course reopens in November; 2) the review of the residents’ golf rules, process, fees, and timing; and 3) to discuss the formation of an Ad-hoc Golf Advisory Committee to assist with the review of the residents’ golfer benefits. PUBLIC SPEAKER: Mr. Mark Johnson, La Quinta – introduced himself and said the LQ Golfers reviewed the 2017/18 Silverrock Annual Plan and find the $434,000 operating loss excessive, and can be reduced through revenue enhancements and expenditure reductions. The LQ Golfers recommend: reducing the proposed management fee increase of 4% to the 2016 Los Angeles Consumer Price Index of 1.98%; reduce the marketing budget from $231,000 to $50,000, instead utilize social media and Silverrock’s tee time software system; reduce staff by five full-time employees and increase operations efficiency; raise the green fees as recommended by the Advisory Committee’s Report and the LQ Golfers; negotiate water rates reduction with CVWD to agricultural costs; immediately amend the resident tee time reservation system to seven days, starting at 5:00 a.m. advanced tee time; eliminate the existing golf card GPS system due to its inaccuracy and realize monthly savings of $4,700; utilize a consultant to ensure proper care of the lakes; and refer to the report provided to Council by the LQ Golfers dated March 2017. Council noted it would be more appropriate to consider an increase of the green fees after the golf course construction is completed; revenue enhancements are temporarily impaired due to the on-going golf course improvements and the temporary club house; the management fee increase of 4% is a contractual obligation and effective through the term of the agreement; negotiating water rate reduction with CVWD is not within the scope of the Silverrock Resort 2017/18 Annual Plan; Robert Green Company has already expressed support to create an Ad-hoc Golf Advisory Committee and the process is underway; the GPS discrepancy will be explored, but the system serves additional benefits as outlined by Mr. Duncan earlier; as of May 1 residents are able to book tee times starting at 5:00 a.m. daily. Council thanked Mr. Johnson for the comments and said the additional components will be considered at a future meeting. MOTION – A motion was made and seconded by Councilmembers Peña/Fitzpatrick to approve the Silverrock Resort 2017/18 Annual Plan as recommended and to add language requiring marketing collaboration between the Silverrock Resort, the future Montage hotel, and the City. Motion passed: ayes 4, absent 1 (Radi). 14 CITY COUNCIL MINUTES Page 7 of 10 MAY 16, 2017 STUDY SESSION 1. pulled at applicant’s request >>> DISCUSS A REQUEST BY RIVERSIDE COUNTY FOR THE CITY TO TAKE OVER ABOUT 2,000 FEET OF LAKE CAHUILLA ROAD BETWEEN THE QUARRY DEVELOPMENT ENTRANCE AND LAKE CAHUILLA PARK MAYOR EVANS TOOK UP PUBLIC HEARING ITEM NO. 1 SCHEDULED FOR 5:00 P.M. PUBLIC HEARINGS (taken up at 5:05p) 1. HOLD PUBLIC HEARING ON REQUEST FOR A TWO-YEAR TIME EXTENSION FOR SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2015-0004, LA PALOMA) FOR A 208-UNIT SENIOR LIVING COMMUNITY LOCATED AT THE NORTHEAST CORNER OF WASHINGTON STREET AND AVENUE 50 Planning Manager Perez presented the staff report, which is on file in the Clerk’s Office. MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 5:12 P.M. PUBLIC SPEAKER: Ms. Susan Dillman, La Quinta – introduced herself and said the proposed project was a very suitable development for the parcel and the residential community around it. She inquired if the applicant has the ability to increase the density or building height of the project to make it economically feasible due to the additional costs that will be incurred based on the Coachella Valley Water District’s (CVWD) requirements to line the storm water channel adjacent to the site with concrete. Staff replied La Quinta’s development standards remain in effect and to pursue such changes the applicant would have to amend the specific plan and current zoning designation for the parcel. PUBLIC SPEAKER: Mr. John Rimback, President of West Living, landowner and applicant, Carlsbad, California – introduced himself and said the applicant had never entered into any agreement to sell the property and always had the intention to develop the project. He provided details on the original project approval in 2004 and subsequent progress timeline and extensions; additional CVWD requirements in 2015 to line the storm water channel with concrete for flood control, which triggered further regulatory agencies approvals; and the cause for the delay due to CVWD’s pending drainage study expected to be completed in the next six months. Discussion followed regarding the “for sale” sign on the property in 2015 when the last extension was granted; the demand for senior housing in La Quinta; reasons for the project’s development delay; other senior housing, assisted living, and memory care projects in the City developed during the same period which are now operational; the importance of the City providing continuity of care facilities for its residents; the additional improvement requirements imposed by CVWD and the pending drainage study; the project’s financial stability and the inability to secure a loan based on a 15 CITY COUNCIL MINUTES Page 8 of 10 MAY 16, 2017 temporary permit; the anticipated project’s development timeline; and amending the requested two year time extension to a more reasonable time period to allow the applicant to show progress. Mr. Rimback provided CVWD’s meeting minutes dated April 3, 2017, for the record, which provided information on the required flood wall elevation height. MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 5:38 P.M. Councilmembers discussed the delay of the project; the pending CVWD drainage study; the challenge of securing financing with a temporary permit; and a reasonable time frame to extend the project. MAYOR EVANS RE-OPENED THE PUBLIC HEARING AT 5:44 P.M. MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/Peña to continue Public Hearing Item No. 1 to the June 6, 2017 Council meeting and directed staff to prepare a resolution for Council’s consideration to approve a project time- extension for up to six months and to require the applicant to provide a progress update before the time extension lapses. Motion passed: ayes 4, absent 1 (Radi). MAYOR EVANS CALLED FOR A BRIEF RECESS AT 5:45 P.M. MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 5:54 P.M. WITH ALL MEMBERS PRESENT EXCEPT COUNCILMEMBER RADI STUDY SESSION - Continued 2. FISCAL YEAR 2017/18 PROPOSED BUDGET Finance Director Campos and Community Resources Director Escobedo presented the staff report, which is on file in the Clerk’s Office. Councilmembers discussed in detail the three available options to reduce the rising police services costs. Council concurred with Options 1 and 2, and parts of Option 3, and directed staff to proceed with: switching the Special Enforcement Team to non- dedicated status; reducing Special Enforcement Fund by $50,000; reducing the funding for School Resource Officers from 1.5 to 0.5 for Desert Sands Unified School District; and freezing the vacant Special Enforcement Team Officer position. Council requested that staff provide an update on police hours at the June 6, 2017, meeting; and the cost for training volunteer reserve deputies through the Riverside Sheriff’s Department’s academy. 16 CITY COUNCIL MINUTES Page 9 of 10 MAY 16, 2017 Councilmembers further discussed the reduced projected deficit; the unfunded community events and marketing items; Bear Creek Trail annual maintenance costs; Library and Museum AV upgrades; and Museum events and exhibits improvements. Council expressed support of the proposed marketing; community programs and activities; and Brew in LQ expansion items; and requested that staff provide a profit and loss statement from the Art on Main Street event; and the Museum’s existing funding and event allocations, before these two items could be considered. Councilmembers discussed tasking the Financial Advisory Commission to review and advise Council on reducing the deposits of the emergency reserves and establishing a police reserve account. Councilmembers discussed records management staffing requests and processes; prevailing wage; upcoming state legislature that will further affect the City’s ability to use contract services; CalPERS retirement liability; and importance of succession planning. Council expressed support of the records management staffing request. DEPARTMENTAL REPORTS All reports are on file in the City Clerk’s Office. City Manager Spevacek reported the following items:  The Silverrock golf-related items will be scheduled as a Study Session item for the June 20, 2017 Council meeting.  Staff will schedule a Special Joint Meeting of the City Council with the City’s Boards and Commissions for July 18, 2017, to discuss protocol, mission, and work programs.  Council will present Design and Development Director Tim Jonasson with a retirement proclamation at the June 6, 2017, Council meeting. MAYOR’S AND COUNCIL MEMBERS’ ITEMS Councilmember Sanchez commended Roy Grace, Chief of Police, and Lieutenant David Walton, Assistant Chief of Police for their creativity and cooperation in working with staff to achieve savings on the City’s agreement with the Riverside Sheriff’s Department for the 2017/18 fiscal year. Mayor Evans reported on her attendance of the La Quinta High School Summer Social fundraising event on May 13, 2017, and the school’s recognition of their partnership with the City. Councilmember Fitzpatrick report on her attendance of the Southern California Association of Governments 2017 Regional Conference and General Assembly, May 4-5, 2017, at the JW Marriott in Palm Desert. 17 CITY COUNCIL MINUTES Page 10 of 10 MAY 16, 2017 REPORTS AND INFORMATIONAL ITEMS La Quinta’s representative for 2017, Mayor Evans reported on her participation in the following organizations meeting:  CVAG COACHELLA VALLEY CONSERVATION COMMISSION  CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE  CVAG EXECUTIVE COMMITTEE  GREATER PALM SPRINGS CONVENTION AND VISITORS BUREAU  ECONOMIC DEVELOPMENT SUBCOMMITTEE La Quinta’s representative for 2017, Councilmember Fitzpatrick reported on her participation in the following organization meeting:  COACHELLA VALLEY MOUNTAINS CONSERVANCY  DESERT RECREATION DISTRICT COMMITTEE (Fitzpatrick & Radi) La Quinta’s representative for 2017, Councilmember Peña reported on his participation in the following organization meeting:  CVAG PUBLIC SAFETY COMMITTEE  CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Peña/Fitzpatrick to adjourn at 7:21 p.m. Motion passed: ayes 4, absent 1 (Radi). Respectfully submitted, MONIKA RADEVA, Deputy City Clerk City of La Quinta, California 18 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: EXCUSE ABSENCES FOR COMMISSIONERS MILLS AND TURBOW FROM THE MAY 10, 2017 FINANCIAL ADVISORY COMMISSION MEETING AND COMMISSIONER WRIGHT FROM THE MAY 23, 2017 PLANNING COMMISSION MEETING RECOMMENDATION Excuse absences for Commissioners Mills and Turbow from the May 10, 2017 Financial Advisory Commission meeting, and excuse Commissioner Wright from the May 23, 2017 Planning Commission meeting. EXECUTIVE SUMMARY Commissioners Mills and Turbow requested to be excused from the May 10, 2017 Financial Advisory Commission meeting due to personal matters. Neither commissioner has any prior absences during this fiscal year. Commissioner Wright has requested to be excused from the May 23, 2017 Planning Commission meeting due to personal matters. Commissioner Wright has no prior absences during this fiscal year. FISCAL IMPACT No meeting attendance compensation is paid to absent members. BACKGROUND/ANALYSIS The Municipal Code states: “If any member of a board, commission or committee absents him/herself from two consecutive regular meetings, or absents him/herself from a total of three regular meetings within any fiscal year, his/her office shall become vacant and shall be filled as any other vacancy. A board, commission or committee member may request advance permission from the city council to be absent at one or more regular meetings due to extenuating circumstances, and/or may request the city council to excuse an absence after-the-fact where such extenuating circumstances prevented the member from seeking advance permission to be absent. If such permission or excuse is granted by the city council, the absence shall not be counted toward the above-stated limitations on absences.” ALTERNATIVES Council may deny these requests, which would result in the absence being counted toward the commissioners’ limitation on absences as noted above. Prepared by: Pam Nieto, Deputy City Clerk Approved by: Susan Maysels, City Clerk CONSENT CALENDAR ITEM NO. 2 19 20 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: APPROVE FISCAL YEAR 2017/18 FINANCIAL ADVISORY COMMISSION WORK PLAN RECOMMENDATION Approve Financial Advisory Commission’s 2017/18 Work Plan. EXECUTIVE SUMMARY Annually, City Boards and Commissions review and update their work plans. The Financial Advisory Commission’s (FAC) work plan reflects the six principal functions as set forth in the City’s Municipal Code. The FAC meets quarterly and will schedule special meetings as needed. FISCAL IMPACT - None. BACKGROUND/ANALYSIS On March 27, 2017, the expanded principal functions and meeting dates were presented to the FAC. The principal functions are: 1.Annually review the City’s investment policy and recommend appropriate changes; 2.Review at least quarterly the treasury report and note compliance with the investment policy as well as adequacy of cash and investments for anticipated obligations; 3.Receive and consider other reports provided by the City Treasurer; 4.Meet with the auditor after the annual audit of the City’s financial statements, and receive and consider the auditor’s comments on auditing procedures, internal controls, and findings for cash and investment activities; 5.Annually review the revenue and expenditures associated with Measure G, the one percent (1%) transactions and use tax; and CONSENT CALENDAR ITEM NO. 3 21 6. Serve as a resource for City treasurer on matters such as proposed investments, internal controls, and the utilization and/or change of financial institutions, custodians, brokers and dealers. The FAC will report to the Council after each meeting, either in person or through correspondence. City Ordinance specifies that the FAC shall meet quarterly and may schedule additional special meetings as needed. The scheduled meetings for 2017/18 are: August 9, 2017 - Wednesday November 15, 2017 – Wednesday February 12, 2018 – Monday April 11, 2018 – Wednesday, proposed special meeting date for budget discussions May 9, 2018 – Wednesday June 13, 2018 – Wednesday, proposed special meeting date for budget discussions. ALTERNATIVES The Council may elect to change the FAC’s responsibilities and purview. Prepared by: Karla Campos, Finance Director Approved by: Frank J. Spevacek, City Manager 22 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTIONS TO 1) APPROVE PRELIMINARY 2017/18 ENGINEER’S ANNUAL LEVY REPORT FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1, AND 2) DECLARE INTENT TO LEVY ANNUAL ASSESSMENTS FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 RECOMMENDATION Adopt a Resolution approving the preliminary 2017/18 Engineer’s Annual Levy Report for Landscape and Lighting Assessment District 89-1; and Adopt a Resolution declaring the City’s intent to levy annual assessments for construction, maintenance and servicing landscape and lighting improvements within the Citywide Landscape and Lighting Assessment District 89-1, and giving notice thereof. EXECUTIVE SUMMARY Annually, Council must take certain actions pertaining to Citywide Landscape and Lighting Assessment District 89-1 (District) to allow the City to levy annual assessments. These assessments fund 62% of the citywide landscape, lighting, median, and parkways maintenance costs. The 2017/18 assessment rate will remain at $35.60 per dwelling/parcel also identified as an equivalent benefit unit (EBU). This has been the rate since 1997. Any increases to the current assessment rate require a benefit analysis, and new assessments must be approved by a majority vote of all property owners within the City, which comprises the District. Specific actions Council must take include adopting these resolutions and scheduling a public hearing (hearing). FISCAL IMPACT The estimated 2017/18 cost for retention basin and right-of-way maintenance (landscaping and lighting maintenance for medians and parkways) is $1,544,200. The EBU will generate an estimated $960,244. The City will also receive $238,600 from County Service Area 152, levied by Riverside County, to fund retention basin maintenance. The combined income is projected to be $1,198,844, leaving a shortfall (funded by the General Fund) of $346,356. CONSENT CALENDAR ITEM NO. 4 23 BACKGROUND/ANALYSIS In 1989, the City formed the District to fund the maintenance, construction and servicing of landscape areas, street lights and traffic signals. Pursuant to the Landscape and Lighting Act of 1972, the City must annually perform a series of activities (Attachment 1), including preparation of an annual engineer’s report. The 2017/18 Preliminary Engineer’s Annual Levy Report (Engineer’s Report) (Attachment 2) has been prepared by City staff and Willdan Financial Services (Willdan provides parcel recognition support) to establish the maintenance budget and identify the benefitting parcels. Below is a comparison of the 2016/17 and 2017/18 Engineer’s Reports: 2016/17 2017/18 Citywide Benefit Zone Yes Yes Number of Local Benefit Zones 6 6 Number of Equivalent Benefit Units (EBU’s) 26,937 26,973 EBU Rate $35.60/EBU $35.60/EBU District Revenue $958,897 $960,244 Willdan projects an increase of 36 EBU’s from 2016/17 to 2017/18; actuals will be based on the final 2017/18 County Secured Tax Roll. All property owners, including those within the six local benefit zones, would be assessed a flat rate. The methodology has remained the same under the provisions of Proposition 218, which prohibits assessment increases without the approval of a simple majority of property owners in a public vote within the District. The Council is required to approve the Engineer’s Report and schedule a hearing to allow property owners an opportunity to provide testimony regarding any proposed changes. The hearing is scheduled for June 20, 2017. Approving the Engineer’s Report does impose the proposed EBU; the City can only levy the fee after a public hearing. Upon conclusion of the hearing, Council may consider the testimony and a resolution confirming the assessment diagram and EBU Rate. ALTERNATIVES Council may elect to increase assessments in order to fully fund the District costs. Staff projects that the assessment would need to increase by $57.25 per EBU to balance the District budget. If the Council selects this option, a District-wide benefit analysis and approval of the new assessments by vote of all affected property owners would be needed. Prepared by: Steve Howlett, Facilities Director Approved by: Frank J. Spevacek, City Manager Attachments: 1. Annual Activities Report 2. Preliminary 2017/18 Engineer’s Annual Levy Report 24 25 Resolution No. Preliminary Engineer’s Report L&L District 89-1 Adopted: June 6, 2017 Page 2 26 27 28 29 30 31 32 City of La Quinta Street Lighting and Landscape District No. 89-1 2017/2018 ENGINEER’S ANNUAL LEVY REPORT Intent Meeting: June 6, 2017 Public Hearing: June 20, 2017 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500 | 800.755.6864 F 951.587.3510 www.willdan.com/financial 33 ENGINEER'S REPORT AFFIDAVIT CITY OF LA QUINTA Street Lighting and Landscape District No. 89-1 Riverside County, State of California This Report and the enclosed diagrams show the exterior boundaries of the District as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this ____________ day of ______________, 2017. Willdan Financial Services Assessment Engineer On Behalf of the City of La Quinta By: ________________________________ Daniel Louie Project Manager, District Administration Services By: ________________________________ Richard Kopecky R. C. E. # 16742 34 ENGINEER'S REPORT CITY OF LA QUINTA STREET LIGHTING AND LANDSCAPE DISTRICT NO. 89-1 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached was filed with me on the day of , 2017. BY: Susan Maysels, City Clerk City of La Quinta Riverside County, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was approved and confirmed by the City Council of the City of La Quinta, California, on the day of , 2017. BY: Susan Maysels, City Clerk City of La Quinta Riverside County, California I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Riverside, on the day of , 2017. BY: Susan Maysels, City Clerk City of La Quinta Riverside County, California 35 TABLE OF CONTENTS   I. OVERVIEW 1  A. INTRODUCTION 1  B. COMPLIANCE WITH CURRENT LEGISLATION 1  C. HISTORICAL BACKGROUND AND LEGISLATION 2  II. DESCRIPTION OF THE DISTRICT 2  A. DISTRICT BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT 2  B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT 2  C. IMPROVEMENTS WITHIN THE DISTRICT 4  III. METHOD OF APPORTIONMENT 5  A. GENERAL 5  B. BENEFIT ANALYSIS 5  C. METHODOLOGY 6  IV. DISTRICT BUDGETS 10  A. DESCRIPTION OF BUDGET ITEMS 10  B. 2017/2018 DISTRICT BUDGET 11  APPENDIX A – DISTRICT ASSESSMENT DIAGRAM 14  APPENDIX B – 2017/2018 COLLECTION ROLL 15  36 2017/2018 L&L 89-1 Page 1 of 15 I. OVERVIEW A. INTRODUCTION The City of La Quinta (the “City”) annually levies and collects special assessments in order to provide and maintain the facilities, improvements and services within Street Lighting and Landscape District No. 89-1 (the “District”). The District was formed in 1989 pursuant to the Landscaping and Lighting Act of 1972 (the “1972 Act”), Part 2 of Division 15 of the Streets and Highways Code and authorizes the Agency to annually levy and collect assessments to maintain the services and improvements related thereto. This Engineer’s Annual Levy Report (the “Report”) describes the District, any changes to the District, and the proposed assessments for Fiscal Year 2017/2018. The proposed assessments are based on the estimated cost to maintain improvements that provide special benefit to properties assessed within the District. The various improvements within the District and the costs of those improvements are identified and budgeted separately, including expenditures, deficits, surpluses, revenues, and reserves. The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor Parcel Number (“APN”) by the Riverside County Assessor’s Office. The Riverside County Auditor/Controller uses Assessor Parcel Numbers and specific fund numbers on the tax roll to identify properties assessed for special district benefit assessments. Each parcel within the District is assessed proportionately for those improvements provided by the District and from which the parcel receives special benefit. Following consideration of public comments, written protests at a noticed public hearing and review of the Report, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report, and confirmation of the assessments, the Council may order the levy and collection of assessments for Fiscal Year 2017/2018 pursuant to the 1972 Act. In such case, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll for each benefiting parcel for Fiscal Year 2017/2018. B. COMPLIANCE WITH CURRENT LEGISLATION The District was formed in 1989 pursuant to the Landscaping and Lighting Act of 1972 (the “1972 Act”). As such, the City has determined that pursuant to California Constitutional Article XIIID Section 5 Subsection A the existing assessments are exempt from the substantive and procedural requirements of Proposition 218. Any new or increased assessments above the maximum assessment rates previously 37 2017/2018 L&L 89-1 Page 2 of 15 approved and levied by the City Council would be subject to both the substantive and procedural requirements of the Proposition. C. HISTORICAL BACKGROUND AND LEGISLATION The assessments for the District provide a special benefit to the parcels assessed, and the City utilizes General Fund Revenues to fund improvements and services that are considered general benefit. This District was formed pursuant to the 1972 Act, which permits the establishment of assessment districts by cities for the purpose of providing for the maintenance of certain public improvements, which include the facilities existing within the District, as those improvements provide a special benefit to parcels. The City Council reviews the current and projected years’ costs for the construction, operation, maintenance, and servicing of the District facilities and sets the assessment for the ensuing fiscal year, which runs between July 1 and June 30. II. DESCRIPTION OF THE DISTRICT A. DISTRICT BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT The boundaries of the District are coterminous with the boundaries of the City. The Diagram of the District showing the exterior boundaries has been submitted to the City Clerk at the City and is included by reference. B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT As applicable or may be applicable to this District, the 1972 Act defines improvements to mean one or any combination of the following:  The installation or planting of landscaping.  The installation or construction of statuary, fountains, and other ornamental structures and facilities.  The installation or construction of public lighting facilities.  The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. 38 2017/2018 L&L 89-1 Page 3 of 15  The maintenance or servicing, or both, of any of the foregoing.  The acquisition of any existing improvement otherwise authorized pursuant to this section. Incidental expenses associated with the improvements including, but not limited to:  The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment;  The costs of printing, advertising, and the publishing, posting and mailing of notices;  Compensation payable to the County for collection of assessments;  Compensation of any engineer or attorney employed to render services;  Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;  Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.  Costs associated with any elections held for the approval of a new or increased assessment. The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:  Repair, removal, or replacement of all or any part of any improvement.  Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.  The removal of trimmings, rubbish, debris, and other solid waste.  The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. 39 2017/2018 L&L 89-1 Page 4 of 15 C. IMPROVEMENTS WITHIN THE DISTRICT The District improvements are the operation, servicing and maintenance of landscaping, lighting and appurtenant facilities, including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows:  Landscaping and Appurtenant Facilities include, but are not limited to, landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance and appurtenant facilities, located within the public street rights-of-way, medians, trails, and dedicated street, drainage or sidewalk easements within the boundary of the District.  Lighting and Appurtenant Facilities include, but are not limited to, poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices, controllers and appurtenant facilities as required to provide safety lighting and traffic signals within public street rights-of-way and easements within the boundaries of the District.  Maintenance is defined as the furnishing of services and materials for the operation and usual maintenance, operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of landscaping, public lighting facilities, or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; and the removal of trimmings, rubbish, debris and other solid waste.  Servicing is defined as the furnishing of water for the irrigation of the landscaping and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements are on file in the office of the City Engineer and are by reference made a part of this report. 40 2017/2018 L&L 89-1 Page 5 of 15 III. METHOD OF APPORTIONMENT A. GENERAL The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements that include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: “The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The formula used for calculating assessments in this District therefore reflects the composition of the parcels, and the improvements and services provided, to apportion the costs based on benefit to each parcel. B. BENEFIT ANALYSIS Properties within the District boundary are found to derive a special benefit from the improvements provided by the District. These properties include single family residential, non-residential, vacant residential and non-residential, golf courses, agricultural and hillside conservation properties, vacant and remote non-residential and rural and estate residential properties. Special Benefits The method of apportionment (method of assessment) is based on the premise that each assessed parcel receives special benefit from the improvements maintained and funded by the assessments, specifically, landscaping and lighting improvements installed in connection with the development of these parcels. The desirability of properties within the District is enhanced by the presence of well- maintained landscaping and lighting improvements in close proximity to those properties. The annual assessments outlined in this Report are based on the estimated costs to provide necessary services, operation, administration, and maintenance required to ensure the satisfactory condition and quality of each improvement. The special benefits associated with the landscaping improvements are specifically: 41 2017/2018 L&L 89-1 Page 6 of 15  Enhanced desirability of properties through association with the improvements.  Improved aesthetic appeal of properties within the District providing a positive representation of the area.  Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.  Environmental enhancement through improved erosion resistance, and dust and debris control.  Increased sense of pride in ownership of property within the District resulting from well-maintained improvements associated with the properties.  Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities.  Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting are the convenience, safety, and security of property, improvements, and goods, specifically:  Enhanced deterrence of crime – an aid to police protection.  Increased nighttime safety on roads and highways.  Improved visibility of pedestrians and motorists.  Improved ingress and egress to and from property.  Reduced vandalism, damage to improvements or property, and other criminal acts.  Improved traffic circulation and reduced nighttime accidents and personal property loss.  Increased promotion of business during nighttime hours in the case of commercial properties. The preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District. C. METHODOLOGY Pursuant to the 1972 Act, the costs of the District may be apportioned by any formula or method that distributes the net amount to be assessed among the assessable parcels in proportion to the estimated special benefits to be received by each such parcel from the improvements. The special benefit formula used 42 2017/2018 L&L 89-1 Page 7 of 15 within the District should reflect the composition of the parcels - and the improvements and services provided therein - to apportion the costs based on estimated special benefit to each parcel. The cost to provide maintenance and service of the improvements within the District shall be equitably distributed among each assessable parcel based on the estimated special benefit received by each parcel. Equivalent Benefit Units To equitably spread special benefit to each parcel, it is necessary to establish a relationship between the various types of properties within the District and the improvements that benefit those properties. Each parcel within the District is assigned an Equivalent Benefit Unit (“EBU”) factor that reflects its land use, size and development, or development potential. Parcels that receive special benefit from the various District improvements are proportionately assessed for the cost of those improvements based on their calculated EBU. The EBU method assessment for this District uses the Single Family Residential parcel as the basic unit of assessment. A Single Family Residential (“SFR”) parcel equals one EBU. Every other land-use is assigned an EBU factor based on an assessment formula that equates the property’s specific land-use and relative special benefits compared to the Single Family Residential parcel. The EBU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefits to each parcel from the improvements are apportioned as a function of land use type, size, and development. The following table provides a listing of land use types, the EBU factors applied to that land use and the multiplying factor used to calculate each parcel’s individual EBU for each improvement provided in the District. During the formation of the District, a methodology was developed to calculate the EBUs for other residential and non-residential land use parcels, which are outlined below for reference. Every land use is assigned EBUs based on the assessment formula approved for the District. Parcels which have been determined to receive greater benefit than the SFR parcel are assigned more than 1 EBU and parcels that are determined to receive lesser benefit than SFR parcels are assigned less than 1 EBU as reflected in the Assessment Methodology. 43 2017/2018 L&L 89-1 Page 8 of 15 Single-Family Residential The City’s General Plan allows up to one acre of area for subdivided residential lots. The subdivided single family lot equal to or less than one acre in size is the basic unit for calculation of the benefit assessments. Parcels less than one acre in size zoned for single-family residential use are assessed one (1) EBU. Non-Residential The factor used for converting nonresidential is based on the average number of typical single-family residential lots of five per acre. Therefore, non-residential parcels will be assessed five (5) EBUs per acre with a minimum number per parcel of one (1) EBU. Vacant Residential Parcels defined as single family residential parcels less than one acre and having no structure will be assessed 33 percent (33%) of a single-family dwelling, or 0.33 EBU per parcel. Vacant Non-Residential Parcels not considered single family residential parcels less than one acre, and having no structure will be assessed based on acreage. The typical development in La Quinta occurs in increments of twenty (20) acres or less. The first twenty (20) acres of a Vacant Non-Residential parcel will be assessed at a rate of 33 percent (33%) of developed nonresidential properties, or 1.65 EBU per acre or any portion of an acre. The minimum number of EBUs per parcel is one (1) EBU. Any parcel of land greater than twenty (20) acres is considered open space and exempt from assessment until such time as parcel subdivision or development occurs. Golf Courses Properties identified as golf courses will be assessed a rate of 10 percent (10%) of the developed nonresidential properties, or 0.50 EBU per acre or any portion of an acre. The minimum number per parcel is one (1) EBU. Land Use EBU Factor Exempt Parcels 0.0 Single Family Residential Parcels 1.0 per unit Non-Residential Parcels 5.0 per acre; 1.0 minimum Vacant Residential Parcels 0.33 per unit Vacant Non-Residential Parcels 1.65 per acre for first 20 acres only Golf Course Parcels 0.50 per acre; 1.0 minimum Agricultural Parcels 0.25 per acre; 1.0 minimum Hillside Conservative Zone Parcels 0.10 per acre Vacant & Remote Parcels 0.825 per acre for first 20 acres only Rural/Estate Residential 1.0 + 0.33 per acre in excess 1 acre 44 2017/2018 L&L 89-1 Page 9 of 15 Agricultural Properties identified as agricultural will be assessed a rate of 5 percent (5%) of developed nonresidential properties, or 0.25 EBU per acre or any portion of an acre. The minimum number per parcel is one (1) EBU. Hillside Conservation Parcels located in areas zoned Hillside Conservation per the City’s Official Zoning Map will be assessed on the basis of allowable development within the Hillside Conservation Zone. The parcel will be assessed as one dwelling unit per ten (10) acres or 0.10 EBU per acre or any portion of an acre. Vacant and Remote Non-Residential Parcels (Annexation No. 9) Parcels not considered single family residential parcels less than one (1) acre and do not contain structures, will be assessed based on acreage. The City defines Vacant and Remote Non-Residential as parcels physically separated from City services and not readily able to develop due to difficult access and utility limitations. The land values are typically one half the value of other Vacant Non- Residential parcels because of the high cost of constructing appropriate access and utility infrastructures necessary. The Vacant and Remote Non-Residential parcels are assessed a rate of 0.825 EBUs per acre or portion thereof, for the first twenty (20) acres, with a minimum of one (1) EBU per parcel. Rural/Estate Residential Parcels of one acre or more in size, but having only one residential unit are identified as Rural/Estate Residential. These parcels will be assessed a rate of one (1) EBU for the first acre and 0.33 EBUs for each additional acre or portion of an acre. Exempt Property Publicly owned property and utility rights-of-way are exempt from assessment, as well as parcels of land shown on the County Assessor's records as Vacant Desert Land, Vacant Mountain Land, Agricultural Preserve and Public Utility owned land. This Report does not propose an increase in the District assessment rates for Fiscal Year 2017/2018 over or above the maximum rate established. The proposed rate per EBU for Fiscal Year 2017/2018 is the same rate assessed for Fiscal Year 2016/2017. The base assessment rate to be approved for Fiscal Year 2017/2018 is $35.60. The maximum assessment rate per EBU may not increase without a vote of the property owners in the District. Therefore, the assessment is proposed to remain at the maximum amount of $35.60 per EBU. This equates to total projected assessment revenue of $960,244. The City proposes the remaining $2,166,257 be funded through a General Fund contribution of $1,927,657 and $238,600 of revenue from CSA 152. 45 2017/2018 L&L 89-1 Page 10 of 15 IV. DISTRICT BUDGETS A. DESCRIPTION OF BUDGET ITEMS The 1972 Act requires that a special fund be established and maintained for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purposes as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. The following describes the services and costs that are funded through the District, shown in the District Budgets. District Costs Personnel – Reflects relevant City Staff salaries, wages and benefits, and also includes Worker’s Comp insurance, Stand-By, and Overtime labor. Contract Services – Includes contracted labor, such as the Riverside County Tax Roll Administration Fees, maintenance and repair of traffic signals, tree trimming, and security service. Rental Services – Reflects funds used for the purpose of uniform rental. Vehicle Operations – Includes the maintenance of fleet vehicles. Utilities – Includes the electric, telephone, and water services. Travel Training & Meetings – Reflects the funds used for the purposes of training and meetings. Information Technology – Includes computers, printers, and other related items and services. Operating Supplies – This item includes plant replacement, safety gear, field materials, and the materials used for the purposes of removing graffiti. Small Tools/Equipment – Includes non-capital small tools and equipment. District Administration – The cost for providing the coordination of District services and operations, response to public concerns and education, as well as procedures associated with the levy and collection of assessments. This item also includes the costs of contracting with professionals to provide any additional administrative, legal or engineering services specific to the District including any required notices, mailings or property owner protest ballot proceedings. 46 2017/2018 L&L 89-1 Page 11 of 15 B. 2017/2018 DISTRICT BUDGET For the purpose of estimating costs for the maintenance and servicing, actual costs are used where possible. However, where the improvements are new, or where actual maintenance experience is lacking, cost estimates will be used to determine costs. The Budget of estimated cost of operation, servicing, and maintenance for Fiscal Year 2017/2018 is summarized on the next page in Table 1. 47 2017/2018 L&L 89-1 Page 12 of 15 Table 1 Fiscal Year 2017/2018 Budget Category Description Estimated Expenditures Funding Fiscal Year 2017/2018 L & L Assessments General Fund–Parks Personnel Salaries-Permanent Full Time $425,200 $145,900 $279,300 Other Benefits & Deductions 228,700 81,600 147,100 Stand By Stand By Overtime Overtime Total Personnel $653,900 $227,500 $426,400 Contract Services Annual Lighting & Landscape Report $18,000 $18,000 Civic Center Campus Lake Maintenance 15,000 15,000 Landscape Lighting Maintenance 160,000 160,000 Financial Services Admin. Fee Citywide Maintenance Contract 917,100 535,100 382,000 Undeveloped Parks PM10 Services Maintenance & Repair CVWD Lease-Pioneer Dog Park 1 1 Tree Trimming 19,000 15,000 4,000 Janitorial Services Security Service - Corporation Yard Fritz Burns Pool 35,000 35,000 Musco Lighting 1,000 1,000 SilverRock Way Landscaping 65,000 65,000 Total Contract Services $1,230,101 $793,100 $437,001 Rental Services Uniforms $2,000 $1,000 $1,000 Total Rental Services $2,000 $1,000 $1,000 Park Equipment Vehicle Operations Facilities Charges Fleet Maintenance $57,700 $23,100 $34,600 Facility & Equipment Depreciation 300,000 300,000 Total Operations $357,700 $23,100 $334,600 Utilities Electric $247,600 $135,000 $112,600 Phone 500 500 Water 330,000 220,000 110,000 Total Utilities $578,100 $355,000 $223,100 Travel Training & Meetings $5,500 $500 $5,000 Total Travel Training & Meetings $5,500 $500 $5,000 Information Technology Computers Printers and Services $55,600 $22,000 $33,600 Total Information Technology $55,600 $22,000 $33,600 Operating Supplies Plant Replacement $50,000 $30,000 $20,000 Graffiti Removal 32,000 12,000 20,000 Safety Gear 1,500 500 1,000 Field Materials 114,000 64,000 50,000 Total Operating Supplies $197,500 $106,500 $91,000 Small Tools / Equipment Non-Capital $2,000 $500 $1,500 Total Small Tools/Equipment $2,000 $500 $1,500 Total Landscape & Lighting Budget $3,082,401 $1,529,200 $1,553,201 District Administration Public Works Administration Citywide Administration $44,100 $15,000 $29,100 Total District Administration $44,100 $15,000 $29,100 Total Landscape & Lighting Expenditures $3,126,501 $1,544,200 $1,582,301 Less CSA 152 Revenue $238,600 $238,600 Less General Fund Contribution $1,927,657 $345,356 $1,528,301 Balance to Levy $960,244 Total EBU 26,973.8 Levy Per EBU $35.60 48 2017/2018 L&L 89-1 Page 13 of 15 The following information was obtained from the Riverside County Assessor's Secured Roll, Assessor's Parcel Maps, and the City’s Planning Department. The land use categories were developed to classify the different land use types in the City. Table 2 Land Use FY 2017/2018 Parcel Count County Acres Prior Year EBU Prior Year Levy FY 2017/2018 EBU (1) FY 2017/2018 Levy (2) Agricultural 18 383.19 96.16 $3,423.18 96.16 $3,423.18 Exempt 46 90.15 0.00 0.00 0.00 0.00 Golf Course 284 3,500.71 1,805.52 64,274.82 1,805.52 64,274.82 Hillside Conservation 12 319.03 31.90 1,135.62 31.90 1,135.62 Multi-Family Residential 34 92.81 635.50 22,623.80 635.50 22,623.80 Non-Residential 262 555.55 2,804.75 99,849.10 2,804.75 99,849.10 Rural/ Estate 51 106.18 86.04 3,062.58 86.04 3,062.58 Single Family Residential 19,910 2,414.40 19,910.00 708,796.00 19,910.00 708,796.00 Vacant/ Remote 13 144.48 119.20 4,243.30 119.20 4,243.30 Vacant Non- Residential 222 599.55 627.12 22,323.34 627.12 22,323.34 Vacant Residential 2,601 1,149.62 857.67 30,512.26 857.67 30,512.26 Total 23,453 9,355.67 26,973.86 $960,244.00 26,973.86 $960,244.00 (1) The EBU count in this column reflects the total EBU count for the district. Whereas, for budget purposes, the EBU count in the previous table reflects only those parcels that are assessable (not exempt). (2) The difference in the “Balance to Levy” figure in the previous table and the land use classification proposed levy in this table is due to the Riverside County even penny requirement for each charged parcel. Actuals will be based on the final County Secured Roll for Fiscal Year 2017/2018. Differences are generally due to changes in County Land Use Classifications or Assessor Parcel Number changes. 49 2017/2018 L&L 89-1 Page 14 of 15 APPENDIX A – DISTRICT ASSESSMENT DIAGRAM The Boundary Diagrams for the original districts have previously been submitted to the Clerk of the City in the format required under the 1972 Act and are made part of this Report by reference. The parcel identification, lines and dimensions of each parcel within the District are those lines and dimensions shown on the Assessor Maps of Riverside County for the year in which this Report was prepared and is incorporated by reference and made part of this Report. The attached Landscape Maintenance Map displays the landscape maintenance areas within the City. 50 2017/2018 L&L 89-1 Page 15 of 15 APPENDIX B – 2017/2018 COLLECTION ROLL Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Assessor Parcel Maps and/or the Riverside County Secured Tax Roll for the year in which this Report is prepared. Non-assessable lots or parcels may include government owned land, public utility owned property, land principally encumbered with public right-of-ways or easements and dedicated common areas. These parcels will not be assessed. A listing of parcels within the District, along with the proposed assessment amounts, has been submitted to the City Clerk and, by reference, is made part of this Report. Upon approval of the Report and confirmation of the assessments, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll in Fiscal Year 2017/2018. If the parcels or APNs within the District and referenced in this Report, are re-numbered, re-apportioned or changed by the County Assessor’s Office after approval of the Report, the new parcel or APNs with the appropriate assessment amount will be submitted to the County Auditor/Controller. If the parcel change made by the County includes a parcel split, parcel merger or tax status change, the assessment amount submitted on the new parcels or APNs will be based on the method of apportionment and levy amount approved in this Report by the City Council. 51 52 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION TO APPROVE THE FISCAL YEAR 2017/18 INVESTMENT POLICY RECOMMENDATION Adopt a resolution to approve the Investment Policy for Fiscal Year 2017/18. EXECUTIVE SUMMARY  The California Government Code (Code) requires the City Treasurer to submit an annual statement of investment policy.  The Financial Advisory Commission (FAC) reviewed the Investment Policy (Policy) on March 27 and May 10, 2017.  On May 10, 2017, the FAC accepted edits and approved the recommended Investment Policy for 2017/18. FISCAL IMPACT – None. BACKGROUND The California Government Code requires state and local agencies to submit an annual statement of investment policy to the City Council. As part of the work plan, each year the FAC conducts a thorough review of the Policy and makes recommendations for City Council consideration (EXHIBIT A to the resolution). Per the Policy, the City Manager and City Attorney were present for discussion and approval by the FAC on May 10, 2017. There were no new regulatory changes in 2016/17, which would require an update to the current Policy. However, the FAC and staff have identified edits which provide consistency and further clarification to the document. Recommendations include changes to the fiscal year referenced; minor language changes for text consistency in appendices; and changes for consistency with City Code:  Update the buy and hold policy to include a provision allowing taking advantage of market conditions when fiscally advantageous. CONSENT CALENDAR ITEM NO. 5 53  Remove statement under Authority section that indicates City Manager must acknowledge in writing all purchases and sales prior to their execution. Municipal code allows for all transactions to be executed by the City Treasurer.  Removed references to the Temporary Liquidity Guarantee Program. This was an FDIC program instituted in 2008 as a result of the financial crisis and has since ended.  Re-ordered descriptions of investment types to match chart on pages 8-9.  Added statement noting bond proceeds are subject to bond indentures.  Sections XVIII and XIX updated to current verbiage regarding name change and increased duties of the former Investment Advisory Board, henceforth known as the Financial Advisory Commission.  Appendix B removed and replaced with newly adopted Chapter 2.70 of the Municipal Code.  Appendix C edited to ensure it mirrored the Municipal Code as posted on the City’s website.  Appendix D updated with current titles of finance staff.  Appendix E updated to reflect bond refinancing of 2016.  Clarification regarding mutual funds invested with the fiscal agent. It is City policy to invest all public funds in a manner which will provide a diversified portfolio with maximum security with the highest investment return in conformity with all state and local statutes, while meeting daily cash flow demands. This Policy applies to all cash and investments of the City, Successor Agency to the La Quinta Redevelopment Agency, La Quinta Housing Authority, and the La Quinta Financing Authority. The primary objectives of investment activity, in order of priority, are:  Safety of principal;  Liquidity to meet all obligations and requirements that may be reasonably anticipated; and  A risk-based market rate of return, meaning the return on an investment is less important than the safety and liquidity. The portfolio’s rates of return will be influenced by actions of the Federal Reserve Board, the market place and overall economic perceptions and conditions. The City’s buy and hold policy protects the yield of securities during the holding period because the securities’ yields are fixed at the time of purchase. 54 Authority to manage the City’s investment portfolio is specified in Section 3.08.010 of the City’s Municipal Code. Management responsibility for the investment program is delegated to the City Treasurer, who establishes and implements written procedures for its operation, consistent with the Policy. ALTERNATIVES Council may approve as presented, incorporate changes, or request further review by the FAC. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director 55 56 1 57 58 2017I18 3RO QUARTER BUDGET REPORT -GEM of the DESERT - 2017/18 INVESTMENT POLICY  Resolution No. 2017- Investment Policy for Fiscal Year 2017/18 Adopted: June 6, 2017 59 1      60 2         61 3           62 4            63 5        64 6 65 7 ’        66 8 67 9 68 10     69 11          70 12        71 13         72 14             73 15        74 16     75 17 76 18 77 19 78 20 79 21 80 22 81 23 82 24 83 25 84 26 85 27 86 28 87 29 88 30 89 31     90 32 91 33       92 34 93 35 94 36 95 37 96 38 97 39 98 40 99 41 100 42 101 43 102 44 103 45 104 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION TO EXTEND TIME TO COMPLETE ON-SITE IMPROVEMENTS FOR CAPISTRANO RESIDENTIAL DEVELOPMENT (TRACT MAP NO. 31910) LOCATED ON THE WEST SIDE OF MONROE STREET APPROXIMATELY 1,300 FEET NORTH OF AVENUE 58 RECOMMENDATION Adopt a resolution to extend time to complete on-site improvements as specified in the Subdivision Improvement Agreement for Tract Map No. 31910, Capistrano, to June 6, 2018. EXECUTIVE SUMMARY Capistrano is a residential development located on the west side of Monroe Street approximately 1,300 feet north of Avenue 58. La Quinta 57 Estates, Inc. (Developer) has requested a time extension to the Subdivision Improvement Agreement to complete the on-site improvements. Sufficient bonding exists to ensure completion of the remaining developer obligations and there have been no requests to complete these improvements. FISCAL IMPACT Bonds of sufficient value are in place to fund the incomplete improvements. BACKGROUND/ANALYSIS The remaining on-site improvements include street paving, dry utilities, and grading in the northern half of the tract where the lots are currently vacant. The developer has constructed off-site and on-site improvements in the southern portion of the tract. On May 23, 2017, the developer requested a time extension to complete remaining improvements (Attachment 2). No requests have been received to complete remaining on- site improvements; therefore staff recommends approval of the time extension. ALTERNATIVES Council may elect not to approve this time extension. Prepared by: Bryan McKinney, P.E., Principal Engineer Approved by: Timothy R. Jonasson, P.E., Design and Development Director/City Engineer Attachments: 1. Vicinity Map 2. Letter from John Pedalino dated May 23, 2017 CONSENT CALENDAR ITEM NO. 6 105 106 RESOLUTION NO. 2017 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING EXTENSION OF TIME TO JUNE 6, 2018 FOR THE COMPLETION OF THE ON-SITE IMPROVEMENTS AS SPECIFIED IN THE SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP NO. 31910, CAPISTRANO WHEREAS, the City Council approved the Subdivision Improvement Agreement (SIA) for Tract Map No. 31910, on December 6, 2006; and WHEREAS, Section 6. Completion of Improvements, of the approved SIA requires that the developer begin construction of the improvements within ninety days and complete the construction within twelve months after the approval of the Agreements; and WHEREAS, failure by the developer to complete construction of the on-site improvements by June 16, 2016 shall constitute cause for the City, in its sole discretion and when it deems necessary, to declare the Subdivider in default of the approved agreement; and WHEREAS, Section 8. Time Extension, of the approved SIA allows for, at the City Council’s sole and absolute discretion, an extension of time for completion of the improvements with additions or revisions to the terms and conditions of the Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The time for the completion of the on-site improvements as required by the approved SIA is extended to June 6, 2018. SECTION 2. The time extension for completing the on-site improvements shall expire when City offices close for regular business on June 6, 2018 if the installation of the on-site improvements has not been completed. SECTION 3. The provided security amount as required in the approved SIA is satisfactory. No additional securities are required. SECTION 4. All other terms, responsibilities and conditions as listed in the approved SIA shall remain in full force and effect. 107 Resolution No. 2017- Tract Map No. 31910 Adopted: June 6, 2017 Page 2 PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 6th day of June 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: __________________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: ___________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: _____________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 108 V I C I N I T Y M A P NOT TO SCALE TM 31910 capistrano ATTACHMENT 1 109 110 111 112 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION TO APPROVE THE FINAL TRACT MAP AND SUBDIVISION IMPROVEMENT AGREEMENTS ASSOCIATED WITH TRACT MAP NO. 33597, THE ESTATE COLLECTION AT CORAL MOUNTAIN, LOCATED AT THE SOUTHWEST CORNER OF MADISION STREET AND AVENUE 60 RECOMMENDATION Adopt a resolution approving the Final Tract Map and Subdivision Improvement Agreements for the Estate Collection at Coral Mountain residential development associated with Tract Map No. 33597; and authorize the City Manager to execute said agreements. EXECUTIVE SUMMARY •La Quinta Malaga, LLC. (Developer), the developer of the Estate Collection at Coral Mountain, has requested approval of a Final Tract Map. •This is a ministerial action that occurs when the conditions of development are satisfied or secured through agreements. FISCAL IMPACT Securities of sufficient value will be submitted to secure the incomplete improvements prior to recordation of the Final Tract Map. BACKGROUND/ANALYSIS Estate Collection at Coral Mountain is a residential development located at the southwest corner of Madison Street and Avenue 60 (Attachment 1). The Final Tract Map subdivides the property into 57 single-family lots. The site was previously rough graded. Three model homes were constructed. On-site street improvements, the perimeter wall, and the retention basin were partially completed by the previous developer. The Developer has submitted bonds to secure the development’s conditioned improvements and seeks approval of the Final Map (Attachment 2). The Final Tract Map has passed technical review by the City Surveyor and has been signed by the Developer. CONSENT CALENDAR ITEM NO. 7 113 ALTERNATIVES Staff does not recommend an alternative action. Prepared by: Bryan McKinney, P.E., Principal Engineer Approved by: Timothy R. Jonasson, P.E., Design and Development Director/City Engineer Attachments: 1. Vicinity Map 2. Tract Map 33597 3. Subdivision Improvement Agreements 114 RESOLUTION NO. 2017 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING APPROVAL OF FINAL TRACT MAP AND SUBDIVISION IMPROVEMENT AGREEMENTS ASSOCIATED WITH TRACT MAP NO. 33597 WHEREAS, the Planning Manager approved a time extension for Tentative Tract Map No. 33597, as permitted under the Subdivision Map Act, on July 18, 2016, subject to conditions of approval; and WHEREAS, the developer has completed the conditions of approval or secure the incomplete improvements with the Subdivision Improvement Agreements and bonds; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: That the City Council does hereby grant approval of Final Tract Map and Subdivision Improvement Agreements associated with Tract Map No. 33597, as referenced in the title of this Resolution, for the reasons set forth in this Resolution. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 6th day of June 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: __________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: ________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) 115 Resolution No. 2017- Tract Map No. 33597 Adopted: June 6, 2017 Page 2 APPROVED AS TO FORM: _________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 116 ATTACHMENT 1 TM 33597 estate collection at coral mountain V I C I N I T Y M A P NOT TO SCALE 117 118 119 1 2 0 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: APPROVE PROFESSIONAL SERVICES AGREEMENT WITH OMNI-MEANS, LTD TO PREPARE ENVIRONMENTAL COMPLIANCE AND RIGHT-OF-WAY DOCUMENTS, PLANS, SPECIFICATIONS AND ENGINEER’S ESTIMATE FOR THE VILLAGE COMPLETE STREETS – A ROAD DIET PROJECT NO. 2015-03 RECOMMENDATION Approve a Professional Services Agreement with Omni-Means, LTD, in the amount of $1,211,596, to prepare environmental compliance and right of way documents, plans, specifications and engineer’s estimate for the Village Complete Streets – A Road Diet Project; and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY •The Village Complete Streets – A Road Diet Project (Project) will transform the Village area with roundabouts and improved pedestrian and bicycle friendly facilities (Attachment 1). •Omni-Means, LTD is the successful firm selected from the request for proposals process that included review, panel interview and reference checks. •Approval of this Professional Services Agreement (PSA)(Attachment 2) kicks off preparation of environmental compliance and right of way documents and plans, specifications, and engineer’s estimate required to request construction fund obligation before the federal 2019/2020 grant deadline. FISCAL IMPACT The Project right of way, environmental compliance and design are part of the City’s Active Transportation Grant match. The funds for this PSA are in the proposed 2017/18 Capital Improvement Program available July 1, 2017. The following is the anticipated project budget: Professional (Local Funds): $220,000 Environmental/Engineering (Local Funds): $1,520,042 Inspection/Testing/Survey (Federal Grant): $954,000 Right of Way Acquisition (Local Funds) $318,000 Construction (Federal Grant): $4,891,615 City Administration (Local Funds): $75,000 Contingency (Local Funds/Federal Grant): $1,625,885 Total Budget: $9,604,502 CONSENT CALENDAR ITEM NO. 8 143 BACKGROUND/ANALYSIS The Project will reduce Calle Tampico, Calle Sinaloa and Eisenhower Drive in this area from four lanes to two to make room for bike, golf and Neighborhood Electric Vehicle (NEV) lanes and parking. Roundabouts will be constructed at five key intersections. Midblock crosswalks will be added to enhance pedestrian access to the Civic Center Park, Old Town La Quinta, and Fritz Burns Park. These improvements resulted from public outreach meetings related to Village advanced planning efforts. The total project cost is $9.6 million. The federal grant is $7.3 million with $2.3 million of local matching funds. The local matching funds are comprised of $1,000,388 of Measure G funds, $548,536 of SB1 (State gasoline tax increase) and $22,618 of Infrastructure funds. The remainder of the local funds ($719,900) comes from the existing 2015 Capital Improvement Project (Eisenhower Drive at Montezuma Roundabout). Any improvements (including additional landscaping) not specifically identified in the Caltrans approved grant application will require additional local funding. Contingent upon Council approval of this PSA on June 6, 2017, the project will be prepared for construction commencing 2019/2020. ALTERNATIVES No alternative is recommended. Prepared by: Ed Wimmer, P.E., Principal Engineer Approved by: Timothy R. Jonasson, P.E., Design and Development Director/City Engineer Attachments: 1. Site Improvement Plan 2. Professional Services Agreement 144 ATTACHMENT 1 A T T A C H M E N T 1 145 146 147 148 149 150 A T T A C H M E N T 2 1 5 1 1 5 2 1 5 3 1 5 4 1 5 5 1 5 6 1 5 7 1 5 8 1 5 9 1 6 0 1 6 1 1 6 2 1 6 3 1 6 4 1 6 5 1 6 6 1 6 7 1 6 8 1 6 9 1 7 0 1 7 1 1 7 2 1 7 3 1 7 4 1 7 5 1 7 6 1 7 7 1 7 8 1 7 9 1 8 0 1 8 1 1 8 2 1 8 3 1 8 4 1 8 5 1 8 6 1 8 7 1 8 8 1 8 9 1 9 0 1 9 1 192 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT ORDINANCE NO. 558 ON SECOND READING AMENDING TITLE 11 OF THE LA QUINTA MUNICIPAL CODE, SECTIONS 11.90.040, 11.90.050, 11.92.040, AND 11.92.050 RELATING TO COLLECTION OF FEES AND FINES FOR REPEAT FALSE ALARMS RECOMMENDATION Adopt Ordinance No. 558 on second reading. EXECUTIVE SUMMARY On May 2, 2017, Council introduced Ordinance No. 558 on first reading amending Title 11 of the La Quinta Municipal Code, sections 11.90.040, 11.90.050, 11.92.040, and 11.92.050, relating to collection of fees and fines for repeat false alarms. In 2016, Police and Fire Departments responded to more than 3,560 false alarms, costing the City more than $400,000 in public safety staff time in responding to these calls. City is seeking to reduce the number of false alarms in order to improve response time to actual emergencies. FISCAL IMPACT A $50 service fee will be imposed for each false alarm once three or more false alarms are activated within a 365-day period. Failure to pay the service fee within 15 days will be considered a violation and will be subject to fines, per section 1.09.020 (D). The $50 service fee is being reviewed as part of the City’s fee study, which is currently underway. BACKGROUND/ANALYSIS While public safety costs continue to rise, staff is further exploring ways to utilize public safety resources more efficiently. In 2016, both the Police and the Fire Departments had to respond to over 3,560 false alarms. It is estimated that each false alarm takes about 30 minutes to clear a call for service, this includes receiving the call, dispatching to the location, checking and clearing the premise. For the Fire Department, each false fire alarm dispatches one up to three engines, each staffed with three firemen. Both departments invest valuable resources that if available, could improve response times to other calls. ALTERNATIVES As Council approved this ordinance at first reading, staff does not recommend an alternative. Prepared by: Pam Nieto, Deputy City Clerk Approved by: Susan Maysels, City Clerk CONSENT CALENDAR ITEM NO. 9 193 194 ORDINANCE NO. 558 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTIONS 11.90.040, 11.90.050, 11.92.040, AND 11.92.050 OF THE LA QUINTA MUNICIPAL CODE, RELATING TO THE COLLECTION OF FEES AND FINES FOR REPEAT FALSE ALARMS WHEREAS, Title 11 of the La Quinta Municipal Code relates to Peace, Morals and Safety of the City of La Quinta (“City”); and WHEREAS, the City incurs costs for responding to false alarms to repeat offenders; and WHEREAS, in the last few years, costs have increased and there has been a rise in the number of responses to false alarms at the same addresses; and WHEREAS, the Police and Fire Departments responded to more than 3,560 false alarms in 2016, and some locations generated three or more false alarms within a 365 day period, which has resulted in excessive and unnecessary diversion and use of public safety resources. NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows: SECTION 1: Recitals. The foregoing recitals are true and correct and are incorporated herein as though set forth in full. SECTION 2: Authority. This ordinance is adopted pursuant to the authority granted by the California Constitution and state law, in addition to the La Quinta City Charter. SECTION 3: Adoption. Sections 11.90.040, 11.90.050, 11.92.040 and 11.92.050 of the La Quinta Municipal Code are hereby amended as written in Exhibit A attached hereto and incorporated herein. SECTION 4: California Environmental Quality Act (CEQA) Determination. In adopting this Ordinance, the City Council finds that the project is categorically exempt from CEQA pursuant to Title 14 California Code of Regulations Sections 15061(b)(3) and 15378, in that it can be seen with certainty that the adoption of the Municipal Code amendments propose no activity that may have a significant effect on the environment and will not cause a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. SECTION 5: Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or 195 Ordinance No. Amendments to Title 11 Relating to the Collection of Fees and Fines of Repeat False Alarms Adopted: Page 2 of 8 unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or existing provisions in the La Quinta Municipal Code. The City Council hereby declares that it would have adopted this Ordinance and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional. SECTION 6: Retroactive Applicability. It is the expressed intent of the City Council to have the amendments enacted by this Ordinance apply retroactively, to the maximum extent allowed by law, to any invoices or other documentation for service fees relating to false alarms, as identified in Sections 11.90.040, 11.90.050, 11.92.040, and 11.92.050 of the La Quinta Municipal Code, that have been issued on or after January 1, 2017. SECTION 7:SECTION 6: Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 8:SECTION 7: Posting. The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the Book of Ordinances of the City of La Quinta. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this ___ day of _________, 2017 by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: ___________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California 196 Ordinance No. Amendments to Title 11 Relating to the Collection of Fees and Fines of Repeat False Alarms Adopted: Page 3 of 8 (CITY SEAL) APPROVED AS TO FORM: ________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 197 Ordinance No. Amendments to Title 11 Relating to the Collection of Fees and Fines of Repeat False Alarms Adopted: Page 4 of 8 EXHIBIT A Section 11.90.040 of the La Quinta Municipal Code is amended to read: 11.90.040 Procedures. A. If the police chief (or designee) determines that a false alarm has occurred, the police officer responding to the alarm shall leave a notice at the premises which shall include the date and time of the response and a statement that the alarm was a “false alarm.” The notice shall also state that the user should take action to correct the causative problems and a warning that more than two false alarms, including but not limited to more than two false robbery or burglary alarms, in any one (1) year period is excessive. This chapter shall require a service fee to be paid per Section 11.90.050. Notice may be left at the premises pursuant to any method authorized pursuant to Section 1.01.300, or successor section, of the code. B. Multiple activations of an alarm system within a calendar day shall count as only one false alarm for the purpose of this chapter. C. An alarm user may contest the responding officer's determination of a false alarm by contacting the police chief or designee, within ten (10) days of the notification of the false alarm. The police chief, or designee, will make a decision concerning the determination that there was a false alarm. Any such decision may be appealed to the director of building and safety department within ten days of said determination. D. An audible alarm shall terminate its operation or the audible alarm shall automatically reset within fifteen minutes of its being activated. If an audible alarm has emitted an alarm signal in excess of thirty minutes within a one-hour period it may be declared a nuisance, and the police department may cause such alarm to be disconnected by an alarm agent licensed by the department of consumer affairs, and the cost thereof to be charged to the alarm user. If the alarm is connected to a central monitor, a responsible party must deactivate the alarm within thirty minutes of being notified of the nuisance. 198 Ordinance No. Amendments to Title 11 Relating to the Collection of Fees and Fines of Repeat False Alarms Adopted: Page 5 of 8 Section 11.90.050 of the La Quinta Municipal Code is amended to read: 11.90.050 Service fees. A. A service fee shall be paid to the city by an alarm user after an excessive number of false alarms have been received from a particular business, residence or property. Fees shall be set according to resolution adopted by the city council. For purposes of this section, three or more false alarms within a one (1) year period, commencing from the date of the first false alarm, is deemed an excessive number of false alarms. Fees shall be set according to resolution adopted by the city council, and the amount of the fee after five or more false alarms shall be up to the amount of full cost recovery, per each false alarm, for responses to false alarms as established by the resolution adopted by the city council. B. An alarm user may appeal to the police chief or designee, if extenuating or mitigating circumstances can be presented to satisfy the police chief that extraordinary circumstances exist which preclude the alarm users good faith attempts at rectifying the causative problems with his alarm system. The final decision as to assessment of the service fee will be made by the director of building and safety upon the written request of the alarm user. C. The service fees are to be paid to the city within fifteen days of the notification being mailed in the U.S. Postal Service. Failure to pay a service fee is a violation of this code and subject to fines in the amounts set forth in Section 1.09.020(D), or successor section, of the code. D. The United States Government, the state of California, other county departments, and other governmental agencies are exempt from fees required in this chapter. 199 Ordinance No. Amendments to Title 11 Relating to the Collection of Fees and Fines of Repeat False Alarms Adopted: Page 6 of 8 Section 11.92.040 of the La Quinta Municipal Code is amended to read: 11.92.040 Procedures. A. If the fire chief (or designee) determines that a false alarm has occurred, the fire officer responding to the alarm shall leave a notice at the premises which shall include the date and time of the response and a statement that the alarm was a “false alarm.” The notice shall also state that the user should take action to correct the causative problems and a warning that more than two false fire alarms in any one (1) year period is excessive. This chapter shall require a service fee to be paid per Section 11.92.050. Notice may be left at the premises pursuant to any method authorized pursuant to Section 1.01.300, or successor section, of the code. B. Multiple activations of an alarm system within a calendar day shall count as only one false alarm for the purposes of this chapter. C. An alarm user may contest the responding officer's determination of a false alarm by contacting the fire chief or designee, within ten days of the notification of the false alarm. The fire chief, or designee, will make a decision concerning the determination that there was a false alarm. Any such decision may be appealed to the director of the building and safety department within ten days of said determination. D. An audible alarm shall terminate its operation or the audible alarm shall automatically reset within fifteen minutes of its being activated. If an audible alarm has emitted an alarm signal in excess of thirty minutes within a one-hour period, it may be declared a nuisance, and the fire department may cause such alarm to be disconnected by an alarm agent licensed by the department of consumer affairs, and the cost thereof to be charged to the alarm user. If the alarm is connected to a central monitor, a responsible party must deactivate the alarm within thirty minutes of being notified of the nuisance. Section 11.92.050 of the La Quinta Municipal Code is amended to read: 11.92.050 Service fees. A. A service fee shall be paid to the city by an alarm user after an excessive number of false alarms have been received from a particular business, residence or property. Fees shall be set according to resolution adopted by the city council. For purposes of this section, three or more false alarms within a one (1) year period, commencing from the date of the first false alarm, is deemed an excessive number of false alarms. Fees shall be set according to resolution adopted by the city council, and the amount of the fee after five or more false alarms shall be up to the amount of full 200 Ordinance No. Amendments to Title 11 Relating to the Collection of Fees and Fines of Repeat False Alarms Adopted: Page 7 of 8 cost recovery, per each false alarm, for responses to false alarms as established by the resolution adopted by the city council. B. An alarm user may appeal to the fire chief or designee, if extenuating or mitigating circumstances can be presented to satisfy the fire chief that extraordinary circumstances exist which preclude the alarm user's good faith attempts at rectifying the causative problems with his alarm system. The final decision as to assessment of the service fee will be made by the director of building and safety upon the written request of the alarm user. C. The service fees are to be paid to the city within fifteen days of the notification being mailed in the U.S. Postal Service. Failure to pay a service fee is a violation of this code and subject to fines in the amounts set forth in Section 1.09.020(D), or successor section, of the code. D. The United States Government, the state of California, other county departments, and other governmental agencies are exempt from fees required in this chapter. 201 Ordinance No. Amendments to Title 11 Relating to the Collection of Fees and Fines of Repeat False Alarms Adopted: Page 8 of 8 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. ___ which was introduced at a regular meeting on the __ day of ______________, 2017, and was adopted at a regular meeting held on the __ day of ______________, 2017, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in City Council Resolution No. 2015-023. _________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California DECLARATION OF POSTING I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on _______________, 2017 pursuant to Council Resolution. _________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California 202 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT ORDINANCE NO. 559 ON SECOND READING REVISING SEVERAL CHAPTERS OF TITLE 12 OF THE LA QUINTA MUNICIPAL CODE RELATED TO VEHICLES AND TRAFFIC RECOMMENDATION Adopt Ordinance No. 559 on second reading. EXECUTIVE SUMMARY •On May 16, 2017, Council introduced Ordinance No. 559 on first reading revising Municipal Code Chapters 12.08, 12.16, 12.20, 12.24, 12.28, 12.32, 12.44, 12.48, 12.52, 12.56, 12.60, 12.68 and 12.69 related to vehicles and traffic and deleting sections of Chapters 12.08, 12.16, and 12.56 •The first comprehensive review of the Municipal Code (Code) is underway. Many sections have not been updated since the City’s incorporation in 1982. •Updates to the thirteen Chapters listed above are necessary to align the Code with current best practices, consolidate provisions, remove unnecessary detail, provide flexibility and update terms. FISCAL IMPACT – None BACKGROUND/ANALYSIS Thirteen of the sixteen Chapters of Title 12 of the Code are addressed in Ordinance. No 559. No update is required to the remaining three Chapters: 12.04 (Definitions), 12.12 (Enforcement - Obedience) and 12.64 (Driving Rules) since the definitions, enforcement authority, and driving rules have not changed. ALTERNATIVES As Council approved this ordinance at first reading, staff does not recommend an alternative. Prepared by: Pam Nieto, Deputy City Clerk Approved by: Susan Maysels, City Clerk CONSENT CALENDAR ITEM NO. 10 203 204 ORDINANCE NO. 559 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SEVERAL CHAPTERS OF THE MUNICIPAL CODE TITLE 12 AND DELETING CERTAIN SECTIONS OF TITLE 12 RELATING TO VEHICLES AND TRAFFIC WHEREAS, Title 12 of the Municipal Code contains the chapters that address vehicles and traffic laws and regulations, and; WHEREAS, a comprehensive review of Title 12 was undertaken to examine each chapter for accuracy, relevance, streamlining, straight-forward language, and compliance with State law, and; WHEREAS, amendments to several chapters of Title 12, and deletion of unnecessary sections of Title 12 is needed as a result of the comprehensive review to update the Municipal Code. NOW THEREFORE, the City Council of the City of La Quinta does ordain as follows: SECTION 1. AMENDED SECTIONS. The following sections shall be amended as written in Exhibit A attached hereto: Chapter 12.08 Administration Sections 12.08.060, 070 Chapter 12.16 Traffic Control Devices Sections 12.16.010, .030, .060, .070, .080, .090 Chapter 12.20 Special Speed Limits Section 12.20.020 Chapter 12.24 Turning Movements Section 12.24.050 Chapter 12.28 Stopping, Standing and Parking Section 12.28.080 Chapter 12.32 Parking Sections 12.32.010, .020, 040, .050, .060, .080, .090, .130 Chapter 12.44 Stop Intersections Sections 12.44.010, .020 Chapter 12.48 Yield Right of Way Signs Section 12.48.010 Chapter 12.52 One Way Streets and Alleys Section 12.52.010 Chapter 12.56 Restricted Use of Certain Streets Sections 12.56.010, .030, .040 Chapter 12.60 Loading Zones Section 12.60.010 Chapter 12.68 Pedestrians Section 12.68.010, .020 Chapter 12.69 Golf Carts Section 12.69.020, .060, .070 SECTION 2. DELETED SECTIONS. Each of the following sections or subsections shall be deleted in its entirety: Chapter 12.08 Administration Sections 12.08.080, .090 Chapter 12.16 Traffic Control Devices Section 12.16.090, .130 205 Ordinance No. 559 La Quinta Municipal Code Title 12 Revisions – Vehicles and Traffic Adopted: June 6, 2017 Page 2 of 46 Chapter 12.56 Restricted Use of Certain Streets Sections 12.56.011(A), .050, .060 SECTION 3. SEVERABILITY. The City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect. SECTION 16. EFFECTIVE DATE. This Ordinance shall be in full force and effect thirty days after its adoption. SECTION 17. POSTING. The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the Book of Ordinances of the City of La Quinta. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this 6th day of June, 2017 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: ____________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) 206 Ordinance No. 559 La Quinta Municipal Code Title 12 Revisions – Vehicles and Traffic Adopted: June 6, 2017 Page 3 of 46 APPROVED AS TO FORM: ______________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 207 Ordinance No. 559 La Quinta Municipal Code Title 12 Revisions – Vehicles and Traffic Adopted: June 6, 2017 Page 4 of 46 EXHIBIT A Title 12 VEHICLES AND TRAFFIC Chapters: 12.04 Definitions – NO CHANGE 12.08 Administration – REVISED 12.12 Enforcement – Obedience – NO CHANGE 12.16 Traffic-Control Devices – REVISED 12.20 Special Speed Limits – REVISED 12.24 Turning Movements – REVISED 12.28 Stopping, Standing and Parking – REVISED 12.32 Parking – REVISED 12.44 Stop Intersections – REVISED 12.48 Yield Right-of-Way Signs – REVISED 12.52 One-Way Streets and Alleys – REVISED 12.56 Restricted Use of Certain Streets – REVISED 12.60 Loading Zones - REVISED 12.64 Driving Rules – NO CHANGE 12.68 Pedestrians – REVISED 12.69 Golf Carts – REVISED 208 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 5 of 46 Chapter 12.08 ADMINISTRATION Sections: 12.08.060 Traffic engineer—Office established. 12.08.070 Traffic engineer—Duties. 12.08.080 Technical traffic committee. 12.08.090 Duties of traffic committee. 12.08.060 Traffic engineer—Office established. The office of the city traffic engineer is established. The city manageror his or her designee shall serve as city traffic engineer and shall exercise the powers and duties with respect to traffic as provided in this title. (Ord. 10 § 1, 1982) 12.08.070 Traffic engineer—Duties. It shall be the general duty of the city traffic engineer to determine the installation and proper timing of traffic-control devices and signals, to conduct engineering analyses of traffic collisions, and to devise remedial measures, prepare an Annual Traffic Safety Report; conduct engineering and traffic investigations of traffic conditions as well as respond to citizen requests, review potential impacts from new development projects, review design plans for Capital Improvement Projects, review deisgn plans for improvements to be constructed by private development projects, review temporary work zone traffic control plans, cooperate with other city officials in the development of ways and means to improve traffic conditions; and to carry out the additional powers and duties imposed by the ordinances of this city. (Ord. 10 § 1, 1982) Delete Section 12.08.080 in its entirety. Delete Section 12.08.090 in its entirety. 209 Chapter 12.12 ENFORCEMENT—OBEDIENCE Sections: 12.12.010 Police officers—Authority. 12.12.015 Authority to issue parking citations. 12.12.020 Police officers—Traffic direction. 12.12.030 Authority of fire department officers or survey crew. 12.12.040 Obedience to police and fire department officials. 12.12.050 Loitering—Obstructing traffic. 12.12.060 Persons riding bicycles or animals. 12.12.070 Persons other than officials shall not direct traffic. 12.12.080 Public employees to obey traffic regulations. 12.12.090 Exemptions to certain vehicles. 12.12.100 Accident report—Required. 12.12.110 Accident report—Contents. 12.12.120 Accident report—Time limit. 12.12.010 Police officers—Authority. It shall be the authority of the officers of the police department, and such officers as are assigned by the chief of police, to enforce all traffic laws of this city and all of the state vehicle laws applicable to traffic in this city. (Ord. 10 § 1, 1982) 12.12.015 Authority to issue parking citations. Parking citations or notices of violations, related to charging violations of local or Vehicle Code regulations governing the parking or standing of vehicles, may be issued by any peace officer, by any other employee or agent of the police department or of the city who is duly authorized by the chief of police so to do, by any other person specifically so authorized by some other provision of law, and by any other person specially authorized by the chief of police in writing so to do. Whenever the chief of police delegates such authority to persons other than peace officers, he or she or she nor she shall endeavor to see that each such person is adequately instructed regarding the provisions of the parking regulations to be enforced, and the evidentiary prerequisites to proper prosecution for violations thereof. He or she shall further provide such persons with the same forms of citations or notices of violations as are utilized for the purpose by officers of the police department. Any such persons shall be appropriately instructed to deposit executed citations or notices with the police department for filing with the court, after review for legal sufficiency. (Ord. 10 § 1, 1982) 210 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 7 of 46 12.12.020 Police officers—Traffic direction. Officers of the police department or such officers as are assigned by the chief of police are authorized to direct all traffic by voice, hand or other signal in conformance with traffic laws, provided that in the event of a fire or other emergency or to expedite traffic or to safeguard pedestrians, officers of the police department may direct traffic as conditions may require, notwithstanding the provisions of the traffic laws. (Ord. 10 § 1, 1982) 12.12.030 Authority of fire department officers or survey crew. Officers of the fire department when at the scene of a fire or when, in the course of their duties, they are protecting personnel or equipment of the fire department, may direct or assist the police in directing traffic. Members of the city's survey crew, when in the course of their duties surveying the city's streets and rights-of-way, may direct or assist the police in directing traffic. (Ord. 10 § 1, 1982) 12.12.040 Obedience to police and fire department officials. No person shall wilfully fail or refuse to comply with any lawful order of a police officer or fire department official when directing traffic. (Ord. 10 § 1, 1982) 12.12.050 Loitering—Obstructing traffic. It is unlawful for any person to stand upon any street, sidewalk or other public way open for pedestrian travel, or otherwise occupy any portion thereof in such a manner as to annoy or molest any pedestrian thereon, or so as to obstruct or unreasonably interfere with the free passage of pedestrians, motor vehicles or other modes of travel. No person shall sit, lie or sleep upon any street, sidewalk or other public way. The provisions of this section shall not apply to persons sitting on the curb portion of any sidewalk or street while attending or viewing any parade permitted under the provisions of this code; nor shall the provisions of this section apply to persons sitting upon benches or other seating facilities provided for such purposes by municipal authority. (Ord. 10 § 1, 1982) 12.12.060 Persons riding bicycles or animals. Every person riding a bicycle or riding or driving an animal upon a highway shall be granted all of the rights, and shall be subject to all of the duties applicable to, the driver of a vehicle by this title except those provisions which by their very nature can have no application. (Ord. 10 § 1, 1982) 211 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 8 of 46 12.12.070 Persons other than officials shall not direct traffic. No person other than an officer of the police department or a person deputized by the chief of police or person authorized by a police officer or other city personnel expressly authorized by this chapter, shall direct or attempt to direct traffic by voice, hand or other signal except that persons may operate when and as herein provided any mechanical pushbutton signal erected by order of the city traffic engineer. (Ord. 10 § 1, 1982) 12.12.080 Public employees to obey traffic regulations. The provisions of this title shall apply to the driver of any vehicle owned by or used in the service of the United States Government, this state, or any county or city, and it is unlawful for any said driver to violate any of the provisions of this title except as otherwise permitted in this chapter or by the Vehicle Code. (Ord. 10 § 1, 1982) 12.12.090 Exemptions to certain vehicles. A. The provisions of this title regulating the operation, parking and standing of vehicles shall not apply to any vehicle of the police or fire departments, or other city vehicles, properly equipped to qualify as emergency vehicles, any public utility vehicle or any private ambulance, which public utility vehicle or private ambulance has qualified as an authorized emergency vehicle, when any vehicle mentioned in this section is operated in the manner specified in the Vehicle Code in response to any emergency call. B. The foregoing exemptions shall not, however, protect the driver of any such vehicle from the consequences of his wilful disregard of the safety of others. C. The provisions of this title regulating the parking or standing of vehicles shall not apply to any vehicle of a city department or public utility vehicle necessarily in use for construction or repair work, or any vehicle owned by the United States while in use for the collection, transportation or delivery of United States mail. (Ord. 10 § 1, 1982) 12.12.100 Accident report—Required. The driver of a vehicle or the person in charge of any animal involved in any accident resulting in damage to any property publicly owned or owned by a public utility, including but not limited to any fire hydrant, ornamental lighting post, telephone pole, electric light or power pole, or resulting in damage to any ornamental tree, traffic-control device or other property of a like nature located in or along any street, shall within twenty-four hours after such accident make a written report of such accident to the police department of this city. (Ord. 10 § 1, 1982) 212 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 9 of 46 12.12.110 Accident report—Contents. Every such report shall state the time when and the place where the accident took place, the name and address of the person owning and of the person driving or in charge of such vehicle or animal, the license number of every such vehicle, and shall briefly describe the property damaged in such accident. (Ord. 10 § 1, 1982) 12.12.120 Accident report—Time limit. A driver involved in an accident shall not be subject to the requirements or penalties of Sections 12.12.100 and 12.12.110 if and during the time such driver is physically incapable of making a report but in such event the driver shall make a report as required in Section 12.12.100 within twenty-four hours after regaining ability to make such a report. (Ord. 10 § 1, 1982) 213 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 10 of 46 Chapter 12.16 TRAFFIC-CONTROL DEVICES Sections: 12.16.010 Installation—Authority. 12.16.020 Installation—Required when. 12.16.030 Additional devices. 12.16.040 Required for enforcement purposes. 12.16.050 Obedience required. 12.16.060 Installation of traffic signals. 12.16.070 Installation at intersections—Required where. 12.16.080 Installation at intersections—Street name sign requirement. 12.16.090 Lane markings. 12.16.100 Distinctive roadway markings. 12.16.110 Safety zones. 12.16.120 Removal, relocation or discontinuation. 12.16.130 Hours of operation. 12.16.010 Installation—Authority. The city traffic engineer shall have the power and duty to place or cause to be placed and maintained official traffic-control devices when and as required under the traffic ordinances and resolutions of this city to make effective the provisions of said ordinances and resolutions. (Ord. 10 § 1, 1982) 12.16.020 Installation—Required when. Whenever the Vehicle Code requires that for the effectiveness of any provisions thereof that traffic-control devices be installed to give notice to the public of the application of such law, the city traffic engineer is authorized to install or cause to be installed the necessary devices subject to any limitations or restrictions set forth in the law applicable thereto. (Ord. 10 § 1, 1982) 12.16.030 Additional devices. The city traffic engineer may also cause to be placed and maintained such additional traffic-control devices as he or she may deem necessary to regulate traffic or to guide or warn traffic, but he or she shall make such determination only upon such principles and traffic investigations and in accordance with such standards, limitations and rules as may be set forth in the traffic ordinances of this city or as may be determined by ordinance or resolution of the legislative body of this city or as may be proper under standards officially in effect for the state. (Ord. 10 § 1, 1982) 214 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 11 of 46 12.16.040 Required for enforcement purposes. No provision of the Vehicle Code or of this title for which signs are required shall be enforced against an alleged violation unless appropriate signs are in place and sufficiently legible to be seen by an ordinarily observant person, giving notice of such provisions of the traffic laws. Such signs shall comply with the requirements of the Vehicle Code of the state. (Ord. 10 § 1, 1982) 12.16.050 Obedience required. The driver of a vehicle shall obey the instructions of any official traffic-control device applicable thereto placed in accordance with the traffic ordinances of this city unless otherwise directed by a police officer or other city personnel authorized by the provisions of this chapter, subject to the exceptions granted the driver of an authorized emergency vehicle when responding to emergency calls. (Ord. 10 § 1, 1982) 12.16.060 Installation of traffic signals. The city traffic engineer shall recommend the locations where traffic signals are needed by obtaining and reviewing, traffic counts, traffic collision data and other traffic information that may be pertinent, and his/her determinations therefrom shall be made in accordance with generally accepted traffic engineering and safety standards. (Ord. 10 § 1, 1982) 12.16.070 Installation at intersections—Required where. The city traffic engineer shall, upon direction of the city council cause to be installed and maintained official traffic signals at those intersections and other places where traffic conditions are such as to require that the flow of traffic be alternately interrupted and released in order to prevent or relieve traffic congestion or to protect life or property from exceptional hazard. The city traffic engineer shall, upon direction of the city council cause to be installed and maintained official traffic round-abouts at those intersections and other places where traffic conditions are such as to require that the flow of traffic be slowed and guided around a round-about in order to prevent or relieve traffic congestion or to protect life or property from exceptional hazard. (Ord. 10 § 1, 1982) 12.16.080 Installation at intersections—Street name sign requirement. Whenever the city traffic engineer causes to be installed and maintained traffic signals or roundabouts at any intersection, he or she shall likewise cause to be installed and maintained at such intersections street name signs visible to the principal flow of traffic unless such street name signs have previously been placed and are maintained at any such intersection. (Ord. 10 § 1, 1982) 215 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 12 of 46 `Delete Section 12.16.090 in its entirety. 12.16.120 Removal, relocation or discontinuation. The city traffic engineer is authorized to remove, relocate or discontinue the operation of any traffic control not specifically required by state law or this title whenever he or she determines in any particular case that the conditions which warranted or required the installation no longer exist. (Ord. 10 § 1, 1982) Delete Section 12.16.130 in its entirety. 216 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 13 of 46 Chapter 12.20 SPEED LIMITS Sections: 12.20.010 State speed laws applicable. 12.20.020 Authority to regulate speeds. 12.20.010 State speed laws applicable. The state traffic laws regulating the speed of vehicles shall be applicable upon all streets within this city, except as this chapter, as authorized by state law, declares and determines upon the basis of an engineering and traffic investigation that certain speed regulations shall be applicable upon specified streets or in certain areas, in which event it shall be unlawful for any person to drive a vehicle at a speed in excess of any speed so declared in this chapter when signs are in place giving notice thereof. (Ord. 123, 1988; Ord. 78 § 1, 1985; Ord. 10 § 1, 1982) 12.20.020 Authority to regulate speeds. A. Upon the basis of an engineering and traffic investigation, the city council by resolution, may decrease maximum speed limits at intersections adjacent to parks and outside urban districts and increase limits within urban districts. B. Upon the basis of an engineering and trafficsurvey, the city council by resolution may determine the maximum speed limits on arterial streets. C. Speed limits established pursuant to this section shall be applicable at all or such times as shall be indicated by official traffic control devices. (Ord. 123, 1988) 217 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 14 of 46 Chapter 12.24 TURNING MOVEMENTS Sections: 12.24.010 Markers—Placement—Multiple lanes. 12.24.020 Markers—Obedience required. 12.24.030 Restricted turn signs. 12.24.040 No-turn signs. 12.24.050 Prohibition of right turns against traffic stop signal. 12.24.010 Markers—Placement—Multiple lanes. The city traffic engineer is authorized to place markers, buttons or signs within or adjacent to intersections indicating the course to be traveled by vehicles turning at such intersections, and the city traffic engineer is authorized to allocate and indicate more than one lane of traffic from which drivers of vehicles may make right-hand or left-hand turns, and the course to be traveled as so indicated may conform to or be other than as prescribed by law or ordinance. (Ord. 10 § 1, 1982) 12.24.020 Markers—Obedience required. When authorized markers, buttons or other indications are placed within an intersection indicating the course to be traveled by vehicles turning thereat, no driver of a vehicle shall disobey the directions of such indications. (Ord. 10 § 1, 1982) 12.24.030 Restricted turn signs. The city traffic engineer is authorized to determine those intersections at which drivers of vehicles shall not make a right turn, left turn or U-turn, and shall place proper signs at such intersections. The making of such turns may be prohibited between certain hours of any day and permitted at other hours, in which event the same shall be plainly indicated on the signs or they may be removed when such turns are permitted. (Ord. 10 § 1, 1982) 12.24.040 No-turn signs. Whenever authorized signs are erected indicating that no right turn or left turn or U-turn is permitted, no driver of a vehicle shall disobey the directions of any such sign. (Ord. 10 § 1, 1982) 218 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 15 of 46 12.24.050 Prohibition of right turns against traffic stop signal. The city traffic engineer is authorized to determine those intersections within any business or residence district at which drivers of vehicles shall not make a right turn against a red or stop signal, and shall cause to be installed proper signs giving notice of such prohibition. No driver of a vehicle shall disobey directions of any such sign. (Ord. 10 § 1, 1982) 219 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 16 of 46 Chapter 12.28 STOPPING, STANDING AND PARKING Sections: 12.28.010 Application of regulations. 12.28.020 More restrictive provisions. 12.28.030 Standing in parkways prohibited. 12.28.040 Use of streets for storage of vehicles prohibited. 12.28.050 Parking for certain purposes prohibited. 12.28.060 Parking parallel with curb. 12.28.070 Angle parking. 12.28.071 Angle parking: Permitted areas. 12.28.080 Parking adjacent to schools. 12.28.090 Parking prohibited on narrow streets. 12.28.100 Standing of merchandise or food vehicles. 12.28.110 Emergency parking signs. 12.28.120 Display of warning devices when commercial vehicle disabled. 12.28.130 Parking on private property without permission or in an unauthorized manner. 12.28.140 Locking ignition required. 12.28.150 Impounding of vehicle illegally parked. 12.28.010 Application of regulations. The provisions of this title prohibiting the stopping, standing or parking of a vehicle shall apply at all times or at those times herein specified, except when it is necessary to stop a vehicle to avoid conflict with other traffic or in compliance with the directions of a police officer or official traffic-control device. (Ord. 10 § 1, 1982) 12.28.020 More restrictive provisions. The provisions of this title imposing a time limit on standing or parking shall not relieve any person from the duty to observe other and more restrictive provisions of the Vehicle Code or the regulations of this city prohibiting or limiting the standing or parking of vehicles in specified places or at specified times. (Ord. 10 § 1, 1982) 12.28.030 Standing in parkways prohibited. No person shall stop, stand or park a vehicle within any parkway paralleled by curbs or any parkway designated by the city traffic engineer as an area for no standing, stopping or parking and posted accordingly. (Ord. 10 § 1, 1982) 220 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 17 of 46 12.28.040 Use of streets for storage of vehicles prohibited. A. No person who owns or has possession, custody or control of any vehicle shall park such vehicle upon any street or alley for more than a consecutive period of seventy-two hours. B. In the event a vehicle is parked or left standing upon a street in excess of a consecutive period of seventy-two hours any member of the police department authorized by the chief of police may remove the vehicle from the street in the manner and subject to the requirements of the Vehicle Code. (Ord. 10 § 1, 1982) 12.28.050 Parking for certain purposes prohibited. No person shall park a vehicle upon any roadway for the principal purpose of: A. Displaying such vehicle for sale as a business; or B. Washing, waxing, wiping, greasing or repairing such vehicle except repairs necessitated by an emergency. (Ord. 10 § 1, 1982) 12.28.060 Parking parallel with curb. A. Subject to other and more restrictive limitations, a vehicle may be stopped or parked within eighteen inches of the left-hand curb facing in the direction of traffic movement upon any one-way street unless signs are in place prohibiting such stopping or standing. B. In the event a highway includes two or more separate roadways and traffic is restricted to one direction upon any such roadway, no person shall stand or park a vehicle upon the left-hand side of such one-way roadway unless signs are in place permitting such standing or parking. C. The city traffic engineer is authorized to determine when standing or parking shall be prohibited upon the left-hand side of any one-way street or when standing or parking may be permitted upon the left-hand side of any one-way roadway of a highway having two or more separate roadways and shall establish signs or markings giving notice thereof. D. The requirement of parallel parking shall not apply in the event any commercial vehicle is actually engaged in the process of loading or unloading freight or goods, in which case that vehicle may be backed up to the curb; provided, that such vehicle does not extend beyond the centerline of the street and does not block traffic thereby. (Ord. 10 § 1, 1982) 221 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 18 of 46 12.28.070 Angle parking. A. The city traffic engineer shall recommend upon what streets angle parking shall be permitted and shall mark and sign such streets when appropriately so ordered by the city council. Such angle parking shall not be permitted on any state highway or upon any other street or roadway that is not of sufficient width to permit and not interfere with the free movement of traffic. B. When signs or markings are in place indicating angle parking as provided in this section, no person shall park or stand a vehicle other than at the angle to the curb or edge of the roadway indicated by such signs or markings. (Ord. 10 § 1, 1982) 12.28.071 Angle parking: Permitted areas. Pursuant to Section 22503 of the California Vehicle Code, the following streets and portions of streets are designated as areas where angle parking shall be permitted: A. Calle Estado. In the center portion of the divided roadway of Calle Estado between Avenida Bermudas and Desert Club Drive, in such locations and spaces as shall be determined and appropriately indicated by markings or signs by the city traffic engineer. B. Calle La Fonda. In the center portion of the divided roadway of Calle La Fonda between Avenida Bermudas and Desert Club Drive, in such locations and spaces as shall be determined and appropriately indicated by markings or signs by the city traffic engineer. (Ord. 25 § 1, 1983; Ord. 10 § 1, 1982) 12.28.080 Parking adjacent to schools. A. The city traffic engineer is authorized to cause to be installed, signs indicating no parking upon any street adjacent to any school property when such parking would, in his/her opinion, interfere with traffic or create a hazardous situation. B. When official signs are erected indicating no parking upon either side of a street adjacent to any school property, no person shall park a vehicle in any such designated place. (Ord. 10 § 1, 1982) 12.28.090 Parking prohibited on narrow streets. A. The city traffic engineer is authorized to place signs or markings indicating no parking upon any street when the width of the roadway does not exceed twenty feet, or upon one side of a street as indicated by such signs or markings when the width of the roadway does not exceed thirty feet. 222 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 19 of 46 B. When official signs or markings prohibiting parking are erected upon narrow streets as authorized in this section, no person shall park a vehicle upon any such street in violation of any such sign or marking. (Ord. 10 § 1, 1982) 12.28.100 Standing of merchandise or food vehicles. No person shall stop, stand or park any vehicle from which merchandise or foodstuffs are displayed, offered for sale or sold, upon any portion of any street within this city except in compliance with all the following: A. Stopping to Sell—Time Limit. Such vehicle shall stand or park only at the request of a bona fide customer or purchaser and for a period of time not exceeding ten minutes at any one place. The vehicle may not stop within three hundred yards of any school property. B. Weight Limit. Such vehicles at all times shall each have a gross weight of less than five thousand pounds. C. Length of Vehicle. Such vehicles at all times shall have an overall length not exceeding eighteen feet. D. Days, Hours of Operation. Such vehicles shall not so operate on Sundays or holidays, nor before nine a.m. or after five p.m. on other days. E. Position on Street. Such vehicles, during the time they are stopped, standing or parked, shall be at the extreme right of the roadway, entirely off the paved, improved and main traveled portion of the roadway. F. Purpose of Vehicles. Such vehicles shall be used for display, offering for sale, and sale of merchandise and foodstuffs other than fresh meat, fish, poultry, fruits and vegetables. G. Noise-Making Devices. Noise emanating from such devices shall not exceed a duration of four seconds nor an intensity of seventy decibels. Record players or other continuous noise-making devices are prohibited. (Ord. 257 § 1, 1994; Ord. 10 § 1, 1982) 12.28.110 Emergency parking signs. A. Whenever the city traffic engineer, chief of police or their designated representatives determine that an emergency traffic congestion is likely to result from the holding of public or private assemblages, gatherings or functions, or for other reasons, the city traffic engineer, chief of police or their designated representatives, shall have power and authority to order temporary signs to be erected or posted, indicating that the operation, parking or standing of vehicles is prohibited on such streets and alleys as the city traffic engineer, chief of police or their designated representatives shall direct during the time 223 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 20 of 46 such temporary signs are in place. Such signs shall remain in place only during the existence of such emergency, and the person causing their placement shall cause such signs to be removed promptly thereafter. B. When signs authorized by the provisions of this section are in place giving notice thereof, no person shall operate, park or stand any vehicle contrary to the directions and provisions of such signs. (Ord. 10 § 1, 1982) 12.28.120 Display of warning devices when commercial vehicle disabled. A. Every motor truck having an unladen weight of four thousand pounds or more, and every truck tractor irrespective of weight when operated upon any street or highway during the time specified in Section 618 of the Vehicle Code shall be equipped with and carry at least two flares or two red lanterns, or two warning lights or reflectors, which reflectors shall be of a type approved by the Department of California Highway Patrol. B. When any vehicle mentioned in subsection A of this section or any trailer or semitrailer is disabled upon streets or highways outside of any business or residence district within this city and upon which street or highway there is insufficient street lighting to reveal a vehicle at a distance of two hundred feet during any time mentioned in Section 618 of the Vehicle Code, a warning signal of the character indicated in subsection A of this section shall be immediately placed at a distance of approximately one hundred feet in advance of, and one hundred feet to the rear of, such disabled vehicle by the driver thereof. The continuous flashing of at least four approved-type Class A-Type 1 turn signal lamps, at least two toward the front end and at least two toward the rear of the vehicle, shall be considered to meet the requirements of this section until the devices mentioned in this section can be placed in the required locations. The warning signals mentioned in this section shall be displayed continuously during the time mentioned in Section 618, while such vehicles remain disabled upon such street or highway. (Ord. 10 § 1, 1982) 12.28.130 Parking on private property without permission or in an unauthorized manner. A. No person shall stop, park or leave standing any vehicle on private property or business premises without the express or implied consent of the owner, authorized agent of the owner, person in lawful possession of such premises or property, or other person in charge thereof. B. No person shall stop, park or leave standing any vehicle on private property or business premises at a time, or at a place thereon, or for a period of time, or in any manner otherwise, which is unauthorized by the owner, authorized agent of the owner, person in lawful possession of such premises or property, or other person in charge thereof. 224 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 21 of 46 C. The following acts of stopping, parking or leaving standing a vehicle shall be included within those which shall be deemed in violation of subsections A or B of this section, whichever is applicable, but other acts not mentioned may also violate either subsection. (The use of the term parking in the following examples shall be deemed also to include collectively acts of stopping and leaving standing): 1. Parking on any vacant lot or unimproved property unless affirmatively so permitted by posted sign(s) or by the authorized person in charge; 2. Parking off-street on any improved private property not held open to use by the general public, unless such parking is by invitation of the occupant(s) or for bona fide business purposes upon the property; 3. Parking in any off-street parking area or lot or facility of an apartment building, hotel or business enterprise which is indicated by sign(s) or other marking(s) to be reserved for use by tenants, residents or employees or others not including the person so parking; 4. Parking in the off-street parking area or lot or facility of an individual parking stall or any area which is indicated by a sign or other marking(s) to be reserved for the exclusive use of a person or persons other than the person so parking; 5. Parking in a shopping center or business parking area or facility for a purpose other than doing business with one or more of the stores or offices at the site, or for a purpose not related to such business operation, or remaining parked for longer than reasonably appropriate to do such business or acts related to such business operations; 6. Utilizing a space or stall which is indicated by sign(s) or other marking(s) to be reserved for use in connection with a particular store, office or business, and parking in the same for a purpose other than that for which it is so reserved; 7. Parking in any stall or space which is indicated by sign(s), blue-painted curbing or other marking(s), to be designated for the exclusive use by physically handicapped persons, of a vehicle not displaying one of the distinguishing license plates or placards issued pursuant to California Vehicle Code Section 22511.5 or Section 9105; 8. Parking at any spot where such parking is prohibited, as indicated by sign(s), markings, striping, lettering on pavement, red-painted curbing or by any other means, including (but not limited to) areas and locations within areas reserved for or designated as traffic lanes for movement of vehicles or pedestrians, clear areas at or near building entrances or exits, fire lanes, sidewalks or pedestrian or bicycle lanes, clear areas at or near ramps or other facilities used by or intended for use of handicapped persons, unimproved areas, dangerous areas, areas to be utilized by larger vehicles such as trucks, buses, emergency 225 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 22 of 46 vehicles or other service vehicles, or areas designated for any other business or special use; 9. Except when necessary to avoid conflict with other traffic or by reasons of vehicle disablement or bona fide emergency, parking, standing or waiting at a location within a traffic lane or otherwise, which substantially interferes with the normal movement of vehicular or pedestrian traffic at such location; 10. Parking in violation of the restrictions stated on any other sign or marking(s) not mentioned in the foregoing divisions of this subsection, which has or have been placed on private property or business premises by the owner, authorized agent of the owner, person in lawful possession of such premises or property, or other person in charge thereof; 11. Failure or refusal to remove or move a parked or standing or stopped vehicle from private property or business premises, in compliance with a direction to do so by the owner, person in lawful possession of such premises or property, or other person in charge thereof; or violation of a direction by such person not to park, stop or stand a vehicle upon, or at a particular location upon, such premises or property; provided, that this section shall not apply to an act or failure or refusal to leave property or to noncompliance with a direction to keep off such property, in any of those instances listed in Section 11.64.040 of this code; or 12. Parking on a private street in violation of a prohibition or restriction stated on any sign or marking(s) or notification giving notice thereof, placed or given by or pursuant to authority of the association or person or other entity owning or in charge of such private street. D. Nothing in this section affects or limits the rights or remedies any person may have pursuant to any other provision of law, such as Section 22658 of the California Vehicle Code, to remove or cause the removal of a vehicle parking upon private property. E. It shall be the policy of the city council to encourage the posting of signs on shopping center parking facilities similar to the signs mentioned in Section 21107.8 of the California Vehicle Code, to give notice to the public that the parking regulations applicable on the private parking facility are subject to official enforcement by citations and fines and otherwise. This does not, however, authorize signs posted in nonconformance with the city's sign control ordinance or other applicable regulations; and the posting of such signs shall not be deemed a requirement or condition precedent to enforcement of this section. F. Sections 41102 et seq. of the California Vehicle Code are referred to and incorporated in this section by this reference and shall be applicable in connection with any prosecution for violation of this section, in the same manner and to the same extent as 226 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 23 of 46 said sections are applicable to prosecutions for parking violations occurring on the public streets. (Ord. 10 § 1, 1982) 12.28.140 Locking ignition required. No person shall park and leave a vehicle on a public street, alley or public parking facility unless the ignition has been locked; provided, however, that if the driver or passenger remains inside the vehicle after and while it is parked, or if the vehicle is in the custody of an attendant, the ignition need not be locked. (Ord. 10 § 1, 1982) 12.28.150 Impounding of vehicle illegally parked. Whenever a vehicle is illegally parked on a street or highway in violation of any provision of this chapter or of this code, any regularly employed and salaried police officer of the city or deputy of the sheriff's office of Riverside County, or member of the California Highway Patrol, may cause such vehicle to be impounded, driven or towed away and stored, so long as signs are posted giving notice of the removal. Any reasonable costs resulting from such impounding, towing or storage shall be charged to the owner of the vehicle and to the driver who committed the parking violation. (Ord. 10 § 1, 1982) 227 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 24 of 46 Chapter 12.32 PA RKING Sections: 12.32.010 Parking prohibited or time limited on certain streets. 12.32.020 Parking space markings—Installation. 12.32.030 Parking space markings—Parking within required. 12.32.040 Stricter parking regulations within council-established limited- parking zones. 12.32.050 Parking and driving on city property. 12.32.060 Enforcement of parking and driving regulations applicable on city property. 12.32.070 Parking or driving regulations applicable on property of schools and other public agencies. 12.32.080 No-parking areas. 12.32.090 Installation, design and spacing of signs. 12.32.100 Curb markings to indicate no stopping and parking regulations. 12.32.110 Certain commercial vehicles prohibited from parking on private property and public rights-of-way. 12.32.120 Commercial vehicles exempted from Section 12.32.110. 12.32.130 Violation of Section 12.32.110—Penalty. 12.32.010 Parking prohibited or time limited on certain streets. When authorized signs are in place giving notice thereof, specifying certain parking prohibitions or time limits, the prohibitions or time limits to be established by the city council or by the city traffic engineer pursuant to authority vested in him or her by this chapter, or by the Vehicle Code, no person shall stop, stand, park or leave standing any vehicle in violation of any such prohibition or time limit so specified in the signs. (Ord. 10 § 1, 1982) 12.32.020 Parking space markings—Installation. The city traffic engineer is authorized to cause to be installed and maintained parking space markings to indicate parking spaces adjacent to curbings where authorized parking is permitted. (Ord. 10 § 1, 1982) 12.32.030 Parking space markings—Parking within required. Each vehicle placed in any parking space shall be parked within the lines and markings so established by the city traffic engineer, and no person shall park or leave standing any vehicle so that it extends across any such line or markings, or is in such position that it is not entirely within the space designated by such lines or markings. (Ord. 10 § 1, 1982) 228 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 25 of 46 12.32.040 Stricter parking regulations within council-established limited-parking zones. Pursuant to authority vested in him or her by other provisions of this chapter, or by the Vehicle Code, the city traffic engineer is authorized to prescribe shorter time limits than those specified by resolution of the city council, or to prescribe parking prohibitions, within a particular limited-parking zone so specified by the city council; provided, that the stricter parking limitations or prohibitions are properly indicated by appropriate signs or markings in accordance with this chapter or other provisions of law. The city traffic engineer shall obtain the consent of at least 67% of the affected property owners and businesses prior to implementing any change in parking related time limits. The 67% provision does not apply to the city council. (Ord. 10 § 1, 1982) 12.32.050 Parking and driving on city property. A. The city manager or his/her designee shall from time to time examine and survey all city-owned parking lots, parking areas and other properties, and all property under the city's direct control, with respect to vehicle driving and parking uses, and the need for regulations applicable thereto, in order to assure proper and appropriate use of such public properties and to prevent interferences with the orderly and efficient conduct of the city's business. B. Based thereon, the city manager shall promulgate such conditions, rules and regulations governing driving, stopping, parking or leaving standing of vehicles on the particular properties involved, as shall, in his/her judgment, be necessary and appropriate to advance the public purposes mentioned in subsection A of this section. C. A written statement or other graphic depiction of such special conditions, rules and regulations shall, upon promulgation, be filed in the office of the city clerk, and the city council shall be promptly notified of such filing. Any council member may then cause the matter to be submitted, in whole or in part, for a formal review by the city council. If no council member takes such action within thirty days from the date the matter was filed with the city clerk, then the special conditions, rules and regulations shall be deemed adopted and imposed by the city council within the meaning of Vehicle Code Section 21113. (Ord. 10 § 1, 1982) 12.32.060 Enforcement of parking and driving regulations applicable on city property. A. Pursuant to Vehicle Code Section 21113, a written statement or other graphic depiction of all special conditions, rules and regulations adopted per Section 12.32.050 shall, at all times while the same remain effective, be kept on file and available at the office of the city clerk, for examination by all interested persons. 229 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 26 of 46 B. The city manager or his/her designee shall cause to be installed placed and maintained, appropriate signs and markings at each city-owned or city-controlled parking lot, paking area and other property, giving notice of all special conditions, rules and regulations applicable thereto, adopted per Section 12.32.050 and imposed under Vehicle Code Section 21113. C. Any vehicle operation, parking, stopping or leaving standing not complying with the special conditions, rules and regulations, will constitute a violation of Vehicle Code Section 21113, except that subsection (a) of Vehicle Code Section 22507.8 shall apply with respect to unauthorized parking in stalls or spaces designated for physically handicapped persons. (Ord. 10 § 1, 1982) 12.32.070 Parking or driving regulations applicable on property of schools and other public agencies. Conditions and regulations concerning parking or driving on property and grounds of schools or other public agencies are imposed by the appropriate governing boards or officers and are enforced pursuant to and under the conditions of Vehicle Code Section 21113. (Ord. 10 § 1, 1982) 12.32.080 No-parking areas. The city traffic engineer is authorized to cause to be maintained, by appropriate signs, markings or by paint upon the curb surface, certain no-stopping zones, no-parking areas, and restricted-parking areas, as defined and described in this section. No person shall stop, stand, park or leave standing any vehicle in any of the following places, except when necessary to avoid conflict with other traffic or in compliance with the direction of a police officer or other authorized officer or traffic sign or signal: A. Within any divisional island unless authorized and clearly indicated with appropriate sign or signal; B. On either side of any street between the projected property lines of any public walk, public steps, street or thoroughfare terminating at such street, when such area is indicated by appropriate signs or by red paint upon the curb surface; C. In any area where the city traffic engineer determines that the parking or stopping of a vehicle would constitute a traffic hazard or would endanger life or property, when such area is indicated by appropriate signs or by red paint upon the curb surface; D. In any area established by resolution of the council as a no-parking area, when such area is indicated by appropriate signs or by red paint upon the curb surface; 230 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 27 of 46 E. In any area where the parking or stopping of any vehicle would constitute a traffic hazard or would endanger life or property; F. On any street or highway where the use of such street or highway or a portion thereof is necessary for the cleaning, repair or construction of the street or highway or the installation of underground utilities or where the use of the street or highway or any portion thereof is authorized for a purpose other than the normal flow of traffic or where the use of the street or highway or any portion thereof is necessary for the movement of equipment, articles or structures of unusual size, and the parking of such vehicle would prohibit or interfere with such use or movement; provided, that signs giving notice of such no-parking are erected or placed at least twenty-four hours prior to the effective time of such no-parking; G. At any place within twenty feet of a point on the curb immediately opposite the midblock end of a safety zone, when such place is indicated by appropriate signs or by red paint upon the curb surface; H. At any place within twenty feet of a crosswalk at an intersection when such place is indicated by appropriate signs or by red paint upon the curb surface except that a bus may stop at a designated bus stop; I. In any area of approach to any traffic signal, left-turn lane, boulevard stop sign or official electric flashing device when such area is determined by the city traffic engineer to be valuable in the interest of promoting traffic safety or convenience, and the area is indicated by appropriate signs or by red paint upon the curb surface that a bus may stop at a designated bus stop. (Ord. 10 § 1, 1982) 12.32.090 Installation, design and spacing of signs. The city traffic engineer is authorized and directed to cause signs regulating or prohibiting parking to be installed in the zones now or hereafter provided by he city council or at such places as the city traffic engineer is authorized to regulate parking, standing or stopping pursuant to other provisions of this chapter or of law. Signs giving notice of a parking time limitation shall bein compliance with the specifications of the Vehicle Code of the state. . Such signs shall be spaced at a maximum interval of two hundred feet, and provided that there shall be a minimum of four signs in one block on each side of the street. (Ord. 10 § 1, 1982) 12.32.100 Curb markings to indicate no stopping and parking regulations. A. The city traffic engineer is authorized, subject to the provisions and limitations of this title, to place, and when required in this title shall place, the following curb markings to indicate parking or standing regulations, and the curb markings shall have the meanings as set forth in this section: 231 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 28 of 46 1. Red means no stopping or parking at any time except as permitted by the Vehicle Code, and except that a bus may stop in a red zone marked or signed as a bus zone. 2. Yellow means no stopping, standing or parking at any time between seven a.m. and six p.m. of any day for any purpose other than loading or unloading of passengers shall not consume more than three minutes, nor the loading or unloading of materials more than twenty minutes. 3. White means no stopping, standing or parking for any purpose other than loading or unloading of passengers, or for the purpose of depositing mail in an adjacent mailbox, which shall not exceed three minutes and such restrictions shall apply between seven a.m. and six p.m. of any day and except as follows: a. When such zone is in front of a hotel or in front of a mailbox the restrictions shall apply at all times. b. When such zone is in front of a theater or restaurant the restrictions shall apply at all times except when such theater or restaurant is closed. c. Taxicabs shall comply with this subdivision unless authorized to maintain a taxicab stand adjacent to the white curb marking, and provided the area for the taxicab stand is sign-posted at either end indicating TAXICAB ZONE ONLY. 4. Green means no standing or parking for longer than twenty minutes at any time between nine a.m. and six p.m. of any day. 5. Blue means parking limited exclusively to the vehicles of physically handicapped persons. B. When the city traffic engineer, as authorized under this title, has caused curb markings to be placed, no person shall stop, stand or park a vehicle adjacent to any such legible curb marking in violation of any of the parking, standing or stopping regulations so indicated. (Ord. 10 § 1, 1982) 12.32.110 Certain commercial vehicles prohibited from parking on private property and public rights-of-way. Unless excepted pursuant to Section 12.32.120, no commercial or construction vehicle, or towed commercial or construction equipment, shall be parked on private property or on public rights-of-way unless the vehicle or equipment is screened from public view and adjacent properties. The term commercial or construction vehicle and/or equipment includes, but is not necessarily limited to, utility body trucks, farming and construction 232 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 29 of 46 tractors, construction vehicles and towed equipment, semi-truck tractors, semi-truck trailers, dump trucks, step van delivery trucks or any parts or apparatus of any of the above. (Ord. 87 § 1, 1986; Ord. 72 § 1, 1985; Ord. 65 § 1, 1984) 12.32.120 Commercial vehicles exempted from Section 12.32.110. The following commercial vehicles are exempted from the prohibition contained in Section 12.32.110: A. Pickup trucks and utility vans, each of which do not exceed eight feet in height or twenty feet in combined total length; B. All vehicles while being used in actual construction work on a permit-approved construction site; C. All vehicles in the process of making a pickup or delivery; and D. Governmental and utility emergency service vehicles. (Ord. 369, 2002; Ord. 87 § 1, 1986; Ord. 72 § 1, 1985; Ord. 65 § 1, 1984) 12.32.130 Violation of Section 12.32.110—Penalty. Any person violating any provision of Section 12.32.110 shall be guilty of a misdemeanor, and upon conviction thereof shall be punished in accordance with Section 1.01.230 (A) (Ord. 87 § 2, 1986) 233 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 30 of 46 Chapter 12.44 STOP INTERSECTIONS Section: 12.44.010 Erection of stop signs. 12.44.020 Stop at through street or stop sign. 12.44.010 Installation of stop signs. Whenever the city council designates and describes any street or portion thereof as a through street, or any intersection at which vehicles are required to stop at one or more entrances thereto, or any railroad grade crossing at which vehicles are required to stop, the city traffic engineer shall cause to be installed and maintained stop signs as follows: A stop sign shall be erected on each and every street intersecting such through street or portion thereof so designated and at those entrances or other intersections where a stop is required and at any railroad grade crossing so designated. Every such sign shall conform with and shall be placed as provided in Section 21355 of the Vehicle Code. (Ord. 10 § 1, 1982) 12.44.020 Stop at through street or stop sign. A. Those streets and parts of streets set forth by the city council are declared to be through streets for the purposes of this section. When proper signs are in place giving notice thereof, all vehicular traffic shall be required to stop before entering any intersection of a through street. B. The provisions of this section shall also apply at one or more entrances to the intersections as such entrances and intersections are described by the city council. The provisions of this section shall also apply at those highways provided for by the city council. (Ord. 10 § 1, 1982) 234 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 31 of 46 Chapter 12.48 YIELD RIGHT-OF-WAY SIGNS Section: 12.48.010 Placement. 12.48.010 Placement. The city traffic engineer is authorized to determine those intersections at which drivers of vehicles shall yield the right-of-way to opposing traffic. The city traffic engineer shall cause to be placed and maintained YIELD RIGHT-OF-WAY signs at the entrance of streets previously determined by him or her, and the signs shall comply with the specifications of the Vehicle Code of the state. (Ord. 10 § 1, 1982) 235 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 32 of 46 Chapter 12.52 ONE-WAY ST REETS AND ALLEYS Section: 12.52.010 Signs. 12.52.010 Signs. Whenever the City Council designates any one-way street or alley, the city traffic engineer shall cause to be placed and maintained signs giving notice thereof, and no such regulations shall be effective unless such signs are in place. Signs indicating the direction of lawful traffic movement shall be placed at every intersection where movement of traffic in the opposite direction is prohibited. (Ord. 10 § 1, 1982) 236 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 33 of 46 Chapter 12.56 RESTRICTED USE OF CERTAIN STREETS Sections: 12.56.010 Truck routes—Establishment. 12.56.011 Truck routes—Designated. 12.56.020 Truck routes—Use required—Exceptions. 12.56.030 Truck routes—Exemptions. 12.56.040 Weight restricted streets designated. 12.56.010 Truck routes—Establishment. Whenever the most recently city council-approved General Plan designates and describes any street or portion thereof as a street the use of which is permitted by any vehicle exceeding a maximum gross weight limit of three tons, the city traffic engineer is authorized to designate such street or streets by appropriate signs as TRUCK TRAFFIC ROUTES for the movement of vehicles exceeding a maximum gross weight limit of three tons. (Ord. 10 § 1, 1982) 12.56.011 Truck routes—Designated. On those streets and portions of streets which are designated and established as truck routes in the most recently city council-approved City General Plan, the city traffic engineer shall cause to be installedand maintained appropriate signs on those streets affected by this section. Such signs shall be erected at all intersections of truck routes, and at all intersections of designated routes within the boundary lines of the city, or the terminus of the route. (Ord. 518 § 1, 2013; Ord. 243 § 1, 1994) 12.56.020 Truck routes—Use required—Exceptions. When any such truck traffic route or routes are established and designated by appropriate signs, the operator of any vehicle exceeding a maximum gross weight limit of three tons shall drive on such route or routes and none other, except that nothing in this section shall prohibit the operator of any vehicle exceeding a maximum gross weight of three tons coming from a TRUCK TRAFFIC ROUTE having ingress and egress by direct route to and from restricted streets when necessary for the purpose of making pickups or deliveries of goods, wares or merchandise from or to any building or structure located on such restricted streets or for the purpose of delivering materials to be used in the actual and bona fide repair, alteration, remodeling or construction of any building or structure 237 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 34 of 46 upon such restricted streets for which a building permit has previously been obtained therefor. (Ord. 10 § 1, 1982) 12.56.030 Truck routes—Exemptions. The provisions of Sections 12.56.010 and 12.56.020 shall not apply to: A. Passenger buses under the jurisdiction of the Public Utilities Commission, or publicly funded and operated transit vehicles; or B. Any vehicle owned by a public utility while necessarily in use in the construction, installation or repair of any public utility; or C. Any vehicle delivering street construction materials for street construction or repairs provided the route utilized by the delivery vehicle has been authorized for such use in writing by the City Manager or his/her designee . (Ord. 291 § 1, 1996; Ord. 243 § 1, 1994; Ord. 10 § 1, 1982) 12.56.040 Weight restricted streets designated. A. On streets and portions of streets which are designated in the most recently approved City General Plan where use is prohibited to any vehicle in excess a prescribed weight, the city traffic engineer shall cause to be installed and maintained appropriate signs on those streets affected by this section. Such signs shall be erected at the ingress point of the restricted street, and at all intersections of designated truck routes, or the boundary lines of the city, or the terminus of the restricted street. B. The city will allow overweight trucks to pass over restricted streets only when necessary for the purpose of making pickups or deliveries as provided in Section 12.56.020; except, however, emergency response vehicles while responding to an emergency are exempt from this code requirement. (Ord. 243 § 1, 1994) Delete Section 12.56.050 in its entirety. Delete Section 12.56.060 in its entirety. 238 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 35 of 46 Chapter 12.60 LOADING ZONES Sections: 12.60.010 Establishment. 12.60.020 Loading zone—Designation. 12.60.030 Passenger loading zone. 12.60.050 Effect of permission to load or unload. 12.60.060 Standing—For loading or unloading only. 12.60.070 Standing—In passenger loading zone. 12.60.080 Standing—In any alley. 12.60.090 Bus zones. 12.60.010 Establishment. The city traffic engineer is authorized to determine and to make loading zones and passenger loading zones as follows: A. At any place in any business district; B. Elsewhere in front of the entrance to any place of business or in front of any hall or place used for the purpose of public assembly. (Ord. 10 § 1, 1982) C. Unless directed otherwise by the city council , the city traffic engineer shall obtain the consent of at least 67% of the affected property owners and businesses prior to implementing any change in parking related time limits. 12.60.020 Loading zone—Designation. Loading zones shall be indicated by yellow paint upon the top and face of the curb, with black letters LOADING ONLY stenciled or otherwise painted on the top of the curb. (Ord. 10 § 1, 1982) 12.60.030 Passenger loading zone. Passenger loading zones shall be indicated by white paint upon the top and face of the curb, with black letters PASSENGER LOADING ONLY stenciled or otherwise painted on the top of the curb. (Ord. 10 § 1, 1982) 239 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 36 of 46 12.60.050 Effect of permission to load or unload. A. Permission granted in this chapter to stop or stand a vehicle for purpose of loading or unloading of materials shall apply only to commercial vehicles and shall not extend beyond the time necessary therefor, and in no event for more than twenty minutes. B. The loading or unloading of materials shall apply only to commercial deliveries, also the delivery or pickup of express and parcel post packages and United States mail. C. Permission granted in this chapter to stop or park for purposes of loading or unloading passengers shall include the loading or unloading of personal baggage but shall not extend beyond the time necessary therefor and in no event for more than three minutes. D. Within the total time limits specified in this section the provisions of this section shall be enforced so as to accommodate necessary and reasonable loading and unloading but without permitting abuse of the privileges granted by this chapter. (Ord. 10 § 1, 1982) 12.60.060 Standing—For loading or unloading only. No person shall stop, stand or park a vehicle in any yellow loading zone for any purpose other than loading or unloading passengers or material, for such time as is permitted in Section 12.60.050. (Ord. 10 § 1, 1982) 12.60.070 Standing—In passenger loading zone. No person shall stop, stand or park a vehicle in any passenger loading zone for any purpose other than the loading or unloading of passengers for such time as is specified in Section 12.60.050(C). (Ord. 10 § 1, 1982) 12.60.080 Standing—In any alley. No person shall stop, stand or park a vehicle for any purpose other than the loading or unloading of persons or materials in any alley. (Ord. 10 § 1, 1982) 12.60.090 Bus zones. The city traffic engineer is authorized to establish bus zones opposite curb space for the loading and unloading of buses or common carriers of passengers and to determine the location thereof subject to the directives and limitations set forth in this section: A. Bus as used in this section means any motor bus, motor coach, trackless trolley coach or passenger stage used as a common carrier of passengers. 240 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 37 of 46 B. No bus zone shall be established opposite and to the right of a safety zone. C. No person shall stop, stand or park any vehicle except a bus in a bus zone. (Ord. 10 § 1, 1982) 241 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 38 of 46 Chapter 12.64 DRIVING RULES 12.64.010 Driving through funeral processions. No driver of a vehicle shall drive between vehicles comprising a funeral procession while they are in motion and when the vehicles in such procession are conspicuously so designated. (Ord. 10 § 1, 1982) 12.64.020 Controlled intersections. Section 12.64.010 shall not apply at intersections where traffic is controlled by official traffic signals or police officers. (Ord. 10 § 1, 1982) 12.64.030 Clinging to moving vehicles. No person riding upon any bicycle, motorcycle, coaster, roller skates, skateboard or any toy vehicle shall attach the same or him or herself to any moving vehicle upon any roadway. (Ord. 10 § 1, 1982) 12.64.040 Driving vehicles on sidewalks—Generally prohibited. Unless otherwise expressly allowed by another provision of this title or other applicable law, no person shall drive a vehicle (including any bicycle or unicycle) within any sidewalk area or parkway except at a permanent or temporary driveway. (Ord. 10 § 1, 1982) 12.64.042 Bicycles on sidewalks—When allowed. A. Notwithstanding the provisions of Section 12.64.040, bicycles and unicycles may be ridden along portions or segments of sidewalks wherever expressly permitted by resolution of the city council, but not until such sidewalk areas have been appropriately designated by the city engineer with signs or markings to give due notice to the pedestrian and cycling public. B. No person shall ride, operate or use a bicycle or unicycle on a sidewalk or bikeway in a wilful or wanton disregard for the safety of persons or property. (Ord. 10 § 1, 1982) 12.64.050 New pavement. No person shall ride or drive any animal or any vehicle over or across any newly made pavement or freshly painted marking in any street when a barrier or sign is in place warning persons not to drive over or across such pavement or marking, or when a sign is in place stating that the street or any portion thereof is closed. (Ord. 10 § 1, 1982) 242 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 39 of 46 12.64.060 Driving on rims of wheels. No person shall drive, operate, tow or otherwise move any motor vehicle, equipped with rims to accommodate rubber tires, over or across any street in this city with tires removed or deflated so that the metal flanges or rims are in contact with the pavement, except to the nearest edge of the pavement from the point any such condition occurs through accident. (Ord. 10 § 1, 1982) 12.64.070 Restricted access. No person shall drive a vehicle onto or from any limited access roadway except at such entrances and exits as are established by public authority. (Ord. 10 § 1, 1982) 12.64.080 Restrictions on use of freeways. No person shall drive or operate any bicycle, motor-driven cycle, or any vehicle which is not drawn by a motor vehicle upon any street established as a freeway, as defined by state law, nor shall any pedestrian walk across or along any such street so designated and described except in space set aside for the use of pedestrians, provided official signs are in place giving notice of such restrictions. (Ord. 10 § 1, 1982) 12.64.090 Excessive acceleration. No person shall operate a vehicle on a street or alley in such a manner as to facilitate its speed by means of leaving rear-wheel frictional rubber marks, caused by rapid acceleration. (Ord. 10 § 1, 1982) 243 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 40 of 46 Chapter 12.68 PEDESTRIANS Sections: 12.68.010 Crosswalks—Establishment—Signs. 12.68.020 Crosswalks—Use required when. 12.68.010 Crosswalks—Establishment—Signs. A. The city traffic engineer is authorized to cause to be established and maintained, marked crosswalks and to designate them by appropriate devices or painted signs upon the surface of the road, way. B. The city traffic engineer may cause to be placed signs at or adjacent to an intersection in respect to any crosswalk directing that pedestrians shall not cross except in the crosswalk so indicated. (Ord. 10 § 1, 1982) 12.68.020 Crosswalks—Use required when. No pedestrian shall cross a roadway other than by a crosswalk (Ord. 10 § 1, 1982) 244 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 41 of 46 Chapter 12.69 GOLF CARTS Sections: 12.69.010 Purpose and intent. 12.69.020 Definitions. 12.69.030 Minimum design criteria for golf carts. 12.69.040 Minimum safety criteria for operation of golf cart. 12.69.050 Golf cart permit process. 12.69.060 Golf cart routes. 12.69.070 Enforcement of golf cart plan. 12.69.010 Purpose and intent. The California Streets and Highways Code, Sections 1950 through 1961, authorize local jurisdictions to establish golf cart transportation plans within their boundaries, under certain conditions and with certain requirements. The city has established the golf cart transportation plan in its general plan and intends, by the addition of this chapter of the municipal code, to establish standards, requirements and procedures for the implementation of the golf cart transportation plan. (Ord. 474 § 1, 2009) 12.69.020 Definitions. As used in this chapter, the following words and phrases shall have the following meaning: “City” means the city of La Quinta. “Golf cart” means a four-wheeled electric motor vehicle with an unladen weight of less than one thousand three hundred pounds, which is designed to be, and is operated at not more than twenty-five miles per hour, and is designed to carry golf equipment and no more than two persons, including the driver. “Golf cart paths” or “golf cart routes” means all city-owned travel ways that now allow, or are added in the future as allowable golf cart travelways, including roadways. There shall be three categories of golf cart paths: 1. Class I golf cart paths provide an area separate from the roadway used by automobile traffic for shared one-way or two-way golf carts, bicycles, pedestrians, and equestrians. 245 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 42 of 46 2. Class II golf cart paths provide a striped eight-foot lane for one-way golf cart and bicycle travel on a street or highway. 3. Class III golf cart paths provide for shared use with automobile and bicycle traffic. Class III paths are established by placing golf cart route signs along roadways with speed limits of twenty-five miles per hour or less in order to link them to Class I or Class II paths. “Golf cart route” means the map as it is revised from time to time depicting routes and crossings that exist or will be constructed, posted and designated for use by permitted golf carts. (Ord. 474 § 1, 2009) 12.69.030 Minimum design criteria for golf carts. All golf carts traveling on any golf cart path in the city must meet the following minimum design criteria: A. The golf cart must be electrically powered. B. The golf cart must be equipped and safely operated with all of the following equipment: 1. Red reflectors; 2. Parking brake; 3. Horn; 4. Headlights, brake lights and rear lights; 5. Front and rear turn signal indicator lights; 6. Windshield; 7. Seat belts; 8. Covered passenger compartment; 9. Mirror combination (left and right side mirrors, left and rear mirrors, or multi- directional cross bar mirror) and unobstructed view to the rear from the driver’s seat. (Ord. 474 § 1, 2009) 12.69.040 Minimum safety criteria for operation of golf cart. All golf cart operators operating golf carts on any golf cart path in the city must conform to the following operator requirements and safety criteria: 246 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 43 of 46 A. Golf cart operators must be licensed drivers in the state of California with valid California driver’s license, or have a valid driver’s license issued by a jurisdiction in accordance with Vehicles Code Sections 12502 through 12505. B. Golf cart operators must comply with the financial responsibility requirements (insurance) established pursuant to Chapter 1 (commencing with Section 16000) of Division 7 of the California Vehicle Code. C. No golf cart shall be operated on golf cart paths or golf cart routes within the city without a current golf cart permit decal visibly displayed on the right rear fender of the golf cart. D. The golf cart permit shall be valid for two years from the date of issuance. E. Golf cart operators must maintain the golf cart in a safe condition and be properly loaded to conform with CVC Section 24002. F. Golf cart operators may only travel in those golf carts that meet the minimum design criteria required by Section 12.69.030. G. Golf carts are limited to daytime operation and are permitted on public streets only during the time period between one hour prior to sunrise and one hour after sunset. H. A maximum of two persons may ride in the golf cart and may only ride in the main passenger compartment equipped with safety belts. Both driver and passenger must wear safety belts at all times while the golf cart is being operated on Class I, II, or III golf cart paths. I. Golf cart operators must yield the right-of-way to pedestrians, bicyclists, and equestrians. J. Golf cart operators may only travel on designated golf cart routes or along streets with speed limits of twenty-five miles per hour or less. K. Golf cart operators may not travel on or along streets with speed limits in excess of twenty-five miles per hour except on designated golf cart routes, and shall only cross at controlled intersections as designated on the golf cart route map. L. Golf carts modified by removing any of the above safety equipment or a modification that in any way creates an unsafe cart will result in the immediate revocation of the 247 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 44 of 46 golf cart permit and will be subject to any violations that apply under the California Vehicle Code. Should a golf cart be impounded pursuant to a violation under the State Vehicle Code, the registered owner shall be subject to any regulations imposed by the impounding authority pursuant to Section 22850.5 of the California Vehicle Code. M. No person shall operate or move a golf cart upon a sidewalk except those persons who in the course of their employment by a state, federal, or local government, or school district maintenance crew. (Ord. 474 § 1, 2009) 12.69.050 Golf cart permit process. The following golf cart permitting process is established: A. No golf cart shall be operated on golf cart paths or golf cart routes within the city without a current golf cart permit decal visibly displayed on the right rear fender of the golf cart. B. Persons in the course of their employment by a state, federal, or local government, or school district shall be allowed to apply for a permit allowing operation of a golf cart on city sidewalks. C. The golf cart permit shall be valid for two years from the date of issuance. D. The golf cart permit may be revoked by the city manager if he or she determines the golf cart which is the subject of the permit has been used by any person in a manner that violates one or more of the provisions in this chapter. If the permit is revoked, the owner of the golf cart may not reapply for a permit for the following twelve months. (Ord. 474 § 1, 2009) 12.69.060 Golf cart routes. The city manager or his/her designee shall have the authority to add or delete golf cart routes as the need arises or as conditions change in accordance with this chapter. (Ord. 474 § 1, 2009) 12.69.070 Enforcement of golf cart plan. A. Any person operating a golf cart in the city in violation of this chapter is guilty of an infraction punishable as set forth in LQMC Sections 1.01.200 through 1.01.250 as applicable or as permitted by the California Vehicle Code. 248 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 45 of 46 B. The city council finds and determines that the city shall provide law enforcement for the golf cart plan and enforce the rules and regulations of this chapter of the city of La Quinta Municipal Code, the Streets and Highways Code (Division 2.5, Chapter 6, Sections 1950 through 1961) and Section 21716 of the California Vehicle Code. The passage of the ordinance codified in this chapter enables the city to enforce this program’s provisions not found in the California Vehicle Code. (Ord. 474 § 1, 2009) 249 Ordinance No. 559 La Quinta Municipal Code Title 12 revisions Adopted: June 6, 2017 Page 46 of 46 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LA QUINTA ) I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 559 which was introduced at a regular meeting on the 16th day of May, 2017, and was adopted at a regular meeting held on the 6th day of June, 2017, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in City Council Resolution No. 2015-023. __________________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California DECLARATION OF POSTING I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on June ___, 2017 pursuant to Council Resolution. __________________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California 250 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION TO APPROVE THE INVESTMENT OF HOUSING AUTHORITY MONIES IN THE LOCAL AGENCY INVESTMENT FUND IN THE STATE TREASURY PURSUANT TO GOVERNMENT CODE SECTION 16429.1 RECOMMENDATION Adopt a resolution to approve the investment of Housing Authority monies in the Local Agency Investment Fund in the State Treasury pursuant to Government Code Section 16429.1 EXECUTIVE SUMMARY  Local Agency Investment Fund (LAIF) is an authorized investment in the City’s investment policy.  The Housing Authority LAIF account will be limited to Housing Authority funds and fund earnings.  Housing funds available for investment total $25,566,705.  LAIF mandates that Council authorize the deposit and withdrawal of money by City officers via a resolution. FISCAL IMPACT There is no cost to open a LAIF account. Administrative costs are limited to 5% of the portfolio earnings and are assessed quarterly. There are no wiring fees. LAIF accounts are limited to 15 transactions per month with a minimum transaction amount of $5,000. There is no minimum balance requirement; however, the maximum investment is capped at $65 million per account. A 24-hour notice is required for withdrawals over $10 million. BACKGROUND/ANALYSIS In 2011, the former Redevelopment Agency (Agency) sold taxable bonds (2011 Bonds) to invest in affordable housing. However, when the Agency was dissolved in 2012, the Successor Agency did not have access to the 2011 Bonds until the State Department of Finance (DOF) approved certain dissolution measures. One measure entailed a Bond Expenditure Agreement (Agreement), which was approved by the Council and Successor Agency (to the Agency) in July 2016 and by DOF in August 2016. In December 2016, the CONSENT CALENDAR ITEM NO. 11 251 Successor Agency refunded the 2011 Bonds to secure a lower interest rate (2016 Bonds). Subsequently, the Agreement was included on the 2017/18 Recognized Obligation Payment Schedule (ROPS), which DOF approved in March 2017. With these DOF approvals, the City may now withdraw 2016 Bond funds from the indenture trust account. The best repository is a new LAIF account that would be limited to Housing Authority funds. LOCAL AGENCY INVESTMENT FUND (LAIF) BACKGROUND LAIF is an authorized investment in the City’s investment policy. LAIF was established in 1977 and is administered by the California State Treasurer’s Office as an investment alternative for California’s local governments and special districts. The program operates a major portfolio investing hundreds of millions of dollars with in-house investment expertise. The Local Investment Advisory Board (LIAB) provides oversight and consists of: the State Treasurer, two members appointed by the State Treasurer with training and experience in the fields of investment or finance, and two members who are treasurers or finance/fiscal officers of a California local agency. LAIF has grown from 293 participants and $468 million in 1977 to 2,447 participants and $22.6 billion at the end of April 2017. LAIF is part of the state’s Pooled Money Investment Account, which had a $76.5 billion portfolio at the end of April 2017. INVESTMENT COST & MANAGEMENT The goals that guide LAIF investments are safety, liquidity, and yield, in that order. The current daily invest yield is 0.93%. The portfolio yield is updated weekly. All investment and LAIF claims are audited daily by the State Controller’s Office as well as through an in- house audit process. LAIF administrative costs are assessed quarterly. The Government Code states that administrative costs are not to exceed 5% of quarterly earnings. These fees cover actual costs to administer LAIF and are deducted from quarterly earnings prior to interest posting. Interest is calculated on a dollar-day basis to guarantee equitable distribution among all member funds. ALTERNATIVES Do not approve opening a Housing Authority LAIF account. Prepared by: Karla Campos, Finance Director Approved by: Frank J. Spevacek, City Manager 252 RESOLUTION NO. 2017 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AUTHORIZING INVESTMENTS OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the City of La Quinta does hereby find that deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein is in the best interests of the City of La Quinta. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of La Quinta, California, does hereby authorize the deposit and withdrawal of City of La Quinta monies in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Government Code Section 16429.1 et. seq. for the purpose of investment as provided therein. BE IT FURTHER RESOLVED, as follows: SECTION 1. The following City of La Quinta officers holding the titles specified herein below or their successors in office are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and are transactions contemplated hereby: Frank J. Spevacek Karla Campos (NAME) (NAME) City Manager Treasurer (TITLE) (TITLE) (SIGNATURE) (SIGNATURE) SECTION 2. This resolution shall remain in full force and effect until rescinded by the City Council by resolution and a copy of the resolution rescinding this resolution is filed with the State Treasurer’s Office. 253 Resolution No. 2017- Authorizing Investments of Monies in the Local Agency Investment Fund Adopted: June 6, 2017 Page 2 of 2 PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 6th day of June, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: __________________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: _______________________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 254 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 06, 2017 STAFF REPORT AGENDA TITLE: APPROVE DEMAND REGISTERS DATED MAY 12, MAY 19 AND MAY 26, 2017 RECOMMENDATION Approve demand registers dated May 12, May 19, and May 26, 2017. EXECUTIVE SUMMARY – None FISCAL IMPACT Demand of Cash: City 3,176,056.56$ Successor Agency of RDA 6,397.50$ Housing Authority 6,435.20$ 3,188,889.26$ BACKGROUND/ANALYSIS Between Council meetings, routine bills and payroll must be paid. Attachment 1 details the weekly demand registers for May 12, May 19, and May 26, 2017. Warrants Issued: 114893-114962 160,096.56$ 114963-115054 1,172,430.77$ 115055-115120 1,283,038.14$ Voids (1,458.94)$ Wire Transfers 326,986.82$ Payroll Tax transfers 82,888.84$ Payroll Direct Deposit 164,907.07$ 3,188,889.26$ In the amounts listed above, there are two checks that were voided. Check No.110241 was voided because the check was stale dated. Check No. 114852 was voided because sales tax wasn’t included with the check amount, therefore the vendor would not accept the check. Both checks were re-issued. CONSENT CALENDAR ITEM NO. 12 255 The most significant expenditures on the demand register listed above are as follows: Account Name Amount NAI Consulting Inc. Various 34,030.00$ Apr - Consulting Services Conserve Landcare Various 39,875.00$ May - Landscape Maint County of Riverside Professional Service 58,534.90$ Nov - Election Services Riverside County Various 1,019,399.57$ Feb - Police Services Sheriff Department Riverside County Various 1,039,802.95$ Mar - Police Services Sheriff Department PurposeVendor Wire Transfers: Nine wire transfers totaled $326,986.82. Of this amount, $280,474.34 was to Landmark Golf, $35,222.92 for CalPERS and $8,560 to ICMA. (See Attachment 2 for a full listing). ALTERNATIVES Council may approve, partially approve, or reject the demand registers. Prepared by: Derrick Armendariz, Account Technician Approved by: Rosemary Hallick, Financial Services Analyst Attachments: 1. Demand Registers 2. Wire Transfers 256 5/25/2017 4:44:18 PM Page 1 of 5 Demand Register City of La Quinta, CA Packet: APPKT01111 - JD 05/12/17 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 1,198.80Temporary Agency Services04/21/17-TEMP ACCOUNTANT114894ACCOUNTEMPS 101-1006-60125 319.48Operating Supplies05/03/17- WC FITPASS CARDS114895ALPHA CARD 101-3002-60420 80.00Blood/Alcohol Testing03/31/17- BLOOD DRAW114896AMERICAN FORENSIC NURSES …101-2001-60174 1,025.00Marketing & Tourism Promoti…05/01/2017-FINANCE BUDGET COVER DES…114897ARK CONNECTS LLC 101-3007-60461 60.00Cash Over/Short04/10/17- REIMBURSE FOR OVERPAY OF B…114899BARR DOOR INC 101-0000-42300 12.00Instructors03/01-04/30/17- PILATES MID MORNING114900BERETTO, LUCILLA 101-3002-60107 2,895.00Civic Center Lake Maintenance04/05-04/26/17- CC LAKE SVC114901BIO CLEAR WATER SOLUTIONS 101-3005-60117 100.00Miscellaneous Deposits05/02/17- FACILITY RENTAL/DEPOSIT REF…114902CABRERA, ADOLFO 101-0000-22830 10.00Garage Sale Permits04/12/17- GARAGE SALE REFUND114904CHEVALIER, KATRINA 101-0000-42405 170.00Sheriff - Other04/13/17- TOWING LA170970024114905CLASSIC AUTO TRANSPORT 101-2001-60176 544.37Utilities - Water -Pioneer Park05/05/17-WATER SVC114906COACHELLA VALLEY WATER DI…101-3005-61207 213.58PM 10 - Dust Control05/05/17-WATER SVC114906COACHELLA VALLEY WATER DI…101-7006-60146 994.64Utilities - Water -Monticello Pa…05/08/17-WATER SVC114906COACHELLA VALLEY WATER DI…101-3005-61201 17,995.92School Officer01/05-02/01/17- RSRC OFFICER BP#8114909DESERT SANDS UNIFIED SCHO…101-2001-60168 289.29Repair & Maintenance03/23/17- PAINT SUPPLIES114910DUNN-EDWARDS CORPORATI…101-3008-60691 34.21Phone - Sports Complex04/28-05/27/17- SPORTS COMPLEX PHONE114912FRONTIER COMMUNICATIONS…101-3005-61303 101.03Professional Services05/2017-ARMORED SVC114914GARDAWORLD 101-1006-60103 27.43Utilities - Gas03/21-04/19/17- FS #32 GAS114915GAS COMPANY, THE 101-2002-61100 7.00Cash Over/Short04/06/17- REIMBURSE FOR OVERPAY OF B…114916GEOCON WEST INC 101-0000-42300 542.50ConsultantsGENERAL CONSULTATION114917HERMANN DESIGN GROUP INC 101-6001-60104 18.00Cash Over/Short04/06/17- REIMBURSE FOR OVERPAY OF B…114919HUMPHREYS, JOANNA 101-0000-42300 677.49Utilities - Electricity05/02/17- ELECTRICITY SVC114920IMPERIAL IRRIGATION DIST 101-2002-61101 379.15Utilities - Electric - Colonel Pai…05/02/17- ELECTRICITY SVC114920IMPERIAL IRRIGATION DIST 101-3005-61108 56.36Utilities - Electric - Adams Park05/02/17- ELECTRICITY SVC114920IMPERIAL IRRIGATION DIST 101-3005-61110 25.00Travel & Training05/29/17- VETERAN'S DAY FIX WREATH114921INDIO FLORIST 101-1001-60320 71.50Consultants04/01-05/01/17- PRE-EMP-MIRTA LERMA114922IRC INC 101-1004-60104 345.60Instructors03/01-04/30/17-PERSONAL TRAINER114924KEPLER, KRISTOFFER 101-3002-60107 19.00Cash Over/Short04/06/17- REIMBURSE FOR OVERPAY OF S…114925KUHN, PHILIP AND EILEEN 101-0000-42300 23,750.00PM 10 - Dust ControlVACANT LAND DUST CONTROL114927LA QUINTA FARMS LLC 101-7006-60146 515.53Small Tools/Equipment03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…101-3008-60432 -203.73Small Tools/Equipment03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…101-3008-60432 19.00Cash Over/Short04/12/17- REIMBURSE FOR OVERPAY OF B…114929MCCREA, MICHAEL 101-0000-42300 111.41Operating Supplies04/20/17- APRIL LUNCH114930MCDOWELL AWARDS 101-3002-60420 6.00Cash Over/Short04/10/17- REIMBURSE FOR OVERPAY OF B…114931MEN, LIANYING 101-0000-42300 91.79Office Supplies04/24/17- FY 17/18 PROPOSED BUDGET B…114933OFFICE DEPOT 101-1006-60400 363.31Forms04/26/17- CITY WIDE COPIER PAPER114933OFFICE DEPOT 101-1007-60402 -208.60Sales Taxes Payable04/26/17 FY 17/18 BUDGET TABS-TAXES114935PLANIT REPROGRAPHICS SYST…101-0000-20304 2,645.10Printing04/26/17 FY 17/18 BUDGET TABS114935PLANIT REPROGRAPHICS SYST…101-1006-60410 -1.02Sales Taxes Payable04/27/17- FY17/18 PRPOSED BUDGET CO…114935PLANIT REPROGRAPHICS SYST…101-0000-20304 17.22Printing04/27/17- FY17/18 PRPOSED BUDGET CO…114935PLANIT REPROGRAPHICS SYST…101-1006-60410 298.20Instructors03/01-04/30/17- TAEKWONDO114936ROJAS, MIGUEL ANGEL 101-3002-60107 315.00Operating Supplies05/2017-WC PREVENTATIVE MAINTENAN…114937ROYAL GYM SERVICES 101-3002-60420 42.00Instructors03/01-04/30/17- ZUMBA114938SALCEDO, KATHLEEN 101-3002-60107 14.00Instructors03/01-04/30/17- WEST COAST SWING114940SHIRY, KENNETH 101-3002-60107 224.00Instructors03/01-04/30/17- BALLROOM114941SHIRY, TERESA 101-3002-60107 36.72LQ Police Volunteers04/2017- LQPD SHRED114942SHRED-IT USA - SAN BERNADI…101-2001-60109 315.20Instructors03/01-04/30/17- PERSONAL TRAINER114944SNYDER, JANICE 101-3002-60107 15.31Office Supplies04/21/17- DRINKING WATER114945SPARKLETTS 101-7003-60400 123.32Operating Supplies04/17/17- CANNABIS LICENSE HOLDERS114946STAPLES ADVANTAGE 101-1002-60420 31.95LQ Police Volunteers04/26/17- OFFICE SUPPLIES114946STAPLES ADVANTAGE 101-2001-60109 321.49Supplies - Field04/26/17- OFFICE SUPPLIES114946STAPLES ADVANTAGE 101-6004-60425 334.59Office Supplies05/01/17- TONER114946STAPLES ADVANTAGE 101-3005-60400 7.92Office Supplies05/01/17- BINDER CLIPS114946STAPLES ADVANTAGE 101-3005-60400 Attachment 1 257 Demand Register Packet: APPKT01111 - JD 05/12/17 5/25/2017 4:44:18 PM Page 2 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number 11.41Office Supplies05/01/17- BINDER CLIPS114946STAPLES ADVANTAGE 101-3005-60400 14.20Cash Over/Short04/17/17- REIMBURSE FOR OVERPAY OF B…114947THE LIGHT HOUSE 101-0000-42300 31.00Cash Over/Short04/06/17- REIMBURSE FOR OVERPAY OF S…114948THOMPSON, STEVEN & KARI 101-0000-42300 40.43Travel & Training05/02/17- CC MTG SNACKS114949THOMPSON, TERESA 101-1001-60320 189.77Supplies-Graffiti04/25/17- PARK SIGNS114951TOP OF THE LINE SIGNS 101-3005-60423 1,058.55Utilities - Telephone04/23-05/22/17- PHONE LINES114953TPx COMMUNICATIONS 101-2002-61300 19,142.25Contract Traffic EngineerTRAFFIC ENGINEERING SERVICES FY16/17114954TRAFFEX ENGINEERS INC 101-7006-60144 21.00Instructors03/01-04/30/17- SUNSET YOGA114955TRUE, ARTHUR ALLEN 101-3002-60107 61.00Pest Control04/10/17- LQ PARKS114956TRULY NOLEN INC 101-3008-60116 150.00Pest Control03/31/17- FS #32 PEST CONTROL114956TRULY NOLEN INC 101-2002-60116 49.00Instructors04/27/17- FLEX YOGA114957VIELHARBER, KAREN 101-3002-60107 54.36Safety Gear04/24/17-REIMBURSE FOR FIELD WORK B…114958VOTAW, CARLEY 101-7006-60427 1,707.44Employee Computer Loan04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-0000-20915 72.95Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-1004-60320 30.00Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-1004-60320 275.00Advertising04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-1004-60450 275.00Advertising04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-1004-60450 39.00Administration04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-1006-60102 199.00Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-1006-60320 175.00Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-1006-60320 804.00Special Enforcement Funds04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-2001-60175 340.20Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-2002-60320 135.93Special Events04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-3003-60149 169.00Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-3005-60320 353.19Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-3005-60320 511.09Materials - Irrigation & Light R…04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-3005-60424 89.22Materials - Irrigation & Light R…04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-3005-60424 507.00Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-3008-60320 25.00Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-7002-60320 40.65Operating Supplies04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-7002-60420 338.00Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-7003-60320 425.00Travel & Training04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 101-7006-60320 25.00Travel & Training05/2017- APWA MEMBERSHIP-LUNCH114961WIMMER, ED 101-7006-60320 1,402.92Marketing & Tourism Promoti…04/11/17- HIKING POCKET MAPS114962XPRESS GRAPHICS 101-3007-60461 Fund 101 - GENERAL FUND Total:86,160.62 Fund: 201 - GAS TAX FUND 26.79Operating Supplies03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…201-7003-60420 8.25Materials03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…201-7003-60431 39.25Small Tools/Equipment03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…201-7003-60432 152.79Traffic Control Signs04/26/17- SIGNS114952TOPS'N BARRICADES INC 201-7003-60429 432.28Traffic Control Signs04/26/17- SIGNS/CONES114952TOPS'N BARRICADES INC 201-7003-60429 432.28Traffic Control Signs04/26/17- SIGNS/CONES114952TOPS'N BARRICADES INC 201-7003-60429 99.94Traffic Control Signs04/27/17- SIGN AND POST114952TOPS'N BARRICADES INC 201-7003-60429 191.84Traffic Control Signs04/28/17- SIGNS114952TOPS'N BARRICADES INC 201-7003-60429 Fund 201 - GAS TAX FUND Total:1,383.42 Fund: 202 - LIBRARY & MUSEUM FUND 37.69Repair & Maintenance03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…202-3004-60691 47.00Pest Control04/12/17- MUSEUM PEST CONTROL114956TRULY NOLEN INC 202-3006-60116 83.38Machinery & Equipment04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 202-3006-80100 Fund 202 - LIBRARY & MUSEUM FUND Total:168.07 Fund: 215 - LIGHTING & LANDSCAPING FUND 237.95Utilities - Water - Medians05/04/17-WATER SVC114906COACHELLA VALLEY WATER DI…215-7004-61211 6,100.00Professional ServicesCITYWIDE LIGHTING MAINT SVC PRJ LMC2…114918HORIZON LIGHTING 215-7004-60104 936.63Utilities - Electric05/02/17- ELECTRICITY SVC114920IMPERIAL IRRIGATION DIST 215-7004-61116 421.88Utilities - Electric - Medians05/02/17- ELECTRICITY SVC114920IMPERIAL IRRIGATION DIST 215-7004-61117 13.46Supplies-Graffiti03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…215-7004-60423 37.91Materials04/21/17- IRRIGATION MATERIALS114943SMITH PIPE & SUPPLY CO 215-7004-60431 433.66Materials03/27/17- WELL LIGH/ELCTRICAL LANDSC…114959WALTERS WHOLESALE ELECTR…215-7004-60431 Fund 215 - LIGHTING & LANDSCAPING FUND Total:8,181.49 258 Demand Register Packet: APPKT01111 - JD 05/12/17 5/25/2017 4:44:18 PM Page 3 of 5 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 241 - HOUSING AUTHORITY 900.00Professional Services12/31/16-MOBILE HOME PARK APPRASIAL114934OVERLAND PACIFIC & CUTLER …241-9101-60103 566.45Operating Supplies04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 241-9101-60420 Fund 241 - HOUSING AUTHORITY Total:1,466.45 Fund: 270 - ART IN PUBLIC PLACES FUND 13.34APP Maintenace03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…270-0000-60683 23.14APP Maintenace03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…270-0000-60683 Fund 270 - ART IN PUBLIC PLACES FUND Total:36.48 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 5,969.96DesignEISENHOWER DRAINAGE PRJ 2015-12B114898BAKER, MICHAEL INTERNATIO…401-0000-60185 380.63Construction04/24/17-VIDEO CAMERA REPAIR114923ITERIS 401-0000-60188 3,354.99ConstructionSTEALTH BOX-RADAR COUNTING SYS114926KUSTOM SIGNALS INC 401-0000-60188 18.04Construction03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…401-0000-60188 32.95Construction03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…401-0000-60188 26.60Construction03/25-04/25/17-LOWES114928LOWE'S HOME IMPROVEMENT…401-0000-60188 5,244.02Retention Payable05/08/17- PO#93-FINAL RETENTION114950THREE PEAKS CORP 401-0000-20600 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:15,027.19 Fund: 501 - FACILITY & FLEET REPLACEMENT 9,059.54Vehicle Repair & Maintenance05/03/17- VEHICLE LEASE & MAINTANEN…114911ENTERPRISE FM TRUST 501-0000-60676 1,433.40Parts & Maintenance Supplies04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 501-0000-60675 2,499.45Parts & Maintenance Supplies04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 501-0000-60675 Fund 501 - FACILITY & FLEET REPLACEMENT Total:12,992.39 Fund: 502 - INFORMATION TECHNOLOGY 800.00Consultants04/2017- COUNCIL MTG VIDEO11489312MILESOUT.COM 502-0000-60104 753.62Copiers05/2017- CONTRACT CHARGES114903CANON FINANCIAL SERVICES, …502-0000-60662 1,572.94Copiers05/2017- CONTRACT CHARGES114903CANON FINANCIAL SERVICES, …502-0000-60662 13,050.00Consultants04/2017- RIM MANAGE AGREEMENT SVC114907CONVERGEONE, INC 502-0000-60104 175.00Consultants05/02/17-COUNCIL MTG VIDEO114908DESERT C.A.M INC 502-0000-60104 79.99Technical04/25-05/24/17- INTERNET SVC114913FRONTIER-INTERNET 502-0000-60108 132.53Machinery & Equipment03/21/17-COMPUTER SUPPLIES114932MONOPRICE INC 502-0000-80100 78.98Computers04/20/17- IT SUPPLIES114932MONOPRICE INC 502-0000-80103 1,905.84Computers04/27/17- CHROMEBOOKS114946STAPLES ADVANTAGE 502-0000-80103 2,230.62Technical04/23-05/22/17- PHONE LINES114953TPx COMMUNICATIONS 502-0000-60108 150.93Software Licenses04/2017- VISA CARD PAYMENT114960WELLS FARGO BUSINESS CARD 502-0000-60301 Fund 502 - INFORMATION TECHNOLOGY Total:20,930.45 Fund: 503 - PARK EQUIP & FACILITY FND 13,750.00Fritz Burns PoolFRITZ BURNS PARK POOL DECK RESTORAT…114939SHARK POOLS INC 503-0000-60680 Fund 503 - PARK EQUIP & FACILITY FND Total:13,750.00 Grand Total:160,096.56 259 Demand Register Packet: APPKT01111 - JD 05/12/17 5/25/2017 4:44:18 PM Page 4 of 5 Fund Summary Fund Expense Amount 101 - GENERAL FUND 86,160.62 201 - GAS TAX FUND 1,383.42 202 - LIBRARY & MUSEUM FUND 168.07 215 - LIGHTING & LANDSCAPING FUND 8,181.49 241 - HOUSING AUTHORITY 1,466.45 270 - ART IN PUBLIC PLACES FUND 36.48 401 - CAPITAL IMPROVEMENT PROGRAMS 15,027.19 501 - FACILITY & FLEET REPLACEMENT 12,992.39 502 - INFORMATION TECHNOLOGY 20,930.45 503 - PARK EQUIP & FACILITY FND 13,750.00 Grand Total:160,096.56 Account Summary Account Number Account Name Expense Amount 101-0000-20304 Sales Taxes Payable -209.62 101-0000-20915 Employee Computer Loan 1,707.44 101-0000-22830 Miscellaneous Deposits 100.00 101-0000-42300 Cash Over/Short 174.20 101-0000-42405 Garage Sale Permits 10.00 101-1001-60320 Travel & Training 65.43 101-1002-60420 Operating Supplies 123.32 101-1004-60104 Consultants 71.50 101-1004-60320 Travel & Training 102.95 101-1004-60450 Advertising 550.00 101-1006-60102 Administration 39.00 101-1006-60103 Professional Services 101.03 101-1006-60125 Temporary Agency Servic…1,198.80 101-1006-60320 Travel & Training 374.00 101-1006-60400 Office Supplies 91.79 101-1006-60410 Printing 2,662.32 101-1007-60402 Forms 363.31 101-2001-60109 LQ Police Volunteers 68.67 101-2001-60168 School Officer 17,995.92 101-2001-60174 Blood/Alcohol Testing 80.00 101-2001-60175 Special Enforcement Funds 804.00 101-2001-60176 Sheriff - Other 170.00 101-2002-60116 Pest Control 150.00 101-2002-60320 Travel & Training 340.20 101-2002-61100 Utilities - Gas 27.43 101-2002-61101 Utilities - Electricity 677.49 101-2002-61300 Utilities - Telephone 1,058.55 101-3002-60107 Instructors 1,321.00 101-3002-60420 Operating Supplies 745.89 101-3003-60149 Special Events 135.93 101-3005-60117 Civic Center Lake Mainten…2,895.00 101-3005-60320 Travel & Training 522.19 101-3005-60400 Office Supplies 353.92 101-3005-60423 Supplies-Graffiti 189.77 101-3005-60424 Materials - Irrigation & Li…600.31 101-3005-61108 Utilities - Electric - Colonel…379.15 101-3005-61110 Utilities - Electric - Adams…56.36 101-3005-61201 Utilities - Water -Monticel…994.64 101-3005-61207 Utilities - Water -Pioneer …544.37 101-3005-61303 Phone - Sports Complex 34.21 101-3007-60461 Marketing & Tourism Pro…2,427.92 101-3008-60116 Pest Control 61.00 101-3008-60320 Travel & Training 507.00 101-3008-60432 Small Tools/Equipment 311.80 101-3008-60691 Repair & Maintenance 289.29 260 Demand Register Packet: APPKT01111 - JD 05/12/17 5/25/2017 4:44:18 PM Page 5 of 5 Account Summary Account Number Account Name Expense Amount 101-6001-60104 Consultants 542.50 101-6004-60425 Supplies - Field 321.49 101-7002-60320 Travel & Training 25.00 101-7002-60420 Operating Supplies 40.65 101-7003-60320 Travel & Training 338.00 101-7003-60400 Office Supplies 15.31 101-7006-60144 Contract Traffic Engineer 19,142.25 101-7006-60146 PM 10 - Dust Control 23,963.58 101-7006-60320 Travel & Training 450.00 101-7006-60427 Safety Gear 54.36 201-7003-60420 Operating Supplies 26.79 201-7003-60429 Traffic Control Signs 1,309.13 201-7003-60431 Materials 8.25 201-7003-60432 Small Tools/Equipment 39.25 202-3004-60691 Repair & Maintenance 37.69 202-3006-60116 Pest Control 47.00 202-3006-80100 Machinery & Equipment 83.38 215-7004-60104 Professional Services 6,100.00 215-7004-60423 Supplies-Graffiti 13.46 215-7004-60431 Materials 471.57 215-7004-61116 Utilities - Electric 936.63 215-7004-61117 Utilities - Electric - Media…421.88 215-7004-61211 Utilities - Water - Medians 237.95 241-9101-60103 Professional Services 900.00 241-9101-60420 Operating Supplies 566.45 270-0000-60683 APP Maintenace 36.48 401-0000-20600 Retention Payable 5,244.02 401-0000-60185 Design 5,969.96 401-0000-60188 Construction 3,813.21 501-0000-60675 Parts & Maintenance Supp…3,932.85 501-0000-60676 Vehicle Repair & Mainten…9,059.54 502-0000-60104 Consultants 14,025.00 502-0000-60108 Technical 2,310.61 502-0000-60301 Software Licenses 150.93 502-0000-60662 Copiers 2,326.56 502-0000-80100 Machinery & Equipment 132.53 502-0000-80103 Computers 1,984.82 503-0000-60680 Fritz Burns Pool 13,750.00 Grand Total:160,096.56 Project Account Summary Project Account Key Expense Amount **None**145,087.41 151612D 5,969.96 1617TMICT 3,795.17 201605RP 5,244.02 Grand Total:160,096.56 261 5/19/2017 1:30:38 PM Page 1 of 7 Demand Register City of La Quinta, CA Packet: APPKT01118 - DA 05/19/17 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND 1,198.80Temporary Agency Services04/28/17- TEMP ACCOUNTANT114963ACCOUNTEMPS 101-1006-60125 1,198.80Temporary Agency Services05/05/17- TEMP ACCOUNTANT114963ACCOUNTEMPS 101-1006-60125 695.00Lot Cleaning04/27/17- VACANT LOT CLEANING114965ALLEGIANT PROPERTY WATCH 101-6004-60120 362.14Operating Supplies04/25/17- FITPASS CARDS114966ALPHA CARD 101-3002-60420 120.00Blood/Alcohol Testing04/15/17- BLOOD DRAW114967AMERICAN FORENSIC NURSES …101-2001-60174 171.97Janitorial04/27-05/11/17- JANITORIAL SUPPLIES114968AMERIPRIDE SERVICES INC 101-3008-60115 214.26Travel & Training05/07-05/10/17- TYLER CONFERENCE 2017114969ARMENDARIZ, DERRICK 101-1006-60320 170.13Travel & Training05/10/17- SECTION 37 CALTRANS WORKS…114971AYON, UBALDO 101-7006-60320 87.50Instructors05/12/17- FARAS FOOD114972BAUER, FARA 101-3002-60107 236.40Instructors05/11/17- PILATES114973BERETTO, LUCILLA 101-3002-60107 1,057.00Blood/Alcohol Testing04/12/17- BLOOD DRAW114974BIO-TOX LABORATORIES 101-2001-60174 39.00Blood/Alcohol Testing04/12/17- BLOOD DRAW114974BIO-TOX LABORATORIES 101-2001-60174 615.00Materials - Irrigation & Light R…05/10/17- COVE OASIS ALUMAWOOD REP…114976C & S PATIO COVERS 101-3005-60424 196.05LT Care Insurance PayLONG TERM CARE114979CALPERS LONG-TERM CARE P…101-0000-20949 176.86Special Events04/28/17- CITY PICNIC SUPPLIES114980CAPITAL ONE COMMERCIAL 101-3003-60149 153.60Instructors05/11/17- DANCE PLAY PRETEND114981CASSEL, LLORA 101-3002-60107 1,650.00Travel & Training04/17/17- STATE OF THE CITY ATTENDEES114982CHAMBER, THE 101-1001-60320 65.00Travel & Training05/12/17- ALL VALLEY LEGISLATIVE MEETI…114982CHAMBER, THE 101-1001-60320 10,000.00Professional ServicesMONTHLY GEM NEWSLETTER114982CHAMBER, THE 101-1002-60103 7,036.83Dental Insurance Pay05/2017- DENTAL INSURANCE114983CIGNA HEALTH CARE 101-0000-20943 508.00MSHCP Mitigation Fee04/2017- MIT FEE C.V MSHCP PROGRAM114985COACHELLA VALLEY CONSERV…101-0000-20310 -5.08CVMSHCP Admin Fee04/2017- MIT FEE C.V MSHCP PROGRAM114985COACHELLA VALLEY CONSERV…101-0000-43631 859.38Utilities - Water05/10/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…101-2002-61200 79.37Utilities - Water -Fritz Burns pa…05/10/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…101-3005-61204 96.91Utilities - Water05/10/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…101-3008-61200 72.41Utilities - Water05/09/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…101-2002-61200 783.71Utilities - Water -Monticello Pa…05/09/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…101-3005-61201 18.28Utilities - Water -Seasons Park05/09/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…101-3005-61208 134.67Utilities - Water -Community P…05/09/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…101-3005-61209 351.65Utilities - Water -Desert Pride05/09/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…101-3005-61206 29.14PM 10 - Dust Control05/10/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…101-7006-60146 91.00Instructors05/11/17- SUN STYLE TAI CHI114987COHEN, ANN MARIE 101-3002-60107 28,575.00TechnicalPARK LANDSCAPE MAINT PRJ 2014-15114988CONSERVE LANDCARE 101-3005-60108 127.77Citywide Conf Room Supplies05/09/17- COFFEE SUPPLIES114990DAIOHS FIRST CHOICE SERVICES 101-1007-60403 143.18Citywide Conf Room Supplies05/09/17- COFFEE SUPPLIES114990DAIOHS FIRST CHOICE SERVICES 101-1007-60403 1,853.50Temporary Use Permit04/17/17- DUPONT ESTATE TUP FEE REFU…114991DANIELS, ROBERT 101-0000-42439 471.00Administrative Citation Services04/2017- CITATION PROCESSING SERVICES114992DATA TICKET, INC.101-6004-60111 413.60Administrative Citation Services04/2017- DAILY CITATION PROCESSING114992DATA TICKET, INC.101-6004-60111 13,676.49Animal Shelter Contract Service04/2017- ANIMAL SERVICES114993DEPARTMENT OF ANIMAL SER…101-6004-60197 13,114.25State Unemployment Insurance05/09/17- 1ST QTR SUI PAYMENT QE 3/31…114994EMPLOYMENT DEVELOPMENT…101-1004-50244 125.00Garnishments PayableGARNISHMENT114995FRANCHISE TAX BOARD 101-0000-20985 42.77LQ Park Building/WF05/2017- LQ PARK PHONE114996FRONTIER COMMUNICATIONS…101-3005-60554 70.47Utilities - Gas03/28-04/26/17- FS #93 GAS114999GAS COMPANY, THE 101-2002-61100 63.36Repair & Maintenance05/09/17- VALVE KEYS115000HIGH TECH IRRIGATION INC 101-3008-60691 50.00Miscellaneous Deposits05/08/17- FACILITY PARK REFUND115002HOOK, ELIZABETH VAN 101-0000-22830 345.60Instructors05/11/17- PERSONAL TRAINER115004KEPLER, KRISTOFFER 101-3002-60107 200.00Special Events04/29/17- PERFORMANCE FOR LQ PICNIC115005KLEIN, SANDRA 101-3003-60149 750.00Prepaid Expense08/26/17- SUMMER GOLF LEAGUE BANQ…115006LA QUINTA RESORT & PGA WE…101-0000-13600 162.31Operating Supplies05/06/17- GOLD MUSIC MEDALS115008MCDOWELL AWARDS 101-3002-60420 43.20Instructors05/11/17- ZUMBA SATURDAY115009MISELL, STACY 101-3002-60107 -8.36Sales Taxes Payable04/13/17- MONITOR/SPEAKERS AND MO…115010MONOPRICE INC 101-0000-20304 -0.60Sales Taxes Payable05/09/17- MONITOR STAND TAX115010MONOPRICE INC 101-0000-20304 992.80Repair & Maintenance02/23/17- MENS RESTROOM SERVICE115013MR ROOTER PLUMBING 101-3008-60691 262 Demand Register Packet: APPKT01118 - DA 05/19/17 5/19/2017 1:30:38 PM Page 2 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 725.18Repair & Maintenance03/10/17- MAIN LINE CLOG REPAIR115013MR ROOTER PLUMBING 101-3008-60691 989.72Repair & Maintenance03/13/17- MAINT RESTROOM SERVICE CA…115013MR ROOTER PLUMBING 101-3008-60691 278.40Special Enforcement Funds04/13/17- TICKET WRITER RECEIPT LABELS115014MSA SYSTEMS INC 101-2001-60175 227.07Forms05/02/17- CITY WIDE COPY PAPER115016OFFICE DEPOT 101-1007-60402 90.39Office Supplies05/05/17- OFFICE SUPPLIES115016OFFICE DEPOT 101-1006-60400 672.00Temporary Agency Services04/28/17- TEMP PERMIT TECH115017OFFICE TEAM 101-6006-60125 100.00Cash Over/Short05/02/17- REFUND OVERPAYMENT BUS LI…115018PACIFIC TENNIS COURTS INC 101-0000-42300 394.00Operating Supplies05/25/17- WC LUNCHEON115019PANERA BREAD 101-3002-60420 25.05Credit Card Fees04/2017- CREDIT CARD FEES115020PLUG & PAY TECHNOLOGIES I…101-3003-60122 67.97Printing05/08/17- FAC NAMEPLATES115021POWERS AWARDS INC 101-1006-60410 102.00Cash Over/Short04/27/17- REFUND OVERPAYMENT STVR115023RESORT RENTAL, LLC 101-0000-42300 821.92Sheriff - Other03/2017- POLICE RADIOS115024RIVERSIDE COUNTY INFORMAT…101-2001-60176 600,355.56Sheriff - Patrol02/02-03/01/17- SHERIFF PATROL115025RIVERSIDE COUNTY SHERIFF D…101-2001-60161 12,632.27Police Overtime02/02-03/01/17- PATROL DUTY OT115025RIVERSIDE COUNTY SHERIFF D…101-2001-60162 167,830.45Target Team02/02-03/01/17- TARGET TEAM115025RIVERSIDE COUNTY SHERIFF D…101-2001-60163 40,768.14Community Services Officer02/02-03/01/17- COMMUNITY SVC OFFIC…115025RIVERSIDE COUNTY SHERIFF D…101-2001-60164 11,675.20Gang Task Force02/02-03/01/17- GANG TASK FORCE115025RIVERSIDE COUNTY SHERIFF D…101-2001-60166 11,675.20Narcotics Task Force02/02-03/01/17- NARCOTICS TASK FORCE115025RIVERSIDE COUNTY SHERIFF D…101-2001-60167 77,209.82Motor Officer02/02-03/01/17- MOTOR OFFICER115025RIVERSIDE COUNTY SHERIFF D…101-2001-60169 32,048.00Dedicated Sargeant02/02-03/01/17- DEDICATED SARGEANT115025RIVERSIDE COUNTY SHERIFF D…101-2001-60170 18,120.00Dedicated Lieutenant02/02-03/01/17- DEDICATED LIEUTENANT115025RIVERSIDE COUNTY SHERIFF D…101-2001-60171 32,368.97Sheriff - Mileage02/02-03/01/17- SHERIFF MILEAGE115025RIVERSIDE COUNTY SHERIFF D…101-2001-60172 200.00Garnishments PayableGARNISHMENT115026RIVERSIDE DEPARTMENT OF C…101-0000-20985 2,569.00Instructors05/11/17- TAEKWONDO115027ROJAS, MIGUEL ANGEL 101-3002-60107 94.50Instructors02/19/17- INSTRUCTOR PAYMENT115028RUDE, SHARON 101-3002-60107 123.20Instructors05/11/17- ZUMBA MORNING115029SALCEDO, KATHLEEN 101-3002-60107 72.00Rental Expense04/27/17- RENTAL EXPENSE SECURITY115031SECURITAS SECURITY SERVICES…101-3003-60157 193.20Instructors05/11/17- WEST COAST SWING115032SHIRY, KENNETH 101-3002-60107 616.00Instructors05/11/17- BALLROOM DANCING115033SHIRY, TERESA 101-3002-60107 85.43Special Events04/11/17- CITY PICNIC SUPPLIES115034SMART & FINAL 101-3003-60149 179.81Operating Supplies04/19/17- WC LUCHEON SUPPLIES115034SMART & FINAL 101-3002-60420 35.95Office Supplies03/08/17- OFFICE SUPPLIES115034SMART & FINAL 101-6001-60400 77.99Special Events04/08/17- OPHELIA RECEPTION SUPPLIES115034SMART & FINAL 101-3003-60149 246.47Operating Supplies03/14/17- WC LUNCHEON SUPPLIES115034SMART & FINAL 101-3002-60420 121.60Instructors05/11/17- PERSONAL TRAINER115035SNYDER, JANICE 101-3002-60107 199.00Membership Dues07/01/17-06/30/18- ANN'L MEMBERSHIP115036SOCIETY FOR HUMAN RESOUR…101-1004-60351 125.47Repair & Maintenance07/2016-06/2017- AQMD FEE115037SOUTH COAST AIR QUALITY M…101-3008-60691 544.35Life Insurance Pay05/2017- LIFE INSURANCE115038STANDARD INSURANCE COMP…101-0000-20947 4,146.94Disability Insurance Pay05/2017- STD/LTD INSURANCE115038STANDARD INSURANCE COMP…101-0000-20955 437.45Add'l Life Insurance Pay05/2017- ADD'L LIFE INSURANCE115039STANDARD INSURANCE COMP…101-0000-20948 -31.53Office Supplies04/27/17- CREDIT MEMO SHARPIE PENS115040STAPLES ADVANTAGE 101-3002-60400 43.25Office Supplies04/27/17- OFFICE SUPPLIES115040STAPLES ADVANTAGE 101-3002-60400 31.53Office Supplies04/28/17- SHARPIE PENS115040STAPLES ADVANTAGE 101-3002-60400 1,846.50Due to SunLine04/2017- SUN BUS PASSES115041SUNLINE TRANSIT AGENCY 101-0000-20305 3.16Utilities - Cable05/05-06/04/17- ADD'L OUTLETS FS#32115043TIME WARNER CABLE 101-2002-61400 373.80Instructors05/11/17- SUNSET YOGA115046TRUE, ARTHUR ALLEN 101-3002-60107 150.00Pest Control04/25/147- BEE REMOVAL SERVICE115047TRULY NOLEN INC 101-3008-60116 57.00United Way DeductionsCONTRIBUTION115049UNITED WAY OF THE DESERT 101-0000-20981 204.24Garnishments PayableGARNISHMENT115050US DEPARTMENT OF EDUCATI…101-0000-20985 43.96Utilities - Telephone03/11-04/10/17- MOBILE TICKET WRITERS115051VERIZON WIRELESS 101-2001-61300 491.75Instructors05/11/17- GENTLE FLEX YOGA115052VIELHARBER, KAREN 101-3002-60107 1,484.32Vision Insurance Pay05/2017- VISION SERVICE115053VISION SERVICE PLAN - (CA)101-0000-20945 -44.28Sales Taxes Payable04/04-04/24/17- PRODUCTION EQUIP/C…115054WELLS FARGO BUSINESS CARD 101-0000-20304 40.71Travel & Training04/04-04/24/17- UPDATE WITH MAYOR115054WELLS FARGO BUSINESS CARD 101-1001-60320 550.28Marketing & Tourism Promoti…04/04-04/24/17- PRODUCTION EQUIP/C…115054WELLS FARGO BUSINESS CARD 101-3007-60461 Fund 101 - GENERAL FUND Total:1,114,165.48 Fund: 201 - GAS TAX FUND 129.53Small Tools/Equipment05/01/17- GAS TRIMMER REPAIR115012MOWERS PLUS INC 201-7003-60432 479.59Traffic Control Signs05/03/17- SIGN POST115044TOPS'N BARRICADES INC 201-7003-60429 207.98Traffic Control Signs05/03/17- SIGN & POST ANCHOR115044TOPS'N BARRICADES INC 201-7003-60429 263 Demand Register Packet: APPKT01118 - DA 05/19/17 5/19/2017 1:30:38 PM Page 3 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 153.66Traffic Control Signs05/03/17- SIGN REFLECTORS & RIVETS115044TOPS'N BARRICADES INC 201-7003-60429 125.06Traffic Control Signs05/03/17- SIGN RIVETS115044TOPS'N BARRICADES INC 201-7003-60429 52.04Traffic Control Signs05/05/17- PARKING ANYTIME SIGN115044TOPS'N BARRICADES INC 201-7003-60429 199.88Traffic Control Signs05/10/17- SIGN POST & PUNCH ANCHOR115044TOPS'N BARRICADES INC 201-7003-60429 91.02Traffic Control Signs05/10/17- SIGNAL AHEAD SIGN115044TOPS'N BARRICADES INC 201-7003-60429 30.00Materials05/01/17- TICKET CHARGES 20115048UNDERGROUND SERVICE ALERT 201-7003-60431 Fund 201 - GAS TAX FUND Total:1,468.76 Fund: 202 - LIBRARY & MUSEUM FUND 129.79Utilities - Water05/09/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…202-3006-61200 1,575.00Landscape ContractPARK LANDSCAPE MAINT PRJ 2014-15114988CONSERVE LANDCARE 202-3004-60112 1,115.00Landscape ContractPARK LANDSCAPE MAINT PRJ 2014-15114988CONSERVE LANDCARE 202-3006-60112 2,750.00Property02/22/17- MARKET VALUE STUDY115007LIDGARD AND ASSOCIATES, IN…202-3004-60443 Fund 202 - LIBRARY & MUSEUM FUND Total:5,569.79 Fund: 212 - SLESF (COPS) FUND 14,715.96COPS Burglary/Theft Preventi…02/02-03/01/17- COPS BURGLARY/THEFT …115025RIVERSIDE COUNTY SHERIFF D…212-0000-60179 Fund 212 - SLESF (COPS) FUND Total:14,715.96 Fund: 215 - LIGHTING & LANDSCAPING FUND 114.00Materials05/02/17- LANDSCAPE MATERIALS114970ATCO MANUFACTURING COM…215-7004-60431 170.92Materials05/04/17- INSECT REPELLENT114970ATCO MANUFACTURING COM…215-7004-60431 253.41Materials04/29/17- PVA CONTROL TOWELS114978CALIFORNIA CONTRACTORS S…215-7004-60431 1,285.61Utilities - Water - Medians05/09/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…215-7004-61211 606.81Utilities - Water - Medians05/10/17- WATER SERVICE114986COACHELLA VALLEY WATER DI…215-7004-61211 7,665.00TechnicalPARK LANDSCAPE MAINT PRJ 2014-15114988CONSERVE LANDCARE 215-7004-60189 945.00Palm Trees05/05/17- TREE MAINT REMOVAL114988CONSERVE LANDCARE 215-7004-60673 143.12Utilities - Electric05/09/17- ELECTRICITY SERVICE115003IMPERIAL IRRIGATION DIST 215-7004-61116 25.04Utilities - Electric - Medians05/09/17- ELECTRICITY SERVICE115003IMPERIAL IRRIGATION DIST 215-7004-61117 269.72Materials05/09/17- CHAINSAW CHAINS115012MOWERS PLUS INC 215-7004-60431 Fund 215 - LIGHTING & LANDSCAPING FUND Total:11,478.63 Fund: 218 - CV VIOLENT CRIME TASK FORCE 53.34Maint.-Other Equipment03/23-04/22/17- SVC SUPPLIES114964ADVANCED IMAGING SOLUTI…218-0000-60665 53.54Maint.-Other Equipment04/23-05/22/17- SVC SUPPLIES114964ADVANCED IMAGING SOLUTI…218-0000-60665 53.73Maint.-Other Equipment02/23-03/22/17- SVC SUPPLIES114964ADVANCED IMAGING SOLUTI…218-0000-60665 34.98Utilities - Telephone03/12-04/11/17- CELLPHONE SVC115015NEXTEL GANG TASK FORCE 218-0000-61300 80.00Operating Expenses05/05/17- EXPENSE VOUCHER115042TAPP, MICHAEL 218-0000-60420 Fund 218 - CV VIOLENT CRIME TASK FORCE Total:275.59 Fund: 224 - TUMF FUND 1,837.44TUMF Payable to CVAG04/2017- TUMF FEE114984COACHELLA VALLEY ASSOC OF…224-0000-20320 Fund 224 - TUMF FUND Total:1,837.44 Fund: 241 - HOUSING AUTHORITY 4,968.75Professional Services04/30/17- HOUSING CONSULTANT SVC114977CAHA, BECKY 241-9101-60103 Fund 241 - HOUSING AUTHORITY Total:4,968.75 Fund: 270 - ART IN PUBLIC PLACES FUND 1,483.83APP Maintenace04/21/17- LIBRARY ART EXHIBIT FRAMES115001HOBBY LOBBY STORES, INC 270-0000-60683 Fund 270 - ART IN PUBLIC PLACES FUND Total:1,483.83 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 7,457.00DesignCIVIC CENTER POTHOLING PROJECT114989CV PIPELINE CORP 401-0000-60185 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:7,457.00 Fund: 501 - FACILITY & FLEET REPLACEMENT 3,218.08Motorcycle Repair & Mainten…04/25/17- 2016 BMW MOTO REPAIR114975BMW MOTORCYCLES OF RIVE…501-0000-60679 1,097.34Fuel & Oil05/01/17- VEHICLE FUEL114998FUELMAN 501-0000-60674 125.68Parts & Maintenance Supplies05/05/17- TRAILER TIRE115011MOUNTAIN VIEW TIRE 501-0000-60675 601.00Car Washes05/14/17- VEHICLE CAR WASHES115022RAN AUTO DETAIL 501-0000-60148 90.00Motorcycle Repair & Mainten…05/05/17- 06 HONDA MOTO REPAIR115030SAM'S CYCLE SERVICE 501-0000-60679 43.71Motorcycle Repair & Mainten…05/05/17- 2016 BMW MOTO REPAIR115030SAM'S CYCLE SERVICE 501-0000-60679 706.01Motorcycle Repair & Mainten…03/28/17- 06 HONDA MOTO REPAIR115030SAM'S CYCLE SERVICE 501-0000-60679 973.05Motorcycle Repair & Mainten…05/05/17- 06 HONDA MOTO REPAIR115030SAM'S CYCLE SERVICE 501-0000-60679 264 Demand Register Packet: APPKT01118 - DA 05/19/17 5/19/2017 1:30:38 PM Page 4 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 1,295.61Fuel & Oil05/01/17- UNLEAD/DIESEL FUEL115045TOWER ENERGY GROUP 501-0000-60674 Fund 501 - FACILITY & FLEET REPLACEMENT Total:8,150.48 Fund: 502 - INFORMATION TECHNOLOGY 167.30Technical05/04-06/03/17- PHONE SERVICE114997FRONTIER-INTERNET 502-0000-60108 471.85Machinery & Equipment04/13/17- MONITOR/SPEAKERS AND MO…115010MONOPRICE INC 502-0000-80100 43.67Machinery & Equipment05/09/17- MONITOR STAND115010MONOPRICE INC 502-0000-80100 126.24Utilities - Cable04/15-05/14- CABLE SERVICE115043TIME WARNER CABLE 502-0000-61400 50.00Software Licenses04/04-04/24/17- BASECAMP115054WELLS FARGO BUSINESS CARD 502-0000-60301 Fund 502 - INFORMATION TECHNOLOGY Total:859.06 Grand Total:1,172,430.77 265 Demand Register Packet: APPKT01118 - DA 05/19/17 5/19/2017 1:30:38 PM Page 5 of 7 Fund Summary Fund Expense Amount 101 - GENERAL FUND 1,114,165.48 201 - GAS TAX FUND 1,468.76 202 - LIBRARY & MUSEUM FUND 5,569.79 212 - SLESF (COPS) FUND 14,715.96 215 - LIGHTING & LANDSCAPING FUND 11,478.63 218 - CV VIOLENT CRIME TASK FORCE 275.59 224 - TUMF FUND 1,837.44 241 - HOUSING AUTHORITY 4,968.75 270 - ART IN PUBLIC PLACES FUND 1,483.83 401 - CAPITAL IMPROVEMENT PROGRAMS 7,457.00 501 - FACILITY & FLEET REPLACEMENT 8,150.48 502 - INFORMATION TECHNOLOGY 859.06 Grand Total:1,172,430.77 Account Summary Account Number Account Name Expense Amount 101-0000-13600 Prepaid Expense 750.00 101-0000-20304 Sales Taxes Payable -53.24 101-0000-20305 Due to SunLine 1,846.50 101-0000-20310 MSHCP Mitigation Fee 508.00 101-0000-20943 Dental Insurance Pay 7,036.83 101-0000-20945 Vision Insurance Pay 1,484.32 101-0000-20947 Life Insurance Pay 544.35 101-0000-20948 Add'l Life Insurance Pay 437.45 101-0000-20949 LT Care Insurance Pay 196.05 101-0000-20955 Disability Insurance Pay 4,146.94 101-0000-20981 United Way Deductions 57.00 101-0000-20985 Garnishments Payable 529.24 101-0000-22830 Miscellaneous Deposits 50.00 101-0000-42300 Cash Over/Short 202.00 101-0000-42439 Temporary Use Permit 1,853.50 101-0000-43631 CVMSHCP Admin Fee -5.08 101-1001-60320 Travel & Training 1,755.71 101-1002-60103 Professional Services 10,000.00 101-1004-50244 State Unemployment Insu…13,114.25 101-1004-60351 Membership Dues 199.00 101-1006-60125 Temporary Agency Servic…2,397.60 101-1006-60320 Travel & Training 214.26 101-1006-60400 Office Supplies 90.39 101-1006-60410 Printing 67.97 101-1007-60402 Forms 227.07 101-1007-60403 Citywide Conf Room Suppl…270.95 101-2001-60161 Sheriff - Patrol 600,355.56 101-2001-60162 Police Overtime 12,632.27 101-2001-60163 Target Team 167,830.45 101-2001-60164 Community Services Offic…40,768.14 101-2001-60166 Gang Task Force 11,675.20 101-2001-60167 Narcotics Task Force 11,675.20 101-2001-60169 Motor Officer 77,209.82 101-2001-60170 Dedicated Sargeant 32,048.00 101-2001-60171 Dedicated Lieutenant 18,120.00 101-2001-60172 Sheriff - Mileage 32,368.97 101-2001-60174 Blood/Alcohol Testing 1,216.00 101-2001-60175 Special Enforcement Funds 278.40 101-2001-60176 Sheriff - Other 821.92 101-2001-61300 Utilities - Telephone 43.96 101-2002-61100 Utilities - Gas 70.47 101-2002-61200 Utilities - Water 931.79 101-2002-61400 Utilities - Cable 3.16 266 Demand Register Packet: APPKT01118 - DA 05/19/17 5/19/2017 1:30:38 PM Page 6 of 7 Account Summary Account Number Account Name Expense Amount 101-3002-60107 Instructors 5,540.35 101-3002-60400 Office Supplies 43.25 101-3002-60420 Operating Supplies 1,344.73 101-3003-60122 Credit Card Fees 25.05 101-3003-60149 Special Events 540.28 101-3003-60157 Rental Expense 72.00 101-3005-60108 Technical 28,575.00 101-3005-60424 Materials - Irrigation & Li…615.00 101-3005-60554 LQ Park Building/WF 42.77 101-3005-61201 Utilities - Water -Monticel…783.71 101-3005-61204 Utilities - Water -Fritz Bur…79.37 101-3005-61206 Utilities - Water -Desert Pr…351.65 101-3005-61208 Utilities - Water -Seasons …18.28 101-3005-61209 Utilities - Water -Commun…134.67 101-3007-60461 Marketing & Tourism Pro…550.28 101-3008-60115 Janitorial 171.97 101-3008-60116 Pest Control 150.00 101-3008-60691 Repair & Maintenance 2,896.53 101-3008-61200 Utilities - Water 96.91 101-6001-60400 Office Supplies 35.95 101-6004-60111 Administrative Citation Se…884.60 101-6004-60120 Lot Cleaning 695.00 101-6004-60197 Animal Shelter Contract S…13,676.49 101-6006-60125 Temporary Agency Servic…672.00 101-7006-60146 PM 10 - Dust Control 29.14 101-7006-60320 Travel & Training 170.13 201-7003-60429 Traffic Control Signs 1,309.23 201-7003-60431 Materials 30.00 201-7003-60432 Small Tools/Equipment 129.53 202-3004-60112 Landscape Contract 1,575.00 202-3004-60443 Property 2,750.00 202-3006-60112 Landscape Contract 1,115.00 202-3006-61200 Utilities - Water 129.79 212-0000-60179 COPS Burglary/Theft Prev…14,715.96 215-7004-60189 Technical 7,665.00 215-7004-60431 Materials 808.05 215-7004-60673 Palm Trees 945.00 215-7004-61116 Utilities - Electric 143.12 215-7004-61117 Utilities - Electric - Media…25.04 215-7004-61211 Utilities - Water - Medians 1,892.42 218-0000-60420 Operating Expenses 80.00 218-0000-60665 Maint.-Other Equipment 160.61 218-0000-61300 Utilities - Telephone 34.98 224-0000-20320 TUMF Payable to CVAG 1,837.44 241-9101-60103 Professional Services 4,968.75 270-0000-60683 APP Maintenace 1,483.83 401-0000-60185 Design 7,457.00 501-0000-60148 Car Washes 601.00 501-0000-60674 Fuel & Oil 2,392.95 501-0000-60675 Parts & Maintenance Supp…125.68 501-0000-60679 Motorcycle Repair & Main…5,030.85 502-0000-60108 Technical 167.30 502-0000-60301 Software Licenses 50.00 502-0000-61400 Utilities - Cable 126.24 502-0000-80100 Machinery & Equipment 515.52 Grand Total:1,172,430.77 267 Demand Register Packet: APPKT01118 - DA 05/19/17 5/19/2017 1:30:38 PM Page 7 of 7 Project Account Summary Project Account Key Expense Amount **None**1,164,973.77 201606D 7,457.00 Grand Total:1,172,430.77 268 5/25/2017 7:34:26 PM Page 1 of 7 Demand Register City of La Quinta, CA Packet: APPKT01125 - DA 05/26/17 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 101 - GENERAL FUND -26.53Sales Taxes Payable05/16/17- WC GYM WIPES TAX1150552XL CORPORATION 101-0000-20304 432.16Operating Supplies05/16/17- WC GYM WIPES1150552XL CORPORATION 101-3002-60420 1,168.83Temporary Agency Services05/12/17- TEMP ACCOUNTANT115056ACCOUNTEMPS 101-1006-60125 40.00Fitness Membership Reimburs…05/12/17- FITPASS REIMB115058AYON, UBALDO 101-1004-50252 7,196.50Recruiting/Pre-EmploymentDESIGN & DEV DIRECTOR RECRUITMENT115059BLACK & COMPANY LLC, TERI 101-1004-60129 36.00Cash Over/Short04/19/17- TOT OVERPAYMENT115060BOLLAY, LINDA 101-0000-42300 400.00Membership Dues05/23/17- CCMF MEMBERSHIP 17/18115061CALIFORNIA CITY MANAGEME…101-1002-60351 100.00Miscellaneous Deposits05/15/17- FACILITY RENTAL REFUND115062CANDACE BEAN REFLECTION F…101-0000-22830 250.00Marketing & Tourism Promoti…05/2017- COPYWRITING SERVICES115063CARTER, ANDREA & ASSOCIAT…101-3007-60461 5,000.00Professional ServicesMONTHLY GEM NEWSLETTER115064CHAMBER, THE 101-1002-60103 234.17Utilities - Water05/15/17- WATER SERVICE115065COACHELLA VALLEY WATER DI…101-2002-61200 89.86Utilities - Water -Eisenhower P…05/15/17- WATER SERVICE115065COACHELLA VALLEY WATER DI…101-3005-61203 93.70Utilities - Water -Velasco Park05/15/17- WATER SERVICE115065COACHELLA VALLEY WATER DI…101-3005-61205 3.25Cash Over/Short04/18/17- TOT OVERPAYENT115066COLE, CAROLYN 101-0000-42300 1,782.90Election Deposit11/2016- CANDIDATE STATEMENTS115068COUNTY OF RIVERSIDE 101-0000-22835 56,752.00Professional Services11/2016- ELECTION SERVICES115068COUNTY OF RIVERSIDE 101-1005-60103 120.00Art Event04/01/17- 19TH HOLE BLOCK PARTY ARTIST115069CURLEY, SHAWN 101-3001-60512 17,244.27Prepaid Expense05/01/17-04/30/18- LEASE AGREEMENT P…115070DELL FINANCIAL SERVICES 101-0000-13600 735.00Plan ChecksBUILDING PLAN REVIEW & INSPECTION S…115074ESGIL CORPORATION 101-6003-60118 179.30Election Deposit05/23/17- CANDIDATES STATEMENT REF…115075EVANS, LINDA 101-0000-22835 178.06Election Deposit05/23/17- CANDIDATES STATEMENT REF…115076FITZPATRICK, KATHLEEN 101-0000-22835 185.06Election Deposit05/23/17- CANDIDATES STATEMENT REF…115077FRANKLIN, KRISTY 101-0000-22835 750.00AdvertisingSUBSCRIPTION SERVICES115081GOVERNMENTJOBS.COM INC.101-1004-60450 8,511.06Marketing & Tourism Promoti…DIGITAL MARKETING SERVICES115082GRAPHTEK INTERACTIVE 101-3007-60461 450.00Consultants05/03/17- S/T VACATION RENTAL LOGO115083HASAS, PAUL 101-6001-60104 28.22Volunteers - Fire03/28-04/13/17- STEP STOOL115085HOME DEPOT CREDIT SERVICES 101-2002-60110 457.80Fire Station03/28-04/13/17- FIRE STATION SUPPLIES115085HOME DEPOT CREDIT SERVICES 101-2002-60670 98.81Operating Supplies03/28-04/13/17- OPERATING SUPPLIES115085HOME DEPOT CREDIT SERVICES 101-3002-60420 36.72Supplies-Graffiti03/28-04/13/17- STRAPS & SUPPLIES115085HOME DEPOT CREDIT SERVICES 101-3005-60423 22.39Supplies-Graffiti03/28-04/13/17- STUCCO115085HOME DEPOT CREDIT SERVICES 101-3005-60423 197.58Supplies-Graffiti03/28-04/13/17- PAINT & SUPPLIES115085HOME DEPOT CREDIT SERVICES 101-3005-60423 28.67Supplies-Graffiti03/28-04/13/17- BRUSH & SPRAY BOTTLE115085HOME DEPOT CREDIT SERVICES 101-3005-60423 59.57Supplies-Graffiti03/28-04/13/17- TOWELS & BRUSHS115085HOME DEPOT CREDIT SERVICES 101-3005-60423 61.89Materials - Irrigation & Light R…03/28-04/13/17- MATERIALS115085HOME DEPOT CREDIT SERVICES 101-3005-60424 10.74Small Tools/Equipment03/28-04/13/17- WRENCH115085HOME DEPOT CREDIT SERVICES 101-3005-60432 724.89Small Tools/Equipment03/28-04/13/17- HAMMER DRILL & BITS115085HOME DEPOT CREDIT SERVICES 101-3005-60432 86.08Repair & Maintenance03/28-04/13/17- SHELFS115085HOME DEPOT CREDIT SERVICES 101-3008-60691 -96.65Repair & Maintenance03/28-04/13/17- RETURN115085HOME DEPOT CREDIT SERVICES 101-3008-60691 113.67Repair & Maintenance03/28-04/13/17- PAINT & SUPPLIES115085HOME DEPOT CREDIT SERVICES 101-3008-60691 98.78Repair & Maintenance03/28-04/13/17- PAINT ROLLERS & SUPPL…115085HOME DEPOT CREDIT SERVICES 101-3008-60691 40.67Repair & Maintenance03/28-04/13/17- CORD PROTECTOR & SU…115085HOME DEPOT CREDIT SERVICES 101-3008-60691 6,592.50Marketing & Tourism Promoti…PRINT & MEDIA MARKETING SVCS115088JNS MEDIA SPECIALISTS 101-3007-60461 181.56Election Deposit05/23/17- CANDIDATES STATEMENT REF…115090JOHNSON, JOE 101-0000-22835 64.37Travel & Training04/24-04/27/17- EMI INCIDENT COMMA…115091JOHNSTON, ALEXANDER 101-2002-60320 3,800.00Professional Services03/2017-04/2017- LAFCO ADVISORY SERV…115092KEN LEE CONSULTING,LLC 101-1002-60103 9.00Business Licenses04/17/17- BUSINESS LIC OVERPAYMENT115094LE, ANH VIET 101-0000-41600 166.31Election Deposit05/23/17- CANDIDATES STATEMENT REF…115095LLORT VICTORIA 101-0000-22835 120.00Art Event04/01/17- 19TH HOLE BLOCK PARTY ARTIST115096MACIAS, DAVID 101-3001-60512 5,603.00Materials - Irrigation & Light R…Bear Creek Trail Signage115097METALREVELATIONS 101-3005-60424 4,150.00ConsultantsSPECIAL STUDIES/TUMF FEES115099NAI CONSULTING INC 101-6001-60104 3,875.00ConsultantsPROF SVC115099NAI CONSULTING INC 101-7006-60104 154.75Mobile/Cell Phones05/01/17- SATELLITE PHONES115100NI GOVERNMENT SERVICES INC 101-2002-61304 4.93Operating Supplies05/10/17- FOLDERS115101OFFICE DEPOT 101-1005-60420 269 Demand Register Packet: APPKT01125 - DA 05/26/17 5/25/2017 7:34:26 PM Page 2 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 396.93Small Tools & Equipment05/12/17- FILE CABINET115101OFFICE DEPOT 101-2002-60545 745.00HVAC05/12/17- CITY HALL HVAC SVC115102PACIFIC WEST AIR CONDITION…101-3008-60667 44.06Cash Over/Short04/24/17- TOT REFUND OVERPAYMENT115103PALM SPRINGS RENTAL AGEN…101-0000-42300 298.74Marketing & Tourism Promoti…05/15/17- CYCLE FLYER NOTE PADS115104PALMS TO PINES PRINTING 101-3007-60461 149.49Marketing & Tourism Promoti…05/15/17- SRR RACK CARDS115104PALMS TO PINES PRINTING 101-3007-60461 -13.65Sales Taxes Payable05/15/17- SRR SPEAKER PROPS TAX115105PLANIT REPROGRAPHICS SYST…101-0000-20304 169.65Printing05/15/17- SRR SPEAKER PROPS115105PLANIT REPROGRAPHICS SYST…101-1002-60410 53.46LQ Police Volunteers11/23/16- BLACK PLAQUE115106POWERS AWARDS INC 101-2001-60109 9,688.00ConsultantsPROFESSIONAL SERVICES115107PSOMAS INC 101-7006-60104 600,488.54Sheriff - Patrol03/02-03/29/17- SHERIFF PATROL115109RIVERSIDE COUNTY SHERIFF D…101-2001-60161 12,524.66Police Overtime03/02-03/29/17- PATROL DUTY OT115109RIVERSIDE COUNTY SHERIFF D…101-2001-60162 174,639.80Target Team03/02-03/29/17- TARGET TEAM115109RIVERSIDE COUNTY SHERIFF D…101-2001-60163 40,790.30Community Services Officer03/02-03/29/17- COMMUNITY SERVICE O…115109RIVERSIDE COUNTY SHERIFF D…101-2001-60164 11,675.20Gang Task Force03/02-03/29/17- GANG TASK FORCE115109RIVERSIDE COUNTY SHERIFF D…101-2001-60166 11,675.20Narcotics Task Force03/02-03/29/17- NARCOTICS TASK FORCE115109RIVERSIDE COUNTY SHERIFF D…101-2001-60167 87,426.75Motor Officer03/02-03/29/17- MOTOR OFFICER115109RIVERSIDE COUNTY SHERIFF D…101-2001-60169 31,046.50Dedicated Sargeant03/02-03/29/17- DEDICATED SARGEANT115109RIVERSIDE COUNTY SHERIFF D…101-2001-60170 18,120.00Dedicated Lieutenant03/02-03/29/17- DEDICATED LIEUTENANT115109RIVERSIDE COUNTY SHERIFF D…101-2001-60171 34,189.72Sheriff - Mileage03/02-03/29/17- SHERIFF MILEAGE115109RIVERSIDE COUNTY SHERIFF D…101-2001-60172 176.81Election Deposit05/23/17- CANDIDATE STATEMENT REFU…115110SANCHEZ, STEVE 101-0000-22835 260.70Office Supplies03/08/17- OFFICE SUPPLIES115112STAPLES ADVANTAGE 101-6001-60400 41.98Forms03/08/17- PLOTTER PAPER115112STAPLES ADVANTAGE 101-1007-60402 327.53Forms03/08/17- PLOTTER INK115112STAPLES ADVANTAGE 101-1007-60402 87.70Forms03/10/17- PLOTTER PAPER115112STAPLES ADVANTAGE 101-1007-60402 66.79Office Supplies03/10/17- PLOTTER PAPER115112STAPLES ADVANTAGE 101-6001-60400 -41.98Forms03/18/17- CREDIT115112STAPLES ADVANTAGE 101-1007-60402 40.91Office Supplies03/22/17- OFFICE SUPPLIES115112STAPLES ADVANTAGE 101-6001-60400 120.66Citywide Conf Room Supplies03/22/17- CITY WIDE SUPPLIES115112STAPLES ADVANTAGE 101-1007-60403 87.70Forms03/25/17- PLOTTER PAPER115112STAPLES ADVANTAGE 101-1007-60402 9.97Office Supplies04/05/17- OFFICE SUPPLIES115112STAPLES ADVANTAGE 101-6001-60400 90.23Forms04/14/17- PLOTTER PAPER115112STAPLES ADVANTAGE 101-1007-60402 136.86Citywide Conf Room Supplies04/20/17- CITY WIDE SUPPLIES115112STAPLES ADVANTAGE 101-1007-60403 417.60Special Enforcement Funds04/25/17- MOTOR POLICE DECAL115114TOP OF THE LINE SIGNS 101-2001-60175 150.00Technical03/30/2017- BEE HIVE REMOVAL115116TRULY NOLEN INC 101-3005-60108 50.00Cash Over/Short05/11/17- BUSINESS LIC OVERPAYMENT115117ULF STRANDJORD AIR CONDIT…101-0000-42300 4,252.50Plan ChecksBUILDING PLAN REVIEW SVCS115120YOUNG ENGINEERING SVC 101-6003-60118 Fund 101 - GENERAL FUND Total:1,168,981.15 Fund: 201 - GAS TAX FUND 22.78Operating Supplies03/28-04/13/17- COOLER & RAGS115085HOME DEPOT CREDIT SERVICES 201-7003-60420 262.21Asphalt03/28-04/13/17- QUIKRETE CONCRETE115085HOME DEPOT CREDIT SERVICES 201-7003-60430 32.04Materials03/28-04/13/17- MATERIALS115085HOME DEPOT CREDIT SERVICES 201-7003-60431 21.21Materials03/28-04/13/17- CONCRETE MIX115085HOME DEPOT CREDIT SERVICES 201-7003-60431 997.07Equipment Rental05/08/17- EQUIPMENT RENTAL115089JOHNSON MACHINERY CO.201-7003-61701 458.38Traffic Control Signs05/12/17- SIGN & POST115115TOPS'N BARRICADES INC 201-7003-60429 92.11Traffic Control Signs05/12/17- STOP SIGN115115TOPS'N BARRICADES INC 201-7003-60429 204.67Traffic Control Signs05/12/17- THRU TRAFFIC SIGN115115TOPS'N BARRICADES INC 201-7003-60429 320.81Barricades05/12/17- BARRICADES115115TOPS'N BARRICADES INC 201-7003-60428 432.28Barricades05/12/17- BARRICADE/CONES115115TOPS'N BARRICADES INC 201-7003-60428 Fund 201 - GAS TAX FUND Total:2,843.56 Fund: 202 - LIBRARY & MUSEUM FUND 115.68Utilities - Telephone05/13-06/12/17- MUSEUM PHONE SERVI…115078FRONTIER COMMUNICATIONS…202-3006-61300 74.87Repair & Maintenance03/28-04/13/17- TRASH CANS115085HOME DEPOT CREDIT SERVICES 202-3004-60691 4,466.56HVAC05/12/17- LIBRARY HVAC SVC115102PACIFIC WEST AIR CONDITION…202-3004-60667 911.38HVAC05/12/17- LIBRARY HVAC SERVICE115102PACIFIC WEST AIR CONDITION…202-3004-60667 Fund 202 - LIBRARY & MUSEUM FUND Total:5,568.49 Fund: 212 - SLESF (COPS) FUND 17,226.28COPS Burglary/Theft Preventi…03/02-03/29/17- COPS BURGLARY/THEFT …115109RIVERSIDE COUNTY SHERIFF D…212-0000-60179 Fund 212 - SLESF (COPS) FUND Total:17,226.28 270 Demand Register Packet: APPKT01125 - DA 05/26/17 5/25/2017 7:34:26 PM Page 3 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number Fund: 215 - LIGHTING & LANDSCAPING FUND 2,628.04Utilities - Water - Medians05/15/17- WATER SERVICE115065COACHELLA VALLEY WATER DI…215-7004-61211 550.00Palm Trees05/04/17- FIRE STATION #32 TREE REMO…115067CONSERVE LANDCARE 215-7004-60673 96.79Utilities - Electric05/07-06/06/17- PHONE SERVICE115078FRONTIER COMMUNICATIONS…215-7004-61116 115.28Supplies-Graffiti03/28-04/13/17- EXTERIOR PAINT115085HOME DEPOT CREDIT SERVICES 215-7004-60423 10.84Supplies-Graffiti03/28-04/13/17- BRUSH SET115085HOME DEPOT CREDIT SERVICES 215-7004-60423 135.02Supplies-Graffiti03/28-04/13/17- PAINT ROLLER & SUPPLI…115085HOME DEPOT CREDIT SERVICES 215-7004-60423 41.06Supplies-Graffiti03/28-04/13/17- PAINT & SUPPLIES115085HOME DEPOT CREDIT SERVICES 215-7004-60423 35.38Supplies-Graffiti03/28-04/13/17- PAINT & SUPPLIES115085HOME DEPOT CREDIT SERVICES 215-7004-60423 14.79Supplies-Graffiti03/28-04/13/17- PAINT115085HOME DEPOT CREDIT SERVICES 215-7004-60423 98.57Supplies-Graffiti03/28-04/13/17- PAINT & SUPPLIES115085HOME DEPOT CREDIT SERVICES 215-7004-60423 55.53Materials03/28-04/13/17- CRACK SEALER115085HOME DEPOT CREDIT SERVICES 215-7004-60431 11.42Materials03/28-04/13/17- MORTAR MIX115085HOME DEPOT CREDIT SERVICES 215-7004-60431 44.53Materials03/28-04/13/17- REBAR115085HOME DEPOT CREDIT SERVICES 215-7004-60431 24.72Materials03/28-04/13/17- TRASH BAGS/TAPE115085HOME DEPOT CREDIT SERVICES 215-7004-60431 31.34Materials03/28-04/13/17- STONE SEALER115085HOME DEPOT CREDIT SERVICES 215-7004-60431 16.28Small Tools/Equipment03/28-04/13/17- STEEL RAKE115085HOME DEPOT CREDIT SERVICES 215-7004-60432 5.42Small Tools/Equipment03/28-04/13/17- WRENCH115085HOME DEPOT CREDIT SERVICES 215-7004-60432 1,189.15Professional Services05/15/17- LIGHT INSTALL115087HORIZON LIGHTING 215-7004-60104 5,278.00SilverRock Way LandscapeSILVERROCK RESORT LANDSCAPING115093LANDMARK GOLF MANAGEM…215-7004-60143 300.15Materials05/10/17- LED LIGHTS115119WALTERS WHOLESALE ELECTR…215-7004-60431 Fund 215 - LIGHTING & LANDSCAPING FUND Total:10,682.31 Fund: 221 - AB 939 - CALRECYCLE FUND 5,400.00AB 939 Recycling SolutionsRECYCLING EDUCATIONAL WEBSITE115098MUNICIPAL MEDIA CORP.221-0000-60127 424.02AB 939 Recycling Solutions05/01/17- SPIRAL JOURNAL WITH PENS115104PALMS TO PINES PRINTING 221-0000-60127 Fund 221 - AB 939 - CALRECYCLE FUND Total:5,824.02 Fund: 248 - SA 2004 LO/MOD BOND FUND 6,397.50DesignWASHINGTON APT REHAB PRJ115057ALTUM GROUP, THE 248-0000-60185 Fund 248 - SA 2004 LO/MOD BOND FUND Total:6,397.50 Fund: 401 - CAPITAL IMPROVEMENT PROGRAMS 90.81Construction05/10/17- BATTERY115071DESERT BATTERY CO INC 401-0000-60188 509.10ConstructionRepair of 2 Cobalt Traffic Controllers115073ECONOLITE CONTROL PRODU…401-0000-60188 509.07ConstructionRepair of 2 Cobalt Traffic Controllers115073ECONOLITE CONTROL PRODU…401-0000-60188 3,720.00DesignN LQ TURF CONVERSION PRJ201603-D115084HERMANN DESIGN GROUP INC 401-0000-60185 2,460.00DesignN LQ TURF CONVERSION PRJ201603-D115084HERMANN DESIGN GROUP INC 401-0000-60185 3,600.00DesignN LQ TURF CONVERSION PRJ201603-D115084HERMANN DESIGN GROUP INC 401-0000-60185 580.00Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 452.50Professional ServicesLQ VILLAGE A ROAD DIET PRJ151603P115099NAI CONSULTING INC 401-0000-60103 1,225.00Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 822.50Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 3,980.00Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 2,182.50Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 1,450.00Professional ServicesMADISON ST AVE50 - AVE52 PRJ091002P115099NAI CONSULTING INC 401-0000-60103 697.50Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 1,950.00Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 290.00Professional ServicesSRR INFRUSTRUCTURE115099NAI CONSULTING INC 401-0000-60103 6,030.00Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 1,305.00Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 915.00Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 3,110.00Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 580.00Professional ServicesPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60103 435.00DesignPROFESSIONAL SVCS AGREEMENT FY16/17115099NAI CONSULTING INC 401-0000-60185 Fund 401 - CAPITAL IMPROVEMENT PROGRAMS Total:36,893.98 Fund: 501 - FACILITY & FLEET REPLACEMENT 207.09Parts & Maintenance Supplies05/16/17- BACKHOE MAINT115108RDO EQUIPMENT CO 501-0000-60675 Fund 501 - FACILITY & FLEET REPLACEMENT Total:207.09 Fund: 502 - INFORMATION TECHNOLOGY 3,448.86Machinery & Equipment05/01/17-04/30/18- LEASE AGREEMENT P…115070DELL FINANCIAL SERVICES 502-0000-80100 160.00Consultants05/16/17- COUNCIL MTG VIDEO115072DESERT C.A.M INC 502-0000-60104 271 Demand Register Packet: APPKT01125 - DA 05/26/17 5/25/2017 7:34:26 PM Page 4 of 7 AmountVendor Name Payment Number Description (Item)Account Name Account Number 89.99Technical05/10-06/09/17- CITY HALL INTERNET115079FRONTIER-INTERNET 502-0000-60108 3,053.00Software LicensesHR SOFTWARE - ONBOARD & PERFORM …115081GOVERNMENTJOBS.COM INC.502-0000-60301 13,050.00ConsultantsPROFESSIONAL SERVICE AGREEMENT FY1…115111SIGMANET 502-0000-60104 7,350.00ConsultantsPROFESSIONAL SERVICE AGREEMENT FY1…115111SIGMANET 502-0000-60104 66.37Utilities - Cable05/12-06/11/17- CITY YARD CABLE115113TIME WARNER CABLE 502-0000-61400 1,134.33Technical03/26-04/25/7- LQPD WIRELESS115118VERIZON WIRELESS 502-0000-60108 Fund 502 - INFORMATION TECHNOLOGY Total:28,352.55 Fund: 601 - SILVERROCK RESORT 61.21Bank Fees01/2017- SRR ARMORED SVC115080GARDAWORLD 601-0000-60455 Fund 601 - SILVERROCK RESORT Total:61.21 Grand Total:1,283,038.14 272 Demand Register Packet: APPKT01125 - DA 05/26/17 5/25/2017 7:34:26 PM Page 5 of 7 Fund Summary Fund Expense Amount 101 - GENERAL FUND 1,168,981.15 201 - GAS TAX FUND 2,843.56 202 - LIBRARY & MUSEUM FUND 5,568.49 212 - SLESF (COPS) FUND 17,226.28 215 - LIGHTING & LANDSCAPING FUND 10,682.31 221 - AB 939 - CALRECYCLE FUND 5,824.02 248 - SA 2004 LO/MOD BOND FUND 6,397.50 401 - CAPITAL IMPROVEMENT PROGRAMS 36,893.98 501 - FACILITY & FLEET REPLACEMENT 207.09 502 - INFORMATION TECHNOLOGY 28,352.55 601 - SILVERROCK RESORT 61.21 Grand Total:1,283,038.14 Account Summary Account Number Account Name Expense Amount 101-0000-13600 Prepaid Expense 17,244.27 101-0000-20304 Sales Taxes Payable -40.18 101-0000-22830 Miscellaneous Deposits 100.00 101-0000-22835 Election Deposit 2,850.00 101-0000-41600 Business Licenses 9.00 101-0000-42300 Cash Over/Short 133.31 101-1002-60103 Professional Services 8,800.00 101-1002-60351 Membership Dues 400.00 101-1002-60410 Printing 169.65 101-1004-50252 Fitness Membership Reim…40.00 101-1004-60129 Recruiting/Pre-Employme…7,196.50 101-1004-60450 Advertising 750.00 101-1005-60103 Professional Services 56,752.00 101-1005-60420 Operating Supplies 4.93 101-1006-60125 Temporary Agency Servic…1,168.83 101-1007-60402 Forms 593.16 101-1007-60403 Citywide Conf Room Suppl…257.52 101-2001-60109 LQ Police Volunteers 53.46 101-2001-60161 Sheriff - Patrol 600,488.54 101-2001-60162 Police Overtime 12,524.66 101-2001-60163 Target Team 174,639.80 101-2001-60164 Community Services Offic…40,790.30 101-2001-60166 Gang Task Force 11,675.20 101-2001-60167 Narcotics Task Force 11,675.20 101-2001-60169 Motor Officer 87,426.75 101-2001-60170 Dedicated Sargeant 31,046.50 101-2001-60171 Dedicated Lieutenant 18,120.00 101-2001-60172 Sheriff - Mileage 34,189.72 101-2001-60175 Special Enforcement Funds 417.60 101-2002-60110 Volunteers - Fire 28.22 101-2002-60320 Travel & Training 64.37 101-2002-60545 Small Tools & Equipment 396.93 101-2002-60670 Fire Station 457.80 101-2002-61200 Utilities - Water 234.17 101-2002-61304 Mobile/Cell Phones 154.75 101-3001-60512 Art Event 240.00 101-3002-60420 Operating Supplies 530.97 101-3005-60108 Technical 150.00 101-3005-60423 Supplies-Graffiti 344.93 101-3005-60424 Materials - Irrigation & Li…5,664.89 101-3005-60432 Small Tools/Equipment 735.63 101-3005-61203 Utilities - Water -Eisenho…89.86 101-3005-61205 Utilities - Water -Velasco …93.70 101-3007-60461 Marketing & Tourism Pro…15,801.79 273 Demand Register Packet: APPKT01125 - DA 05/26/17 5/25/2017 7:34:26 PM Page 6 of 7 Account Summary Account Number Account Name Expense Amount 101-3008-60667 HVAC 745.00 101-3008-60691 Repair & Maintenance 242.55 101-6001-60104 Consultants 4,600.00 101-6001-60400 Office Supplies 378.37 101-6003-60118 Plan Checks 4,987.50 101-7006-60104 Consultants 13,563.00 201-7003-60420 Operating Supplies 22.78 201-7003-60428 Barricades 753.09 201-7003-60429 Traffic Control Signs 755.16 201-7003-60430 Asphalt 262.21 201-7003-60431 Materials 53.25 201-7003-61701 Equipment Rental 997.07 202-3004-60667 HVAC 5,377.94 202-3004-60691 Repair & Maintenance 74.87 202-3006-61300 Utilities - Telephone 115.68 212-0000-60179 COPS Burglary/Theft Prev…17,226.28 215-7004-60104 Professional Services 1,189.15 215-7004-60143 SilverRock Way Landscape 5,278.00 215-7004-60423 Supplies-Graffiti 450.94 215-7004-60431 Materials 467.69 215-7004-60432 Small Tools/Equipment 21.70 215-7004-60673 Palm Trees 550.00 215-7004-61116 Utilities - Electric 96.79 215-7004-61211 Utilities - Water - Medians 2,628.04 221-0000-60127 AB 939 Recycling Solutions 5,824.02 248-0000-60185 Design 6,397.50 401-0000-60103 Professional Services 25,570.00 401-0000-60185 Design 10,215.00 401-0000-60188 Construction 1,108.98 501-0000-60675 Parts & Maintenance Supp…207.09 502-0000-60104 Consultants 20,560.00 502-0000-60108 Technical 1,224.32 502-0000-60301 Software Licenses 3,053.00 502-0000-61400 Utilities - Cable 66.37 502-0000-80100 Machinery & Equipment 3,448.86 601-0000-60455 Bank Fees 61.21 Grand Total:1,283,038.14 Project Account Summary Project Account Key Expense Amount **None**1,239,746.66 091002P 1,450.00 091004P 3,980.00 111205P 3,110.00 141512P 580.00 141517P 290.00 151603P 452.50 151606P 580.00 151612P 3,255.00 1617PMPP 6,030.00 1617STID 435.00 1617TMICT 1,108.98 201601P 915.00 201602P 697.50 201603D 9,780.00 201603P 1,225.00 201604P 2,182.50 201606P 822.50 274 Demand Register Packet: APPKT01125 - DA 05/26/17 5/25/2017 7:34:26 PM Page 7 of 7 Project Account Summary Project Account Key Expense Amount 999901D 6,397.50 Grand Total:1,283,038.14 275 5/30/2017 10:41:50 AM Page 1 of 2 Payment Reversal Register City of La Quinta, CA APPKT01108 - DA 05/11/17 Canceled Payables Vendor Set:01 - Vendor Set 01 Bank:APBNK - APBNK 08159 Vendor Number RUDE, SHARON Total Vendor Amount -94.50 Vendor Name Check 110241 05/11/2017 -94.5002/26/2016 05/11/2017 Payment Type Payment Number Original Payment Date Reversal Date Cancel Date Payment Amount Payable Number:Description Payable AmountDue DatePayable Date 2192016-R 02/26/2016INSTRUCTOR PAYMENT 94.5002/19/2016 08681 Vendor Number HOBBY LOBBY STORES, INC Total Vendor Amount -1,364.44 Vendor Name Check 114852 05/11/2017 -1,364.4405/05/2017 05/11/2017 Payment Type Payment Number Original Payment Date Reversal Date Cancel Date Payment Amount Payable Number:Description Payable AmountDue DatePayable Date 6272017006239-R 05/05/201704/21/17- LIBRARY ART EXHIBIT FRAMES 1,364.4404/21/2017 276 Payment Reversal Register Packet: APPKT01108 - DA 05/11/17 5/30/2017 10:41:50 AM Page 2 of 2 Bank Code Summary Canceled Payables Payables Left To Pay AgainBank Code Total APBNK -1,458.94 0.00 -1,458.94 -1,458.94 0.00Report Total:-1,458.94 277 278 HOUSING AUTHORITY MINUTES Page 1 of 2 APRIL 18, 2017 HOUSING AUTHORITY MINUTES TUESDAY, APRIL 18, 2017 A regular meeting of the La Quinta Housing Authority was called to order at 7:16 p.m. by Chairperson Fitzpatrick. PRESENT: Authority Members Evans, Peña, Radi, Sanchez, Chairperson Fitzpatrick ABSENT: None VERBAL ANNOUNCEMENT – AB 23 was made by the Authority Secretary PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR 1. APPROVE MINUTES OF FEBRUARY 7, 2017 2. APPROVE THE LA QUINTA HOUSING AUTHORITY ANNUAL REPORT FOR FISCAL YEAR 2015/16 PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34328 3. APPROVE AMENDMENT NO. 3 TO THE AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE LA QUINTA HOUSING AUTHORITY AND HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC Chair Fitzpatrick read the following comment left by resident Patrick Swarthout into the record: “Please approve this Amendment as we have new families waiting to purchase these homes.” MOTION – A motion was made and seconded by Authority Members Radi/Evans to approve the Consent Calendar as recommended. Motion passed unanimously. BUSINESS SESSION – None STUDY SESSION – None PUBLIC HEARINGS – None HOUSING AUTHORITY - CONSENT CALENDAR ITEM NO. 1 279 HOUSING AUTHORITY MINUTES Page 2 of 2 APRIL 18, 2017 DEPARTMENTAL REPORTS – None CHAIR AND BOARD MEMBERS' ITEMS – None REPORTS AND INFORMATION ITEMS – None CLOSED SESSION - None ADJOURNMENT There being no further business, it was moved and seconded by Authority Members Evans/Radi to adjourn at 719 p.m. Motion passed unanimously. Respectfully submitted, SUSAN MAYSELS, Authority Secretary 280 HOUSING AUTHORITY MINUTES Page 1 of 2 MAY 2, 2017 SPECIAL MEETING HOUSING AUTHORITY MINUTES TUESDAY, MAY 2, 2017 A special meeting of the La Quinta Housing Authority was called to order at 3:32 p.m. by Chairperson Fitzpatrick. PRESENT: Authority Members: Evans, Peña, Radi, Sanchez, Chairperson Fitzpatrick ABSENT: None VERBAL ANNOUNCEMENT – AB 23 was made by the Authority Secretary PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA – Confirmed CLOSED SESSION 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED AT THE SOUTHEAST CORNER OF WASHINGTON STREET AND HIDDEN RIVER ROAD (APNs 609-040-007, 609-040-023, AND 609-040-028) HOUSING AUTHORITY NEGOTIATOR: FRANK J. SPEVACEK, EXECUTIVE DIRECTOR NEGOTIATING PARTIES: COACHELLA VALLEY HOUSING COALITION UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT THE AUTHORITY RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:33 P.M. CHAIRPERSON FITZPATRICK RECONVENED THE OPEN SESSION PORTION OF THE HOUSING AUTHORITY MEETING AT 4:02 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: Authority Attorney Ihrke reported no actions were taken in Closed Session that require reporting pursuant to Government Code section 54957.1 (Brown Act). PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR – None HOUSING AUTHOITY - CONSENT CALENDAR ITEM NO. 2 281 HOUSING AUTHORITY MINUTES Page 2 of 2 MAY 2, 2017 SPECIAL MEETING BUSINESS SESSION – None STUDY SESSION – None PUBLIC HEARINGS – None DEPARTMENTAL REPORTS – None CHAIR AND BOARD MEMBERS' ITEMS – None REPORTS AND INFORMATION ITEMS – None ADJOURNMENT There being no further business, it was moved and seconded by Authority Members Evans/Peña to adjourn at 4:02 p.m. Motion passed unanimously. Respectfully submitted, PAMELA NIETO Deputy Authority Secretary 282 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION APPROVING THE INVESTMENT OF HOUSING AUTHORITY MONIES IN THE LOCAL AGENCY INVESTMENT FUND IN THE STATE TREASURY PURSUANT TO GOVERNMENT CODE SECTION 16429.1 RECOMMENDATION Adopt a resolution to approve the investment of Housing Authority monies in the Local Agency Investment Fund in the State Treasury pursuant to Government Code Section 16429.1 EXECUTIVE SUMMARY • Local Agency Investment Fund (LAIF) is an authorized investment in the City’s investment policy. • The Housing Authority LAIF account will be limited to Housing Authority funds and fund earnings. • Housing funds available for investment total $25,566,705. • LAIF mandates that Council authorize the deposit and withdrawal of money by City officers via a resolution. FISCAL IMPACT There is no cost to open a LAIF account. Administrative costs are limited to 5% of the portfolio earnings and are assessed quarterly. There are no wiring fees. LAIF accounts are limited to 15 transactions per month with a minimum transaction amount of $5,000. There is no minimum balance requirement; however, the maximum investment is capped at $65 million per account. A 24-hour notice is required for withdrawals over $10 million. BACKGROUND/ANALYSIS In 2011, the former Redevelopment Agency (Agency) sold taxable bonds (2011 Bonds) to invest in affordable housing. However, when the Agency was dissolved in 2012, the Successor Agency did not have access to the 2011 Bonds until the State Department of Finance (DOF) approved certain dissolution measures. One measure entailed a Bond Expenditure Agreement (Agreement), which was approved by the Council and Successor Agency (to the Agency) in July 2016 and by DOF in August 2016. In December 2016, the Successor Agency refunded the 2011 Bonds to secure a lower interest rate (2016 Bonds). Subsequently, the Agreement was included on the 2017/18 Recognized Obligation Payment Schedule (ROPS), which DOF approved in March 2017. HOUSING AUTHORITY - CONSENT CALENDAR ITEM NO. 3 283 With these DOF approvals, the City may now withdraw 2016 Bond funds from the indenture trust account. The best repository is a new LAIF account that would be limited to Housing Authority funds. LOCAL AGENCY INVESTMENT FUND (LAIF) BACKGROUND LAIF is an authorized investment in the City’s investment policy. LAIF was established in 1977 and is administered by the California State Treasurer’s Office as an investment alternative for California’s local governments and special districts. The program operates a major portfolio investing hundreds of millions of dollars with in-house investment expertise. The Local Investment Advisory Board (LIAB) provides oversight and consists of: the State Treasurer, two members appointed by the State Treasurer with training and experience in the fields of investment or finance, and two members who are treasurers or finance/fiscal officers of a California local agency. LAIF has grown from 293 participants and $468 million in 1977 to 2,447 participants and $22.6 billion at the end of April 2017. LAIF is part of the state’s Pooled Money Investment Account, which had a $76.5 billion portfolio at the end of April 2017. INVESTMENT COST & MANAGEMENT The goals that guide LAIF investments are safety, liquidity, and yield, in that order. The current daily invest yield is 0.93%. The portfolio yield is updated weekly. All investment and LAIF claims are audited daily by the State Controller’s Office as well as through an in- house audit process. LAIF administrative costs are assessed quarterly. The Government Code states that administrative costs are not to exceed 5% of quarterly earnings. These fees cover actual costs to administer LAIF and are deducted from quarterly earnings prior to interest posting. Interest is calculated on a dollar-day basis to guarantee equitable distribution among all member funds. ALTERNATIVES Do not approve opening a Housing Authority LAIF account. Prepared by: Karla Campos, Authority Treasurer Approved by: Frank J. Spevacek, Authority Executive Director 284 RESOLUTION NO. HA 2017 - A RESOLUTION OF THE LA QUINTA HOUSING AUTHORITY OF THE CITY OF LA QUINTA, CALIFORNIA, AUTHORIZING INVESTMENTS OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the La Quinta Housing Authority does hereby find that deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein is in the best interests of the City of La Quinta. NOW, THEREFORE, BE IT RESOLVED, that the La Quinta Housing Authority of the City of La Quinta, California, does hereby authorize the deposit and withdrawal of City of La Quinta monies in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Government Code Section 16429.1 et. seq. for the purpose of investment as provided therein. BE IT FURTHER RESOLVED, as follows: SECTION 1. The following City of La Quinta officers holding the titles specified herein below or their successors in office are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and are transactions contemplated hereby: Frank J. Spevacek Karla Campos (NAME) (NAME) Executive Director Authority Treasurer (TITLE) (TITLE) (SIGNATURE) (SIGNATURE) SECTION 2. This resolution shall remain in full force and effect until rescinded by the La Quinta Housing Authority by resolution and a copy of the resolution rescinding this resolution is filed with the State Treasurer’s Office. 285 Resolution No. HA 2017- Authorizing Investments of Monies in the Local Agency Investment Fund Adopted: June 6, 2017 Page 2 of 2 PASSED, APPROVED, and ADOPTED at a special meeting of the La Quinta Housing Authority held on this 6th day of June, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________________ KATHLEEN FITZPATRICK, Chairperson La Quinta Housing Authority ATTEST: __________________________________________ SUSAN MAYSELS, Secretary La Quinta Housing Authority (CITY SEAL) APPROVED AS TO FORM: _______________________________________ WILLIAM H. IHRKE, Attorney La Quinta Housing Authority 286 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: APPROVE THIRD ROUND COMMUNITY SERVICES GRANTS FOR 2016-17 RECOMMENDATION Approve third round Community Services grants for 2016/17. EXECUTIVE SUMMARY •Community Services Grants and Economic Development/ Marketing funding requests are considered by City Council three times per fiscal year. •Six Grant applications were received and reviewed by the Community Services Grant Review Ad Hoc Committee (Committee). •The Council may approve or modify the Committee’s recommendations. FISCAL IMPACT The total 2016/17 grant budget is $60,000. During the last two rounds the Council awarded $52,500 in grants. The current balance is $7,500 (account 101-3001-60510). The Committee is recommending funding $7,500 of these requests. BACKGROUND/ANALYSIS Grants may only be awarded to 501(c) 3 non-profit organizations that benefit La Quinta residents. Grants are limited to $5,000 per request and consecutive fiscal year funding is not allowed (Attachment 1). In 2007, the Council directed staff to channel all grant and special project funding requests through one process and an account was created to underwrite all approved funding requests. The initial review was done by the Committee, comprised of Mayor Pro-Tem Radi and Council Member Sanchez, and they recommended the following: Applicant Requested Committee Recommendation Certified Farmers Market La Quinta $5,000 $500 Children’s Discovery Museum of the Desert (CDMOD) $5,000 $3,240 Coachella Valley Autism Society of America (CVASA) $5,000 $500 Coachella Valley Symphony $2,000 $500 Martha’s Village and Kitchen, Inc. $5,000 $2,760 Graceful Passages $5,000 $0 Total $27,000 $7,500 BUSINESS SESSION ITEM NO. 1 287 Attachment 2 presents all submitted grant requests. All applications are available for review in the Community Resources Department. During the Committee meeting, Mayor Pro-Tem Radi suggested creating a new grant category called “starter grant.” This would be for organizations that are applying for the first time. This “Starter Grant” would allow first time applicants up to $500 of funding; if they demonstrated their commitment to provide services to the La Quinta community, they would then be eligible to apply for a grant the next year. In order to apply for the grant within next year the “Starter Grant” recipients would need to show proof of progress on how their funds were used and supply the information with their Community Service grant application. Staff will present this consideration at the meeting and seek Council input on it. ALTERNATIVES Approve, modify and/or deny funding for any or all grant applications received. Prepared by: Christina Calderon, Community Programs & Wellness Supervisor Approved by: Chris Escobedo, Community Resources Director Attachments: 1.City of La Quinta Grant Guidelines 2.Grant Request Descriptions 288      289 290 JULY 2016 AUGUST SEPTEMBER OCTOBER 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NOVEMBER DECEMBER JANUARY 2017 FEBRUARY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 MARCH APRIL MAY JUNE 2017 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Application Due Date Ad-Hoc Committee Review City Council Decision Checks Distributed 291 292 Recommended Grant Requests: 1.Certified Farmers Market La Quinta is requesting $5,000 to assist with new programs and a small portion of the direct costs for the year that are related specifically to the Farmers Market in Old Town La Quinta. New programs would include 8 cooking classes, done monthly or bi-monthly, with a chef/instructor from the Wellness Center ($800), Foodie/sustainability film series that includes 4-5 films shown at the Wellness Center on Tuesdays or Thursdays between October-May ($1,750), and provide fruits for performers at the City’s annual Tree Lighting event ($500). Direct costs include local advertising ($1,000), administrative costs ($400) and a street banner that spans Main Street in Old Town La Quinta for 33-35 weeks out of the year ($550). This is the ninth full season for the Certified Farmers Market in La Quinta which operates from October through the end of May. The target audiences are children, seniors and all La Quinta residents interested in making healthier choices in food, and learning about nutrition and ways to prepare fresh healthy meals. This organization was last funded $2,500 in Fiscal Year 2013/14. The Grant Review Committee recommended funding $500. 2.Children’s Discovery Museum of the Desert (CDMOD) is requesting $5,000 to provide school tours that consist of a 90 minute hands-on lesson led by a museum educator followed by student directed learning in the galleries and outdoor area. Funding will support the transportation and museum tours for 180 La Quinta children at a cost of $3,240. Additional funding will provide for 50 at-risk families, designated by community partners, to attend the Touch-A- Truck family fall event at a cost of $1,760. This event allows families to introduce their children to a variety of career paths and it promotes learning through play and investigation. This organization was last funded $2,500 in Fiscal Year 2014/15. The Grant Review Committee recommended funding $3,240. 3.Coachella Valley Autism Society of America (CVASA) is requesting $5,000 to partially fund one full year of Kids Club, Hands On Art Program (HOAP), and Teen Art Program in partnership with The Old Town Artisan Studio and Coachella Valley CrossFit in La Quinta. These programs are offered free to all families of children with autism in the Coachella Valley. They also provide opportunities for socializing, art therapy, health and wellness, and recreation. CVASA successfully provides a wide range of resources and support services that generate awareness of autism and help those affected better understand the disorder. The CVASA is a first time applicant for the Community Services Grant program. The Grant Review Committee recommended funding $500. 293 4.Coachella Valley Symphony (CVS) is requesting $5,000 to partially underwrite one of four concerts for the season and for the City of La Quinta to become a community partner. The CVS provides a professional orchestra experience through the dedication of the volunteer musicians. They are the only local orchestra providing free music lessons and an opportunity to play with a youth symphony. More than 1,000 students have come through the music program. The CVS works in collaboration with all three school districts in the Coachella Valley to provide free music education and instruction, instruments, as well as performance mentorship opportunities to students’ ages 8-18. The CVS also underwrites free concert tickets for students and seniors during their performance season. This organization was last funded $500 in Fiscal Year 2004/2005 under the Buddy Rogers Youth Symphony. The Grant Review Committee recommended funding $500. 5.Martha’s Village and Kitchen, Inc. is requesting $5,000 to support their programs that provide homeless and impoverished families and individuals a safe, dignified place to call home and receive education, meals and supportive services needed for self-sufficiency. The goal of Martha’s Village and Kitchen is the end homelessness by providing housing and supportive services required to help those in need to obtain lifelong independence. This year they expect to provide safe shelter to approximately 300 homeless families and individuals, of residents exiting the program 80% will move into permanent housing and over 200,000 meals will be served. This organization was last funded $2,500 in Fiscal Year 2014/15. The Grant Review Committee recommended funding $2,760. Grant Requests not recommended for funding and/or did not meet the criteria in the Grant Guidelines include: 6.Graceful Passages is requesting $5,000 to provide four weekend workshops with experts, 4-5 other planned course offerings, delivery of in-services to Gentiva Hospice staff (offered free), free class offerings at the Wellness Center, and the development of an interactive website with registration capabilities and online presentations. Professionals in the area of End of Life service will benefit by continuing their education and ongoing awareness of practices, trends, and resources available to them in their practice (JFK Hospital and Hospices in the Coachella Valley). Families will have a resource for the dying, bereavement support services and preparation for the End of Life. This organization was last funded $500 in Fiscal Year 2014/2015 under the Desert Area Chapter Oncology Nursing Society. The Grant Review Committee did not recommend funding this organization. The committee understands the organization’s purpose but feel it is not an appropriate use of City grant funds. 294 REVISED »» BUSINESS SESSION ITEM NO. 2 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE INTERVIEW AND APPOINT RESIDENTS TO VARIOUS CITY BOARDS AND COMMISSIONS AND A CITY REPRESENTATIVE TO THE PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION RECOMMENDATION Make appointments to fill vacancies on City boards and commissions and select a City representative to one regional agency. EXECUTIVE SUMMARY The City has established a number of boards and commissions, which require public participation and membership. The City also has a number of outside agencies, which the City appoints a resident representative to attend the meetings and report back to the Council. The City advertised for applicants to fill open positions and received 28 applications (Attachment 1). The Council will interview and appoint applicants to the vacancies by ballot after a random drawing to determine order (Attachment 2). Recruitment is ongoing throughout the year, along with advertising in the Desert Sun, The Gem and on the City website since March 2017. FISCAL IMPACT The following Council -approved amounts (per member, per meeting attended) are included in the 2017/18 Budget: Community Services Commission $75 Finance Advisory Commission $75 Housing Commission $50 Planning Commission $100 The stipend paid to La Quinta's representative by the Palm Springs International Airport Commission is $75 per month. 295 296 297 298 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: APPROVAL OF THE RELOCATION PLAN FOR WASHINGTON STREET APARTMENTS CONTINGENT UPON THE HOUSING AUTHORITY APPROVING AN AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT AND ASSOCIATED SUMMARY REPORT RECOMMENDATION Approve the Relocation Plan for Washington Street Apartments contingent upon the Housing Authority approving an Affordable Housing and Property Disposition Agreement and Associated Summary Report and authorize the City Manager to submit this plan to the State Department of Housing and Community Development. EXECUTIVE SUMMARY The Housing Authority is planning for the construction and rehabilitation of Washington Street Apartments. On February 7, 2017 the Housing Authority directed staff to distribute a draft Relocation Plan (Plan) to Washington Street Apartment residents and the general public for a mandatory thirty (30) day review period. The Plan now includes an addendum that addresses questions and comments provided by the Housing Commission and residents being displaced. After the mandatory 30-day review period the Housing Authority may adopt the Plan as amended and take all actions necessary to implement it. FISCAL IMPACT Implementation will result in an expenditure of up to $229,680 for relocation costs. Staff budgeted appropriations in account no. 241-9102-60159 (Relocation Benefits) in next fiscal year’s budget. Funds are available in the unreserved Housing Authority’s fund balance. BACKGROUND/ANALYSIS The former La Quinta Redevelopment Agency (RDA) acquired Washington Street Apartments located at 42-800 Washington Street in northwest La Quinta in 2008 for the preservation and rehabilitation of affordable housing. The existing apartments are rented to very-low and low-income senior and disabled adult households receiving rental subsidy from the United States Department of Agriculture/Rural Development. The project for both the construction of new units and re-construction of existing units was suspended in 2011 when the State dissolved RDA’s. HOUSING AUTHORITY - BUSINESS SESSION ITEM NO. 3 299 The Housing Authority now has the necessary funds available to implement the originally envisioned and now entitled Washington Street Apartment project. In preparation for the next steps required in the financing of the project, a Plan must be approved and adopted by the Housing Authority Board. A Plan is needed because residents will be temporarily displaced as their dwellings are substantially rehabilitated. The Plan conforms to the Uniform Relocation Assistance and Property Acquisition Policies Act of 1970, and the California Relocation Assistance Law and State of California Relocation Assistance Guidelines. The Housing Commission, per Health & Safety Code section 34292, reviewed the Plan and recommended for approval at their February 15, 2017 meeting. ALTERNATIVES Staff does not recommend an alternative as approval is required for the application of tax credits by the Developer. Prepared by: Jon McMillen, Development Consultant Approved by: Frank J. Spevacek, Executive Director Attachment: 1. Washington Street Apartments’ Relocation Plan 300 WASHINGTON STREET APARTMENTS 42-800 WASHINGTON STREET LA QUINTA, CA 92253 RELOCATION PLAN LA QUINTA HOUSING AUTHORITY JUNE 6, 2017 08 Fall 301 WASHINGTON STREET APARTMENTS– DRAFT RELOCATION PLAN LA QUINTA HOUSING AUTHORITY 2 CONTENTS OF THIS RELOCATION PLAN I . INTRODUCTION ................................................................................................................. 3 A. ASSESSMENT OF NEEDS ................................................................................................ 4 B. TEMPORARY RELOCATION............................................................................................ 5 C. PROGRAM ASSURANCES AND STANDARDS .............................................................. 6 D. RELOCATION ASSISTANCE PROGRAM ....................................................................... 6 E. CITIZEN PARTICIPATION/PLAN REVIEW ................................................................. 7 F. RELOCATION BENEFIT CATEGORIES .......................................................................... 7 G. PAYMENT OF RELOCATION BENEFITS ...................................................................... 8 H. APPEALS POLICY ............................................................................................................... 8 I. PROJECTED DATES FOR RELOCATION ....................................................................... 8 J. ESTIMATED RELOCATION COST ................................................................................... 9 ATTACHMENT 1: REGIONAL SITE MAP………………………………………………………….10 ATTACHMENT 2: PROJECT SITE MAP…………………………………………………………….11 ATTACHMENT 3: GRIEVANCE PROCESS…………………………………………………………12 ATTACHMENT 4: ADDENDUM ……………………………………………………………………….18 302 WASHINGTON STREET APARTMENTS– DRAFT RELOCATION PLAN LA QUINTA HOUSING AUTHORITY 3 I. INTRODUCTION The La Quinta Housing Authority (“Authority”) is planning for the rehabilitation of Washington Street Apartments located at 42-800 Washington Street in La Quinta, California (the “Property). The Property was built in the 1980s with financial assistance from the United States Department of Agriculture (USDA) as Rural Development (RD), and is restricted as affordable housing for senior and disabled adults. The USDA, through RD, provides rental assistance to the residents. In 2008, the former La Quinta Redevelopment Agency (“Agency”) acquired the Property for purposes of preserving and rehabilitating the Property as affordable housing. The Agency’s plans included expanding the Property by constructing new affordable housing units, rehabilitating all of existing 72- apartments, and enhancing and reconfiguring the community center and management offices (the “Project”). In 2011 the Project was suspended when the California Legislature dissolved all redevelopment agency’s in the State of California, includin g the Agency. Prior to the dissolution of the Agency, the City of La Quinta (“City”) established the Authority, which now has sufficient funds, when leveraged with other affordable housing financing mechanisms, to carry out the Project, as originally envisioned. The Project consists of the construction of 26 new single story apartments organized within four buildings, a new community building and laundry facilities, rehabilitation of all 72 existing apartments, upgraded infrastructure and improved site work. In anticipation of implementing the Project, Authority staff and its Relocation Consultant have prepared this draft Relocation Plan (Plan). This Plan evaluates existing and anticipated conditions to determine replacement or temporary housing requirements for residents. This Plan sets forth policies and procedures necessary to conform with statutes and regulations established by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 USC Chapter 61, Section 4601 et seq.) (“URA”) as amended and the State California Relocation Assistance Law, California Government Code section 7260 et seq. ("CRAL") and the California Relocation Assistance and Real Property Acquisition Guidelines (Title 25, California Code of Regulations, chapter 6, section 6000 et seq.) ("Guidelines"). The Project will be constructed in phases as detailed in Attachment 2. This phasing will allow for all residents to remain at the Property during construction and rehabilitation activities. Rehabilitation of individual residential apartments 303 WASHINGTON STREET APARTMENTS– DRAFT RELOCATION PLAN LA QUINTA HOUSING AUTHORITY 4 requiring temporary displacement will not take longer than 3 months from start to finish. Because this timeframe is anticipated to be less than 12 months, and all residents continue to qualify for rental subsidy under the RD program, no permanent relocation offsite is required. A. ASSESSMENT OF NEEDS To obtain information for the preparation of this Plan, direct, personal interviews were conducted with households living at Washington Street Apartments. Residents of the Property were provided an overview of the project including construction sequence, schedule, and process. The inquiries made of the households concerned household size, length of occupancy, home language, disabilities and health concerns. The interviews were conducted on-site during December 2016. Occupancy There are 72 households encompassed in this Plan, 67 single-person households and 5 two-person households. There are 77 residents in total living in the existing 72 one-bedroom apartments. Income The onsite property manager provided income information, which was collected during annual income certification at the Property. All incomes are in compliance with USDA/ Rural Development Section 515 loan standards. Ethnicity/Language The residents identified themselves as Caucasian (39), Hispanic (31), African American (4), and Asian (3). The primary language reported by residents is English (65), Spanish (10), and Vietnamese (2). All informational notices have been provided in both Spanish and English and the Vietnamese-speaking residents were provided translation by a family member. Senior/ Disabled Adult Households The resident makeup consists of 49 seniors (age 62 and older) and 28 adults with disabilities. Five of the residents will require ADA accessible apartments during their relocation period. The Project Site The Project Site is situated on the southeast corner of Washington Street and Hidden River Road in northwest La Quinta. A regional site map is attached to this Plan as Attachment 1. A depiction of the Project site is attached to this Plan as Attachment 2. The Project Site is located within close proximity to a community park, shopping centers, and grocery stores. 304 WASHINGTON STREET APARTMENTS– DRAFT RELOCATION PLAN LA QUINTA HOUSING AUTHORITY 5 Relocation Area and Location Needs All temporary relocation will take place on the existing project site in newly constructed or re-constructed units of similar size and configuration of existing apartments. Residents that have accessibility needs will be provided accessible units in close proximity to laundry facilities, parking, community center, and management office. Matters that would apply to permanent relocation of households off-site have not been addressed in this Plan. Temporary relocation will occur on the Property, in comparably sized, configured and equipped apartments. No permanent relocations are expected. B. TEMPORARY RELOCATION Each existing apartment will take approximately sixty (60) days to rehabilitate. Rehabilitation will take place in phases, and during this period when an existing apartment is under construction, the existing apartment will need to be vacated, to ensure that the rehabilitation occurs safely. With moving time and coordination factored in, each resident will need to be relocated for approximately three months. Each household will be given the opportunity to move into a new or newly re- constructed apartment at the Property. All of the new and rehabilitated apartments will be single story, modern and of similar size as the existing apartments. Each household will receive moving assistance and payment of all expenses associated with transferring utilities from their existing apartment to the temporary apartment. Residents housing costs will continue to be at their current rent level plus utilities. Should there be additional out of pocket costs, the Authority will pay those costs directly or will reimburse the household. At the end of the approximately sixty (60) day rehabilitation period, each resident will have the choice to stay in the apartment they have been temporarily occupying, or move back to their original, rehabilitated apartment. If a resident elects to stay in the apartment they have been temporarily occupying, then that apartment will then be considered their permanent residence and the relocation process for that resident will be complete. If a resident elects to move back to their original, rehabilitated apartment, then that resident will be offered the same assistance they received during the temporary relocation. 305 WASHINGTON STREET APARTMENTS– DRAFT RELOCATION PLAN LA QUINTA HOUSING AUTHORITY 6 C. PROGRAM ASSURANCES AND STANDARDS Adequate funds are available to accommodate the payment of all required relocation benefits. Services will be provided to ensure that displacement does not result in different or separate treatment of households based on race, nationality, color, religion, national origin, sex, marital status, familial status, disability or any other basis protected by the federal Fair Housing Amendments Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, the California Fair Employment & Housing Act, and the Unruh Act, as well as any other arbitrary or unlawful discrimination. No one will be required to move without 90 days’ prior written, notice and unless “comparable” replacement temporary housing can be located and is available. “Comparable” housing includes standards such as: decent, safe, and sanitary (as defined in § 6008(d) of the Guidelines); comparable as to the number of bedrooms, living space, and type and quality of construction of the current unit but not lesser in rooms or living space than necessary to accommodate the displaced households; in an area that does not have unreasonable environmental conditions; not generally less desirable than the current unit with respect to location to schools, employment, health and medical facilities, and other public and commercial facilities and services; and within the financial means of the displaced households as defined in section 6008, subdivision (c)(5) of the Guidelines. The relocation program to be implemented by the Authority conforms to the standards and provisions set forth in Government Code section 7260 et seq., the Guidelines, California Health and Safety Code section 33410 et seq., if applicable, and all other applicable regulations and requirements. D. RELOCATION ASSISTANCE PROGRAM Staff is available to assist residents of Washington Street Apartments with questions about relocation and/or assistance in relocating and moving. Jon McMillen, the Relocation Coordinator, can be contacted at (760) 212-2322 from 8:30 am to 5:00 pm, Monday through Friday. A comprehensive relocation assistance program, with technical and advisory assistance, will be provided to all households. Close contact will be maintained with residents during this process. Specific activities will include: 1. Periodic updates and meetings with residents to provide project and schedule updates as well as the latest sequencing and phasing plans. 306 WASHINGTON STREET APARTMENTS– DRAFT RELOCATION PLAN LA QUINTA HOUSING AUTHORITY 7 2. Assistance with completion and filing of relocation claims, packing, moving and utility coordination, and appeals forms, if necessary. E. CITIZEN PARTICIPATION/PLAN REVIEW This Plan will be provided to the households and will be made available to the public for the mandatory thirty (30) day review period. Comments to this Plan will be included as a Plan addendum prior to submission for final approval before the Housing Authority. Upon Authority approval, a copy of the approved Plan will be forwarded to the California Department of Housing and Community Development (“HCD”). F. RELOCATION BENEFIT CATEGORIES Relocation benefits will be provided in accordance with the URA and the Guidelines, and all other applicable regulations and requirements. Benefits will be provided and or paid upon submission of required claim forms and documentation in accordance with approved procedures. The Authority will provide appropriate benefits for all households as required by law. Residential Moving Assistance The subject households will be provided professional packing and moving assistance from a licensed professional mover paid for by the Authority. However, if a resident requests to move themselves, payments will be limited to a “fixed payment” of $100. Pursuant to the most recent URA, Fixed Residential Moving Cost Schedule moving payments are limited to $100 when an agency provides all moving services for residents free of charge. The households may select the method of moving and payment as identified below: Fixed Payment - A fixed payment for moving expenses limited to $100. The resident is responsible for moving. - OR - No Payment – The Authority provides all packing and moving services by a professional mover free of charge. Additional Assistance In addition to moving assistance it is anticipated that some residents will require help setting up and transferring utilities, and completing change of address 307 WASHINGTON STREET APARTMENTS– DRAFT RELOCATION PLAN LA QUINTA HOUSING AUTHORITY 8 forms and notices. The Relocation Consultant will provide this assistance as needed and the Authority will pay these costs directly or will reimburse the tenant for out of pocket expense. G. PAYMENT OF RELOCATION BENEFITS Relocation benefit payments will be made expeditiously. Claims and supporting documentation for relocation benefits must be filed with the Relocation Coordinator within eighteen (18) months from the final move in date of the claimant. This is defined as the date the resident accepts their temporary apartment as their new permanent residence or moves back into their re- constructed apartment. The Relocation Coordinator will then submit the relocation benefit claim form to the City of La Quinta Finance Department for review and payment, if appropriate. Failure to submit claims within the 18 month period will result in nonpayment of such claims. The information provided above represents the outside timeline for claims. It is anticipated that all moving services will be provided free of charge by the Authority and all expenses associated with utility transfers or other incidentals will be paid directly by the Authority or reimbursed within 5 business days of receipt of claim by the Authority. H. APPEALS POLICY The appeals policy will follow the standards described in section 6150 et seq. of the Guidelines as supplemented by the Authority’s approved Grievance Procedures (See Attachment 3.). Briefly stated, the relocated households will have the right to ask for a review when there is a complaint regarding any of its rights to relocation and relocation assistance, such as a determination as to eligibility, the amount of payment, or the failure to provide a comparable replacement housing referral. The request for review must be made within eighteen (18) months from: (i) the date the claimant moves; -or- (ii) the date on which final payment is made, whichever is later. Failure to make a timely request for review will result in a denial of the request. I. PROJECTED DATES FOR RELOCATION Households will receive 90-day notice before they are required to move. Moving will occur during phase 2 through 4 of the Washington Street Apartments project. Phase 1 of the project will involve the construction of 24 one-bedroom apartments, community building and laundry facilities. Phase 2, 3 and 4 will 308 WASHINGTON STREET APARTMENTS– DRAFT RELOCATION PLAN LA QUINTA HOUSING AUTHORITY 9 entail the reconstruction of existing apartments three buildings (24 units) at a time. Existing units must be vacated prior to re-construction. WASHINGTON STREET APARTMENTS PHASING SCHEDULE 2018 2019 1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH NEW CONSTRUCTION PHASE 1 NEW CONSTRUCTION PHASE 1 REHAB RELO PHASE 2 REHAB RELO PHASE 3 REHAB RELO NOTE: Phasing schedule may adjust depending on closing of financing, and construction sequencing. An updated schedule will be maintained at the Washington Street Apartment Management Office. J. ESTIMATED RELOCATION COST The following estimates are for budgeting purposes only. These figures should not be interpreted as firm, “not to exceed” or actual costs. These figures are based on the data obtained through occupant interviews, estimated moving costs, and the judgment of the Authority staff. They do not include payments to consultants or to contractors. Any and all required financial assistance will be provided. The budget estimate is: Moving Costs: $ 180,000 Utility and Incidental: $ 28,800 Contingency 10%: $ 20,880 TOTAL: $ 229,680 With the adoption of the final Relocation Plan the Authority will appropriate funds to cover the aforementioned direct relocation costs plus payment to consultants or contractors. 309 10 ATTACHMENT 1. REGIONAL SITE MAP 310 11 ATTACHMENT 2. PROJECT SITE MAP 311 12 ATTACHMENT 3: GRIEVANCE PROCESS LA QUINTA HOUSING AUTHORITY GRIEVANCE PROCEDURES Purpose: The purpose of the Grievance Procedures is to attempt to resolve disputes between the claimant and the La Quinta Housing Authority (“Authority”) at the lowest possible administrative level while affording the claimant an opportunity to have a full and fair review of his/her case. Therefore, all relevant evidence should be presented at the lowest level of these proceedings. In any case where such evidence could have been presented at a lower level and the claimant failed to do so, the relevant hearing body may, at its discretion, refer the matter back to the lower level for consideration and determination prior to their considering such evidence. A failure to provide evidence at a lower level of proceedings may prevent the issue or evidence from being further reviewed, including, without limit, in judicial review for failure to exhaust remedies. These procedures are supplemented by and shall be construed to be consistent with HCD Guidelines sections 6150-6176 of Title 25 of the California Code of Regulations. A. Right of Review Initial Determination: Any displaced person or business who is not satisfied with a determination as to eligibility, amount of payment, and failure by the Authority to provide comparable permanent or adequate temporary replacement housing or the Authority's property management practices, or not properly applying appropriate regulations, at his/her election, may have his/her claim reviewed and reconsidered by the Authority’s relocation consultant in accordance with the following procedures. To obtain an initial determination from the Authority’s relocation consultant, claimant must complete a Relocation Complaint form and submit it to the Authority’s relocation consultant and the City Clerk within (540) days from the date he/she moves from the acquired property or receives final compensation for displacement from the property, whichever is later. The Authority’s relocation consultant shall provide the claimant with a full written explanation of the determination and the basis therefore, which explanation shall be provided within three weeks from the date of receipt of the request. The written explanation shall include a statement of claimant's right to seek within ten (10) days further review of his/her claim by either formal or informal review and an explanation of the steps the claimant must take to obtain this review. 312 13 The right to an informal oral presentation as provided in section B below or a formal hearing as provided in section C below shall not be conditioned upon first obtaining an initial determination from the Authority’s relocation consultant. B. Informal Oral Presentation Authority Review: If the claimant feels that the written explanation provided in section A above is incorrect or inadequate, or if the claimant desires to proceed directly to informal review, he/she may request an informal hearing with the City Housing Specialist or Designee (“Specialist”). (1) To obtain an informal hearing before the Specialist the claimant must request in writing that the Specialist schedule such a hearing. Such written request shall be made (i) within ten (10) days from the date of the written initial determination or, if the claimant does not wish to request an initial determination, (ii) by submitting a Relocation Complaint form within five hundred forty (540) days from the date he/she moves from the acquired property or receives final compensation from the property, whichever is later. (a) Within fifteen (15) days from the date of receipt of claimant's Relocation Complaint form for an informal hearing, he/she will be afforded an opportunity to make an oral presentation, or to request a written review by the Specialist of the relevant documents and written materials submitted by the claimant. (b) The claimant may be represented by an attorney or other person of his/her choosing at the oral presentation hearing (at the cost of the claimant). (c) The Specialist shall prepare a summary of the matters discussed and determinations made during the informal hearing, or written review, and serve a copy thereof upon the claimant. (d) The Specialist shall review and reconsider the determination of the claimant's case in light of: - All material upon which the Authority based its original determination including all applicable rules and regulations; - The reasons given by the claimant for requesting review and reconsideration of his/her claim; - Whatever additional written material has been submitted by the claimant; and 313 14 - Any further information which the Specialist may, in his/her discretion, obtain by request, investigation or research, to ensure fair and full review of the claim. - The proceedings shall not be bound by any formal rules of evidence. (2) The final determination on review by the Specialist shall include, but is not limited to: (a) The Authority relocation consultant’s initial determination, if applicable; (b) The factual and legal basis upon which the decision is based, including any pertinent explanation or rationale; and (c) A statement of claimant's right to seek within ten (10) days further review of his/her claim by the City Manager and Finance Director and an explanation of the steps the claimant must take to obtain this review. (3) The right to a formal hearing as provided in section C below shall not be conditioned upon first obtaining an informal hearing by the Specialist. C. Request for Formal Review The City Manager and Finance Director Review: If the claimant feels that the initial determination by the Authority’s relocation consultant, the Specialist's determination following the informal oral hearing, or written review by the Specialist is incorrect or inadequate, or if the claimant desires to proceed directly to formal review, he/she may request a formal hearing before the City Manager and City Finance Director, acting as the Appeals Board (“Appeals Board”). To obtain a formal hearing before the Appeals Board the claimant must request in writing that the Specialist schedule such a hearing. Such request shall be made (i) within ten (10) days from the date of the Authority relocation consultant’s initial determination, the Specialist's determination following the informal hearing or the Specialist written review or, (ii) if the claimant does not wish to request an informal hearing, within five hundred forty (540) days from the date he/she moves from the acquired property or receives final compensation from the property, whichever is later. (1) Within fifteen (15) days from the date of receipt of claimants written request, he/she will be notified of the formal hearing date. If the claimant 314 15 requests additional time to prepare material for consideration and shows good cause therefore, the hearing date shall be continued to another date. (2) The Appeals Board shall, at the time it gives notice of the formal hearing date, notify the claimant that he/she has the right to be represented by an attorney or others at his/her own expense, to present his/her case by oral or documentary evidence; the right to submit oral or documentary evidence; the right to submit rebuttal evidence to conduct such cross- examination as may be required for full and true disclosure of facts; and the right to seek judicial review after having exhausted all administrative appeal remedies. (3) The Appeals Board shall review and reconsider the initial determination and/or the determination made at an informal hearing taking into consideration all material upon which the challenged determination was made, all applicable rules and regulations, the reasons given by the claimant for requesting review, any additional relevant evidence, oral or documentary, submitted by either the claimant or the Authority’s representatives. No evidence may be relied upon by the Appeals Board where the claimant has been improperly denied an opportunity to rebut evidence or cross-examine a witness. The proceedings of the Appeals Board shall not be bound by any formal rules of evidence. (4) The Appeals Board shall make its determination within six weeks from the date on which the formal hearing is concluded or the date of receipt of the last material submitted, whichever is later. (5) The Appeals Board's determination shall be made in writing and shall contain its decision, the factual and legal basis upon which the decision is made and a statement informing the claimant of his/her right to appeal the decision to the Authority Board as provided below. (6) The claimant shall be promptly served with a copy of the Appeals Board's determination. Review by Housing Authority. Any person who believes himself/herself to be aggrieved by any final decision of the Appeals Board may, within ten (10) days after that date on the Appeal Board’s notice of such ruling or act, appeal the Appeals Board’s determination to the Housing Authority Board of Directors (the “Authority”) by filing with the City Housing Specialist a written statement of the rulings or acts complained of and the reasons for taking such appeal. The Specialist shall thereupon refer such appeal to the Secretary of the Authority and to the Authority for consideration at its next regular meeting, and the Authority shall thereupon fix a time for the hearing of said matter, which time shall be not less than thirty (30) days from the time said appeal is presented to the Authority by the Specialist. On the date thus fixed, or on the date to which said hearing shall have been continued, the 315 16 Authority shall proceed to hear and consider the evidence relating to said matter and shall make and enter on its minutes its final determination therein. The Authority may confirm, modify or set aside the findings of the Appeals Board, and the Authority’s determination in the matter shall be final and conclusive. No proceeding or action shall lie against the City, the Authority, the City Housing Specialist, the City Manager, the Finance Director or any member thereof, nor against any officer, agent or employee of the Authority or City, to review or enjoin the enforcement of a determination or order of the Authority made pursuant hereto, or to recover monetary compensation not consistent with a determination or order on behalf of the Authority, unless such action is commenced within ninety days (90) from and after service of notice of the findings and final determination of the Authority. Notice of the final determination of the Authority shall be served by the City Housing Specialist upon the person, or persons, taking the appeal. The effect of any determination from the City Housing Specialist or Appeals Board from which an appeal is taken as herein provided shall be suspended and of no force or effect until such appeal is fully determined by the Authority. The claimant shall be deemed to have exhausted his/her administrative remedies upon filing timely appeals and the Authority taking action upon his/her complaint. D. Time Limits General: The City Housing Specialist may extend any of the time limits as permitted by HCD Guidelines section 6162 upon a showing of good cause; provided, however, that the time periods established by these Grievance Procedures within which to timely appeal a decision from a lower body shall not be extended. Any refusal to waive a time limit may be reviewed in accordance with the procedures set forth in Section C above; provided, however, any request to review shall be made within thirty (30) days from the date of receipt by claimant of written notice that the request to extend time has been denied. E. Review of Files By Claimant The claimant may inspect all files and records bearing upon his/her claim or the prosecution of the claimant's grievance, except to the extent the confidentiality of the material sought or the disclosure thereof is protected or prohibited by law. F. Effect of Determination Determinations made by the Authority Board pursuant to the paragraph entitled “Review by Housing Authority” in section C shall be applicable to all eligible persons in similar situations regardless of whether any such eligible person seeks a review. All written determinations shall be filed in the records of the Authority and available for public inspection. 316 17 G. Right to Counsel Any claimant has the right to be represented by an attorney at his/her expense at any and all stages of the proceedings set forth in this Article. H. Stay of Displacement Pending Review If claimant seeks to prevent displacement, the Authority shall not require the claimant to move until at least 20 days after it has made a determination and the claimant has had an opportunity to seek judicial review. In all cases the Authority shall notify the claimant in writing 20 days prior to the proposed new date of displacement. I. Further Review If the Authority denies the eligibility of a claimant for a payment, or disapproves the full amount claimed, or refuses to consider the claim on its merits because of untimely filing, or any other ground, the Authority's notification to the claimant of its determination shall inform the claimant of its reasons therefore, and shall also inform the claimant of the applicable procedures for obtaining further review of this determination. These regulations prescribe the La Quinta Housing Authority’s procedures for granting administrative relief to any person aggrieved by a determination as to eligibility for a payment authorized by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the State of California Government Code Section 7260, et. seq., with regard to the obligation of the Authority to refer such person to an adequate replacement dwelling or to any person aggrieved by a determination as to eligibility for a payment authorized by the above legislation to provide the opportunity for his/her application to be reviewed by the appropriate department responsible for administering such payments. 317 18 ATTACHMENT 4: ADDENDUM ADDENDUM Items generated from questions and comments to draft Relocation Plan during 30-day Public Review  The establishment of a voluntary mediation unit to help resolve issues prior to formal review of grievances by City Manager and Finance Director. This additional step would only be added if the City Manager identifies there are excessive grievances and determines that mediation would be beneficial.  A monthly newsletter, monthly resident meetings and a suggestion box at the community building have all been started or in place and will continue through the entire project.  Residents being temporarily relocated will be provided the opportunity to preview the unit they will be moving to at least one week prior to moving.  Extra recycling containers and dumpsters will be provided prior to and during the moving process.  Assistance will be provided to organize community garage sales prior to re construction of apartments.  Three months prior to resident moves resident meetings will focus on moving process, expectations and preparedness. 318 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: JUNE 6, 2017 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE 2017 ANNUAL REPORT ON POLICE SERVICES BY MATRIX CONSULTING GROUP RECOMMENDATION Receive and file annual report on police services. EXECUTIVE SUMMARY •The Riverside County Sheriff’s Department (RCSD) provides police services; both RCSD and the City have made great strides to work collaboratively to refine service levels and improve efficiencies. •In 2015, the City retained Matrix Consulting Group (“Matrix”) to review police services and align services with crime trends. •The City enacted 11 of the 15 recommendations to better allocate police resources, maintain low crime rates, and to increase efficiencies (Attachment 1). •The 2017 update focused on calls for service, workload levels, response times and cost savings opportunities. FISCAL IMPACT – None. BACKGROUND/ANALYSIS Matrix has provided valuable information to determine the appropriate level of police services and identify opportunities to reduce costs while meeting community needs. The City retained Matrix in 2015; their 2015 study outlined 15 recommendations and the City has since enacted 11. Since 2015, Matrix has annually updated the data to track the police service modifications outcomes and to provide additional recommendations to improve efficiencies. The 2017 report provides the following findings: •Daily patrol hours were reduced in 2016, from 150 in 2014 to 135 hours in 2016. •Community generated calls for service decreased by 1.7%, from 17,879 in 2015 to 17,572 in 2016. •Emergency call response time was very good, at 5.4 minutes. STUDY SESSION ITEM NO. 1 319 •In 2016, the time to handle calls for service (from the time an Officer was dispatched until the call was cleared) was 35.6 minutes, exactly the same as in 2015. •In 2016, proactive time (officer-initiated tasks) continues to be high at 51.7%. Proactive time continues to be a key factor in determining Patrol Officer staffing. Matrix believes that for La Quinta, an effective policing level can be attained at 55% “committed” and 45% “proactive” time levels. Committed time is time spent responding and handling calls for services. Proactive time is time available after handling calls for service, in which officers can conduct self-initiated tasks, such as area checks, traffic enforcement, park patrols, etc. Based on this, Matrix recommends the following: •Adjust patrol hours from 135 to 130 daily hours to be closer to 45% overall proactive time. •It is important to allow reasonable discretion when managing the daily fulfillment of contract hours. This means if there are unexpected and last minute staffing shortages, the daily patrol hours may fall under the contracted hours; however, if there is an unexpected increase in emergency and other calls for service, contract hours should be increased, if reasonable. •Determine if Community Service Officer (CSO) workload is being properly tracked, and evaluate ways to increase their workload. •Work with RCSD to develop a more equitable cost sharing allocation for current Detective staff assigned to the Thermal Station, and reduce the number of Detectives that must be funded by the City of La Quinta to three. In summary, the report highlights that the City receives a high level of police services from RCSD, making La Quinta one of the safest communities in the Coachella Valley, and it provides recommendations that would reduce police costs by adjusting service levels and/or changing the cost allocation of services. ALTERNATIVES This is an informational item only; staff does not recommend an alternative. Prepared by: Martha Mendez, Public Safety Manager Approved by: Chris Escobedo, Community Resources Director Attachments: 1. 2015 Matrix Recommendations 2. 2017 Matrix Study 320 Status of 2015 Matrix Recommendations Recommendations Status Modify the contract to allow the Chief and Assistant Chief the discretion to allow patrol staffing levels on a particular day to fall below the contracted level up to 15% (currently 23 patrol staff hours). This option has been fulfilled; LQPD has agreed not to backfill. Staff should work with the Riverside County Sheriff’s Office (RCSO) and management from gated communities to evaluate the options available to facilitate quick entry of police officers into gated communities. On December 1, 2015, City staff (Staff) and La Quinta Police Department (LQPD) presented and the Council passed an ordinance to require all gated communities to install the Knox System. Up to date, all gated communities have installed the system. The RCSO should quarterly or semi-annually provide the City with data showing the number of calls for service responded to, response times, calls per beat, officer-initiated activity and other activity of the LQPD. LQPD provides Staff with a Daily Activity Report showing number of calls received per day. LQPD also provides a quarterly and annual report with more detailed information including calls per beat and police-initiated activity. Review the CAD workload data for a second year to determine the level of patrol officer committed time and proactive time; continue annual reviews of patrol workload. The City has completed three annual studies (2015-2017) to measure the level of proactive and committed time. Annually review patrol staff workload for each 4-hour time block to ensure that a reasonable number of proactive hours are available throughout the day. The third Matrix study includes an overview of patrol staff workload for every 4-hour time block. LQPD will adjust as needed. Adopt a 45% average proactive time level goal for patrol operations. A workload analysis should be conducted annually to determine the actual level of proactive time. The City has adjusted Police Patrol hours twice, from 150 to 140 hours in July 2015, to 135 hours in July 2016. These changes decreased proactive time from 58% to 51.9%. It is estimated that if Patrol hours are reduced from 135 to 130, average proactive time will be closer to 45%. Expand the regular duty hours of the Traffic Unit to provide coverage from 0600 – 1900 or 2000 hours on weekdays. LQPD will review recommendation and will adjust if beneficial. Increase the productivity of the Motor Units to average 10 warnings/citations per shift. Motor Unit’s current average is 12 warnings/citations per shift. 321 Status of 2015 Matrix Recommendations Recommendations Status Modify the work schedule of Community Service Officers to only work during the day and evening hours (0600 hours – 2200 hours) to provide additional alternative call handling options and also address other police related community concerns. This has been ongoing per staffing levels provided by LQPD to Staff and Matrix. Reduce the number of daily patrol officer hours from 150 daily to 140 hours daily; this results in an annual savings – estimated at $581,965 in 2015/16. Reduction to 140 daily patrol hours completed in June 2015. Reduction to 135 daily patrol hours completed in July 2016. Staff should work with the RCSO to establish a goal that 50% of the patrol officers (currently 12 = 50%) and Community Service Officers (3 = 50%) will always be assigned to the City whenever they are working a regular shift. This has been ongoing per staffing levels provided by LQPD to Staff and Matrix. Staff should work with the RCSO to modify the contract to provide a field Sergeant that is dedicated to the supervision of City field services. This option is being requested as part of the contract negotiation. Adopt a process to enhance delivery of patrol services during the periods when proactive time is available. The Asst. Chief, Patrol Lieutenant and Sergeants should coordinate the development of plans that identify specific tasks/projects that can be worked on or accomplished when proactive time is available during a shift. Supervisors should actively manage patrol officers’ proactive time. This has been an ongoing practice by LQPD since 2013/14. Staff should work with the RCSO to reduce the number of Detectives funded by the City to three Detectives which will result in a cost savings of approximately $586,040 annually; this staffing level will provide sufficient staff to conduct follow-up investigations for the City while providing a moderate caseload level for Detectives that provides capacity to absorb future increases in workload. This option will be requested at the next contract negotiation. Additionally, Staff should work with the RCSO to revise the methodology of allocating the cost of Investigation Units (the Lieutenant, Sergeants and Detectives) to an appropriate cost sharing percentage for each of the three entities. This option will be requested at the next contract negotiation. 322 Patrol Staffing and Workload Update CITY OF LA QUINTA, CALIFORNIA FINAL REPORT May 30, 2017 323 TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 1 2 EVALUATION OF PATROL SERVICES 8 3 EVALUATION OF CONTRACT COST ALLOCATIONS / CHANGES 48 APPENDIX A – PATROL STAFFING FACTORS AND GUIDELINES FOR COMMUNITIES 55 APPENDIX B – RESPONSE TIME DETAILS TO 2014 – 2016 CALLS FOR SERVICE 63 324 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 1 1. EXECUTIVE SUMMARY In January 2015 the Matrix Consulting Group began working with the City of La Quinta to conduct a review of police services and crime trends in the City. The goals of the original study were to determine if the level of police services in La Quinta was appropriate and if there were steps that could be taken to reduce the cost of services while still providing a level of policing services that meets La Quinta’s needs. Police services for La Quinta are provided through a contract with the Riverside County Sheriff’s Department (RCSD) and the cost of the services had been steadily increasing over the years, primarily due to staffing costs. The initial project was completed in May 2015 and presented to the City Council at a public meeting on May 18, 2015. In that report, the project team evaluated the patrol workload level based on one year of call for service data obtained from the RCSD. Analysis showed that La Quinta had a very high level of police services – during calendar year 2014 just 42% of Patrol Officers time was committed to handling community generated calls for service and related tasks such as writing reports and handling arrestees. The remaining 58% of time is referred to as “proactive time” and is used to complete administrative tasks (e.g. shift briefings, vehicle maintenance, meetings) and conduct proactive tasks such as area checks, frequent patrol and addressing specific beat problems/issues. The 58% proactive time level is a high level and higher than is needed to provide effective policing services to a community. One of the main recommendations in the report was for the City to determine the level of policing services desired in La Quinta by selecting a “proactive time” level to 325 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 2 target. High levels of proactive time should result in a higher level of police services such as faster response times to calls for service and more Officer initiated activity such as neighborhood patrols, traffic enforcement, park patrols, etc. A high service level also results in higher costs for the City. The project team recommended that the City target an overall service level of 45% “proactive time” for regular patrol officers – this provides a good level of police services that the project team believes is appropriate for the La Quinta community. To achieve this targeted level of service the project team provided two recommendations – reducing the number of daily patrol hours from 150 hours per day to 140 hours or to 130 hours per day. Council elected to reduce the daily patrol hours to 140 hours which was implemented on July 1, 2015. Another recommendation was to complete annual calculations of patrol workload to develop a multi-year trend to be used to ensure an appropriate level of policing services is provided to the community. The second year analysis of calendar year 2015 was completed in May 2016 – this showed that the overall proactive time level had been reduced to 54.8% for 2015 (the reduction to 140 hours was only for six months of 2015). Based on these results and the targeted 45% proactive time level, the number of daily patrol hours was reduced to 135 beginning July 1, 2016. This report provides the calendar year 2016 Patrol staffing and workload analysis using the Patrol deployment of 140 daily patrol hours (January – June) and 135 daily hours (July – December). The workload level in 2016 was slightly less than the prior year so the reduction in daily patrol hours is the primary reason for a reduction of the overall proactive time level to 51.9%, still almost 7 percentage points above the targeted 45% 326 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 3 level. In this report the project team will also review the changes that have occurred in the contract between La Quinta and the Riverside County Sheriff’s Department for various Department and Division overhead charges. The following summarizes the project team’s 2016 Patrol Officer workload analysis and compares the results with the prior two years: (1) The number of community generated calls for service (CFS) again decreased slightly to 17,572 (from 17,945 calls in 2014 and 17,879 in 2015). This call for service volume is at the lower end of the range of the 0.4 to 0.6 CFS per capita typically seen by the project team in other law enforcement studies – meaning that the La Quinta community request police services less frequently when compared with other communities throughout the United States. (2) The amount of time to handle a community generated call for service in 2016 remained almost exactly the same as last year – at 35.6 minutes handling time per call (from time the Officer went enroute to the call until clearing the call). It was slightly lower in 2014 at 34.6 minutes. (3) The response time to emergency calls for service1 in 2016 was again a very good average at 5.4 minutes (call processing time and travel time); a small increase from the 5.2 minute average in 2015. (4) Although the number of daily patrol hours has decreased from 150 hours in 2014 to 135 hours beginning in July 2016 the Patrol Officers continue to have a high overall average level of “proactive” time of 51.9%. This is a decrease from a 54.8% proactive time level in 2015. Officers continued to have good levels of proactive time all hours of the day except for the peak workload hours between 4:00 PM and 8:00 PM. The “proactive time” level continues to be the key factor in the determination of the Patrol Officer staffing level that is needed in a community. The Department also has other staff that provide field services in La Quinta and they are available to assist in responding to calls for service when needed. This staff is the Traffic Unit Sergeant and four Traffic Officers, a Special Enforcement Team Sergeant 1 For the 187 Priority 1A calls in 2016. 327 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 4 and seven SET Officers (which includes two Business District Officers) and four civilian Community Service Officers. None of the work hours for this staff or for the Patrol Sergeants are included in the proactive time calculations discussed above. Analysis of 2017 Proactive Time and the Number of Contracted Daily Patrol Hours The project team believes that La Quinta should continue to target a 45% overall proactive time level for Patrol Officer field services. This level of service provides a patrol workforce that is able to quickly respond to emergency and urgent community generated calls for service in a reasonable amount of time and also have the opportunity during most shifts to engage in “community policing” tasks and activities. Over the last several years the City has taken steps to move to the 45% level by reducing the number of “daily patrol hours” contracted for with the RCSO. As mentioned above, in 2014 La Quinta’s overall proactive time level was 58%, 54.8% for calendar year 2015 and 51.9% for calendar year 2016. If the 135 daily patrol officer hours had been in effect for all of 2016 it would have resulted in an overall proactive time level of 50.9% and if it had been at 130 hours per day the overall proactive time level would have been 48.7%. The project team believes that the current workload and proactive time level reasonably allows a further reduction from the current 135 daily patrol hours to 130 daily hours and still be over the overall proactive time target of 45%. Analysis of 2017 Contract Administration and Daily Operations The project team believes it is important to provide reasonable discretion in the daily circumstances that arise in fulfilling the terms of the contract between the RCSD and La Quinta. The project team supports the current Patrol staffing plan that has been 328 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 5 agreed to by the City and the Police Chief to not unreasonably require them to order Officers to work mandatory overtime to meet the contracted number of daily patrol hours. On a day when there is an unexpected Patrol Officer position vacant and the RCSD cannot fill it with voluntary overtime the only option is to order an Officer to work the shift. The agreement is that if the RCSD cannot fill the shift with a volunteer and if they believe it is reasonable to operate one Officer short for the shift they will do so rather than try to contact an Officer and order them in to work. La Quinta will be credited the hours that were not staffed rather than making up the hours on a subsequent day (e.g. if one day only 125 hours was able to be provided La Quinta would receive a 10 hour credit rather than staff 145 hours on another day to make up the 10 hours). This is a reasonable way to deal with unexpected and last minute staffing shortages that may occur and is a common practice in other law enforcement agencies. Community Service Officers The last three years evaluation of workload data for the four Patrol based Community Service Officers (CSOs) clearly show that their field workload (community generated and self-initiated activity) is low and only requires 9% of their work shift. It is possible that the CSOs do not get credit in the CAD system for all of the time spent handling calls for service (the CAD system cannot track multiple units on an incident) and the CSOs may not document all of their self-initiated field activities in the CAD system. However, the known work does not support the staffing of four positions without options to increase their workload. The project team recommends that La Quinta determine if CSO workload is being properly tracked and also evaluate options available to increase their workload. Field based civilian personnel are almost always an efficient and effective 329 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 6 method to provide needed alternative call handling in a community but it is important to ensure that they are utilized. Contract Cost Allocations and Savings The project team reviewed two cost related issues for La Quinta. The first is the change to the billing credit La Quinta receives when La Quinta Officers respond into Coachella or the unincorporated area to assist Officers with handling calls for service. The past practices has been for Officers to track the amount of time they spend out of La Quinta and when it exceeded 30 minutes per shift it was credited to La Quinta and charged to the other agency. The new guideline is that La Quinta Officers will only respond outside of the City to Priority 1 incidents, when requested, and for Officer safety needs. This may result in a small reduction in the credit La Quinta receives but it is a reasonable change and reduces the amount of administrative paperwork required by PD staff. The second item is the number of Detectives La Quinta is required to fund to provide follow-up investigative services for the community. La Quinta is currently required to fund 4.6 Detectives (27.7 Patrol Officers / 6.06) but only needs three Detectives for its follow-up investigations. There are two issues related to Detective staffing that La Quinta should resolve – developing an equitable cost sharing allocation for the current Detective staff that is assigned to the Thermal Substation, and reducing the number of Detectives that must be funded by La Quinta to three Detectives. A detailed analysis was conducted in 2015 to evaluate if the workload and funding of the Detectives Unit was equitable between the three entities served by the Thermal Station Detectives (La Quinta, Coachella and the unincorporated areas). The review 330 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 7 showed that only 20% of the total number of cases assigned to a Detective were La Quinta cases but that La Quinta was paying for 54% of the Detective Unit funding. The overall cost for La Quinta is less than in 2015 as the Detective Unit staffing level was 12 Detectives and La Quinta was paying for 6.5 Detectives. While the number of positions paid for by La Quinta is lower it is highly likely that the same inequities exist regarding the number of cases assigned and funding paid by the three entities. It is important to note that La Quinta benefits by being part of a larger agency as all 10 Detectives assigned to the Thermal Substation could be assigned to work a major La Quinta case (the same is true for a major case in Coachella or the unincorporated area). It is also acknowledged that resolving these cost sharing and staffing issues can only be made at the executive level in the Sheriff’s Department but the discussion to achieve an equitable cost sharing arrangement and an appropriate Detective staffing level should be pursued. 331 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 8 2. EVALUATION OF PATROL SERVICES The City of La Quinta, through a contract with the Riverside County Sheriff’s Department (RCSD), provides a wide range of law enforcement services for its residents that is managed by a Captain who is appointed as the Police Chief and a Lieutenant who is the Assistant Police Chief. The Police Chief is responsible for management and oversight of all police services provided to residents. The Assistant Chief provides the day to day direction to dedicated staff. La Quinta contracts with the RCSD for a total of other police services positions that provide management, supervision and additional police related services to the community. These other positions provide administration of patrol and also may assist patrol at calls for service and also conduct their own proactive activities. These positions are: • The Chief (a Captain who is not paid by the City) and a Lieutenant, the Assistant Chief, who is paid through the City’s contract. • Two Sergeants – for the Special Enforcement Team (SET) and for the Administrative & Traffic Unit • Seven Officers for the Special Enforcement Team – this includes the two Business District Officers • Four Officers for the Traffic Unit – Motor Officers • Two Officers for regional Task Forces – the Violent Crime Gang Task Force and the Coachella Valley Narcotics Task Force • Six civilian Community Service Officers (four in Patrol, two in Admin & Traffic Unit) The following sections provide the analysis and evaluation of the 2016 patrol workload levels. 332 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 9 1. FIELD OPERATIONS STAFFING AND WORKLOAD. The data used for this update was obtained from RCSD personnel and the Computer Aided Dispatch system (CAD). Our analysis provides a detailed look at the field staffing levels, Officer availability, calls for service and other workload as well as calculating “committed” time, “proactive” time and the overall staffing needs in La Quinta. The CAD data obtained included: • Call or Event Number • Date and Time of Initial Incident (Creation of the CAD Case) • Location of Call (Reporting District), Type of Call, Priority of Call • Time of Unit Dispatch, First Unit ‘Enroute’, First Unit Arrival • Time the Unit Cleared the Call • Beat Unit Identifiers / Radio Call Sign for the Responding Unit • Incident Disposition (e.g., report taken, arrest, citation, etc.) This information serves as the context for analyzing patrol’s staffing needs and estimating workload activity, including the identification of community-generated calls for service, as well as Officer initiated activity. This summary description of patrol services in La Quinta is organized as follows: • Patrol Unit Scheduled Deployment • Patrol Officer Availability • Total Calls for Service • Calls for Service by Priority • Calls for Service Handled by Staff • Officer Initiated Activity 333 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 10 The first section provides the current patrol unit deployment, showing by time of day the number of patrol units scheduled. (1) La Quinta’s Patrol Schedule and Officer Availability in 2016. Patrol Sergeants and Officers were assigned to work a 10 hour shift for all of the calendar year. Staff are assigned to work four days a week, either Sunday – Wednesday or Wednesday – Saturday. To provide the current 135 patrol officer hours each day (as of July 1, 2016) the RCSD has assigned a total of 27 Officers to the three shifts: • Graveyard (Watch 1) 2200-0800 hours; 4 Officers each side of the week • Day (Watch 2) 0600-1600 hours; 5 Officers each side of the week • Swing (Watch 3) 1400-2400 hours; 4 Officers Sun.-Wed.; 5 Officers Wed.-Sat. All staff are scheduled to work on Wednesdays but it does not increase the number of Officers assigned to work in La Quinta or cost to the City – some Officers are assigned to training, others take it off on comp. time, others are assigned special projects. The following table depicts the average Patrol Officer staffing over a 24 hour day using the 135 hour daily staffing level. There are three Patrol Sergeants that are the field supervisors – two are paid for by La Quinta as part of the ‘supported rate’ included in the Officers’ hourly rate. The Sergeants also respond to calls for service but they are not included in this table as their primary role is supervision and they also divide their time between La Quinta, Coachella and the unincorporated areas. 334 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 11 Scheduled Patrol Officer Staffing - 135 Hours Daily Hour Graveyard 2200-0800 Day 0600-1600 Swing 1400-2400 Hourly Average 0000 3.9 3.9 0100 3.9 3.9 0200 3.9 3.9 0300 3.9 3.9 0400 3.9 3.9 0500 3.9 3.9 0600 3.9 4.8 8.7 0700 3.9 4.8 8.7 0800 4.8 4.8 0900 4.8 4.8 1000 4.8 4.8 1100 4.8 4.8 1200 4.8 4.8 1300 4.8 4.8 1400 4.8 4.8 9.6 1500 4.8 4.8 9.6 1600 4.8 4.8 1700 4.8 4.8 1800 4.8 4.8 1900 4.8 4.8 2000 4.8 4.8 2100 4.8 4.8 2200 3.9 4.8 8.7 2300 3.9 4.8 8.7 Average 3.9 4.8 4.8 5.6 The above table shows an average hourly deployment of Patrol Officers that ranges from a low of 4.8 Officers to a high of 9.6 Officers during the two hour shift overlap. Approximately one hour of the shift overlaps provides time for the oncoming shift to dress in their uniform (20 minutes), attend briefing (20-30 minutes) and load their patrol car (5 minutes). The daily hourly average is 5.6 Officers on duty based on the current shift deployment of 27 Officers. 335 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 12 The following table shows the level of Patrol Officer staffing at 130 hours daily. Patrol Officer Staffing – 130 Hours Daily Hour Graveyard 2200-0800 Day 0600-1600 Swing 1400-2400 Hourly Average 0000 3.7 3.7 0100 3.7 3.7 0200 3.7 3.7 0300 3.7 3.7 0400 3.7 3.7 0500 3.7 3.7 0600 3.7 4.6 8.4 0700 3.7 4.6 8.4 0800 4.6 4.6 0900 4.6 4.6 1000 4.6 4.6 1100 4.6 4.6 1200 4.6 4.6 1300 4.6 4.6 1400 4.6 4.6 9.3 1500 4.6 4.6 9.3 1600 4.6 4.6 1700 4.6 4.6 1800 4.6 4.6 1900 4.6 4.6 2000 4.6 4.6 2100 4.6 4.6 2200 3.7 4.6 8.4 2300 3.7 4.6 8.4 Average 3.7 4.6 4.6 5.4 This table depicts the number of Patrol Officers on duty using the current deployment of Patrol Officers – it results in an hourly average of 5.4 Patrol Officers on duty. In La Quinta, there are other uniformed field staff that can assist Patrol Officers during busy times of the day. Two Community Service Officers are assigned to Watch 2 (days) and Watch 3 (afternoons) and handle specified calls for service and also assist Patrol Officers as necessary. They also work 10 hour shifts. 336 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 13 Motor Officers and SET Officers are can assist on any type of call when they are on duty but these units do not have a minimum staffing level so there is not a guarantee how many of these Officers will be working on a particular day and no guarantee that these units will always be available. The work hours for these units are: • Traffic Unit: the 4 Officers work Monday –Thursday 0600-1600 or Tuesday-Friday 0700-1700 (they commonly flex their shift to work 1000-2000 hours) • Special Enforcement Team (SET): 5 Officers typically work 1400-2400 hours Tuesday-Friday; the 2 Business District Officers work 0800-1800 Tuesday-Friday. The table on the next page shows the average staffing level for La Quinta PD since changing to 135 daily Patrol Officer hours on July 1, 2016. The table includes the three sworn units who are assigned to work the streets – Patrol Officers, Motor Officers and SET Officers. As shown earlier in this section Officers either work Sunday-Wednesday (front side of the week) or Wednesday-Saturday (back side of the week). Officer deployment is the same for both sides of the week except on swing shift there are 4 Officers assigned to the front side of the week and 5 Officers assigned to the back side of the week. Deploying a higher percentage of Patrol personnel on Friday and Saturday nights is prudent “risk management” to provide a slightly higher staffing level during busier days of the week. 337 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 14 Sworn Staffing Level by Day of Week @ 135 Daily Patrol Hours (P = Patrol; T = Traffic; S = SET; Dy = Total for the Day) Hour Sunday Monday Tuesday Wednesday Thursday Friday Saturday P T S Dy P T S Dy P T S Dy P T S Dy P T S Dy P T S Dy P T S Dy 0000 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 0100 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 0200 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 0300 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 0400 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 0500 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 0600 8.7 8.7 8.7 1.7 10.4 8.7 1.7 10.4 8.7 1.7 10.4 8.7 1.7 10.4 8.7 8.7 8.7 8.7 0700 8.7 8.7 8.7 1.7 10.4 8.7 3.4 12.1 8.7 3.4 12.1 8.7 3.4 12.1 8.7 1.7 10.4 8.7 8.7 0800 4.8 4.8 4.8 1.7 6.5 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 1.7 1.7 8.3 4.8 4.8 0900 4.8 4.8 4.8 1.7 6.5 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 1.7 1.7 8.3 4.8 4.8 1000 4.8 4.8 4.8 1.7 6.5 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 1.7 1.7 8.3 4.8 4.8 1100 4.8 4.8 4.8 1.7 6.5 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 1.7 1.7 8.3 4.8 4.8 1200 4.8 4.8 4.8 1.7 6.5 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 1.7 1.7 8.3 4.8 4.8 1300 4.8 4.8 4.8 1.7 6.5 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 3.4 1.7 10.0 4.8 1.7 1.7 8.3 4.8 4.8 1400 9.6 9.6 9.6 1.7 11.4 9.6 3.4 6.0 19.1 9.6 3.4 6.0 19.1 9.6 3.4 6.0 19.1 9.6 1.7 6.0 17.4 9.6 9.6 1500 9.6 9.6 9.6 1.7 11.4 9.6 3.4 6.0 19.1 9.6 3.4 6.0 19.1 9.6 3.4 6.0 19.1 9.6 1.7 6.0 17.4 9.6 9.6 1600 4.8 4.8 4.8 4.8 4.8 1.7 6.0 12.6 4.8 1.7 6.0 12.6 4.8 1.7 6.0 12.6 4.8 1.7 6.0 12.6 4.8 4.8 1700 4.8 4.8 4.8 4.8 4.8 6.0 10.8 4.8 6.0 10.8 4.8 6.0 10.8 4.8 6.0 10.8 4.8 4.8 1800 4.8 4.8 4.8 4.8 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.8 1900 4.8 4.8 4.8 4.8 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.8 2000 4.8 4.8 4.8 4.8 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.8 2100 4.8 4.8 4.8 4.8 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.3 9.1 4.8 4.8 2200 8.7 8.7 8.7 8.7 8.7 4.3 13.0 8.7 4.3 13.0 8.7 4.3 13.0 8.7 4.3 13.0 8.7 8.7 2300 8.7 8.7 8.7 8.7 8.7 4.3 13.0 8.7 4.3 13.0 8.7 4.3 13.0 8.7 4.3 13.0 8.7 8.7 Avg. 5.6 5.6 5.6 1.7 6.3 5.6 3.1 3.8 9.6 5.6 3.1 3.8 9.6 5.6 3.1 3.8 9.6 5.6 1.7 3.8 8.8 5.6 5.6 Hours 135 135 135 17 152 135 34 60 229 135 34 60 229 135 34 60 229 135 17 60 212 135 135 The weekly sworn staff hours total 1,323 hours (189 daily), Patrol provides 945 hours (135 daily). 338 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 15 As of April 2017 the total average hourly sworn field staff varies from 5.6 Officers on the weekends to over 9 Officers Tuesday-Friday when all of the Motor Officers and SET Officers are working. (2) Administration of Police Contract – Meeting the Patrol Daily Hours The project team believes it is important to provide reasonable discretion in the daily circumstances that arise in fulfilling the terms of the contract between the RCSD and La Quinta. The project team supports the current Patrol staffing plan that has been agreed to by the City and the Police Chief to not unreasonably require them to order Officers to work mandatory overtime to meet the 135 hours of daily patrol staffing. The situation occurs when a Patrol Officer calls in sick just prior to the start of a shift or is injured during the shift. Managers will try to contact another Officer to work voluntary overtime but sometimes no one can be contacted or no one is willing to work and the only option would be to order an Officer to work the shift (if one can be contacted). The recent agreement is that if they cannot fill the shift with a volunteer, and if they believe it is reasonable to operate one Officer short, an Officer will not be ordered back to work and La Quinta will be credited the hours that were not staffed. This is a reasonable way to deal with unexpected and last minute staffing shortages that may occur and is a common practice in other law enforcement agencies. Recommendation: La Quinta should modify the contract with the RCSD to provide a written statement that gives the LQPD Chief and Assistant Chief the discretion to operate short staffed when no one is willing to voluntarily work the OT and it is reasonable to operate short staffed. 339 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 16 (3) Officer Leave Hours, Training and Administrative Tasks. An employee is scheduled to work 2,080 paid hours in a year. The total number of hours actually worked on their patrol shift is reduced by leave hours used, in-service training and other assigned tasks. The RCSD currently factors 293 leave hours annually per Officer, equaling 1,787 net work hours of an employee (up from 1,780 hours in 2016). This figure is used to calculate the number of Officers needed to provide the hours of daily patrol staffing. Officers also attend some training as part of their normal duty hours which reduces their availability in the field – RCSD staff estimate an Officer attends 25-45 hours of training annually, depending on the number of hours of specialized training he/she may receive in a particular year. Although the leave and training hours do not directly impact LQPD staffing the calculations are shown in the table below which summarizes Officer availability. Leave, Training and OT Hours 2016 Work Hours Percentage Total Annual Scheduled Work Hours 2,080 RCSD Calculated Average Leave Usage (253) Average Training Hours (on duty) (40) Work Hours / % Annual Availability 1,787 85.9% Administrative Time (90 Min. per shift) 312 312 Net Available Work Hours 1,475 70.9% Officer costs charged to La Quinta are based on the estimated net work hours of employees. Additionally, the estimated time required for administrative tasks is also shown – this is the time for Officers to attend briefing, personal breaks, attend court, vehicle maintenance, etc. These tasks reduce an Officer’s net work hours to handle community generated workload and self-initiated activity but an Officer is almost always available to respond to calls for service while performing administrative tasks. 340 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 17 (4) Community Generated Workloads. A critical data for the project team’s analysis relates to the number of community generated events within the City. As a result, this excludes unit-initiated activity, such as traffic stops, as well as 911 calls that are not responded to because they were cancelled before the dispatch of a unit. Data contained in this section reflects the calls for service received in calendar year 2016. Unless indicated otherwise, the data includes calls that are responded to by any type of unit, including Traffic Officers, SET Officers, Sergeants, and Detectives. (4.1) Community Generated Calls for Service by Hour and Weekday. The first table in the series organizes the number of community generated calls for service by hour and day of the week – the volume of calls and the time/day call patterns for all three years vary little from 2014 to 2016. The following shows the number of community generated calls for service responded to by any La Quinta PD unit for the last three years: • 2014 – 17,423 calls for service (16,641 handled by Officers, 782 by CSOs) • 2015 – 17,879 calls for service (16,986 handled by Officers, 893 by CSOs) • 2016 – 17,572 calls for service (16,915 handled by Officers, 657 by CSOs) 341 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 18 2016 Community Generated Calls for Service by Day & Hour – Sworn & Civilian Staff Hour Sun Mon Tue Wed Thu Fri Sat Total CFS / Hour 0000 91 51 48 57 49 61 95 452 1.2 0100 87 47 48 50 36 72 75 415 1.1 0200 53 71 30 42 42 55 65 358 1.0 0300 62 46 25 28 20 38 48 267 0.7 0400 28 32 29 23 31 37 39 219 0.6 0500 37 39 33 39 33 25 31 237 0.6 0600 43 58 47 44 60 55 41 348 1.0 0700 64 87 87 85 95 96 87 601 1.6 0800 78 144 142 126 126 122 105 843 2.3 0900 89 150 142 130 113 139 112 875 2.4 1000 111 147 132 129 117 142 119 897 2.5 1100 107 160 162 133 125 157 123 967 2.6 1200 113 162 139 120 143 156 112 945 2.6 1300 118 165 139 139 143 160 149 1,013 2.8 1400 110 184 150 165 152 170 147 1,078 3.0 1500 117 165 146 167 160 195 137 1,087 3.0 1600 155 145 167 141 157 175 136 1,076 2.9 1700 120 131 155 146 131 187 136 1,006 2.8 1800 128 131 136 176 155 189 140 1,055 2.9 1900 155 131 140 138 112 154 132 962 2.6 2000 118 98 103 112 95 131 119 776 2.1 2100 104 101 106 88 97 155 134 785 2.2 2200 63 89 79 90 107 127 149 704 1.9 2300 61 75 69 78 80 114 129 606 1.7 Total 2,212 2,609 2,454 2,446 2,379 2,912 2,560 17,572 Ave/day 43 50 47 47 46 56 49 48 LQPD responded to 17,572 unique community generated calls for service, approximately 48 calls per day. The busiest day of the week was Friday with an average of 56 calls. The distribution of calls throughout the day was as follows: • 16.5% occurred during the nighttime hours (midnight – 0800) • 43.8% occurred during the daytime hours (0800-1600 hours) • 39.7% occurred during the afternoon/evening hours (1600-midnight) The 2016 CFS distribution is almost the same as 2014 and 2015. The graph on the following page shows a depiction of the hourly call volume. 342 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 19 (4.2) Sworn Officer Call for Service Workload. Sworn officers are the primary responding units to the vast majority of calls for service, in 2016 this was 16,915 calls and the remaining 657 calls a Community Service Officer was the primary unit. This call volume is about the same as in the previous two years – 16,641 calls in 2014 and 16,986 calls in 2015. The following table shows the distribution of the calls in 2016. 0 200 400 600 800 1,000 1,200 1,400 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Nu m b e r o f C a l l s Hour of the Day (1 = Midnight -0100) Calls for Service by Hour 343 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 20 CFS Handled by Sworn Staff - 2016 Hour Sun Mon Tue Wed Thu Fri Sat Total Calls / Hour 0000 91 50 46 57 49 61 95 449 1.2 0100 85 45 48 48 36 71 75 408 1.1 0200 53 68 30 42 41 53 63 350 1.0 0300 60 46 25 28 20 38 47 264 0.7 0400 27 31 28 22 30 37 39 214 0.6 0500 37 35 31 37 32 25 30 227 0.6 0600 41 55 42 39 55 54 40 326 0.9 0700 64 87 85 80 88 85 79 568 1.6 0800 76 144 142 111 115 114 92 794 2.2 0900 89 149 138 118 108 127 98 827 2.3 1000 111 145 131 119 112 129 106 853 2.3 1100 106 158 162 128 116 148 118 936 2.6 1200 112 161 139 107 132 146 104 901 2.5 1300 117 164 138 130 134 146 132 961 2.6 1400 109 182 149 157 141 162 140 1,040 2.8 1500 113 154 131 152 158 193 137 1,038 2.8 1600 149 136 153 131 155 172 136 1,032 2.8 1700 117 123 142 137 130 184 135 968 2.7 1800 121 124 129 161 155 187 140 1,017 2.8 1900 147 126 133 131 111 152 132 932 2.6 2000 118 95 96 110 95 128 117 759 2.1 2100 98 94 106 84 96 154 132 764 2.1 2200 62 83 78 90 106 127 147 693 1.9 2300 60 74 68 76 78 110 128 594 1.6 Total 2,163 2,529 2,370 2,295 2,293 2,803 2,462 16,915 Ave/day 42 49 46 44 44 54 47 46 LQPD sworn staff responded to 16,915 unique community generated calls for service in 2016 or approximately 46 per day, representing 96.1% of the total community generated call activity in La Quinta. The following table shows the daily call distribution for the last three years. 2014 thru 2016 Calls by Day of Week Calls Sun Mon Tue Wed Thu Fri Sat Total 2016 2,163 2,529 2,370 2,295 2,293 2,803 2,462 16,915 Average / day 42 49 46 44 44 54 47 46 2015 2,252 2,498 2,423 2,311 2,472 2,577 2,453 16,986 Average / day 43 48 47 44 48 50 47 47 2014 2,086 2,374 2,343 2,325 2,447 2,617 2,449 16,641 Average / day 40 46 45 45 47 50 47 46 344 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 21 The following table shows the most common call types for sworn staff for the last three calendar years. The list of call types is arranged in order of the 12 most frequent calls in 2016. The frequency of calls handled in 2014 and 2015 may be higher or lower (e.g. “911 Call from a Business”, “Suspicious Circumstance”) but are listed in order of the 2016 call frequency. Most Common Call Types – Sworn Staff Type of Call 2016 2015 2014 # Calls % of Total # Calls % of Total # Calls % of Total Audible Burglary Alarm 3,497 20.7% 3,588 21.1% 3,609 21.7% 911 Call From Cell Phone 1,741 10.3% 1,843 10.9% 1,531 9.2% Disturbance 577 3.4% 526 3.1% 480 2.9% Disturbance (Noise) 538 3.2% 469 2.8% 480 2.9% 911 Call From a Business 523 3.1% 607 3.6% 758 4.6% Assist Other Department 509 3.0% 494 2.9% 437 2.6% Suspicious Circumstance 509 3.0% 490 2.9% 358 2.2% Follow Up 508 3.0% 460 2.7% 432 2.6% Suspicious Person 438 2.6% 432 2.5% 425 2.6% Drunk Driving 336 2.0% 305 1.8% 342 2.1% Reckless Driving 315 1.9% 283 1.7% 293 1.8% Domestic Violence 287 1.7% 336 2.0% 277 1.7% All Other Calls 7,137 42.2% 7,153 42.1% 7,219 43.4% Total 16,915 100.0% 16,986 100.0% 16,641 100.0% The types and frequency of calls handled by sworn staff has not varied significantly during these years. However, when the false alarm ordinance is fully implemented it will reduce the number of burglary alarm calls – the exact reduction is unknown but it is likely to be a significant percentage of the approximate 3,500 annual calls. (5) Patrol Beats 41 and 43 Remain the Busiest Beats in La Quinta. The beats are numbered beginning in the northern portion of the City with Beat 40, 41 and 42; Beat 43 is primarily in the “Cove” residential area with Beat 44 east of Beat 43 and Beat 45 in the south portion of La Quinta – refer to the map on the next page. 345 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 22 346 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 23 The following tables show the distribution of calls for service handled by sworn Officers by the beat areas. CFS by Patrol Area – 2016 Hour 40 41 42 43 44 45 Unk. Other Total 0000 81 127 58 131 31 18 3 0 449 0100 59 109 68 116 21 30 4 1 408 0200 43 102 59 98 19 25 2 2 350 0300 40 74 27 86 18 17 1 1 264 0400 30 59 29 58 22 13 2 1 214 0500 36 56 32 52 20 28 3 0 227 0600 58 77 48 91 26 21 2 3 326 0700 105 145 96 129 53 35 5 0 568 0800 129 201 112 216 55 74 5 2 794 0900 118 185 135 214 79 85 7 4 827 1000 123 229 136 222 64 69 5 5 853 1100 142 249 142 253 80 60 7 3 936 1200 151 261 130 207 68 70 11 3 901 1300 141 298 149 219 79 67 4 4 961 1400 143 353 153 244 59 70 10 8 1,040 1500 175 304 153 241 76 77 7 5 1,038 1600 141 335 135 249 85 72 8 7 1,032 1700 136 296 115 280 65 60 6 10 968 1800 148 313 130 288 71 56 6 5 1,017 1900 143 274 122 279 53 52 5 4 932 2000 127 219 85 212 50 50 8 8 759 2100 135 194 92 224 50 56 5 8 764 2200 105 178 74 237 53 37 2 7 693 2300 97 159 82 176 37 29 6 8 594 Total 2,606 4,797 2,362 4,522 1,234 1,171 124 99 16,915 % 15.4% 28.4% 14.0% 26.7% 7.3% 6.9% 0.7% 0.6% 100.0% Patrol beats 41 and 43 are the busiest beats, accounting for over 55% of all calls for service. The next table shows the distribution of calls over the last three years. Calls by Patrol Area – 2014 thru 2016 Year 40 41 42 43 44 45 Unk. Other Total 2016 2,606 4,797 2,362 4,522 1,234 1,171 124 99 16,915 % 15.4% 28.4% 14.0% 26.7% 7.3% 6.9% 0.7% 0.6% 100.0% 2015 2,614 4,305 2,544 4,614 1,373 1,282 154 100 16,986 % 15.4% 25.3% 15.0% 27.2% 8.1% 7.5% 0.9% 0.6% 100.0% 2014 2,457 4,210 2,451 4,437 1,289 1,295 440 62 16,641 % 14.8% 25.3% 14.7% 26.7% 7.7% 7.8% 2.6% 0.4% 100.0% The next section examines field patrol workloads by priority type. 347 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 24 (6) Calls for Service by Priority Type. The Riverside County Sheriff’s Department uses the following “Priority” types to classify a call for service. • Priority 1 – Involve circumstances that pose, or did pose in the immediate past, a clearly defined threat to human life or property and which involve a high level of violence or which have the potential for serious injury. • Priority 1A– Involve circumstances that pose, or did pose in the immediate past, a clearly defined threat to human life or property. • Priority 2 – Involve circumstances of an urgent but not life threatening nature. They are generally disturbances with a potential for violence, minor assaults and batteries, unknown or suspicious circumstances, and certain thefts. • Priority 3 – Involve circumstances which are neither urgent nor life threatening. Many of these calls are simple disturbances of the peace. • Priority 4 – Incidents occurring in the past or “cold” calls; except some felonies. • Priority 5 – 911 cell phone calls without a location (often misdialed calls). Calls by Priority Type CFS Priority 2016 2015 2014 Number % of Total Number % of Total Number % of Total 1 22 0.1% 28 0.2% 27 0.2% 1A 187 1.1% 175 1.0% 223 1.3% 2 7,354 43.5% 7269 42.8% 7,203 43.3% 3 6,408 37.9% 6622 39.0% 6,274 37.7% 4 2,944 17.4% 2793 16.4% 2,902 17.4% 5 0 0.1% 99 0.6% 12 0.1% Total 16,915 100% 16,986 100% 16,641 100% As shown above, Priority 1 and 1A calls for service account for less than 2% of all calls during the year. These types of emergency calls are infrequent and these statistics indicates that the RCSO is appropriately classifying incoming calls for service. The majority of the calls for all years were Priority 2 and Priority 3 calls. The percentages for these Priority types are within the ranges seen by the project team in other police studies. 348 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 25 (7) Average Times for Response and Handling of Calls for Service. The response to and handling of community generated calls for service is one of the primary tasks of any municipal police agency and one that frequently is the subject of inquiry from city leaders and members of the community. The project team calculated the average times using all of the calls for service reported to the RCSD. The following table shows three individual time components and two overall time components for a community generated call for service: • Call processing time – begins when the call was received in Dispatch and ends when the Officer is dispatched. • Travel time – from the time the call was dispatched until the arrival of the first police unit; it includes delays Officers may have during nighttime hours getting through locked security gates of gated communities (Officers do not have keys or codes). • Call “response” time – the call process time + travel time. This is the time citizens are most often interested in – from the time they call 9-1-1 until an Officer arrives at the scene of the reported incident. • On scene time – from the time of arrival to the time the last unit cleared the call. • Call handling time – sum of the travel time and on scene time. The table below shows the number of Priority types of CFS and the average processing and call handling times (in minutes). 2016 Response and Call Handling Times Pri CFS Call Processing Time Travel Time Response Time Time On Scene Call Handling (Travel + On Scene) Call Handling Hours 1 22 1.1 4.0 5.1 128.1 132.1 48 1A 187 0.7 4.7 5.4 67.0 71.7 224 2 7,354 3.0 9.1 12.1 26.0 35.1 4,297 3 6,408 5.9 11.2 17.1 20.5 31.6 3,376 4 2,944 7.8 12.9 20.7 28.8 41.8 2,051 Totals 16,915 4.9 10.5 15.4 25.1 35.6 9,996 349 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 26 The overall average “response” time for the first RCSD unit to arrive at the scene of a call for service is 15.4 minutes. This overall response time decreased from last year’s 17.2 minutes but is an increase of ½ minute since 2014. This is an excellent overall response time to all calls and shows that even low priority calls in La Quinta receive a fairly fast response by the PD of 17 – 20 minutes. Officers’ response time to the most serious calls for service, Priority 1 and 1A, are significantly faster at 5.1 and 5.4 minutes overall response time. These travel times are very good average response times to emergency calls and at the faster end of the 5 - 7 minute range of response times seen by the project team in other law enforcement studies. The tables below shows the average processing and call handling times for the prior two calendars years. 2015 Response and Call Handling Times Pri CFS Call Processing Time Travel Time Response Time Time On Scene Call Handling (Travel + On Scene) Call Handling Hours 1 28 0.6 4.6 5.2 152.3 156.9 73 1A 175 0.6 4.5 5.1 57.4 61.9 181 2 7269 3.9 8.9 12.8 26.0 34.9 4,226 3 6622 8.6 10.8 19.4 21.7 32.5 3,592 4 2793 12.4 11.8 24.2 31.0 42.8 1,991 5 99 NA NA NA NA NA NA Totals 16,986 7.1 10.1 17.2 25.5 35.6 10,063 As noted above in 2015 the overall average “response” time for the first RCSD unit to arrive at the scene of a call for service increased to 17.2 minutes from the average time in 2014. Most of this change was due to the increase in low priority calls. The next table shows this information for the first year of data analysis, calendar year 2014. 350 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 27 2014 Response and Call Handling Times Pri CFS Call Processing Time Travel Time Response Time Time On Scene Call Handling (Travel + On Scene) Call Handling Hours 1 27 1.0 5.6 6.5 140.1 145.6 66 1A 223 0.8 4.2 5.0 67.5 71.7 266 2 7,203 3.1 9.0 12.1 24.7 33.7 4,049 3 6,274 6.2 10.6 16.8 19.5 30.1 3,149 4 2,902 7.6 11.1 18.7 31.5 42.6 2,061 5 12 3.4 4.0 7.3 5.2 9.1 2 Totals 16,641 5.0 9.9 14.9 24.6 34.6 9,593 Over the last three years the response time to the highest priority calls for service, Priority 1, 1A and 2, has improved or remained the same. Additional tables showing the “travel times” for the various call for service priority types is provided as an appendix to this report. (8) Officer “Back-Up” Time, Reports Written and Bookings. Officers also respond as backup units to assist the primary officer on many calls for service. The backup Officer data was not able to be exported from the CAD system so the project team used normative values to estimate the number of backup responses and the amount of time spent by the back-up Officer(s) on the incident. The project team has developed a methodology that calculates the number of backup Officer responses at a 50% rate and the time spent on these incidents at 75% of the primary Officer’s total handling time.2 The following table shows the primary Officer call handling time and the number of back-up Officers’ responses to the calls. The most important information obtain from this 2 This methodology is based on the project team’s experience in hundreds of other law enforcement studies. 351 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 28 table is the total number of hours required to handle the community generated calls for service in La Quinta over the last three years. Hours Required to Handle Calls for Service Primary Officer Back-up Officers Total 2016 Responses to Calls 16,915 8,458 25,373 Call Handling Minutes 35.6 26.7 NA Call Handling Hours 10,028 3,760 13,788 2015 Responses to Calls 16,986 8,493 25,479 Call Handling Minutes 35.6 26.7 NA Call Handling Hours 10,078 3,779 13,858 2014 Responses to Calls 16,641 8,321 24,962 Call Handling Minutes 34.6 25.9 NA Call Handling Hours 9,596 3,592 13,188 As shown above, the total number of hours required to handle community generated calls for service in La Quinta over the last three years is between 13,000 and 14,000 hours. In 2016 the number of calls dropped slightly so the workload hours also decreased slightly. In 2014 and 2015 LQPD wrote some sort of report3 on 60.5% of the calls for service. The project team estimated that Patrol Officers wrote 80% of the reports (8,084 reports), Patrol CSOs wrote 15% and 5% of the reports were written by Detectives, Business District and SET Officers. The number of arrestees processed (bookings) by La Quinta Officers averaged 3.1% of the total calls for service for 2014 and 2015.4 In La Quinta, prisoner handling time is captured in the CAD record (the Officer is still typically listed in an “on scene” 3 The actual number of reports written in 2014 was 10,248 and in 2015 it was 10,105. 4 The actual number of bookings reported to the project team was 512 in 2014 and 539 in 2015. 352 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 29 status) so all or almost all of an Officer’s time spent handling a prisoner should be captured in the CAD record. Additionally, Community Service Officers commonly transport arrestees to the jail for booking which allows Officers to return to an “available” status. However, the project team included an additional 30 minutes of prisoner handling time to capture any time that might not have been included in the CAD record – this equaled 264 hours in 2016. The project team considers the combination of call handling hours, report writing hours and arrestee processing hours as the minimum number of hours La Quinta Officers spent handling the “community demand” workload (i.e., calls for service and related tasks). The hours total is used to calculate Officers’ committed time and proactive time later in this report. 2. OFFICERS ALSO CONDUCT SELF-INITIATED TASKS AS PART OF NORMAL PATROL DUTIES. An Officer’s time on his/her shift is spent responding to calls for service but also engaging in a number of self-initiated activities during their work hours. These activities include vehicle stops, pedestrian stops, area checks, investigative follow-up, assisting the public, etc. All of these incidents are captured by the CAD system. Community Service Officers, whose work will be discussed later, also conduct self-initiated activity but their self-initiated incidents are not included in this section. The self-initiated activity numbers include all sworn staff – Patrol Officers, Motor Officers, SROs, the Special Enforcement Team and supervisors. The CAD data does not clearly specify if incidents are community generated or initiated by LQPD staff so the project team counted incidents where the arrival time was the same as the dispatch time as a “self-initiated” incident (the other incidents were counted as “community generated” 353 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 30 calls for service). The following table shows the day and hour distribution for the incidents that were initiated by sworn staff in 2016. Self-Initiated Incidents – Sworn Staff Hour Sun Mon Tue Wed Thu Fri Sat Total 0000 52 24 18 20 42 45 48 249 0100 41 23 21 24 36 40 49 234 0200 42 20 10 17 8 9 24 130 0300 15 9 14 10 12 17 8 85 0400 9 2 8 2 12 8 11 52 0500 5 5 6 3 2 6 7 34 0600 10 51 72 76 71 47 7 334 0700 11 97 175 148 123 84 7 645 0800 27 108 150 125 140 106 29 685 0900 29 62 106 128 125 80 38 568 1000 21 73 81 122 130 61 45 533 1100 24 87 80 123 118 60 46 538 1200 29 79 104 103 96 89 44 544 1300 43 87 107 93 102 67 37 536 1400 39 77 101 115 97 94 54 577 1500 41 56 70 113 82 104 34 500 1600 35 58 43 79 69 71 48 403 1700 23 53 62 68 76 87 45 414 1800 26 29 37 56 64 72 57 341 1900 25 23 30 33 46 82 39 278 2000 27 18 28 23 43 84 30 253 2100 17 23 16 27 39 68 28 218 2200 15 13 14 21 33 57 30 183 2300 21 16 13 12 22 51 28 163 Total 627 1,093 1,366 1,541 1,588 1,489 793 8,497 Ave/day 12 21 26 30 31 29 15 23 LQPD staff initiated an average of 23 incidents a day in 2016. The following table shows the daily call distribution for the last three years. Officer Initiated Activity by Day of Week Calls Sun Mon Tue Wed Thu Fri Sat Total 2016 627 1,093 1,366 1,541 1,588 1,489 793 8,497 Average / day 12 21 26 30 31 29 15 23 2015 550 1,021 1,498 1,508 1,647 1,334 799 8,357 Average / day 11 20 29 29 32 26 15 23 2014 603 931 1,314 1,393 1,490 1,465 836 8,032 Average / day 12 18 25 27 29 28 16 22 354 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 31 The four incident types of “traffic stop”, “citation”, “area check” and “attempt warrant service” were the most common types of Officer initiated activity and accounted for 69% - 79% of the total number of incidents in each year. 3. COMMUNITY SERVICE OFFICERS PROVIDE ADDITIONAL FIELD RESOURCES TO ASSIST PATROL OFFICERS IN HANDLING SOME CALLS FOR SERVICE AND OTHER FIELD TASKS. La Quinta contracts for six Community Service Officers (CSOs) and four of the CSOs are assigned to Patrol Operations. Two CSOs are assigned to Day shift, one works Sunday – Wednesday and one works Wednesday – Saturday which provides coverage seven days a week and an overlap day on Wednesday. The other two Patrol CSOs are assigned to Swing shift, working the same work days as the Day shift CSOs. The Patrol CSOs wear a uniform different from sworn staff and drive marked patrol units. They are assigned to handle low risk / low priority calls for service, assist Patrol Officers on incidents and transport arrestees to jail when appropriate (i.e. a cooperative arrestee). They were the primary responding unit to 782 community-generated calls for service in 2014, 893 calls in 2015 and 657 calls in 2016. This is an overall average of 2 – 3 calls per day which is a very low call for service workload (using the available CAD data) for the two CSOs that are on duty daily. The following table displays the calendar year 2016 calls for service by day and hour. 355 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 32 CFS Handled by Community Service Officers - 2016 Hour Sun Mon Tue Wed Thu Fri Sat Total 0000 1 2 3 0100 2 2 2 1 7 0200 3 1 2 2 8 0300 2 1 3 0400 1 1 1 1 1 5 0500 4 2 2 1 1 10 0600 2 3 5 5 5 1 1 22 0700 2 5 7 11 8 33 0800 2 15 11 8 13 49 0900 1 4 12 5 12 14 48 1000 2 1 10 5 13 13 44 1100 1 2 5 9 9 5 31 1200 1 1 13 11 10 8 44 1300 1 1 1 9 9 14 17 52 1400 1 2 1 8 11 8 7 38 1500 4 11 15 15 2 2 49 1600 6 9 14 10 2 3 44 1700 3 8 13 9 1 3 1 38 1800 7 7 7 15 2 38 1900 8 5 7 7 1 2 30 2000 3 7 2 3 2 17 2100 6 7 4 1 1 2 21 2200 1 6 1 1 2 11 2300 1 1 1 2 2 4 1 12 Total 49 80 84 151 86 109 98 657 Ave/day 1 2 2 3 2 2 2 2 LQPD Community Service Officers responded to 657 unique community generated calls for service, an average of 4 per day, which is 3.9% of the total number of LQPD calls for service. These calls equal a total committed time of 424 hours for the year (657 calls x 38.7 minutes per call). The table on the following page shows the most common call types for CSOs for the last three calendar years. The list of call types is arranged in order of the most frequent calls in 2016.5 There are several categories of calls for service that were not 5 Note that in the 2017 review all three years of data were reviewed for consistency of analysis methodology and that 522 incidents in 2014 originally listed as calls for service were actually self-initiated activity. 356 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 33 consistently in the top 10 in all three years – these are indicated by italicized lines at the bottom of the table. Most Common Call Types – Community Service Officers 2016 2015 2014 Type of Call # Calls % of Total # Calls % of Total # Calls % of Total Traffic Collision (Non Injury) 69 10.5% 97 10.9% 155 19.8% Traffic Hazard 68 10.4% 67 7.5% 90 11.5% Petty Theft (cold) 53 8.1% 102 11.4% 77 9.8% Malicious Mischief / Vandalism (cold) 50 7.6% 80 9.0% 67 8.6% Vehicle Burglary (cold) 44 6.7% 67 7.5% 34 4.3% Lost/Found Property 44 6.7% 36 4.0% 51 6.5% Parking Violation 39 5.9% 32 3.6% 36 4.6% Traffic Collision (Minor Injury) 29 4.4% Abandoned Vehicle 25 3.8% Hit & Run (Prop. Damage) 23 3.5% Grand Theft (cold) 43 4.8% Burglary (cold) 35 3.9% Follow UP 51 5.7% Hit & Run (Prop. Damage) 29 3.7% Grand Theft (cold) 37 4.7% Burglary (cold) 33 4.2% All Other Calls 213 32.4% 283 31.7% 173 22.1% Total 657 100.0% 893 100.0% 782 100.0% The top seven types of calls handled by the Community Service Officers are the same for all three calendar years and an overall low workload for four staff. One reason for the low call for service workload is that there are not additional calls for service that occur of the type that are handled by CSOs. Another possible reason for the low number of CSO calls for service could be related to the fact that the RCSD CAD data only captures the primary unit assigned to a call for service and not any back- up unit(s) that may also respond to assist – if a sworn Officer is initially assigned to the call but a CSO also responds and takes over handling the call from sworn staff the CSO call handling may not be captured and the initial sworn Officer may remain listed as the Officer handling the incident. This situation could occur for calls such as minor traffic 357 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 34 accidents, traffic hazards, minor thefts and other incidents where a Patrol Officer may initially be assigned to the call but subsequently handled by a CSO. Although this may be true, it still does not account for the low the call for service workload of the Community Service Officers. CSO duties do also include proactive responsibilities for parking enforcement, abandoned vehicles and vandalism complaints. However, this only has accounted for an additional 842 incidents in 2014 and 1,827 incidents in 2015 and 1,581 incidents in 2016, or approximately an additional 3 – 6 incidents per day for the four CSOs assigned to Patrol. The 2016 self-initiated activity by day and hour is shown in the table below. CSO Self-Initiated Activity - 2016 Hour Sun Mon Tue Wed Thu Fri Sat Total 0000 14 17 12 24 36 13 17 133 0100 12 20 22 25 31 8 11 129 0200 7 16 12 13 26 5 9 88 0300 14 10 19 9 24 6 6 88 0400 17 11 19 3 17 6 3 76 0500 14 6 6 19 15 7 3 70 0600 7 2 1 5 10 8 5 38 0700 1 2 1 1 2 3 10 0800 3 1 2 17 6 16 45 0900 4 1 9 6 14 16 50 1000 9 3 3 14 7 24 34 94 1100 2 5 1 11 18 20 31 88 1200 3 4 7 13 20 30 77 1300 13 4 8 21 17 9 72 1400 7 4 1 5 10 11 21 59 1500 9 6 5 6 1 2 19 48 1600 18 14 15 7 4 3 9 70 1700 11 15 5 8 1 3 3 46 1800 7 9 6 15 8 6 51 1900 9 4 9 10 2 5 1 40 2000 7 5 6 7 1 8 7 41 2100 11 7 2 12 6 2 5 45 2200 5 7 1 3 8 3 27 2300 17 14 18 23 10 9 5 96 Total 221 184 166 246 285 213 266 1,581 Ave/day 4 4 3 5 5 4 5 4 358 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 35 The most frequent self-initiated tasks were “area check” (779 incidents), “citation” (464 incidents), “California Vehicle Code violation” (103 incidents) and “parking violation” (68 incidents). The overall combined workload of community generated calls for service and self-initiated activity for the four CSOs assigned to Patrol is very low – averaging 2 calls per day and 4 self-initiated incidents. The following table shows the combined workload over the last three years. Annual Workload for Community Service Officers Task 2016 2015 2014 Calls for Service Number of Calls 657 893 782 Minutes / Call 38.7 38.6 34.6 Time 424 574 451 Self-Initiated Activity Number of Calls 1581 1827 842 Minutes / Call 9.4 8.1 9.0 Time 248 247 126 Combined Time 671 821 577 Annual Hours / CSO 168 205 144 The last three years evaluation of workload data for the four Patrol based Community Service Officers clearly show that their field workload (community generated and self-initiated activity) is low, averaging just 172 hours annually, and only requires 9% of their work shift. CSOs do support patrol operations by handling calls that Officers normally would handle and also assist with transportation of arrestees to jail which relieves Officers from these duties. It is possible that the CSOs do not get credit in the CAD system for all of the time spent handling calls for service (the CAD system cannot track multiple units on an incident) and the CSOs may not document all of their self-initiated field activities in the 359 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 36 CAD system. However, the known work does not support the staffing of four positions without options to increase their workload. The project team recommends that La Quinta determine if CSO workload is being properly tracked and also evaluate options available to increase their workload. The project team generally supports the use of civilian field staff in patrol operations as it is almost always an efficient use of funds to provide alternative call handling, reducing the need for higher cost sworn staff. However, it is important to ensure that they are fully utilized. The City and RCSD should explore alternatives to increasing the usage of these positions or reducing the number of CSOs. The project team recommends that La Quinta determine if CSO workload is being properly tracked in CAD and if not, what options are available to document their work tasks. Options available to increase their workload should also be evaluated. This should include possibly increased call handling, increasing self-initiated activity, additional projects that could be assigned, and assisting in other related work areas (e.g. City code enforcement assistance). The project team reviewed the 2016 CAD data for types of calls where the primary responder was a sworn Officer but a call of the type that may be able to be handled by a CSO – it would depend on the specific circumstances of the incident and if a CSO was on duty at the time. The possible additional calls are shown in the following table are the total number of incidents of the listed call type that were handled by sworn staff. 360 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 37 Possible Additional Calls for CSOs Call Type Number Stolen Vehicle 237 Petty Theft (Cold) 229 Non-Injury Accident 224 Traffic Hazard 201 Vandalism (Cold) 161 Lost/Found Property 140 Hit & Rub 82 Minor Injury Accident 70 Barking Dog 70 Grand Theft (Cold) 67 Vandalism 55 Stolen Vehicle (Cold) 52 Abandoned Bicycle 44 Abandoned Vehicle 40 Property Damage Accident (Prior) 29 Total 1,701 Estimated 50% That Are CSO Appropriate / Available 850 The above table shows a reasonable to estimate of 50% of the calls that a CSO would not be able to handle – either due to unavailability6 or the specific call would be an inappropriate circumstance for a CSO. However, if the CSOs were able to handle these additional calls it would more than double their 2016 call for service workload that was documented in CAD. At 38.7 minutes per call it would add an additional 549 CSO work hours during the year (and correspondingly reduce sworn Officer hours by the same amount). Field based civilian personnel are almost always an efficient and effective method to provide needed alternative call handling in a community but it is important to ensure that they are utilized. 6 This could be for several reasons, including not having a CSO on duty or multiple “CSO” type calls occurring close in time that an available sworn Officer would be dispatched rather than wait until a CSO was available. 361 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 38 Recommendation: Determine if CSOs calls for service and self-initiated activity is being thoroughly documented in CAD and if it is appropriate to increase documentation of their tasks in CAD. Evaluate ways to increase the workload of the Community Service Officers assigned to Patrol Operations. The next sections provide information regarding the level of committed and proactive time for Patrol Officers. 4. PATROL OFFICERS “PROACTIVE” TIME LEVEL REMAINS OVER 50% EVEN THOUGH THE NUMBER OF CONTRACTED PATROL HOURS HAS BEEN REDUCED FROM 150 TO 135 DAILY. Previous sections calculated the amount of committed time for the La Quinta Patrol Officers – the time handling community generated calls for service and the tasks related to the calls (i.e. writing reports, booking arrested persons). The amount of time remaining is referred to as “proactive time”. This is the third year that La Quinta has conducted a workload evaluation and the previous year’s calculations showed: • For calendar year 2014 (150 daily patrol hours all year) the average committed time was 42.0% and average proactive time was 58.0% • For calendar year 2015 (daily patrol hours were reduced to 140 hours beginning 7/1/15) the average committed time was 45.2% and average proactive time was 54.8% After the evaluation was completed in May 2016 the City chose to reduce the number of daily patrol hours to 135, beginning July 1, 2016. The next pages show the level of committed time and proactive time from the calendar year 2016 work data. The following sections review the data and assumptions used to calculate the level of committed and proactive time for La Quinta Patrol Officers. 362 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 39 (1) Assumptions Utilized to Calculate Workload Levels for 2016. There are several points of information and analytical assumptions that were utilized in the calculation and analysis of Officers’ committed and proactive time level: • Using the actual community generated calls for service obtained from the CAD data for a 12 month time period. This number excludes: calls handled by non- Patrol units and civilian Patrol units, all Officer initiated activities (such as traffic stops), administrative activities and calls cancelled prior to an Officer being dispatched (calls where the Officer is cancelled after being dispatched but before arrival at the scene are included). • These calculations do not include patrol supervisors, only Patrol Officers. • A normative value of a 50% back-up rate (i.e. an average of 1.5 Officers per call for service) was used as CAD data for back-up Officers was not available. • Meals and other breaks are taken evenly across all hours of a shift. • Administrative time is estimated at 90 minutes per shift; including tasks such as attending roll call, meal breaks, vehicle servicing and meeting with a supervisor. • The volume of calls for service throughout the day (the percentage for each 4 hour time period) was used to allocate the number of reports written. • Patrol Officers wrote 80% of the total reports written by LQPD. • The current Patrol Officer deployment was used to show distribution of the daily patrol hours during the year (140 daily hours from January – June and 135 hours from July – December). The 2016 committed / proactive time calculations are shown in the following table. (2) Patrol Operations Committed Time and Proactive Time Analysis. The following table shows the overall percentage of time that Patrol Officers’ were committed to the various reactive elements and the remaining percentage of “proactive time” as well as the percentages for four hour blocks of time during the day. This table uses the 140 daily patrol hours for six months and 135 daily patrol hours for six months – a total of 50,050 patrol hours. 363 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 40 2016 Committed and Proactive Time Patrol Task 0000 - 0400 0400 - 0800 0800 - 1200 1200 - 1600 1600 - 2000 2000 – 2400 Total Patrol Staff Allocation 11.8% 19.2% 14.7% 21.5% 13.5% 19.4% 100.0% Hours Staffed 5,901 9,590 7,377 10,746 6,742 9,695 50,050 Administrative Time 956 1,554 1,196 1,742 1,093 1,571 8,112 Available Work Hours 4,944 8,035 6,182 9,004 5,649 8,123 41,938 Calls for Service (CFS) 1,471 1,335 3,410 3,940 3,949 2,810 16,915 % of Total CFS 8.7% 7.9% 20.2% 23.3% 23.3% 16.6% 100% 1st Officer Minutes / CFS 35.6 35.6 35.6 35.6 35.6 35.6 35.6 1st Unit Hours 872 791 2,021 2,335 2,341 1,666 10,026 Back-Up Unit Responses 736 668 1,705 1,970 1,975 1,405 8,458 Back Up Minutes / CFS 26.7 26.7 26.7 26.7 26.7 26.7 26.7 Back Up Officer(s) Hours 327 297 758 876 878 625 3,760 Reports Written 712 646 1,650 1,907 1,911 1,360 8,187 Report Writing Time 534 485 1,238 1,430 1,434 1,020 6,140 Bookings 46 42 106 123 123 88 528 Prisoner Handling Time 23 21 53 61 62 44 264 Total Committed Hours 1,756 1,594 4,070 4,703 4,714 3,354 20,191 Total Proactive Hours 3,189 6,442 2,111 4,301 935 4,769 21,747 Committed Time Percent 35.5% 19.8% 65.8% 52.2% 83.4% 41.3% 48.1% Proactive Time Percent 64.5% 80.2% 34.2% 47.8% 16.6% 58.7% 51.9% These calculations show that Patrol Officers spent approximately 48% of their working hours handling community generated calls for service and the related tasks, leaving an overall “proactive time” average of 52%. This overall proactive time percentage is lower than the 2015 level of 54.8% but remains high and seven percentage points above a targeted 45% proactive time level. The following table shows the committed and proactive time results if LQPD had worked 135 daily patrol hours for all 12 months of 2016 – a total of 49,275 patrol hours. 364 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 41 Committed and Proactive Time – 135 Hours for All 12 Months Patrol Task 0000 - 0400 0400 - 0800 0800 - 1200 1200 - 1600 1600 - 2000 2000 – 2400 Total Patrol Staff Allocation 11.8% 19.2% 14.7% 21.5% 13.5% 19.4% 100.0% Hours Staffed 5,810 9,441 7,263 10,579 6,637 9,545 49,275 Administrative Time 956 1,554 1,196 1,742 1,093 1,571 8,112 Available Work Hours 4,853 7,887 6,067 8,838 5,545 7,973 41,163 Calls for Service (CFS) 1,471 1,335 3,410 3,940 3,949 2,810 16,915 % of Total CFS 8.7% 7.9% 20.2% 23.3% 23.3% 16.6% 100% 1st Officer Minutes / CFS 35.6 35.6 35.6 35.6 35.6 35.6 35.6 1st Unit Hours 872 791 2,021 2,335 2,341 1,666 10,026 Back-Up Unit Responses 736 668 1,705 1,970 1,975 1,405 8,458 Back Up Minutes / CFS 26.7 26.7 26.7 26.7 26.7 26.7 26.7 Back Up Officer(s) Hours 327 297 758 876 878 625 3,760 Reports Written 712 646 1,650 1,907 1,911 1,360 8,187 Report Writing Time 534 485 1,238 1,430 1,434 1,020 6,140 Bookings 46 42 106 123 123 88 528 Prisoner Handling Time 23 21 53 61 62 44 264 Total Committed Hours 1,756 1,594 4,070 4,703 4,714 3,354 20,191 Total Proactive Hours 3,097 6,293 1,997 4,135 831 4,619 20,972 Committed Time Percent 36.2% 20.2% 67.1% 53.2% 85.0% 42.1% 49.1% Proactive Time Percent 63.8% 79.8% 32.9% 46.8% 15.0% 57.9% 50.9% The overall proactive time level drops to 50.9% for 2016 if the 135 daily patrol hours had been in effect for all of 2016. There are several changes to note in several of the 4 hour time blocks when comparing 2016 proactive time to the 2015 proactive time results • Between 0800 and Noon the proactive time level increased from 23% in 2015 to 34% in 2016. • Later in the afternoon, between 1600 and 2000 hours the proactive time level dropped from 34% in 2015 to 16.6% in 2016. Both of these changes are the result of staffing adjustments made by LQPD to adapt to the reduction from 140 to 135 daily patrol hours, a total of 900 fewer Officer hours (July – December 2016). These changes are significant and show the difference that staffing levels and changes in calls for service patterns can have from year to year. It 365 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 42 also shows the importance of ongoing management evaluation to determine if there are adjustments that can reasonable be made to address changes to try and balance workload throughout the day. The first change listed above for the 0800 – Noon time period was primarily due to an increase of 880 additional hours staffed compared to 2015 and also a slight reduction of 137 CFS from 2015. The second change noted above is for the 1600 to 2000 hour time period in the early evening. This is a more significant change as the percentage of proactive time decreased from 34% in 2015 to 17% in 2016. The reduction in proactive time during these hours is primarily due to the change in swing shift deployment from 10 Officers to 9 Officers which resulted in 1,376 fewer staff hours but also due to an increase in the number of calls for service during these hours. Although the proactive time of Patrol Officers declined significantly it is important to note that during these busier work hours there are other LQPD field staff are on duty during all or some of these hours – they are and available to assist in handling calls for service if needed. This additional staff includes the on duty Patrol Sergeant, two Business District Officers, Special Enforcement Team Officers, Traffic Officers and a Community Service Officer – none of this staff is included in these Patrol Officer workload calculations. A solution to this situation that would increase the proactive time percentage between 1600 and 2000 is to adjust the start of day shift from 0600 to 0700 hours. This one hour adjustment would increase the staffing level between 1600 and 1700 where it is needed, and reduce the two hour shift overlap (0600 – 0800) to a one hour overlap, which is sufficient. This change would have the beneficial effect of reducing the very high 366 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 43 80% level of proactive time between 0400 and 0800 and move it to the 1600 - 2000 time period where it is very much needed. It would add 1,847 Officer hours to this evening time block and increase the proactive time percentage to 34.5%. The 0400 - 0800 proactive time would still remain very high at 75%. This is a reasonable move and is recommended to be implemented, subject to the constraints of the employment contract. Another move to address this issue would be to assign 9 Officers to Day shift and 10 Officers to Swing shift – a move of one Officer. This is a less effective but the move would shift some hours to the needed evening time slot. The project team compiled a summary of the last three years most relevant deployment, workload and proactive time information – presented in the following table. 2014 - 2016 Workload and Proactive Time 0000 - 0400 0400 - 0800 0800 - 1200 1200 - 1600 1600 - 2000 2000 – 2400 Total 2016 Staff Hours 5,901 9,590 7,377 10,746 6,742 9,695 50,050 Calls for Service 1,471 1,335 3,410 3,940 3,949 2,810 16,915 Committed Hours 1,756 1,594 4,070 4,703 4,714 3,354 20,191 Proactive Hours 3,189 6,442 2,111 4,301 935 4,769 21,747 Committed Time 35.5% 19.8% 65.8% 52.2% 83.4% 41.3% 48.1% Proactive Time 64.5% 80.2% 34.2% 47.8% 16.6% 58.7% 51.9% 2015 Staff Hours 6,497 9,743 6,497 10,556 8,118 11,369 52,780 Calls for Service 1,383 1,374 3,547 3,966 3,818 2,898 16,986 Committed Hours 1,643 1,633 4,215 4,713 4,537 3,444 20,185 Proactive Hours 3,858 6,618 1,287 4,226 2,337 6,184 24,510 Committed Time 29.9% 19.8% 76.6% 52.7% 66.0% 35.8% 45.2% Proactive Time 70.1% 80.2% 23.4% 47.3% 34.0% 64.2% 54.8% 2014 Staff Hours 8,760 9,127 9,488 9,488 9,127 8,760 54,750 Calls for Service 1,372 1,264 3,308 4,104 3,762 2,831 16,641 Committed Hours 1,615 1,488 3,893 4,830 4,427 3,332 19,585 Proactive Hours 5,852 6,291 4,194 3,257 3,352 4,135 27,080 Committed Time 21.6% 19.1% 48.1% 59.7% 56.9% 44.6% 42.0% Proactive Time 78.4% 80.9% 51.9% 40.3% 43.1% 55.4% 58.0% 367 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 44 In 2014 the project team recommended that La Quinta target an overall 45% proactive time level for patrol services. This is a good level of proactive time that allows regular Patrol Officers time during their shifts for various administrative tasks while also having availability to perform a good level of proactive policing in the field, including traffic enforcement, targeted patrol efforts to address specific beat issues/problems, walking patrol, and other tasks initiated by the Officer or directed by an Officer’s supervisor. The overall workload level as expressed in the amount of Officers’ “committed” hours is the most significant factor in determining the level of staffing in a community. However, another significant factor is that a police agency must maintain a minimum number of Officers during all hours of the day to provide for basic safety of Officers while on patrol and the ability of the Department to handle at least one critical incident. These factors combined must be evaluated and considered in the staffing and deployment of police resources in La Quinta and all communities. In La Quinta, for example, this reasonably requires a minimum staffing level of one Sergeant and four Officers on the Graveyard shift – this is the current deployment. Although this results in proactive time levels between approximately 65% and 80% between midnight and 0800 hours, this staffing level is necessary for the reasons stated above. Over the last three years La Quinta has reduced the number of daily patrol hours from 150 to 140 (July 1, 2015) and to 135 hours on July 1, 2016. This has resulted in cost savings for the city while maintaining a high service level to the community. There has been a planned reduction in overall proactive time from 58% in calendar year 2014 to 51.9% in 2016. If the 135 daily patrol hours had been in effect for all of 2016 it would have resulted in a 50.9% proactive time level. 368 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 45 (3) Potential Impacts to Patrol Officers Workload The number of calls for service has been consistent over the last three years it is possible that the number of calls for service could increase in the future. The project team made projections if the calls for service and related workload increased by 2%, 5% and 10%, and calculated the committed time and proactive time levels for each of these scenarios. All three of these projections are based on 130 daily patrol hours and assumed a one hour change in start time for dayshift from 0600 to 0700 hours. Proactive Time Levels at Increased Workload Levels 0000 – 0400 0400 – 0800 0800 – 1200 1200 – 1600 1600 – 2000 2000 – 2400 Total 2% CFS Increase Staff Hours 5,594 7,342 6,993 10,189 8,141 9,190 47,450 Calls for Service 1,500 1,362 3,478 4,019 4,028 2,866 17,253 Committed Hours 1,784 1,619 4,137 4,780 4,790 3,409 20,519 Proactive Hours 2,853 4,468 1,661 3,668 1,959 4,210 18,819 Committed Time 38.5% 26.6% 71.4% 56.6% 71.0% 44.7% 52.2% Proactive Time 61.5% 73.4% 28.6% 43.4% 29.0% 55.3% 47.8% 5% CFS Increase Staff Hours 5,594 7,342 6,993 10,189 8,141 9,190 47,450 Calls for Service 1,545 1,402 3,581 4,137 4,146 2,951 17,761 Committed Hours 1,827 1,658 4,236 4,894 4,906 3,491 21,012 Proactive Hours 2,810 4,429 1,561 3,553 1,844 4,128 18,326 Committed Time 39.4% 27.2% 73.1% 57.9% 72.7% 45.8% 53.4% Proactive Time 60.6% 72.8% 26.9% 42.1% 27.3% 54.2% 46.6% 10% CFS Increase Staff Hours 5,594 7,342 6,993 10,189 8,141 9,190 47,450 Calls for Service 1,618 1,469 3,751 4,334 4,344 3,091 18,607 Committed Hours 1,899 1,723 4,402 5,086 5,097 3,627 21,834 Proactive Hours 2,739 4,364 1,396 3,362 1,652 3,992 17,504 Committed Time 40.9% 28.3% 75.9% 60.2% 75.5% 47.6% 55.5% Proactive Time 59.1% 71.7% 24.1% 39.8% 24.5% 52.4% 44.5% Based on the last three years, it is unlikely that the number of calls will increase and as will be subsequently shown, it is very likely the number of calls will decrease. 369 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 46 However, if calls for service increased by 2% - 5% and La Quinta was receiving 130 daily patrol hours the City would still have a good level of proactive time for Patrol Officers. There are several changes that will occur in 2017 that will have a more significant impact on patrol workload than the possibility of an increase in the number of calls for service. One of the changes will increase the level of Patrol Officers proactive time and three of the changes will reduce the proactive time level: • False Alarm Ordinance – La Quinta is implementing a false alarm ordinance which will reduce the number of calls for service for building alarms. In 2016 the PD responds to about 3,500 building alarms annually and the ordinance will reduce this number of calls. If there is a 20% reduction it will save approximately 600 Officer work hours annually and if the reduction is 50% it will save over 1,400 work hours. This will result in an increase to the proactive time level from one percentage point to 2.4 percentage points. • Implementation of AB 953 – this requires the employing agency, beginning in April 2019, to report details about the stop and actions taken by the Officer. It is estimated the required documentation will take from 3 to 15 minutes to complete, depending on the circumstances of the individual incident. In 2016 LQPD Officers made 5,069 vehicle stops; allowing an average of 8 minutes documentation time per incident would equal an additional 676 hours of ‘report writing’ required. If the number of stops remains the same (which is unlikely as additional required documentation will reduce the number of discretionary stops made by Officers) it would reduce the overall proactive time level by one percentage point. • Body Worn Cameras – the implementation of cameras will require additional work by Officers to process the video documentation of the contacts during their shift and review as necessary the incidents where the camera was used. The project team includes this time under the “administrative time” category and it is reasonable to add 10 – 15 minutes per shift for this process. This would add 900 to 1,400 hours of administrative time annually. It would reduce the overall proactive time level by 1 to 1.7 percentage points. • School Resource Officers – The number of School Resource Officers may be reduced and if this occurs it will likely result in additional calls for service that Patrol Officers will handle at the schools. The impact cannot be estimated at this time for several reasons – the reduction of SROs is not known, the number of incidents handled by SROs at the schools is not known and the number of incidents handled by SROs that would result in a Patrol Officer response is not known. 370 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 47 Each of these items will increase proactive time or decrease proactive time but at this time the impacts can only be estimated at a reduction between one and two percentage points (not including the SROs). The project team continues to recommend moving toward the 45% proactive time level and, even taking into consideration the above items, a reduction to 130 daily patrol hours will still continue to provide a good level of service to the community – if the Department had staffed 130 daily patrol hours for all of 2016 the overall proactive time for Patrol Officers would have been 48.7% for the year. The project team believes that the current and anticipated patrol workload allows a further reduction from the current 135 daily patrol hours to 130 daily hours as a reasonable measure to realize cost savings while continuing to provide a good level of service to the community. Recommendations: Reduce the number of daily Patrol hours to 130 hours daily. 371 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 48 3. EVALUATION OF CONTRACT COST ALLOCATIONS / CHANGES The current contract between the City of La Quinta and the Sheriff’s Department took effect on July 1, 2012 and expires on June 30, 2017. As part of this project the project team was asked to review the contract to evaluate several changes that have occurred in the way costs are allocated and charged to La Quinta. 1. PATROL PERSONNEL COSTS The last two amendments to the contract were to reduce the Patrol daily contracted hours from 150 to 140 hours beginning July 1, 2015 and a further reduction to 135 hours took effect on July 1, 2016. These hourly reductions resulted in the following number of staff assigned to La Quinta PD: • 150 daily patrol hours (July 1, 2012 – June 30, 2015) equals 54,750 annual patrol hours and results in the costs for 30.76 Patrol Officers (at the RCSD calculated net work hours of 1,780 hours per Officer). • 140 daily patrol hours (July 1, 2015 – June 30, 2016) totals 51,100 annual patrol hours and results in the costs for 28.71 Patrol Officers • 135 daily patrol hours (July 1, 2016 – today) totals 49,275 annual patrol hours and results in the costs for 27.68 Patrol Officers In July 2016 an adjustment is being made to the Officer net work hours from 1,780 to 1,787 hours. If La Quinta continues to contract for 135 daily patrol hours it will result in a minor reduction in costs for Patrol Officers to 27.57 Officers. To provide 135 hours daily the RCSD currently assigns 27 Officers to La Quinta patrol services, as has been pointed out earlier in this report. All of these staff are assigned to patrol in La Quinta but may be called to respond to surrounding areas to 372 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 49 assist other law enforcement agencies with calls for service when Officers in that agency request assistance. This assistance is commonly referred to as ‘mutual aid’ or ‘automatic aid’. La Quinta Officers most often respond into Coachella or the unincorporated areas nearby to assist when requested. Officers assigned to La Quinta and Coachella both operate out of the Thermal Sub-station and are on the same radio channel. They hear each other’s calls/activity and can keep track of each other, and assist when necessary to help ensure officer safety. Coachella has a larger population that La Quinta (approximately 44,000 compared to 40,000 in La Quinta) and has a higher crime rate but Coachella only contracts for 90 Patrol hours daily. Since La Quinta deploys a high number of Officers per shift it is most likely that La Quinta Officers will more frequently respond to assist Coachella Officers than the reverse. To ensure that La Quinta was not paying for police services in Coachella, the RCSD developed a methodology to provide for appropriate cost accounting to ensure the City receiving the extra patrol services is appropriately charged for them. All Patrol Officers logged the time they respond into Coachella and if it totaled 30 minutes or more in a shift the Officer reported it and the cost was deducted from La Quinta’s bill and charged to Coachella. The same applied to Coachella Officers that responded to assist in La Quinta. Although this could allow some “free” services being provided to Coachella, overall it is an appropriate and reasonable way to ensure that Coachella is being properly charged for the additional resources being used in Coachella. Supervisors also have the responsibility to ensure that Officers only respond out of town when it is necessary. In 2017 the threshold was increased from 30 minutes per shift to 1 hour per shift and the 373 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 50 new guideline also provides that La Quinta Officers will only respond outside of the City to Priority 1 incidents, when requested, and for Officer safety needs. This may result in a small reduction in the credit La Quinta receives but it is a reasonable change and reduces the amount of administrative paperwork required by PD staff. 2. METHODOLOGY FOR DETERMINING THE NUMBER OF INVESTIGATORS REQUIRED. All law enforcement agencies the size of La Quinta should have investigators whose primary job responsibility is conducting follow-up investigations of reported crimes. The RCSD has developed a methodology that determines the number of investigators that are needed based on the number of Officers assigned to and paid for by contract cities. This methodology is fairly complicated and confusing to understand. It uses hourly rates for determining the cost of a Deputy Sheriff; these rates are called: “supported, dedicated, compensated” or “SDC” rate, and “supported, undedicated, productive” or “SUP” rate. All positions are “supported” (require added on costs for supervision, investigations, general administration, dispatching, technical services, etc.) whether or not they are “dedicated” positions such as Motor Officers or “undedicated” positions such as Patrol Officers. La Quinta currently contracts for a total of 38.7 Officer positions (27.7 Patrol, 4 Motors and 7 SET) and these are all “supported” positions. The formula developed by the RCSD for the number of Detectives needed is listed in the contract as using a multiplying factor of .143 Detective position for each sworn Officer position: • In 2015 this equaled 41.76 Officers (30.7 Patrol, 4 Motors, 7 SET Officers) x .143 = 5.97 Detectives • Effective 7/1/16 this equals 38.7 Officers (27.7 Patrol, 4 Motors, 7 SET Officers) x .143 = 5.5 Detectives 374 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 51 The project team was also informed that a ratio of 1 Detective for every 6.06 Patrol Officers (not including the Motor or SET Officers) is the current formula used to determine the number of Detectives – this calculates as 27.7 Officers / 6.06 = 4.6 Detectives. It is not known how either of these methodologies were developed but both of these formulas have a major flaw – they are not based on or directly related to the Detectives workload. As part of the original study completed in 2015 the project team obtained the number of La Quinta cases assigned to a Detective for follow-up investigation in calendar year 2014. These numbers are shown in the following table. Detective Case Assignments Case Type 2014 Total Monthly Homicide (assigned to Central Homicide Unit) 2 0.2 Robbery 9 0.8 Aggravated Assault 19 1.6 Burglary 7 0.6 Grand Theft 6 0.5 Fraud/Embezzlement 30 2.5 Sex Crimes 25 2.1 Child Abuse 16 1.3 Elder Abuse 7 0.6 Vandalism 3 0.3 Weapons Offenses 4 0.3 Missing Persons/Runaways 26 2.2 Death Investigation (unattended deaths) 15 1.3 Other (Assist Other PD, Suspicious Circumstances) 12 1.0 Total 181 15.1 A total of 181 La Quinta cases were assigned to Detectives during 2014, an average of 15 cases per month. La Quinta paid for six Detectives to work these cases – an average of just 2.5 cases per Detective per month – this is a very low workload for six Detectives. Based on the project team’s experience with other law enforcement studies a typical workload for a Detective is 5 – 10 new cases per month. This obviously depends 375 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 52 on the complexity of the cases being assigned for investigation. In La Quinta this would equal two or at most three Detectives to handle the 2014 investigative workload. The 2016 caseload would be approximately the same based on the number of crimes reported to the PD. A separate issue it the cost allocation of the Detectives assigned to the Thermal Substation. The following table shows the number and percent of cases for La Quinta, Coachella and the unincorporated areas, and the corresponding number of Detectives (out of the 12 assigned in 2015) that should be appropriated to each entity based on the cases that were actually assigned for follow-up. Detective Case Assignments and Appropriate Cost Allocation City Total for 2014 % of Cases Detective Allocation Based on Workload La Quinta 181 20.5% 2.5 Coachella 395 44.6% 5.4 Unincorporated 309 34.9% 4.2 Total 885 100.0% 12.0 La Quinta generated approximately 21% of the cases assigned to Detectives in 2014 but was paying for 54% of the Detectives (6.5 out of 12). Because of reductions to staff made by La Quinta over the last two years the City is now funding 4.6 Detectives, a reduction of two positions. As of May 2017 there were two, and soon to be three, vacant Detective positions – the positions are still funded but it is unknown if one or all of the positions are going to be filled. As long as these positions are vacant it reduces cost for La Quinta. The project team pointed out in the 2015 report that La Quinta should work with RCSD to reduce the number of Detectives assigned to La Quinta and also to revise the 376 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 53 methodology of allocating the cost of Investigations Units (Lieutenant, Sergeants and Detectives) to an equitable cost sharing percentage for each of the three entities. The more significant issue for La Quinta is the number of Detectives that are “required” to be paid for by the City. La Quinta only needs two or three Detectives and should not be required to fund positions that are not reasonable needed to conduct follow- up investigations of crime. Additionally, La Quinta contracts for five SET Officers that are also involved in following up on crimes in La Quinta which also reduces the number of Detectives needed. Although the project team did not obtain the specific number of cases assigned to Detectives for follow-up as part of this update project, the number of crimes reported in La Quinta in 2014 has over the last five years was obtained from FBI records and is listed in the following table. The following table shows the 2009-2013 five year period as well as the percentage change in the number of crimes reported. Crimes Reported 2011 – 2015 Crime 2011 2012 2013 2014 2015 Total 5 Yr. Avg. Change 2011 to 2015 Homicide 1 0 0 1 1 3 0.6 0.0% Rape 3 5 5 2 6 21 4.2 100.0% Robbery 33 45 26 33 24 161 32 -27.3% Aggravated Assault 151 100 37 51 49 388 78 -67.5% Burglary 477 541 402 314 181 1,915 383 -62.1% Larceny & Auto Burglary 901 1,033 1,002 954 972 4,862 972 7.9% Auto Theft 50 95 90 56 67 358 72 34.0% Arson 1 1 4 5 4 15 3 300.0% Total: 1,617 1,820 1,566 1,416 1,304 5,003 1,668 -19.4% Violent Crime 188 150 68 87 80 406 135 -57.4% Property Crime 1,429 1,670 1,498 1,329 1,224 4,597 1,532 -14.3% 377 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 54 The primary types of crimes that are assigned to Detectives for follow-up are rape7, robbery, aggravated assault, burglary and larcenies (petty thefts are included in this crime category but are not typically assigned to a Detective). The number of reported crimes has decreased over this time period – indicating there are a fewer number of cases to be assigned to Detectives. In summary, there are two issues that La Quinta should resolve – developing an equitable cost sharing allocation for the current Detective staff that is assigned to the Thermal Substation, and reducing the number of Detectives that must be funded by La Quinta to three Detectives. Recommendations: La Quinta should work with the Sheriff’s Department to develop a more equitable cost sharing allocation for the current Detective staff assigned to the Thermal Substation. La Quinta should work with the Sheriff’s Department to reduce the number of Detectives that must be funded by La Quinta to three Detectives. 7 The increase in the number of reported rapes may be due to a change from the “legacy” definition of rape to a revised definition. 378 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 55 APPENDIX A – PATROL STAFFING FACTORS AND GUIDELINES FOR COMMUNITIES Over the course of several hundred Police Department studies the Matrix Consulting Group has developed a list of key elements in the effective provision of field patrol services in a community, including the responsibility of Officers to be proactive during their shifts (to identify and resolve problems) and not just reactive in handling calls for service. These general policing elements are summarized on the next several pages. Management Task Comments Reactive Patrol Requirements • The primary mission of any law enforcement field patrol force and the most critical element of successful patrol services. • The PD should have clearly defined areas of responsibility (beats). • The Department should have clearly defined response policies in place; including prioritization of calls, response time targets for each priority and supervisor on scene policies. • This reactive workload should make up between 50% and 65% of each Officer’s net available time per shift (on average). This includes time to write reports, transport and book prisoners. Proactive Patrol Requirements • “Proactive time” is defined as all other activity not in response to a citizen generated call; it occurs during the shift when Officers are not handling calls and have completed other necessary tasks; it includes items such as traffic enforcement, directed patrol, bike and foot patrol. It is also sometimes referred to as “uncommitted” time but that is somewhat of a misnomer as it only means “not committed to handling community generated calls for service”. • The Department should have clearly defined uses for “proactive time” – i.e. Officers should know what they are expected to do with their time when not responding to calls for service. This may include targeted preventive patrol for general visibility, traffic enforcement, developing relationships with members of the community, visiting schools or parks. • The proactive element of field patrol should make up between 35% and 50% of an Officer’s day (on average). • Research and experience has shown the 35% – 50% range to be reasonable “proactive time” levels. 379 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 56 Management Task Comments Problem Identification and Resolution • Effective proactive patrol for municipal law enforcement requires the rapid identification of problems and issues, the development of an action plan to address issues as they arise, implementation of the potential solution and regular evaluations to determine if the approach successfully addressed the issue. • This approach should be used on criminal, traffic and other quality of life problems reported to the Department or discovered by Officers during the course of their patrol duties. • Officers have the primary role in accomplishing proactive tasks, field projects (e.g. Problem Oriented Policing), etc. • Formal and informal mechanisms for capturing and evaluating information should be used. This should be primarily handled by Officers and supervisors, but managers must also have involvement and oversight. Management of Patrol Resources • Patrol supervisors and managers must take an active role in management of patrol. This includes developing and utilizing management reports that accurately depict the activity, response times to calls for service and the variety of current issues and problems being handled by patrol units. • Resources must be geared to address actual workload and issues. This includes ensuring that patrol staffing is matched to workload, that patrol beats or sectors are designed to provide an even distribution of workload. • This also includes matching resources to address issues in a proactive manner. This may include shifting beats to free staff to handle special assignments, assigning Officers to targeted patrols, assigning traffic enforcement issues, etc. • Staffing should be related to providing effective field response to calls for service, provision of proactive activity and ensuring Officer and the safety of members of the public. • Supervisors should be both an immediate resource to field Officers (for advice, training, back-up, inter-personal skills) and field managers (handling basic administrative functions). Measurement of Success and Performance • Data should be used to plan and manage work in Patrol and other field work units. • Effective field patrol should be measured in multiple ways to ensure that the Department is successful in handling multiple tasks or functions. • Examples of effective performance measurement include: response time, time on scene, number of calls handled by an Officer, back-up rate, citations/warnings issued, and the overall level of crime and clearance rate. • Managers and supervisors should track and review performance measures on a regular basis to know what level of service is being provided to the community and for use as one of the tools to ensure that services are effective and efficient. 380 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 57 The matrix above summarizes the basic elements of an effective patrol service in a community that provides both reactive field services (response to community generated calls for service) and proactive work by Patrol Officers. During these times of limited or decreasing budgetary resources it becomes critically important for managers of the patrol function to make the best use of Officers’ time to provide effective policing and to meet community expectations. The following points summarize the key elements identified above in the effective provision of field patrol services: • Effective municipal law enforcement requires a field patrol force, which is designed and managed to be flexible in providing both reactive and proactive response to law enforcement issues in the community. • This requires that the Department balance personnel, resources and time to handle both reactive and proactive service elements. Between 50% and 65% of an officer’s time should be spent handling all of the elements of reactive patrol. The remaining 35% to 50% should be spent specific proactive patrol activities, other self-initiated tasks and community policing activities. A lower percentage of proactive time may be reasonable when the agency has other work units that conduct targeted proactive activities. • When an Officer has a block time available (e.g. during a slow day) the activities planned/conducted during this time should be part of a Patrol plan and not left unstructured and random. Effectively addressing issues in the community requires tasks be accomplished as part of a plan – addressing specific problems in pre- determined ways. The plans should be overseen by management but planned and accomplished at the Officer, Sergeant or watch commander level. • Any effective proactive approach to patrol requires that information be managed formally and that a formal effort be put into evaluating that information. This evaluation should lead to specific actions to address issues/problems in a community. In addition, attempts to address problems should be evaluated formally to determine if the efforts made have been effective. These basic elements represent the essential ingredients of effective and efficient municipal field law enforcement in United States in the 21st century. 381 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 58 Patrol “proactivity” is a very important part of field operations in communities such as La Quinta, where the call for service volume can vary significantly during hours of the day and season. During certain hours and months, very little time may be available for proactive initiatives, while on other days significant time may be spent on directed and officer-initiated activity. Planning and establishing patrol goals and specific pro-activity targets are important for effective management of a patrol operations force and to ensure that patrol officers are being used to accomplish desired tasks in meeting established goals. In most communities, the expectations placed on the police department to ensure a safe and orderly community are relatively high. Effectively managing proactive tasks of all field personnel is one significant method to demonstrate the department is taking the necessary steps toward the goal of creating and/or maintaining a safe community. FACTORS THAT SHOULD BE CONSIDERED WHEN DETERMINING AN APPROPRIATE PATROL STAFFING LEVEL. The project team uses an analytical approach to determine the staffing level required in a community such as La Quinta. The approach is characterized by several key factors that provide the basis for objective evaluation of a patrol force: • Staffing should be examined based on the ability of current staff to handle the calls for service generated by the community (and the related work such as report writing and processing arrestees); as well as providing sufficient time for proactive activities such as directed patrol, traffic enforcement and addressing on-going issues/problems in a neighborhood. • Staffing is dependent on the time officers are actually available to perform the work required of the patrol function. In this evaluation, leave hours usage and time dedicated to administrative functions are examined. • The number of patrol staff deployed should be the result of policymakers (City leaders) selecting a level of policing that is desired by the community. Establishing a targeted average level of proactive, or uncommitted, time is an effective method to determine the policing level that will be provided and also gives guidance to the police chief. 382 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 59 • The project team’s analysis does not include the utilization of ratios such as officers per thousand residents because it does not account for the unique characteristics of communities (e.g. demographics, workload, unique community needs, deployment). Although these ratios are interesting, they do not provide a comprehensive measure of staffing needs for a specific community, nor should policymakers use them as a basis to make decisions regarding patrol staffing. The project team’s approach is supported by the International Association of Chiefs of Police (IACP) that views officer per thousand ratios as “totally inappropriate as a basis for staffing decisions”8. Other significant factors for policy makers to consider when determining staffing levels include, but are not limited to, the following: • The type, severity and volume of crime in a community. • The ability of the Police Department to meet response time goals to calls for service and solve crime. • The desired level of Police Department involvement in providing non-traditional police services such as neighborhood problem solving, graffiti removal, community meetings and events and teaching/role modeling in the schools. • The desired level of proactive efforts such as traffic safety and parking enforcement, narcotics enforcement, enforcement of vice crimes such as prostitution and liquor laws. • Providing for basic officer safety and risk management of a patrol force. In some police agencies, primarily smaller ones, the desired level of proactive time may not be the primary measure to determine the minimum number of patrol officer positions needed. It may be driven by officer safety concerns and the need to provide reasonable community coverage 24 hours a day, seven days a week. For example, a staffing level needed to meet basic officer safety concerns may result in a proactive time that may be significantly above the 50% level for a portion of the day (typically the early morning hours). The following summary is provided in order to illustrate the implications of various proactive time levels: • A proactive time level of 25% or less reflects a patrol staff that is essentially fully committed most of the time (except during the low CFS hours of the day). Estimating this level as being fully committed is based on the fact that the CAD 8 International Association of Chiefs of Police, Patrol Staffing and Deployment Study, 2004, document 7218. 383 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 60 system does not capture all work tasks, functions and administrative duties that are performed by officers. At this high level of committed time (75%) the average travel times to high priority community-generated calls for service may be above 8 or 9 minutes and on-scene times may be below 30 minutes due to calls “stacking” and the need to respond to other incidents. This may not be enough time to conduct a thorough investigation of the incident or provide a high quality level of service. At this level of proactive time during most hours of the shift Officers will be responding to CFS and will not have time for any consistent proactive or project- oriented activity. The blocks of time will be generally too short (less than 20 minutes) to allow meaningful targeted patrol, working on beat projects, or neighborhood issues. • A 40% proactive time level is generally sufficient to provide blocks of time during most shifts when Officers can conduct targeted patrol and identified beat projects to address community issues. Average travel times to high priority community- generated calls for service should commonly be less than 6 minutes and on-scene times should commonly be above 30 minutes, sufficient to allow thorough investigations and sufficient time to provide a high quality level of service. • A 50% proactive time level will allow a patrol force on most workdays to have several hours during their shift to conduct targeted patrol, work on specific projects to address community issues and perform other officer-initiated activities. Average travel times to high priority community-generated calls for service should commonly be less than 5 minutes and on-scene times should commonly be above 30 minutes, sufficient to allow thorough investigations and sufficient time to provide a high quality level of service. • Proactive time levels above 50% may provide a challenge to supervisors to keep officers busy with meaningful work and engaged in the job. For communities that do have this high level of proactive time, it is important to plan for productive work and measure the results. Each community can choose an appropriate target level of proactive time desired for its patrol staff based on its unique needs, available funding, and policing model. An overall average proactive time level of 40% to 50% is a reasonable target/goal for a community that desires a patrol force which can provide a consistent level of proactive services to the community. Policymakers should determine the policing level for their community and understand the impacts of higher and lower proactive time levels. Higher 384 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 61 targeted proactive time levels will require more staff but also ensure that the police force is able to provide a higher level of service to the community through proactive policing and will also allow patrol officers to be more involved in issues/problems in the neighborhoods in which they serve. Communities with a proactive time level above 50% have the luxury of patrol staff handling more community problems/issues and unique needs. However, in these situations it is very important for patrol managers to plan the use of proactive time to accomplish identified needs. This requires that Officers and Sergeants make good use of their available proactive time and have accountability measures in place for evaluation. Sergeants and Officers on a given shift should be involved in determining individual productivity goals, receive regular feedback from their supervisor, and measure accomplishment of those goals throughout the year as part of the department’s performance evaluation and accountability system. With this system, supervisors should be provided regular (i.e., monthly) statistical reports showing each individual officer’s productivity, such as reports written, investigations conducted, arrests made, field contacts (e.g., vehicle and pedestrian stops), citations or warnings issued, foot patrol, problems/issues addressed on their beat, community meetings attended, and the number of calls for service handled. Policymakers should use the above factors to determine appropriate staffing levels for all functions within the police department. The goal of a patrol staffing analysis is to ensure sufficient patrol resources on duty 24 hours a day and available to providing a high level of service to the community. The ability of a police department to achieve a high level of service depends on knowing and evaluating the community demand 385 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 62 workload—the number of community-generated calls for service, reports, and bookings of arrested persons. These are the factors used by the project team to evaluate the number of Patrol Officers needed to achieve a staffing level that will provide the level of pro-activity desired by a community. 386 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 63 APPENDIX B – TRAVEL TIMES TO CALLS FOR SERVICE The following three tables show the La Quinta PD average travel time “increments” by call Priority type for the last three years. Travel time begins when the Officer is dispatched to the incident and ends when he/she arrives at the scene of the incident. Travel times of under 5 minutes are excellent time, times between 5 and 7 minutes and also 7 – 10 minutes are good travel times for most calls. Travel times above 10 minutes are typical for the lower Priority call types (3 and 4) but should not be frequent for Priority 2 or higher calls for service. The calls listed as “no time stamps” are the calls where neither a dispatch time nor arrival time was listed in the CAD record. Travel Time to Calls – 2016 Priority Type Travel Time CFS CFS % 0:00–4:59 5:00–6:59 7:00–9:59 Above 10:00 No Time Stamps 1 15 4 3 22 0.1% 1A 128 31 13 11 4 187 1.1% 2 2,199 1,093 1,111 1,971 980 7,354 43.5% 3 1,739 841 1,021 2,171 636 6,408 37.9% 4 908 319 369 1,178 170 2,944 17.4% Total 4,989 2,288 2,517 5,331 1,790 16,915 100% % of CFS 29.5% 13.5% 14.9% 31.5% 10.6% 100.0% RCSD responded to 43% of the calls in fewer than seven minutes of travel time which is an increase of almost 3 percentage points over 2014 and a slight increase over 2015. 387 CITY OF LA QUINTA, CALIFORNIA Final Report of the Patrol Staffing and Workload Update Matrix Consulting Group Page 64 The following table shows the time metrics for the 2015 calls for service followed by the 2014 table. Travel Time to Calls – 2015 Priority Type Travel Time CFS CFS % 0:00–4:59 5:00–6:59 7:00–9:59 Above 10:00 No Time Stamps 1 16 7 3 2 28 0.2% 1A 113 28 19 9 6 175 1.0% 2 2195 1102 1087 1956 929 7269 42.8% 3 1778 844 1019 2273 708 6622 39.0% 4 793 314 360 1135 191 2793 16.4% 5 0 0 0 0 99 99 0.6% Total 4,895 2,295 2,488 5,375 1,933 16,986 100% % of CFS 28.8% 13.5% 14.6% 31.6% 11.4% 100.0% RCSD responded to over 42% of the calls in fewer than seven minutes of travel time – a 2% increase from 2014. Travel Time to Calls – 2014 Priority Type Travel Time CFS CFS % 0:00–4:59 5:00–6:59 7:00–9:59 Above 10:00 No Time Stamps 1 2 16 3 2 4 27 0.2% 1A 10 149 38 16 10 223 1.3% 2 1,064 1,930 1,015 1,204 1,990 7,203 43.3% 3 706 1,606 814 969 2,179 6,274 37.7% 4 335 770 320 397 1,080 2,902 17.4% 5 11 1 0 0 0 12 0.1% Total 2,128 4,472 2,190 2,588 5,263 16,641 100% % of CFS 12.8% 26.9% 13.2% 15.6% 31.6% 100.0% RCSD responded to almost 40% of the calls in fewer than 7 minutes travel time. 388 City of La Quinta JOINT CITY COUNCIL/HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: FISCAL YEAR 2017/18 PROPOSED BUDGET RECOMMENDATION Provide direction regarding fiscal year 2017/18 budget options. EXECUTIVE SUMMARY This budget study session provides an update on the General Fund and the proposed budgets for the Housing Authority. Without Measure G funding, General Fund expenditures are expected to exceed revenues by $39,600. Funding adjustments have been incorporated as directed in the first two budget study sessions. FISCAL IMPACT The updated General Fund budget projects a deficit of $39,600 with projected revenue and transfers-in of $42,851,600 (excluding Measure G) and proposed expenditures and transfers-out of $42,891,200. Measure G revenue is projected to be $5.7 million in 2017/18. BACKGROUND/ANALYSIS The Budget Document The goals of the June 6th study session are to: 1) provide a General Fund budget update, 2) present options for unallocated Measure G revenue, and 3) present an updated budget for the Housing Authority. 2017/18 Proposed Budget – General Fund Update Since the May 2nd and May 16th budget study sessions staff has incorporated the authorized amendments to the General Fund budget as follows: Unfunded requests - On May 2nd staff detailed program and staffing requests - marketing, community programs and activities, and new staff positions totaling $519,200. Subsequently on May 16th these requests were reduced by $5,000. Funding in the amount of $30,000 for the Art on Main Street event has not been incorporated at this time. A total of $484,200 has been funded as outlined below. STUDY SESSION ITEM NO. 2 389 Reduced police service costs - The 2017/18 preliminary costs were projected to increase by 11.7 percent or $1.7 million. Community Resources and the City Manager worked with the Sheriff’s Department to identify expenditure reductions that do not impact service levels. Staff outlined cost reduction options during the study session on May 16th. Service adjustments totaling $687,000 have reduced the police service costs increase to 7.06 percent or $1 million. Unallocated Measure G Revenue Options Based upon Council direction from the May 2nd and May 16th budget study sessions, the Executive Team crafted budget reduction options for consideration. Allocate Measure G funds for some police costs – The proposed CIP budget allocated $4,969,500 of the $5.7 million of anticipated Measure G revenue leaving $730,500 unallocated. In addition, $1 million of budgeted revenue in 2016/17 has not been expended. These funds could be used to partially fund rising police costs and establish a special restricted fund for future law enforcement services. Restricted funds would be allocated based on Council direction through the budget process and would be subject to the same oversight, auditing, and reporting requirements as all other funds. Housing Authority Funds Housing Authority Fund expenses have increased by $216,700 due to building repairs at the La Quinta Cove properties, necessary minor mechanical repairs at Washington Street Apartments, and the addition of half a position to support program administration (this position was authorized in the 2016/17 Mid-Year Budget adjustment). Funding totaling $11,104,900 for the proposed Washington Street Apartment’s construction, rehabilitation, and resident relocation plan have been incorporated in the 2004 and 2011 Bond Funds, these bonds were refinanced in 2014 and 2016 respectively. The project expenses meet the original intended purpose of the bond proceeds. Relocation funds are projected to be distributed in January 2019. These funds will be carried over from 2017/18 to 2018/19. A formal recognition of this future 390 expenditure is required for approval of the relocation plan. Construction, planning and design costs will be disbursed through monthly draws to the developer when expenses are incurred. These funds will also be carried over to future fiscal years until the project is completed and require formal approval. ALTERNATIVES The Council may wish to request further information regarding specific items and then provide direction regarding the next steps. Per State law, the City must adopt a budget by June 30. Prepared by: Karla Campos, Finance Director Approved by: Frank J. Spevacek, City Manager Attachment: 1. Fiscal Year 2017/18 Proposed Budget for General Fund and Housing Authority Funds 391 392 ESTIMATED  CURRENT RESOURCES: REVENUES: TAXES 34,021,100$    LICENSES & PERMITS 1,257,700$      INTERGOVERNMENTAL 10,923,000$    CHARGES FOR SERVICES 1,258,200$      FINES & ASSESSMENTS 246,000$          OTHER/MISCELLANEOUS 655,200$          TOTAL REVENUES 48,361,200$    TRANSFERS IN 190,400$          TOTAL ESTIMATED  CURRENT RESOURCES 48,551,600$    Measure G (5,700,000)$    42,851,600$    ESTIMATED  CURRENT REQUIREMENTS: EXPENDITURES: CITY COUNCIL 324,000$          CITY MANAGER 1,939,400$      CITY MANAGER 769,000$ MARKETING/COMMUNITY RELATIONS 1,170,400$ CITY ATTORNEY 460,000$          CITY CLERK 552,200$          COMMUNITY RESOURCES 25,934,300$    HUMAN RESOURCES 462,900$ CR ADMIN 703,500$ WELLNESS CENTER 679,300$ RECREATION PROGRAMS 345,000$ CODE ENFORCEMENT 1,134,500$ POLICE 15,879,100$ FIRE 6,730,000$ DESIGN & DEVELOPMENT 5,328,300$      D&D ADMIN 1,205,500$ PLANNING 524,700$ BUILDING 917,200$ THE HUB 786,300$ PUBLIC WORKS DEVELOPMENT SERVICES 595,200$ ENGINEERING SERVICES 1,299,400$ FACILITIES 3,192,000$      PARKS MAINTENANCE 1,582,300$ PUBLIC BUILDINGS 1,601,100$ STREETS 8,600$ FISCAL SERVICES 2,389,500$      FINANCE 1,123,200$ CENTRAL SERVICES 1,266,300$ TOTAL EXPENDITURES 40,119,700$    TOTAL TRANSFERS OUT 2,771,500$      TOTAL ESTIMATED  CURRENT REQUIREMENTS 42,891,200$    SURPLUS/(SHORTFALL) CURRENT RESOURCES TO CURRENT REQUIREMENTS (39,600)$           CITY OF LA QUINTA GENERAL FUND EXPENDITURES BY DEPARTMENT/DIVISION FISCAL YEAR 2017/18 PROPOSED CITY OF LA QUINTA GENERAL FUND UPDATE 2017/18 PROPOSED BUDGET 393 2015/16 Actual Expenses 2016/17 Original Budget 2016/17 Current Budget 2017/18 Proposed Budget 17/18 vs Current 16/17 241 - HOUSING AUTHORITY 9101 - Housing Authority - Admin Salaries and Benefits 63,549.98 37,400.00 52,100.00 63,400.00 11,300.00241-9101-50101 Permanent Full Time 0.00 0.00 0.00 3,000.00 3,000.00241-9101-50110 Commissions & Boards 4.00 300.00 300.00 600.00 300.00241-9101-50150 Other Compensation 3,930.20 2,900.00 2,900.00 11,900.00 9,000.00241-9101-50200 PERS-City Portion 0.00 100.00 100.00 100.00 0.00241-9101-50210 PERS-Survivor Benefits 14,252.37 8,300.00 8,800.00 18,200.00 9,400.00241-9101-50221 Medical Insurance 358.22 0.00 0.00 0.00 0.00241-9101-50222 Vision Insurance 1,650.33 0.00 0.00 0.00 0.00241-9101-50223 Dental Insurance 76.41 0.00 0.00 0.00 0.00241-9101-50224 Life Insurance 542.49 400.00 400.00 700.00 300.00241-9101-50225 Long Term Disability 1,899.96 1,200.00 1,200.00 3,000.00 1,800.00241-9101-50230 Workers Comp Insurance 909.48 600.00 600.00 1,100.00 500.00241-9101-50240 Social Security-Medicare 50 - Salaries and Benefits Totals:87,173.44 51,200.00 66,400.00 102,000.00 35,600.00 Contract Services 59,118.34 70,000.00 70,000.00 0.00 (70,000.00)241-9101-60103 Professional Services 3,500.00 6,000.00 6,000.00 0.00 (6,000.00)241-9101-60106 Auditors 4,516.29 10,000.00 10,000.00 0.00 (10,000.00)241-9101-60153 Attorney 60 - Contract Services Totals:67,134.63 86,000.00 86,000.00 0.00 (86,000.00) Maintenance & Operations 1,215.90 0.00 0.00 1,000.00 1,000.00241-9101-60320 Travel & Training 0.00 2,000.00 2,000.00 2,000.00 0.00241-9101-60420 Operating Supplies 62 - Maintenance & Operations Totals:1,215.90 2,000.00 2,000.00 3,000.00 1,000.00 Internal Service Charges 12,999.96 13,000.00 13,000.00 20,000.00 7,000.00241-9101-91844 Earthquake Insurance 0.00 0.00 0.00 8,400.00 8,400.00241-9101-98110 Information Tech Charges 69 - Internal Service Charges Totals:12,999.96 13,000.00 13,000.00 28,400.00 15,400.00 9101 - Housing Authority - Admin Totals:168,523.93 152,200.00 167,400.00 133,400.00 (34,000.00) 9102 - Housing Authority - Wash St Apts Contract Services 0.00 0.00 0.00 70,000.00 70,000.00241-9102-60103 Professional Services 0.00 0.00 0.00 2,500.00 2,500.00241-9102-60106 Auditors 60 - Contract Services Totals:0.00 0.00 0.00 72,500.00 72,500.00 Maintenance & Operations 208,673.44 615,200.00 615,200.00 466,100.00 (149,100.00)241-9102-60157 Rental Expenses 62 - Maintenance & Operations Totals:208,673.44 615,200.00 615,200.00 466,100.00 (149,100.00) Debt Service 0.00 109,400.00 109,400.00 109,100.00 (300.00)241-9102-61609 Interest Expense - Provident 0.00 17,100.00 17,100.00 17,000.00 (100.00)241-9102-61610 Interest Expense - USDA 0.00 45,100.00 45,100.00 45,300.00 200.00241-9102-61680 Principal Payment - Provident 0.00 21,200.00 21,200.00 21,200.00 0.00241-9102-61681 Principal Payment - USDA 67 - Debt Service Totals:0.00 192,800.00 192,800.00 192,600.00 (200.00) Capital Expenses 0.00 0.00 0.00 50,000.00 50,000.00241-9102-72100 Building Improvements 68 - Capital Expenses Totals:0.00 0.00 0.00 50,000.00 50,000.00 9102 - Housing Authority - Wash St Apts Totals:208,673.44 808,000.00 808,000.00 781,200.00 (26,800.00) 9103 - Housing Authority - LQRP Contract Services 0.00 0.00 0.00 2,500.00 2,500.00241-9103-60106 Auditors 0.00 0.00 0.00 5,000.00 5,000.00241-9103-60153 Attorney 6,174.96 0.00 0.00 0.00 0.00241-9103-60155 Uncollected Rent 6,699.70 0.00 0.00 0.00 0.00241-9103-60156 Prop Damage/Other 60 - Contract Services Totals:12,874.66 0.00 0.00 7,500.00 7,500.00 63,549.98 37,400.00 52,100.00 63,400.00 11,300.00 0.00 0.00 0.00 3,000.00 3,000.00 4.00 300.00 300.00 600.00 300.00 3,930.20 2,900.00 2,900.00 11,900.00 9,000.00 0.00 100.00 100.00 100.00 0.00 14,252.37 8,300.00 8,800.00 18,200.00 9,400.00 358.22 0.00 0.00 0.00 0.00 1,650.33 0.00 0.00 0.00 0.00 76.41 0.00 0.00 0.00 0.00 542.49 400.00 400.00 700.00 300.00 1,899.96 1,200.00 1,200.00 3,000.00 1,800.00 909.48 600.00 600.00 1,100.00 500.00 87,173.44 51,200.00 66,400.00 102,000.00 35,600.00 59,118.34 70,000.00 70,000.00 0.00 (70,000.00) 3,500.00 6,000.00 6,000.00 0.00 (6,000.00) 4,516.29 10,000.00 10,000.00 0.00 (10,000.00) 67,134.63 86,000.00 86,000.00 0.00 (86,000.00) 1,215.90 0.00 0.00 1,000.00 1,000.00 0.00 2,000.00 2,000.00 2,000.00 0.00 1,215.90 2,000.00 2,000.00 3,000.00 1,000.00 12,999.96 13,000.00 13,000.00 20,000.00 7,000.00 0.00 0.00 0.00 8,400.00 8,400.00 12,999.96 13,000.00 13,000.00 28,400.00 15,400.00 168,523.93 152,200.00 167,400.00 133,400.00 (34,000.00) 0.00 0.00 0.00 70,000.00 70,000.00 0.00 0.00 0.00 2,500.00 2,500.00 0.00 0.00 0.00 72,500.00 72,500.00 208,673.44 615,200.00 615,200.00 466,100.00 (149,100.00) 208,673.44 615,200.00 615,200.00 466,100.00 (149,100.00) 0.00 109,400.00 109,400.00 109,100.00 (300.00) 0.00 17,100.00 17,100.00 17,000.00 (100.00) 0.00 45,100.00 45,100.00 45,300.00 200.00 0.00 21,200.00 21,200.00 21,200.00 0.00 0.00 192,800.00 192,800.00 192,600.00 (200.00) 0.00 0.00 0.00 50,000.00 50,000.00 0.00 0.00 0.00 50,000.00 50,000.00 208,673.44 808,000.00 808,000.00 781,200.00 (26,800.00) 0.00 0.00 0.00 2,500.00 2,500.00 0.00 0.00 0.00 5,000.00 5,000.00 6,174.96 0.00 0.00 0.00 0.00 6,699.70 0.00 0.00 0.00 0.00 12,874.66 0.00 0.00 7,500.00 7,500.00 CITY OF LA QUINTA HOUSING AUTHORITY EXPENSES 2017/18 PROPOSED BUDGET 394 2015/16 Actual Expenses 2016/17 Original Budget 2016/17 Current Budget 2017/18 Proposed Budget 17/18 vs Current 16/17 Maintenance & Operations 0.00 0.00 0.00 250,000.00 250,000.00241-9103-60157 Rental Expenses 62 - Maintenance & Operations Totals:0.00 0.00 0.00 250,000.00 250,000.00 9103 - Housing Authority - LQRP Totals:12,874.66 0.00 0.00 257,500.00 257,500.00 241 - HOUSING AUTHORITY Totals:390,072.03 960,200.00 975,400.00 1,172,100.00 196,700.00 0.00 0.00 0.00 250,000.00 250,000.00 0.00 0.00 0.00 250,000.00 250,000.00 12,874.66 0.00 0.00 257,500.00 257,500.00 390,072.03 960,200.00 975,400.00 1,172,100.00 196,700.00 CITY OF LA QUINTA HOUSING AUTHORITY EXPENSES 2017/18 PROPOSED BUDGET 395 Fund: 241 - HOUSING AUTHORITY Permanent Full Time 63,400.00241-9101-50101 50% - Management Assistant 50% - Management Specialist City Council Member SƟpends (5) Housing Commissioner SƟpends Increase in FY 2017/18 due to the addiƟon of 50% of a Management Assistant posiƟon which is shared with the City Clerk department. Travel & Training 1,000.00241-9101-60320 Operating Supplies 2,000.00241-9101-60420 Tenant luncheon and mailings Professional Services 70,000.00241-9102-60103 Expenses were relocated from 241-9101-60103 in FY 2017/18. Expenses are used for: Riverside County Recording Fees Tenant Veri ficaƟons Government ReporƟng and Document PreparaƟon Rental Expenses 466,100.00241-9102-60157 In FY 2016/17 the budget included expenses for the La Quinta Rental ProperƟes. These expenses have been moved to account number 241-9103-60157. Building Improvements 50,000.00241-9102-72100 Mechanical/HVAC Repairs Exterior LighƟng Improvements Rental Expenses 250,000.00241-9103-60157 In FY 2016/17 these expenses were previously budgeted in account number 241-9102-60157. 396 2015/16 Actual Expenses 2016/17 Original Budget 2016/17 Current Budget 2017/18 Proposed Budget 17/18 vs Current 16/17 242 - HOUSING AUTHORITY PA2 9201 - Housing Authority PA2 Salaries and Benefits 825.00 0.00 0.00 0.00 0.00242-9201-50101 Permanent Full Time 50 - Salaries and Benefits Totals:825.00 0.00 0.00 0.00 0.00 Maintenance & Operations 336,534.16 0.00 0.00 0.00 0.00242-9201-60157 Rental Expenses/LQPR 62 - Maintenance & Operations Totals:336,534.16 0.00 0.00 0.00 0.00 Debt Service 112,726.46 0.00 0.00 0.00 0.00242-9201-61609 Interest Expense - Provident 19,135.12 0.00 0.00 0.00 0.00242-9201-61610 Interest Expense - USDA/WSA 41,747.98 0.00 0.00 0.00 0.00242-9201-61680 Principal Payment - Provident 19,235.12 0.00 0.00 0.00 0.00242-9201-61681 Principal Payment - USDA 67 - Debt Service Totals:192,844.68 0.00 0.00 0.00 0.00 9201 - Housing Authority PA2 Totals:530,203.84 0.00 0.00 0.00 0.00 242 - HOUSING AUTHORITY PA2 Totals:530,203.84 0.00 0.00 0.00 0.00 825.00 0.00 0.00 0.00 0.00 825.00 0.00 0.00 0.00 0.00 336,534.16 0.00 0.00 0.00 0.00 336,534.16 0.00 0.00 0.00 0.00 112,726.46 0.00 0.00 0.00 0.00 19,135.12 0.00 0.00 0.00 0.00 41,747.98 0.00 0.00 0.00 0.00 19,235.12 0.00 0.00 0.00 0.00 192,844.68 0.00 0.00 0.00 0.00 530,203.84 0.00 0.00 0.00 0.00 530,203.84 0.00 0.00 0.00 0.00 CITY OF LA QUINTA HOUSING AUTHORITY EXPENSES 2017/18 PROPOSED BUDGET Fund 242 was eliminated in FY 2016/17. These expenses were relocated to Fund 241. 397 2015/16 Actual Expenses 2016/17 Original Budget 2016/17 Current Budget 2017/18 Proposed Budget 17/18 vs Current 16/17 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014) 9102 - Housing Authority - Wash St Apts Contract Services 0.00 0.00 0.00 145,000.00 145,000.00248-9102-60103 Professional Services 0.00 0.00 0.00 229,700.00 229,700.00248-9102-60159 Relocation Benefits 359,718.86 0.00 0.00 330,200.00 330,200.00248-9102-60185 Design 0.00 0.00 0.00 1,000,000.00 1,000,000.00248-9102-60198 Planning & Development 60 - Contract Services Totals:359,718.86 0.00 0.00 1,704,900.00 1,704,900.00 9102 - Housing Authority - Wash St Apts Totals:359,718.86 0.00 0.00 1,704,900.00 1,704,900.00 SA 2004 LO/MOD BOND FUND (Refinanced in 2014) Totals:359,718.86 0.00 0.00 1,704,900.00 1,704,900.00 0.00 0.00 0.00 145,000.00 145,000.00 0.00 0.00 0.00 229,700.00 229,700.00 359,718.86 0.00 0.00 330,200.00 330,200.00 0.00 0.00 0.00 1,000,000.00 1,000,000.00 359,718.86 0.00 0.00 1,704,900.00 1,704,900.00 359,718.86 0.00 0.00 1,704,900.00 1,704,900.00 359,718.86 0.00 0.00 1,704,900.00 1,704,900.00 CITY OF LA QUINTA BOND FUND EXPENSES 2017/18 PROPOSED BUDGET 398 Fund: 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014) Professional Services 145,000.00248-9102-60103 Relocation Benefits 229,700.00248-9102-60159 RelocaƟon funds are projected to be distributed in January 2019. These funds are being designated as set aside via budget resoluƟon for this future purpose and will be carried over from FY 2017/18 to 2018/19. A formal recogniƟon of this future expenditure is required for final approval of the relocaƟon plan. Planning & Development 1,000,000.00248-9102-60198 Funds will be disbursed through draws to the developer. These funds are being designated as set aside via budget resoluƟon for this future purpose and will be carried over from FY 2017/18 to 2018/19. A formal recogniƟon of this future expenditure is required for final approval of the relocaƟon plan. 399 2015/16 Actual Expenses 2016/17 Original Budget 2016/17 Current Budget 2017/18 Proposed Budget 17/18 vs Current 16/17 249 - SA 2011 LOW/MOD BOND FUND 9102 - Housing Authority - Wash St Apts Contract Services 0.00 0.00 0.00 9,400,000.00 9,400,000.00249-9102-60188 Construction 60 - Contract Services Totals:0.00 0.00 0.00 9,400,000.00 9,400,000.00 9102 - Housing Authority - Wash St Apts Totals:0.00 0.00 0.00 9,400,000.00 9,400,000.00 249 - SA 2011 LOW/MOD BOND FUND Totals:0.00 0.00 0.00 9,400,000.00 9,400,000.00 0.00 0.00 0.00 9,400,000.00 9,400,000.00 0.00 0.00 0.00 9,400,000.00 9,400,000.00 0.00 0.00 0.00 9,400,000.00 9,400,000.00 0.00 0.00 0.00 9,400,000.00 9,400,000.00 CITY OF LA QUINTA BOND FUND EXPENSES 2017/18 PROPOSED BUDGET (Refinanced in 2016) 400 Fund: 249 - SA 2011 LOW/MOD BOND FUND Construction 9,400,000.00249-9102-60188 ConstrucƟon funds will be disbursed through draws to the developer. These funds are being designated as set aside via budget resoluƟon for this future purpose and will be carried over from FY 2017/18 to 2018/19. A formal recogniƟon of this future expenditure is required for final approval of the relocation plan. 401 402 City of La Quinta JOINT CITY COUNCIL/ HOUSING AUTHORITY MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTIONS APPROVING AN AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT AND THE ASSOCIATED SUMMARY REPORT BETWEEN THE LA QUINTA HOUSING AUTHORITY AND COACHELLA VALLEY HOUSING COALITION TO PURCHASE PROPERTY LOCATED AT THE SOUTHEAST CORNER OF HIDDEN RIVER ROAD AND WASHINGTON STREET FOR THE PURPOSE OF REHABILITATING, CONSTRUCTING AND OPERATING AFFORDABLE RENTAL HOUSING RECOMMENDATION Adopt a Housing Authority and City Council resolution approving an Affordable Housing and Property Disposition Agreement and the associated Summary Report between the La Quinta Housing Authority and Coachella Valley Housing Coalition for property located at the southeast corner of Hidden River Road and Washington Street for the purpose of rehabilitating, constructing, and operating affordable rental housing; and authorize the City Manager/Executive Director to make minor revisions that do not substantively change the business terms and execute the Agreement. EXECUTIVE SUMMARY  In October 2008 the La Quinta Redevelopment Agency (Agency) purchased the Washington Street Apartments (WSA) and the adjoining unimproved property.  When the Agency was dissolved, WSA and the adjacent vacant land parcel (Site) were transferred to the La Quinta Housing Authority (Authority).  The Authority subsequently initiated negotiations with the Coachella Valley Housing Coalition (CVHC) to facilitate the sale and substantial rehabilitation of WSA, and the development of new units on the vacant parcel.  The Summary Report (Attachment 1) summarizes the proposed Affordable Housing and Property Disposition Agreement (Agreement) (Attachment 2) by and between the Authority and CVHC. FISCAL IMPACT The Agreement obligates the Authority to invest up to $17,425,010. This entails:  Housing bond proceeds - $11,473,036  The value of the land, improvements and the WSA reserve funds -$4,585,252  The value of the design and entitlement work competed to date - $1,366,722. PUBLIC HEARING ITEM NO. 1 403 BACKGROUND/ANALYSIS In October 2008, the Agency purchased WSA, a 72-unit senior and adults with disabilities affordable housing complex on approximately 4.7 acres. The Agency also purchased approximately 6.8 acres of unimproved real property adjoining WSA to develop additional affordable rental housing. The properties were purchased with redevelopment that had an obligation to improve and increase the supply of affordable housing within the city. In 2012, the Site was transferred to the Authority when redevelopment was eliminated. To effectuate development of affordable housing, the Authority negotiated the proposed Agreement with CVHC to rehabilitate the existing WSA units, and to develop additional units on the WSA property and the adjacent unimproved property. The project details and development terms and conditions are outlined in the Summary Report and Agreement. WSA was built in 1980, and is in need of substantial rehabilitation; the existing 72 units would be substantially rehabilitated, the community building would be demolished and replaced with twenty-six (26) new one bedroom units, a new community building, and related amenities and site improvements. The unimproved real property would be developed with forty-two (42) new one-bedroom units, a new community building, and related amenities and site improvements. The proposed Agreement would:  Implement the goals, policies and programs outlined in the City’s Housing Element and comply with the Authority’s affordable housing requirements, as defined in the California Health and Safety Code (the Authority is the Housing Successor of the Agency and is required to fulfill the Agency’s affordable housing mandate).  Provide dwellings affordable to lower-income households at various levels, such as extremely low, very low, and low-income households.  Include units that would be reserved for and/or generally available to special needs households, which would include senior and disabled adult households. The Agreement and Summary Report were presented to the Housing Commission on May 17, 2017; the Housing Commission recommended (2 yeas, 1 nay) that the Authority approve the Agreement. ALTERNATIVES Staff does not recommend an alternative, as approval is required for CVHC to secure tax credits. Prepared by: Gil Villalpando, Business Analyst Approved by: Frank J. Spevacek, City Manager Attachments: 1. Summary Report 2. Washington Street Apartments AHPDA 404 RESOLUTION NO. 2017- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA APPROVING AN AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT BETWEEN THE LA QUINTA HOUSING AUTHORITY AND COACHELLA VALLEY HOUSING COALITION FOR THE PROPERTY LOCATED EAST OF WASHINGTON STREET AND SOUTH OF HIDDEN RIVER ROAD WHEREAS, the La Quinta Housing Authority (“Authority”) is a public body, corporate and politic, organized and existing under the Housing Authorities Law (Health & Safety Code § 34200 et seq.) (the “HAL”); and WHEREAS, a fundamental purpose of the HAL is to expand the supply of low- and moderate-income housing (Health & Safety Code, § 33071); and WHEREAS, Authority is the successor housing entity to the former La Quinta Redevelopment Agency pursuant to Health and Safety Code section 34176(b)(2), and Authority Resolution No. 2012-002, which was adopted by Authority on January 17, 2012; and WHEREAS, Authority staff have negotiated an Affordable Housing and Property Disposition Agreement ("Agreement") with Coachella Valley Housing Coalition, a California corporation ("Developer"), pursuant to which (i) Authority would sell to Developer the existing 73-residential unit senior and disabled adult affordable housing development commonly known as Washington Street Apartments (the “Apartment Site”), and that certain vacant real property located adjacent to the Apartment Size and consisting of approximately 6.8 acres (the “Vacant Site”, and, collectively with the Apartment Site, the “Property”), and provide to Developer financial assistance (the “Authority Assistance”) in an amount up to Seventeen Million Four Hundred Twenty- Five Thousand Ten Dollars ($17,425,010); and (ii) Developer would rehabilitate 72 of the existing residential units on the Apartment Site, develop 26 new residential units on the Apartment Site, and develop 42 new residential units on the Vacant Site, with all but two of the units restricted for rental to and occupancy by persons and families of very low-, and low-income, at rent levels affordable to such persons, two management units restricted for rental to and occupancy by persons and families of moderate income, at rent levels affordable to such persons, and certain on-site private improvements and off-site public improvements necessary to serve the development (collectively, the "Project"), all as more particularly described in the Agreement; and WHEREAS, pursuant to the Agreement, as a condition to Authority's sale of the Property and provision of the Authority Assistance, Developer and Authority would 405 Resolution No. 2017- Housing and Property Disposition between Housing Authority and CV Housing Coalition Adopted: June 6, 2017 Page 2 record against the Property an Affordable Housing Regulatory Agreement substantially in the form attached to the Agreement (the “Regulatory Agreement”), that restricts the use of the Property, for a period of fifty-five (55) years, as a senior and disabled adult affordable rental housing project; and WHEREAS, Developer would be required to execute two notes evidencing its obligation to repay the Authority Assistance, with such repayment based on the cash flow generated from Developer’s operation of the Project; and WHEREAS, the La Quinta Planning Commission previously adopted (i) with respect to the rehabilitation of 72 of the existing residential units and development of 26 new residential units at the Apartment Site, a Negative Declaration of Environmental Impact for Tentative Parcel Map 36421, Conditional Use Permit 2011- 135, and Site Development Permit 2011-920, under Environmental Assessment 2011- 613, by adoption of Planning Commission Resolution No. 2012-003, on February 14, 2012, and (ii) with respect to the development of 42 new residential units on the Vacant Site, a Mitigated Negative Declaration of Environmental Impact under Environmental Assessment 2013-627, by adoption of Planning Commission Resolution No. 2013-008, on June 25, 2013 (collectively, the “Prior Environmental Approvals”); and WHEREAS, each of Health and Safety Code Section 33433 and Government Code 52201 require that Authority prepare a Summary Report to consider Authority's proposed financial contribution to the Project as set forth in the Agreement, that the Authority Board and the City Council conduct a noticed joint public hearing with respect to the Agreement, and that the approval of the Agreement be accompanied by certain findings and determinations as set forth herein; and WHEREAS, a Summary Report for the Agreement has been prepared and the joint public hearing has been conducted in accordance with applicable requirements of law; and WHEREAS, the City Council and the Authority Board have considered all the information and evidence set forth in the Summary Report presented by City/Authority staff and presented by persons wishing to appear and be heard concerning the impact of the Agreement on the City; and WHEREAS, the Agreement will increase, improve, and preserve affordable housing in the City of La Quinta; and WHEREAS, the Agreement and the Authority's financial contribution pursuant to the Agreement are of benefit to and in the best interests of the City of La Quinta. 406 Resolution No. 2017- Housing and Property Disposition between Housing Authority and CV Housing Coalition Adopted: June 6, 2017 Page 3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City Of La Quinta, California, as follows: 1. That the above recitals are true and correct and incorporated herein. 2. That the City Council resolves as follows: a. No further environmental analysis is required, because the Project is consistent with, and contemplated by the Prior Environmental Approvals, and none of the events listed in Public Resources Code section 21166 have occurred. b. The Agreement is in the best interests of the citizens of the City of La Quinta. c. Authority's sale of the Property will provide housing for very low-, low-, and moderate-income persons, and is consistent with the final Five-Year Implementation Plan of the former La Quinta Redevelopment Agency (e.g., 2009/2010 – 2013/2014). d. The consideration Developer will pay for the acquisition of the Property is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the Agreement, in that the sale price for the Property is not less than the value set forth in an independent appraisal that analyzed the value of the Property with the conditions and affordability covenants required pursuant to the Regulatory Agreement, as more fully explained in the Summary Report. e. Authority’s sale of the Property will assist in the creation of an economic opportunity, in that the sale will result in the creation of affordable housing, with the substantial rehabilitation of 72 existing affordable units and the new construction of 68 new affordable units, and the need for affordable housing has been demonstrated in the Housing Element of the City’s General Plan, all as more fully explained in the Summary Report. 3. The Agreement, a copy of which is on file with the Authority Secretary, is hereby approved. The City Council consents to Authority's authorization and direction to its Executive Director and Authority counsel to make final modifications to the Agreement that are consistent with the substantive terms of the Agreement approved hereby, and to thereafter sign the Agreement on behalf of Authority. 4. The City Council consents to Authority's authorization and direction to its Executive Director to (i) sign such other and further documents, including but not limited to escrow instructions, that require Authority’s signature, and (ii) take such other and further actions, as may be necessary and proper to carry out the terms of the Agreement. 407 Resolution No. 2017- Housing and Property Disposition between Housing Authority and CV Housing Coalition Adopted: June 6, 2017 Page 4 PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of La Quinta held this 6th day of June, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ LINDA EVANS, Mayor City of La Quinta, California ATTEST: _____________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (City Seal) APPROVED AS TO FORM: ______________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 408 RESOLUTION NO. HA 2017- A RESOLUTION OF THE LA QUINTA HOUSING AUTHORITY APPROVING AN AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT BETWEEN THE HOUSING AUTHORITY AND COACHELLA VALLEY HOUSING COALITION FOR THE PROPERTY LOCATED EAST OF WASHINGTON STREET AND SOUTH OF HIDDEN RIVER ROAD WHEREAS, the La Quinta Housing Authority (“Authority”) is a public body, corporate and politic, organized and existing under the Housing Authorities Law (Health & Safety Code § 34200 et seq.) (the “HAL”); and WHEREAS, a fundamental purpose of the HAL is to expand the supply of low- and moderate-income housing (Health & Safety Code, § 33071); and WHEREAS, Authority is the successor housing entity to the former La Quinta Redevelopment Agency pursuant to Health and Safety Code section 34176(b)(2), and Authority Resolution No. 2012-002, which was adopted by Authority on January 17, 2012; and WHEREAS, Authority staff have negotiated an Affordable Housing and Property Disposition Agreement ("Agreement") with Coachella Valley Housing Coalition, a California corporation ("Developer"), pursuant to which (i) Authority would sell to Developer the existing 73-residential unit senior and disabled adult affordable housing development commonly known as Washington Street Apartments (the “Apartment Site”), and that certain vacant real property located adjacent to the Apartment Size and consisting of approximately 6.8 acres (the “Vacant Site”, and, collectively with the Apartment Site, the “Property”), and provide to Developer financial assistance (the “Authority Assistance”) in an amount up to Seventeen Million Four Hundred Twenty- Five Thousand Ten Dollars ($17,425,010); and (ii) Developer would rehabilitate 72 of the existing residential units on the Apartment Site, develop 26 new residential units on the Apartment Site, and develop 42 new residential units on the Vacant Site, with all but two of the units restricted for rental to and occupancy by persons and families of very low-, and low-income, at rent levels affordable to such persons, two management units restricted for rental to and occupancy by persons and families of moderate income, at rent levels affordable to such persons, and certain on-site private improvements and off-site public improvements necessary to serve the development (collectively, the "Project"), all as more particularly described in the Agreement; and WHEREAS, pursuant to the Agreement, as a condition to Authority's sale of the Property and provision of the Authority Assistance, Developer and Authority would record against the Property an Affordable Housing Regulatory Agreement substantially in the form attached to the Agreement (the “Regulatory Agreement”), 409 Resolution No. HA 2017- Housing and Property Disposition between Housing Authority and CV Housing Coalition Adopted: June 6, 2017 Page 2 that restricts the use of the Property, for a period of fifty-five (55) years, as a senior and disabled adult affordable rental housing project; and WHEREAS, Developer would be required to execute two notes evidencing its obligation to repay the Authority Assistance, with such repayment based on the cash flow generated from Developer’s operation of the Project; and WHEREAS, the La Quinta Planning Commission previously adopted (i) with respect to the rehabilitation of 72 of the existing residential units and development of 26 new residential units at the Apartment Site, a Negative Declaration of Environmental Impact for Tentative Parcel Map 36421, Conditional Use Permit 2011- 135, and Site Development Permit 2011-920, under Environmental Assessment 2011- 613, by adoption of Planning Commission Resolution No. 2012-003, on February 14, 2012, and (ii) with respect to the development of 42 new residential units on the Vacant Site, a Mitigated Negative Declaration of Environmental Impact under Environmental Assessment 2013-627, by adoption of Planning Commission Resolution No. 2013-008, on June 25, 2013 (collectively, the “Prior Environmental Approvals”; and WHEREAS, each of Health and Safety Code Section 33433 and Government Code 52201 require that Authority prepare a Summary Report to consider Authority's proposed financial contribution to the Project as set forth in the Agreement, that the Authority Board and the City Council conduct a noticed joint public hearing with respect to the Agreement, and that the approval of the Agreement be accompanied by certain findings and determinations as set forth herein; and WHEREAS, a Summary Report for the Agreement has been prepared and the joint public hearing has been conducted in accordance with applicable requirements of law; and WHEREAS, the City Council and the Authority Board have considered all the information and evidence set forth in the Summary Report presented by City/Authority staff and presented by persons wishing to appear and be heard concerning the impact of the Agreement on the City; and WHEREAS, the Agreement will increase, improve, and preserve affordable housing in the City of La Quinta; and WHEREAS, the Agreement and the Authority's financial contribution pursuant to the Agreement are of benefit to and in the best interests of the City of La Quinta. 410 Resolution No. HA 2017- Housing and Property Disposition between Housing Authority and CV Housing Coalition Adopted: June 6, 2017 Page 3 NOW, THEREFORE, BE IT RESOLVED by the La Quinta Housing Authority as follows: 1. That the above recitals are true and correct and incorporated herein. 2. That the Authority Board resolves as follows: a. No further environmental analysis is required, because the Project is consistent with, and contemplated by the Prior Environmental Approvals, and none of the events listed in Public Resources Code section 21166 have occurred. b. The Agreement is in the best interests of the citizens of the City of La Quinta. c. Authority's sale of the Property will provide housing for very low-, low-, and moderate-income persons, and is consistent with the final Five-Year Implementation Plan of the former La Quinta Redevelopment Agency (e.g., 2009/2010 – 2013/2014). d. The consideration Developer will pay for the acquisition of the Property is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the Agreement, in that the sale price for the Property is not less than the value set forth in an independent appraisal that analyzed the value of the Property with the conditions and affordability covenants required pursuant to the Regulatory Agreement, as more fully explained in the Summary Report. e. Authority’s sale of the Property will assist in the creation of an economic opportunity, in that the sale will result in the creation of affordable housing, with the substantial rehabilitation of 72 existing affordable units and the new construction of 68 new affordable units, and the need for affordable housing has been demonstrated in the Housing Element of the City’s General Plan, all as more fully explained in the Summary Report. 3. The Agreement, a copy of which is on file with the Authority Secretary, is hereby approved. The Authority Executive Director and Authority Counsel are hereby authorized and directed to make final modifications to the Agreement that are consistent with the substantive terms of the Agreement approved hereby, and the Authority Executive Director is authorized to thereafter sign said Agreement on behalf of the Authority. 4. The Authority Executive Director is authorized and directed, on behalf of the Authority, to (i) sign such other and further documents, including but not limited to escrow instructions, that require the Authority’s signature, and (ii) take such other and further actions, as may be necessary and proper to carry out the terms of the Agreement. 411 Resolution No. HA 2017- Housing and Property Disposition between Housing Authority and CV Housing Coalition Adopted: June 6, 2017 Page 4 PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Housing Authority held this 6th day of June, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ KATHLEEN FITZPATRICK, Chairperson La Quinta Housing Authority ATTEST: ______________________________________________ Susan Maysels, Secretary La Quinta Housing Authority (AUTHORITY SEAL) APPROVED AS TO FORM: ______________________________ WILLIAM H. IHRKE, Attorney La Quinta Housing Authority 412 1 SUMMARY REPORT Affordable Housing and Property Disposition Agreement Coachella Valley Housing Coalition and the La Quinta Housing Authority June 6, 2017 INTRODUCTION This document is the Summary Report (“Report”) for the Affordable Housing and Disposition Agreement (“Agreement”) by and between Coachella Valley Housing Coalition (“Developer”) and the La Quinta Housing Authority (“Authority”). The Agreement facilitates the transfer of Washington Street Apartments and an adjacent vacant land parcel (“Site”) to the Developer, who will then renovate, develop and operation a 138 unit senior and disabled adult complex (“Development”). The Site is located immediately adjacent to and east of Washington Street, and south of Hidden River Road. The dwellings will be affordable to extremely low-, very low-, low- and moderate-income senior and disabled adult households, with 2 remaining manager units affordable to moderate income households. This Report has been prepared pursuant to California Health and Safety Code Sections 33433 and 34176(b)(2), Government Code Section 52201, and presents the following:  A summary of the proposed Development.  The cost of the Agreement to the Authority.  The estimated value of the interest to be conveyed, determined at the highest and best uses permitted.  An explanation of why the sale of the property pursuant to the Agreement will assist in the elimination of blight and creation of an economic opportunity. THE DEVELOPMENT City and Former Redevelopment Agency (Agency); Authority as Housing Successor The State of California mandates the City of La Quinta (“City”), and previously mandated the Agency, to continually seek opportunities to increase and improve the supply of housing affordable to very low-, low- and moderate-income households. State planning laws mandate that the City pursue a housing mix that accommodates both local and regional housing demand for affordable dwellings. The Community Redevelopment Law (Health and Safety Code section 33000 et. seq.) (“CRL”) required that the Agency insure that a minimum of 15% of all new and substantially rehabilitated dwellings within its redevelopment project areas are affordable to very ATTACHMENT 1 413 2 low-, low- and moderate-income households, and of these, 40% must be affordable to very low-income households. If these dwellings are owner occupied, they must be affordable for 45 years; if they are rental units, they must remain affordable for 55 years. Pursuant to Health and Safety Code section 34176(b)(2), added by Part 1.85 of Division 24, and La Quinta Housing Authority (“Authority”) Resolution No. 2012-02, Authority elected to be the “housing successor” to the Agency, enabling Authority to retain the housing assets and functions previously performed by the Agency, and allowing the Authority to enforce affordability covenants and related activities pursuant to applicable provision of the CRL. The Site The Site is directly adjacent to and east of Washington Street and south of Hidden River Road. It consists of the existing 73-unit Washington Street Apartments (“Apartments”) and a 6.8-acre vacant land parcel immediately adjacent to the south. The Apartment site is 4.79 acres and was developed in 1980, with nine, single story, steel and wood framed apartment buildings, and a single story community building with an attached manager unit. The Agency purchased the properties in 2007 and 2008, respectively, to preserve and develop affordable housing. The Apartments are a United States Department of Agriculture (USDA) Rural Development (RD) development, wherein the USDA provides rent subsidies to 72 senior and disabled adult households. The City’s General Plan designates the Site as Medium/High Density Residential. The underlying zoning designation identified is High Density Residential. Project Description When the Agency purchased the Apartments in 2008, the USDA imposed conditions that required the Agency to substantially rehabilitate and modernize the Apartments. The Agency proceeded with site planning, engineering and design efforts, and secured environmental clearance and entitlements (SDP 2015-003 and SDP 2016-0002) to substantially rehabilitate 72 Apartments and develop 68 new apartments. Located on approximately 11.5 acres, the development program will include the substantial rehabilitation of 72 existing units, and development of 68 new units, 2 new community buildings, laundry facilities, a health center, and 2 swimming pools. The buildings will be wood frame with color stucco walls and low sloping roofs on concrete slab foundations. Formal outdoor recreation areas will include roughly 2 acres of parkway/green belt, a dog park, 2 swimming pools; a new sound wall along Washington Street will also be constructed. The Agency began working on the Development in 2008. However, in 2011 the Development was suspended when the California Legislature dissolved all redevelopment agencys, including the Agency. Prior to the dissolution, the City established the Authority; in 2012, all of the Agency’s real property assets and housing bond proceeds were transferred to the Authority. In September 2015 Senate Bill 107 414 3 was approved enabling the Authority’s use of 2014 and 2016 housing bonds for this Project. These funds, when combined with 9% tax credit equity that the Developer will secure, are sufficient to construct the Development. Affordable Housing Mix The Developer will be using 9% tax credit financing to fund a portion of the design and construction costs. In order to qualify for this financing, 138 dwellings will be affordable to extremely low, very low- and low-income households; the remaining 2 dwellings (the on-site manager units) will be affordable to moderate-income households. The dwellings will remain affordable to said households for a minimum of 55 years; 24 units to extremely low-income senior and disabled adult households, 110 units to very low-income senior and disabled adult households, 4 units to low-income senior and disabled adult households, and 2 manager units, affordable to moderate-income family households. As of the date of this Summary Report extremely low income is defined as households earning less than or equal to $14,100 (one person) or $16,100 (two person); very low- income is defined as households who earn $23,450 (one person) to $26,800 (two person); low-income is defined as households who earn $37,550 (one person) to $42,900 (two person); and moderate-income is defined as households who earn $54,600 (one person) to $78,000 (four person). THE COST OF THE AGREEMENT TO THE AUTHORITY The cost of the Agreement will be $30,962,918; $21,545,793 in direct costs and $9,417,123 in bond interest expenses. The table below itemizes these costs. 415 4 The Authority will transfer Site to the Developer and will fund $9,400,000 of development costs with 2016 Bond Proceeds; the land and the $9,400,000 would be secured by a deed of trust that will accrue interest at 0%. There will be a second deed of trust (“Plan Loan”) that will secure the $1,366,722 the Authority invested for site plans, construction plans, and the future tenant temporary relocation expenses, and $1,000,000 of 2014 housing bond proceeds. This second deed of trust in the amount of $2,366,722 will accrue interest at applicable federal rate (approximately 2.7%). The $10,400,000 of Housing Bond proceeds would be disbursed, as work is completed and consistent with the development budget (attached to the Agreement). Per the Agreement, the Developer will repay the Authority loans from residual receipt income, with the Authority receiving 50% of the residual receipt payments (revenue that remains after operating costs and debt service payments on the USDA loan). Following industry standards for 9% tax credit transactions, the Authority has agreed to an allocation of the residual receipt income of 50% to the Authority and 50% to the Developer. The total residual receipt income is projected to be $376,548 after year 5 of operation, $649,613 after year 10 of operation, and $767,503 after year 15 of operation; the Authority would receive 50% of this income. Property Acquisition The Agency purchased the 6.8-acre vacant land parcel in 2007 for $4,608,962 or $15.56 per square foot of land area. In 2008 the Agency finalized the purchase of Washington Street Apartments for a total cost of $6,507,529. After the Agency assumed the existing loans the net cash investment was $4,174,777. Project Area No. 2 Low- and Moderate-Income Housing Fund revenue was used to fund acquisition costs for both properties. Planning, Design, Engineering and Relocation Costs The Authority contracted for the planning, design, engineering, and relocation services. The planning, design, engineering contracts will be assigned to the Developer 416 5 when the Agreement is executed; the Authority will be responsible to manage the temporary tenant relocation. The relocation costs are projected to be $375,000, which will be charged back and paid by the Developer. The total of these costs is $1,366,722 and is a portion of the Plan Loan. Development Costs The Developer projects final design and construction costs, including land, of $46,907,072. The sources of funds are as follows: Note that minor variances in the amounts listed above will occur depending on actual reserve balances, loan balances, and yield on tax credit equity at the time of closing. Under the Agreement, the total funding commitment of Authority , including land, structures, reserve accounts and work completed, as identified above, is not subject to change. However the amount of 2016 bond proceeds may increase or decrease depending on exact loan and account balances at the date of closing for the Apartments. Source and Cost of Authority Funds The Authority’s expenditure of 2014 and 2016 housing bond proceeds in the combined amount of $12,762,057 carries interest expense over the term of the bonds of approximately $9,417,123. The Agency purchased the Site in 2007 and 2008 with $8,783,738 of Project Area No. 2 Low- and Moderate-Income Housing Fund revenue. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED Two appraisals from Froboese Realty Group, Inc. identified value opinions, as of May 5, 2017 and May 10, 2017, respectively. The un-restricted (market rents) value opinion of the existing apartments is $5,500,000 and $1,260,000 for the vacant land. 417 6 ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED, DETERMINED AT THE USE AND WITH THE CONDITIONS, COVENANTS AND DEVELOPMENT COSTS REQUIRED BY THE AGREEMENT An appraisal from Froboese Realty Group, Inc. identified a prospective market value opinion of the Apartments after improvements calculating the value with conditions and affordability covenants pursuant to the agreement to be $1,950,000 at project completion. This is 35% of the $5,500,000 un-restricted value that is being used to calculate the Authority loan amounts. The Authority will have two separate loans with the Developer. A Plan Loan in the amount of $2,366,722 with interest accruing at applicable federal rate (AFR) or roughly 2.7%, and a second loan representing the value of land and structures combined with 2016 bond proceeds for construction costs in the amount of $15,058,288 at 0%. Payments for both of these loans will be generated from 50% of the residual receipt income payable annually and be due in full at the end of the 55 year term. EXPLANATION OF WHY THE SALE OF THE PROPERTY PURSUANT TO THE AGREEMENT WILL ASSIST IN THE ELIMINATION OF BLIGHT AND CREATION OF AN ECONOMIC OPPORTUNITY The conveyance of the existing apartments and adjacent vacant land parcel and construction of the development will create an economic opportunity, in that the sale will result in the creation of affordable housing, with the substantial rehabilitation of 72 existing affordable units and the new construction of 68 new affordable units, and the need for affordable housing has been demonstrated in the Housing Element of the City’s General Plan. The new units provide the essential need for additional public facilities, employment opportunities, and commercial support within the city. The sale of the property to a non-profit organization allows an organization to qualify for grants and programs that a public agency would not be allowed to apply for to help maintain and provide services to seniors and adults with disabilities. Furthermore, under the CRL, a fundamental purpose of redevelopment was, and through the Authority’s continuing obligations is, to expand the supply of low- and moderate- income housing, to expand employment opportunities for jobless, underemployed, and low-income persons, and to provide an environment for the social, economic, and psychological growth and well-being of all citizens. The Agreement will be the subject of a joint public hearing of the Authority and City Council on June 6, 2017, at 5:00 PM or thereafter in the City Council Chambers of the City of La Quinta located at 78-495 Calle Tampico, La Quinta, California. 418 882/015610-0040 9930825.4 a06/01/17 AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT By and Between LA QUINTA HOUSING AUTHORITY and COACHELLA VALLEY HOUSING COALITION Dated as of _________________ 2017 ATTACHMENT 2 419 882/015610-0040 9930825.4 a06/01/17 -2- AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT THIS AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT (the “Agreement”) is made and entered into as of _______________, 2017 (the “Effective Date”), by and between the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (the “Authority”), and COACHELLA VALLEY HOUSING COALITION, a California nonprofit public benefit corporation (the “Developer”), with reference to the following: RECITALS A. Authority is the owner in fee of that certain real property (the “WSA Real Property”) located at 42-800 Washington Street, in the City of La Quinta, County of Riverside, State of California, more particularly described in Attachment No. 1A, which WSA Real Property is improved with an apartment complex commonly known as the Washington Street Apartments consisting of seventy-three (73) apartment units (the “Existing WSA Units”). The WSA Real Property comprises approximately four and seven tenths (4.7) acres. B. Authority is also the owner in fee of that certain real property (the “Unimproved Real Property”) located adjacent to the WSA Real Property, in the City of La Quinta, County of Riverside, State of California, more particularly described in Attachment No.1B. The Unimproved Real Property is unimproved, and comprises approximately five and seven tenths (5.7) acres. C. Developer is an experienced developer and operator of multifamily rental affordable Projects in California. D. Authority was established to increase, improve, and preserve the City of La Quinta’s supply of low and moderate income housing. Pursuant to Health and Safety Code section 34176(b) and Resolution No. 12-11, adopted by the City Council of the City of La Quinta (“City”) on January 10, 2012, the Authority is the housing successor entity to the former La Quinta Redevelopment Agency (the “Agency”). Pursuant to said resolution, all housing assets and functions of the Agency were transferred to Authority on February 1, 2012. E. Authority has processed through the City and obtained approval from the City of all land use entitlements, plans, and construction drawings necessary to provide for the following: (i) on the WSA Real Property, the rehabilitation of seventy-two (72) of the Existing WSA Units, demolition of one (1) of the Existing WSA Units, and construction of twenty-six (26) new apartment units, a new community building, and related amenities and site improvements; and (ii) on the Unimproved Real Property, the construction of forty-two (42) new apartment units, a new community building, and related amenities and site improvements. F. The purpose of this Agreement is to set forth the terms and conditions pursuant to which (i) Authority will sell the “Property” (as defined below) to Developer, 420 882/015610-0040 9930825.4 a06/01/17 -3- (ii) Developer will perform the rehabilitation and construction activities described in Recital E above and thereafter operate all but two (2) of the new and rehabilitated apartment units (which two (2) units shall be managers’ units) as a cohesive and comprehensive senior affordable rental housing development with long-term affordability restrictions; and (iii) Authority will provide one or more loans to Developer to assist Developer with the costs Developer incurs to acquire the Property and perform the foregoing rehabilitation and construction activities. G. Authority’s sale of the Property to Developer and provision of financial assistance to Developer, and Developer’s rehabilitation, development, and operation on the Property of an affordable rental housing development pursuant to the terms of this Agreement, are in furtherance of Authority’s goals to provide affordable housing and to preserve existing affordable housing units in the City of La Quinta, and in furtherance of Developer’s purpose to develop, operate, and manage affordable housing for low income households. NOW, THEREFORE, for and in consideration of the foregoing Recitals, which are incorporated herein by this reference, and the mutual promises, covenants, and conditions herein contained, Authority and Developer hereto agree as follows: 1. DEFINITIONS As used in this Agreement, capitalized terms are defined where first used or as set forth in this Section 1. Capitalized terms used in an attachment attached hereto and not defined therein shall also have the meanings set forth in this Section 1. “Affiliate” means any person or entity directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with Developer which, if Developer is a partnership or limited liability company, shall include each of the constituent members or partners, respectively thereof. The term “control” as used in the immediately preceding sentence, means, with respect to a person that is a corporation, the right to the exercise, directly or indirectly, of more than fifty percent (50%) of the voting rights attributable to the shares of the controlled corporation, and, with respect to a person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled person. “Agency” has the meaning set forth in Recital D of this Agreement. “Assignment of Contracts” means an assignment of contracts, permits, intangible property, warranties and guaranties substantially in the form attached hereto and incorporated herein as Attachment No. 9, to be executed by Authority for purposes of transferring and assigning to Developer certain contracts and other documents and rights held by Authority, including, without limitation, the WSA Contracts. “Assignment of Leases” means an assignment substantially in the form attached hereto and incorporated herein as Attachment No.7, to be executed by 421 882/015610-0040 9930825.4 a06/01/17 -4- Authority for purposes of transferring and assigning to Developer the WSA Tenant Leases. “Authority” means the La Quinta Housing Authority, a nonprofit public benefit corporation. “Authority Deed of Trust (Plans)” means a deed of trust substantially in the form attached hereto and incorporated herein as Attachment No.15A, to be executed by Developer pursuant to Section 5.2(a) in order to secure repayment of the Authority Note (Plans). “Authority Deed of Trust (Property and Construction)” means a deed of trust substantially in the form attached hereto and incorporated herein as Attachment No.15B, to be executed by Developer pursuant to Section 5.2(a) in order to secure repayment of the Authority Note (Property and Construction). “Authority Loan (Plans)” has the meaning set forth in Section 5.2(a) of this Agreement. “Authority Loan (Property and Construction)” has the meaning set forth in Section 5.2(a) of this Agreement. “Authority Loans” means the Authority Loan (Plans) and the Authority Loan (Property and Construction). “Authority Note (Plans)” means a promissory note substantially in the form attached hereto and incorporated herein as Attachment No.14A, to be executed by Developer in favor of Authority to evidence the obligation of Developer to repay the Authority Loan (Plans). “Authority Note (Property and Construction)” means a promissory note substantially in the form attached hereto and incorporated herein as Attachment No.14B, to be executed by Developer in favor of Authority to evidence the obligation of Developer to repay the Authority Loan (Property and Construction). “Authority Regulatory Agreement” means a regulatory agreement substantially in the form attached hereto and incorporated herein as Attachment No.17, which will establish certain restrictive covenants against the Property. “Authority Title Policy” has the meaning set forth in Section 6.2(o) of this Agreement. “Building Permit” means all permits issued by City and required for commencement of construction of the Project. “City” means the City of La Quinta, California. 422 882/015610-0040 9930825.4 a06/01/17 -5- “Close of Escrow” and/or the “Closing” shall mean the consummation of the transactions contemplated by this Agreement to occur through the Escrow including the conveyance of fee title to the Property from Authority to Developer. “Closing Date” shall mean the date that the Grant Deed is recorded in the Official Records of Riverside County, which shall occur, if at all, no later than the Outside Closing Date. “Construction Contract” has the meaning set forth in Section 6.2(f) of this Agreement. “Construction Lender” means the lender that provides construction financing for the Project. The Construction Lender may or may not also be the Take-Out Lender, if any. The Construction Lender shall be an Institutional Lender. “Construction Loan” means the construction loan for the Project, in the anticipated amount of [Twenty-Six Million Five Hundred Forty Thousand Four Hundred Twenty-Nine Dollars ($26,540,429)], which is secured by the Construction Loan Security Documents. “Construction Loan Security Documents” means the documents and instruments required by the Construction Lender to secure the Construction Loan. “County” means the County of Riverside, California. “Conversion Date” has the meaning set forth in the Construction Loan Security Documents, or, if such term is not defined therein, means the date the Construction Loan converts from a construction loan to a permanent loan. “Design and Engineering Agreements” means all agreements with design and engineering professionals for preparation of the plans, drawings and specifications upon which the Building Permit will be issued. “Developer” means Coachella Valley Housing Coalition, a California nonprofit public benefit corporation. “Developer Title Policy” has the meaning set forth in Section 6.3(j) of this Agreement. “Disbursement Request” has the meaning set forth in Section 5.2(b) of this Agreement. “Escrow” means the escrow to be opened with Escrow Holder for the conveyance of the Property by City to Developer. “Escrow Holder” means Lawyers’ Title Insurance Company, with its offices located at 888 S. Figueroa Street, Suite 2100, Los Angeles, California 90017, or such other escrow company as may be agreed to by Developer and the Executive Director. 423 882/015610-0040 9930825.4 a06/01/17 -6- “Event of Default” has the meaning set forth in Section 12.1 of this Agreement. “Executive Director” means the person duly appointed to the position of Executive Director of Authority, or his or her designee. The Executive Director shall represent Authority in all matters pertaining to this Agreement. Whenever a reference is made herein to an action or approval to be undertaken by Authority, the Executive Director is authorized to act unless this Agreement specifically provides otherwise or the context should otherwise require. “Existing Indebtedness” means the outstanding indebtedness represented by (i) the USDA Note, and (ii) the Provident Note. “Existing Loan Documents” means the USDA Note, the USDA 2nd Deed of Trust, the Provident Note, the Provident Deed of Trust, and all other documents creating, evidencing, securing or otherwise relating to the Existing Indebtedness and all amendments, modifications, renewals and extensions thereof. “Existing WSA Tenants” means the residential tenants residing in the Existing WSA Units as of the Effective Date. “Existing WSA Units” has the meaning set forth in Recital A of this Agreement. “Final Construction Documents” means the plans, drawings and specifications prepared pursuant to the Design and Engineering Agreements, upon which the Building Permit will be issued. “First Round” means the first round for allocations of 9% Tax Credits following the Effective Date. “Frank R. Goodman” means Frank R. Goodman and Associates, a California limited partnership. “General Contractor” has the meaning set forth in Section 6.2(e) of this Agreement. “Governmental Requirements” means all laws, ordinances, statutes, codes, rules, regulations, orders and decrees, of the United States, the State of California, the County of Riverside, the City and of any other political subdivision, agency or instrumentality exercising jurisdiction over Authority, Developer, the Property, and/or the Project. “Grant Deed” means a grant deed substantially in the form attached hereto and incorporated herein as Attachment No.5, pursuant to which Authority will transfer fee title to the Property to Developer. “Hazardous Materials” means any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance 424 882/015610-0040 9930825.4 a06/01/17 -7- which is (i) defined as a “hazardous waste”, “acutely hazardous waste”, “extremely hazardous waste”, or “restricted hazardous waste” under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a “hazardous material”, “hazardous substance”, or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as “hazardous” or “extremely hazardous” pursuant to Article 11 of Title 22 of the California Code of Regulations, Chapter 20, (ix) designated as “hazardous substances” pursuant to Section 311 of the Clean Water Act (33 U.S.C. Section 1317), (x) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq. (42 U.S.C. Section 6903), (xi) defined as “hazardous substances” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. Section 9601 et seq., (xii) methyl-tertiary butyl ether, (xiii) perchlorate or (xiv) any other substance, whether in the form of a solid, liquid, gas or any other form whatsoever, which by any governmental requirements either requires special handling in its use, transportation, generation, collection, storage, handling, treatment or disposal, or is defined as “hazardous” or harmful to the environment. For purposes hereof, “Hazardous Materials” excludes materials and substances in quantities as are commonly used in the construction and operation of an apartment complex, provided that such materials and substances are used in accordance with all applicable laws. “HUD” means the United States Department of Housing and Urban Development. “Indemnitees” means Authority, City, and their respective directors, officers, officials, members, employees, representatives, agents and volunteers. “Institutional Lender” means any of the following institutions having assets or deposits in the aggregate of not less than One Hundred Million Dollars ($100,000,000): a California chartered bank; a bank created and operated under and pursuant to the laws of the United States of America; an “incorporated admitted insurer” (as that term is used in Section 1100.1 of the California Insurance Code); a “foreign (other state) bank” (as that term is defined in Section 1700(1) of the California Financial Code); a federal savings and loan association (Cal. Fin. Code Section 8600); a commercial finance lender (within the meaning of Sections 2600 et seq. of the California Financial Code); a “foreign (other nation) bank” provided it is licensed to maintain an office in California, is licensed or otherwise authorized by another state to maintain an agency or branch office in that state, or maintains a federal agency or federal branch in any state (Section 1716 of the California Financial Code); a bank holding company or a subsidiary of a bank holding company which is not a bank (Section 3707 of the California Financial 425 882/015610-0040 9930825.4 a06/01/17 -8- Code); a trust company, savings and loan association, insurance company, investment banker; college or university; pension or retirement fund or system, either governmental or private, or any pension or retirement fund or system of which any of the foregoing shall be trustee, provided the same be organized under the laws of the United States or of any state thereof; and a Real Estate Investment Trust, as defined in Section 856 of the Internal Revenue Code of 1986, as amended, provided such trust is listed on either the American Stock Exchange or the New York Stock Exchange. ______________ is hereby deemed to be an Institutional Lender. “Investor” means the investor limited partner of the Partnership. “Lead-Based Paint Disclosure and Acknowledgment” means a disclosure and acknowledgment substantially in the form attached hereto and incorporated herein as Attachment No. 12. “Non-Foreign Affidavit” means an affidavit substantially in the form attached hereto and incorporated herein as Attachment No.8. “Notice of Affordability” means a Notice of Affordability Restrictions on Transfer of Property substantially in the form attached hereto and incorporated herein as Attachment No. 18, to be executed by Authority and Developer and recorded in the Official Records to notify members of the public regarding the affordability restrictions for the Property. “Notices” has the meaning set forth in Section 13 of this Agreement. “Notice to Tenants” means a notice substantially in the form attached hereto and incorporated herein as Attachment No.11, advising the Existing WSA Tenants of the transfer of title and assumption by Developer of the landlord’s obligations under the WSA Tenant Leases. “Official Records” means the Official Records of the County. “Outside Closing Date” means (i) the date that is six (6) months after the date TCAC awards allocations of Tax Credits for the First Round if Developer obtains an allocation of Tax Credits in the First Round, (ii) the date that is six (6) months after the date TCAC awards allocations of Tax Credits for the Second Round if, despite Developer’s timely submittal of a complete application in the First Round, Developer does not obtain an allocation of Tax Credits in the First Round and submits an application for the Second Round, or (iii) the date that is six (6) months after the date TCAC awards allocations of Tax Credits for the Third Round if, despite Developer’s timely submittal of a complete application in the Second Round, Developer does not obtain an allocation of Tax Credits in the Second Round and submits an application for the Third Round. “Partnership” has the meaning set forth in Section 14.1 of this Agreement. 426 882/015610-0040 9930825.4 a06/01/17 -9- “Partnership Agreement” means the agreement that sets forth the terms of the Partnership. “Permitted Encumbrances” means the Construction Loan Security Documents and such other exceptions to title approved by the Executive Director. “Phase 1” means that certain Report of Phase I Environmental Site Assessment prepared for the Agency on the WSA Property by Earth Systems Southwest dated October 6, 2006. “Project” means, (i) with respect to the WSA Real Property, Developer’s (a) rehabilitation of seventy-two (72) of the apartment units thereon, (b) demolition of one (1) of the apartment units thereon, and construction thereon of twenty-six (26) new apartment units, a new community building, and related amenities and site improvements, and (c) relocation of the Existing WSA Tenants; (ii) with respect to the Unimproved Real Property, Developer’s construction thereon of forty-two (42) new apartment units, a new community building, and related amenities and site improvements; and (iii) with respect to the Property, Developer’s construction of all required on-site improvements necessary to serve the apartment units in accordance with this Agreement, including, without limitation, in accordance with the Scope of Development and the Final Construction Documents. “Project Budget” mean that certain budget attached hereto and incorporated herein as Attachment No.16. “Project Costs” means all costs of any nature incurred in connection with the construction of the Project. “Project Documents” means, collectively, this Agreement, the Authority Note (Plans), the Authority Note (Property and Construction), the Authority Deed of Trust (Plans), the Authority Deed of Trust (Property and Construction), the Authority Regulatory Agreement, the Notice of Affordability, and any other agreement, document or instrument that Developer and Authority enter into pursuant to this Agreement or in order to effectuate the purposes of this Agreement. “Project Financing” has the meaning set forth in Section 5.1 of this Agreement. “Property” means the WSA Property and Unimproved Property. “Provident 1st Deed of Trust” means that certain Deed of Trust dated July 19, 2001, executed by Frank R. Goodman, as Trustor, in favor of Provident Savings Bank, as beneficiary, recorded August 3, 2001, as Instrument No. 3387200, in the Official Records. The Provident 1st Deed of Trust was assumed by the Agency pursuant to that certain Loan Assumption Agreement dated October 28, 2008, and recorded in the Official Records on October 31, 2008, as Instrument No. 2008-0582812. The USDA has subordinated the USDA 2nd Deed of Trust to the Provident 1st Deed of Trust. 427 882/015610-0040 9930825.4 a06/01/17 -10- “Provident Note” means that certain Promissory Note Secured by Deed of Trust dated July 19, 2001, executed by Frank R. Goodman, as maker, in favor of Provident Savings Bank, a mutual savings bank chartered under the laws of the United States of America, as holder, in the original principal amount of ONE MILLION SIX HUNDRED NINETY-SIX THOUSAND DOLLARS ($1,696,000). The Provident Note is secured by the Provident 1st Deed of Trust. The Provident Note was assumed by the Agency pursuant to that certain Loan Assumption Agreement dated October 28, 2008, and recorded in the Official Records on October 31, 2008, as Instrument No. 2008-0582812. The amount currently outstanding under the Provident Note is approximately ONE MILLION TWO HUNDRED EIGHTY-FOUR THOUSAND FIFTY-THREE DOLLARS ($1,284,053). “Release of Construction Covenants” means a release document substantially in the form attached hereto and incorporated herein as Attachment No. 19, to be executed by Authority and recorded in the Official Records upon Developer’s completion of the Project, as described in Section 9.15. “Relocation Laws and Regulations” the California Relocation Assistance Act of 1970 (California Government Code § 7260 et seq.) and its implementing regulations (25 Cal. Code Regs. § 6000, et seq.), and the United States Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. § 4601, et seq.), and its implementing regulations promulgated by the United States Department of Transportation (49 C.F.R. § 24.1, et seq.). “Relocation Plan” means that certain Washington Street Apartments Relocation Plan prepared by Authority, approved by Authority on about the Effective Date. “Request for Notice” has the meaning set forth in Section 6.2(l) of this Agreement “Schedule of Performance” means the Schedule of Performance attached hereto and incorporated herein as Attachment No. 3. “Scope of Development” means the Scope of Development attached hereto and incorporated herein as Attachment No. 4. “Second Round” means the second round for allocations of 9% Tax Credits following the Effective Date. “Sources and Uses of Funds Statement” means the Sources and Uses of Funds statement attached to the Project Budget. “Site Plan” means the site plan attached hereto and incorporated herein as Attachment No.2. “Take-Out Lender” means the lending institution that makes the Take-Out Loan, if any. The Take-Out Lender may or may not also be the Construction Lender. The Take-Out Lender shall be an Institutional Lender. 428 882/015610-0040 9930825.4 a06/01/17 -11- “Take-Out Loan” means the long-term loan, if any, made by the Take-Out Lender to Developer in order to take out the Construction Loan. “Tax Credits” has the meaning set forth in Section 5.1(b) of this Agreement. “Tax Credit Funds” has the meaning set forth in Section 6.2(c) of this Agreement. “Tax Credit Program” means the low-income housing tax credit program authorized pursuant to Internal Revenue Code Section 42, California Health and Safety Code Sections 50199.6-50199.19, Revenue and Taxation Code Sections 17057.5, 17058, 23610.4, 23610.5, and applicable federal and State regulations such as 4 California Code of Regulations Sections 10300-10340. “TCAC” means the California Tax Credit Allocation Committee. “Third Round” means the third round for allocations of 9% Tax Credits following the Effective Date. “Title Company” means Lawyers’ Title Insurance Company, with its offices located at 888 S. Figueroa Street, Suite 2100, Los Angeles, California 90017, or such other title insurance company as may be agreed to by Developer and the Executive Director. “Unimproved Property” means Authority’s fee estate in and to the Unimproved Real Property, including all right, title and interest of Authority in and to any land lying in the bed of any existing or proposed highway, street, road, avenue or alley abutting or adjoining the Unimproved Real Property and all right, title and interests of Authority in and to any strips or gores of land adjoining the Unimproved Real Property, including the right to any unpaid award for damage by reason of any condemnation proceedings or change of grade of any highway, street, road or avenue, and all tenements, hereditaments and appurtenances thereto. “USDA” means the United States of America, acting through the Farmer’s Home Administration, United States Department of Agriculture. “USDA 2nd Deed of Trust” means that certain Real Estate Deed of Trust for California with Assignment of Rents, dated November 18, 1980, executed by Frank R. Goodman, as trustor, in favor of USDA, as beneficiary, recorded November 21, 1980, as Instrument No. 218151, in the Official Records. The USDA 2nd Deed of Trust was assumed by the Agency pursuant to that certain Multifamily Housing Assumption Agreement dated October 14, 2008. “USDA Note” means that certain Promissory Note dated December 18, 1980, executed by Frank R. Goodman, as maker, in favor of the USDA, as holder, in the original principal amount of ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000). The USDA Note is secured by the USDA 2nd Deed of Trust. The USDA Note was assumed by the Agency pursuant to that certain Multifamily Housing 429 882/015610-0040 9930825.4 a06/01/17 -12- Assumption Agreement dated October 14, 2008 and recorded in the Official Records on ________, as Instrument No. __________________. The amount currently outstanding under the USDA Note is approximately SIX HUNDRED FORTY THOUSAND DOLLARS ($640,000). “WSA Bill of Sale” means a bill of sale substantially in the form attached hereto and incorporated herein as Attachment No. 6, pursuant to which Authority will convey the WSA Personal Property to Developer. “WSA Contracts” means (i) all labor, service, supply, property management, insurance, brokerage leasing and maintenance contracts relating to the WSA Improvements or the WSA Real Property, and (ii) the Design and Engineering Agreements, all of which are to be assumed by Developer pursuant to Section 4.2(a) below. The WSA Contracts are listed in Attachment No.9 “WSA Improvements” means any improvements and appurtenances located on the WSA Real Property that are owned by Authority, including, as applicable, the buildings, parking areas, improvements and fixtures, roads, streets, parking areas, curbs, sidewalks, landscaping, recreation facilities, sewers and other utilities now or hereafter located on the Property. “WSA Intangible Personal Property” means all signs, logos, trade names, trademarks or styles relating to the WSA Real Property owned by Authority (specifically including the name “Washington Street Apartments”) and all other intangible property owned or hereafter to be acquired by Authority in connection with the WSA Real Property, WSA Improvements and WSA Personal Property including, but not limited to, licenses, use, occupancy and operating permits, brochures, manuals, lists of prospective tenants, advertising materials and assignable telephone numbers), warranties and guaranties in effect, all plans, specifications, including, without limitation, all working drawings and “as-built” drawings, approvals, reports and studies. “WSA Personal Property” means all furniture, personal property, machinery, apparatus and equipment owned by Authority and currently used in the operation, repair and maintenance of the WSA Improvements. The WSA Personal Property to be conveyed are listed in the inventory attached as Attachment No. 9. “WSA Property” means (i) Authority’s fee estate in and to the WSA Real Property together with the WSA Improvements, including all right, title and interest of Authority in and to any land lying in the bed of any existing or proposed highway, street, road, avenue or alley abutting or adjoining the WSA Real Property, all right, title and interests of Authority in and to any strips or gores of land adjoining the WSA Real Property, including the right to any unpaid award for damage by reason of any condemnation proceedings or change of grade of any highway, street, road or avenue, and all tenements, hereditaments and appurtenances thereto, (ii) the WSA Improvements, (iii) the WSA Personal Property, (iv) the WSA Intangible Personal Property, (v) the WSA Contracts, and (vi) the WSA Tenant Leases. 430 882/015610-0040 9930825.4 a06/01/17 -13- “WSA Rent Roll” means a rent roll of the WSA Property, identifying and listing in detail by tenant or vacant area, as applicable, (i) tenant name, square footage, monthly rent, deposits, all concessions (financial and other), lease term, defaults (financial or otherwise), and lease obligations of Authority, if any; and (ii) to the extent Authority is not legally prohibited from providing, all legal matters relating to the WSA Tenant Leases. The WSA Rent Roll shall be in one or more reports in the form customarily used by Authority; provided such reports contain all of the information described above. During the pendency of Escrow, Authority shall provide Developer an updated Rent Roll on or before the fifteenth (15th) day of each month. “WSA Tenant Leases” means all leases of the WSA Real Property or the WSA Improvements disclosed in the WSA Rent Roll, and all lease deposits, prepaid rentals and whatever rights of any kind or nature related thereto. 2. PARTIES 2.1 Authority. Authority is a public body, corporate and politic. Authority’s principal office and mailing address is 78-495 Calle Tampico, La Quinta, CA 92253. Authority was activated to help the City ensure that its residents are able to secure decent and affordable housing. 2.2 Developer. Developer is Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, and any successor to its rights, powers, and responsibilities, and any assignee of Developer’s rights and obligations hereunder, permitted in accordance with this Agreement. Developer’s principal offices are located at 45701 Monroe Street, Suite G, Indio, California, 92201. 3. SCHEDULE OF PERFORMANCE The Schedule of Performance sets forth the times by which the parties are required to perform certain obligations set forth in this Agreement. 4. DUE DILIGENCE PERIOD; INSPECTIONS AND REVIEW PERMISSION TO ENTER PROPERTY; AS-IS; PHYSICAL AND ENVIRONMENTAL CONDITION 4.1 Due Diligence Items Already Provided. Prior to the execution of this Agreement, Authority has provided to Developer copies or originals of the following documents and items: (a) Copies of the operating, income, expense and capital expenditure records for the Property for calendar years 2015-2016, and the latest available for calendar year 2017, including statements of current working capital accounts and capital reserve (i.e., capital replacement reserve accounts). (b) A schedule of rental rates and occupancy percentages by year covering the calendar years 2015 to date. 431 882/015610-0040 9930825.4 a06/01/17 -14- (c) A copy of real property tax and assessment bills for the Property for the 2015-2016 and 2016-2017 fiscal years. (d) Copies of the Existing Loan Documents. (e) A copy of the Phase 1. 4.2 Due Diligence Items to be Provided. Within five (5) business days after the execution of this Agreement, Authority shall deliver copies or originals of the following documents and items (collectively with the documents and items provided pursuant to Section 4.1, the “Due Diligence Items”) to Developer: (a) All WSA Contracts, and any and all amendments thereto, provided that such WSA Contracts shall affect the Property following the Close of Escrow, and all WSA Tenant Leases, and any and all amendments thereto, provided that such WSA Tenant Leases shall affect the Property following the Close of Escrow. Developer shall, not later than the later of (i) ninety (90) days after full and complete delivery of all of the WSA Contracts and WSA Tenant Leases to Developer, or (ii) thirty (30) days prior to the Close of Escrow, advise Authority in writing of the WSA Contracts and WSA Tenant Leases which Developer elects to assume. (b) All certificates of occupancy, licenses, and permits pertaining to the Property in the possession of Authority or Authority’s agents or representatives. (c) Authority’s standard form of lease (“Form Lease”) used for the Property. (d) A current Rent Roll. (e) Copies of all asbestos, lead-based paint, soils, seismic, geologic, drainage, toxic waste, engineering, environmental and similar type reports and surveys (including, but not limited to, the Phase I, ALTA surveys, building grading plans, drawings (including “as-built” plans and specifications), schematics, blueprints and working drawings for the Property or any major capital improvements thereto, zoning ordinances, conditional use permits and correspondence relating thereto, business licenses, and CC&Rs within Authority’s possession. (f) Notices of violations, including, but not limited to, zoning ordinances, building codes, fire codes, CC&Rs or other agreements affecting the Property to the extent in the possession and control of Authority. (g) Disclosure of any legal matters affecting the Property or the collection of rents or deposits to the extent in the possession and control of Authority. (h) An aging of accounts receivable and current staffing schedules. 432 882/015610-0040 9930825.4 a06/01/17 -15- (i) A Lead-Based Paint Disclosure and Acknowledgement. (j) Copies of all current insurance policies and premiums, and the same covering for the preceding two (2) calendar years. (k) To the extent Authority can reasonably obtain Estoppel certificates from each Tenant certifying to the monthly amount of rent paid by such Tenant to Authority the “Estoppel Certificates”), to be provided to Developer within thirty (30) days after the execution of this Agreement. (l) The Relocation Plan. (m) Existing balances (including principal, accrued, outstanding interest, and any other amounts outstanding) on the USDA Note and Provident Note. 4.3 Environmental/Physical Property Condition Due Diligence. For a period of ninety (90) days, which may be extended by Developer for an additional period of thirty (30) days if Developer determines that a “Phase II” environmental assessment is necessary, after the opening of the Escrow (the “Environmental/Physical Property Condition Due Diligence Period”), Developer shall have the right to examine, inspect and investigate the Property and, at Developer’s sole and absolute discretion, to determine whether the physical and environmental condition of the Property is acceptable to Developer. Authority shall permit Developer, its engineers, analysts, contractors, lenders and agents to enter upon the Property in order to conduct physical inspections of the Property, including the structural, electrical and mechanical aspects of the WSA Improvements, the interiors of all buildings, supports, site work, foundations, soil, subsurface soils, drainage, seismic and other geological and topographical matters, location of asbestos, toxic substances, hazardous materials or wastes, if any, and any other investigations as Developer deems prudent with respect to the physical condition of the Property. Such investigations may be made by Developer and/or its agents during any normal business hours. Developer shall also have the right to investigate all matters relating to the zoning, use and compliance with other applicable laws which relate to the use and occupancy of the Property. Authority shall reasonably cooperate to assist Developer in completing such inspections and special investigations. Such physical inspections and investigations of the Property shall be conducted only upon no less than twenty-four (24) hours’ notice to Authority and shall be conducted at such times and in such a manner as to minimize any disruption to any of the WSA Tenants upon the Property. As a condition to Developer’s entry onto the Property, Developer shall provide to Authority a copy of all reports, studies and test results prepared by Developer’s consultants, without representation or warranty. As an additional condition of such entry, Developer shall (i) conduct all work or studies in a diligent, expeditious, and safe manner and not allow any dangerous or hazardous conditions to occur on the Property during or after the investigation; (ii) obtain any required governmental permits and comply with all applicable laws and governmental regulations; (iii) keep the Property free and clear of all materialmen’s liens, lis pendens and other liens arising out of the entry and work performed under this paragraph; (iv) maintain or assure 433 882/015610-0040 9930825.4 a06/01/17 -16- maintenance of workers’ compensation insurance (or state approved self-insurance) for all persons entering the Property in the amounts required by the State of California; and (v) provide to Authority prior to initial entry a certificate of insurance evidencing that Developer and/or the persons entering the Property have procured and have in effect commercial general liability insurance that satisfies the requirements set forth in Section 9.6 hereof. Authority shall have the right, but not the obligation, to accompany Developer during such investigations and/or inspections but shall not interfere therewith. Developer shall repair any and all damage to the Property or to any WSA Tenants’ property caused by such inspections or investigations in a timely manner and shall indemnify and defend the Authority from and against any liability arising from Developer’s physical inspection hereunder. Developer shall notify Authority and Escrow Holder in writing (“Developer’s Environmental/Physical Property Condition Due Diligence Notice”) on or before the expiration of the Environmental/Physical Property Condition Due Diligence Period of Developer’s approval or disapproval of the Due Diligence Items provided pursuant to Section 4.1 or 4.2 above, the condition of the Property, and Developer’s investigations with respect thereto. Developer’s failure to deliver Developer’s Environmental/Physical Property Condition Due Diligence Notice on or before the expiration of the Environmental/Physical Property Condition Due Diligence Period shall be conclusively deemed Developer’s approval thereof. 4.4 Financial/Operational Condition Due Diligence Period; New Indebtedness; Developer’s Equity. For a period of ninety (90) days after the opening of the Escrow (“Developer’s Financial/Operational Condition Due Diligence Period”), Developer shall have the right to determine, in its sole and absolute discretion and at no cost to Authority, the financial and operational feasibility of developing and operating the Project. Such Due Diligence Items shall include but not be limited to (a) Developer’s review of the WSA Rent Roll, WSA Tenant Leases, WSA Contracts, the copies of the financial, operational, contractual, and legal records and disclosures provided by Authority pursuant to Section 4.1 or to be provided by Authority pursuant to Section 4.2; and (b) review of arrangements with the County of Riverside Housing Authority including Section 8 support. Developer shall notify Authority and Escrow Holder in writing of Developer’s approval or disapproval of such Due Diligence Items (“Developer’s Financial/Operational Condition Due Diligence Notice”). Developer’s failure to deliver Developer’s Financial/Operational Condition Due Diligence Notice on or before the expiration of Developer’s Financial/Operational Condition Due Diligence Period shall be conclusively deemed to be Developer’s approval thereof. 4.5 Preliminary Title Report. Within five (5) days following the opening of the Escrow, or as soon thereafter as feasible, Escrow Holder shall deliver to Developer a preliminary title report or title commitment for an ALTA extended coverage policy of title insurance issued by Title Company dated not earlier than the date of opening of the Escrow, describing the state of title of the Property, together with copies of all exceptions specified therein and with all easements plotted in color (collectively, the “Preliminary Title Report”). Within the later of (a) thirty (30) days after Developer’s receipt of the “Survey” (as defined in Section 4.6 below), and (b) sixty (60) days after Developer’s receipt of the Preliminary Title Report (the “Title Due Diligence Period”), Developer shall notify Authority in writing (“Developer’s Title Objection Notice”) of any 434 882/015610-0040 9930825.4 a06/01/17 -17- objections Developer may have to title exceptions contained in the Preliminary Title Report. Authority shall have a period of ten (10) days after receipt of Developer’s Title Objection Notice in which to deliver written notice to Developer (“Authority’s Title Notice”) of Authority’s election to either (i) agree to remove the objectionable items prior to the Close of Escrow, or (ii) decline to remove any such title exceptions and terminate the Escrow and this Agreement; provided, however, that with the exception of the Existing Indebtedness, Authority shall be required to remove all monetary liens and encumbrances created by or as a result of Authority’s activities, suffered by Authority or assumed by Authority. Other than the Existing Indebtedness, Authority shall be responsible for all yield maintenance, prepayment penalties and/or any other similar fees and charges required by any lender of a Project-related loan that has been approved by Authority to remove existing financing encumbrances and Authority shall have no right to decline to remove same pursuant to the foregoing. If Authority notifies Developer of its election to terminate Escrow rather than remove the objectionable items (other than the Existing Indebtedness, which shall not constitute an objectionable item), Developer shall have the right, by written notice delivered to Authority within five (5) days after Developer’s receipt of Authority’s Title Notice, to agree to accept the Property subject to the objectionable items, in which event Authority’s election to terminate the Escrow shall be of no effect, and Developer shall take title at the Close of Escrow subject to such objectionable items. Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions (including, but not limited to, adding additional exceptions for matters shown on the Survey, the foregoing right of review and approval shall also apply to said amendment or supplement (provided that the period for Developer to review such amendment or supplement shall be the later of the expiration of the Title Due Diligence Period or ten (10) days from receipt of the amendment or supplement) and Escrow shall be deemed extended by the amount of time necessary to allow such review and approval in the time and manner set forth above; provided, however, that in no event shall the Close of Escrow be extended as a result of such delay for more than thirty (30) days. 4.6 Survey. Developer shall obtain a survey of the Property, at Developer’s cost, prepared by a land surveyor duly licensed by the State of California and in compliance with ALTA/ACSM standards (“Survey”) or an update to an existing Survey prepared for or on behalf of Authority, in a form acceptable to the Title Company for the deletion of the standard survey exception in the Title Policy relating to boundaries, without the addition of further exceptions unless the same are acceptable to Developer in its sole and absolute discretion. Provided Developer obtains the Survey within forty- five (45) days after the Effective Date, Developer shall have until the end of the Title Due Diligence Period to examine the Survey and to notify Authority in writing of any objections Developer has to the Survey (“Developer’s Survey Objection Notice”). Authority shall have a period of ten (10) days after receipt of Developer’s Survey Objection Notice in which to deliver written notice to Developer (“Authority’s Survey Notice”) of Authority’s election to either (1) agree to remove the objectionable items prior to the Close of Escrow or (2) decline to remove such items and terminate the Escrow and this Agreement. If Authority notifies Developer of its intention to not remove the objectionable items and terminate the Escrow and this Agreement, Developer shall have the right, by written notice delivered to Authority within five (5) days after 435 882/015610-0040 9930825.4 a06/01/17 -18- Developer’s receipt of Authority’s Survey Notice, to agree to accept the Property subject to the objectionable items, in which event, Authority’s election to terminate the Escrow shall be of no effect, and Developer shall accept the Property on the Close of Escrow subject to such objectionable items. Prior to the Closing, the Survey shall be recertified to Developer, Investor, Title Company, and Developer’s lender(s) of the New Indebtedness (if any). 4.7 USDA Matters. For a period of ninety (90) days after the date Developer obtains from Authority copies of the Existing Loan Documents (“USDA Condition Due Diligence Period”), Developer shall have the right, at no cost to Authority, to retain a certified inspector (the “Compliance Inspector”) for purposes of performing a capital needs assessment of the property to determine if the property is in compliance with all of USDA’s requirements pertaining to the Authority’s operation of the Property, as required under the Existing Loan Documents (collectively, the “USDA Requirements”). In the event the Compliance Inspector determines that the Property is not currently compliant with all of the USDA Requirements, Developer shall notify Authority in writing of the nature and extent of the corrective work required (“USDA Compliance Notice”). Authority shall have ten (10) days after receipt of Developer’s USDA Compliance Notice in which to deliver written notice to Developer (“Authority’s USDA Response Notice”) of Authority’s election to either (i) agree to make necessary corrections and modifications as determined necessary by the Compliance Inspector, at Authority’s expense, or (ii) terminate this Agreement and the Escrow by giving written notice thereof to Escrow Holder and Developer. If Authority notifies Developer of its election to terminate this Agreement and the Escrow rather than make the necessary corrections, Developer shall have the right by written notice delivered to Authority within three (3) days after Developer’s receipt of Authority’s USDA Notice Response to terminate this Agreement and the Escrow, to agree to accept the Property subject to the non- compliant items, in which event Authority’s election to terminate this Agreement and the Escrow shall be of no effect. The failure of Developer to deliver the USDA Compliance Notice to Authority in a timely manner shall be conclusively deemed to be Developer’s approval of the Property’s compliance with the USDA Requirements. During the USDA Condition Due Diligence Period, Developer shall also have the right, at no cost to Authority, to review, and to negotiate an assignment and assumption of, the Existing Indebtedness and the USDA Requirements with the USDA and/or with Provident, and other terms and conditions, all as acceptable to Developer in Developer’s sole and absolute discretion (collectively, the “Assumption Agreements”). Such other terms and conditions may include modification of the existing affordability restrictions, additional financing from USDA, modification of the terms of the Existing Indebtedness and USDA Restrictions, and subordination of the Existing Indebtedness to the New Indebtedness (if any). In the event Developer is unable to negotiate the Assumption Agreements on terms acceptable to Developer in Developer’s sole and absolute discretion, Developer shall deliver written notice to Authority terminating this Agreement. If Developer negotiates the Assumption Agreements, on terms satisfactory to Developer, in Developer’s sole and absolute discretion, the USDA Condition Due Diligence Period shall be extended for an additional thirty (30) days to allow Developer’s 436 882/015610-0040 9930825.4 a06/01/17 -19- governing board, Provident, and the USDA to effect approval of the Assumption Agreements prior to the Closing Date. The foregoing notwithstanding, Developer’s contacts with USDA and Provident shall constitute negotiations only and any modifications or proposed modifications shall be in no way binding upon Authority unless and until Close of Escrow occurs in the manner provided herein, and be at no cost or liability to Authority (and Developer shall defend, indemnify and hold Authority free and harmless with respect to same). 4.8 Books and Records. For a period of ninety (90) days after opening of Escrow, Developer shall be afforded full opportunity by Authority to examine all books and records which relate to the Property for calendar years 2011 to-date in the possession of Authority and/or Authority’s agents or employees, including the reasonable right to make copies of such books and records, and Authority shall make all such books and records available to Developer. Such right shall extend to all operating books of account, copies of all WSA Tenant Leases and all amendments thereto, rental applications and any other agreements, correspondence or other documents relating to the WSA Tenant Leases, tenant files, rent rolls, operating statements, budgets, accounting support for bills, inventories of WSA Personal Property, service contracts, management contracts, maintenance contracts, warranties, general ledgers, journals, vendor files, bank statements, invoices, operating manuals, maintenance records (including replacements of carpeting and appliances), utility bills, marketing data (including brochures), historical occupancy reports, traffic reports of tenant activities, rental histories, leasing floor plans and any summaries of such items. The foregoing notwithstanding, Authority shall have no obligation to provide information relating to tenants which Authority is legally prohibited from providing. 4.9 “AS-IS”. Developer acknowledges and agrees that it is acquiring the Property from Authority solely in reliance on its own investigation, and that no representations and/or warranties of any kind whatsoever, express or implied, have been made by Authority, or the City or by any of their respective directors, officers, officials, employees, representatives or agents. Developer further acknowledges and agrees that Developer will be acquiring the Property in “AS IS” condition with all faults and conditions then existing in and on the Property, whether known or unknown. Notwithstanding the foregoing, Authority acknowledges and agrees that neither this Section 4.9, nor any other term, provision or condition of this Agreement obligates Developer to remediate, or to incur any cost to remediate, any Hazardous Materials that were released or existed on the Property prior to the Close of Escrow. Developer acknowledges and agrees that, as between it and Authority, nothing in this Agreement or in the Regulatory Agreement shall ever be deemed, construed, or interpreted to obligate Authority to remediate, or to incur any expense to remediate, any Hazardous Materials discovered on the Property either before or after the Close of Escrow unless and until Authority expressly agrees to do so in writing. 437 882/015610-0040 9930825.4 a06/01/17 -20- 5. FINANCING PLAN FOR THE PROJECT 5.1 Financing Plan. It is contemplated that Developer will finance the Project (the “Project Financing”) through a combination of: (a) Construction Loan; Take-Out Loan. The Construction Loan and Take-Out Loan (if any); (b) Tax Credits. Developer equity, consisting of equity raised by the syndication to reputable investors of nine percent (9%) federal low-income housing credits obtained pursuant to 26 U.S.C. §42 (the “Tax Credits”); (c) Authority Loans. The Authority Loans, as more particularly provided in Section 5.2 below; Notwithstanding the foregoing, Developer shall continue to pursue additional sources of funds that may be available to assist with the costs of developing the Project. 5.2 Authority Loans. (a) Amount of Authority Loans. Subject to the terms and conditions of this Agreement, Authority agrees to make the following loans to Developer: (i) a loan in the principal amount of Two Million Three Hundred Sixty-Six Thousand Seven Hundred Twenty-Two Dollars ($2,366,722) (the “Authority Loan (Plans)”) to fund the costs Authority incurred in preparing engineering and architectural plans and drawings for the Project; (ii) a loan in the principal amount of Fifteen Million Fifty-Eight Thousand Two Hundred Eighty-Eight Dollars ($15,058,288) (the “Authority Loan (Property and Construction)”) to fund Developer’s acquisition of the Property from Authority, in the amount of Four Million Five Hundred Eighty-Five Thousand Four Hundred Ninety-Two Dollars (4,585,492), a portion of the construction costs of the Project, in the amount of Nine Million Four Hundred Thousand Dollars ($9,400,000) (“Construction portion of Authority Loan (Property and Construction)”), and the reserve account being transferred to Developer at the Close of Escrow, in the approximate amount of One Million Seventy-Three Thousand Thirty-Six Dollars ($1,073,036). The Authority Loan (Plans) shall be evidenced by the Authority Note (Plans), and shall be secured by the Authority Deed of Trust (Plans), and the Authority Loan (Property and Construction) shall be evidenced by the Authority Note (Property and Construction), and shall be secured by the Authority Deed of Trust (Property and Construction). (b) Disbursement Requests. Commencing as of the Close of Escrow, portions of the Construction Portion of Authority Loan (Property and Construction) shall be disbursed on a line-item by line-item basis in accordance with the Project Budget. In no event shall Authority have any obligation to disburse any amount for any item in excess of the amount allocated to such item in the Project Budget, unless approved, in writing, by the Executive Director; 438 882/015610-0040 9930825.4 a06/01/17 -21- provided, however, that upon completion and payment of all work for a particular line item, Developer may move any amounts remaining in such line to any other line item where payment for work has not been completed, and no Authority consent shall be required therefor. Disbursement shall be made only upon Developer’s written request in the form attached hereto as Attachment No.13 (a “Disbursement Request”) showing all costs that Developer intends to fund with such disbursement, itemized in such detail as the Executive Director may reasonably require, accompanied in each case by (a) invoices and lien releases (if such work could give rise to mechanic’s or materialmen’s liens) reasonably satisfactory to the Executive Director, including in any event conditional lien releases executed by each contractor and subcontractor who has received any payment for work performed, and (b) all other documents and information reasonably required by the Executive Director. Authority agrees to fund each Disbursement Request within twenty-one (21) days after Authority’s receipt of the Disbursement Request in completed form with all required supporting documentation, and reasonable determination by Authority that all of the conditions to disbursement set forth in this Section 5.2(b) have been satisfied, or waived by Authority. (c) Manner of Disbursement. Authority may make any disbursement (i) by check payable to Developer; (ii) on a voucher basis; (iii) by check payable jointly to Developer and any contractor, subcontractor other claimant; or (iv) by any other means reasonably selected by the Executive Director. Authority reserves the right to deposit the Construction Portion of Authority Loan (Property and Construction) into an escrow account with the Escrow Holder for disbursement directly by the Escrow Holder. In such event, the Escrow Holder shall be instructed to disburse portions of the Construction Portion of Authority Loan (Property and Construction) on receipt of a Disbursement Request that has been approved, in writing, by Authority. 5.3 Tax Credit Application. Developer shall (i) prepare and submit a complete application to TCAC for an allocation of Tax Credits in the First Round; and (ii) apply to reputable institutional investors and syndicators qualified to act as the Investor. If Developer does not receive a reservation of Tax Credits in the First Round, then in the Second Round Developer shall prepare and submit a complete second application to TCAC for an allocation of Tax Credits. If Developer does not receive a reservation of Tax Credits in the Second Round, then in the Third Round Developer shall prepare and submit a complete third application to TCAC for an allocation of Tax Credits. If Developer does not receive a reservation of Tax Credits in the Third Round, then Developer or Authority may terminate this Agreement pursuant to Section 5.6(a) or 5.7(a), respectively, upon written notice to the other; provided, however, that Authority’s Board may, in its sole and absolute discretion, permit Developer to make one (1) more additional reapplication (e.g., a fourth application). In such event, (x) Developer shall not be required to repay any amounts of the Construction Portion of Authority Loan (Property and Construction) disbursed to Developer for predevelopment costs and any amounts loaned to Developer by Authority for payment of predevelopment costs shall be forgiven; (y) Developer shall deliver to Authority any reports, studies, drawings, plans 439 882/015610-0040 9930825.4 a06/01/17 -22- and specifications; and (z) with the exception of any indemnity obligations of Developer and any other obligations of Developer that are expressly stated in this Agreement to survive the termination of this Agreement, Developer shall have no further obligations under this Agreement. Developer agrees to promptly submit to Authority all of the following documents at such time as the same are submitted by Developer to TCAC or other applicable body or when such documents are received by Developer, as applicable (any documents submitted prior to the Effective Date of this Agreement shall also have been submitted by Developer to Authority and reviewed by Authority prior to the Effective Date of this Agreement): (1) A true and correct copy of the preliminary reservation letter from TCAC, a copy of the letter of intent from the Investor reflecting the total amount of the syndication proceeds and the timing of the payment of such proceeds. (2) A complete copy of the Tax Credit Regulatory Agreement (4 California Code of Regulations § 10340(c)). (As more fully discussed in Section 4.14 of Authority Regulatory Agreement, should Authority be prevented by a final order of a court of competent jurisdiction, applicable and binding appellate opinion, or regulatory body with jurisdiction from enforcing, for any reason, the affordability restrictions set forth in this Agreement, to the extent legally permitted, Authority shall be a third-party beneficiary under said agreement and shall have full authority to enforce any breach or default by Developer thereunder in the same manner as though it were a breach or default under this Agreement.) (3) Complete copies of all correspondence or transmittals from TCAC or other jurisdiction (such as the Internal Revenue Service) containing any notification regarding the Project’s noncompliance with applicable provisions of the Tax Credit Program. 5.4 Project Budget. The Project Budget includes all of the following: (i) a detailed budget; (ii) a Sources and Uses of Funds Statement; (iii) a Cash Flow Projection; and (iv) a First Year Operating Budget. 5.5 Financing Commitments. Not later than the time provided in the Schedule of Performance, Developer shall submit to the Executive Director for approval commitments for the Project Financing. The Executive Director’s right to approve such commitments shall be limited to determining whether the commitments (i) provide sufficient funds to undertake and complete the development of the Project in accordance with the Project Budget and approved plans and specifications, and (ii) are from an Institutional Lender. Developer shall have diligently requested not less than three (3) competitive bids from qualified parties for the Tax Credits. 5.6 Developer Right to Terminate. Prior to the Close of Escrow, Developer, if it is not then in material default under this Agreement (subject to the notice and cure 440 882/015610-0040 9930825.4 a06/01/17 -23- provisions of Section 12.1), may terminate this Agreement by giving thirty (30) days’ written notice to Authority on the occurrence of either of the following: (a) Failure to Obtain Tax Credits. Developer, despite having made commercially reasonable efforts and by the time provided in the Schedule of Performance, has been unable to obtain from TCAC an allocation for Tax Credits under the application filed pursuant to Section 5.3 above. (b) Failure to Obtain Other Project Financing. Developer, despite having obtained from TCAC an allocation for Tax Credits and despite having made commercially reasonable efforts, has been unable, by the time provide in the Schedule of Performance, to obtain the balance of the Project Financing set forth in the Project Budget. (c) Project Infeasibility. It becomes reasonably evident to Developer that the Project cannot be constructed within the Project Budget, and Developer is unwilling or unable to make up the shortfall from funds from a source other than Authority and reasonably acceptable to the Executive Director. In the event of a termination pursuant to this Section 5.6, (i) Developer shall not be required to repay any amounts of the Construction Portion of Authority Loan (Property and Construction) disbursed to Developer for predevelopment costs and any amounts loaned to Developer by Authority for payment of predevelopment costs shall be forgiven; (ii) Developer shall deliver to Authority any reports, studies, drawings, plans and specifications; and (ii) with the exception of any indemnity obligations of Developer and any other obligations of Developer that are expressly stated in this Agreement to survive the termination of this Agreement, Developer shall have no further obligations under this Agreement. 5.7 Authority Right to Terminate. Prior to the Close of Escrow, Authority, if it is not then in material default under this Agreement (subject to the notice and cure provisions of Section 12.1), may terminate this Agreement by giving written notice to Developer on the occurrence of any of the following: (a) Developer’s Failure to Obtain Allocation. Developer, by the time provided in the Schedule of Performance, fails to obtain from TCAC an allocation for Tax Credits under the application filed pursuant to Section 5.3, above for the Third Round. (b) Developer’s Failure to Obtain Other Project Financing. Developer, despite having obtained from TCAC an allocation for Tax Credits, has been unable, by the time provided in the Schedule of Performance, to obtain the balance of the Project Financing set forth in the Project Budget. (c) Project Infeasibility. It becomes reasonably evident to Authority that the Project cannot be constructed within the Project Budget, and Developer is unwilling or unable to make up the shortfall from funds from a source other than Authority and reasonably acceptable to the Executive Director. 441 882/015610-0040 9930825.4 a06/01/17 -24- In the event of a termination pursuant to this Section 5.7, provided that if the termination is pursuant to paragraph (a) or (b) above Developer has made commercially reasonable efforts to obtain from TCAC an allocation of Tax Credits and the balance of the Project Financing set forth in the Project Budget, then (i) Developer shall not be required to repay any amounts of the Construction Portion of Authority Loan (Property and Construction) disbursed to Developer for predevelopment costs and any amounts loaned to Developer by Authority for payment of predevelopment costs shall be forgiven; (ii) Developer shall deliver to Authority any reports, studies, drawings, plans and specifications; and (ii) with the exception of any indemnity obligations of Developer and any other obligations of Developer that are expressly stated in this Agreement to survive the termination of this Agreement, Developer shall have no further obligations under this Agreement. 5.8 Developer Fee. The parties acknowledge and agree that Developer shall not be entitled to any fee for developing the Project except as expressly set forth in the Project Budget. 5.9 Cost Savings Obligation. Subject to the requirements of TCAC and other lenders providing loans to the Project that have been approved by Authority, Developer hereby agrees to provide and pay to Authority a “Cost Savings” payment for the Project in an amount to be determined based on the “Audit” (as those terms are described in subparagraph (a) below) to be conducted upon completion of construction of the Project. (a) Audit to Determine Cost Savings Amount. The actual amount of Cost Savings to be paid to Authority shall be determined after the Audit, as hereafter described, and the amount of such Cost Savings shall be equal to the amount by which the total sources of permanent financing for the Project (which financing includes, but is not limited to, the Authority Loans, the Take-Out Loan, and the equity raised by the sale of the Tax Credits exceed the costs of development incurred for the Project (which costs include, but are not limited to, the hard and soft costs incurred by Developer to develop the Project, and the amount spent to reduce the principal balance of the Construction Loan to the principal balance of the Take-Out Loan). Within sixty (60) days following the completion of lease-up of the Project, Developer shall cause its certified public accountant(s) to perform a final audit of the costs of development of the Project in accordance with the requirements of the Tax Credits and generally accepted accounting principles (“GAAP ”) and generally accepted auditing standards (herein referred to as “Audit”). If the Audit determines that the total sources of permanent financing for the Project (which financing includes, but is not limited to, the Authority Loans, the Take-Out Loan, and the equity raised by the sale of the Tax Credits exceed Developer’s total costs to develop the Project (which costs include, but are not limited to, the hard and soft costs incurred by Developer to develop the Project, and the amount spent to reduce the principal balance of the Construction Loan to the principal balance of the Take-Out Loan), such excess shall be considered the “Cost Savings” for the Project. 442 882/015610-0040 9930825.4 a06/01/17 -25- (b) Cost Savings Payment as Payment of Principal on Authority Loans. Subject to the requirements of TCAC and other lenders providing loans to the Project that have been approved by Authority, the Cost Savings for the Project, once determined by the Audit pursuant to Section 5.9(a) above and subject to Section 5.9(c) below, shall be due and paid by Developer to Authority and allocated and credited as a principal payment on the Construction Portion of Authority Loan (Property and Construction), as and when paid. Alternatively, the Cost Savings may be used to fund a social services reserve to be used for the Project. (c) Timing of Payment of Cost Savings. The Cost Savings for the Project shall become due and payable by Developer to Authority upon the later of (i) sixty (60) days after receipt by Developer of the final Tax Credit equity, and (ii) completion of construction of the Project, as evidenced by Authority’s issuance of a Release of Construction Covenants. 6. DISPOSITION OF PROPERTY 6.1 Agreement. Authority, subject to the conditions set forth in Section 6.2 below, agrees to sell the Property to Developer, and Developer, subject to the conditions set forth in Section 6.3 below, agrees to purchase the Property from Authority. Subject to each party’s reserved rights hereunder, the parties shall cooperate with one another and shall exercise commercially reasonable diligence in an effort to ensure that the conditions precedent set forth in Sections 6.2 and 6.3 are timely satisfied. 6.2 Conditions for Authority’s Benefit. Authority’s obligation to sell the Property to Developer shall be subject to satisfaction of all of the following conditions precedent or Authority’s written waiver of such conditions precedent in its sole and absolute discretion: (a) Organizational Documents. The Executive Director shall have received and approved a copy of such portions of the organizational documents of Developer or Developer’s successor-in-interest as the Executive Director deems reasonably necessary to document the power and authority of Developer to perform its obligations set forth in this Agreement. Developer shall have made full disclosure to Authority of the names and addresses of all persons and entities that have a beneficial interest in Developer. (b) Insurance. Developer shall have submitted to Authority and Authority shall have approved Developer’s evidence of the liability insurance required pursuant to Section 9.6 hereof. (c) Evidence of Project Financing. The Executive Director shall have received and reasonably approved the following: (i) Construction Loan. True and complete copies of the Construction Loan documents evidencing the obligation of an Institutional 443 882/015610-0040 9930825.4 a06/01/17 -26- Lender to make the Construction Loan to Developer, subject only to reasonable and customary conditions. (ii) Tax Credit Financing. Documentary evidence reasonably acceptable to the Executive Director that Developer has committed, or caused to be committed, funds from the syndication of the Tax Credits (the “Tax Credit Funds”) for construction of the Project, subject only to reasonable and customary conditions. (iii) Take-Out Loan Commitment. If applicable, a commitment from an Institutional Lender to make a permanent loan to Developer, with a term of not less than fifteen (15) years, in sum sufficient, when added to any Tax Credit Funds to be disbursed for such purpose, to take-out any existing short-term financing, subject only to reasonable and customary conditions. (d) USDA Approval. USDA shall have approved the transfer and sale of the WSA Property to Developer, and Developer shall have executed all documents required by USDA to effect the transfer and sale. (e) General Contractor. The general contractor for the Project (the “General Contractor”) shall have been approved by the Executive Director. (f) Construction Contract. Authority shall have received a true and complete copy of a contract by and between Developer and the General Contractor pursuant to which the General Contractor has agreed to construct the Project at a cost consistent with the costs set forth therefor in the Project Budget (the “Construction Contract”) and the Executive Director shall have approved said Construction Contract. (g) Completion Bond. If the Construction Lender or the Investor require that a completion bond be posted by the General Contractor, then such completion bond shall name Authority as a co-obligee. (h) Completion Guaranty. If the Construction Lender or the Investor require a completion guaranty from Developer, or any Affiliate thereof, then Authority shall have also received a completion guaranty from Developer in similar form and content. (i) Building Permit. The Building Permit for the Project shall have issued or shall be ready to issue subject only to the payment of applicable fees, the posting of required security, or both. (j) Construction to Commence. The Executive Director shall be reasonably satisfied that construction of the Project will commence not later than thirty (30) days after the Close of Escrow and thereafter will be pursued to completion in a diligent and continuous manner. 444 882/015610-0040 9930825.4 a06/01/17 -27- (k) Assignment of Construction Contract. Developer shall have conditionally assigned to Authority the Construction Contract by an instrument substantially in the form attached hereto and incorporated herein as Attachment No. 10, including obtaining the consent thereto of the General Contractor, which assignment shall be subordinated to any pledge or assignment to the Construction Lender. (l) Request for Notice of Default. Escrow Holder shall be ready to record a request for notice of default pursuant to Civil Code Section 2924(b), requesting that any beneficiaries of liens securing the Project Financing notify Authority of any default under the instrument creating the lien (the “Request for Notice”). (m) Documents Executed. Developer shall have duly executed the Grant Deed, the Authority Note (Plans), the Authority Note (Property and Construction), the Authority Deed of Trust (Plans), the Authority Deed of Trust (Property and Construction), Authority Regulatory Agreement, and Notice of Affordability, with signatures acknowledged (as applicable) and deposited them into Escrow. (n) Settlement Statement. Authority shall have approved the settlement statement prepared by Escrow Holder for the Close of Escrow. (o) Title Policy. Title Company is prepared to issue its LP-10 loan policy of title insurance naming Authority as the insured, in a policy amount not less than the principal amount of Authority Loans, showing Developer as the fee owner of the Property and insuring each of the Authority Deed of Trust (Plans) and Authority Deed of Trust (Property and Construction) to be a valid lien on the Property subject only to exceptions approved by Authority (the “Authority Title Policy”). (p) Total Project Cost. Nothing shall have come to the attention of Developer and/or Authority to indicate that the Project cannot be completed at a cost consistent with the Project Budget and, if there has been such an indication, Developer has provided evidence, reasonably satisfactory to Executive Director, of the availability of funding sources other than Authority to complete the Project. If Developer becomes aware of any such information, Developer shall promptly give notice thereof to Authority. (q) Representations and Warranties. The representations of Developer contained in this Agreement shall be correct in all material respects as of the date of the disbursement as though made on and as of that date and, if requested by the Executive Director, Authority shall have received a certificate to that effect signed by Developer. (r) No Default. No Event of Default by Developer shall then exist, and no event shall then exist which, with the giving of notice or the passage of time or 445 882/015610-0040 9930825.4 a06/01/17 -28- both, would constitute an Event of Default by Developer and, if requested by Executive Director, Authority shall have received a certificate to that effect signed by Developer. 6.3 Conditions for Developer’s Benefit. Developer’s obligation to purchase the Property from Authority shall be subject to satisfaction of all of the following conditions precedent or Developer’s written waiver of such conditions precedent in its sole and absolute discretion: (a) Condition of Property. No material changes shall have occurred after the Effective Date with respect to the condition of the Property. (b) No Termination. Developer shall have approved the environmental condition of the Property pursuant to Section 4.3, the financial condition of the Property pursuant to Section 4.4, the condition of title to the Property pursuant to Section 4.5, the Survey pursuant to Section 4.5, and the USDA matters pursuant to Section 4.7. (c) Evidence of Project Financing. The Developer shall have received commitments for the Construction Loan, Tax Credit Financing, and Take-Out Loan (if any) in form and substance acceptable to the Developer, and the Construction Loan and Tax Credit financing shall close concurrently with Close of Escrow. (d) Total Project Cost. Nothing shall have come to the attention of Developer and/or Authority to indicate that the Project cannot be completed at a cost consistent with the Project Budget and, if there has been such an indication, Developer has provided evidence, reasonably satisfactory to Executive Director, of the availability of funding sources other than Authority to complete the Project. (e) Additional Authority Deliverables. Authority shall have delivered to Escrow Holder all of the following: (i) Two (2) duplicate original copies of the WSA Bill of Sale, duly executed by Authority; (ii) Two (2) duplicate originals of the Assignment of WSA Tenant Leases, duly executed by Authority; (iii) All of the original WSA Tenant Leases including any amendments, modifications, letter agreements and correspondence relating thereto (to be delivered to Developer at the Property upon Close of Escrow); (iv) A Rent Roll, dated no earlier than three (3) days prior to the Closing Date; 446 882/015610-0040 9930825.4 a06/01/17 -29- (v) A Non-Foreign Affidavit and a California Franchise Tax Board Form 590-RE executed by Authority; (vi) Originals, if available, and copies if originals are unavailable, of all WSA Contracts which Developer elects to assume pursuant to Section 4.2 hereof (to be delivered to Developer at the Property upon Close of Escrow); (vii) Originals or, if unavailable, copies of all Intangible Personal Property which Authority has in its possession (to be delivered to Developer at the Property upon Close of Escrow); (viii) Two (2) duplicate originals of an Assignment of Contracts that includes all WSA Contracts which Developer has elected to assume pursuant to Section 4.2, duly executed by Authority; (ix) All soils, seismic, geologic, drainage, toxic waste and environmental reports, surveys, “as-built” plans and specifications, working drawings, grading plans, elevations and similar information with respect to the WSA Real Property and Additional Real Property heretofore obtained by Authority which Authority has in its possession to the extent that originals of such items have not been delivered previously by Authority to Developer pursuant to Section 4.1 or 4.2 (to be delivered to Developer at the Property upon Close of Escrow); (x) Two (2) duplicate originals of the Notice to Tenants; (xi) All keys to the WSA Improvements which Authority or Authority’s agents have in their possession, which keys shall include all “master” keys and apartment unit keys in the possession of Authority or its agents or representative, which keys shall be properly tagged for identification (to be delivered to Developer at the Property upon Close of Escrow); (xii) A report to be ordered and obtained by Escrow Holder prepared by Title Company or a search firm reasonable acceptable to Developer of all UCC liens filed in the California Secretary of State’s Office against the WSA Property, to be delivered to Developer at least five (5) days prior to the Closing Date; (f) USDA and Provident Approvals. Each of USDA and Provident shall have approved the transfer and sale of the WSA Property to Developer, and the assignment and assumption of the USDA Loan and Provident Loan, respectively, to Developer, and Authority shall have executed all documents required by USDA and Provident to effect the transfer and sale and assignments. (g) Assignment of Design and Engineering Agreements. Authority shall have, concurrent with the Close of Escrow, assigned to Developer the 447 882/015610-0040 9930825.4 a06/01/17 -30- Design and Engineering Agreements for the Project pursuant to the Assignment of Contracts, which assignment shall be subordinated to any pledge or assignment to the Construction Lender. Authority shall have also delivered to Developer the written consent of the other party to each such Design and Engineering Agreement to said assignment in the form included as part of said Assignment of Contracts including, without limitation, to the use by Developer of the Design and Engineering Agreements, as well as the ideas, designs, and concepts contained within them. (h) Building Permit. The Building Permit for the Project shall have issued or shall be ready to issue subject only to the payment of applicable fees, the posting of required security, or both. (i) Settlement Statement. Developer shall have approved the settlement statement prepared by Escrow Holder for the Close of Escrow. (j) Title Insurance. The Title Company shall be prepared to issue an ALTA extended policy of title insurance, with liability in the amount required by the Investor, but in no event less than the total of the equity raised from the sale of the Tax Credits plus the principal amounts of the Take-Out Loan and Authority Loans, showing title to the Property vested in Developer, free and clear of all recorded liens, encumbrances, encroachments, assessments, leases and taxes except (i) the Project Documents being recorded at the Close of Escrow pursuant to the terms of this Agreement, (ii) the lien of the Construction Loan Security Documents, (iii) the exceptions set forth in that certain preliminary title report issued by the Title Company as its Order Number FS1699, dated April 17, 2017 (the “Title Report”), and (iv) the standard conditions and exceptions contained in an ALTA standard owner’s policy of title insurance that is regularly issued by the Title Company in transactions similar to the one contemplated by this Agreement (the “Developer Title Policy”). With respect to the forgoing, Developer acknowledges that prior to the Effective Date, Authority has caused the Title Company to deliver to Developer a copy of the Title Report, together with legible copies of the documents underlying the exceptions set forth therein, and Developer has approved all of the same. The Title Company shall provide the City with a copy of Developer Title Policy. (k) No Default. No Event of Default by Authority shall then exist, and no event shall then exist which, with only the giving of notice or the passage of time or both, would constitute an Event of Default by Authority. 6.4 Developer Right to Terminate. If, by the time provided in the Schedule of Performance, any of the conditions set forth in Section 6.3 have not been satisfied, or waived by Developer, then Developer, provided that it is not then in material default under this Agreement (subject to the notice and cure provisions of Section 12.1), may terminate this Agreement by giving thirty (30) days’ written notice to Authority. In the event of such termination, (i) Developer shall not be required to repay any amounts of the Construction Portion of Authority Loan (Property and Construction) disbursed to 448 882/015610-0040 9930825.4 a06/01/17 -31- Developer for predevelopment costs and any amounts loaned to Developer by Authority for payment of predevelopment costs shall be forgiven; (ii) Developer shall deliver to Authority any reports, studies, drawings, plans and specifications; and (ii) with the exception of any indemnity obligations of Developer and any other obligations of Developer that are expressly stated in this Agreement to survive the termination of this Agreement, Developer shall have no further obligations under this Agreement. 6.5 Developer’s Failure to Satisfy Conditions. If, by the time provided in the Schedule of Performance, any of the conditions set forth in Section 6.2 have not been satisfied, or waived by Authority, then Authority, provided that it is not then in material default under this Agreement (subject to the notice and cure provisions of Section 12.1), may terminate this Agreement by giving thirty (30) days’ written notice to Developer. 6.6 Waiver of Conditions. The conditions set forth in Section 6.2 are for Authority’s benefit only and the Executive Director may waive all or any part of such rights by written notice to Developer. The conditions set forth in Section 6.3 are for Developer’s benefit only and Developer may waive all or any part of such rights by written notice to Authority. 7. CLOSE OF ESCROW; ESCROW EXPENSES 7.1 Close of Escrow. Upon receipt by the Escrow Holder of all funds and documents required to conduct the Close of Escrow in accordance with this Agreement, and when the conditions precedent described in Section 6.2 have been satisfied, or waived by the Executive Director, and the conditions precedent described in Section 6.3 have been satisfied, or waived by Developer, the Escrow Holder shall take all of the following actions: (a) Recordation. Escrow Holder shall record the following documents in the Official Records in the following order: (i) Grant Deed; (ii) Authority Regulatory Agreement; (iii) the Construction Loan Security Documents; (iv) the Authority Deed of Trust (Plans); (v) the Authority Deed of Trust (Property and Construction); (vi) the Request for Notice; (vii) the Notice of Affordability; and (viii) such other documents required to close the Escrow in accordance with this Agreement; 449 882/015610-0040 9930825.4 a06/01/17 -32- (b) Deliveries to Authority. Escrow Holder shall deliver to Authority: (i) a conformed copy of each of the documents recorded pursuant to paragraph (a) above; (ii) the original recorded Authority Regulatory Agreement, Authority Deed of Trust (Plans), Authority Deed of Trust (Property and Construction), Request for Notice, and Notice of Affordability; and (iii) Authority Title Policy; (c) Deliveries to Developer. Escrow Holder shall deliver to Developer: (i) a conformed copy of each of each of the documents recorded pursuant to paragraph (a) above; (ii) the original recorded Grant Deed; and (iii) Developer Title Policy. (d) Property Taxes. Authority is exempt from the payment of property taxes and will not be required to pay any taxes for the Property. Developer shall pay all property taxes and assessments for the Property from and after the Close of Escrow. 7.2 Expenses of Developer. Developer shall pay: (a) any and all documentary transfer taxes and recording fees arising from the conveyance of the Property from Authority to Developer, (b) the Escrow fee, (c) the premium for the Authority Title Policy and Developer Title Policy, and (d) all such other costs and expenses related to the Escrow and not expressly provided for herein. 7.3 Instruction to Escrow Holder Regarding Waiver of Transfer Taxes and Recording Fees. The Escrow Holder is hereby instructed to seek such waivers and exemptions from transfer taxes and recording fees as are available pursuant to Revenue and Taxation Code Section 11922 and Government Code Sections 6103 and 27383, respectively. 7.4 Broker’s Commissions. Developer represents and warrants to Authority that Developer has not engaged any broker, agent or finder in connection with this Agreement, and Developer agrees to indemnify, protect, hold harmless, and defend the Indemnitees from any claim by any brokers, agents or finders retained by Developer. Authority represents and warrants to Developer that Authority has not engaged any broker, agent, or finder in connection with this Agreement, and Authority agrees to indemnify, protect, hold harmless, and defend Developer and its officers, officials, members, employees, representatives, agents, and volunteers from any claim by any brokers, agents, or finders retained by Authority. 450 882/015610-0040 9930825.4 a06/01/17 -33- 8. OTHER ESCROW INSTRUCTIONS 8.1 Funds in Escrow. All funds received in the Escrow shall be deposited by the Escrow Holder in a general escrow account with any state or national bank doing business in the State of California and reasonably approved by the Executive Director and Developer, and such funds may be combined with other escrow funds of the Escrow Holder. All disbursements shall be made on the basis of a thirty (30) day month. 8.2 Failure to Close. If the Close of Escrow does not occur on or before the (applicable) Outside Closing Date, either party not then in default may, in writing, demand the return of its money, papers, or documents from the Escrow Holder. No demand for return shall be recognized until fifteen (15) days after the Escrow Holder (or the party making such demand) shall have mailed copies of such demand to the other party. Objections, if any, shall be raised by written notice to the Escrow Holder and to the other party within the fifteen (15) day period, in which event the Escrow Holder is authorized to hold all money, papers and documents until instructed by mutual agreement of the parties or, upon failure thereof, by a court of competent jurisdiction. If no such demands are made, the Escrow Holder shall close the Escrow as soon as possible. If objections are raised in the manner provided above, the Escrow Holder shall not be obligated to return any such money, papers or documents except upon the written instructions of both the Executive Director and Developer, or until the party entitled thereto has been determined by a final decision of a court of competent jurisdiction. If no such objections are made within said fifteen (15) day period, the Escrow Holder shall immediately return the demanded money, papers or documents. 8.3 Amendments. Any amendment to these Escrow instructions shall be in writing and signed by the Executive Director or Authority Counsel and Developer. At the time of any amendment, the Escrow Holder shall agree to carry out its duties as the Escrow Holder under such amendment. 8.4 Notices. All Notices from the Escrow Holder to Authority or Developer shall be given in the manner provided in Section 13. 8.5 Liability. The liability of the Escrow Holder under this Agreement is limited to performance of the obligations imposed upon it under Sections 6, 7 and 8 and such additional general or special instructions as may be prepared by the Escrow Holder and approved and executed by the parties. 9. DEVELOPMENT OF THE PROJECT 9.1 Scope of Development. Developer shall construct the Project on the Property in accordance with all applicable Governmental Requirements, the approved Land Use Entitlements, and the Scope of Development. In the event of any conflict between the approved Land Use Entitlements and the Scope of Development, the approved Land Use Entitlements shall govern and control. Subject to Section 16.10 451 882/015610-0040 9930825.4 a06/01/17 -34- below, Developer shall commence and complete construction of the Project on the Property by the respective times established therefor in the Schedule of Performance. 9.2 Additional Governmental Permits and Approvals. Before commencement of construction or development of any buildings, structures or other works of improvement upon the Property by Developer, Developer shall, at its own expense, secure or cause to be secured any and all permits and approvals not included in the Land Use Entitlements which may be required by the City or any other governmental agency affected by or with jurisdiction over such construction, development or work, including, without limitation, a Building Permit. Developer shall pay all necessary fees. Authority will, without obligation to incur liability or expense therefor, use its reasonable efforts to expedite issuance of building permits and certificates of occupancy for construction that meets the requirements of the La Quinta Municipal Code. 9.3 Displacement; Relocation. Developer acknowledges that each of the Existing WSA Tenants will be displaced in order to complete the demolition of one (1) of the Existing WSA Units and rehabilitation work planned for seventy-two (72) of the Existing WSA Units. Developer acknowledges and agrees that it is the purpose and intent of Authority to minimize the disruption to the Existing WSA Tenants. In furtherance of the foregoing, Developer shall not displace any Existing WSA Tenant until such time as Developer has either completed construction of a New WSA Unit or completed rehabilitation of an Existing WSA Unit, as evidenced by the City’s issuance of a certificate of occupancy for such New WSA Unit or rehabilitated Existing WSA Unit, as applicable, and the Existing WSA Tenant is relocated to such New WSA Unit or rehabilitated Existing WSA Unit, as applicable. In carrying out the construction of the Project, Developer shall comply with the Relocation Plan and Relocation Laws and Regulations. 9.4 Cost of Project. With the exception of the Authority Loans that Authority has agreed to provide Developer hereunder to assist Developer with the costs to acquire the Property and construct the Project, all Project Costs shall be borne exclusively by Developer. The Developer shall also bear all costs related to discharging the duties of Developer set forth in this Agreement. The Developer shall be responsible for all fees associated with construction of the Project, including, but not limited to, school facilities fees and development impact fees. 9.5 Indemnity. Developer shall defend (by counsel satisfactory to Authority), reimburse, indemnify, protect, and hold harmless the Indemnitees on demand, for any and all claims, including claims for injunctive, equitable, or declaratory relief, losses, costs, liabilities of any kind (including strict liability), including liability for damage to property or injuries to persons, including accidental death, damages, expenses (including reasonable attorneys’ fees incurred in connection with any of the foregoing and incurred in connection with enforcing this provision), penalties or fines, of any kind whatsoever, paid, incurred, or suffered by or asserted against any of the Indemnitees by any person (collectively “Claims”), in connection with, arising out of or resulting in any way whatsoever from any of the following (except to the extent arising or resulting from the gross negligence or willful misconduct of any Indemnitee): 452 882/015610-0040 9930825.4 a06/01/17 -35- (a) the activities or performance of Developer or any of Developer’s employees, agents, representatives, contractors, or subcontractors under this Agreement; (b) the making of the Authority Loans; (c) any act or omission of Developer, any of Developer’s contractors, subcontractors or material suppliers, engineers, architects or other persons with respect to the Property; (d) the acquisition, occupancy or use of the Property by Developer; or (e) Developer’s failure to comply with the Relocation Plan or Relocation Laws and Regulations. 9.6 Insurance Requirements. (a) Commencing on the Close of Escrow and continuing throughout the term of the Authority Regulatory Agreement, Developer shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to Authority’s Executive Director, the following policies of insurance: (i) Commercial General Liability Insurance covering bodily injury, property damage, personal injury and advertising injury written on a per-occurrence and not a claims-made basis containing the following minimum limits: (i) general aggregate limit of Three Million Dollars ($3,000,000); (ii) products-completed operations aggregate limit of Three Million Dollars ($3,000,000); (iii) personal and advertising injury limit of One Million Dollars ($1,000,000); and (iv) each occurrence limit of One Million Dollars ($1,000,000). Said policy shall include the following coverages: (i) blanket contractual liability (specifically covering the indemnification clause contained in Section 9.5 hereof); (ii) products and completed operations; (iii) independent contractors; (iv) Owner’s broad form property damage; (v) severability of interest; (vi) cross liability; and (vii) property damage liability arising out of the so-called “XCU” hazards (explosion, collapse and underground hazards). The policy shall be endorsed to have the general aggregate apply to this Project only. (ii) A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure, and provide legal defense for Authority and Developer against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Developer in the course of carrying out the work or services contemplated in this Agreement, and Employers Liability Insurance in an amount not less than One Million Dollars ($1,000,000) combined single limit for all damages arising from each accident or occupational disease. 453 882/015610-0040 9930825.4 a06/01/17 -36- (iii) A policy of comprehensive automobile liability insurance written on a per-occurrence basis in an amount not less than Two Million Dollars ($2,000,000) combined single limit covering all owned, non-owned, leased and hired vehicles used in connection with the Work. (b) Commencing on the date of the Close of Escrow and continuing until Authority issues a Release of Construction Covenants for the Project, Developer shall procure and maintain, at its sole cost and expense, in a form and content reasonably satisfactory to Authority’s Executive Director, Builder’s Risk (course of construction) insurance coverage in an amount equal to the full cost of the hard construction costs of the Project. Such insurance shall cover, at a minimum: all work, materials, and equipment to be incorporated into the Project; the Project during construction; the completed Project until such time as the City issues a final certificate of occupancy for the Project, and storage and transportation risks. Such insurance shall protect/insure the interests of Developer/owner and all of Developer’s contractor(s), and subcontractors, as each of their interests may appear. If such insurance includes an exclusion for “design error,” such exclusion shall only be for the object or portion which failed. Authority shall be a loss payee under such policy or policies and such insurance shall contain a replacement cost endorsement (c) Prior to commencing any activities hereunder, Developer shall cause any general contractor with whom it has contracted for the performance of work on the Property to secure and thereafter to maintain insurance that satisfies all of the requirements of this Section 9.6. (d) Commencing on the date Authority issues a Release of Construction Covenants, and continuing throughout the term of the Regulatory Agreement, Developer shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to Authority’s Executive Director, the following types of insurance: (i) Insurance against fire, extended coverage, vandalism, and malicious mischief, and such other additional perils, hazards, and risks as now are or may be included in the standard “all risk” form in general use in Riverside County, California, with the standard form fire insurance coverage in an amount equal to full actual replacement cost thereof, as the same may change from time to time. The above insurance policy or policies shall include coverage for earthquakes to the extent generally and commercially available at commercially reasonable rates, if such insurance is generally obtained for affordable Projects in the county of Riverside. Authority shall be a loss payee under such policy or policies and such insurance shall contain a replacement cost endorsement. (ii) Business interruption and extra expense insurance to protect Developer and Authority covering loss of revenues and/or extra expense incurred by reason of the total or partial suspension or delay of, or 454 882/015610-0040 9930825.4 a06/01/17 -37- interruption in, the operation of the Project caused by loss or damage to, or destruction of, any part of the insurable real property structures or equipment as a result of the perils insured against under the all risk physical damage insurance, covering a period of suspension, delay or interruption of at least twelve (12) months, in an amount not less than the amount required to cover such business interruption and/or extra expense loss during such period. (iii) Boiler and machinery insurance in the aggregate amount of the full replacement value of the equipment typically covered by such insurance. (e) The following additional requirements shall apply to all of the above policies of insurance: (i) All of the above policies of insurance shall be primary insurance and, except the Worker’s Compensation, Employer Liability insurance, and automobile liability insurance, shall name the Indemnitees as additional insureds on an ISO Form CG 20:10 (current version) or substantially similar form and not an ISO Form CG 20:09. The insurer shall waive all rights of subrogation and contribution it may have against the Indemnitees and their respective insurers. All of said policies of insurance shall provide that said insurance may not be amended or cancelled without providing thirty (30) days’ prior written notice to Authority. In the event any of said policies of insurance are cancelled, Developer shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the Executive Director. Not later than the Effective Date, Developer shall provide the Executive Director with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders shall be subject to the reasonable approval of the Executive Director. (ii) The policies of insurance required by this Agreement shall be satisfactory only if issued by companies of recognized good standing authorized to do business in California, rated “A-” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Executive Director due to unique circumstances. (iii) The Developer agrees that the provisions of this Section shall not be construed as limiting in any way Authority’s right to indemnification or the extent to which Developer may be held responsible for the payment of damages to any persons or property resulting from Developer’s activities or the activities of any person or persons for which Developer is otherwise responsible. 455 882/015610-0040 9930825.4 a06/01/17 -38- 9.7 Remedies for Defaults Re: Insurance. In addition to any other remedies Authority may have, if Developer commits a default hereunder by failing to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, Authority may, at its sole option, obtain such insurance and either deduct the amount of the premium for such insurance from any sums due to Developer by Authority from the Authority Loans or invoice the Developer for the amount of said premium. Exercise of the remedy set forth herein, however, is an alternative to other remedies Authority may have and is not the exclusive remedy for Developer’s failure to maintain insurance or secure appropriate endorsements. 9.8 Obligation to Repair and Restore Damage Due to Casualty Covered by Insurance. If the Project shall be totally or partially destroyed or rendered uninhabitable by fire or other casualty required to be insured against by Developer, Developer shall, subject to the rights of the Construction Lender promptly proceed to obtain all available insurance proceeds and, to the extent proceeds are available, take all steps necessary to begin reconstruction and, immediately upon receipt of insurance proceeds, to promptly and diligently commence the repair or replacement of the Project to substantially the same condition as it existed prior to the casualty and Developer shall complete or cause to be completed the same as soon as possible thereafter so that the Project can be operated in accordance with this Agreement. The Authority shall cooperate with Developer, at no expense to Authority, in an effort to obtain any governmental permits required for such repair, replacement, or restoration. 9.9 Rights of Access. For purposes of assuring compliance with this Agreement, representatives of Authority and the City shall have the right of access to the Property without charges or fees, at normal business hours during the construction of the Project (subject to reasonable job safety rules as may be imposed by Developer or the General Contractor), including, but not limited to, the inspection of the work being performed in constructing the Project, so long as they comply with all safety rules. Such representatives of Authority or of the City shall be those who are so identified in writing by the Executive Director of Authority. The Authority shall repair any damage arising out of the activities of Authority and the City as referred to in this Section 9.10. 9.10 Compliance with Laws; Compliance with Prevailing Wage Laws. (a) Compliance with Laws. The Developer shall carry out the construction, development and operation of the Project in conformity with all Governmental Requirements, including without limitation all applicable state labor standards, City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City’s Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil Code Section 51, et seq. (b) Compliance with Prevailing Wage Laws. 456 882/015610-0040 9930825.4 a06/01/17 -39- (i) Developer shall carry out the construction through completion of the Project and the overall development of the Property in conformity with all applicable Governmental Requirements relating to the payment of prevailing wages and compliance with prevailing wage rules, including, without limitation, if applicable, the requirements to pay prevailing wages under federal law (the Davis-Bacon Act, 40 U.S.C. Section 3141, et seq., and the regulations promulgated thereunder set forth at 29 CFR Part 1 (collectively, “Davis-Bacon”)) and California law (Labor Code Section 1720, et seq.) (“California Prevailing Wage Law”). The parties acknowledge that a financing structure utilizing certain federal and/or state funding sources and financing scenarios may trigger compliance with applicable state and federal prevailing wage laws and regulations. Developer shall determine the applicability of federal, state, and local prevailing wage laws based upon the final financing structure and sources of funding of the Project, as approved by the Executive Director. (ii) Developer shall be solely responsible, expressly or impliedly and legally and financially, for determining and effectuating compliance with all applicable federal, state, and local public works requirements, prevailing wage laws, and labor laws and standards, and Authority makes no representation, either legally and/or financially, as to the applicability or non-applicability of any federal, state, and local laws to the construction of the Project. Developer expressly, knowingly, and voluntarily acknowledges and agrees that neither Authority nor the City have previously represented to Developer or to any representative, agent, or Affiliate of Developer, or any contractor(s) or any subcontractor(s) for the demolition work, construction, or development of the Project, in writing or otherwise, in a call for bids or otherwise, that the work and construction of the Project is (or is not) a “public work,” as defined in Section 1720 of the Labor Code or under Davis-Bacon. (iii) Developer knowingly and voluntarily agrees that Developer shall have the obligation to provide any and all disclosures or identifications as may be required by Labor Code Section 1781 and/or by Davis Bacon, as the same may be amended from time to time, or any other similar law or regulation, to the extent applicable to the work and construction of the Project. Developer shall indemnify, protect, pay for, defend, and hold harmless the Indemnitees, with legal counsel reasonably acceptable to Authority, from and against any and all loss, liability, damage, claim, cost, expense, and/or “increased costs” (including reasonable attorneys fees, court and litigation costs, and fees of expert witnesses) which, in connection with the development, construction (as defined by applicable law) and/or operation of the Project, including, without limitation, any and all public works (as defined by applicable law), results or arises in any way from any of the following: (i) the noncompliance by Developer or its contractor with any applicable local, 457 882/015610-0040 9930825.4 a06/01/17 -40- state, and/or federal law or regulation, including, without limitation, any applicable federal and/or state labor laws or regulations (including, without limitation, if applicable, the requirement to pay state and/or federal prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code and/or of Davis Bacon, as the same may be amended from time to time, or any other similar law or regulation; and/or (iii) failure by Developer to provide any required disclosure or identification as required by Labor Code Section 1781 and/or by Davis Bacon, as the same may be amended from time to time, or any other similar law or regulation. It is agreed by the parties that, in connection with the demolition work, development, and construction (as defined by applicable law or regulation) of the Project, including, without limitation, any and all public works (as defined by applicable law or regulation), Developer shall bear all risks of payment or non-payment of prevailing wages under applicable federal, state, and local law or regulation and/or the implementation of Labor Code Section 1781 and/or by Davis Bacon, as the same may be amended from time to time, and/or any other similar law or regulation. The foregoing indemnity shall survive termination of this Agreement and shall continue after completion of the construction and development of the Project by Developer. (iv) “Increased costs,” as used in this Section 9.10, shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be amended from time to time. 9.11 Anti-Discrimination. Pursuant to Section 33050 of the California Community Redevelopment Law, Developer for itself and its successors and assigns, agrees, that in the construction of the Project on the Property or other performance under this Agreement, Developer shall not discriminate against any employee or applicant for employment on any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 and Section 12955.2 of the Government Code. 9.12 Taxes and Assessments. After the Close of Escrow, Developer shall pay prior to delinquency all real estate taxes and assessments on the Property so long as Developer retains any interest therein. Developer shall remove or have removed any levy or attachment made on the Site or any part thereof, or assure the satisfaction thereof within a reasonable time but in any event prior to any sale or transfer of all or any portions thereof. Notwithstanding the above, Developer shall have the right to contest the validity or amounts of any tax, assessment, or encumbrance available to Developer in respect thereto, or obtain any available exemptions. 9.13 Right of Authority to Satisfy Other Liens on the Property(s). At any time prior to the completion of construction, and after Developer has had written notice and has failed after a reasonable time, but in any event not less than forty-five (45) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on the 458 882/015610-0040 9930825.4 a06/01/17 -41- Property which are not otherwise permitted under this Agreement, Authority shall have the right but no obligation to satisfy any such liens or encumbrances. Notwithstanding the above, Developer shall have the right to contest the validity or amounts of any liens or encumbrance available to Developer in respect thereto. 9.14 Non-liability of Authority. Developer acknowledges and agrees that: (a) Authority neither undertakes nor assumes any responsibility to review, inspect, supervise, approve (other than for aesthetics) or inform Developer of any matter in connection with the development of the Project, including matters relating to: (i) contractors, subcontractors and materialmen, or the workmanship of or materials used by any of them, and/or (ii) the progress of the Project and its conformity with the Final Construction Documents; and Developer shall rely entirely on its own judgment with respect to such matters and acknowledge that any review, inspection, supervision, approval or information supplied to Developer by Authority in connection with such matters is solely for the protection of Authority and that neither Developer nor any third party is entitled to rely on it; (b) Authority is not a partner, joint venturer, alter-ego, manager, controlling person or other business associate or participant of any kind of Developer and Authority does not intend to ever assume any such status; and Authority shall not be deemed responsible for or a participant in any acts, omissions or decisions of Developer; (c) Authority shall not be directly or indirectly liable or responsible for any loss or injury of any kind to any person or property resulting from any construction on, or occupancy or use of, the Property whether arising from: (i) any defect in any building, grading, landscaping or other onsite or offsite improvement; (ii) any act or omission of Developer or any of Developer’s agents, employees, contractors, licensees or invitees; or (iii) from and after the Close of Escrow any accident on the Property or any fire or other casualty or hazard thereon not caused by the Indemnitees; and (d) By accepting or approving anything required to be performed or given to Authority under this Agreement, including any certificate, financial statement, survey, appraisal or insurance policy, Authority shall not be deemed to have warranted or represented the sufficiency or legal effect of the same, and no such acceptance or approval shall constitute a warranty or representation by Authority to anyone. 9.15 Release of Construction Covenants. Promptly after completion of construction of the Project by Developer in conformity with this Agreement, Authority shall furnish Developer with a Release of Construction Covenants upon written request therefor by Developer. Authority shall not unreasonably withhold such Release of Construction Covenants. Such Release of Construction Covenants shall be a conclusive determination of satisfactory completion of the construction required by this 459 882/015610-0040 9930825.4 a06/01/17 -42- Agreement and the Release of Construction Covenants shall so state. The Release of Construction Covenants shall be in the form attached hereto as Attachment No. 19 or such other similar form as to permit it to be recorded in the Official Records. If Authority refuses or fails to furnish a Release of Construction Covenants for the Project after written request from Developer, Authority shall, within fifteen (15) days of written request therefor, provide Developer with a written statement of the reasons Authority refused or failed to furnish the requested Release of Construction Covenants. The statement shall also contain Authority’s opinion of the actions Developer must take to obtain the Release of Construction Covenants. If the reason for such refusal is confined to the immediate unavailability of specific items of materials for landscaping or other minor “punch list” items, Authority shall issue its Release of Construction Covenants upon the posting of cash, a bond, or other security acceptable to Authority in Authority’s sole discretion by Developer with Authority in an amount representing the fair value of the work not yet completed, and Developer shall thereafter complete the “punch list” work with reasonable diligence and in no event later than sixty (60) days after Authority’s issuance of the Release of Construction Covenants. A Release of Construction Covenants shall not constitute evidence of compliance with or satisfaction of any obligation of Developer to any holder of any mortgage or any insurer of a mortgage securing money loaned to finance the improvements, or any part of this Agreement, or a release of any obligations under this Agreement which survives issuance of the Release of Construction Covenants. A Release of Construction Covenants is not a notice of completion as referred to in the California Civil Code Section 3093. 10. AFFORDABILITY COVENANTS As more particularly provided in the Authority Regulatory Agreement, for a period of fifty-five (55) years, (i) twenty-four (24) of the dwelling units in the Project shall be rented to households whose incomes do not exceed the qualifying limits under California law for “extremely low income households,” as established by HUD, and as published periodically by HCD; (ii) fifty (50) of the dwelling units in the Project shall be rented to households whose incomes do not exceed forty percent (40%) of the area median income for Riverside County, as established by HUD, and as published periodically by HCD; (iii) sixty (60) of the dwelling units in the Project shall be rented to households whose incomes do not exceed the qualifying limits under California law for “very low income households,” as established by HUD, and as published periodically by HCD; and (iv) four (4) of the dwelling units in the Project shall be rented to households whose incomes do not exceed sixty percent (60%) of the area median income for Riverside County, as established by HUD, and as published periodically by HCD, with all of such dwelling units rented at an affordable rent, pursuant to Health and Safety Code Section 50053(b). The remaining two (2) of the dwelling units at the Project shall be occupied by management and maintenance staff for the Project whose incomes do not exceed the qualifying limits under California law for “moderate income households” as established by HUD, and as published periodically by HCD. 460 882/015610-0040 9930825.4 a06/01/17 -43- 11. GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS 11.1 Developer’s Formation, Qualification and Compliance. Developer represents and warrants that (a) it is validly existing and in good standing under the laws of the State of California, (b) it has all requisite authority to conduct its business and own and lease its properties, (c) it has all requisite authority to execute and perform its obligations under this Agreement, (d) this Agreement is binding upon Developer in accordance with its terms, and (e) the individuals executing this Agreement on behalf of Developer are duly authorized to execute and deliver this Agreement on behalf of Developer. 11.2 Litigation. Developer represents and warrants that there are no actions, lawsuits or proceedings pending or, to the best of Developer’s knowledge, threatened against or affecting Developer, the adverse outcome of which could have a material adverse effect on Developer’s ability to perform its obligations under this Agreement. 11.3 Authority. Authority represents and warrants that (a) it is validly existing and in good standing under the laws of the State of California, (b) it has all requisite authority to conduct its business and own and lease its properties, (c) it has all requisite authority to execute and perform its obligations under this Agreement, (d) this Agreement is binding upon Authority in accordance with its terms, and (e) the individuals executing this Agreement on behalf of Authority are duly authorized to execute and deliver this Agreement on behalf of Authority. 12. DEFAULTS AND REMEDIES 12.1 Event of Default. Any of the following events or occurrences with respect to either party shall constitute a material breach of this Agreement and, after the expiration of any applicable cure period, shall constitute an “Event of Default” by such party: (a) The failure by either party to pay any amount in full when it is due under this Agreement, if the failure has continued for a period of ten (10) days after the party entitled to payment demands in writing that the other party cure that failure. (b) The failure by either party to perform any other obligation under this Agreement, if the failure has continued for a period of thirty (30) days after demand in writing that such party cure the failure, or such shorter time period as may be provided for in one of the other Project Documents. If, however, by its nature the failure cannot reasonably be cured within said time period, such party may have such longer period of time as is reasonably necessary to cure the failure, provided that such party commences said cure within said thirty (30) day period, and thereafter diligently prosecutes said cure to completion. 12.2 No Waiver. Except as otherwise expressly provided in this Agreement, any failure or delay by either party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default, or of any such rights or remedies, or 461 882/015610-0040 9930825.4 a06/01/17 -44- deprive any such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 12.3 Legal Actions. (a) Specific Performance. The non-defaulting party, upon expiration of applicable notice and cure periods, shall be permitted, but not obligated, to commence an action for specific performance of the terms of this Agreement, or to cure, correct or remedy any default hereunder or to obtain any other legal or equitable remedy consistent with the purpose of this Agreement. In this regard, Developer specifically acknowledges that Authority is entering into this Agreement for the purpose of assisting in the redevelopment of the Property and the provision of affordable housing and not for the purpose of enabling Developer to speculate in land. Authority shall also have the right to pursue damages for Developer’s defaults but in no event shall Developer be entitled to damages of any kind from Authority, including, without limitation, damages for economic loss, lost profits, or any other economic or consequential damages of any kind. The foregoing sentence shall not affect the right of the Developer to receive attorney’s fees pursuant to Section 12.3(c) below. (b) Institution of Legal Actions. Any legal actions must be instituted in the Superior Court of the County of Riverside, State of California, or in the Federal District Court in the Central District of California. (c) Attorney’s Fees. If either party to this Agreement is required to initiate or defend litigation in any way connected with this Agreement, the prevailing party in such litigation, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees. If either party to this Agreement is required to initiate or defend litigation with a third party because of the violation of any term or provision of this Agreement by the other party, then the party so litigating shall be entitled to reasonable attorneys’ fees from the other party to this Agreement. Attorneys’ fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, retaining expert witnesses, taking depositions and discovery, and all other necessary costs incurred with respect to such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. (d) Applicable Law. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement, without regard to conflict of law principles. (e) Acceptance of Service of Process. (i) In the event that any legal action is commenced by the Developer against Authority, service of process on Authority shall be 462 882/015610-0040 9930825.4 a06/01/17 -45- made by personal service upon the Executive Director or in such other manner as may be provided by law. (ii) In the event that any legal action is commenced by Authority against Developer, service of process on Developer shall be made by personal service upon any officer or director of Developer and shall be valid whether made within or without the State of California or in such other manner as may be provided by law. (f) Rights and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same time or different times, of any other rights or remedies for the same default or any other default by the other party. 12.4 Reimbursement of Authority. Within fifteen (15) days after its receipt of written demand from Authority, Developer shall reimburse Authority for all costs reasonably incurred by Authority (including the reasonable fees and expenses of attorneys, accountants, appraisers and other consultants) in connection with Authority enforcement of the Project Documents and all related matters, including, without limitation, the following: (a) Authority’s commencement of, appearance in, or defense of any action or proceeding purporting to affect the rights or obligations of the parties to any Project Document; and (b) all claims, demands, causes of action, liabilities, losses, and other costs against which any of the Indemnitees is indemnified under the Project Documents. Such reimbursement obligations shall bear interest from the date occurring fifteen (15) days after Authority makes written demand to Developer at the rate of ten percent (10%) per annum or the maximum legal rate, whichever is less. Such reimbursement obligations shall survive termination of this Agreement. 13. NOTICES All notices, consents, demands, approvals and other communications (the “Notices”) that are given pursuant to this Agreement shall be in writing to the appropriate party and shall be deemed to have been fully given when delivered, including personal delivery, delivery by reputable commercial delivery service that provides a receipt with the time and date of delivery, or if deposited in the United States mail, certified or registered, postage prepaid, within two (2) days after deposit. All Notices shall be addressed as follows: If to Developer: Coachella Valley Housing Coalition 45701 Monroe Street, Suite G Indio, California, 92201 Phone No.: ______________ Attention: _______________ 463 882/015610-0040 9930825.4 a06/01/17 -46- with a copy to: Gubb & Barshay LLP 505 14th Street, Suite 1050 Oakland, CA 94612 Phone No.: _____________________ Attention: Scott R. Barshay, Esq. If to Authority: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Phone No.: Attention: Executive Director with a copy to Rutan & Tucker, LLP 611 Anton, Suite 1400 Costa Mesa, CA 92626 Phone No.: 714-641-5100 Attention: William H. Ihrke, Esq. Addresses for notice may be changed from time to time by notice to the other party. Notwithstanding that Notices shall be deemed given when delivered, the non-receipt of any Notice as the result of a change of address of which the sending party was not notified shall be deemed receipt of such Notice. 14. ASSIGNMENT 14.1 Generally Prohibited. Except as otherwise expressly provided to the contrary in this Agreement, Developer shall not assign any of its rights or delegate any of its duties under this Agreement, nor shall any changes occur with respect to the ownership and/or control of Developer, including, without limitation, stock transfers, or transfers, sales or issuances of membership or ownership interests, or statutory conversions, without the prior written consent of the Executive Director, which consent may be withheld in his or her sole and absolute discretion. Any such assignment or delegation without such consent shall, at Authority’s option, be void. Notwithstanding the foregoing, however, (i) Developer may transfer and assign its rights and duties hereunder to a limited partnership in which Developer or an Affiliate of Developer is the general partner (the “Partnership”) without obtaining any consent, the Investor may be admitted to the Partnership as a Tax Credit limited partner without obtaining any consent, and the Investor may assign its interests as a Tax Credit limited partner to a subsequent reputable institutional investor without any consent; (ii) the Investor may remove the general partner for a default under the Partnership Agreement, provided the replacement general partner is reasonably acceptable to Authority; and (iii) Developer may grant to the general partner an option and right of first refusal to purchase the Project or the Investor’s limited partnership interest, and the general partner, or its Affiliate, may exercise such option or right of first refusal to acquire the Project or the limited partnership interest. For purposes of this Section 14.1, if the Investor transfers 464 882/015610-0040 9930825.4 a06/01/17 -47- to an entity in which the Investor or an Affiliate of the Investor is the managing general partner or managing member such transferee entity shall be deemed to be a “reputable institutional investor.” This Section 14.1 shall not be applicable to the leasing of individual dwelling units to income eligible households in accordance with the Authority Regulatory Agreement. 14.2 Release of Developer. Upon any such assignment made in compliance with Section 14.1 above which is evidenced by a written assignment and assumption agreement in a form approved by Authority’s counsel, the transferor shall be released from any liability under this Agreement arising from and after the effective date of such assignment. 15. ADMINISTRATION Following approval of this Agreement by Authority, this Agreement shall be administered and executed on behalf of Authority by the Executive Director. The Executive Director shall have the authority to issue interpretations, waive terms and conditions, enter into subordination agreements with public funding sources where the public funding source’s regulations require such subordination, or with other funding sources if such subordination agreements do not result in the subordination of the Authority Regulatory Agreement, and enter into amendments of this Agreement (including, without limitation, to the Schedule of Performance) on behalf of Authority provided that such actions do not substantially change the uses or development permitted on the Property or materially add to the costs or obligations or impair the rights or remedies of Authority provided herein. . All other waivers or amendments shall require the formal consent of the Board of Directors of Authority. 16. MISCELLANEOUS 16.1 Counterparts. This Agreement may be executed in counterparts, all of which, taken together, shall be deemed to be one and the same document. 16.2 Prior Agreements; Amendments. This Agreement contains the entire agreement between Authority and Developer with respect to the Project and the Property, and all prior negotiations, understandings and agreements are superseded by this Agreement. No modification of this Agreement (including waivers of rights and conditions) shall be effective unless in writing and signed by the party against whom enforcement of such modification is sought, and then only in the specific instance and for the specific purpose given. Authority agrees to consider in good faith making reasonable modifications to this Agreement that are necessary to finance the development of the Project. 16.3 Severability of Provisions. No provision of this Agreement that is held to be unenforceable or invalid shall affect the remaining provisions if and to the extent that the primary purposes of this Agreement can still be accomplished without materially impairing the rights or increasing the obligations or risks of each party, as reasonably 465 882/015610-0040 9930825.4 a06/01/17 -48- determined by that party, and to that extent all provisions of this Agreement are hereby declared to be severable. 16.4 Interpretation. Both parties have participated in the drafting of this Agreement and any ambiguities in this Agreement shall not be construed for or against either party on account of the authorship or presumed authorship hereof. Article and section headings are included in this Agreement for convenience of reference only and shall not be used in construing this Agreement. Any defined term used in the plural in this Agreement shall refer to all members of the relevant class and any defined term used in the singular shall refer to any of the members of the relevant class. References herein to Articles, Sections, and Attachments shall be construed as references to this Agreement unless a different document is named. References to subparagraphs shall be construed as references to the same Section in which the reference appears. The terms “including” and “include” mean “including (include) without limitation.” 16.5 Accounting Principles. Any accounting term used and not specifically defined in this Agreement shall be construed, and all financial data required to be submitted under this Agreement shall be prepared, in conformity with generally accepted accounting principles applied on a consistent basis or in accordance with such other principles or methods as are reasonably acceptable to Authority. 16.6 Attachments Incorporated. All attachments to this Agreement, as now existing and as the same may from time to time be modified, are incorporated herein by this reference. 16.7 Time of the Essence. Time is of the essence of this Agreement. 16.8 Warranty Against Payment of Consideration. Developer warrants that it has not paid or given, and will not pay or give, any third person any money or other consideration for obtaining this Agreement. 16.9 Non-liability of Authority Officials and Employees. No member, director, officer, employee, or volunteer of Authority shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by Authority or for any amount which may become due to Developer or successor, or on any obligation under the terms of this Agreement. 16.10 Force Majeure. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God or other deities; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; litigation beyond the reasonable control of a party; unusually severe weather; inability, despite commercially reasonable efforts, to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplier beyond the reasonable control of a party; acts of the other party; acts or the failure to act of any public or governmental entity (except that acts or the failure to act of Authority shall not excuse performance by Authority); or any other 466 882/015610-0040 9930825.4 a06/01/17 -49- acts or causes beyond the reasonable control of the party claiming an extension of time to perform. An extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Force Majeure shall serve also to extend the time by which any condition, for the benefit of either party, shall be satisfied under this Agreement. Notwithstanding any provision of this Agreement to the contrary, in no event shall adverse market conditions, interest rates, the lack of funding or difficulty obtaining the financing necessary to complete the Project constitute grounds of enforced delay pursuant to this Section. 16.11 Nondiscrimination Covenants. Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. The foregoing covenants shall run with the land. Developer shall refrain from restricting the rental, sale or lease of the Property on any of the bases listed above in this Section 16.11. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (a) In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” (b) In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: 467 882/015610-0040 9930825.4 a06/01/17 -50- “That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.” (c) In contracts: “There shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises which are the subject of this Agreement, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” The covenants established in this Section 16.11 shall, without regard to technical classification and designation, be binding for the benefit and in favor of Authority and its successors and assigns, and shall remain in effect in perpetuity. 16.12 Consents and Approvals. Unless otherwise expressly set forth in this Agreement, any consents or approvals to be given by a party under this Agreement shall not be unreasonably withheld, conditioned or delayed. 16.13 Third Party Beneficiary. The City is an intended third party beneficiary of this Agreement and shall have the right, but not the obligation, to enforce its terms including the rights and benefits that Authority has under this Agreement. Except as provided in this Section 16.13, no person or entity other than Authority, Developer, and the City, and the permitted successors and assigns of each of them, shall be authorized to enforce the provisions of this Agreement. [End of Agreement – Signature page follows] 468 882/015610-0040 9930825.4 a06/01/17 -51- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed. “Authority” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director ATTEST: __________________________ Susan Maysels, City Clerk APPROVED AS TO FORM: RUTAN & TUCKER, LLP ___________________________ William H. Ihrke, City Attorney “Developer” COACHELLA VALLEY HOUSING COALITION, a California nonprofit public benefit corporation By: Its: 469 882/015610-0040 9930825.4 a06/01/17 -52- ATTACHMENTS 1 - Legal Description and Depiction of the Property 2 - Site Plan 3 - Schedule of Performance 4 - Scope of Development 5 - Form of Grant Deed 6 - Form of Warranty Bill of Sale 7 - Form of Assignment of Leases 8 - Form of Non-Foreign Affidavit 9 - Form of Assignment of Contracts, Permits, Intangible Personal Property, Warranties, and Guaranties (to Developer) 10 - Form of Assignment of Contracts, Permits, Intangible Personal Property, Warranties, and Guaranties (to Authority) 11 - Form of Notice to Tenants 12 - Lead-Based Paint Disclosure and Acknowledgement 13 - Form of Disbursement Request 14A - Form of Authority Note (Plans) 14B Form of Authority Note (Property and Construction) 15A - Form of Authority Deed of Trust (Plans) 15B Form of Authority Deed of Trust (Property and Construction) 16 - Project Budget 17 - Form of Authority Regulatory Agreement 18 - Form of Notice of Affordability 19 - Form of Release of Construction Covenants 470 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 1A ATTACHMENT NO. 1A LEGAL DESCRIPTION OF PROPERTY All that certain real property situated in the County of Riverside, State of California, described as follows: Parcel A: (Assessor’s Parcel No: 609-040-007, 023) Parcel 1 of that certain Certificate of Compliance No. COC 2008-026 in the City of La Quinta, County of Riverside, State of California, recorded October 31, 2008 as Instrument No. 2008-0582811 of Official Records, described as follows: A portion of Parcel “A” of Lot Line Adjustment No. 5167, recorded October 15, 2007 as Instrument No. 2007-0636486, of Official Records County of Riverside, State of California, in the South half of the South half of the Northwest Quarter of Section 18, Township 5 South, Range 7 East, of the San Bernardino Base and Meridian, in the City of La Quinta, County or Riverside, State of California, being more particularly described as follows: Commencing at the West one-quarter corner of Section 18, Township 5 South, Range 7 East of the San Bernardino Base and Meridian, County of Riverside, State of California, said point being on the centerline of Washington Street; thence North 89°39'27" East along the East – West one-quarter Section line of said Section 18, a distance of 40.00 feet to the Southwest corner of Parcel “A” of Lot Line Adjustment No. 5167, recorded October 15, 2007 as Instrument No. 2007-0636486 of Official Records County of Riverside State of California, and the Easterly line of said Washington Street, said point being 40.00 feet Easterly of the centerline of said Washington Street, as measured at right angles thereto; thence North 00°08'34" East along the Easterly line of said Washington Street and the Westerly line of Parcel “A” of said Lot Line Adjustment No. 5167, a distance of 133.75 feet to the true point of beginning; Thence North 00°08'34" East continuing along the Easterly line of said Washington Street and the Westerly line of Parcel “A” of said Lot Line Adjustment No. 5167, a distance of 530.32 feet to the Northwest corner of Parcel “A” of said Lot Line Adjustment No. 5167, and the centerline of Hidden River Road; Thence North 89°34'27" East along the centerline of said Hidden River Road and the Northerly line of Parcel “A” of said Lot Line Adjustment No. 5167, a distance of 435.29 feet; Thence South 00°08'34" West along the Easterly line of Parcel “A” of said Lot Line Adjustment No. 5167, a distance of 400.32 feet to the Northerly line of Parcel “A” of said Lot Line Adjustment No. 5167 and the Southerly line of Parcel 2 of Parcel Map No. 12323, filed in Parcel Map Book 56, Pages 27 and 28, of Official Records County of Riverside, State of California; 471 882/015610-0040 9930825.4 a06/01/17 -2- Thence South 89°34'27" West, a distance of 105.27 feet; Thence South 00°08'34" West, a distance of 130.01 feet; Thence South 89°34'27" West, a distance of 330.03 feet to the point of beginning. 472 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 1B ATTACHMENT NO. 1B LEGAL DESCRIPTION OF PROPERTY All that certain real property situated in the County of Riverside, State of California, described as follows: Parcel B: (Assessor’s Parcel No: 609-040-028) Parcel 2 of that certain Certificate of Compliance No. COC 2008-026 in the City of La Quinta, County of Riverside, State of California, recorded October 31, 2008 as Instrument No. 2008-0582811 of Official Records, described as follows: A portion of Parcel “A” of Lot Line Adjustment No. 5167, recorded October 15, 2007 as Instrument No. 2007-0636486 of Official Records County of Riverside, State of California, said point conveyed as Parcel B to the La Quinta Redevelopment Agency, a public body corporate and politic, by deed recorded October 15, 2007 as Instrument No. 2007-0636489 of Official Records, County of Riverside, State of California, in the South half of the South half of the Northwest Quarter of Section 18, Township 5 South, Range 7 East of the San Bernardino Meridian, in the City of La Quinta, County of Riverside, State of California, being more particularly described as follows: Commencing at the West one-quarter corner of Section 18, Township 5 South, Range 7 East, of the San Bernardino Base and Meridian, County of Riverside, State of California, said point being on the centerline of Washington Street; thence North 89°39'27" East along the East – West one-quarter Section line of said Section 18, a distance of 40.00 feet to the Southwest corner of Parcel A of Lot Line Adjustment No. 5167, recorded October 15, 2007 as Instrument No. 2007-0636486, of Official Records County of Riverside, State of California, and the Easterly line of said Washington Street, said point being 40.00 feet Easterly of the centerline of said Washington Street, as measured at right angles thereto, being also the true point of beginning; Thence North 00°08'34" East along the Easterly line of said Washington Street and the Westerly line of Parcel A of said Lot Line Adjustment No. 5167, a distance of 133.75 feet; Thence North 89°34'27" East, a distance of 330.03 feet; Thence North 00°08'34" East, a distance of 130.01 feet; Thence North 89°34'27' East a distance of 105.27 feet to an angle point in the Northerly line of Parcel A of said Lot Line Adjustment No. 5167, said point being also on the Southerly line of Parcel 2 of Parcel Map No. 12323, filed in Parcel Map Book 56, Pages 27 and 28 of Official Records County of Riverside, State of California; 473 882/015610-0040 9930825.4 a06/01/17 -2- Thence North 89°34'27" East continuing along the Northerly line of Parcel A of said Lot Line Adjustment No. 5167 and the Southerly line of Parcels 2 and 3 of said Parcel Map No. 12323, a distance of 849.27 feet to the Northerly corner common to Parcels A and B of said Lot Line Adjustment No. 5167; Thence South 00°20'33" East along the common line between Parcels A and B of said Lot Line Adjustment No. 5167, a distance of 265.62 feet to the Southerly corner common to Parcels A and B of said Lot Line Adjustment No. 5167 and the East – West one-quarter Section line of said Section 18; Thence South 89°39'27" West along the East – West one-quarter Section line of said Section 18 and the Southerly line of Parcel A of said Lot Line Adjustment No. 5167, a distance of 1286.80 feet to the point of beginning. . 474 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 2 ATTACHMENT NO. 2 SITE PLAN 475 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 3 ATTACHMENT NO. 3 SCHEDULE OF PERFORMANCE Task/Event Time for Performance 1. Developer submits application to TCAC for Tax Credits By application deadline for first round following Effective Date. 2. Developer submits to Authority preliminary commitment for the Project Financing. 3. Developer submits to Authority Evidence of Financing Commitments. 4. Developer submits second application to TCAC for Tax Credits if Developer is unsuccessful in first round of applications. By application deadline for second round following Effective Date. 5. Developer submits third application to TCAC for Tax Credits if Developer is unsuccessful in second round of applications By application deadline for third round following Effective Date. 6. Developer and Authority open Escrow. Within five (5) days after Developer obtains allocation of Tax Credits. 7. Developer causes the conditions set forth in Section 7.2 to be satisfied and the Close of Escrow occurs. Upon satisfaction of the conditions set forth in Section 7.2, but not later than the Outside Closing Date. 8. Developer commences construction of Project. Within 30 days after the Close of Escrow. 9. Developer submits to and obtains approval from Authority for Marketing Plan and Management Agreement in compliance with Section 7 of Authority Regulatory Agreement. Not later than twelve (12) months after Close of Escrow, and prior to completion of construction of Project. 10. Developer completes construction of Project. Within 24 months after commencement of construction. 11. Developer commences leasing the dwelling units Within 15 days after completion of construction. 476 882/015610-0040 9930825.4 a06/01/17 -2- 12. Developer completes leasing of all dwelling units. Not later than three months after completion of construction. It is expressly understood and agreed by the Parties that the foregoing schedule of performance is subject to all of the terms and conditions set forth in the text of the Agreement including, without limitation, extension due to Force Majeure. Times of performance under the Agreement may be extended by request of any Party memorialized by a mutual written agreement between the Parties, which agreement may be granted or denied in the non-requesting Party’s sole and absolute discretion. 477 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 4 ATTACHMENT NO. 4 SCOPE OF DEVELOPMENT The Project, located on approximately 11.5 acres, will include the substantial rehabilitation of all existing units, the construction of 68 new units, the construction of 2 new community buildings, laundry facilities, a health center, and 2 swimming pools. The construction of the improvements is wood frame with color stucco walls and flat roofs constructed on concrete slab foundations. Formal outdoor recreation areas include roughly 2 acres of parkway/green belt for recreation and social gatherings, a dog park, and two swimming pools. Ample space and free flowing paths provide opportunities for informal social interactions. The Project will be constructed per the plans and specifications developed by Studio E Architects Inc. and consistent with the following Project entitlements, issued by the City of La Quinta: SDP 2015-003 and SDP 2016-0002. 478 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 5 ATTACHMENT NO. 5 FORM OF GRANT DEED [See following document] 479 882/015610-0040 9930825.4 a06/01/17 -1- RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Coachella Valley Housing Coalition 45701 Monroe Street, Suite G Indio, California, 92201 AND ALL TAX STATEMENTS TO: SAME AS ABOVE [SPACE ABOVE THIS LINE FOR RECORDER’S USE] [EXEMPT FROM RECORDER’S FEE PURSUANT TO GOVERNMENT CODE SECTION 27383] DOCUMENTARY TRANSFER TAX $___________________ Computed on the consideration of the full value of property conveyed. GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Grantor”), hereby grants to ___________________________, a California limited partnership (“Grantee”), the real property located in the City of La Quinta, County of Riverside, State of California, described on Exhibit 1 attached hereto and made a part hereof (the “Property”), with all improvements thereon, subject to all matters of record and subject to the following: Grantee, on behalf of itself and its successors and assigns to all or any portion of the Property, covenants and agrees as follows: 1. Nondiscrimination Covenants. That there shall be no discrimination against or segregation of any person, or group of persons on any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any part thereof, nor shall Grantee, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property, or any part thereof. The foregoing covenants shall run with the land. 2. Nondiscrimination Clauses in Agreements. Grantee agrees for itself and any successor in interest that Grantee shall refrain from restricting the rental, sale, or lease of any portion of the Property, or contracts relating to the Property, on the basis of 480 882/015610-0040 9930825.4 a06/01/17 -2- race, color, creed, religion, sex, marital status, ancestry, or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: i. In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” ii. In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: “That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.” iii. In contracts relating to the sale, transfer, or leasing of the land or any interest therein: “There shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises which are the subject of this agreement, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” The foregoing nondiscrimination covenants shall remain in effect in perpetuity. 481 882/015610-0040 9930825.4 a06/01/17 -3- [Signatures on next page] 482 882/015610-0040 9930825.4 a06/01/17 -4- Date: GRANTOR: LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director ATTEST: By: Susan Maysels, City Clerk APPROVED AS TO FORM: RUTAN &TUCKER, LLP William H. Ihrke, City Attorney Date: GRANTEE: _________________________________, a California limited partnershp By: Its: 483 882/015610-0040 9930825.4 a06/01/17 -5- 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 _________________________, before me, , (insert name and title of the officer) 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 (Seal) 484 882/015610-0040 9930825.4 a06/01/17 -6- 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 _________________________, before me, , (insert name and title of the officer) 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 (Seal) 485 882/015610-0040 9930825.4 a06/01/17 -7- Exhibit 1 to Grant Deed Legal Description [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 486 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 6 ATTACHMENT NO. 6 FORM OF WARRANTY BILL OF SALE [See following document] 487 882/015610-0040 9930825.4 a06/01/17 -1- WARRANTY BILL OF SALE For good and valuable consideration, the receipt of which is hereby acknowledged, LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Seller”), does hereby sell, transfer and convey to __________________________, a California limited partnership (“Buyer”), all personal property of Seller described in Schedule No. 2 attached hereto which is located on and used in the operation, repair and maintenance of the real property described in Schedule No. 1 attached hereto, which personal property Seller warrants to be free and clear of all encumbrances. Seller does hereby covenant with Buyer that Seller is the lawful owner of such personal property, free and clear of all liens, encumbrances, security agreements and financing statements, that such personal property is owned and not leased by Seller and that Seller has good right to sell the same as aforesaid and will warrant and defend the title thereto unto Buyer, its successors and assigns, against the claims and demands of all persons. Dated this _____ day of ____________, 20__ “SELLER” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director 488 882/015610-0040 9930825.4 a06/01/17 -2- SCHEDULE NO. 1 LEGAL DESCRIPTION OF REAL PROPERTY THAT CERTAIN REAL PROPERTY SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF LA QUINTA, AND DESCRIBED AS FOLLOWS: [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 489 882/015610-0040 9930825.4 a06/01/17 -3- SCHEDULE NO. 2 LIST OF PERSONAL PROPERTY Individual Apartments (72 Tenants + Manager) 72 - 40 gallon water heaters 1 - 83 gallon water heater 73 Refrigerators 73 air conditioning units 73 gas stoves 1 GE washer (mgr) 1 GE dryer (mgr) On-Site Office 1 office desk 1 - 4 drawer filing cabinet 1 - 2 drawer filing cabinet 1 Cannon copier 1 HP Laserjet 1200 printer 1 Brother fax machine 1 Dell Computer + monitor/keyboard 2 office guest chairs 1 office chair w/wheels 1 shredder 1 Cannon calculator 1 AT&T answering machine 1 V-tech phone Miscellaneous office supplies Common Area/Grounds 2 outdoor benches 3 plastic chairs 4 picnic tables 2 cigarette ash cans Recreation Room 1 air conditioning unit 1 Refrigerator 4 round tables 16 club chairs 1 computer desk 1 E-machine computer + monitor/keyboard 2 office guest chairs 1 RCA flat screen T.V. 1 large wooden clock 2 easy chairs 2 sofas 1 stereo 490 882/015610-0040 9930825.4 a06/01/17 -4- 6 conference room chairs 2 coffee tables 1 microwave 1 coffee maker 1 supply cabinet Workshop/Garage Storage 1 swamp cooler 1 portable swamp cooler 1 portable air conditioning unit 1 Hampton Bay window A/C unit 1 Porter 25 gallon air compressor with hose (135 PSI) 3 Rainbird sprinkler controls 1 Refrigerator (used for parts) Miscellaneous tools & maintenance inventory 2 air conditioning units in stock for emergency installation use 491 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 7 ATTACHMENT NO. 7 FORM OF ASSIGNMENT OF LEASES [See following document] 492 882/015610-0040 9930825.4 a06/01/17 -1- ASSIGNMENT OF TENANT LEASES This ASSIGNMENT OF TENANT LEASES (“Assignment”) is made as of ___________, 20__, by and between LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Assignor”), and _____________________________, a California limited partner (“Assignee”). R E C I T A L S: A. Concurrently with the delivery of this Assignment, Assignor has conveyed to Assignee and Assignee has acquired from Assignor a fee simple estate in and to certain real property located in the County of Riverside, State of California, more particularly described in Appendix No. 1 attached hereto (the “Real Property”) pursuant to that certain Affordable Housing and Property Disposition Agreement dated _______________, 2017 (the “AHPDA”). B. Pursuant to the AHPDA, Assignor is to assign to Assignee and Assignee is to assume certain rights and obligations under those certain leases affecting the Property as amended or modified (collectively, the “Tenant Leases”), which Tenant Leases are more particularly described in Appendix No. 2 attached hereto and incorporated herein by this reference. NOW, THEREFORE, Assignor and Assignee agree as follows: ARTICLE I ASSIGNMENT OF TENANT LEASES 1.1 Assignment. Assignor hereby assigns to Assignee all of Assignor’s right, title and interest in and to all Tenant Leases affecting the Property as of the Effective Date, including, but not limited to, all security and other deposits and prepaid rents paid thereunder (hereafter defined). 1.2 Assumption. Assignee hereby accepts the foregoing assignment, assumes the Tenant Leases and agrees to timely keep, perform and discharge all of the obligations of the lessor under the Tenant Leases that accrue from and after the Effective Date hereof. 1.3 Indemnification. Assignor shall indemnify, protect, defend and hold Assignee harmless from all losses, damages, claims, liabilities, demands, costs, offset rights and expenses, including, without limitation, attorneys’ fees arising out of any failure of Assignor to keep, perform and discharge all of the obligations of landlord under the Tenant Leases prior to the Effective Date. Assignee shall indemnify, protect, defend and hold Assignor harmless from all losses, demands, damages, claims, liabilities, demands, costs, expenses and offset rights, including, without limitation, attorneys’ fees arising out of any failure of Assignee to so keep, perform and discharge 493 882/015610-0040 9930825.4 a06/01/17 -2- all of the obligations of the lessor under the Tenant Leases that accrue from and after the Effective Date. 1.4 Effective Date. The “Effective Date” of this Assignment shall be the date that Assignee acquires the Real Property. 1.5 Consistency with AHPDA. Nothing in this Assignment shall be construed to modify or limit any provisions of the AHPDA and in the event of any inconsistency between this Assignment and the AHPDA, the AHPDA shall control. ARTICLE II MISCELLANEOUS 2.1 Attorneys’ Fees. In the event of any action between Assignor and Assignee seeking enforcement of any of the terms and conditions to this Assignment, the prevailing party in such action, whether by fixed judgment or settlement, shall be entitled to recover, in addition to damages, injunctive or other relief, its actual costs and expenses, including, but not limited to, actual attorneys’ fees, court costs and expert witness fees. Such costs shall include attorneys’ fees, costs and expenses incurred in (a) post-judgment motions, (b) contempt proceedings, (c) garnishment, levy and debtor and third-party examination, (d) discovery, and (e) bankruptcy litigation. 2.2 Inurement. This Assignment shall inure to the benefit of Assignor and Assignee, and their respective heirs, assigns and successors in interest. 2.3 Counterparts. This Assignment may be signed by the parties in different counterparts and the signature pages combined to create a document binding on all parties. 2.4 Governing Law. This Assignment shall be governed by and construed in accordance with the internal laws of the State of California without regard to conflicts of law. [end – signatures on next page] 494 882/015610-0040 9930825.4 a06/01/17 -3- IN WITNESS WHEREOF, the parties have executed this Assignment as of the day and year first above written to be effective as of the Effective Date defined in Paragraph 1.4 hereof. “ASSIGNOR” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director “ASSIGNEE” _______________________________, a California limited partnership By: Its: ATTEST: Authority Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP By:_______________________________ Authority Counsel 495 882/015610-0040 9930825.4 a06/01/17 -4- APPENDIX NO. 1 LEGAL DESCRIPTION OF REAL PROPERTY THAT CERTAIN REAL PROPERTY SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF LA QUINTA, AND DESCRIBED AS FOLLOWS: [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 496 882/015610-0040 9930825.4 a06/01/17 -5- APPENDIX NO. 2 SCHEDULE OF TENANT LEASES Seller shall prepare a list of the Tenant Leases affecting the Real Property including any amendments or modifications thereto and all security and other deposits and prepaid rents thereunder. Such list shall be inserted as Appendix No. 2 to the Assignment prior to its execution. 497 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 8 ATTACHMENT NO. 8 FORM OF NON-FOREIGN AFFIDAVIT [See following document] 498 882/015610-0040 9930825.4 a06/01/17 -1- NON-FOREIGN AFFIDAVIT Section 1445 of the Internal Revenue Code provides that the transferee of an interest in real property located in the United States must withhold tax if the transferor is a foreign person. To inform Buyer, ______________________________, a California limited partnership (“Transferee”), that withholding of tax is not required upon the sale by LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Transferor”), of its fee simple interest in that certain real property sold pursuant to the Affordable Housing and Property Disposition Agreement dated _____________, 2017, which real property is described in Attachment No. 1, attached hereto and made a part hereof, the undersigned hereby certifies the following: 1. The Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and the income tax regulations promulgated thereunder); 2. The Transferor’s United States Taxpayer Identification Number is ___________ ________________________; 3. The Transferor’s office address is 78 -495 Calle Tampico, La Quinta, California 92253; and 4. The Internal Revenue Service has not issued any notice with respect to Transferor or listed Transferor as a person whose affidavit may not be relied upon for purposes of Section 1445 of the Internal Revenue Code. The Transferor understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment or both. [continued on next page] 499 882/015610-0040 9930825.4 a06/01/17 -2- Under penalty of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I am the Executive Director of the La Quinta Housing Authority and that I have authority to sign this document on behalf of the Transferor. Date: “TRANSFEROR” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director 500 882/015610-0040 9930825.4 a06/01/17 -3- ATTACHMENT NO. 1 LEGAL DESCRIPTION OF REAL PROPERTY THAT CERTAIN REAL PROPERTY SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF LA QUINTA, AND DESCRIBED AS FOLLOWS: [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 501 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 9 ATTACHMENT NO. 9 FORM OF ASSIGNMENT OF CONTRACTS, PERMITS, INTANGIBLE PERSONAL PROPERTY, WARRANTIES, AND GUARANTIES [See following document] 502 882/015610-0040 9930825.4 a06/01/17 -1- ASSIGNMENT OF CONTRACTS, PERMITS, INTANGIBLE PERSONAL PROPERTY, WARRANTIES AND GUARANTIES This ASSIGNMENT OF CONTRACTS, PERMITS, INTANGIBLE PERSONAL PROPERTY, WARRANTIES AND GUARANTIES (“Assignment”) is made and entered into this ____ day of ___________, 20__, by and between LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Assignor”), and _________________________________, a California limited partnership (“Assignee”). R E C I T A L S: This Assignment is made with reference to the following facts and intentions of the parties: A. Concurrently with the delivery of this Assignment, Assignor has conveyed to Assignee and Assignee has acquired from Assignor a fee simple estate in and to certain real property located in the County of Riverside, State of California, more particularly described in Schedule No. 1 attached hereto (the “Real Property”) pursuant to that certain Affordable Housing and Property Disposition Agreement dated _______________,2017 (the “AHPDA”). B. Assignor, in connection with the orderly operation of the Real Property, has entered into certain labor service, supply maintenance, landscape, property management, leasing, insurance and other contracts, copies of which have been given to and approved by Assignee (the Assignor Operating Contracts”). Assignor, in connection with the preparation of engineering and architectural plans and drawings, has entered into certain design and engineering contracts, copies of which have been given to and approved by Assignee (the “Assignor Design and Engineering Contracts”) In accordance with the terms and conditions of the AHPDA, Assignor has agreed to assign to Assignee and Assignee has agreed to accept the assignment of all Assignor Design and Engineering Contracts, and all Assignor Operating Contracts which Assignee elects to assume. A schedule of all such contracts are attached hereto as Schedule No. 2 (collectively, “Contracts”). C. Assignor is the owner of or holder of certain permits, licenses, plans and specifications and certificates of occupancy relating to the Real Property (collectively, “Permits”) including but not limited to those permits, licenses, plans and specifications and certificates of occupancy set forth in the schedule attached hereto as Schedule No. 3. D. Assignor is the owner and possessor of certain trade names, logos, signs, trademarks, styles, telephone listings and numbers, manuals, lists of prospective tenants, advertising materials, all plans and specifications, specifications relating to the improvements and fixtures located on the Real Property, including all working drawings and “as-built” drawings and all reports and studies relating to the Property (as defined in the AHPDA) and similar items included within, related to or otherwise pertaining to the Property (collectively, “Intangible Personal Property”), including but not limited to the 503 882/015610-0040 9930825.4 a06/01/17 -2- Intangible Personal Property set forth in the schedule attached hereto as Schedule No. 4. E. Assignor is the owner or holder of certain warranties and guaranties now in effect with respect to the Property (collectively, “Warranties and Guaranties”), including, but not limited to, the warranties and guaranties listed in the schedule set forth in Schedule No. 5 attached hereto. F. Pursuant to the terms of the APHDA, Assignor has agreed to assign to Assignee all of its right, title and interest in and to the Contracts, Permits, Intangible Personal Property and Warranties and Guaranties. NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the parties agree as follows: ARTICLE I ASSIGNMENT OF CONTRACTS, PERMITS, INTANGIBLE PERSONAL PROPERTY, WARRANTIES AND GUARANTIES 1.1 Assignment of Contracts. Assignor hereby assigns, transfers and conveys to Assignee all of Assignor’s right, title and interest in and to all of the Contracts set forth in Schedule No. 2, and Assignee accepts and agrees to assume the obligations of Assignor under the Contracts occurring after the Effective Date (as hereinafter defined). 1.2 Assignment of Permits, Intangible Personal Property, Warranties and Guaranties. As of the Effective Date, Assignor hereby assigns to Assignee all of Assignor’s right, title and interest in and to all Permits, Intangible Personal Property and Warranties and Guaranties relating to the Real Property, including, without limitation, those Permits, Intangible Personal Property and Warranties and Guaranties described in Schedule Nos. 3, 4, and 5, respectively. As of the Effective Date, Assignee hereby accepts the foregoing assignment of any and all Permits, Intangible Personal Property and Warranties and Guaranties now in effect with respect to the Property. 1.3 No Liability; Indemnification. This Assignment and its acceptance by Assignee shall not impose any liability on Assignee for any default by Assignor under the Contracts, Permits, Intangible Personal Property, and Warranties and Guaranties occurring prior to the Effective Date. Assignor shall indemnify, protect, defend and hold Assignee harmless from any and all losses, demands, damages, claims, liabilities, costs and expenses, including, but not limited to, attorneys’ fees arising out of or in connection with any default by Assignor under the Contracts, Permits, Intangible Personal Property, and Warranties and Guarantees occurring prior to the Effective Date. Assignee shall indemnify, protect, defend and hold Assignor harmless from any and all losses, damages, claims, liabilities, costs and expenses including, without limitation, attorneys’ fees, arising out of or in connection with any default by Assignee under the Contracts, Permits, Intangible Personal Property, and Warranties and Guarantees that occurs after the Effective Date. 504 882/015610-0040 9930825.4 a06/01/17 -3- 1.4 Effective Date. The “Effective Date” of this Assignment shall be the date that Assignee acquires fee simple interest in and to the Real Property described in Schedule No. 1 attached hereto pursuant to the AHPDA. 1.5 Consistency with AHPDA. Nothing in this Assignment shall be construed to modify or limit any provisions in the AHPDA and in the event of any inconsistency between this Assignment and the AHPDA, the latter shall govern and control. ARTICLE II MISCELLANEOUS 2.1 Attorneys’ Fees. In the event of any action between Assignor and Assignee seeking enforcement of any of the terms and conditions to this Assignment, the prevailing party in such action, whether by fixed judgment or settlement, shall be entitled to recover, in addition to damages, injunctive or other relief, its actual costs and expenses, including, but not limited to, actual attorneys’ fees, court costs and expert witness fees. Such costs shall include attorneys’ fees, costs and expenses incurred in (a) post-judgment motions, (b) contempt proceedings, (c) garnishment, levy and debtor and third-party examination, (d) discovery, and (e) bankruptcy litigation. 2.2 Inurement. This Assignment shall inure to the benefit of Assignor and Assignee, and their respective heirs, assigns and successors in interest. 2.3 Counterparts. This Assignment may be signed by the parties in different counterparts and the signature pages combined to create a document binding on all parties. 2.4 Governing Law. This Assignment shall be governed by and construed in accordance with the internal laws of the State of California without regard to conflicts of law. [end – signature page follows] 505 882/015610-0040 9930825.4 a06/01/17 -4- IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date first above written to be effective as of the Effective Date. “ASSIGNOR” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director “ASSIGNEE” ______________________________, a California limited partnership By: Its: ATTEST: Authority Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP By:_______________________________ Authority Counsel 506 882/015610-0040 9930825.4 a06/01/17 -5- SCHEDULE NO. 1 LEGAL DESCRIPTION OF REAL PROPERTY THAT CERTAIN REAL PROPERTY SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF LA QUINTA, AND DESCRIBED AS FOLLOWS: [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 507 882/015610-0040 9930825.4 a06/01/17 -6- SCHEDULE NO. 2 SCHEDULE OF CONTRACTS ASSIGNED Prior to execution of this document, Assignor shall provide a list of all Contracts and, from that list, Assignee shall prepare and insert a schedule of all of the Contracts it elects to assume pursuant to this Assignment prior to execution of this Assignment. 1. [PSA with STUDIO E ARCHITECTS] 2. [PSA with ALTUM GROUP, INC.] 3. [PSA with RGA LANDSCAPES ARCHITECTS, INC.] 508 882/015610-0040 9930825.4 a06/01/17 -7- SCHEDULE NO. 3 SCHEDULE OF PERMITS, LICENSES AND CERTIFICATES OF OCCUPANCY A list of any and all permits, licenses and certificates of occupancy in Assignor’s possession issued or obtained for the Property, or any part thereof, shall be prepared by Assignor and approved by Assignee and inserted herein prior to the execution of this Assignment. 509 882/015610-0040 9930825.4 a06/01/17 -8- SCHEDULE NO. 4 SCHEDULE OF INTANGIBLE PERSONAL PROPERTY A list of any and all Intangible Personal Property included within the Property shall be prepared by Assignor and approved by Assignee and inserted herein prior to execution of this Assignment. 510 882/015610-0040 9930825.4 a06/01/17 -9- SCHEDULE NO. 5 SCHEDULE OF WARRANTIES AND GUARANTIES Prior to execution of the Assignment, Assignor shall prepare a list to be approved by Assignee of any and all warranties and guaranties then in effect with respect to the Property conveyed to Assignee. 511 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 10 ATTACHMENT NO. 10 FORM OF ASSIGNMENT OF CONSTRUCTION CONTRACT [See following document] 512 882/015610-0040 9930825.4 a06/01/17 -1- ASSIGNMENT OF ARCHITECTURAL AGREEMENTS AND PLANS AND SPECIFICATIONS FOR VALUE RECEIVED, the undersigned, __________________ PARTNERS, L.P., a California limited partnership (“Developer”), assigns to LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Authority”), all of its right, title and interest in and to: 1. All architectural, design, engineering and development agreements, and any and all amendments, modifications, supplements, addenda and general conditions thereto (collectively, “Architectural Agreements”), and 2. All plans and specifications, blueprints, sketches, shop drawings, working drawings, landscape plans, utilities plans, soils reports, noise studies, environmental assessment reports, and grading plans, and all amendments, modifications, changes, supplements, general conditions and addenda thereto (collectively, “Plans and Specifications”), heretofore or hereafter entered into or prepared by any architect, engineer or other person or entity (collectively, “Architect”), for or on behalf of Developer in connection with the Real Property described on Exhibit “A” attached hereto. The Plans and Specifications, as of the date hereof, are those which Developer have heretofore, or will hereafter deliver to Authority. The Architectural Agreements include, but are not limited to, the architectural agreement or contract between __________ and ____________________, dated ________________. This ASSIGNMENT OF ARCHITECTURAL AGREEMENTS AND PLANS AND SPECIFICATIONS (“Assignment”) constitutes a present, absolute and unconditional assignment to Authority. Developer acknowledges that by accepting this Assignment, Authority does not assume any of Developer’s obligations under the Architectural Agreements with respect to the Plans and Specifications. Developer represents and warrants to Authority that: (a) no default by Developer, or event which would constitute a default by Developer after notice or the passage of time, or both, exists with respect to said Architectural Agreements, and (b) all copies of the Architectural Agreements and Plans and Specifications delivered to Authority are complete and correct. Developer has not assigned any of its rights under the Architectural Agreements or with respect to the Plans and Specifications. Notwithstanding the foregoing, this Assignment shall be subordinated to any assignment required to be made by Developer to the “Construction Lender” (as that term is defined in that certain Affordable Housing and Property Disposition Agreement entered into by and between Authority and Developer on or about ______, 2017 (the “AHPDA”)) at the close of the “Escrow” (as that term is defined in the AHPDA). This Assignment shall be governed by the laws of the State of California, except to the extent that federal laws preempt the laws of the State of California, and 513 882/015610-0040 9930825.4 a06/01/17 -2- Developer consents to the jurisdiction of any federal or state court within the State of California having proper venue for the filing and maintenance of any action arising hereunder and agrees that the prevailing party in any such action shall be entitled, in addition to any other recovery, to reasonable attorneys’ fees and costs. This Assignment shall be binding upon and inure to the benefit of the heirs, legal representatives, assigns, and successors-in-interest of Developer and Authority. The attached Architect’s/Engineer’s Consent and Exhibit “A” are incorporated by reference. Executed by __________ on ____________________, 2017. Date: , 2017 “Developer” __________________ PARTNERS, L.P., a California limited partnership By: ____________________ a ____________________ Its: General Partner Date:____________________, 2017 “Authority” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Executive Director ATTEST: Authority Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP ____________________________________ Authority Counsel 514 882/015610-0040 9930825.4 a06/01/17 -3- ARCHITECT’S/ENGINEER’S CONSENT The undersigned architect and/or engineer (collectively referred to as “Architect”) hereby consents to the foregoing Assignment to which this Architect’s/Engineer’s Consent (“Consent”) is a part, and acknowledges that there presently exists no unpaid claims due to the Architect/Engineer arising out of the preparation and delivery of the Plans and Specifications to ____________ and/or the performance of the Architect’s obligations under the Architectural Agreements described in the Assignment. Architect agrees that, by virtue of the foregoing Assignment, Authority has succeeded to all of ___________’s right, title and interest in, to and under the Architectural Agreements and the Plans and Specifications and, therefore, so long as the Architect continues to receive the compensation called for under the Architectural Agreements, Authority and its successors and assigns may, at their option, use and rely on the Plans and Specifications for the purposes for which they were prepared, and Architect will continue to perform its obligations under the Architectural Agreements for the benefit and account of Authority and its successors and assigns in the same manner as if performed for the benefit or account of _____________ in the absence of the Assignment. Architect warrants and presents that it/he has no knowledge of any prior assignment(s) of any interest in either the Plans and Specifications and/or the Architectural Agreements. Except as otherwise defined herein, the terms used herein shall have the meanings given them in the Assignment. Executed on _______________________, 2017. “Architect” ______________________________________, a ____________________________________ By: Name: Its: Architect’s Address: Phone No.: (_____) Fax No.: (_____) 515 882/015610-0040 9930825.4 a06/01/17 -4- EXHIBIT “A” PROPERTY DESCRIPTION 516 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 11 ATTACHMENT NO. 11 FORM OF NOTICE TO TENANTS [See following document] 517 882/015610-0040 9930825.4 a06/01/17 -1- NOTICE TO TENANTS TO: All Tenants of WASHINGTON STREET APARTMENTS (“Apartments”) Please be advised that the Apartments has, on the date hereof, been sold by the undersigned Seller to _______________________. All rent payments will continue to be made to the on-site manager, and will continue to be made payable to “Washington Street Apartments.” Your security deposit in the amount of $__________ has been assigned to the new owner who will be responsible for complying with the provisions of the California Civil Code with respect to return of the deposit. If you have any questions, notify: ________________________________ Dated: _______________, 20__ Date: “SELLER” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director 518 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 12 ATTACHMENT NO. 12 FORM OF LEAD-BASED PAINT DISCLOSURE AND ACKNOWLEDGEMENT [See following document] 519 882/015610-0040 9930825.4 a06/01/17 -1- LEAD-BASED PAINT DISCLOSURE AND ACKNOWLEDGMENT LEAD WARNING STATEMENT: Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint, paint chips and dust that may place young children at risk of developing lead poisoning. Lead can pose health hazards if not taken care of properly. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in pre-1978 residential real property, prior to the sale, is required to: (a) provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession; (b) notify the buyer of any known lead-based paint hazards; and (c) give the buyer a Federally approved pamphlet on lead poisoning prevention. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. SELLER’S DISCLOSURE (A) Presence of lead-based paint and lead-based paint hazards (check one below): o Known lead-based paint and/or lead-based paint hazards are present in the housing. (Explanation: o Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (B) Records and reports available to the seller (check one below): o Seller has provided the purchaser with all available records and reports pertaining to lead-based paint and/or lead-based paint hazardous in the housing. (List documents:) o Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing. 520 882/015610-0040 9930825.4 a06/01/17 -2- CERTIFICATION OF ACCURACY The undersigned has reviewed the information above and certifies, to the best of its knowledge, that the information provided by the signatory is true and accurate. Date: “SELLER” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director 521 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 13 ATTACHMENT NO. 13 FORM OF DISBURSEMENT REQUEST FORM [See following document] 522 882/015610-0040 9930825.4 a06/01/17 -1- DISBURSEMENT REQUEST FORM Property Address: __________________, La Quinta, California Disbursement No. _____________________________ The undersigned, on behalf of _____________________________, L.P., a California limited partnership (“Developer”), hereby requests a disbursement in the amount, and on the date, set forth below, pursuant to that certain Affordable Housing and Property Disposition Agreement (the “Agreement”) dated as of ___________, 201_, between LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Authority”), and COACHELLA VALLEY HOUSING COALITION, a California nonprofit public benefit corporation (“CVHC”), and assigned by CVHC to Developer. Capitalized terms used and not otherwise defined herein shall have the meanings set forth for them in the Agreement. REQUEST AMOUNT: _______________________ REQUEST DATE: _______________________ Developer hereby represents and warrants to Authority that: 1. The requested disbursement shall be applied to pay costs in accordance with the itemized Payment Request attached hereto. 2. All costs shown in all prior Disbursement Requests (and Payment Requests) have been paid in full, Developer has received valid lien releases or waivers from all contractors, subcontractors and materialmen with respect to all payments made for work and materials if the work or materials could give rise to a mechanic’s or a materialmen’s lien against the Property, and Developer has no knowledge of any mechanic’s lien claims against the Property. 3. The work is being performed in substantial conformance with the Scope of Development, and all applicable governmental requirements, and the work has progressed to the point indicated on the attached Payment Request. 4. The attached Payment Request is an accurate and complete statement of all amounts previously paid or now due and all amounts expected to be incurred in connection with the completion of the work. 5. All representations and warranties in the Agreement and the other Project Documents are true and correct in all material respects as of the date of this request as if made on and as of the date of this request. No Event of Default by Developer remains uncured, and no event has occurred which, with the giving of notice or the passage of time or both, would constitute an Event of Default by Developer. 523 882/015610-0040 9930825.4 a06/01/17 -2- DATE: ___________________ Designated Representative Contractor hereby certifies that Paragraphs 2 (with respect to costs covered by Contractor’s Contract), 3 (with respect to work covered by Contractor’s Contract), 4 (with respect to costs and work covered by Contractor’s Contract) and 5, above, are true to the best of Contractor’s knowledge. ____________________________________ Contractor PAYMENT APPROVED: Authority Inspector Authority Officer APPROVED CHANGE ORDERS: Order No. Work Item Amount Approved Date 524 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 14A ATTACHMENT NO. 14A FORM OF AUTHORITY NOTE (PLANS) [See following document] 525 882/015610-0040 9930825.4 a06/01/17 -1- AUTHORITY PROMISSORY NOTE (PLANS) $2,366,722 _____________, 20__ La Quinta, California FOR VALUE RECEIVED, _______________________, L.P., a California limited partnership (“Borrower”), as maker and obligor, promises to pay to the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Authority”), as holder and beneficiary, or order, at Authority’s office 78-495 Calle Tampico, La Quinta, California 92253, or such other place as Authority may designate in writing, the sum of (a) Two Million Three Hundred Sixty-Six Thousand Seven Hundred Twenty-Two Dollars ($2,366,722), or so much thereof as may be disbursed hereunder (“Note Amount”), and (b) all costs and expenses payable hereunder, in currency of the United States of America, which at the time of payment is lawful for the payment of public and private debts. 1. Agreement. This Authority Promissory Note (“Note”) is given in accordance with that certain Affordable Housing and Property Disposition Agreement executed by Authority and Coachella Valley Housing Coalition, a California nonprofit public benefit corporation (“CVHC”), as “Developer”, and thereafter assigned by CVHC to Borrower, dated as of _____________________, 2017 (“Agreement”). The rights and obligations of Borrower and Authority under this Note shall be governed by the Agreement and by the additional terms set forth in this Note. In the event of any inconsistencies between the terms of this Note and the terms of the Agreement or any other document related to the Note Amount, the terms of this Note shall prevail. Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in the Agreement. An Event of Default by Developer under any of the provisions of the Agreement, and/or a default under any and all attachments and all breakout documents executed, attested and/or recorded in implementation of the Agreement, including, without limitation, the Authority Deed of Trust or Authority Regulatory Agreement, or the income and/or rent restrictions as set forth in the Tax Credit Regulatory Agreement (collectively, the “Transaction Documents”) shall, after the expiration of any cure period under the respective agreement or document, be a default under this Note (a “Default”), and a default under this Note, after notice and expiration of a ten (10) day cure period, shall be an Event of Default under the Agreement and a default under the Transaction Documents. 2. Interest. The Note Amount shall bear simple interest at three percent (3%) per annum. 3. Repayment of Note Amount. The Note Amount shall be paid by the Borrower’s annual payment to Authority of an amount equal to fifty percent (50%) of the Residual Receipts from operation of the Project, as determined by a Residual Receipts calculation from the operation of the Project the preceding calendar year; provided, however, that if there are other “soft” loans to the Project that require repayment out of 526 882/015610-0040 9930825.4 a06/01/17 -2- the Residual Receipts from the operation of the Project (any such loans, a “Soft Loan”), then the amount payable to Authority shall be a proportional amount of fifty percent (50%) of said Residual Receipts, which proportional amount shall be equal to the percentage the principal amount of the Note Amount bears to the total collective principal amount of the Note Amount and the principal amount of all other Soft Loans. Annual Residual Receipts payments shall be made by the Borrower by cashier’s check and shall be delivered on or before May 1 for each year during the term of this Note commencing in the first fiscal year following the Conversion Date until the Note Amount and all unpaid interest thereon has been repaid in full. Additionally, the Note Amount shall be paid by any or all of the following: (i) one hundred percent (100%) of the Refinancing Net Proceeds immediately upon any refinancing of the loans secured by the Property (or any part thereof), (ii) one hundred percent (100%) of the Transfer Net Proceeds immediately upon any transfer in whole or in part of the Project, and (iii) any Cost Savings, pursuant to Section 6.9 of the Agreement. Notwithstanding anything in this Note to the contrary, repayment of this Note shall not commence until such time as the outstanding balance owed on that certain Authority Promissory Note in the amount of Fifteen Million Fifty-Eight Thousand Two Hundred Eighty-Eight Dollars ($15,058,288), executed by Borrower concurrently herewith, has been fully repaid according to its terms. As used herein, “Affiliate” means any person or entity directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with Borrower which, if Borrower is a partnership or limited liability company, shall include each of the constituent members or partners, respectively thereof. The term “control” as used in the immediately preceding sentence, means, with respect to a person that is a corporation, the right to the exercise, directly or indirectly, of more than fifty percent (50%) of the voting rights attributable to the shares of the controlled corporation, and, with respect to a person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled person. As used herein, “Annual Financial Statement” shall mean each certified financial statement of Borrower for the Project using generally accepted accounting principles (“GAAP ”), as separately accounted for this Project, including Operating Expenses and Annual Project Revenue, prepared annually at Borrower’s expense, by an independent certified public accountant reasonably acceptable to Authority. As used herein, “Annual Project Revenue” means all gross income and all revenues of any kind from the Project in a calendar year, of whatever form or nature, whether direct or indirect, with the exception of the items excluded below, actually received by or paid to or for the account or benefit of Borrower or any Affiliate of Borrower or any of their agents or employees, from any and all sources, resulting from or attributable to the ownership, operation, leasing and occupancy of the Project, determined on the basis of generally accepted accounting principles applied on a 527 882/015610-0040 9930825.4 a06/01/17 -3- consistent basis, and shall include, but not be limited to: (i) gross rentals paid by tenants of the Project under leases, and payments and subsidies of whatever nature, including without limitation any payments, vouchers or subsidies from the U.S. Department of Housing and Urban Development or any other person or organization, received on behalf of tenants under their leases, (ii) amounts paid by residents of the Project to Borrower or any Affiliate of Borrower on account of Operating Expenses for further disbursement by Borrower or such Affiliate to a third party or parties, (iii) late charges and interest paid on rentals, (iv) rents and receipts from licenses, concessions, vending machines, coin laundry and similar sources, (v) other fees, charges or payments not denominated as rental but payable to Borrower in connection with the rental of office, retail, storage, or other space in the Project, (vi) consideration received in whole or in part for the cancellation, modification, extension or renewal of leases, and (vii) interest and other investment earnings on security deposits, reserve accounts and other Project accounts to the extent disbursed for other than the purpose of the reserve. Notwithstanding the foregoing, gross income shall not include the following items: (a) security deposits from tenants (except when applied by Borrower to rent or other amounts owing by tenants); (b) capital contributions to Borrower by its members, partners or shareholders (including capital contributions required to pay any Deferred Developer Fee); (c) condemnation or insurance proceeds; (d) funds received from any source actually and directly used for initial development of the Project; (e) receipt by an Affiliate of management fees or other bona fide arms-length payments for reasonable and necessary Operating Expenses associated with the Project; (f) Transfer Net Proceeds; or (g) Refinancing Net Proceeds. As used herein “Capital Replacement Reserve” shall have the meaning ascribed thereto in the Authority Regulatory Agreement. As used herein, “CPI Ad justment” means the increase in the cost of living index, as measured by the Consumer Price Index for all urban consumers, Los Angeles- Riverside-Orange statistical area, all items (1982-84 = 100) published by the United States Department of Labor, Bureau of Labor Statistics (“CPI”) in effect as of the date on which the Certificate of Occupancy is issued for the Project to the CPI in effect as of the date on which an adjustment is made. If such index is discontinued or revised, such other index with which such index is replaced (or if not replaced, another index which reasonably reflects and monitors consumer prices) shall be used in order to obtain substantially the same results as would have been obtained if the discontinued index had not been discontinued or revised. If the CPI is changed so that the base year is other than 1982-84, the CPI shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. As used herein, “Debt Service” shall mean payments made in a calendar year pursuant to the approved Construction Loan or the Take-Out Loan, as applicable, obtained for the construction/development, and ownership of the Project, as set forth in the Project Budget, or any permitted refinancing or modification thereof, but excluding payments made pursuant to this Note. 528 882/015610-0040 9930825.4 a06/01/17 -4- As used herein, “Deferred Developer Fee” shall mean the portion of the Borrower’s development fee, if any, that is payable out of the Annual Project Revenue and not from capital sources, as set forth in the Project Budget. Disbursement of the Deferred Developer Fee (all or any part thereof) shall be subject to the provisions of the next paragraph. In connection with Borrower’s eligibility to disburse all or any part of the Deferred Developer Fee, in the event the cost of completing the Project exceeds the amount set forth in the final Budget; then, to the extent necessary, the funds otherwise available to pay the developer fee from capital sources shall be expended and used to pay the remaining costs of completing the Project to the extent necessary to ensure the completion of the Project and the balance of the developer fee shall be paid as Deferred Developer Fee in accordance with the priority set forth in the Partnership Agreement, and/or payable from the proceeds of any approved refinancing or transfer of the Property and/or the Project. In no event shall Borrower be eligible for disbursement of the Deferred Developer Fee or any part thereof prior to completion of the Project, as approved by the Executive Director as evidenced by the issuance by Authority of the Release of Construction Covenants. As used herein, “Operating Expenses” shall mean actual, reasonable and customary (for comparable high quality rental Projects in Riverside County) costs, fees and expenses directly incurred, paid, and attributable to the operation, maintenance and management of the Project in a calendar year, which are in accordance with the annual Operating Budget approved by Authority pursuant to Section 9 of Authority Regulatory Agreement, including, without limitation, painting, cleaning, repairs, alterations, landscaping, utilities, refuse removal, certificates, permits and licenses, sewer charges, real and personal property taxes, assessments, insurance, security, advertising and promotion, janitorial services, cleaning and building supplies, purchase, repair, servicing and installation of appliances, equipment, fixtures and furnishings, fees and expenses of property management, fees and expenses of accountants, attorneys and other professionals, asset management fees paid to the Investor in the amount of ________________ Dollars ($_____), which shall be increased annually by ____________ percent (___%) per year, partnership management fees paid to the general partner of Borrower in the amount of ________________ Dollars ($_____), which shall be increased annually by ____________ percent (___%) per year, and other actual, reasonable and customary operating costs which are directly incurred and paid by Borrower, but which are not paid from or eligible to be paid from the Operating Reserve or any other reserve accounts. In addition, Operating Expenses shall include a social services fee in the amount of ________________ Dollars ($_____) for calendar year 20__, which shall be increased annually by ____________ percent (___%) per year, provided Borrower provides the social services described in (a) the Tenant Services Agreement that was included in Borrower’s tax credit application, and (b) the Scope of Development. Operating Expenses shall not include any of the following: (i) salaries of employees of Borrower or Borrower’s general overhead expenses, or expenses, costs and fees paid to an Affiliate of Borrower, to the extent any of the foregoing exceed the expenses, costs or fees that would be payable in a bona fide arms’ length transaction between unrelated parties in the Riverside County area for the 529 882/015610-0040 9930825.4 a06/01/17 -5- same work or services; (ii) any amounts paid directly by a tenant of the Project to a third party in connection with expenses which, if incurred by Borrower, would be Operating Expenses; (iii) optional or elective payments with respect to the Construction Loan; (iv) any payments with respect to any Project-related loan or financing that has not been approved by Authority; (v) expenses, expenditures, and charges of any nature whatsoever arising or incurred by Borrower prior to completion of the Project with respect to the development of the Project, or any portion thereof, including, without limitation, all predevelopment and preconstruction activities conducted by Borrower in connection with the Project, including without limitation, the preparation of all plans and the performance of any tests, studies, investigations or other work, and the construction of the Project and any on site or off site work in connection therewith; or (vi) depreciation, amortization, and accrued principal and interest expense on deferred payment debt. As used herein, “Operating Reserve” shall have the meaning ascribed thereto in the Authority Regulatory Agreement. As used herein, “Partnership Agreement” means the agreement which sets forth the terms of the Borrower’s limited partnership, as such agreement may be amended from time to time. As used herein, “Refinancing Net Proceeds” means the proceeds of any approved refinancing of the Construction Loan or other approved financing secured by the Property, net of the following actual costs and fees incurred: (i) the amount of the financing which is satisfied out of such proceeds, (ii) reasonable and customary costs and expenses incurred in connection with the refinancing, (iii) the balance, if any, of the Deferred Developer Fee, (iv) the balance, if any, of authorized loans to the Project made by the limited partners of Borrower, including interest at the rate set forth in the Partnership Agreement for such loans, (v) the balance, if any, of authorized operating loans or development loans made by the general partners of a limited partnership that succeeds to Borrower’s interest in the Agreement and the Project, including interest at the rate set forth in the Partnership Agreement for such loans, (vi) the return of capital contributions, if any, to the Project made by the general partners of a limited partnership that succeeds to Borrower’s interest in the Agreement and the Project that were used to pay the Deferred Developer Fee, and (vii) the amount of proceeds required to be reserved for the repair, rehabilitation, reconstruction or refurbishment of the Project. As used herein, “Reserve Deposits” shall mean any payments to the Capital Replacement Reserve account and payments to the Operating Reserve account pursuant to Sections 10 and 11, respectively, of Authority Regulatory Agreement or such higher amounts as may be otherwise required by (i) any lender of a Project-related loan that has been approved by Authority, or (ii) the Investor, pursuant to the terms of the Partnership Agreement. As used herein, “Residual Receipts” shall mean Annual Project Revenue less the sum of: 530 882/015610-0040 9930825.4 a06/01/17 -6- (i) Operating Expenses; (ii) Debt Service; (iii) Reserve Deposits to the Capital Replacement Reserve; (iv) Reserve Deposits to the Operating Reserve; (v) Deferred Developer Fees; (vi) Unpaid Tax Credit adjustment amounts, if any, pursuant to the Partnership Agreement; (viii) Repayment of loans to the Project, if any, made by the limited partner(s) of Borrower pursuant to the Partnership Agreement, including interest at the rate set forth in the Partnership Agreement, for eligible development and/or operating expense deficits or other eligible loans (provided that if made during the compliance period Borrower shall provide to Executive Director documentation showing the propriety of such loan(s) and if made subsequent to the expiration of the compliance period each such loan must be reasonably approved by the Executive Director before being provided to the Project after review of documentation provided by Borrower showing propriety of such loans); (ix) Repayment to the administrative and/or managing general partners of Borrower for loans to the Project for development advance(s) pursuant to the Partnership Agreement, operating deficit advance(s) pursuant to the Partnership Agreement), credit adjuster payment(s) pursuant to the Partnership Agreement), and/or development fee advance(s) pursuant to the Partnership Agreement, and with all such loans to be repaid without interest (provided that if made during the compliance period Borrower shall provide to Executive Director documentation showing the propriety of such loan(s) and if made subsequent to the expiration of the compliance period each such loan must be reasonably approved by the Executive Director before being provided to the Project after review of documentation provided by Borrower showing propriety of such loans); (x) Repayment to the administrative and/or managing general partners of Borrower of certain loans made to the Project after the expiration or earlier termination of the Partnership Agreement to cover shortfalls in funding for Operating Expenses in excess of the Operating Expenses included in the approved annual Operating Budget for the year in which such loan is made (if at all), all such loans to be repaid without interest (provided that if made during the compliance period Borrower shall provide to Executive Director documentation showing the propriety of such loan(s) and if made subsequent to the expiration of the compliance period each such loan must be reasonably approved by the Executive Director before being provided to the Project after review of documentation provided by Borrower showing propriety of such loans); and 531 882/015610-0040 9930825.4 a06/01/17 -7- (xi) Capital contributions to the Project, if any, made by the general partners of Borrower that were used to pay developer fee. In the event any calculation of Annual Project Revenue less subsections (i) through (xi) inclusive above results in a negative number, then Residual Receipts shall be zero ($0) for that year and shall not carry over to the next or any other subsequent year. In addition, none of the fees, costs, expenses, or items described above in calculation of Residual Receipts shall include any duplicate entry/item, or double accounting for a cost item. The calculation of Residual Receipts shall be conducted at Borrower’s sole cost and expense, by a third party auditor and submitted to Borrower annually, along with Borrower’s payment of Residual Receipts. As used herein, “Transfer Net Proceeds” shall mean the proceeds of any sale or other transfer, in whole or part, of the Property or Borrower’s interests therein, net only of (i) the reasonable and customary costs and expenses incurred in connection with such transfer; (ii) the amount of the financing which is satisfied out of such proceeds, (iii) the balance, if any, of the Deferred Developer Fee, (iv) the balance, if any, of loans to the Project made by the limited partners of Borrower, including interest thereon as provided in the Partnership Agreement, (v) the balance, if any, of operating loans or development loans made by the general partners of Borrower, including interest thereon as provided in the Partnership Agreement, and (vi) the return of capital contributions, if any, to the Project made by the general partners of Borrower that were used to pay the Deferred Developer Fee. 4. Security. Borrower’s obligations under this Note and the Agreement shall, at all times during which any amount remains outstanding hereunder, be secured by the Authority Deed of Trust, which Authority Deed of Trust shall only be subordinated to the approved deed(s) of trust for the Construction Loan and such encumbrances approved by Authority in writing, pursuant to a written subordination agreement in a form approved by Authority counsel. Upon execution of the same, the terms of the Authority Deed of Trust are incorporated herein and made a part hereof to the same extent and with the same force and effect as if fully set forth herein. 5. Maturity. This Note shall be due and payable on the fifty-seventh (57th) anniversary of the date of execution hereof by Borrower. 6. Application of Payments. All payments shall be applied (i) first, to costs and fees owing under this Note, (ii) second, to the payment of unpaid accrued interest owing under this Note for each calendar year in which no payment was made by Borrower pursuant to Section 3 above, (iii) third, to the payment of accrued interest for the preceding calendar year, and (iv) fourth, to payment of principal. 7. Waivers. (a) Borrower expressly agrees that this Note or any payment hereunder may be extended from time to time at Authority’s sole discretion and that 532 882/015610-0040 9930825.4 a06/01/17 -8- Authority may accept security in consideration for any such extension or release any security for this Note at its sole discretion all without in any way affecting the liability of Borrower. (b) No extension of time for payment of this Note made by agreement by Authority with any person now or hereafter liable for the payment of this Note shall operate to release, discharge, modify, change or affect the original liability of Borrower under this Note, either in whole or in part. (c) The obligations of Borrower under this Note shall be absolute and Borrower waives any and all rights to offset, deduct or withhold any payments or charges due under this Note for any reasons whatsoever. (d) Borrower waives presentment, demand, notice of protest and nonpayment, notice of default or delinquency, notice of acceleration, notice of costs, expenses or leases or interest thereon, notice of dishonor, diligence in collection or in proceeding against any of the rights or interests in or to properties securing this Note, and the benefit of any exemption under any homestead exemption laws, if applicable. (e) No previous waiver and no failure or delay by Authority in acting with respect to the terms of this Note or the Authority Deed of Trust shall constitute a waiver of any breach, default, or failure or condition under this Note, the Authority Deed of Trust or the obligations secured thereby. A waiver of any term of this Note, the Authority Deed of Trust or of any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver. 8. Attorneys’ Fees and Costs. Borrower agrees that if any amounts due under this Note are not paid when due, Borrower will pay all costs and expenses of collection and reasonable attorneys’ fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed. 9. Joint and Several Obligation. This Note is the joint and several obligation of all makers, sureties, guarantors and endorsers, and shall be binding upon them and their heirs, successors and assigns. 10. Amendments and Modifications. This Note may not be changed orally, but only by an amendment approved by Authority and evidenced in a writing signed by Borrower and by Authority. 11. Authority May Assign. Authority may, at its option, assign its right to receive payment under this Note without necessity of obtaining the consent of the Borrower. 12. Borrower Assignment Prohibited. In no event shall Borrower assign or transfer any portion of this Note without the prior express written consent of Authority, which consent shall not unreasonably be withheld, except pursuant to a transfer that is authorized under Section 15 of the Agreement. 533 882/015610-0040 9930825.4 a06/01/17 -9- 13. Acceleration and Other Remedies. Upon the occurrence of a Default, Authority may, at Authority’s option, declare the outstanding principal amount of this Note, together with the then accrued and unpaid interest thereon and other charges hereunder, and all other sums secured by the Authority Deed of Trust, to be due and payable immediately, and upon such declaration, such principal and interest and other sums shall immediately become and be due and payable without demand or notice, all as further set forth in the Authority Deed of Trust. All costs of collection, including, but not limited to, reasonable attorneys’ fees and all expenses incurred in connection with protection of, or realization on, the security for this Note, may be added to the principal hereunder, and shall accrue interest as provided herein. Authority shall at all times have the right to proceed against any portion of the security for this Note in such order and in such manner as Authority may consider appropriate, without waiving any rights with respect to any of the security. Any delay or omission on the part of Authority in exercising any right hereunder, under the Agreement or under the Authority Deed of Trust shall not operate as a waiver of such right, or of any other right. No single or partial exercise of any right or remedy hereunder or under the Agreement or any other document or agreement shall preclude other or further exercises thereof, or the exercise of any other right or remedy. The acceptance of payment of any sum payable hereunder, or part thereof, after the due date of such payment shall not be a waiver of Authority’s right to either require prompt payment when due of all other sums payable hereunder or to declare a Default for failure to make prompt or complete payment. 14. Alternate Rate. Upon the occurrence of any Default, or upon the maturity hereof (by acceleration or otherwise), the entire unpaid principal sum, at the option of Authority, shall bear interest, from the date of occurrence of such Default or maturity and after judgment and until collection, at the “Alternate Rate”, such rate being the highest interest rate then permitted by law. Interest calculated at the Alternate Rate, when and if applicable, shall be due and payable immediately without notice or demand. Borrower agrees that in the event of any Default, Authority will incur additional expense in servicing the loan evidenced by this Note and will suffer damage and loss resulting from such Default. Borrower agrees that in such event Authority shall be entitled to damages for the detriment caused thereby, which damages are extremely difficult and impractical to ascertain. Therefore, Borrower agrees that the Alternate Rate (as applied to the unpaid principal balance, accrued interest, fees, costs and expenses incurred) is a reasonable estimate of such damages to Authority, and Borrower agrees to pay such sum on demand. 15. Consents. Borrower hereby consents to: (a) any extension (whether one or more) of the time of payment under this Note, (b) the release or surrender or exchange or substitution of all or any part of the security, whether real or personal, or direct or indirect, for the payment hereof, (c) the granting of any other indulgences to Borrower, and (d) the taking or releasing of other or additional parties primarily or contingently liable hereunder. Any such extension, release, surrender, exchange or substitution may be made without notice to Borrower or to any endorser, guarantor or surety hereof, and without affecting the liability of said parties hereunder. 534 882/015610-0040 9930825.4 a06/01/17 -10- 16. Interest Rate Limitation. Authority and Borrower stipulate and agree that none of the terms and provisions contained herein or in any of the loan instruments shall ever be construed to create a contract for the use, forbearance or detention of money requiring payment of interest at a rate in excess of the maximum interest rate permitted to be charged by the laws of the State of California. In such event, if any holder of this Note shall collect monies which are deemed to constitute interest which would otherwise increase the effective interest rate on this Note to a rate in excess of the maximum rate permitted to be charged by the laws of the State of California, all such sums deemed to constitute interest in excess of such maximum rate shall, at the option of such holder, be credited to the payment of the sums due hereunder or returned to Borrower. 17. Successors and Assigns. Whenever “Authority” is referred to in this Note, such reference shall be deemed to include the La Quinta Housing Authority and its successors and assigns, including, without limitation, any successor to its rights, powers, and responsibilities, and any subsequent assignee or holder of this Note. All covenants, provisions and agreements by or on behalf of Borrower, and on behalf of any makers, endorsers, guarantors and sureties hereof which are contained herein shall inure to the benefit of Authority and Authority’s successors and assigns. 18. Miscellaneous. Time is of the essence hereof. This Note shall be governed by and construed under the laws of the State of California except to the extent Federal laws preempt the laws of the State of California. Borrower irrevocably and unconditionally submits to the jurisdiction of the Superior Court of the State of California for the County of Riverside or the United States District Court of the Central District of California, as Authority may deem appropriate, in connection with any legal action or proceeding arising out of or relating to this Note. Borrower also waives any objection regarding personal or in rem jurisdiction or venue. 19. Non-Recourse Obligation. Borrower and its partners shall not be personally liable for the payment of this Note or for the payment of any deficiency established after judicial foreclosure or trustee’s sale; provided, however, that the foregoing shall not in any way affect any rights Authority may have (as a secured party or otherwise) hereunder or under the Agreement or the Authority Deed of Trust to recover directly from Borrower any amounts, or any funds, damages or costs (including without limitation reasonable attorneys’ fees and costs) incurred by Authority as a result of fraud, intentional misrepresentation or bad faith, waste, and any costs and expenses incurred by Authority in connection therewith (including without limitation reasonable attorneys’ fees and costs). 20. Accounting. (a) Accounting Terms and Determinations. Unless otherwise specified herein, (i) all accounting terms used herein shall be interpreted, (ii) all accounting determinations hereunder shall be made, and (c) all books, records and financial statements required to be delivered hereunder shall be prepared, in accordance with GAAP, consistently applied, except for changes approved by Authority. 535 882/015610-0040 9930825.4 a06/01/17 -11- (b) Financial Reporting and Accounting Covenants. Borrower shall permit the representatives of Authority at any time or from time to time, upon three (3) business days’ notice and during normal business hours, to inspect, audit, and copy all of Borrower’s books, records, and accounts relating to the Property. Borrower shall furnish or cause to be furnished to Authority the following: (i) Annual Financial Statement. Borrower shall submit to Authority, on or before May 1 of each year commencing in the first year after the issuance of the first certificate of occupancy for the Project, an Annual Financial Statement, with respect to the Project that has been reviewed by an independent certified public accountant, together with an expressed written opinion of the certified public accountant that such Annual Financial Statement presents the financial position, results of operations, and cash flows of the Project fairly and in accordance with GAAP. (ii) Tax Returns. As soon as available, but in no event later than thirty (30) days after the time of filing with the Internal Revenue Service, the federal tax returns (and supporting schedules, if any) of Borrower. (iii) Audit Reports. Not later than ten (10) days after receipt thereof by Borrower, copies of all reports submitted to Borrower by independent public accountants in connection with each annual, interim or special audit of the financial statements of Borrower, made by such accountants, including the comment letter submitted by such accountants to management in connection with their annual audit. If any such audit report results in Borrower restating Residual Receipts upward for any fiscal year, then Borrower shall accompany delivery of such audit report to Authority with the additional payment to Authority resulting from said restatement pursuant to Section 3 of this Note. If any such audit report results in Borrower restating Residual Receipts downward for any fiscal year, Borrower may carry forward the overpayment made to Authority pursuant to such Section 3 as a credit against payments thereunder in subsequent fiscal years. (c) Late Payment. If any annual payment required pursuant to Section 3 above is not received by Authority within ten (10) calendar days after payment is due, Borrower shall pay to Authority a late charge of five percent (5%) of such payment, such late charge to be immediately due and payable without demand by Authority. (d) Dispute Regarding Annual Financial Statement. If Authority disputes any Annual Financial Statement, Authority shall notify Borrower of such dispute within sixty (60) days after receipt of an Annual Financial Statement and the parties shall cause their representatives to meet and confer concerning the dispute and to use all reasonable efforts to reach a mutually acceptable resolution of the matter in question within thirty (30) days after Authority’s notice of such dispute. If the parties are unable to reach a mutually acceptable resolution within such thirty (30) day period, then, within twenty (20) days after the expiration of such period, Borrower and Authority shall appoint a national firm of certified public accountants to review the dispute and to make a determination as to the matter in question within thirty (30) days after such 536 882/015610-0040 9930825.4 a06/01/17 -12- appointment. If the parties cannot, within ten (10) days, agree upon the firm to be appointed, then, upon the application of either party, such firm shall be appointed by the Presiding Judge of the Superior Court for the County of Riverside, California. Such firm’s determination shall be final and binding upon the parties. Such firm shall have full access to the books, records and accounts of Borrower and the Property. (e) Underpayment. If any audit by Authority reports an underpayment by Borrower on this Note, Borrower shall pay the amount of such underpayment, together with the late charge set forth in Section 20(c) of this Note, to Authority within ten (10) days after written notice thereof to Borrower or, in the event of a dispute, after timely notice to Borrower of the resolution of such dispute by the independent firm of certified public accountants, as the case may be, and if such underpayment amounts to more than five percent (5%) of the disputed payment for the period audited, then, notwithstanding anything to the contrary in this section, Borrower shall pay to Authority, within ten (10) days after written demand, Authority’s reasonable costs and expenses in conducting such audit and exercising its rights under this Section 20 of this Note. Date: , 20__ BORROWER: ___________________________, L.P., a California limited partnership By: Its: 537 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 14B ATTACHMENT NO. 14B FORM OF AUTHORITY NOTE (PROPERTY AND CONSTRUCTION) [See following document] 538 882/015610-0040 9930825.4 a06/01/17 -1- AUTHORITY PROMISSORY NOTE (PROPERTY AND CONSTRUCTION) $15,058,288 _____________, 20__ La Quinta, California FOR VALUE RECEIVED, _______________________, L.P., a California limited partnership (“Borrower”), as maker and obligor, promises to pay to the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Authority”), as holder and beneficiary, or order, at Authority’s office 78-495 Calle Tampico, La Quinta, California 92253, or such other place as Authority may designate in writing, the sum of (a) Fifteen Million Fifty-Eight Thousand Two Hundred Eighty-Eight Dollars ($15,058,288), or so much thereof as may be disbursed hereunder (“Note Amount”), and (b) all costs and expenses payable hereunder, in currency of the United States of America, which at the time of payment is lawful for the payment of public and private debts. 1. Agreement. This Authority Promissory Note (“Note”) is given in accordance with that certain Affordable Housing and Property Disposition Agreement executed by Authority and Coachella Valley Housing Coalition, a California nonprofit public benefit corporation (“CVHC”), as “Developer”, and thereafter assigned by CVHC to Borrower, dated as of _____________________, 2017 (“Agreement”). The rights and obligations of Borrower and Authority under this Note shall be governed by the Agreement and by the additional terms set forth in this Note. In the event of any inconsistencies between the terms of this Note and the terms of the Agreement or any other document related to the Note Amount, the terms of this Note shall prevail. Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in the Agreement. An Event of Default by Developer under any of the provisions of the Agreement, and/or a default under any and all attachments and all breakout documents executed, attested and/or recorded in implementation of the Agreement, including, without limitation, the Authority Deed of Trust or Authority Regulatory Agreement, or the income and/or rent restrictions as set forth in the Tax Credit Regulatory Agreement (collectively, the “Transaction Documents”) shall, after the expiration of any cure period under the respective agreement or document, be a default under this Note (a “Default”), and a default under this Note, after notice and expiration of a ten (10) day cure period, shall be an Event of Default under the Agreement and a default under the Transaction Documents. 2. Interest. The Note Amount shall bear simple interest at three percent (3%) per annum. 3. Repayment of Note Amount. The Note Amount shall be paid by the Borrower’s annual payment to Authority of an amount equal to fifty percent (50%) of the Residual Receipts from operation of the Project, as determined by a Residual Receipts calculation from the operation of the Project the preceding calendar year; provided, however, that if there are other “soft” loans to the Project that require repayment out of 539 882/015610-0040 9930825.4 a06/01/17 -2- the Residual Receipts from the operation of the Project (any such loans, a “Soft Loan”), then the amount payable to Authority shall be a proportional amount of fifty percent (50%) of said Residual Receipts, which proportional amount shall be equal to the percentage the principal amount of the Note Amount bears to the total collective principal amount of the Note Amount and the principal amount of all other Soft Loans. Annual Residual Receipts payments shall be made by the Borrower by cashier’s check and shall be delivered on or before May 1 for each year during the term of this Note commencing in the first fiscal year following the Conversion Date until the Note Amount and all unpaid interest thereon has been repaid in full. Additionally, the Note Amount shall be paid by any or all of the following: (i) one hundred percent (100%) of the Refinancing Net Proceeds immediately upon any refinancing of the loans secured by the Property (or any part thereof), (ii) one hundred percent (100%) of the Transfer Net Proceeds immediately upon any transfer in whole or in part of the Project, and (iii) any Cost Savings, pursuant to Section 6.9 of the Agreement. As used herein, “Affiliate” means any person or entity directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with Borrower which, if Borrower is a partnership or limited liability company, shall include each of the constituent members or partners, respectively thereof. The term “control” as used in the immediately preceding sentence, means, with respect to a person that is a corporation, the right to the exercise, directly or indirectly, of more than fifty percent (50%) of the voting rights attributable to the shares of the controlled corporation, and, with respect to a person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled person. As used herein, “Annual Financial Statement” shall mean each certified financial statement of Borrower for the Project using generally accepted accounting principles (“GAAP ”), as separately accounted for this Project, including Operating Expenses and Annual Project Revenue, prepared annually at Borrower’s expense, by an independent certified public accountant reasonably acceptable to Authority. As used herein, “Annual Project Revenue” means all gross income and all revenues of any kind from the Project in a calendar year, of whatever form or nature, whether direct or indirect, with the exception of the items excluded below, actually received by or paid to or for the account or benefit of Borrower or any Affiliate of Borrower or any of their agents or employees, from any and all sources, resulting from or attributable to the ownership, operation, leasing and occupancy of the Project, determined on the basis of generally accepted accounting principles applied on a consistent basis, and shall include, but not be limited to: (i) gross rentals paid by tenants of the Project under leases, and payments and subsidies of whatever nature, including without limitation any payments, vouchers or subsidies from the U.S. Department of Housing and Urban Development or any other person or organization, received on behalf of tenants under their leases, (ii) amounts paid by residents of the Project to Borrower or any Affiliate of Borrower on account of Operating Expenses for further 540 882/015610-0040 9930825.4 a06/01/17 -3- disbursement by Borrower or such Affiliate to a third party or parties, (iii) late charges and interest paid on rentals, (iv) rents and receipts from licenses, concessions, vending machines, coin laundry and similar sources, (v) other fees, charges or payments not denominated as rental but payable to Borrower in connection with the rental of office, retail, storage, or other space in the Project, (vi) consideration received in whole or in part for the cancellation, modification, extension or renewal of leases, and (vii) interest and other investment earnings on security deposits, reserve accounts and other Project accounts to the extent disbursed for other than the purpose of the reserve. Notwithstanding the foregoing, gross income shall not include the following items: (a) security deposits from tenants (except when applied by Borrower to rent or other amounts owing by tenants); (b) capital contributions to Borrower by its members, partners or shareholders (including capital contributions required to pay any Deferred Developer Fee); (c) condemnation or insurance proceeds; (d) funds received from any source actually and directly used for initial development of the Project; (e) receipt by an Affiliate of management fees or other bona fide arms-length payments for reasonable and necessary Operating Expenses associated with the Project; (f) Transfer Net Proceeds; or (g) Refinancing Net Proceeds. As used herein “Capital Replacement Reserve” shall have the meaning ascribed thereto in the Authority Regulatory Agreement. As used herein, “CPI Ad justment” means the increase in the cost of living index, as measured by the Consumer Price Index for all urban consumers, Los Angeles- Riverside-Orange statistical area, all items (1982-84 = 100) published by the United States Department of Labor, Bureau of Labor Statistics (“CPI”) in effect as of the date on which the Certificate of Occupancy is issued for the Project to the CPI in effect as of the date on which an adjustment is made. If such index is discontinued or revised, such other index with which such index is replaced (or if not replaced, another index which reasonably reflects and monitors consumer prices) shall be used in order to obtain substantially the same results as would have been obtained if the discontinued index had not been discontinued or revised. If the CPI is changed so that the base year is other than 1982-84, the CPI shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. As used herein, “Debt Service” shall mean payments made in a calendar year pursuant to the approved Construction Loan or the Take-Out Loan, as applicable, obtained for the construction/development, and ownership of the Project, as set forth in the Project Budget, or any permitted refinancing or modification thereof, but excluding payments made pursuant to this Note. As used herein, “Deferred Developer Fee” shall mean the portion of the Borrower’s development fee, if any, that is payable out of the Annual Project Revenue and not from capital sources, as set forth in the Project Budget. Disbursement of the Deferred Developer Fee (all or any part thereof) shall be subject to the provisions of the next paragraph. 541 882/015610-0040 9930825.4 a06/01/17 -4- In connection with Borrower’s eligibility to disburse all or any part of the Deferred Developer Fee, in the event the cost of completing the Project exceeds the amount set forth in the final Budget; then, to the extent necessary, the funds otherwise available to pay the developer fee from capital sources shall be expended and used to pay the remaining costs of completing the Project to the extent necessary to ensure the completion of the Project and the balance of the developer fee shall be paid as Deferred Developer Fee in accordance with the priority set forth in the Partnership Agreement, and/or payable from the proceeds of any approved refinancing or transfer of the Property and/or the Project. In no event shall Borrower be eligible for disbursement of the Deferred Developer Fee or any part thereof prior to completion of the Project, as approved by the Executive Director as evidenced by the issuance by Authority of the Release of Construction Covenants. As used herein, “Operating Expenses” shall mean actual, reasonable and customary (for comparable high quality rental Projects in Riverside County) costs, fees and expenses directly incurred, paid, and attributable to the operation, maintenance and management of the Project in a calendar year, which are in accordance with the annual Operating Budget approved by Authority pursuant to Section 9 of Authority Regulatory Agreement, including, without limitation, painting, cleaning, repairs, alterations, landscaping, utilities, refuse removal, certificates, permits and licenses, sewer charges, real and personal property taxes, assessments, insurance, security, advertising and promotion, janitorial services, cleaning and building supplies, purchase, repair, servicing and installation of appliances, equipment, fixtures and furnishings, fees and expenses of property management, fees and expenses of accountants, attorneys and other professionals, asset management fees paid to the Investor in the amount of ________________ Dollars ($_____), which shall be increased annually by ____________ percent (___%) per year, partnership management fees paid to the general partner of Borrower in the amount of ________________ Dollars ($_____), which shall be increased annually by ____________ percent (___%) per year, and other actual, reasonable and customary operating costs which are directly incurred and paid by Borrower, but which are not paid from or eligible to be paid from the Operating Reserve or any other reserve accounts. In addition, Operating Expenses shall include a social services fee in the amount of ________________ Dollars ($_____) for calendar year 20__, which shall be increased annually by ____________ percent (___%) per year, provided Borrower provides the social services described in (a) the Tenant Services Agreement that was included in Borrower’s tax credit application, and (b) the Scope of Development. Operating Expenses shall not include any of the following: (i) salaries of employees of Borrower or Borrower’s general overhead expenses, or expenses, costs and fees paid to an Affiliate of Borrower, to the extent any of the foregoing exceed the expenses, costs or fees that would be payable in a bona fide arms’ length transaction between unrelated parties in the Riverside County area for the same work or services; (ii) any amounts paid directly by a tenant of the Project to a third party in connection with expenses which, if incurred by Borrower, would be Operating Expenses; (iii) optional or elective payments with respect to the Construction Loan; (iv) any payments with respect to any Project-related loan or financing that has not been approved by Authority; (v) expenses, expenditures, and charges of any nature whatsoever arising or incurred by Borrower prior to completion of the Project with 542 882/015610-0040 9930825.4 a06/01/17 -5- respect to the development of the Project, or any portion thereof, including, without limitation, all predevelopment and preconstruction activities conducted by Borrower in connection with the Project, including without limitation, the preparation of all plans and the performance of any tests, studies, investigations or other work, and the construction of the Project and any on site or off site work in connection therewith; or (vi) depreciation, amortization, and accrued principal and interest expense on deferred payment debt. As used herein, “Operating Reserve” shall have the meaning ascribed thereto in the Authority Regulatory Agreement. As used herein, “Partnership Agreement” means the agreement which sets forth the terms of the Borrower’s limited partnership, as such agreement may be amended from time to time. As used herein, “Refinancing Net Proceeds” means the proceeds of any approved refinancing of the Construction Loan or other approved financing secured by the Property, net of the following actual costs and fees incurred: (i) the amount of the financing which is satisfied out of such proceeds, (ii) reasonable and customary costs and expenses incurred in connection with the refinancing, (iii) the balance, if any, of the Deferred Developer Fee, (iv) the balance, if any, of authorized loans to the Project made by the limited partners of Borrower, including interest at the rate set forth in the Partnership Agreement for such loans, (v) the balance, if any, of authorized operating loans or development loans made by the general partners of a limited partnership that succeeds to Borrower’s interest in the Agreement and the Project, including interest at the rate set forth in the Partnership Agreement for such loans, (vi) the return of capital contributions, if any, to the Project made by the general partners of a limited partnership that succeeds to Borrower’s interest in the Agreement and the Project that were used to pay the Deferred Developer Fee, and (vii) the amount of proceeds required to be reserved for the repair, rehabilitation, reconstruction or refurbishment of the Project. As used herein, “Reserve Deposits” shall mean any payments to the Capital Replacement Reserve account and payments to the Operating Reserve account pursuant to Sections 10 and 11, respectively, of Authority Regulatory Agreement or such higher amounts as may be otherwise required by (i) any lender of a Project-related loan that has been approved by Authority, or (ii) the Investor, pursuant to the terms of the Partnership Agreement. As used herein, “Residual Receipts” shall mean Annual Project Revenue less the sum of: (i) Operating Expenses; (ii) Debt Service; (iii) Reserve Deposits to the Capital Replacement Reserve; (iv) Reserve Deposits to the Operating Reserve; 543 882/015610-0040 9930825.4 a06/01/17 -6- (v) Deferred Developer Fees; (vi) Unpaid Tax Credit adjustment amounts, if any, pursuant to the Partnership Agreement; (viii) Repayment of loans to the Project, if any, made by the limited partner(s) of Borrower pursuant to the Partnership Agreement, including interest at the rate set forth in the Partnership Agreement, for eligible development and/or operating expense deficits or other eligible loans (provided that if made during the compliance period Borrower shall provide to Executive Director documentation showing the propriety of such loan(s) and if made subsequent to the expiration of the compliance period each such loan must be reasonably approved by the Executive Director before being provided to the Project after review of documentation provided by Borrower showing propriety of such loans); (ix) Repayment to the administrative and/or managing general partners of Borrower for loans to the Project for development advance(s) pursuant to the Partnership Agreement, operating deficit advance(s) pursuant to the Partnership Agreement), credit adjuster payment(s) pursuant to the Partnership Agreement), and/or development fee advance(s) pursuant to the Partnership Agreement, and with all such loans to be repaid without interest (provided that if made during the compliance period Borrower shall provide to Executive Director documentation showing the propriety of such loan(s) and if made subsequent to the expiration of the compliance period each such loan must be reasonably approved by the Executive Director before being provided to the Project after review of documentation provided by Borrower showing propriety of such loans); (x) Repayment to the administrative and/or managing general partners of Borrower of certain loans made to the Project after the expiration or earlier termination of the Partnership Agreement to cover shortfalls in funding for Operating Expenses in excess of the Operating Expenses included in the approved annual Operating Budget for the year in which such loan is made (if at all), all such loans to be repaid without interest (provided that if made during the compliance period Borrower shall provide to Executive Director documentation showing the propriety of such loan(s) and if made subsequent to the expiration of the compliance period each such loan must be reasonably approved by the Executive Director before being provided to the Project after review of documentation provided by Borrower showing propriety of such loans); and (xi) Capital contributions to the Project, if any, made by the general partners of Borrower that were used to pay developer fee. In the event any calculation of Annual Project Revenue less subsections (i) through (xi) inclusive above results in a negative number, then Residual Receipts shall be zero ($0) for that year and shall not carry over to the next or any other subsequent year. 544 882/015610-0040 9930825.4 a06/01/17 -7- In addition, none of the fees, costs, expenses, or items described above in calculation of Residual Receipts shall include any duplicate entry/item, or double accounting for a cost item. The calculation of Residual Receipts shall be conducted at Borrower’s sole cost and expense, by a third party auditor and submitted to Borrower annually, along with Borrower’s payment of Residual Receipts. As used herein, “Transfer Net Proceeds” shall mean the proceeds of any sale or other transfer, in whole or part, of the Property or Borrower’s interests therein, net only of (i) the reasonable and customary costs and expenses incurred in connection with such transfer; (ii) the amount of the financing which is satisfied out of such proceeds, (iii) the balance, if any, of the Deferred Developer Fee, (iv) the balance, if any, of loans to the Project made by the limited partners of Borrower, including interest thereon as provided in the Partnership Agreement, (v) the balance, if any, of operating loans or development loans made by the general partners of Borrower, including interest thereon as provided in the Partnership Agreement, and (vi) the return of capital contributions, if any, to the Project made by the general partners of Borrower that were used to pay the Deferred Developer Fee. 4. Security. Borrower’s obligations under this Note and the Agreement shall, at all times during which any amount remains outstanding hereunder, be secured by the Authority Deed of Trust, which Authority Deed of Trust shall only be subordinated to the approved deed(s) of trust for the Construction Loan and such encumbrances approved by Authority in writing, pursuant to a written subordination agreement in a form approved by Authority counsel. Upon execution of the same, the terms of the Authority Deed of Trust are incorporated herein and made a part hereof to the same extent and with the same force and effect as if fully set forth herein. 5. Maturity. This Note shall be due and payable on the fifty-seventh (57th) anniversary of the date of execution hereof by Borrower. 6. Application of Payments. All payments shall be applied (i) first, to costs and fees owing under this Note, (ii) second, to the payment of unpaid accrued interest owing under this Note for each calendar year in which no payment was made by Borrower pursuant to Section 3 above, (iii) third, to the payment of accrued interest for the preceding calendar year, and (iv) fourth, to payment of principal. 7. Waivers. (a) Borrower expressly agrees that this Note or any payment hereunder may be extended from time to time at Authority’s sole discretion and that Authority may accept security in consideration for any such extension or release any security for this Note at its sole discretion all without in any way affecting the liability of Borrower. (b) No extension of time for payment of this Note made by agreement by Authority with any person now or hereafter liable for the payment of this Note shall 545 882/015610-0040 9930825.4 a06/01/17 -8- operate to release, discharge, modify, change or affect the original liability of Borrower under this Note, either in whole or in part. (c) The obligations of Borrower under this Note shall be absolute and Borrower waives any and all rights to offset, deduct or withhold any payments or charges due under this Note for any reasons whatsoever. (d) Borrower waives presentment, demand, notice of protest and nonpayment, notice of default or delinquency, notice of acceleration, notice of costs, expenses or leases or interest thereon, notice of dishonor, diligence in collection or in proceeding against any of the rights or interests in or to properties securing this Note, and the benefit of any exemption under any homestead exemption laws, if applicable. (e) No previous waiver and no failure or delay by Authority in acting with respect to the terms of this Note or the Authority Deed of Trust shall constitute a waiver of any breach, default, or failure or condition under this Note, the Authority Deed of Trust or the obligations secured thereby. A waiver of any term of this Note, the Authority Deed of Trust or of any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver. 8. Attorneys’ Fees and Costs. Borrower agrees that if any amounts due under this Note are not paid when due, Borrower will pay all costs and expenses of collection and reasonable attorneys’ fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed. 9. Joint and Several Obligation. This Note is the joint and several obligation of all makers, sureties, guarantors and endorsers, and shall be binding upon them and their heirs, successors and assigns. 10. Amendments and Modifications. This Note may not be changed orally, but only by an amendment approved by Authority and evidenced in a writing signed by Borrower and by Authority. 11. Authority May Assign. Authority may, at its option, assign its right to receive payment under this Note without necessity of obtaining the consent of the Borrower. 12. Borrower Assignment Prohibited. In no event shall Borrower assign or transfer any portion of this Note without the prior express written consent of Authority, which consent shall not unreasonably be withheld, except pursuant to a transfer that is authorized under Section 15 of the Agreement. 13. Acceleration and Other Remedies. Upon the occurrence of a Default, Authority may, at Authority’s option, declare the outstanding principal amount of this Note, together with the then accrued and unpaid interest thereon and other charges hereunder, and all other sums secured by the Authority Deed of Trust, to be due and payable immediately, and upon such declaration, such principal and interest and other sums shall immediately become and be due and payable without demand or notice, all 546 882/015610-0040 9930825.4 a06/01/17 -9- as further set forth in the Authority Deed of Trust. All costs of collection, including, but not limited to, reasonable attorneys’ fees and all expenses incurred in connection with protection of, or realization on, the security for this Note, may be added to the principal hereunder, and shall accrue interest as provided herein. Authority shall at all times have the right to proceed against any portion of the security for this Note in such order and in such manner as Authority may consider appropriate, without waiving any rights with respect to any of the security. Any delay or omission on the part of Authority in exercising any right hereunder, under the Agreement or under the Authority Deed of Trust shall not operate as a waiver of such right, or of any other right. No single or partial exercise of any right or remedy hereunder or under the Agreement or any other document or agreement shall preclude other or further exercises thereof, or the exercise of any other right or remedy. The acceptance of payment of any sum payable hereunder, or part thereof, after the due date of such payment shall not be a waiver of Authority’s right to either require prompt payment when due of all other sums payable hereunder or to declare a Default for failure to make prompt or complete payment. 14. Alternate Rate. Upon the occurrence of any Default, or upon the maturity hereof (by acceleration or otherwise), the entire unpaid principal sum, at the option of Authority, shall bear interest, from the date of occurrence of such Default or maturity and after judgment and until collection, at the “Alternate Rate”, such rate being the highest interest rate then permitted by law. Interest calculated at the Alternate Rate, when and if applicable, shall be due and payable immediately without notice or demand. Borrower agrees that in the event of any Default, Authority will incur additional expense in servicing the loan evidenced by this Note and will suffer damage and loss resulting from such Default. Borrower agrees that in such event Authority shall be entitled to damages for the detriment caused thereby, which damages are extremely difficult and impractical to ascertain. Therefore, Borrower agrees that the Alternate Rate (as applied to the unpaid principal balance, accrued interest, fees, costs and expenses incurred) is a reasonable estimate of such damages to Authority, and Borrower agrees to pay such sum on demand. 15. Consents. Borrower hereby consents to: (a) any extension (whether one or more) of the time of payment under this Note, (b) the release or surrender or exchange or substitution of all or any part of the security, whether real or personal, or direct or indirect, for the payment hereof, (c) the granting of any other indulgences to Borrower, and (d) the taking or releasing of other or additional parties primarily or contingently liable hereunder. Any such extension, release, surrender, exchange or substitution may be made without notice to Borrower or to any endorser, guarantor or surety hereof, and without affecting the liability of said parties hereunder. 16. Interest Rate Limitation. Authority and Borrower stipulate and agree that none of the terms and provisions contained herein or in any of the loan instruments shall ever be construed to create a contract for the use, forbearance or detention of money requiring payment of interest at a rate in excess of the maximum interest rate permitted to be charged by the laws of the State of California. In such event, if any holder of this Note shall collect monies which are deemed to constitute interest which would otherwise increase the effective interest rate on this Note to a rate in excess of 547 882/015610-0040 9930825.4 a06/01/17 -10- the maximum rate permitted to be charged by the laws of the State of California, all such sums deemed to constitute interest in excess of such maximum rate shall, at the option of such holder, be credited to the payment of the sums due hereunder or returned to Borrower. 17. Successors and Assigns. Whenever “Authority” is referred to in this Note, such reference shall be deemed to include the La Quinta Housing Authority and its successors and assigns, including, without limitation, any successor to its rights, powers, and responsibilities, and any subsequent assignee or holder of this Note. All covenants, provisions and agreements by or on behalf of Borrower, and on behalf of any makers, endorsers, guarantors and sureties hereof which are contained herein shall inure to the benefit of Authority and Authority’s successors and assigns. 18. Miscellaneous. Time is of the essence hereof. This Note shall be governed by and construed under the laws of the State of California except to the extent Federal laws preempt the laws of the State of California. Borrower irrevocably and unconditionally submits to the jurisdiction of the Superior Court of the State of California for the County of Riverside or the United States District Court of the Central District of California, as Authority may deem appropriate, in connection with any legal action or proceeding arising out of or relating to this Note. Borrower also waives any objection regarding personal or in rem jurisdiction or venue. 19. Non-Recourse Obligation. Borrower and its partners shall not be personally liable for the payment of this Note or for the payment of any deficiency established after judicial foreclosure or trustee’s sale; provided, however, that the foregoing shall not in any way affect any rights Authority may have (as a secured party or otherwise) hereunder or under the Agreement or the Authority Deed of Trust to recover directly from Borrower any amounts, or any funds, damages or costs (including without limitation reasonable attorneys’ fees and costs) incurred by Authority as a result of fraud, intentional misrepresentation or bad faith, waste, and any costs and expenses incurred by Authority in connection therewith (including without limitation reasonable attorneys’ fees and costs). 20. Accounting. (a) Accounting Terms and Determinations. Unless otherwise specified herein, (i) all accounting terms used herein shall be interpreted, (ii) all accounting determinations hereunder shall be made, and (c) all books, records and financial statements required to be delivered hereunder shall be prepared, in accordance with GAAP, consistently applied, except for changes approved by Authority. (b) Financial Reporting and Accounting Covenants. Borrower shall permit the representatives of Authority at any time or from time to time, upon three (3) business days’ notice and during normal business hours, to inspect, audit, and copy all of Borrower’s books, records, and accounts relating to the Property. Borrower shall furnish or cause to be furnished to Authority the following: 548 882/015610-0040 9930825.4 a06/01/17 -11- (i) Annual Financial Statement. Borrower shall submit to Authority, on or before May 1 of each year commencing in the first year after the issuance of the first certificate of occupancy for the Project, an Annual Financial Statement, with respect to the Project that has been reviewed by an independent certified public accountant, together with an expressed written opinion of the certified public accountant that such Annual Financial Statement presents the financial position, results of operations, and cash flows of the Project fairly and in accordance with GAAP. (ii) Tax Returns. As soon as available, but in no event later than thirty (30) days after the time of filing with the Internal Revenue Service, the federal tax returns (and supporting schedules, if any) of Borrower. (iii) Audit Reports. Not later than ten (10) days after receipt thereof by Borrower, copies of all reports submitted to Borrower by independent public accountants in connection with each annual, interim or special audit of the financial statements of Borrower, made by such accountants, including the comment letter submitted by such accountants to management in connection with their annual audit. If any such audit report results in Borrower restating Residual Receipts upward for any fiscal year, then Borrower shall accompany delivery of such audit report to Authority with the additional payment to Authority resulting from said restatement pursuant to Section 3 of this Note. If any such audit report results in Borrower restating Residual Receipts downward for any fiscal year, Borrower may carry forward the overpayment made to Authority pursuant to such Section 3 as a credit against payments thereunder in subsequent fiscal years. (c) Late Payment. If any annual payment required pursuant to Section 3 above is not received by Authority within ten (10) calendar days after payment is due, Borrower shall pay to Authority a late charge of five percent (5%) of such payment, such late charge to be immediately due and payable without demand by Authority. (d) Dispute Regarding Annual Financial Statement. If Authority disputes any Annual Financial Statement, Authority shall notify Borrower of such dispute within sixty (60) days after receipt of an Annual Financial Statement and the parties shall cause their representatives to meet and confer concerning the dispute and to use all reasonable efforts to reach a mutually acceptable resolution of the matter in question within thirty (30) days after Authority’s notice of such dispute. If the parties are unable to reach a mutually acceptable resolution within such thirty (30) day period, then, within twenty (20) days after the expiration of such period, Borrower and Authority shall appoint a national firm of certified public accountants to review the dispute and to make a determination as to the matter in question within thirty (30) days after such appointment. If the parties cannot, within ten (10) days, agree upon the firm to be appointed, then, upon the application of either party, such firm shall be appointed by the Presiding Judge of the Superior Court for the County of Riverside, California. Such firm’s determination shall be final and binding upon the parties. Such firm shall have full access to the books, records and accounts of Borrower and the Property. 549 882/015610-0040 9930825.4 a06/01/17 -12- (e) Underpayment. If any audit by Authority reports an underpayment by Borrower on this Note, Borrower shall pay the amount of such underpayment, together with the late charge set forth in Section 20(c) of this Note, to Authority within ten (10) days after written notice thereof to Borrower or, in the event of a dispute, after timely notice to Borrower of the resolution of such dispute by the independent firm of certified public accountants, as the case may be, and if such underpayment amounts to more than five percent (5%) of the disputed payment for the period audited, then, notwithstanding anything to the contrary in this section, Borrower shall pay to Authority, within ten (10) days after written demand, Authority’s reasonable costs and expenses in conducting such audit and exercising its rights under this Section 20 of this Note. Date: , 20__ BORROWER: ___________________________, L.P., a California limited partnership By: Its: 550 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 15A ATTACHMENT NO. 15A FORM OF AUTHORITY DEED OF TRUST (PLANS) [See following document] 551 882/015610-0040 9930825.4 a06/01/17 -1- RECORDING REQUESTED BY: AND WHEN RECORDED RETURN TO: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Attention: Executive Director APN: 104-413-02 and 104-413-13 [Free Rec Government Code Sections 6103 and 27383] DEED OF TRUST WITH ASSIGNMENT OF RENTS (PLANS) NOTE: RIDER ATTACHED TO THIS DEED OF TRUST CONTAINING TERMS INCLUDING SECURITY AGREEMENT AND FIXTURE FILING. This DEED OF TRUST WITH ASSIGNMENT OF RENTS AND RIDER ATTACHED HERETO (“Deed of Trust”), is made __________, _____, between ____________________, a California Limited Partnership, herein called TRUSTOR, whose address is ________________________, La Quinta, CA _____, ______________________ TITLE INSURANCE COMPANY, a California nonprofit public benefit corporation, herein called TRUSTEE, and LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic, herein called BENEFICIARY. WITNESSETH: That Trustor grants to Trustee in trust, with power of sale, Trustor’s estate, dated on or about the date hereof, in that property in the City of La Quinta, State of California, described in Exhibit “A” (the “Property”), together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits for the purpose of securing (1) payment of the sum of TW O MILLION THREE HUNDRED SIXTY-SIX THOUSAND SEVEN HUNDRED TWENTY-TWO DOLLARS ($2,366,722), with interest thereon according to the terms of a promissory note or notes of even date herewith made by Trustor, payable to order of Beneficiary, and extensions or renewals thereof; (2) the performance of each agreement of Trustor incorporated by reference or contained herein; and (3) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or its successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. To protect the security of this Deed of Trust, and with respect to the Property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18, 1964, in the book and at the page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely: COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE Alameda 1288 556 Kings 858 713 Placer 1028 379 Sierra 38 187 Alpine 3 130-31 Lake 437 110 Plumas 166 1307 Siskiyou 506 762 Amador 133 438 Lassen 192 367 Riverside 3778 347 Solano 1287 621 Butte 1330 513 Los Angeles T-3878 874 Sacramento 5039 124 Sonoma 2067 427 Calaveras 185 338 Madera 911 136 San Benito 300 405 Stanislaus 1970 56 Colusa 323 391 Marin 1849 122 San Bernardino 6213 768 Sutter 655 585 Contra Costa 4684 1 Mariposa 90 453 San Francisco A-804 596 Tehama 457 183 Del Norte 101 549 Mendocino 667 99 San Joaquin 2855 283 Trinity 108 595 552 882/015610-0040 9930825.4 a06/01/17 -2- COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE El Dorado 704 635 Merced 1660 753 San Luis Obispo 1311 137 Tulare 2530 108 Fresno 5052 623 Modoc 191 93 San Mateo 4778 175 Tuolumne 177 160 Glenn 469 76 Mono 69 302 Santa Barbara 2065 881 Ventura 2607 237 Humboldt 801 83 Monterey 357 239 Santa Clara 6626 664 Yolo 769 16 Imperial 1189 701 Napa 704 742 Santa Cruz 1638 607 Yuba 398 693 Inyo 165 672 Nevada 363 94 Shasta 800 633 Kern 3756 690 Orange 7182 18 San Diego SERIES 5 Book 1964, Page 149774 shall inure to and bind the parties hereto, with respect to the property above described. Said agreements, terms and provisions contained in said subdivisions A and B (identical in all counties, and printed on pages 3 and 4 hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maximum allowed by law. The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him at his address hereinbefore set forth. SEE RIDERS ATTACHED TO THIS DEED OF TRUST Signature of Trustor STATE OF CALIFORNIA } _________________________________, a California Limited Partnership By: COUNTY OF __________________ } State of California ) County of ) On , before me, , (here insert name and title of the officer) 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 ____________________________ (This area for official notarial seal) 553 882/015610-0040 9930825.4 a06/01/17 -3- DO NOT RECORD The following is a copy of Subdivisions A and B of the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set forth at length therein. A. To protect the security of this Deed of Trust, Trustor agrees: 1) To keep said property in good condition and repair, not to remove or demolish any building thereon; to complete or restore promptly and in a good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor, to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. 2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at the option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney’s fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. 4) To pay: at least ten (10) days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his or her reasonable fees. 5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from the date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: 1) That any award in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such moneys received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. 2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. 3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon, or join in any extension agreement or any agreement subordinating the lien or charge hereof. 4) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as “the person or persons legally entitled thereto”. 5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior 554 882/015610-0040 9930825.4 a06/01/17 -4- to any default by Trustor in payment of any indebtedness secured hereby or in the performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default (beyond any applicable cure period, and during the continuance of such default), Beneficiary may at any time without notice, either in person, by agent, or be a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in its own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney’s fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collecting of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 6) That upon default by Trustor in payment of any indebtedness secured hereby or in the performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. 7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. 8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. DO NOT RECORD REQUEST FOR FULL RECONVEYANCE TO _________________________________, TRUSTEE: The undersigned is the legal owner and holder of the note or notes and of all indebtedness secured by the foregoing Deed of Trust. Said note or notes, together with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, an all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same. Dated _______________________________________ ________________________________________________________ __ ________________________________________________________ __ 555 882/015610-0040 9930825.4 a06/01/17 -5- Please mail Deed of Trust, Note and Reconveyance to ________________________________________________________________________________ Do Not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. 556 882/015610-0040 9930825.4 a06/01/17 -6- 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 _________________________, before me, , (insert name and title of the officer) 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 (Seal) 557 882/015610-0040 9930825.4 a06/01/17 -7- EXHIBIT “A” LEGAL DESCRIPTION OF THE PROPERTY [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 558 882/015610-0040 9930825.4 a06/01/17 -8- RIDER TO DEED OF TRUST WITH ASSIGNMENT OF RENTS This RIDER TO DEED OF TRUST WITH ASSIGNMENT OF RENTS (“Rider”) is executed this ___ day of __________ by _________________________, L.P., a California limited partnership, herein “Trustor,” in favor of the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic, herein “Beneficiary,” the same parties to that certain form Deed of Trust With Assignment of Rents, of even date hereto, to which this Rider is attached. This Rider is made a part of and is incorporated into said Deed of Trust. This Rider shall supersede any conflicting term or provision of the form Deed of Trust to which it is attached. Reference is made to (i) that certain Authority Promissory Note (Plans) executed by Trustor on or about the date set forth above, the repayment of which by Trustor is secured by this Deed of Trust (“Authority Note”), (ii) that certain Affordable Housing and Property Disposition Agreement between Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, and Beneficiary dated for identification purposes only as of ___________, 2017 as assigned to and assumed by the Trustor (collectively, the “Agreement”), and (iii) that certain Affordable Housing Regulatory Agreement, by and between Trustor and Beneficiary, for the benefit of Beneficiary, and recorded concurrently herewith in the Office of the Riverside County Recorder (“Authority Regulatory Agreement”). The parties hereto agree: 1. Property. The estate subject to this Deed of Trust is Trustor’s estate in the real property legally described in the foregoing Deed of Trust to which this Rider is attached (the “Property”). 2. Obligations Secured. Trustor makes this grant and assignment for the purpose of securing the following obligations (“Secured Obligations”): a. Payment to Beneficiary of all indebtedness at any time owing under the terms of the Authority Note; b. Payment and performance of all obligations of Trustor under this Deed of Trust; c. Payment and performance of all obligations of Trustor under the Agreement and the Authority Regulatory Agreement. d. Payment and performance of all future advances and other obligations of Trustor or any other person, firm, or entity with the approval of Trustor, may agree to pay and/or perform (whether as principal, surety or guarantor) for the benefit of Beneficiary, when the obligation is evidenced by a writing which recites that it is secured by this Deed of Trust; and 559 882/015610-0040 9930825.4 a06/01/17 -9- e. All modifications, extensions and renewals of any of the obligations secured hereby, however evidenced. 3. Obligations. The term “obligations” is used herein in its broadest and most comprehensive sense and shall be deemed to include, without limitation, all interest and charges, prepayment charges, late charges and fees at any time accruing or assessed on any of the Secured Obligations. 4. Incorporation. All terms of the Authority Note, Agreement, and Authority Regulatory Agreement, and the Secured Obligations are incorporated herein by this reference. All persons who may have or acquire an interest in the Property shall be deemed to have notice of the terms of all of the foregoing documents. 5. Mortgagee-in-Possession. Neither the assignment of rents set forth in the Deed of Trust nor the exercise by Beneficiary of any of its rights or remedies hereunder shall be deemed to make Beneficiary a “mortgagee-in-possession” or otherwise liable in any manner with respect to the Property, unless Beneficiary, in person or by agent, assumes actual possession thereof. Nor shall appointment of a receiver for the Property by any court at the request of Beneficiary or by agreement with Trustor, or the entering into possession of the Property by such receiver, be deemed to make Beneficiary a “mortgagee-in-possession” or otherwise liable in any manner with respect to the Property. 6. No Cure. In the event Beneficiary collects and receives any rents under the Deed of Trust upon any default hereof, such collection or receipt shall in no way constitute a curing of the default, except if and to the extent the same are sufficient to cure all monetary defaults and no other defaults then exist. 7. Possession Upon Default. Upon the occurrence of and during the continuation of a default, Beneficiary, after having given notice and the applicable cure periods having expired with the default having not been cured (hereinafter, a “default”), may, at its option, without any action on its part being required and without in any way waiving such default, take possession of the Property in accordance with applicable law and have, hold, manage, lease and operate the same, on such terms and for such period of time as Beneficiary may deem proper, and may collect and receive all rents and profits, with full power to make, from time to time, all commercially reasonable alterations, renovations, repairs or replacements thereto as may seem proper to Beneficiary, and to apply such rents and profits to the payment of (a) the cost of all such alterations, renovations, repairs and replacements, and all costs and expenses incident to taking and retaining possession of the Property, and the management and operation thereof, and keeping the same properly insured; (b) all taxes, charges, claims, assessments, and any other liens which may be prior in lien or payment of the Authority Note, and premiums for insurance, with interest on all such items; and (c) the indebtedness secured hereby, together with all costs and attorney’s fees, in such order or priority as to any of such items as Beneficiary in its sole discretion may determine, any statute, law, custom or use to the contrary notwithstanding. Any amounts received by Beneficiary or its agents in the performance of any acts prohibited by the terms of 560 882/015610-0040 9930825.4 a06/01/17 -10- this assignment, including, but not limited to, any amounts received in connection with any cancellation, modification or amendment of any lease prohibited by the terms of this assignment and any rents and profits received by Trustor after the occurrence of a default shall be held by Trustor as trustee for Beneficiary and all such amounts shall be accounted for to Beneficiary and shall not be commingled with other funds of the Trustor. Any person receiving any portion of such trust funds shall receive the same in trust for Beneficiary as if such person had actual or constructive notice that such funds were impressed with a trust in accordance therewith. 8. Receiver. In addition to any and all other remedies of Beneficiary set forth under this Deed of Trust or permitted at law or in equity, if a default shall have occurred and not have been cured within any applicable cure period, Beneficiary, to the extent permitted by law and without regard to the value, adequacy or occupancy of the security for the Note and other sums secured hereby, shall be entitled as a matter of right if it so elects to the appointment of a receiver to enter upon and take possession of the Property and to collect all rents and profits and apply the same as the court may direct, and such receiver may be appointed by any court of competent jurisdiction by ex parte application and without notice, notice of hearing being hereby expressly waived. The expenses, including receiver’s fees, attorneys’ fees, costs and agent’s compensation, incurred pursuant to the power herein contained shall be secured by this Deed of Trust. 9. Notice to Beneficiary. Notices to Beneficiary shall be sent to Beneficiary addressed to: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Attention: Executive Director 10. Notice to Limited Partner; Limited Partner Cure Rights. Beneficiary shall give Trustor’s limited partner written notice of any default under the Loan Documents, and the cure periods contained in this Paragraph 10 shall commence on the effective date of any such notice, at the following address: … With copies to: … Notwithstanding anything to the contrary set forth in this Deed of Trust, Beneficiary shall not exercise any right hereunder without providing the limited partner of Trustor with not less than thirty (30) days prior written notice and right to cure any default giving rise to the exercise of said remedy (or such longer period as reasonably necessary provided the limited partner commences to cure the default within the initial 30 days and diligently prosecutes such cure to completion). Beneficiary agrees that any cure tendered by the limited partner of Trustor shall be accepted or rejected on the same terms and conditions as if tendered directly by Trustor. 561 882/015610-0040 9930825.4 a06/01/17 -11- 11. Subordination Acknowledgement. Beneficiary hereby acknowledges that the loan secured by this Deed of Trust is also subordinate to the extended use agreement required to be executed by Borrower pursuant to Section 42(h)(6)(B) of the Internal Revenue Code, for purposes of the low-income housing tax credits to be allocated to Trustor. In addition, Beneficiary hereby acknowledges that the loan secured by this Deed of Trust is further subordinate to Section 42(h)(6)(e)(ii) of the Internal Revenue Code, which prohibits the eviction or termination of a tenancy, other than for good cause, of an existing tenant of any low-income housing tax credit unit or any increase in the gross rent with respect to such unit, not otherwise permitted under Section 42, for a period of three (3) years after the date the Property is acquired by Beneficiary through foreclosure or instrument in lieu of foreclosure. [signatures on next page] 562 882/015610-0040 9930825.4 a06/01/17 -12- IN WITNESS WHEREOF, Trustor has executed this Rider on the date of Trustor’s acknowledgment herein below, to be effective for all purposes as of the day and year first set forth above. TRUSTOR: ______________________, L.P., a California Limited Partnership By: 563 882/015610-0040 9930825.4 a06/01/17 -13- 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 Riverside ) On _________________________, before me, , (insert name and title of the officer) 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 (Seal) 564 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 15B ATTACHMENT NO. 15B FORM OF AUTHORITY DEED OF TRUST (PROPERTY AND CONSTRUCTION) [See following document] 565 882/015610-0040 9930825.4 a06/01/17 -1- RECORDING REQUESTED BY: AND WHEN RECORDED RETURN TO: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Attention: Executive Director APN: 104-413-02 and 104-413-13 [Free Rec Government Code Sections 6103 and 27383] DEED OF TRUST WITH ASSIGNMENT OF RENTS (PROPERTY AND CONSTRUCTION) NOTE: RIDER ATTACHED TO THIS DEED OF TRUST CONTAINING TERMS INCLUDING SECURITY AGREEMENT AND FIXTURE FILING. This DEED OF TRUST WITH ASSIGNMENT OF RENTS AND RIDER ATTACHED HERETO (“Deed of Trust”), is made __________, _____, between ____________________, a California Limited Partnership, herein called TRUSTOR, whose address is ________________________, La Quinta, CA _____, ______________________ TITLE INSURANCE COMPANY, a California nonprofit public benefit corporation, herein called TRUSTEE, and LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic, herein called BENEFICIARY. WITNESSETH: That Trustor grants to Trustee in trust, with power of sale, Trustor’s estate, dated on or about the date hereof, in that property in the City of La Quinta, State of California, described in Exhibit “A” (the “Property”), together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits for the purpose of securing (1) payment of the sum of FIFTEEN MILLION FIFTY-EIGHT THOUSAND TWO HUNDRED EIGHTY-EIGHT DOLLARS ($15,058,288), with interest thereon according to the terms of a promissory note or notes of even date herewith made by Trustor, payable to order of Beneficiary, and extensions or renewals thereof; (2) the performance of each agreement of Trustor incorporated by reference or contained herein; and (3) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or its successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. To protect the security of this Deed of Trust, and with respect to the Property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18, 1964, in the book and at the page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely: COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE Alameda 1288 556 Kings 858 713 Placer 1028 379 Sierra 38 187 Alpine 3 130-31 Lake 437 110 Plumas 166 1307 Siskiyou 506 762 Amador 133 438 Lassen 192 367 Riverside 3778 347 Solano 1287 621 Butte 1330 513 Los Angeles T-3878 874 Sacramento 5039 124 Sonoma 2067 427 Calaveras 185 338 Madera 911 136 San Benito 300 405 Stanislaus 1970 56 Colusa 323 391 Marin 1849 122 San Bernardino 6213 768 Sutter 655 585 Contra Costa 4684 1 Mariposa 90 453 San Francisco A-804 596 Tehama 457 183 Del Norte 101 549 Mendocino 667 99 San Joaquin 2855 283 Trinity 108 595 566 882/015610-0040 9930825.4 a06/01/17 -2- COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE El Dorado 704 635 Merced 1660 753 San Luis Obispo 1311 137 Tulare 2530 108 Fresno 5052 623 Modoc 191 93 San Mateo 4778 175 Tuolumne 177 160 Glenn 469 76 Mono 69 302 Santa Barbara 2065 881 Ventura 2607 237 Humboldt 801 83 Monterey 357 239 Santa Clara 6626 664 Yolo 769 16 Imperial 1189 701 Napa 704 742 Santa Cruz 1638 607 Yuba 398 693 Inyo 165 672 Nevada 363 94 Shasta 800 633 Kern 3756 690 Orange 7182 18 San Diego SERIES 5 Book 1964, Page 149774 shall inure to and bind the parties hereto, with respect to the property above described. Said agreements, terms and provisions contained in said subdivisions A and B (identical in all counties, and printed on pages 3 and 4 hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maximum allowed by law. The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him at his address hereinbefore set forth. SEE RIDERS ATTACHED TO THIS DEED OF TRUST Signature of Trustor STATE OF CALIFORNIA } _________________________________, a California Limited Partnership By: COUNTY OF __________________ } State of California ) County of ) On , before me, , (here insert name and title of the officer) 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 ____________________________ (This area for official notarial seal) 567 882/015610-0040 9930825.4 a06/01/17 -3- DO NOT RECORD The following is a copy of Subdivisions A and B of the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set forth at length therein. A. To protect the security of this Deed of Trust, Trustor agrees: 1) To keep said property in good condition and repair, not to remove or demolish any building thereon; to complete or restore promptly and in a good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor, to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. 2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at the option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney’s fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. 4) To pay: at least ten (10) days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his or her reasonable fees. 5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from the date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: 1) That any award in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such moneys received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. 2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. 3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon, or join in any extension agreement or any agreement subordinating the lien or charge hereof. 4) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as “the person or persons legally entitled thereto”. 5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior 568 882/015610-0040 9930825.4 a06/01/17 -4- to any default by Trustor in payment of any indebtedness secured hereby or in the performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default (beyond any applicable cure period, and during the continuance of such default), Beneficiary may at any time without notice, either in person, by agent, or be a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in its own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney’s fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collecting of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 6) That upon default by Trustor in payment of any indebtedness secured hereby or in the performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. 7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. 8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. DO NOT RECORD REQUEST FOR FULL RECONVEYANCE TO _________________________________, TRUSTEE: The undersigned is the legal owner and holder of the note or notes and of all indebtedness secured by the foregoing Deed of Trust. Said note or notes, together with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, an all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same. Dated _______________________________________ ________________________________________________________ __ ________________________________________________________ __ 569 882/015610-0040 9930825.4 a06/01/17 -5- Please mail Deed of Trust, Note and Reconveyance to ________________________________________________________________________________ Do Not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. 570 882/015610-0040 9930825.4 a06/01/17 -6- 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 _________________________, before me, , (insert name and title of the officer) 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 (Seal) 571 882/015610-0040 9930825.4 a06/01/17 -7- EXHIBIT “A” LEGAL DESCRIPTION OF THE PROPERTY [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 572 882/015610-0040 9930825.4 a06/01/17 -8- RIDER TO DEED OF TRUST WITH ASSIGNMENT OF RENTS This RIDER TO DEED OF TRUST WITH ASSIGNMENT OF RENTS (“Rider”) is executed this ___ day of __________ by _________________________, L.P., a California limited partnership, herein “Trustor,” in favor of the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic, herein “Beneficiary,” the same parties to that certain form Deed of Trust With Assignment of Rents, of even date hereto, to which this Rider is attached. This Rider is made a part of and is incorporated into said Deed of Trust. This Rider shall supersede any conflicting term or provision of the form Deed of Trust to which it is attached. Reference is made to (i) that certain Authority Promissory Note (Property and Construction) executed by Trustor on or about the date set forth above, the repayment of which by Trustor is secured by this Deed of Trust (“Authority Note”), (ii) that certain Affordable Housing and Property Disposition Agreement between Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, and Beneficiary dated for identification purposes only as of ___________, 2017 as assigned to and assumed by the Trustor (collectively, the “Agreement”), and (iii) that certain Affordable Housing Regulatory Agreement, by and between Trustor and Beneficiary, for the benefit of Beneficiary, and recorded concurrently herewith in the Office of the Riverside County Recorder (“Authority Regulatory Agreement”). The parties hereto agree: 1. Property. The estate subject to this Deed of Trust is Trustor’s estate in the real property legally described in the foregoing Deed of Trust to which this Rider is attached (the “Property”). 2. Obligations Secured. Trustor makes this grant and assignment for the purpose of securing the following obligations (“Secured Obligations”): a. Payment to Beneficiary of all indebtedness at any time owing under the terms of the Authority Note; b. Payment and performance of all obligations of Trustor under this Deed of Trust; c. Payment and performance of all obligations of Trustor under the Agreement and the Authority Regulatory Agreement. d. Payment and performance of all future advances and other obligations of Trustor or any other person, firm, or entity with the approval of Trustor, may agree to pay and/or perform (whether as principal, surety or guarantor) for the benefit of Beneficiary, when the obligation is evidenced by a writing which recites that it is secured by this Deed of Trust; and 573 882/015610-0040 9930825.4 a06/01/17 -9- e. All modifications, extensions and renewals of any of the obligations secured hereby, however evidenced. 3. Obligations. The term “obligations” is used herein in its broadest and most comprehensive sense and shall be deemed to include, without limitation, all interest and charges, prepayment charges, late charges and fees at any time accruing or assessed on any of the Secured Obligations. 4. Incorporation. All terms of the Authority Note, Agreement, and Authority Regulatory Agreement, and the Secured Obligations are incorporated herein by this reference. All persons who may have or acquire an interest in the Property shall be deemed to have notice of the terms of all of the foregoing documents. 5. Mortgagee-in-Possession. Neither the assignment of rents set forth in the Deed of Trust nor the exercise by Beneficiary of any of its rights or remedies hereunder shall be deemed to make Beneficiary a “mortgagee-in-possession” or otherwise liable in any manner with respect to the Property, unless Beneficiary, in person or by agent, assumes actual possession thereof. Nor shall appointment of a receiver for the Property by any court at the request of Beneficiary or by agreement with Trustor, or the entering into possession of the Property by such receiver, be deemed to make Beneficiary a “mortgagee-in-possession” or otherwise liable in any manner with respect to the Property. 6. No Cure. In the event Beneficiary collects and receives any rents under the Deed of Trust upon any default hereof, such collection or receipt shall in no way constitute a curing of the default, except if and to the extent the same are sufficient to cure all monetary defaults and no other defaults then exist. 7. Possession Upon Default. Upon the occurrence of and during the continuation of a default, Beneficiary, after having given notice and the applicable cure periods having expired with the default having not been cured (hereinafter, a “default”), may, at its option, without any action on its part being required and without in any way waiving such default, take possession of the Property in accordance with applicable law and have, hold, manage, lease and operate the same, on such terms and for such period of time as Beneficiary may deem proper, and may collect and receive all rents and profits, with full power to make, from time to time, all commercially reasonable alterations, renovations, repairs or replacements thereto as may seem proper to Beneficiary, and to apply such rents and profits to the payment of (a) the cost of all such alterations, renovations, repairs and replacements, and all costs and expenses incident to taking and retaining possession of the Property, and the management and operation thereof, and keeping the same properly insured; (b) all taxes, charges, claims, assessments, and any other liens which may be prior in lien or payment of the Authority Note, and premiums for insurance, with interest on all such items; and (c) the indebtedness secured hereby, together with all costs and attorney’s fees, in such order or priority as to any of such items as Beneficiary in its sole discretion may determine, any statute, law, custom or use to the contrary notwithstanding. Any amounts received by Beneficiary or its agents in the performance of any acts prohibited by the terms of 574 882/015610-0040 9930825.4 a06/01/17 -10- this assignment, including, but not limited to, any amounts received in connection with any cancellation, modification or amendment of any lease prohibited by the terms of this assignment and any rents and profits received by Trustor after the occurrence of a default shall be held by Trustor as trustee for Beneficiary and all such amounts shall be accounted for to Beneficiary and shall not be commingled with other funds of the Trustor. Any person receiving any portion of such trust funds shall receive the same in trust for Beneficiary as if such person had actual or constructive notice that such funds were impressed with a trust in accordance therewith. 8. Receiver. In addition to any and all other remedies of Beneficiary set forth under this Deed of Trust or permitted at law or in equity, if a default shall have occurred and not have been cured within any applicable cure period, Beneficiary, to the extent permitted by law and without regard to the value, adequacy or occupancy of the security for the Note and other sums secured hereby, shall be entitled as a matter of right if it so elects to the appointment of a receiver to enter upon and take possession of the Property and to collect all rents and profits and apply the same as the court may direct, and such receiver may be appointed by any court of competent jurisdiction by ex parte application and without notice, notice of hearing being hereby expressly waived. The expenses, including receiver’s fees, attorneys’ fees, costs and agent’s compensation, incurred pursuant to the power herein contained shall be secured by this Deed of Trust. 9. Notice to Beneficiary. Notices to Beneficiary shall be sent to Beneficiary addressed to: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Attention: Executive Director 10. Notice to Limited Partners; Limited Partner Cure Rights. Beneficiary shall give Trustor’s limited partner written notice of any default under the Loan Documents, and the cure periods contained in this Paragraph 10 shall commence on the effective date of any such notice, at the following address: … With copies to: … Notwithstanding anything to the contrary set forth herein, Beneficiary shall not exercise any right under this Deed of Trust without providing the limited partner of Trustor with not less than thirty (30) days prior written notice and right to cure any default giving rise to the exercise of said remedy (or such longer period as reasonably necessary provided the limited partner commences to cure the default within the initial 30 days and diligently prosecutes such cure to completion). Beneficiary agrees that any cure tendered by the limited partner of Trustor shall be accepted or rejected on the same terms and conditions as if tendered directly by Trustor. 575 882/015610-0040 9930825.4 a06/01/17 -11- 11. Subordination Acknowledgement. Beneficiary hereby acknowledges that the loan secured by this Deed of Trust is also subordinate to the extended use agreement required to be executed by Borrower pursuant to Section 42(h)(6)(B) of the Internal Revenue Code, for purposes of the low-income housing tax credits to be allocated to Trustor. In addition, Beneficiary hereby acknowledges that the loan secured by this Deed of Trust is further subordinate to Section 42(h)(6)(e)(ii) of the Internal Revenue Code, which prohibits the eviction or termination of a tenancy, other than for good cause, of an existing tenant of any low-income housing tax credit unit or any increase in the gross rent with respect to such unit, not otherwise permitted under Section 42, for a period of three (3) years after the date the Property is acquired by Beneficiary through foreclosure or instrument in lieu of foreclosure. [signatures on next page] 576 882/015610-0040 9930825.4 a06/01/17 -12- IN WITNESS WHEREOF, Trustor has executed this Rider on the date of Trustor’s acknowledgment herein below, to be effective for all purposes as of the day and year first set forth above. TRUSTOR: ______________________, L.P., a California Limited Partnership By: 577 882/015610-0040 9930825.4 a06/01/17 -13- 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 Riverside ) On _________________________, before me, , (insert name and title of the officer) 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 (Seal) 578 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 16 ATTACHMENT NO. 16 PROJECT BUDGET [See following pages] 579 882/015610-0040 9930825.4 a06/01/17 -1- PROJECT BUDGET SOURCES Existing USDA 515 Loan $628,640 Plan Loan $2,366,722 Property and Construction Loan $15,058,288 Tax Credit Equity $28,908,896 Deferred Developer Fee/General Partner Equity $7,526 Total Sources $46,970,072 USES OF FUNDS LAND COST/ACQUISITION Existing Structure Value $5,500,000 Adjacent Vacant Site $1,260,000 Carrying Costs $25,000 Legal & Closing Costs Off-Site Improvements Total Acquisition Cost - $6,785,000 REHABILITATION Site Work $4,806,182 Structures $6,371,231 General Requirements $558,871 Contractor Insurance & Bond $250,000 Contractor Overhead $307,379 Contractor Profit $307,379 Total Rehabilitation Cost $12,601,042 NEW CONSTRUCTION - Site Work and Utilities $3,170,167 Structures $10,387,777 General Requirements $574,580 Contractor Insurance & Bond $404,378 Contractor Overhead $372,843 Contractor Profit $335,078 Total New Construction Costs $15,244,823 ARCHITECTURAL FEES Design $503,140 Supervision $125,785 Total Architectural Costs $628,925 Survey and Engineering, incl testing $340,000 CONSTR. INTEREST & FEES 580 882/015610-0040 9930825.4 a06/01/17 -2- Construction Loan Interest During Construction $955,455 Construction Loan Interest Post Construction $530,809 Construction loan fee and expenses $229,053 Taxes $10,000 Insurance $103,946 Title and Recording $50,000 Total Construction Interest and Fees $1,879,263 PERMANENT FINANCING Loan Fees $0 Title and Recording $20,000 Other Financing Costs -- legal $10,000 Total Permanent Financing Costs $30,000 LEGAL FEES Lender Legal Costs Paid by Applicant $35,000 Other - Owner Legal $40,000 Total Attorney Costs $75,000 RESERVES Operating Reserve @ 6 mo ops $372,269 Current Reserve Balance $700,767 Section 8 reserve Total Reserve Costs $1,073,036 Total Appraisal Costs $10,000 Total Construction Contingency Costs $4,044,691 OTHER Tax Credit App./Alloc./Monitoring fees $154,033 Local Development Impact Fees $1,269,259 Permit Processing Fees and utility hookups $500,000 Market Study $10,000 Marketing & Lease up $30,000 Environmental Review $70,000 Staking and Inspections $100,000 Furnishings $25,000 Relocation $375,000 Soft Cost Contingency $235,000 Total Other Costs $2,768,292 Total Project Cost $45,480,072 DEVELOPER COSTS Developer Overhead/Profit $1,400,000 Total Developer Costs $1,400,000 TOTAL PROJECT COST Syndication Costs 581 882/015610-0040 9930825.4 a06/01/17 -3- Legal - Syndication/Organization $40,000 Audit $10,000 Consultant - Syndication $40,000 Total Syndication Costs $90,000 TOTAL PROJECT COSTS INCL. SYNDICATION $46,970,072 582 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 17 ATTACHMENT NO. 17 FORM OF AUTHORITY REGULATORY AGREEMENT [See following document] 583 882/015610-0040 9930825.4 a06/01/17 -1- REQUESTED BY AND WHEN RECORDED MAIL TO: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Attention: Executive Director This document is exempt from a recording fee pursuant to Government Code Sections 6103 and 27383. AFFORDABLE HOUSING REGULATORY AGREEMENT This AFFORDABLE HOUSING REGULATORY AGREEMENT (this “Regulatory Agreement”), dated for purposes of identification only as of ________________ (the “Effective Date of Regulatory Agreement”), is entered by and between the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic, (the “Authority”), and __________________________, a California limited partnership (the “Developer”). RECITALS The following recitals are a substantive part of this Regulatory Agreement; all capitalized terms set forth in the Recitals shall have the meanings ascribed to such terms in Section 1 hereof. A. Authority is a public body, corporate and politic. B. Authority was established to increase, improve, and preserve the City of La Quinta’s supply of low and moderate income housing. C. Authority owns fee title to that certain real property located in the City of La Quinta, County of Riverside, State of California more particularly described in Exhibit “A”, which is attached hereto and incorporated herein by this reference (the “Property”). The Property is comprised of the WSA Property and the Unimproved Property. D. Developer is controlled by an experienced owner, developer and manager of affordable housing for low and moderate-income families. E. Authority entered into an Affordable Housing and Property Disposition Agreement with Coachella Valley Housing Coalition, the _________ general partner of Developer, dated as of _____________, 2017 (“Agreement”). F. The Agreement provides for Authority to sell the Property to Developer, and for Developer to rehabilitate the improvements on the WSA Property, 584 882/015610-0040 9930825.4 a06/01/17 -2- construct new apartment units on the WSA Property and Unimproved Property, and thereafter operate a one hundred forty (140) unit multifamily apartment project with all but two of such units restricted for occupancy by low and very low income households (the “Project”). The Agreement further provides that the Parties execute and record this Regulatory Agreement against the Property. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: SECTION 1. DEFINITIONS. “40% Very Low Income Household” means those person(s) or households whose income does not exceed forty percent (40%) of AMI, adjusted for household size. “40% Very Low Income Units” means the fifty (50) Affordable Units that are required to be rented to and occupied by 40% Very Low Income Households. “60% Low Income Household” means those person(s) or households whose income does not exceed sixty percent (60%) of AMI, adjusted for household size. “60% Low Income Units” means the four (4) Affordable Units that are required to be rented to and occupied by 60% Low Income Households. “Additional Regulatory Agreements” means the Tax Credit Regulatory Agreement and any other regulatory agreement Developer is required to execute as a condition to obtaining financing to develop and/or operate the Project. “Affiliate” means any person or entity directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with Developer which, if Developer is a partnership or limited liability company, shall include each of the constituent members or partners, respectively thereof. The term “control” as used in the immediately preceding sentence, means, with respect to a person that is a corporation, the right to the exercise, directly or indirectly, of more than fifty percent (50%) of the voting rights attributable to the shares of the controlled corporation, and, with respect to a person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled person. “Affordability Period” means the period commencing on the date on which this Regulatory Agreement is recorded in the Official Records and ending on the fifty- seventh (57th) anniversary of said date. “Affordable Rent” means the maximum Monthly Rent that may be charged to and paid by Extremely Low Income Households, 40% Very Low Income Households, Very Low Income Households, or 60% Low Income Households, as applicable, for the Affordable Units, as annually determined pursuant to Health and Safety Code Section 50053(b) and based on a household size of two (2) persons, and the regulations promulgated pursuant to and incorporated therein. 585 882/015610-0040 9930825.4 a06/01/17 -3- “Affordable Units” means the one hundred thirty-eight (138) one (1) bedroom, one (1) bath rental units in the Project. “Agreement” is defined in Recital E hereof. “AMI” means the median family income (adjusted for household size) for the Riverside County area promulgated and published annually by HCD pursuant to Title 25, Section 6932 of the California Code of Regulations. If HCD ceases to annually publish median incomes, the Parties shall agree upon an adequate substituted manner for determining AMI. “Annual Project Revenue” has the meaning ascribed thereto in each of the Authority Notes. “Approved Financing” means the financing approved by Authority pursuant to the Agreement, as set forth in the Project Budget attached to the Agreement, obtained by Developer for the acquisition of the Property and the construction and ownership of the Project. In addition, “Approved Financing” shall include any refinancing of the Approved Financing which has been approved by Authority. “Approved Pro Forma” means that certain pro forma created in connection with the Project Budget attached to the Agreement. “Authority” means the La Quinta Housing Authority, a public body, corporate and politic, and any assignee of or successor to its rights, powers and responsibilities. “Authority Deeds of Trust” means those certain deeds of trust executed by Developer, as “Trustor,” in favor of Authority, as “Beneficiary,” securing Developer’s repayment under the Authority Notes. “Authority Loans” means the loans provided by Authority to Developer pursuant to the Agreement to assist the Developer acquire the Property and with the costs Developer incurs in developing the Project. “Authority Notes” means those certain Authority Promissory Notes executed by Developer on or about ___________, that evidence Developer’s obligation to repay the Authority Loans. “Capital Replacement Reserve” means a capital replacement reserve for the Project (i) initially consisting of not less than _________________ Dollars ($______) (or such greater amount required under any Additional Regulatory Agreement, under the Partnership Agreement, or by any lender of a Project-related loan that has been approved by Authority) set aside in a separate interest-bearing trust account, commencing upon the rental of the newly constructed Affordable Units, and (ii) replenished from annual deposits of __________________ Dollars ($___) per Unit (e.g., $__________) of Annual Project Revenue, adjusted annually by the CPI Adjustment (unless otherwise agreed to by Developer and Authority) or as required under the Partnership Agreement (or such greater amount required under any 586 882/015610-0040 9930825.4 a06/01/17 -4- Additional Regulatory Agreement, or under the Partnership Agreement). Notwithstanding the foregoing, commencing as of Effective Date of Regulatory Agreement, and until the rental of any newly constructed Affordable Units, the Capital Replacement Reserve means the capital replacement reserve funds for the Existing WSA Units that were transferred to Developer by Authority in connection with Developer’s acquisition of the WSA Property from Authority, in the amount of $____________. “Certification of Continuing Program Compliance” means an annual recertification form substantially in the form attached hereto and incorporated herein as Exhibit E. “Certificate of Occupancy” means the final certificate of occupancy issued by the City for the completion of construction of the Project. “City” means the City of La Quinta, a California municipal corporation and charter city. “Construction Financing” means a loan in an amount not less than ____________________ Dollars ($_____________) from an Institutional Lender to be secured by a deed of trust. “CPI Adjustment” means the percentage increase in the cost of living index, as measured by the Consumer Price Index for all urban consumers, Los Angeles- Riverside-Orange statistical area, all items (1982-84 = 100) published by the United States Department of Labor, Bureau of Labor Statistics (“CPI”) between the CPI figure in effect as of the date on which the Certificate of Occupancy is issued and the CPI figure in effect as of the date on which an adjustment is made. If such index is discontinued or revised, such other index with which such index is replaced (or if not replaced, another index which reasonably reflects and monitors consumer prices) shall be used in order to obtain substantially the same results as would have been obtained if the discontinued index had not been discontinued or revised. If the CPI is changed so that the base year is other than 1982-84, the CPI shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. “Default” means the failure of a Party to perform any action or covenant required by the Agreement or hereunder within the time periods provided in the Agreement or hereunder, respectively, following notice and opportunity to cure, as set forth in Section 13.1 of the Agreement and Section 16.01 hereof, respectively. “Developer” means _____________________, a California limited partnership, and any permitted assignees of Developer. “Effective Date of Regulatory Agreement” is defined in the initial paragraph hereof. 587 882/015610-0040 9930825.4 a06/01/17 -5- “Eligible Tenant” means a household which satisfies all of the following requirements: (i) at least one member of the household is a “qualifying resident” or “senior citizen” (as those terms are defined in California Civil Code Section 51.3(b)(1)) that is fifty-five (55) years of age or older; (ii) each other member of the household is either a “qualifying resident” or “senior citizen” that is fifty-five (55) years of age or older, or is a “qualified permanent resident” or “permitted health care resident” within the meaning of California Civil Code section 51.3(b)(2), (3), and (7); and (iii) such household qualifies as (a) with respect to an Extremely Low Income Unit, an Extremely Low Income Household, (b) with respect to a 40% Very Low Income Unit, a 40% Very Low Income Household, (c) with respect to a Very Low Income Unit, a Very Low Income Household, and with respect to a 60% Low Income Unit, a 60% Low Income Household. “Environmental Laws” means (i) Sections 25115, 25117, 25122.7 or 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law)), (ii) Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) Article 9 or Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (vi) Section 311 of the Clean Water Act (33 U.S.C. §1317), (vii) Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or (viii) Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601 et seq. “Executive Director” means the person duly appointed to the position of Executive Director of Authority, or his or her designee. The Executive Director shall represent Authority in all matters pertaining to this Regulatory Agreement. Whenever a reference is made herein to an action or approval to be undertaken by Authority, the Executive Director is authorized to act unless this Regulatory Agreement specifically provides otherwise or the context should otherwise require. “Existing WSA Units” means the seventy-three (73) apartment units existing on the WSA Property as of the Effective Date of Regulatory Agreement. “Extremely Low Income Household” means those person(s) or households whose income does not exceed the qualifying limit for “extremely low income households”, adjusted for household size, pursuant to Health and Safety Code Section 50105, which, as of the date of this Regulatory Agreement means persons and families whose income does not exceed the qualifying limit for extremely low income households, adjusted for household size, as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, as published from time to time by HCD in the California Code of Regulations. “Extremely Low Income Units” means the twenty-four (24) Affordable Units that are required to be rented to and occupied by Very Low Income Households. 588 882/015610-0040 9930825.4 a06/01/17 -6- “Governmental Requirements” means all laws, ordinances, statutes, codes, rules, regulations, orders and decrees, of the United States, the State of California, the County of Riverside, the City, and any other political subdivision, agency, instrumentality, or other entity exercising jurisdiction over Authority, Developer, the Project, or the Property. “Hazardous Materials” means any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a “hazardous waste”, “acutely hazardous waste”, “extremely hazardous waste”, or “restricted hazardous waste” under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a “hazardous material”, “hazardous substance”, or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as “hazardous” or “extremely hazardous” pursuant to Article 11 of Title 22 of the California Code of Regulations, Chapter 20, (ix) designated as “hazardous substances” pursuant to Section 311 of the Clean Water Act (33 U.S.C. Section 1317), (x) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq. (42 U.S.C. Section 6903), (xi) defined as “hazardous substances” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. Section 9601 et seq., (xii) methyl-tertiary butyl ether, (xiii) perchlorate, or (xiv) any other substance, whether in the form of a solid, liquid, gas or any other form whatsoever, which by any Governmental Requirements either requires special handling in its use, transportation, generation, collection, storage, handling, treatment or disposal, or is defined as “hazardous” or harmful to the environment. For purposes hereof, “Hazardous Materials” excludes materials and substances in quantities as are commonly used in constructing and operating apartment complexes, provided such materials and substances are used in accordance with all applicable laws. “Hazardous Materials Contamination” means the contamination (whether presently existing or hereafter occurring) of the improvements, facilities, soil, groundwater, air or other elements on, in or of the Property by Hazardous Materials, or the contamination of the buildings, facilities, soil, groundwater, air or other elements on, in or of any other property as a result of Hazardous Materials at any time emanating from the Property. “HCD” means the California Department of Housing and Community Development. 589 882/015610-0040 9930825.4 a06/01/17 -7- “HUD” means the United States Department of Housing and Urban Development. “Institutional Lender” means any of the following institutions having assets or deposits in the aggregate of not less than One Hundred Million Dollars ($100,000,000): California chartered bank; a bank created and operated under and pursuant to the laws of the United States of America; an “incorporated admitted insurer” (as that term is used in Section 1100.1 of the California Insurance Code); a “foreign (other state) bank” (as that term is defined in Section 1700(1) of the California Financial Code); a federal savings and loan association (Cal. Fin. Code Section 8600); a commercial finance lender (within the meaning of Sections 2600 et seq. of the California Financial Code); a “foreign (other nation) bank” provided it is licensed to maintain an office in California, is licensed or otherwise authorized by another state to maintain an agency or branch office in that state, or maintains a federal agency or federal branch in any state (Section 1716 of the California Financial Code); a bank holding company or a subsidiary of a bank holding company which is not a bank (Section 3707 of the California Financial Code); a trust company, savings and loan association, insurance company, investment banker; college or university; pension or retirement fund or system, either governmental or private, or any pension or retirement fund or system of which any of the foregoing shall be trustee, provided the same be organized under the laws of the United States or of any state thereof; and a Real Estate Investment Trust, as defined in Section 856 of the Internal Revenue Code of 1986, as amended, provided such trust is listed on either the American Stock Exchange or the New York Stock Exchange. Each of _____________ and ____________________ are hereby deemed to be an Institutional Lender. “Legal Description” means that certain legal description of the Property which is attached hereto and incorporated herein as Exhibit A. “Management Units” means two (2) dwelling units located or to be located on the WSA Property that are not Affordable Units. The Management Units shall be used for on-site management and maintenance personnel. Each household occupying the Management Units shall, upon initial occupancy, qualify as “persons and families of moderate income” pursuant to Health and Safety Code section 50093. Subsequent to initial occupancy, no recertification shall be required of the on-site management and maintenance personnel. “Map” means a map depicting the Property which is attached hereto and incorporated herein as Exhibit B. “Marketing Plan” means the marketing plan for the rental of the Affordable Units which provides, to the extent authorized by applicable federal, state and local laws and regulations, that a preference be given to tenants who are currently residents of the City or currently work in the City. The Marketing Plan includes a tenant selection system in conformance with fair housing laws and the Tax Credit Rules which establishes a chronological waiting list system for selection of tenants. Developer shall not revise the Marketing Plan approved by Authority pursuant to the Agreement in any material 590 882/015610-0040 9930825.4 a06/01/17 -8- respect without obtaining the prior written consent of the Executive Director, which shall not be unreasonably withheld, conditioned, or delayed. “Monthly Rent” means the total of monthly payments for (a) use and occupancy of each Affordable Unit and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by Developer which are required of all tenants, other than security deposits, (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone or cable service, and (d) possessory interest, taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than Developer. In the event that all utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent. “Notice” means a notice in the form prescribed by Section 17.01 hereof. “Official Records” means the Official Records of the County of Riverside, California. “Operating Budget” means an operating budget for the Project, which budget shall be subject to the annual written approval of Authority in accordance with Section 9.01 hereof. “Operating Expenses” has the meaning ascribed thereto in each of the Authority Notes. “Operating Reserve” means an operating reserve for the Project (i) initially consisting of not less than One Hundred Fifty-Nine Thousand Five Hundred Forty-One Dollars ($159,541) (or such greater amount required under any Additional Regulatory Agreement, under the Partnership Agreement, or by any lender of a Project-related loan that has been approved by Authority) set aside in a separate interest-bearing trust account, commencing upon the rental of the newly constructed Affordable Units, and (ii) replenished to _________________ Dollars ($____________) from annual deposits of the Annual Project Revenue, to the extent available, such that the balance of the Operating Reserve consists of not less than three (3) months of projected Operating Expenses, adjusted annually by the CPI Adjustment (unless otherwise agreed to by Developer and Authority) or as required under the Partnership Agreement (or such greater amount required under any Additional Regulatory Agreement, or under the Partnership Agreement), provided in no event shall the balance in such account exceed a sum equal to one (1) year of debt service for the Project (or such greater amount required under the Tax Credit Regulatory Agreement, pursuant to any of the Approved Financing or under the Partnership Agreement). Developer’s requirement to maintain the Operating Reserve shall terminate at such time as the Project has achieved a minimum annual debt service ratio of 1.15 for three (3) years following the date Developer has initially rented ninety-five percent (95%) of the Affordable Units to Eligible Tenants in accordance with the terms of this Regulatory Agreement. 591 882/015610-0040 9930825.4 a06/01/17 -9- “Outside Construction Commencement Date” means that date which is thirty (30) days after the Effective Date of Regulatory Agreement. “Parties” means jointly, Authority and Developer; Authority and Developer are each a “Party.” “Partnership Agreement” means the agreement which sets forth the terms of Developer’s limited partnership, as such agreement may be amended from time to time. “Permanent Financing” means a loan in an amount not to exceed the amount of the Construction Financing from an Institutional Lender to be secured by a deed of trust against the Property which replaces the Construction Financing upon Developer’s completion of the construction and stabilization of the Project. “Project” means , (i) with respect to the WSA Property, Developer’s (a) rehabilitation of seventy-two (72) of the apartment units thereon, (b) demolition of one (1) of the apartment units thereon, and construction thereon of twenty-six (26) new apartment units, a new community building, and related amenities and site improvements, and (c) relocation of the Existing WSA Tenants; (ii) with respect to the Unimproved Real Property, Developer’s construction thereon of forty-two (42) new apartment units, a new community building, and related amenities and site improvements; and (iii) with respect to the Property, Developer’s construction of all required on-site improvements necessary to serve the apartment units in accordance with this Agreement, including, without limitation, in accordance with the Scope of Development, and the Final Construction Documents; and (iii) operation of the Property as a single cohesive affordable rental Project consisting of one hundred forty (140) residential dwelling units. “Property” means the WSA Property and Unimproved Property. “Regulatory Agreement” means this Regulatory Agreement. “Release of Construction Covenants” means the document which evidences Developer’s satisfactory completion of construction of the Project, as set forth in Section 9.15 of the Agreement, substantially in the form which is attached thereto as Attachment No. 19 and incorporated therein by reference. “Scope of Development” means that certain Scope of Development which is attached to the Agreement as Attachment No. 4 and incorporated therein by reference. The Scope of Development describes the scope, amount and quality of the construction to be done by Developer pursuant to the terms and conditions of the Agreement and this Regulatory Agreement. “Tax Credits” means Low Income Housing Tax Credits granted pursuant to Section 42 of the Internal Revenue Code and/or California Revenue and Taxation Code Sections 17057.5, 17058, 23610.4 and 23610.5 and California Health and Safety Code Section 50199, et seq. 592 882/015610-0040 9930825.4 a06/01/17 -10- “Tax Credit Regulatory Agreement” means the regulatory agreement which may be required to be recorded against the Property with respect to the issuance of Tax Credits for the Project. “Tax Credit Rules” means Section 42 of the Internal Revenue Code and/or California Revenue and Taxation Code Sections 17057.5, 17058, 23610.4 and 23610.5 and California Health and Safety Code Section 50199, et seq., and the rules and regulations implementing the foregoing, as the same may be amended from time to time. “TCAC” means the California Tax Credit Allocation Committee. “Unimproved Real Property” means that certain real property located adjacent to the WSA Property, in the City of La Quinta, County of Riverside, State of California more particularly described in Exhibit “A”. The Unimproved Real Property is unimproved, and comprises approximately 5.7 acres “USDA” means the United States of America, acting through the Farmer’s Home Administration, United States Department of Agriculture. “USDA Requirements” means all requirements imposed on the Property by the USDA in connection with any loans provided to the Property and any rental subsidies provided to the tenants at the Property. “Very Low Income Household” means those person(s) or households whose income does not exceed the qualifying limit for “very low income households,” adjusted for household size, pursuant to Health and Safety Code Section 50105, which, as of the date of this Regulatory Agreement means persons and families whose income does not exceed the qualifying limit for very low income households, adjusted for household size, as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, as published from time to time by HCD in the California Code of Regulations. “Very Low Income Units” means the sixty (60) Affordable Units that are required to be rented to and occupied by Very Low Income Households. “WSA Property” is that certain real property located at 42-800 Washington Street, in the City of La Quinta, County of Riverside, State of California more particularly described in Exhibit “A”. The WSA Property is improved with an apartment complex commonly known as the Washington Street Apartments consisting of the Existing WSA Units. The WSA Real Property comprises approximately 4.7 acres. SECTION 2. COVENANTS REGARDING CONSTRUCTION OF THE IMPROVEMENTS. Developer shall carry out the design, construction, and operation of the Project in compliance with applicable Governmental Requirements and all of the terms and conditions set forth in the Agreement. 593 882/015610-0040 9930825.4 a06/01/17 -11- SECTION 3. COVENANTS REGARDING USE. 3.01 Covenants To Use In Accordance With La Quinta Municipal Code And Agreement. Developer covenants and agrees for itself, its successors, assigns, and every successor in interest to Developer’s interest in the Property or any part thereof, that Developer shall devote the Property to the uses specified in this Regulatory Agreement until the expiration of the Affordability Period. All uses conducted on the Property, including, without limitation, all activities undertaken by Developer pursuant to this Regulatory Agreement, shall conform to all applicable provisions of the La Quinta Municipal Code. The foregoing covenants shall run with the land. 3.02 Covenant Regarding Specific Uses. Developer covenants and agrees for itself, its successors, assigns, and every successor in interest to Developer’s interest in the Property or any part thereof, that Developer shall use the Property to operate the Project until the expiration of the Affordability Period. 3.03 Covenants Regarding Term And Priority Of Agreement. This Regulatory Agreement shall remain in effect throughout the Affordability Period, notwithstanding the payment in full of the Authority Loans. Developer’s performance under this Regulatory Agreement is secured by the Authority Deeds of Trust, and Developer shall not be entitled to a reconveyance of the Authority Deeds of Trust prior to the expiration of the Affordability Period; provided that, upon Developer’s repayment of the Authority Loans, Developer shall be entitled to a partial reconveyance of the Authority Deeds of Trust solely to release therefrom Developer’s obligations to repay such loan. This Regulatory Agreement shall unconditionally be and remain at all times prior and superior to the liens created by the Construction Financing, the Permanent Financing, the Tax Credit Regulatory Agreement, any other Additional Regulatory Agreement, and any other documents related to any of the foregoing and all of the terms and conditions contained therein, and to the lien of any new mortgage debt which is for the purpose of refinancing all or any part of the Construction Financing or Permanent Financing. Authority acknowledges and agrees, however, that the lien of any financing provided by USDA prior to the Effective Date of Regulatory Agreement that is secured by the WSA Property is superior to the lien of this Regulatory Agreement. SECTION 4. COVENANTS REGARDING AFFORDABLE UNITS. Developer shall provide for the Affordable Units in accordance with this Section. 4.01 Residential Use. Without Authority’s prior written consent, which consent may be given or withheld in Authority’s sole and absolute discretion, none of the Affordable Units in the Project will at any time be utilized on a transient basis or will ever be used as a hotel, motel, dormitory, fraternity house, sorority house, rooming house, nursing home, hospital, sanitarium, or trailer court or park, nor shall the Affordable Units be used as a place of business except as may otherwise be allowed by applicable law. 4.02 Provision of Affordable Units. Developer shall make available, restrict occupancy to, and rent the Affordable Units to Eligible Tenants at Affordable Rents throughout the Affordability Period. 594 882/015610-0040 9930825.4 a06/01/17 -12- 4.03 Selection of Tenants. Developer, in consultation with Authority, shall be responsible for the selection of tenants for the Affordable Units in compliance with all lawful and reasonable criteria, as set forth in the Marketing Plan. Prior to selecting any tenant for an Affordable Unit, Developer shall provide all information and documentation received by Developer with respect to such prospective tenants to Authority for review and approval. Developer shall not refuse to lease to (i) a holder of a certificate of family participation under 24 CFR part 882 (Rental Certificate Program) or a rental voucher under 24 CFR part 887 (Rental Voucher Program) or to the holder of a comparable document evidencing participation in a Section 8 program or other tenant-based assistance program, who is otherwise qualified to be a tenant in accordance with the approved tenant selection criteria, or (ii) an applicant who would be qualified to be a tenant in accordance with the approved tenant selection criteria but for a poor credit rating resulting from a foreclosure of a mortgage on a single family home previously owned by the applicant. 4.04 Occupancy By Eligible Tenant. An Affordable Unit occupied by an Eligible Tenant who qualified as an Eligible Tenant at the commencement of the occupancy shall be treated as occupied by an Eligible Tenant until a recertification of such Eligible Tenant’s income in accordance with Section 4.08 below demonstrates that such tenant no longer qualifies as an Eligible Tenant at the applicable income level. An Affordable Unit previously occupied by an Eligible Tenant and then vacated shall be considered occupied by an Eligible Tenant until the Affordable Unit is reoccupied, provided Developer uses its best efforts to re-lease the vacant Affordable Unit to an Eligible Tenant. Any vacated Affordable Unit shall be held vacant until re-leased to an Eligible Tenant. Developer shall take any or all of the following actions, as necessary, to locate Eligible Tenants for the Project: (i) notification to the Authority of the available Affordable Unit; and (ii) advertisement of the available Affordable Unit in a newspaper of general circulation in the City of La Quinta. 4.05 Occupancy Restrictions. The maximum number of occupants that may reside in an Affordable Unit shall be as follows: three (3) persons in a one (1) bedroom Affordable Unit, and five (5) persons in a two (2) bedroom Affordable Unit. 4.06 Income Computation and Certification. Immediately prior to an Eligible Tenant’s occupancy of an Affordable Unit, Developer shall obtain an Income Computation and Certification Form in the form attached hereto and incorporated herein as Exhibit “C”, or on a similar form required by any Additional Regulatory Agreement if such form requires inclusion of the same information as required in Exhibit “C”, from each such Eligible Tenant dated no more than 90 days prior to the date of initial occupancy in the Project by such Eligible Tenant. In addition, Developer shall provide such further information as may be reasonably required in the future by Authority for purposes of verifying a tenant’s status as an Eligible Tenant. Developer shall use good faith efforts to verify that the income provided by an applicant is accurate by taking the following steps as a part of the verification process:(i) obtain three (3) pay stubs for the most recent pay periods; (ii) obtain a written verification of income and employment from the applicant’s current employer; (iii) obtain an income verification form from the Social Security Administration, California Department of Social Services, and/or 595 882/015610-0040 9930825.4 a06/01/17 -13- California Employment Development Department if the applicant receives assistance from any of said agencies; (iv) if an applicant is unemployed or did not file a tax return for the previous calendar year, obtain other evidence and/or verification of such applicant’s total income received during the calendar year from any source, taxable or nontaxable, or such other information as is satisfactory to Authority. Developer shall maintain in its records each Income Computation and Certification Form obtained pursuant to this section for a minimum of five (5) years. 4.07 Rental Priority. Subject to all applicable Governmental Requirements, and any funding obtained by Developer to operate and/or develop the Project that has been approved by Authority, during the term of this Regulatory Agreement, Developer shall use its reasonable commercial efforts to lease the Affordable Units to credit-worthy Eligible Tenants in the following order of priority: (a) Eligible Tenants who have been displaced by the former La Quinta Redevelopment Agency, or who have been or will be displaced by an activity of the Authority, or (b) Eligible Tenants who live and/or work in the City of La Quinta. Should multiple tenants be equally eligible (as to income, credit history, and other nondiscriminatory criteria) and qualified to rent a unit, Developer shall rent available Affordable Units to Eligible Tenants on a first-come, first-served basis. 4.08 Recertification. Within sixty (60) days prior to the first anniversary date of the occupancy of an Affordable Unit by an Eligible Tenant, and on each anniversary date thereafter, Developer shall recertify the income of such Eligible Tenant by obtaining a completed Income Recertification Form, in the form attached hereto and incorporated herein as Exhibit “D”, based upon the current income of each known occupant of the Affordable Unit; provided, however, that if any Additional Regulatory Agreement requires Developer to obtain a recertification form which requires inclusion of the same information as required in Exhibit “D”, then Developer shall not be deemed to be in default hereunder if during the term of such Additional Regulatory Agreement Developer obtains from each Eligible Tenant the recertification form required pursuant to said Additional Regulatory Agreement. If, after renting a Very Low Income Unit, the household income increases above the income level permitted for the Very Low Income Unit, but meets the income level permitted for a Low Income Unit, the household shall continue to be permitted to reside in such Affordable Unit provided that Developer shall increase the rent for such Affordable Unit to the rent level designated for a Low Income Unit, and shall restrict and designate as a Very Low Income Unit, the next available Affordable Unit with the same number of bedrooms that is not already designated hereunder as a Very Low Income Unit. If, after renting an Affordable Unit, the household income increases above the income level permitted for a Low Income Unit, that household may not be permitted to remain in the unit unless requiring such household to move will violate the Tax Credit Rules or other applicable law. In such event, Developer shall notify Authority in writing of such occurrence, and shall inform Authority of (1) its plans for removing the household from the Affordable Unit, or (2) the specific rule in the Tax Credit Rules that prohibits such action providing written evidence of the same. 596 882/015610-0040 9930825.4 a06/01/17 -14- 4.09 Certification of Continuing Program Compliance. During the term of this Regulatory Agreement, on or before each March 1 following the date Authority issues a Release of Construction Covenants for the Project, Developer shall annually advise Authority of the occupancy of the Project during the preceding calendar year by delivering a Certification of Continuing Program Compliance in the form attached hereto and incorporated herein as Exhibit “E”, stating (i) the Affordable Units of the Project which have been rented to and are occupied by Eligible Tenants and (ii) that to the knowledge of Developer either (a) no unremedied default has occurred under this Regulatory Agreement, or (b) a default has occurred, in which event said certification shall describe the nature of the default and set forth the measures being taken by Developer to remedy such default. 4.10 Leases; Rental Agreements for Affordable Units. Developer shall submit a standard lease form, which shall comply with the requirements of this Regulatory Agreement, to Authority for its approval. Authority shall reasonably approve such lease form upon finding that such lease form is consistent with this Regulatory Agreement. Developer shall enter into a written lease, in the form approved by Authority, with each tenant/tenant household of the Affordable Units. Developer shall not make any material changes to such form of lease without obtaining Authority’s prior written consent. Any proposed increase in the monthly rent to be charged to an Eligible Household is hereby deemed material and shall require Authority’s written consent prior to imposition of the same. 4.11 Reliance on Tenant Representations. Each tenant lease shall contain a provision to the effect that Developer has relied on the income certification and supporting information supplied by the tenant in determining qualification for occupancy of the Affordable Unit, and that any material misstatement in such certification (whether or not intentional) will be cause for immediate termination of such lease, subject to applicable law. 4.12 Monitoring and Record Keeping. Representatives of Authority shall be entitled to enter the Property during normal business hours, upon not less than twenty- four (24) hours’ notice, to monitor compliance with this Regulatory Agreement, to inspect the records of the Property, and to conduct an independent audit or inspection of such records. Developer agrees to cooperate with Authority in making the Property and all Affordable Units thereon available for such inspection or audit. Developer agrees to maintain records in a businesslike manner, and to maintain copies of original tenant certifications for fifteen (15) years (or such longer period as required under the Tax Credit Rules) and all other records pertaining to the Project for five (5) years. 4.13 Remedy For Violation of Rental Requirements. (a) It shall constitute a default for Developer to charge or accept for any Affordable Unit rent amounts in excess of the amount provided for in Section 4.02 of this Regulatory Agreement. In the event that Developer charges or receives such higher rental amounts, Developer shall be required to reimburse the tenant that occupied said Affordable Unit at the time the excess rent was 597 882/015610-0040 9930825.4 a06/01/17 -15- received for the entire amount of such excess rent received, provided that such tenant can be found following reasonable inquiry, and to pay to such tenant interest on said excess amount, at the rate of six percent (6%) per annum, for the period commencing on the date the first excess rent was received from said tenant and ending on the date reimbursement is made to the tenant. For purposes of this Section 4.13, “reasonable inquiry” shall include Developer’s review of information provided by the tenant as part of the tenant’s application, and forwarding information provided by the tenant, and Developer’s reasonable attempts to contact the tenant and any other persons listed in either of such documents. If, after such reasonable inquiry, Developer is unable to locate the tenant, Developer shall pay all of such amounts otherwise to be paid to the tenant to Authority. (b) Except as otherwise provided in this Regulatory Agreement, it shall constitute a default for Developer to knowingly (or without inquiry and diligent review as required herein) initially rent any Affordable Unit to a tenant who is not an Eligible Tenant. In the event Developer violates this Section, in addition to any other equitable remedy Authority shall have for such default, Developer, for each separate violation, shall be required to pay to Authority an amount equal to (i) the greater of (A) the total rent Developer received from such ineligible tenant, or (B) the total rent Developer was entitled to receive for renting that Affordable Unit, plus (ii) any relocation expenses incurred by Authority or the City as a result of Developer having rented to such ineligible person. The terms of this Section shall not apply if Developer rents to an ineligible person as a result of such person’s fraud or misrepresentation. (c) It shall constitute a default for Developer to knowingly (or without inquiry and diligent review as required herein) rent an Affordable Unit in violation of the leasing preference requirements of Section 4.07 of this Regulatory Agreement. In the event Developer violates this Section, in addition to any other equitable remedy Authority shall have for such default, Developer, for each separate violation, shall be required to pay Authority an amount equal to two (2) months of rental charges. THE PARTIES HERETO AGREE THAT THE AMOUNTS SET FORTH IN THIS SECTION 4.13 (THE “DAMAGE AMOUNTS ”) CONSTITUTE A REASONABLE APPROXIMATION OF THE ACTUAL DAMAGES THAT AUTHORITY WOULD SUFFER DUE TO THE DEFAULTS BY DEVELOPER SET FORTH IN THIS SECTION 4.13, CONSIDERING ALL OF THE CIRCUMSTANCES EXISTING ON THE EFFECTIVE DATE OF REGULATORY AGREEMENT, INCLUDING THE RELATIONSHIP OF THE DAMAGE AMOUNTS TO THE RANGE OF HARM TO AUTHORITY AND ACCOMPLISHMENT OF AUTHORITY’S PURPOSE OF ASSISTING IN THE PROVISION OF AFFORDABLE HOUSING TO ELIGIBLE TENANTS THAT REASONABLY COULD BE ANTICIPATED AND THE ANTICIPATION THAT PROOF OF ACTUAL DAMAGES WOULD BE COSTLY OR INCONVENIENT. THE AMOUNTS SET FORTH IN THIS SECTION 4.13 SHALL BE THE SOLE MONETARY DAMAGES REMEDY FOR THE DEFAULTS SET FORTH IN THIS SECTION 4.13, BUT NOTHING 598 882/015610-0040 9930825.4 a06/01/17 -16- IN THIS SECTION 4.13 SHALL BE INTERPRETED TO LIMIT AUTHORITY’S REMEDY FOR SUCH DEFAULT TO SUCH A DAMAGES REMEDY AND IN THAT REGARD AUTHORITY MAY DECLARE A DEFAULT UNDER THE TERMS OF EITHER OR BOTH OF THE AUTHORITY NOTES, THE AGREEMENT, OR OTHER AGREEMENTS ENTERED INTO BY AND BETWEEN AUTHORITY AND DEVELOPER. IN PLACING ITS INITIALS AT THE PLACES PROVIDED HEREINBELOW, EACH PARTY SPECIFICALLY CONFIRMS THE ACCURACY OF THE STATEMENTS MADE ABOVE AND THE FACT THAT EACH PARTY HAS BEEN REPRESENTED BY COUNSEL WHO HAS EXPLAINED THE CONSEQUENCES OF THE LIQUIDATED DAMAGES PROVISION AT OR PRIOR TO THE TIME EACH EXECUTED THIS REGULATORY AGREEMENT. DEVELOPER’S INITIALS: AUTHORITY’S INITIALS: 4.14 Relationship to Additional Regulatory Agreements. Notwithstanding any other provisions set forth in this Regulatory Agreement and subject to the following sentence, to the extent that the provisions related to tenant selection, tenant income levels and unit rent levels set forth in any Additional Regulatory Agreement are less restrictive than those provisions set forth in this Section 4, then the provisions set forth in this Section 4 shall govern and control. To the extent of any inconsistency between this Regulatory Agreement and any Additional Regulatory Agreement regarding Affordable Rent for the Affordable Units, the more restrictive agreement or covenants shall prevail unless compliance with such more restrictive provisions would violate the provisions of the less restrictive document. Developer agrees to perform all of Developer’s obligations under this Regulatory Agreement, and under each of the Additional Regulatory Agreements. In the event Authority is prevented by a final, non-appealable order of a court of competent jurisdiction in a lawsuit involving the Project, or by an applicable and binding published appellate opinion, or by a final, non-appealable order of a regulatory body having jurisdiction, from enforcing, for any reason, the affordability restrictions set forth in this Regulatory Agreement or in the Agreement, then in such event Authority shall be a third-party beneficiary under the Additional Regulatory Agreements, and shall have full authority to enforce any breach or default by Developer thereunder in the same manner as though it were a breach or default hereunder. Without Authority’s prior written consent, which consent may be withheld in Authority’s sole and absolute discretion, Developer shall not consent to any amendment of or modification to any of the Additional Regulatory Agreements which (i) shortens the term of the affordability restrictions on the Affordable Units or (ii) modifies the affordability mix. SECTION 5. COVENANT TO PAY TAXES AND ASSESSMENTS. Developer shall pay prior to delinquency all ad valorem real estate taxes, special taxes, assessments and special assessments levied against the Property, subject to Developer’s right to contest any such tax in good faith and any property tax exemption. 599 882/015610-0040 9930825.4 a06/01/17 -17- SECTION 6. COVENANTS REGARDING MAINTENANCE. Developer shall maintain the Property and all improvements thereon, including lighting and signage, in good condition, reasonable wear and tear excepted, free of debris, waste and graffiti, and in compliance with all applicable provisions of the City of La Quinta Municipal Code, and in accordance with HUD’s Housing Quality Standards. Developer shall maintain the improvements and landscaping on the Property in accordance with the “Maintenance Standards,” as hereinafter defined. Such Maintenance Standards shall apply to all buildings, signage, lighting, landscaping, irrigation of landscaping, architectural elements identifying the Property and any and all other improvements on the Property. To accomplish the maintenance, Developer shall either staff or contract with and hire licensed and qualified personnel to perform the maintenance work, including the provision of labor, equipment, materials, support facilities, and any and all other items necessary to comply with the requirements of this Regulatory Agreement. Developer and its maintenance staff, contractors or subcontractors shall comply with the following standards (the “Maintenance Standards”): (a) The Property shall be maintained in good condition and in accordance with the custom and practice generally applicable to comparable high quality, well-managed apartment complexes, including but not limited to painting and cleaning of all exterior surfaces and other exterior facades comprising all private improvements and public improvements to the curbline. (b) Landscape maintenance shall include, but not be limited to: watering/irrigation; fertilization; mowing; edging; trimming of grass; tree and shrub pruning; trimming and shaping of trees and shrubs to maintain a healthy, natural appearance and safe road conditions and visibility, and irrigation coverage; replacement, as needed, of all plant materials; control of weeds in all planters, shrubs, lawns, ground covers, or other planted areas; and staking for support of trees. (c) Clean-up maintenance shall include, but not be limited to: maintenance of all sidewalks, paths, and other paved areas in clean and weed-free condition; maintenance of all such areas clear of dirt, mud, trash, debris, or other matter which is unsafe or unsightly; removal of all trash, litter, and other debris from improvements and landscaping prior to mowing; clearance and cleaning of all areas maintained prior to the end of the day on which the maintenance operations are performed to ensure that all cuttings, weeds, leaves, and other debris are properly disposed of by maintenance workers. Upon Authority’s written notification to Developer of any maintenance deficiency, Developer shall have thirty (30) days within which to correct, remedy or cure the deficiency, or such longer period as is reasonably necessary to complete the cure, provided Developer commences the correction, remedy, or cure within such thirty (30) day period and diligently pursues such correction, remedy, or cure to completion. 600 882/015610-0040 9930825.4 a06/01/17 -18- SECTION 7. COVENANTS REGARDING MANAGEMENT. Developer shall provide for the management of the Project in accordance with this Section. 7.01 Property Manager. Developer shall manage or cause the Project, and all appurtenances thereto that are a part of the Project, to be managed in a prudent and business-like manner, consistent with property management standards for other comparable high quality, well-managed rental housing projects in Riverside County, California. Developer may contract with a property management company or property manager to operate and maintain the Project in accordance with the terms of this Section (“Property Manager”); provided, however, the selection and hiring of the Property Manager (and each successor or assignee) is and shall be subject to prior written approval of Authority. Developer shall conduct due diligence and background evaluation of any potential outside property manager or property management company to evaluate experience, references, credit worthiness, and related qualifications as a property manager. Any proposed property manager shall have prior experience with projects and properties comparable to the Project and the references and credit record of such manager/company shall be investigated (or caused to be investigated) by Developer prior to submitting the name and qualifications of such proposed property manager to Authority for review and approval. A complete and true copy of the results of such background evaluation shall be provided to Authority. Approval of a Property Manager by Authority shall not be unreasonably withheld or delayed and shall be in Authority’s reasonable discretion, and Authority shall use good faith efforts to respond as promptly as practicable in order to facilitate effective and ongoing management of the Project. Furthermore, the identity and retention of any approved Property Manager shall not be changed without the prior written approval of Authority, which approval shall not be unreasonably delayed, and shall be in Authority’s reasonable discretion. The selection by Developer of any new Property Manager also shall be subject to the foregoing requirements. Authority hereby approves ____________ as the Property Manager. 7.02 Management Plan. Prior to and as one of Authority’s conditions to the Property Closing under the Agreement, Developer shall have prepared and submitted to the Executive Director for review and approval an updated and supplemented management plan which includes a detailed plan and strategy for long-term marketing for the Affordable Units, operation, maintenance, repair, and security of the Project, method of selection of tenants, rules and regulations for tenants, and other rental policies for the Affordable Units (the “Management Plan”). Subsequent to approval of the Management Plan by the Executive Director, the ongoing management and operation of the Project shall be in compliance with the approved Management Plan. Developer and Property Manager may from time to time submit to the Executive Director proposed amendments to the Management Plan, which are also subject to the prior written approval of the Executive Director. 7.03 Social Services. Developer shall create a comprehensive social service program that is targeted to the needs of the residents of the Project which shall include, 601 882/015610-0040 9930825.4 a06/01/17 -19- in addition to all of the services listed in Developer’s applications for Tax Credits, the following services: __________________-_______________, and the availability of a bona fide services coordinator or social worker to the tenants. Developer shall ensure that all personnel providing or coordinating all social services shall be adequately trained and counseled, including with respect to the appropriate means and methods of communicating and interacting with residents. Any substantive change in the scope, amount, or type of supportive services to be provided at the Property shall be subject to prior reasonable approval of Authority. Authority shall respond to any such proposed changes within thirty (30) days after submittal to Authority by Developer. 7.04 Gross Mismanagement. In the event of “Gross Mismanagement” (as that term is defined below) of the Affordable Units or any part of the Project, Authority shall have and retain the authority to direct and require any condition(s), acts, or inactions of Gross Mismanagement to cease and/or be corrected immediately, and further to direct and require the immediate removal of the Property Manager and replacement with a new qualified and approved Property Manager, if such condition(s) is/are not ceased and/or corrected after expiration of sixty (60) days from the date of Notice from Authority. If such condition(s) acts, or inactions of gross mismanagement do persist beyond such period, Authority shall have the sole and absolute right to immediately and without further notice to Developer (or to Property Manager or any other person/entity) replace the Property Manager with a new property manager of Authority’s selection at the sole cost and expense of Developer. If Developer takes steps to select a new property manager that selection is subject to the requirements set forth above for selection of a Property Manager. For purposes of this Regulatory Agreement, the term “Gross Mismanagement” shall mean management of any part of the Project in a manner which materially violates the terms and/or intention of this Regulatory Agreement to operate a high quality, well- managed residential complex, and shall include, but is not limited to, any one or more of the following: (a) knowingly leasing Affordable Units to tenants who exceed the prescribed income levels; (b) knowingly allowing the tenants of Affordable Units to exceed the prescribed occupancy levels without taking immediate action to stop such overcrowding; (c) underfunding Capital Replacement or Operating Reserve accounts, unless funds are not available to deposit in such accounts; (d) failing to timely maintain the Project in accordance with the Management Plan and the manner prescribed herein; (e) failing to submit timely and/or adequate annual reports to Authority as required herein; 602 882/015610-0040 9930825.4 a06/01/17 -20- (f) committing fraud or embezzlement with respect to Project funds, including without limitation funds in the reserve accounts; (g) failing to reasonably cooperate with the Riverside County Sheriff’s Department or other local law enforcement agency(ies) with jurisdiction over the Project, in maintaining a crime-free environment within the Project; (h) failing to reasonably cooperate with the Fire District or other local public safety agency(ies) with jurisdiction over the Project, in maintaining a safe environment within the Project; (i) failing to reasonably cooperate with the La Quinta Planning & Building Department, including the Code Enforcement Division, or other local health and safety enforcement agency(ies) with jurisdiction over the Property and/or Project, in maintaining a safe environment within the Project; and (j) spending funds from the Capital Reserve account(s) for items that are not defined as capital costs under the standards imposed by generally accepted accounting principles (GAAP) (and/or, as applicable, generally accepted auditing principles), except as required by any lender or a Project- related loan that has been approved by Authority, the Investor, or TCAC. Notwithstanding the requirements of the Property Manager to correct any condition of Gross Mismanagement as described above, Developer is obligated and shall use its best efforts to correct any defects in property management or operations at the earliest feasible time and, if necessary, to replace the Property Manager as provided above. Developer shall include advisement and provisions of the foregoing requirements and requirements of this Regulatory Agreement within any contract between Developer and its Property Manager. 7.05 Code Enforcement. Developer acknowledges and agrees that the City and its employees and authorized agents shall have the right to conduct code compliance and/or code enforcement inspections of the Project and the individual Affordable Units, both exterior and interior, at reasonable times and upon reasonable notice (not less than 48 hours prior notice) to Developer and/or an individual tenant. If such notice is provided by City or its representative(s) to Developer, then Developer (or its Property Manager) shall immediately and directly advise tenants of such upcoming inspection and cause access to the area(s) and/or units to be made available and open for inspection. Developer shall include express advisement of such inspection rights within the lease/rental agreements for each Affordable Unit in order for each and every tenant and tenant household to be aware of this inspection right. 7.06 Drug Free Covenant. Developer shall use its best efforts to maintain a drug free environment on the Property. Developer covenants to Authority that Developer shall use its best efforts to ensure that all persons working or residing on the Property shall not unlawfully manufacture, distribute, dispense, possess or use controlled substances, as said term is defined in 21 United States Code Section 812 603 882/015610-0040 9930825.4 a06/01/17 -21- and California Health and Safety Code Section 11007 (or successor statutes), including marijuana, heroin, cocaine, and amphetamines on the Property. SECTION 8. COVENANTS REGARDING NONDISCRIMINATION. Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person, or group of persons on any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, or any part thereof, nor shall Developer, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property, or any part thereof. The foregoing covenants shall run with the land. Developer agrees for itself and any successor in interest that Developer shall refrain from restricting the rental, sale, or lease of any portion of the Property, or contracts relating to the Property, on the basis of race, color, creed, religion, sex, marital status, ancestry, or national origin of any person. All such deeds, leases, or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (a) In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” (b) In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: “That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, 604 882/015610-0040 9930825.4 a06/01/17 -22- tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.” (c) In contracts pertaining to the realty: “There shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises which are the subject of this agreement, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” The covenants established in this Regulatory Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Authority, its successors and assigns, the City and any successor in interest to the Property, together with any property acquired by Developer pursuant to this Regulatory Agreement, or any part thereof. The covenants against discrimination shall remain in effect in perpetuity. SECTION 9. OPERATING BUDGET OR ANNUAL BUDGET; ANNUAL REPORTS 9.01 Operating Budget. Developer shall submit to Authority on or before December 1 of each year during the Affordability Period an operating budget for the Project (“Operating Budget” or “Annual Budget”), which budget, including the format thereof, shall be subject to the written approval of the Executive Director or designee, which approval shall not be unreasonably withheld or conditioned so long as such budget is not inconsistent with this Regulatory Agreement. The Executive Director’s discretion in review and approval of each proposed annual Operating Budget or Annual Budget shall include, without limitation, authority to review individual categories, line items, and accounts, such as the following: extent, type, and amount for social services at or associated with the Project; existing balance(s) in and proposed deposits to the Capital Replacement Reserve to evaluate shortfalls and/or cumulative unexpended/unencumbered deposits (provided that required annual deposits thereto are not required to exceed $___/per unit unless required by any other lender or the Investor); reasonableness and conformity to prevailing market rates in Riverside County and rates and fees for goods and services to be provided by Developer or any Affiliate thereof. In the event Developer requires an amendment to an approved Annual Budget during an applicable year of the Affordability Period, then Developer shall submit a written request to the Executive Director explaining the requested amendment and reasons therefor; the Executive Director shall reasonably review and approve (or 605 882/015610-0040 9930825.4 a06/01/17 -23- disapprove) each request for an amendment to an approved Annual Budget. The Executive Director shall communicate to Developer his or her reasonable approval or disapproval of a proposed annual Operating Budget or Annual Budget within thirty (30) days after receipt thereof; as to each amendment, the Executive Developer shall communicate to Developer his or her reasonable approval or disapproval within fifteen (15) days after receipt of a complete submittal requesting an amendment to an approved Annual Budget. In the event the Executive Director fails to approve a proposed annual Operating Budget or Annual Budget within thirty (30) days after receipt thereof, Developer may operate the Project in accordance with such proposed annual Operating Budget or Annual Budget until the Executive Director notifies Developer that such proposed annual Operating Budget or Annual Budget is not approved; provided, however, that in such case any expenditure made by Developer prior to the Executive Director’s notification that the proposed annual Operating Budget or Annual Budget is not approved shall be deemed an approved expenditure. 9.02 Annual Reports. Developer covenants and agrees to submit to Authority an annual report (the “Annual Report”), which shall include the information required by California Health & Safety Code Section 33418.The Annual Report shall include for each Affordable Unit the rental rate and the income and family size of the occupants. The Developer shall submit the Annual Report on or before February 15 of the year following the year covered by the Annual Report. The Developer shall provide for the submission of household information and certification in its leases with tenants. SECTION 10. COVENANTS REGARDING CAPITAL REPLACEMENT RESERVE. Promptly upon the issuance of the Certificate of Occupancy, Developer shall establish the Capital Replacement Reserve. Funds in the Capital Replacement Reserve shall be used only for capital repairs, improvements, and replacements to the Project fixtures and equipment which are normally capitalized under generally accepted accounting principles or as otherwise required by any lender of a Project-related loan that has been approved by Authority, the Investor, or TCAC. The non-availability of funds in the Capital Replacement Reserve does not in any manner relieve or lessen Developer’s obligation to undertake any and all necessary capital repairs, improvements, or replacements and to continue to maintain the Project in the manner prescribed herein. Not less than once per year, Developer, at its expense, shall submit to Authority an accounting for the Capital Replacement Reserve. Unless required by any lender of a Project-related loan that has been approved by Authority, the Investor, or TCAC, capital repairs to and replacement of the Project shall include only those items with a long useful life, including, without limitation, the following: carpet and drape replacement; appliance replacement; exterior painting, including exterior trim; hot water heater replacement; plumbing fixtures replacement, including tubs and showers, toilets, lavatories, sinks, faucets; air conditioning and heating replacement; asphalt repair and replacement, and seal coating; roofing repair and replacement; landscape tree replacement; irrigation pipe and controls replacement; sewer line replacement; water line replacement; gas line pipe replacement; lighting fixture replacement; elevator replacement and upgrade work; miscellaneous motors and blowers; common area furniture replacement; and common area repainting. 606 882/015610-0040 9930825.4 a06/01/17 -24- SECTION 11. COVENANTS REGARDING OPERATING RESERVE. Promptly upon the issuance of the Certificate of Occupancy, Developer shall establish the Operating Reserve. The Operating Reserve shall be used to cover shortfalls between Annual Project Revenue and actual operating expenses, but shall in no event be used to pay for capital items or capital costs properly payable from the Capital Replacement Reserve. Developer shall, not less than once per every twelve (12) months, submit to Authority evidence reasonably satisfactory to Authority of compliance herewith. SECTION 12. EFFECT OF VIOLATION OF THE TERMS AND PROVISIONS OF THIS REGULATORY AGREEMENT AFTER COMPLETION OF CONSTRUCTION. Authority is deemed the beneficiary of the terms and provisions of this Regulatory Agreement and of the covenants running with the land, without regard to whether Authority has been, remains or is an owner of any land or interest therein in the Property or in the Project. Authority shall have the right, if this Regulatory Agreement or any of the covenants herein are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Regulatory Agreement and covenants may be entitled. The City is hereby deemed to be a third party beneficiary of this Regulatory Agreement and the covenants contained herein with the right, but not the obligation, to enforce the terms hereof. Except as provided in the following sentence, the covenants contained in this Regulatory Agreement shall remain in effect until the expiration of the Affordability Period. The covenants regarding discrimination as set forth in Section 8 shall remain in effect in perpetuity. SECTION 13. COMPLIANCE WITH LAWS; ENVIRONMENTAL MATTERS. 13.01 Compliance With Laws. Developer shall comply with (i) all Governmental Requirements applicable to the Project and/or Property, and (ii) all rules and regulations of any assessment district of the City with jurisdiction over the Property. 13.02 Indemnity. Developer shall save, protect, defend, indemnify and hold harmless Authority and the City and their respective officers, officials, directors, members, employees, agents, and representatives from and against any and all liabilities, suits, actions, claims, demands, penalties, damages (including, without limitation, penalties, fines, and monetary sanctions), losses, costs or expenses (including, without limitation, consultants’ fees, investigation and laboratory fees, reasonable attorneys’ fees, and remedial and response costs) (the foregoing are hereinafter collectively referred to as “Liabilities”) which may now or in the future be incurred or suffered by Authority or City or their respective officers, officials, directors, members, employees, agents, or representatives by reason of, resulting from, in connection with, or existing in any manner whatsoever as a direct or indirect result of (i) Developer’s placement on or under the Property of any Hazardous Materials or Hazardous Materials Contamination, (ii) the escape, seepage, leakage, spillage, discharge, emission or release from the Property of any Hazardous Materials or 607 882/015610-0040 9930825.4 a06/01/17 -25- Hazardous Materials Contamination that first accrues and occurs after the Property Closing Date, or (iii) any Liabilities incurred under any Governmental Requirements relating to the acts described in the foregoing clauses (i) and (ii). Notwithstanding the foregoing, Developer shall have no liability or indemnification obligation resulting from any Hazardous Materials or Hazardous Materials Contamination that occurred or first accrued prior to the Property Closing Date (any of the foregoing, “Preexisting Contamination”). 13.03 Duty to Prevent Hazardous Material Contamination. Developer shall take commercially reasonable action to prevent the release of any Hazardous Materials into the environment. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, Developer shall install and utilize such equipment and implement and adhere to such procedures as are consistent with the standards generally applied by apartment complexes in Riverside County, California as respects the disclosure, storage, use, removal, and disposal of Hazardous Materials. 13.04 Obligation of Developer to Remediate Premises. Notwithstanding the obligation of Developer to indemnify Authority, City, and their respective officers, officials, members, employees, agents, and representatives pursuant to Section 13.02, and provided no Hazardous Materials exist on the Property as a result of Authority’s actions or any Preexisting Contamination, Developer shall, at its sole cost and expense, promptly take (i) all actions required by any federal, state, regional, or local governmental agency or political subdivision or any Governmental Requirements and (ii) all actions necessary to make full economic use of the Property for the purposes contemplated by this Regulatory Agreement and the Agreement, which requirements or necessity arise from the presence upon, about or beneath the Property, of any Hazardous Materials or Hazardous Materials Contamination. Such actions shall include, but not be limited to, the investigation of the environmental condition of the Property, the preparation of any feasibility studies or reports and the performance of any cleanup, remedial, removal or restoration work. 13.05 Environmental Inquiries. Developer, when it has received any notices of violation, notices to comply, citations, inquiries, clean-up or abatement orders, or cease and desist orders related to Hazardous Materials or Hazardous Materials Contamination, or when Developer is required to report to any governmental agency any violation or potential violation of any Governmental Requirement pertaining to Hazardous Materials or Hazardous Materials Contamination, shall concurrently notify the Executive Director, and provide to him/her a copy or copies, of the environmental permits, disclosures, applications, entitlements, or inquiries relating to the Property, the notices of violation, notices to comply, citations, inquiries, clean-up or abatement orders, cease and desist orders, reports filed pursuant to self-reporting requirements, and reports filed or applications made pursuant to any Governmental Requirement relating to Hazardous Materials and underground tanks, and Developer shall report to the Executive Director, as soon as possible after each incident, any unusual, potentially important incidents. 608 882/015610-0040 9930825.4 a06/01/17 -26- In the event of a responsible release of any Hazardous Materials into the environment, Developer shall, as soon as possible after it becomes aware of the release, furnish to the Executive Director a copy of any and all reports relating thereto and copies of all correspondence with governmental agencies relating to the release. Upon request of the Executive Director, Developer shall furnish to the Executive Director a copy or copies of any and all other environmental entitlements or inquiries relating to or affecting the Property including, but not limited to, all permit applications, permits and reports including, without limitation, those reports and other matters which may be characterized as confidential. SECTION 14. INSURANCE REQUIREMENTS. 14.01 Commercial General Automobile Liability; Worker’s Compensation. Commencing on the Property Closing Date and continuing throughout the term of this Agreement, Developer shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to the Executive Director, the following policies of insurance: (a) Commercial General Liability Insurance covering bodily injury, property damage, personal injury and advertising injury written on a per- occurrence and not a claims-made basis containing the following minimum limits:(i) general aggregate limit of Three Million Dollars ($3,000,000.00); (ii) products-completed operations aggregate limit of Three Million Dollars ($3,000,000.00); (iii) personal and advertising injury limit of One Million Dollars ($1,000,000.00); and (iv) each occurrence limit of One Million Dollars ($1,000,000.00).Said policy shall include the following coverages:(i) blanket contractual liability (specifically covering the indemnification clause contained below); (ii) products and completed operations; (iii) independent contractors; (iv) Owner’s broad form property damage; (v) severability of interest; (vi) cross liability; and (vii) property damage liability arising out of the so-called “XCU” hazards (explosion, collapse and underground hazards). The policy shall be endorsed to have the general aggregate apply to this Project only. (b) A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure, and provide legal defense for Authority and Developer against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Developer in the course of carrying out the work or services contemplated in this Regulatory Agreement, and Employers Liability Insurance in an amount not less than One Million Dollars ($1,000,000) combined single limit for all damages arising from each accident or occupational disease. (c) A policy of comprehensive automobile liability insurance written on a per-occurrence basis in an amount not less than Two Million Dollars ($2,000,000.00) combined single limit covering all owned, non-owned, leased and hired vehicles used in connection with the Work. 609 882/015610-0040 9930825.4 a06/01/17 -27- 14.02 Builder’s Risk. Commencing on the Property Closing Date and continuing until Authority issues a Release of Construction Covenants for the Project, Developer shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to Authority’s Executive Director, Builder’s Risk (course of construction) insurance coverage in an amount equal to the full cost of the hard construction costs of the Project. Such insurance shall cover, at a minimum: all work, materials, and equipment to be incorporated into the Project; the Project during construction; the completed Project until such time as the City issues a final certificate of occupancy for the Project, and storage and transportation risks. Such insurance shall protect/insure the interests of Developer/owner and all of Developer’s contractor(s), and subcontractors, as each of their interests may appear. If such insurance includes an exclusion for “design error,” such exclusion shall only be for the object or portion which failed. Authority shall be a loss payee under such policy or policies and such insurance shall contain a replacement cost endorsement. 14.03 Property; Business Interruption; Boiler and Machinery Insurance. Commencing on the date Authority issues a Release of Construction Covenants for the Project and continuing throughout the Affordability Term, Developer shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to Authority’s Executive Director, the following insurance: (a) Insurance against fire, extended coverage, vandalism, and malicious mischief, and such other additional perils, hazards, and risks as now are or may be included in the standard “all risk” form in general use in Riverside County, California, with the standard form fire insurance coverage in an amount equal to full actual replacement cost thereof, as the same may change from time to time. The above insurance policy or policies shall include coverage for earthquakes to the extent generally and commercially available at commercially reasonable rates, if such insurance is generally obtained for affordable Projects in the county of Riverside. Authority shall be a loss payee under such policy or policies and such insurance shall contain a replacement cost endorsement. (b) Business interruption and extra expense insurance to protect Authority and Developer covering loss of revenues and/or extra expense incurred by reason of the total or partial suspension or delay of, or interruption in, the operation of the Project caused by loss or damage to, or destruction of, any part of the insurable real property structures or equipment as a result of the perils insured against under the all risk physical damage insurance, covering a period of suspension, delay or interruption of at least twelve (12) months, in an amount not less than the amount required to cover such business interruption and/or extra expense loss during such period. (c) Boiler and machinery insurance in the aggregate amount of the full replacement value of the equipment typically covered by such insurance. 14.04 Contract Insurance Requirements. Developer shall cause any general contractor with whom it has contracted for the performance of work on the Property to 610 882/015610-0040 9930825.4 a06/01/17 -28- secure, prior to commencing any activities hereunder and maintain insurance that satisfies all of the requirements of this Section 14. 14.05 Additional Requirements. The following additional requirements shall apply to all of the above policies of insurance: (a) All of the above policies of insurance shall be primary insurance and, except the Worker’s Compensation, Employer Liability insurance, and automobile liability insurance, shall name Authority, City and their respective officers, officials, directors, members, employees, agents, and representatives (collectively, “Authority and City and Authority and City Personnel”) as additional insureds on an ISO Form CG 20:10 (current version) or substantially similar form and not an ISO Form CG 20:09. The insurer shall waive all rights of subrogation and contribution it may have against Authority and City and Authority and City Personnel and their respective insurers. All of said policies of insurance shall provide that said insurance may not be amended or cancelled without providing thirty (30) days’ prior written notice to Authority. In the event any of said policies of insurance are cancelled, Developer shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the Executive Director. Not later than the Effective, Developer shall provide the Executive Director with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders shall be subject to the reasonable approval of the Executive Director. (b) The policies of insurance required by this Regulatory Agreement shall be satisfactory only if issued by companies of recognized good standing authorized to do business in California, rated “A-” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Executive Director due to unique circumstances. (c) The Executive Director is hereby authorized to reduce or otherwise modify Developer’s insurance requirements set forth herein in the event they collectively determine, in their sole and absolute discretion, that such reduction or modification is consistent with reasonable commercial practices. (d) The Developer agrees that the provisions of this Section shall not be construed as limiting in any way Authority’s right to indemnification or the extent to which Developer may be held responsible for the payment of damages to any persons or property resulting from Developer’s activities or the activities of any person or persons for which Developer is otherwise responsible. 14.06 Indemnification. Developer shall defend (by counsel satisfactory to Authority), assume all responsibility for and hold Authority and the City, and their respective officers, officials, directors, members, agents, representatives, and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including expert witness fees, attorneys fees and costs), which may be caused by the activities or performance of Developer or any of 611 882/015610-0040 9930825.4 a06/01/17 -29- Developer’s employees, agents, representatives, contractors, or subcontractors under (i) this Regulatory Agreement, (ii) a claim, demand or cause of action that any person has or asserts against Developer; (iii) any act or omission of Developer, any contractor, subcontractor or material supplier, engineer, architect or other person with respect to the Property; or (iv) the ownership, occupancy or use of the Property by Developer, whether such damage shall accrue or be discovered before or after termination of this Regulatory Agreement. Notwithstanding the foregoing, Developer shall have no obligation under this section 14.06 to indemnify, defend or hold harmless Authority, the City, or their respective officers, officials, directors, members, agents, representatives, or employees to the extent the claim, damage or injury results from the gross negligence or willful misconduct of any of the foregoing indemnified parties. The obligations and indemnifications in this Section 14.06 shall constitute covenants running with the land. SECTION 15. ASSIGNMENT. 15.01 Generally Prohibited. Except as otherwise expressly provided to the contrary in this Regulatory Agreement or the Agreement, Developer shall not assign any of its rights or delegate any of its duties under this Regulatory Agreement, nor shall any changes occur with respect to the ownership and/or control of Developer, including, without limitation, stock transfers, sales of issuances, or transfers, sales or issuances of membership or ownership interests, or statutory conversions, without the prior written consent of the Executive Director, which consent may be withheld in his or her sole and absolute discretion. Any such assignment or delegation without such consent shall, at Authority’s option, be void. Notwithstanding the foregoing, however, (i) Developer may admit Developer’s Tax Credit investor as a Tax Credit limited partner without obtaining any consent, and such Tax Credit investor may assign its interests as a Tax Credit limited partner to a subsequent reputable institutional investor without any consent; (ii) the Tax Credit investor may remove the general partner for a default under the Partnership Agreement, provided the replacement general partner is reasonably acceptable to Authority; and (iii) Developer may grant to the general partner an option and right of first refusal to purchase the Project or the Investor’s limited partnership interest, and the general partner, or its affiliate, may exercise such option or right of first refusal to acquire the Project or the limited partnership interest . For purposes of this Section 15.01, if the Tax Credit investor transfers to an entity in which the Tax Credit investor or an Affiliate of the Tax Credit investor is the general partner or managing member such transferee entity shall be deemed to be a “reputable institutional investor.” This Section 15.01 shall not be applicable to the leasing of Affordable Units to Eligible Tenants in accordance with this Regulatory Agreement. 15.02 Release of Developer. Upon any such assignment made in compliance with Section 15.01 above which is evidenced by a written assignment and assumption agreement in a form approved by Authority’s counsel, Developer shall be released from any liability under this Regulatory Agreement arising from and after the date of such assignment. 612 882/015610-0040 9930825.4 a06/01/17 -30- SECTION 16. DEFAULTS AND REMEDIES. 16.01 Default. Subject to the extensions of time set forth in Section 17.02 of this Regulatory Agreement, failure by either Party to perform any action or covenant required by this Regulatory Agreement or under the Agreement within the time periods provided herein and therein following Notice and failure to cure as described hereafter, constitutes a “Default” under this Regulatory Agreement. A Party claiming a Default shall give written Notice of Default to the other Party specifying such Default. Except as otherwise expressly provided in this Regulatory Agreement or in the Agreement, the claimant shall not institute any proceeding against any other Party, and the other Party shall not be in Default if such party within thirty (30) days from receipt of such Notice, cures, corrects or remedies such failure or delay, or if such Default cannot reasonably be cured within thirty (30) days, such Party commences such cure within thirty (30) days of receipt of such Notice and thereafter diligently prosecutes such cure to completion. The Investor limited partner of Developer shall have the notice and cure rights set forth in the Deed of Trust. 16.02 Remedies; Institution of Legal Actions. Developer’s sole remedy for Authority’s breach of this Regulatory Agreement shall be to institute an action at law or equity to seek specific performance of the terms of this Regulatory Agreement. Developer shall not be entitled to recover damages for any Default of Authority hereunder. Authority shall be entitled to seek any remedy available at law and in equity for Developer’s breach of this Regulatory Agreement. All legal actions must be instituted in the Superior Court of the County of Riverside, State of California, or in the United States District Court for District of California in which Riverside County is located. 16.03 Acceptance of Service of Process. In the event that any legal action is commenced by Developer against Authority, service of process on Authority shall be made by personal service upon the Executive Director or in such other manner as may be provided by law. In the event that any legal action is commenced by Authority against Developer, service of process on Developer shall be made in such manner as may be provided by law. 16.04 Rights and Remedies Are Cumulative. Except as otherwise expressly stated in this Regulatory Agreement, the rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same Default or any other Default by the other Party. 16.05 Inaction Not a Waiver of Default. Any failures or delays by either Party in asserting any of its rights and remedies as to any Default shall not operate as a waiver of any Default or of any such rights or remedies, or deprive either such Party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 613 882/015610-0040 9930825.4 a06/01/17 -31- 16.06 Applicable Law. The internal laws of the State of California shall govern the interpretation and enforcement of this Regulatory Agreement, without regard to conflict of law principles. SECTION 17. GENERAL PROVISIONS. 17.01 Notices, Demands and Communications Between the Parties. Any notices, requests, demands, documents, approvals or disapprovals given or sent under this Regulatory Agreement from one Party to another (collectively, “Notices”) may be personally delivered, delivered by reputable courier that provides a receipt with the date and time of delivery, or deposited with the United States Postal Service for mailing, postage prepaid, to the address of the other Party as stated in this Section, and shall be deemed to have been given or sent at the time of personal delivery, delivery by courier, or, if mailed, on the second day following the date of deposit in the course of transmission with the United States Postal Service. Notices shall be sent as follows: If to Authority: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Phone No.: Facsimile No.: Attention: Executive Director With copies to: Rutan & Tucker, LLP 611 Anton, Suite 1400 Costa Mesa, CA92626 Phone No.: 714-641-5100 Facsimile No.: 714-546-9035 Attention: William H. Ihrke, Esq. If to Developer: ________________________ Phone No.: _______________ Facsimile No.: _____________ Attention: ________________ With a copy to: 17.02 Enforced Delay; Extension of Times of Performance. In addition to specific provisions of this Regulatory Agreement, performance by either Party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Regulatory Agreement shall be extended, where delays or Defaults are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine; restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; acts or omissions of the other Party; acts or failures to act of the City or any other public or governmental agency or entity (other than the acts or failures to act of Authority which shall not excuse performance by Authority); or any other causes beyond the control or without the fault of the Party 614 882/015610-0040 9930825.4 a06/01/17 -32- claiming an extension of time to perform. Notwithstanding anything to the contrary in this Regulatory Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the Party claiming such extension is sent to the other party within ten (10) days of the commencement of the cause. Times of performance under this Regulatory Agreement may also be extended in writing by the mutual agreement of Authority and Developer. Notwithstanding any provision of this Regulatory Agreement to the contrary, the lack of funding to complete the construction of the Project shall not constitute grounds of enforced delay pursuant to this Section. 17.03 Relationship Between Authority and Developer. It is hereby acknowledged by Developer that the relationship between Authority and Developer is not that of a partnership or joint venture and that Authority and Developer shall not be deemed or construed for any purpose to be the agent of the other. Accordingly, Authority shall have no rights, powers, duties or obligations with respect to the development, operation, maintenance or management of the Project. Developer agrees to indemnify, hold harmless and defend Authority from any claim made against Authority arising from a claimed relationship of partnership or joint venture between Authority and Developer with respect to the development, operation, maintenance or management of the Property or the Project, except to the extent occasioned by the active negligence or willful misconduct of Authority or its designated agents or employees. 17.04 No Third Party Rights. With the exception of the City, the Parties intend that no rights nor remedies be granted to any third party as a beneficiary of this Regulatory Agreement or of any covenant, duty, obligation or undertaking established herein. 17.05 Authority Approvals and Actions. Whenever a reference is made herein to an action or approval to be undertaken by Authority, the Executive Director is authorized to act on behalf of Authority unless this Regulatory Agreement specifically provides otherwise or the context should require otherwise. 17.06 Counterparts. This Regulatory Agreement may be signed in multiple counterparts which, when signed by all Parties, shall constitute a binding agreement. 17.07 Integration. This Regulatory Agreement contains the entire understanding between the parties relating to the transaction contemplated by this Regulatory Agreement. Each Party is entering this Regulatory Agreement based solely upon the representations set forth herein and upon each Party’s own independent investigation of any and all facts such party deems material. This Regulatory Agreement constitutes the entire understanding and agreement of the Parties, notwithstanding any previous negotiations or agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. 17.08 Real Estate Brokerage Commission. Authority and Developer each represent and warrant to the other that no broker or finder is entitled to any commission or finder’s fee in connection with this transaction, and each agrees to defend and hold 615 882/015610-0040 9930825.4 a06/01/17 -33- harmless the other from any claim to any such commission or fee resulting from any action on its part. 17.09 Attorneys’ Fees. In any action between the Parties to interpret, enforce, reform, modify, rescind, or otherwise in connection with, any of the terms or provisions of this Regulatory Agreement, the prevailing Party in the action shall be entitled, in addition to damages, injunctive relief, or any other relief to which it might be entitled, reasonable costs, expenses including, without limitation, litigation costs, reasonable attorneys’ fees, and expert witness fees. 17.10 Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe, or limit the scope or the intent of this Regulatory Agreement or of any of its terms. Reference to section numbers are to sections in this Regulatory Agreement, unless expressly stated otherwise. 17.11 Interpretation. As used in this Regulatory Agreement, masculine, feminine, or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word “including” shall be construed as if followed by the words “without limitation.” This Regulatory Agreement shall be interpreted as though prepared jointly by both Parties. 17.12 No Waiver. All waivers of the provisions of this Regulatory Agreement must be in writing by the appropriate authorities of Developer and Authority. A waiver by either Party of a breach of any of the covenants, conditions or agreements under this Regulatory Agreement to be performed by the other Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions of this Regulatory Agreement. 17.13 Modifications. Any alteration, change or modification of or to this Regulatory Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each Party. 17.14 Severability. If any term, provision, condition or covenant of this Regulatory Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Regulatory Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. 17.15 Computation of Time. The time in which any act is to be done under this Regulatory Agreement is computed by excluding the first day (such as the day escrow opens), and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term “holiday” shall mean all holidays as specified in Section 6700 and 6701 of the California Government Code. If any act is to be done by a particular time during a day, that time shall be Pacific Time Zone time. 17.16 Legal Advice. Each Party represents and warrants to the other the following: they have carefully read this Regulatory Agreement, and in signing this 616 882/015610-0040 9930825.4 a06/01/17 -34- Regulatory Agreement, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Regulatory Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Regulatory Agreement; and, they have freely signed this Regulatory Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other Party, or their respective agents, employees, or attorneys, except as specifically set forth in this Regulatory Agreement, and without duress or coercion, whether economic or otherwise. 17.17 Time of Essence. Time is expressly made of the essence with respect to the performance by Authority and Developer of each and every obligation and condition of this Regulatory Agreement. 17.18 Cooperation. Each Party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Regulatory Agreement including, but not limited to, releases or additional agreements. 17.19 Non-Liability of Officials and Employees of Authority. No member, director, officer, employee, or volunteer of Authority shall be personally liable to Developer, or any successor in interest, in the event of any Default or breach by Authority or for any amount which may become due to Developer or its successors, or on any obligations under the terms of this Regulatory Agreement. Developer hereby waives and releases any claim it may have against the members, directors, officers, employees, and volunteers of Authority with respect to any Default or breach by Authority or for any amount which may become due to Developer or its successors, or on any obligations under the terms of this Regulatory Agreement. Developer makes such release with full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” __________________________ Developer’s Initials [End – signatures on next page] 617 882/015610-0040 9930825.4 a06/01/17 -35- IN WITNESS WHEREOF, the parties have executed this Regulatory Agreement as of the respective dates set forth below. “Authority” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director “Developer” ________________________________, a California limited partnership By: Its: 618 882/015610-0040 9930825.4 a06/01/17 -36- 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 _________________________, before me, , (insert name and title of the officer) 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 (Seal) 619 882/015610-0040 9930825.4 a06/01/17 -37- 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 _________________________, before me, , (insert name and title of the officer) 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 (Seal) 620 882/015610-0040 9930825.4 a06/01/17 -38- EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY All of that certain real property located in the City of La Quinta, County of Riverside, State of California, described as follows: [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 621 882/015610-0040 9930825.4 a06/01/17 -39- EXHIBIT B MAP [See following page] 622 882/015610-0040 9930825.4 a06/01/17 -40- EXHIBIT C INCOME COMPUTATION AND CERTIFICATION FORM (See following document) 623 882/015610-0040 9930825.4 a06/01/17 -41- LA QUINTA HOUSING AUTHORITY 78-495 Calle Tampico, La Quinta, CA 92253 INCOME COMPUTATION AND CERTIFICATION FORM (Affordable Housing Eligibility for Renter Occupied Unit PART I. PROPERTY FINANCED WITH GOVERNMENT ASSISTANCE Property Address: _____________________________________________________________________ PART II. TENANT HOUSEHOLD INFORMATION Date of Birth Soc. Sec. # Relationship TOTAL NUMBER OF PERSONS IN HOUSEHOLD:______ (Please list information on other household members below) Mailing Address: _______________________________ Telephone Numbers: Work(____) ________________ ____________________________________________ Home (____) ________________ PART III. GROSS HOUSEHOLD INCOME Complete the following, attach copies of required verification as specified below. Attach a note explaining any significant changes in household income between the previous year and the current year. INFORMATION IS REQUIRED FOR ALL MEMBERS OF THE HOUSEHOLD AGE 18 OR OLDER REGARDLESS OF WHETHER THEY CONTRIBUTE TO THE COSTS OF THE HOUSEHOLD. If you are not required to file a tax return, please indicate this in Part V by your signature. ANN INCOME ANN INCOME INCOME SOURCES for owner others in hshld VERIFICATIONS (needed for file) A. Employment earnings Last tax return & last 3 pay stubs, employer verification B. Self-employment earnings Last 2 tax returns & current financial stmt C. Social Security (OASDI) Annual award letter D. Supplemental Security Income (SSI) Annual award letter E. Public assistance (AFDC, general Current benefit statement assistance, unemployment, etc.) F. Pension (s) Annual award letter, year end stmt, W-2 G. Interest income Last 2 statements for all accounts H. Investment income (stocks, bonds, Last 2 statements for all accounts 624 882/015610-0040 9930825.4 a06/01/17 -42- real estate, etc.) I. Room rental Rental agreement, copies of checks, etc. J. Other income (list type/source) K. TOTAL INCOME (sum of A thru J) / 12 months = ____________ mo. income PART IV. PROPERTY STATUS Will this property be your primary residence?______ Will someone other than the individuals listed above be occupying this property?______ If yes - Name of occupants: _____________________________________________________________ Telephone Number: _______________ Mailing Address: _____________________________________ ___________________________________________________________________________________ My/our housing expenses are as follows: 1.Monthly tenant rent ____________________________ 2.Average monthly utilities _______________________ PART V. TENANT CERTIFICATION I/We understand that after the initial eligibility determination, completion of monitoring forms is required on an annual basis. I/We certify that I/we have disclosed all information pertaining to my/our application and that the information presented in the foregoing Sections I through IV is true and accurate to the best of my (our) knowledge. ______________________________________ ______________________________________ Tenant Date Tenant Date For more information regarding this application, please contact management staff at (760) _______________. ------------------------------------------------------------------------------------------------------------------------------------------- FOR OFFICE USE ONLY _____ Information verified _____ Income category _____ Maximum allowable annual income (_____% of median) _____ Applicant’s annual income__________ gross monthly__________ max housing costs Comments: __________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 625 882/015610-0040 9930825.4 a06/01/17 -43- ___________________________________________________ Management Staff Date 626 882/015610-0040 9930825.4 a06/01/17 -44- EXHIBIT D INCOME RECERTIFICATION FORM (See following document) 627 882/015610-0040 9930825.4 a06/01/17 -45- LA QUINTA HOUSING AUTHORITY 78-495 Calle Tampico, La Quinta, CA 92253 INCOME RECERTIFICATION FORM (Renter Occupied Unit) PART I. GENERAL INFORMATION 1. Property Owner Name ________________________________________ 2. Renter Name _______________________________________________ 3. Property Address ____________________________________________ La Quinta, CA 92623(Please include P.O. Box No. if applicable) 4. Has there been a change in ownership of this property during the preceding 12 month period? Yes( )No( ) (If yes, please explain) ________________________________________ PART II. UNIT INFORMATION 5. Number of Bedrooms ____________ 6. Number of Occupants ____________ Names: _______________________________ ____________________________ _______________________________ ____________________________ PART III. AFFIDAVIT OF RENTER I, _______________________, and I, _______________________, as renters of units assisted pursuant to the La Quinta Housing Authority’s (the “Authority”) Affordable Housing Program (the “Program”), do hereby represent and warrant that the following computation includes all income (I/we) anticipate receiving for the 12-month period commencing on January 1, 20___ (including the renter(s) and all family members of the renters): (a) amount of wages, salaries, overtime pay, commissions, fees, tips and bonuses, and payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay (before payroll deduction) __________ (b) net income from business or profession or rental of property (without deduction for repayment of debts or expansion of business) (c) interest and dividends __________ (d) periodic receipts such as social security, annuities, pensions, retirement funds, insurance policies, disability or death benefits, alimony, child support, regular contributions or gifts from persons not occupying unit __________ (e) public assistance allowance or grant plus excess of maximum allowable for shelter or utilities over the actual allowance for such purposes __________ 628 882/015610-0040 9930825.4 a06/01/17 -46- (f) regular and special pay and allowances of a member of armed services (whether or not living in the dwelling) who is head of the family or spouse __________ Subtotal (a) through (f) __________ LESS: Portion of above items which are income of a family member who is less than 18 years old or a full-time student ( ________ ) TOTAL ELIGIBLE INCOME __________ NOTE: The following items are not considered income: casual or sporadic gifts; amounts specifically for or in reimbursement of medical expenses; lump sum payment such as inheritances, insurance payments, capital gains and settlement for personal or property losses; educational scholarships paid directly to the student or educational institution; government benefits to a veteran for education; special pay to a serviceman head of family away from home and under hostile fire; foster child care payments; value of coupon allotments for purpose of food under Food Stamp Act of 1964 which is in excess of amount actually charged the eligible household; relocation payments under Title II of Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970; payments received pursuant to participation in the following programs: VISTA, Service Learning Programs, and Special Volunteer Programs, SCORE, ACE, Retired Senior Volunteer Program, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience. 2. This affidavit is made with the knowledge that it will be relied upon by the Landlord and Authority to determine maximum income for eligibility and (I/we) warrant that all information set forth in this Part III is true, correct and complete and based upon information (I/we) deem reliable and that the estimate contained in paragraph 1 is reasonable and based upon such investigation as the undersigned deemed necessary. 3. (I/We) will assist the Landlord and Authority in obtaining any information or documents required to verify the statements made in this Part III and have attached hereto a copy of our federal income tax return for the last year (20___). 4. (I/We) acknowledge that (I/we) have been advised that the making of any misrepresentation or misstatement in this affidavit will constitute a material breach of (my/our) agreement with the Landlord to rent the unit and will additionally enable Authority to initiate and pursue all applicable legal and equitable remedies with respect to the unit and to me/us. B. (My/Our) monthly housing expenses are limited to the following: 1. Base rent __________________________ 2. Average Monthly Utilities __________________________ 3. Other (explain) __________________________ (I/We) understand that completion of monitoring forms is required on an annual basis and agree to notify the La Quinta Housing Authority in writing of any change in ownership or rental of the unit.(I/We) do hereby swear under penalty of perjury that the foregoing statements are true and correct. _______________________________ Date ______________________ _______________________________ Renter(s) 629 882/015610-0040 9930825.4 a06/01/17 -47- EXHIBIT E FORM OF CERTIFICATION OF CONTINUING PROGRAM COMPLIANCE (See following document) 630 882/015610-0040 9930825.4 a06/01/17 -48- CERTIFICATION OF CONTINUING PROGRAM COMPLIANCE The undersigned, being duly authorized to execute this certificate on behalf of ______________________, owner of the _______________________ Project, hereby represents and warrants that: 1. He/she has read and is thoroughly familiar with the provisions of the Affordable Housing Regulatory Agreement between the La Quinta Housing Authority and __________________________________________. 2. As of June 30, 20__, the following number of residential units in the Project (i) are currently occupied by tenants qualifying as Extremely Low Income Households at Affordable Rents; (ii) are currently occupied by tenants qualifying as 45% Very Low Income Households at Affordable Rents; (iii) are currently occupied by tenants qualifying as Very Low Income Households at Affordable Rents; or (iv) are currently vacant and being held available for occupancy by Eligible Tenants and have been so held continuously since the date Eligible Tenants vacated such unit, as indicated: i. _____ Units occupied by Extremely Low Income Households ii. _____ Units occupied by 45% Very Low Income Households iii. _____ Units occupied by Very Low Income Households iv. _____ vacant Units 3. The unit number, unit size, rental amount charged and collected, number of occupants, and the income of the occupants for each Affordable Unit in the Project are set forth on the attached list. All Affordable Units in the Project are rented at Affordable Rent. Dated:____________________, 20__ DEVELOPER NAME _______________________________, a California limited partnership By: (Printed name and title) 631 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 18 ATTACHMENT NO. 18 FORM OF NOTICE OF AFFORDABILITY RESTRICTIONS [See following document] 632 882/015610-0040 9930825.4 a06/01/17 -1- RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Attn: Executive Director Exempt From Recording Fee Pursuant to Government Code § 27383 NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY Important notice to owners, purchasers, tenants, lenders, brokers, escrow and title companies, and other persons, regarding affordable housing restrictions on the real property described in this Notice: Affordable housing restrictions have been recorded with respect to the property described below (referred to in this Notice as the “Property”) which require that the Property be developed as an affordable rental housing development and that all of the units be rented to and occupied by persons and households of limited income at affordable rents. Title of Document Containing Affordable Housing Restrictions: Affordable Housing Regulatory Agreement (“Agreement”). Parties to Agreement: ___________________, a California limited partnership (“Developer”), and the La Quinta Housing Authority, a public body, corporate and politic (“Authority”). The Agreement is recorded concurrently with this Notice, in the Official Records of Riverside County. Legal Description of Property: See Exhibit “A” attached hereto and incorporated herein by this reference. Property Location: Located at 42-800 Washington Street, in the City of La Quinta. 633 882/015610-0040 9930825.4 a06/01/17 -2- Assessor’s Parcel Numbers of Property: 609-040-007, 023, and 028. Summary of Agreement: o The Agreement provides for the rehabilitation of seventy-two (72) existing affordable units, demolition of one (1) existing affordable unit, and construction of forty-eight (48) new apartment units, new community facilities, and related amenities and site improvements o The Agreement restricts the rental of (i) ______ (__) units to households whose annual income does not exceed the qualifying limits under California law for “extremely low income households”; (ii) ______________(__) units to households whose annual income does not exceed ______ percent of the median income for the Riverside County area; and (iii) _____________ (__) units to households whose annual income does not exceed the qualifying limits under California law for “very low income households”, all as established by HUD, and as published periodically by HCD. o The Regulatory Agreement restricts the rents that may be charged to such households to the maximum amount of rent, including a reasonable utility allowance, that does not exceed the rent permitted to be charged to the applicable household, as the case may be, determined pursuant to Health and Safety Code Section 50053(b). o The term of the Agreement is fifty-seven (57) years. This Notice does not contain a full description of the details of all of the terms and conditions of the Agreement. You will need to obtain and read the Agreement to fully understand the restrictions and requirements which apply to the Property. This Notice is being recorded and filed in compliance with Health and Safety Code Section 33334.3(f)(3) and (4), and shall be indexed against Authority and the Owner of the Property. 634 882/015610-0040 9930825.4 a06/01/17 -3- [signature on next page] 635 882/015610-0040 9930825.4 a06/01/17 -4- Date: _______________, 201_ “Authority” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director 636 882/015610-0040 9930825.4 a06/01/17 -5- 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 _________________________, before me, , (insert name and title of the officer) 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 (Seal) 637 882/015610-0040 9930825.4 a06/01/17 -6- EXHIBIT “A” LEGAL DESCRIPTION OF PROPERTY All of that certain real property located in the City of La Quinta, County of Riverside, State of California, described as follows: [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 638 882/015610-0040 9930825.4 a06/01/17 ATTACHMENT NO. 19 ATTACHMENT NO. 19 FORM OF RELEASE OF CONSTRUCTION COVENANTS [See following document] 639 882/015610-0040 9930825.4 a06/01/17 -1- RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Attention: Executive Director (Space Above for Recorder’s Use) Exempt from Recordation Fee per Gov. Code § 27383 RELEASE OF CONSTRUCTION COVENANTS This RELEASE OF CONSTRUCTION COVENANTS (“Release”) is made this ____ day of ________________, by the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Authority”), in favor of ________________ ______________________, a California limited partnership (“Developer”). R E C I T A L S A. Developer is the fee owner of that certain real property located in the City of La Quinta, County of Riverside, State of California, more particularly described in the legal description attached hereto as Exhibit “A” (“Property”). B. On or about _____________, 2017, Authority and Coachella Valley Housing Coalition (“CVHC”) entered into that certain Affordable Housing and Property Disposition Agreement (“Agreement”) which provides for CVHC to rehabilitate a seventy-three (73) unit affordable rental apartment development and construct sixty- eight (68) new apartment units on the Property, as more particularly described therein as the “Project.” CVHC has assigned to Developer, and Developer has assumed from CVHC, all of CVHC’s rights and obligations in and to the Agreement. C. Pursuant to the Agreement, Authority is required to furnish Developer with this Release upon request by Developer after completion of construction of the Project. D. The issuance by Authority of this Release shall be conclusive evidence that Developer has complied with the terms of the Agreement pertaining to the construction of the Project. NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, the parties hereto agree as follows: 1. As provided in the Agreement, Authority does hereby certify that the construction of the Project has been satisfactorily performed and completed, and that such development and construction work complies with the Agreement. 640 882/015610-0040 9930825.4 a06/01/17 -2- 2. This Release does not constitute evidence of compliance with or satisfaction of any obligation of Developer to any holder of a mortgage or any insurer of a mortgage security money loaned to finance the work of construction of improvements and development of the Property, or any part of thereof. 3. This Release is not a notice of completion as referred to in Section 3093 of the California Civil Code. 4. This Release does not terminate any other agreement or document executed by Developer in connection with the Agreement, including, without limitation, that certain Affordable Housing Regulatory Agreement recorded on ________, as Instrument No. __________________, in the Official Records of the County of Riverside (the “Official Records”), and that certain Deed of Trust recorded on ___________, as Instrument No. ________________, in the Official Records, all of which shall survive recordation of this Release. IN WITNESS WHEREOF, Authority has executed this Release as of the date set forth above. Date: LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Frank J. Spevacek, Executive Director 641 882/015610-0040 9930825.4 a06/01/17 -3- 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 Riverside ) On _________________________, before me, , (insert name and title of the officer) 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 (Seal) 642 882/015610-0040 9930825.4 a06/01/17 -4- EXHIBIT “A” LEGAL DESCRIPTION OF PROPERTY All of that certain real property located in the City of La Quinta, County of Riverside, State of California, described as follows: [Legal description to be added at such time as a parcel map subdividing the Property has been recorded in the Official Records of the County of Riverside, which shall be prior to the finalization and execution of this document] 643 TABLE OF CONTENTS Page 882/015610-0040 9930825.4 a06/01/17 -i- 1. DEFINITIONS ..................................................................................................... 3 2. PARTIES .......................................................................................................... 13 2.1 Authority ................................................................................................. 13 2.2 Developer .............................................................................................. 13 3. SCHEDULE OF PERFORMANCE ................................................................... 13 4. DUE DILIGENCE PERIOD; INSPECTIONS AND REVIEW PERMISSION TO ENTER PROPERTY; AS-IS; PHYSICAL AND ENVIRONMENTAL CONDITION ...................................................................... 13 4.1 Due Diligence Items Already Provided .................................................. 13 4.2 Due Diligence Items to be Provided ....................................................... 13 4.3 Environmental/Physical Property Condition Due Diligence .................... 15 4.4 Financial/Operational Condition Due Diligence Period; New Indebtedness; Developer’s Equity ......................................................... 16 4.5 Preliminary Title Report ......................................................................... 16 4.6 Survey .................................................................................................... 17 4.7 USDA Matters ........................................................................................ 17 4.8 Books and Records ............................................................................... 18 4.9 “AS-IS” ................................................................................................... 19 5. FINANCING PLAN FOR THE PROJECT ......................................................... 19 5.1 Financing Plan ....................................................................................... 19 5.2 Authority Loans ...................................................................................... 20 5.3 Tax Credit Application ............................................................................ 21 5.4 Project Budget ....................................................................................... 22 5.5 Financing Commitments ........................................................................ 22 5.6 Developer Right to Terminate ................................................................ 22 5.7 Authority Right to Terminate .................................................................. 23 5.8 Developer Fee ....................................................................................... 23 6. DISPOSITION OF PROPERTY ........................................................................ 24 6.1 Agreement ............................................................................................. 24 6.2 Conditions for Authority’s Benefit ........................................................... 24 6.3 Conditions for Developer’s Benefit ......................................................... 27 6.4 Developer Right to Terminate ................................................................ 30 6.5 Developer’s Failure to Satisfy Conditions .............................................. 30 6.6 Waiver of Conditions .............................................................................. 30 7. CLOSE OF ESCROW; ESCROW EXPENSES ................................................ 30 7.1 Close of Escrow ..................................................................................... 30 7.2 Expenses of Developer .......................................................................... 31 644 Page 882/015610-0040 9930825.4 a06/01/17 -ii- 7.3 Instruction to Escrow Holder Regarding Waiver of Transfer Taxes and Recording Fees .............................................................................. 31 7.4 Broker’s Commissions ........................................................................... 32 8. OTHER ESCROW INSTRUCTIONS ................................................................ 32 8.1 Funds in Escrow .................................................................................... 32 8.2 Failure to Close ...................................................................................... 32 8.3 Amendments .......................................................................................... 32 8.4 Notices ................................................................................................... 32 8.5 Liability ................................................................................................... 32 9. DEVELOPMENT OF THE PROJECT ............................................................... 33 9.1 Scope of Development........................................................................... 33 9.2 Additional Governmental Permits and Approvals ................................... 33 9.3 Displacement; Relocation ...................................................................... 33 9.4 Cost of Project ....................................................................................... 33 9.5 Indemnity ............................................................................................... 33 9.6 Insurance Requirements ........................................................................ 34 9.7 Remedies for Defaults Re: Insurance .................................................... 37 9.8 Obligation to Repair and Restore Damage Due to Casualty Covered by Insurance .......................................................................................... 37 9.9 Rights of Access .................................................................................... 37 9.10 Compliance with Laws; Compliance with Prevailing Wage Laws ........... 38 9.11 Anti-Discrimination ................................................................................. 39 9.12 Taxes and Assessments ........................................................................ 40 9.13 Right of Authority to Satisfy Other Liens on the Property(s)................... 40 9.14 Non-liability of Authority ......................................................................... 40 9.15 Release of Construction Covenants ...................................................... 41 10. AFFORDABILITY COVENANTS ...................................................................... 41 11. GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS ........... 42 11.1 Developer’s Formation, Qualification and Compliance .......................... 42 11.2 Litigation ................................................................................................ 42 11.3 Authority ................................................................................................. 42 12. DEFAULTS AND REMEDIES ........................................................................... 42 12.1 Event of Default ..................................................................................... 42 12.2 No Waiver .............................................................................................. 43 12.3 Legal Actions ......................................................................................... 43 12.4 Reimbursement of Authority .................................................................. 44 13. NOTICES ......................................................................................................... 44 14. ASSIGNMENT .................................................................................................. 45 14.1 Generally Prohibited .............................................................................. 45 645 Page 882/015610-0040 9930825.4 a06/01/17 -iii- 14.2 Release of Developer ............................................................................ 46 15. ADMINISTRATION ........................................................................................... 46 16. MISCELLANEOUS ........................................................................................... 46 16.1 Counterparts .......................................................................................... 46 16.2 Prior Agreements; Amendments ............................................................ 46 16.3 Severability of Provisions ....................................................................... 46 16.4 Interpretation .......................................................................................... 47 16.5 Accounting Principles............................................................................. 47 16.6 Attachments Incorporated ...................................................................... 47 16.7 Time of the Essence .............................................................................. 47 16.8 Warranty Against Payment of Consideration ......................................... 47 16.9 Non-liability of Authority Officials and Employees .................................. 47 16.10 Force Majeure ........................................................................................ 47 16.11 Nondiscrimination Covenants ................................................................ 48 16.12 Consents and Approvals ........................................................................ 49 16.13 Third Party Beneficiary........................................................................... 49 List of Attachments: 1 - Legal Description and Depiction of the Property 2 - Site Plan 3 - Schedule of Performance 4 - Scope of Development 5 - Form of Grant Deed 6 - Form of Warranty Bill of Sale 7 - Form of Assignment of Leases 8 - Form of Non-Foreign Affidavit 9 - Form of Assignment of Contracts, Permits, Intangible Personal Property, Warranties, and Guaranties (to Developer) 10 - Form of Assignment of Contracts, Permits, Intangible Personal Property, Warranties, and Guaranties (to Authority) 11 - Form of Notice to Tenants 12 - Form of Lead-Based Paint Disclosure and Acknowledgement 13 - Form of Disbursement Request 14A - Form of Authority Note (Plans) 14B Form of Authority Note (Property and Construction) 15A - Form of Authority Deed of Trust (Plans) 15B Form of Authority Deed of Trust (Property and Construction) 16 - Project Budget 17 - Form of Authority Regulatory Agreement 18 - Form of Notice of Affordability 19 - Form of Release of Construction Covenants 646 City of La Quinta CITY COUNCIL MEETING: June 6, 2017 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION TO APPROVE A TIME EXTENSION FOR SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) FOR A 208-UNIT SENIOR LIVING COMMUNITY LOCATED AT THE NORTHEAST CORNER OF WASHINGTON STREET AND AVENUE 50 RECOMMENDATION Adopt a resolution to amend Condition of Approval No. 3 of Site Development Permit 2015- 0004 approving a time extension to December 6, 2017 for a 208-unit senior living community located at the northeast corner of Washington Street and Avenue 50. EXECUTIVE SUMMARY At the May 16, 2017 City Council meeting, staff was directed to prepare a resolution to approve a six-month time extension for the project. The senior living community was originally approved in 2004. WSL La Quinta R/E, LLC (Applicant) requests amending Condition of Approval (COA) No. 3 for the site development permit (SDP) to allow the seventh, two-year time extension, due to new flood control requirements by the Coachella Valley Water District (CVWD) (Attachment 1). FISCAL IMPACT – None. BACKGROUND/ANALYSIS The Council voted on May 16, 2017 to continue the time extension request to the June 6, 2017 meeting with direction to staff to prepare a resolution to approve a six-month time extension. Staff prepared an amendment to COA No. 3 to permit a time extension to December 6, 2017. Further time extensions may be considered based on the applicant’s progress in securing building permits demonstrated by submittal of a revised preliminary grading plan to the City and applications to the U.S. Army Corps of Engineers and U.S. Fish and Wildlife for flood control improvements. The project is a 208-unit senior living community with independent living and 24-hour supervision units. Basic/personal care and health-related services would be provided including dining, housekeeping, and laundry, as well as on-site social and recreational activities (Attachment 2 – SDP2015-0004 [SDP 2003-762] Extension 6). The first three extensions were submitted by the original applicant/owner. In 2010, a new applicant/owner proposed an amendment to the Specific Plan (SP) and SDP in order to revise the architectural style, site design, landscaping, and business model. The amended PUBLIC HEARING ITEM NO. 2 647 plans, as well as a fourth extension, were approved in 2011. A fifth time extension was approved in 2013 and a sixth time extension of one year was approved in 2015 and expired on November 3, 2016. COA No. 3 of the SDP was approved with the sixth and last time extension to November 3, 2016. The applicant submitted their time extension request prior to the SDP expiration and requests that Council amend COA No. 3 to allow a seventh two- year time extension to November 3, 2018. The applicant has expressed that the project development has not occurred due to CVWD requirements that the applicant construct a flood wall and slope lining along the La Quinta Evacuation Channel (Attachment 3) Staff prepared revisions to the conditions of approval if Council elects to approve the time extension (Attachment 4). The revisions are limited to COA No. 25 due to the 2035 General Plan, which requires an additional westbound through-lane at the intersection of Washington Street and Avenue 50 and dual left turn lanes. This will require relocating the north curb and signal pole on Avenue 50 approximately 10 feet to the north and minor modifications to the landscaped parkway along Avenue 50. Other revisions include elimination of turf in perimeter landscape areas consistent with the City’s water efficient landscape standards. References to department and staff titles were updated. AGENCY AND PUBLIC REVIEW This request was sent to all applicable City departments and affected public agencies on March 21, 2017. All applicable comments received are incorporated in the recommended Conditions of Approval. This project was advertised in The Desert Sun newspaper on May 5, 2017, and mailed to all property owners within 500 feet of the site. To date, one comment letter was received on May 8, 2017 from Mr. William Walker in opposition to the proposed time extension request (Attachment 5). ENVIRONMENTAL REVIEW The Design and Development Department has determined that this request has been previously assessed in conjunction with Environmental Assessment 2003-470, prepared for Specific Plan 2004-071 and certified on December 23, 2004. No changed circumstances or conditions are proposed, which would trigger the preparation of subsequent environmental analysis. ALTERNATIVES Council may deny the continuance request or incorporate any adjustments deemed appropriate in order to approve the proposed time extension request. Prepared by: Gabriel Perez, Planning Manager Approved by: Timothy R. Jonasson, P.E., Design and Development Director/City Engineer Attachments: 1. Letter from owner/applicant 2. Previously-approved La Paloma development plans 3. Recommended revisions to Conditions of Approval SDP 2015-0004 (City Council Resolution 2015-052) 4. Applicant Letter concerning amendments to Condition No. 3 5. Correspondence from Mr. William Walker 648 CITY COUNCIL RESOLUTION 2017 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A SEVENTH TIME EXTENSION FOR SITE DEVELOPMENT PERMIT 2003-762, INCLUDING ARCHITECTURAL, SITE, AND LANDSCAPING PLANS FOR LA PALOMA CASE NUMBER: SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) APPLICANT: WSL LA QUINTA R/E, LLC WHEREAS, City Council of the City of La Quinta, California did, on the 6th day of June, 2017, hold a duly noticed Public Hearing to consider a request by WSL La Quinta R/E, LLC for approval of a seventh extension of time for architectural, site, and landscaping plans for a 208-unit senior living community located on the northeast corner of Washington Street and Avenue 50, more particularly described as: APN: 646-070-016 WHEREAS, the City Council of the City of La Quinta, California, did on the 7th day of December, 2004, hold a duly noticed Public Hearing and approved by adoption of Resolution 2004-153, a request by Westport La Quinta, L.P. for approval of a Site Development Permit; and, WHEREAS, the City Council of the City of La Quinta, California, did on the 18th day of September, 2007, hold a duly noticed Public Hearing and approved by adoption of Resolution 2007-089, a request by Westport La Quinta, L.P. for approval of a time extension for Site Development Permit 2003-762; and, WHEREAS, the City Council of the City of La Quinta, California, did on the 7th day of October, 2008, hold a duly noticed Public Hearing and approved by adoption of Resolution 2008-063, a request by Westport La Quinta, L.P. for approval of a second time extension for Site Development Permit 2003-762; and, WHEREAS, the City Council of the City of La Quinta, California, did on the 19th day of January, 2010, hold a duly noticed Public Hearing and approved by adoption of Resolution 2010-006, a request by WSL La Quinta R/E, LLC, for approval of a third time extension for Site Development Permit 2003-762; and, WHEREAS, the City Council of the City of La Quinta, California, did on the 19th day of July, 2011, hold a duly noticed Public Hearing and approved by adoption of Resolution 2011-062, a request by WSL La Quinta R/E, LLC for approval of a fourth time extension and amendment for Site Development Permit 2003-762; and, 649 Resolution 2017- Site Development Permit 2016-0004 (SDP 2003-762 Extension 6) La Paloma (WSL La Quinta R/E, LLC) Adopted: June 6, 2017 Page 3 of 4 WHEREAS, the City Council of the City of La Quinta, California, did on the 6th day of August, 2013, hold a duly noticed Public Hearing and approved by adoption of Resolution 2013-041, a request by WSL La Quinta R/E, LLC, for approval of a fifth time extension for Site Development Permit 2003-762; and, WHEREAS, City Council of the City of La Quinta, California did, on the 3rd day of November, 2015, hold a duly noticed Public Hearing to consider a request by WSL La Quinta R/E, LLC for approval of a sixth extension of time for architectural, site, and landscaping plans for a 208-unit senior living community located on the northeast corner of Washington Street and Avenue 50, more particularly described as: WHEREAS, the applicant, on the 5th day of October, 2016, applied for a seventh time extension; and, WHEREAS, the Design and Development Department published a public hearing notice for this request in The Desert Sun newspaper on May 5, 2017, as prescribed by the Municipal Code. Public hearing notices were also mailed to all property owners within 500 feet of the site; and WHEREAS, at said Public Hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the City Council did make the following mandatory findings to justify approval of the Site Development Permit Time Extension: 1.Consistency with the General Plan The proposed Site Development Permit is consistent with the La Quinta General Plan, as it proposes a multi-unit age-restricted residential community, which is General Plan-designated for MHDR (Medium High Density Residential) development. 2.Consistency with the Zoning Code and La Paloma Specific Plan The proposed structures, as conditioned, are consistent with the development standards of the City’s Zoning Code and the La Paloma Specific Plan, in terms of architectural style, building height, building mass, and landscaping. The community is consistent with the La Quinta Zoning Map, as it proposes a multi-unit age-restricted residential community which is General Plan-designated for MHDR (Medium High Density Residential) development. The site development permit has been conditioned to ensure compliance with the zoning standards of the MHDR district, and other 650 Resolution 2017- Site Development Permit 2016-0004 (SDP 2003-762 Extension 6) La Paloma (WSL La Quinta R/E, LLC) Adopted: June 6, 2017 Page 3 of 4 supplemental standards as established in Title 9 of the La Quinta Municipal Code and the La Paloma Specific Plan. 3. Compliance with the California Environmental Quality Act (CEQA) The La Quinta Community Development Department has determined that this request has been previously assessed in conjunction with Environmental Assessment 2003-470 which was prepared for Specific Plan 2004-071, which was certified on December 23, 2004. No changed circumstances or conditions are proposed which would trigger the preparation of subsequent environmental analysis pursuant to Public Resources Code Section 21166. 4. Architectural Design The architectural design aspects of the proposed La Paloma community provide interest through use of varied roof elements, enhanced building and façade treatments, and other design details which will be compatible with, and not detrimental to, surrounding development, and with the overall design quality prevalent in the City. 5. Site Design The site design aspects of the proposed La Paloma community, as conditioned, will be compatible with, and not detrimental to, surrounding development, and with the overall design quality prevalent in the City, in terms of interior circulation, pedestrian access, and other architectural site design elements such as scale, mass, and appearance. The main building and cottage units are properly sized with regards to height and floor area, and are situated at engineer-approved locations with regards to vehicular and pedestrian access. Furthermore, the visual impact of the two-story main building is minimized from view from the existing residential neighborhood to the north as the two-story portion of the main building is located a minimum of 75 feet from existing single-family homes on the south side of Saguaro Road, and the highest part of the main building, the uninhabited tower feature, is set back over 150-feet from the northern property line. 6. Landscape Design The proposed project is consistent with the landscaping standards and plant palette and implements the standards for landscaping and aesthetics established in the General Plan and Zoning Code. Additionally, the assorted species of plants, which are taken from the approved plant list in the La Paloma Specific Plan, provide diversity and add character to the proposed 651 Resolution 2017- Site Development Permit 2016-0004 (SDP 2003-762 Extension 6) La Paloma (WSL La Quinta R/E, LLC) Adopted: June 6, 2017 Page 3 of 4 community. The project landscaping for the proposed community, as conditioned, shall unify and enhance visual continuity of the proposed community with the surrounding development. Landscape improvements are designed and sized to provide visual appeal. The permanent overall site landscaping utilizes various tree and shrub species to blend with the building architecture NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. That the above recitations are true and constitute the Findings of the City Council in this case. SECTION 2. That this request has been previously assessed in conjunction with Environmental Assessment 2003-470 which was prepared for Specific Plan 2004-071, which was certified on December 23, 2004. No changed circumstances or conditions are proposed which would trigger the preparation of subsequent environmental analysis pursuant to Public Resources Code Section 21166. SECTION 3. That it does hereby approve a seventh time extension to December 6, 2017, for Site Development Permit 2015-0004 (SDP 2003-762), for the reasons set forth in this Resolution and subject to the attached Conditions of Approval (Exhibit A). PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 6th day of June, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: __________________________ LINDA EVANS, Mayor City of La Quinta, California 652 Resolution 2017- Site Development Permit 2016-0004 (SDP 2003-762 Extension 6) La Paloma (WSL La Quinta R/E, LLC) Adopted: June 6, 2017 Page 3 of 4 ATTEST: _____________________________________ SUSAN MAYSELS, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: _______________________________ WILLIAM H. IHRKE, City Attorney City of La Quinta, California 653 654 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 1 of 27 GENERAL 1.The applicant agrees to defend, indemnify and hold harmless the City of La Quinta (“City”), its agents, officers and employees from any claim, action or proceeding to attack, set aside, void, or annul the approval of this Site Development Permit. The City shall have sole discretion in selecting its defense counsel. The City shall promptly notify the applicant of any claim, action or proceeding and shall cooperate fully in the defense. 2.This Site Development Permit shall comply with the requirements and standards of Government Code §§ 66410 through 66499.58 (the “Subdivision Map Act”), and Chapter 13 of the La Quinta Municipal Code (“LQMC”). The City of La Quinta’s Municipal Code can be accessed on the City’s Web Site at www.la-quinta.org. 3.The Site Development Permit shall expire on December 6, 2017 and shall become null and void in accordance with La Quinta Municipal Code Section 9.200.080, unless a building permit has been issued. No further time extensions will be considered, unless the applicant is able to demonstrate progress towards issuance of a building permit such as submittal of a revised preliminary grading plan to the Development Services Division and permit applications to the U.S Army Corps of Engineers and California Fish and Wildlife for project-related clearances. . 4.Prior to the issuance of any grading, construction, or building permit by the City, the applicant shall obtain any necessary clearances and/or permits from the following agencies, if required: •Riverside County Fire Marshal •Public Works Department (Grading Permit, Green Sheet (Public Works Clearance) for Building Permits, Water Quality Management Plan (WQMP) Exemption Form – Whitewater River Region, Improvement Permit) •Design and Development Department •Riverside Co. Environmental Health Department •Desert Sands Unified School District (DSUSD) •Coachella Valley Water District (CVWD) •Imperial Irrigation District (IID) •California Regional Water Quality Control Board (CRWQCB) •State Water Resources Control Board EXHIBIT A 655 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 2 of 27 • SunLine Transit Agency (SUNLINE) • South Coast Air Quality Management District Coachella Valley (SCAQMD) The applicant is responsible for all requirements of the permits and/or clearances from the above listed agencies. When these requirements include approval of improvement plans, the applicant shall furnish proof of such approvals when submitting those improvements plans for City approval. 5. Coverage under the State of California Construction General Permit must be obtained by the applicant; who then shall submit a copy of the Regional Water Quality Control Board’s (“RWQCB”) acknowledgment of the applicant’s Notice of Intent (“NOI”) and Waste Discharger Identification (WDID) number to the City prior to the issuance of a grading or building permit. 6. The applicant shall comply with applicable provisions of the City’s NPDES r discharge permit, LQMC Sections 8.70.010 et seq. (Stormwater Management and Discharge Controls), and 13.24.170 (Clean Air/Clean Water); Riverside County Ordinance No. 457; the California Regional Water Quality Control Board – Colorado River Basin Region Board Order No. R7-2013-0011 and the State Water Resources Control Board’s Order No. 2009-0009-DWQ and Order No. 2010-0014-DWQ. A. For construction activities including clearing, grading or excavation of land that disturbs one (1) acre or more of land, or that disturbs less than one (1) acre of land, but which is a part of a construction project that encompasses more than one (1) acre of land, the Permitee shall be required to submit a Storm Water Pollution Protection Plan (“SWPPP”) to the State Water Resources Control Board. The applicant or design professional can obtain the California Stormwater Quality Association SWPPP template at www.cabmphandbooks.com for use in their SWPPP preparation. B. The applicant shall ensure that the required SWPPP is available for inspection at the project site at all times through and including acceptance of all improvements by the City. C. The applicant’s SWPPP shall include provisions for all of the following Best Management Practices (“BMPs”) (LQMC Section 8.70.020 (Definitions)): 1) Temporary Soil Stabilization (erosion control). 2) Temporary Sediment Control. 656 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 3 of 27 3) Wind Erosion Control. 4) Tracking Control. 5) Non-Storm Water Management. 6) Waste Management and Materials Pollution Control. D. The SWPPP and BMPs shall remain in effect for the entire duration of project construction until all improvements are completed and accepted by the City Council. 7. Permits issued under this approval shall be subject to the provisions of the Development Impact Fee and Transportation Uniform Mitigation Fee programs in effect at the time of issuance of building permit(s). 8. Approval of this Site Development Permit shall not be construed as approval for any horizontal dimensions implied by any site plans or exhibits unless specifically identified in the following conditions of approval. 9. Developer shall reimburse the City, within thirty (30) days of presentment of the invoice, all costs and actual attorney’s fees incurred by the City Attorney to review, negotiate and/or modify any documents or instruments required by these conditions, if Developer requests that the City modify or revise any documents or instruments prepared initially by the City to effect these conditions. This obligation shall be paid in the time noted above without deduction or offset and Developer’s failure to make such payment shall be a material breach of the Conditions of Approval. 10. Developer shall reimburse the City, within thirty (30) days of presentment of the invoice, all costs and actual consultant’s fees incurred by the City for engineering and/or surveying consultants to review and/or modify any documents or instruments required by this project. This obligation shall be paid in the time noted above without deduction or offset and Developer’s failure to make such payment shall be a material breach of the Conditions of Approval. PROPERTY RIGHTS 11. Prior to issuance of any permit(s), the applicant shall acquire or confer easements and other property rights necessary for the construction or proper functioning of the proposed development. Conferred rights shall include irrevocable offers to dedicate or grant access easements to the City for emergency services and for 657 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 4 of 27 maintenance, construction and reconstruction of essential improvements. 12. Pursuant to the aforementioned condition, conferred rights shall include approvals from the master developer or the HOA over easements and other property rights necessary for construction and proper functioning of the proposed development not limited to access rights over proposed and/or existing private streets that access public streets and open space/drainage facilities of the master development. 13. The applicant shall offer for dedication all public street rights-of-way in conformance with the City's General Plan, Municipal Code, applicable specific plans, site development permit, and/or as required by the City Engineer. 14. The public street right-of-way offers for dedication required for this development include: A. PUBLIC STREETS 1) Washington Street (Major Arterial, 120' ROW) – The standard 60 feet from the centerline of Washington Street for a total 120-foot ultimate developed right of way except for: Additional right-of-way is required on Washington Street north of Avenue 50 to provide for the realignment of Washington Street to accommodate the dual left turn lanes for southbound Washington Street to eastbound Avenue 50 as approved by the City Engineer. a) An additional variable right of way dedication for a deceleration/right turn only lane and bus turnout at the proposed primary project entry measured seventy-six feet (76’) east of the centerline of Washington Street and length as conditioned under STREET AND TRAFFIC IMPROVEMENTS (Condition of Approval No. 23A(1)(b)). 2) Avenue 50 (Primary Arterial, Option B 100' ROW) – The standard 50 feet from the centerline of Avenue 50 for a total 100-foot ultimate developed right of way except for: a) An additional right of way dedication of 10 feet for a right turn only lane at the Avenue 50 intersection with Washington Street (a total of sixty feet (60’) north of the centerline of Avenue 50) and length as conditioned under STREET AND 658 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 5 of 27 TRAFFIC IMPROVEMENTS (Condition of Approval No. 23A(2)(a)). 15. Dedications shall include additional widths as necessary for dedicated right and left turn lanes, bus turnouts, and other features contained in the approved construction plans. Pursuant to this requirement, the Applicant shall include in the submittal packet containing the rough grading plans submitted for plan checking, an offsite street geometric layout, drawn at 1” equals 40 feet, detailing the following design aspects: median curb line, outside curb line, lane line alignment including lane widths, left turn lanes, deceleration lane(s) and bus stop turnout(s). The geometric layout shall be accompanied with sufficient professional engineering studies to confirm the appropriate length of all proposed turn pockets and auxiliary lanes that may impact the right of way dedication required of the project and the associated landscape setback requirement. 16. When the City Engineer determines that access rights to the proposed street right- of-way shown on the approved Site Development Permit are necessary prior to approval of the improvements dedicating such right-of-way, the applicant shall grant the necessary right-of-way within 60 days of a written request by the City. 17. The applicant shall create perimeter landscaping setbacks along all public rights- of-way as follows: A. Washington Street (Major Arterial) - 20-foot from the R/W-P/L. B. Avenue 50 (Primary Arterial) – A minimum 20-foot from the R/W-P/L. The listed setback depth shall be the average depth where a meandering wall design is approved. The setback requirements shall apply to all frontages including, but not limited to, remainder parcels and sites dedicated for utility purposes. Where public facilities (e.g., sidewalks) are placed on privately-owned setbacks, the applicant shall offer for dedication blanket easements for those purposes on the Final Map. 18. At locations where the onsite finished grade adjacent to the landscaped setback lot has an elevation differential with respect to the arterial street top of curb exceeding 11.0 feet, the applicant shall comply with, and accommodate, the maximum slope gradients in the parkway/setback area and meandering sidewalk 659 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 6 of 27 requirements by either: 1) increasing the landscape setback size as needed, or 2) installing retaining walls between the sidewalk and the back of the landscaped area as needed. 19. The applicant shall offer for dedication those easements necessary for the placement of, and access to, utility lines and structures, drainage basins, mailbox clusters, park lands, and common areas. 20. Direct vehicular access to Washington Street and Avenue 50 from lots with frontage along Washington Street and Avenue 50 is restricted, except for those access points identified on the Site Development Permit, or as otherwise conditioned in these conditions of approval. 21. The applicant shall furnish proof of easements, or written permission, as appropriate, from those owners of all abutting properties on which grading, retaining wall construction, permanent slopes, or other encroachments will occur. 22. The applicant shall cause no easement to be granted, or recorded, over any portion of the subject property after the date of approval of the Site Development Permit unless such easement is approved by the City Engineer. STREET AND TRAFFIC IMPROVEMENTS 23. The applicant shall comply with the provisions of LQMC Sections 13.24.060 (Street Improvements), 13.24.070 (Street Design - Generally) & 13.24.100 (Access for Individual Properties and Development) for public streets; and Section 13.24.080 (Street Design - Private Streets), where private streets are proposed. 24. Streets shall have vertical curbs or other approved curb configurations that will convey water without ponding, and provide lateral containment of dust and residue during street sweeping operations. If a wedge or rolled curb design is approved, the lip at the flowline shall be near vertical with a 1/8" batter and a minimum height of 0.1'. Unused curb cuts on any lot shall be restored to standard curb height prior to final inspection of permanent building(s) on the lot. 25. The applicant shall construct the following street improvements to conform with the General Plan (street type noted in parentheses.) A. OFF-SITE STREETS 1) Washington Street (Major Arterial; 120' R/W): 660 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 7 of 27 Widen the east side of the street along all frontage adjacent to the project boundary to its ultimate width on the east side as specified in the General Plan and the requirements of these conditions. Rehabilitate and/or reconstruct existing roadway pavement as necessary to augment and convert it from a rural county-road design standard to La Quinta’s urban arterial design standard. The east curb face shall be located fifty-one feet (51’) east of the centerline, except at locations where additional street width is needed to accommodate: a) The applicant shall construct a concrete bus stop pad equipped with night lighting, bench, and trash receptacle north of the primary entry drive on Washington Street as approved by the Design and Development Director and the City Engineer. Bus turnout shall be provided if required by SunLine Transit for the bus stop. b) A deceleration/right turn only lane with bus turnout incorporated as part of the lane (if approved by SunLine Transit and the City Engineer) shall be provided at the Washington Street Primary Entry. The east curb face shall be located sixty four feet (64’) east of the centerline and length to be determined by a traffic study prepared for the applicant by a licensed traffic engineer per Engineering Bulletin # 06-13 or as determined by the City Engineer. c) The east curb face shall be located fifty-six (56’) east from the centerline of Washington Street to accommodate the dual left turn lane on southbound Washington Street at the Avenue 50 intersection. Other required improvements in the Washington Street right-of-way and/or adjacent landscape setback area include: d) All appurtenant components such as, but not limited to: curb, gutter, traffic control striping, legends, and signs. e) 8-foot wide meandering sidewalk. The meandering sidewalk shall have an arrhythmic horizontal layout that utilizes concave and convex curves with respect to the curb line that either touches the back of curb or approaches within five feet of the curb at intervals not to exceed 250 feet. The sidewalk curvature radii should vary between 50 and 300 feet and at 661 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 8 of 27 each point of reverse curvature, the radius should change to assist in creating the arrhythmic layout. The sidewalk shall meander into the landscape setback lot and approach within 5 feet of the perimeter wall at intervals not to exceed 250 feet. f) Extend the existing raised median on Washington Street north of Avenue 50 to line up with the curb face on the south side of the primary entrance to prevent southbound Washington Street traffic from making illegal left turns into the project entrance on Washington Street as approved by the City Engineer. g) Establish a Class II Level II benchmark in the Washington Street right of way and file a record of the benchmark with the County of Riverside. 2) Avenue 50 (Primary Arterial – Option B; 100’ R/W): Widen the north side of the street along all frontage adjacent to the project boundary to its ultimate width on the east side as specified in the General Plan and the requirements of these conditions. Rehabilitate and/or reconstruct existing roadway pavement as necessary to augment and convert it from a rural county-road design standard to La Quinta’s urban arterial design standard. The north curb face shall be located thirty-eight feet (38’) north of the centerline, except at locations where additional street width is needed to accommodate: a) Dual left turn lanes, two through lanes and a right turn only lane on Avenue 50 at the Avenue 50/Washington Street intersection as called for in the City General Plan traffic study. The deceleration length to be determined by a traffic study prepared for the applicant by a licensed traffic engineer per Engineering Bulletin # 06-13 or as determined by the City Engineer. Other required improvements in the Avenue 50 right-of-way and/or adjacent landscape setback area include: b) All appurtenant components such as, but not limited to: curb, gutter, traffic control striping, legends, and signs. c) 6-foot wide meandering sidewalk. The meandering sidewalk shall have an arrhythmic horizontal layout that utilizes 662 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 9 of 27 concave and convex curves with respect to the curb line that either touches the back of curb or approaches within five feet of the curb at intervals not to exceed 250 feet. The sidewalk curvature radii should vary between 50 and 300 feet and at each point of reverse curvature, the radius should change to assist in creating the arrhythmic layout. The sidewalk shall meander into the landscape setback lot and approach within 5 feet of the perimeter wall at intervals not to exceed 250 feet. d) A 12-foot wide raised landscaped median plus variable width as needed along the entire project boundary to accommodate a left turn lane for the eastbound Avenue 50 traffic into the project entry on the north side and for dual left turn lanes for westbound Avenue 50 traffic at the intersection of Washington Street and Avenue 50. Interim and ultimate improvements shall be as approved by the City Engineer. The applicant shall be responsible for 50% of the cost to design and construct said raised landscaped median. The landscaped median improvements are eligible for reimbursement from the City’s Development Impact Fee fund in accordance with policies established for that program. e) In the event the left turn pocket for eastbound Avenue 50 traffic into the project entry is constructed prior to the construction of the off-site improvements associated with the development on other side of the street, the applicant shall widen the south side of Avenue 50 along the project boundary to its existing southerly right-of-way to maintain the currently existing two eastbound through lanes on Avenue 50 (minimum 24 feet) as approved by the City Engineer. The applicant shall extend improvements beyond the project boundaries to ensure they safely integrate with existing improvements (e.g., grading; traffic control devices and transitions in alignment, elevation or dimensions of streets and sidewalks). Entry drives, main interior circulation routes, standard knuckles, corner cutbacks, bus turnouts, dedicated turn lanes and other features shown on the approved construction plans, may require additional street widths as may be determined by the City Engineer. 663 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 10 of 27 The applicant is responsible for construction of all improvements mentioned above. B. INTERNAL STREETS 1) Construct internal streets per the approved Site Development Permit Preliminary Grading Exhibit and as approved by the City Engineer. Minimum street width shall be 26 feet except at the entry accessway. On-street parking shall be prohibited except in designated parking stall areas. The applicant shall make provisions for perpetual enforcement of the No Parking restrictions. 2) The location of driveways shall not be located within the curb return when possible. C. KNUCKLE 1) Construct the knuckle to conform to the lay-out shown in the Site Development Permit, except for minor revisions as may be required by the City Engineer. 26. The applicant shall design street pavement sections using CalTrans' design procedure for 20-year life pavement, and the site-specific data for soil strength and anticipated traffic loading (including construction traffic). Minimum structural sections shall be as follows: Residential/ Parking Lot & Aisles (Low Traffic) 3.0" a.c./4.5" c.a.b. Parking Lot & Aisles (High Traffic) 4.5” a.c./5.5” c.a.b. Primary Arterial 4.5" a.c./6.0" c.a.b. Major Arterial 5.5" a.c./6.5" c.a.b. or the approved equivalents of alternate materials. 27. The applicant shall submit current mix designs (less than two years old at the time of construction) for base, asphalt concrete and Portland cement concrete. The submittal shall include test results for all specimens used in the mix design procedure. For mix designs over six months old, the submittal shall include recent (less than six months old at the time of construction) aggregate gradation test results confirming that design gradations can be achieved in current production. The applicant shall not schedule construction operations until mix designs are 664 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 11 of 27 approved. 28. General access points and turning movements of traffic are limited to the following: A. Primary Entry (Washington Street): Right turn movements in and out are allowed. Left turn movements in and out are prohibited. All right-turn-out only driveways shall have a splitter median island located in the driveway throat that adequately channelizes the exiting right-turn vehicles turning onto the arterial street to eliminate illegal left turns. The splitter island shall be designed in conformance with design concepts approved by the City Engineer. B. Primary Entry (Avenue 50): Right turn in and out and left turn in movements are allowed. Left turn movements out are prohibited. All right- turn-out only driveways shall have a splitter median island located in the driveway throat that adequately channelizes the exiting right-turn vehicles turning onto the arterial street to eliminate illegal left turns. The splitter island shall be designed in conformance with design concepts approved by the City Engineer. 29. Improvements shall include appurtenances such as traffic control signs, markings and other devices, raised medians if required, street name signs and sidewalks. Mid-block street lighting is not required. 30. Improvements shall be designed and constructed in accordance with City adopted standards, supplemental drawings and specifications, or as approved by the City Engineer. Improvement plans for streets, access gates and parking areas shall be stamped and signed by qualified engineers. 31. Standard knuckles and corner cut-backs shall conform to Riverside County Standard Drawings #801 and #805, respectively, unless otherwise approved by the City Engineer. PARKING LOTS and ACCESS POINTS 32. The design of parking facilities shall conform to LQMC Chapter 9.150 and in particular the following: 665 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 12 of 27 A. The parking stall and aisle widths and the double hairpin stripe parking stall design shall conform to LQMC Chapter 9.150. B. Cross slopes should be a maximum of 2% where ADA accessibility is required including accessibility routes between buildings. C. Building access points shall be shown on the Precise Grading Plans to evaluate ADA accessibility issues. D. Accessibility routes to public streets and adjacent development shall be shown on the Precise Grading Plan. E. Parking stall lengths shall be according to LQMC Chapter 9.150 and be a minimum of 17 feet in length with a 2-foot overhang for standard parking stalls and 18 feet with a 2-foot overhang for handicapped parking stall or as approved by the City Engineer. One van accessible handicapped parking stall is required per 8 handicapped parking stalls. Entry drives, main interior circulation routes, corner cutbacks, bus turnouts, dedicated turn lanes, ADA accessibility route to public streets and other features shown on the approved construction plans, may require additional street widths and other improvements as may be determined by the City Engineer. IMPROVEMENT PLANS As used throughout these Conditions of Approval, professional titles such as “engineer,” “surveyor,” and “architect,” refer to persons currently certified or licensed to practice their respective professions in the State of California. 33. Improvement plans shall be prepared by or under the direct supervision of qualified engineers and/or architects, as appropriate, and shall comply with the provisions of LQMC Section 13.24.040 (Improvement Plans). 34. The following improvement plans shall be prepared and submitted for review and approval by the Public Works Department. A separate set of plans for each line item specified below shall be prepared. The plans shall utilize the minimum scale specified, unless otherwise authorized by the City Engineer in writing. Plans may be prepared at a larger scale if additional detail or plan clarity is desired. Note, the applicant may be required to prepare other improvement plans not listed here pursuant to improvements required by other agencies and utility purveyors. A. On-Site Rough Grading Plan 1" = 40' Horizontal 666 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 13 of 27 B. PM10 Plan 1” = 40’ Horizontal C. WQMP (Plan submitted in Report Form) NOTE: A through C to be submitted concurrently. D. On-Site Precise Grading Plan 1” = 30’ Horizontal E. Off-Site Street Improvement/Storm Drain Plan 1" = 40' Horizontal, 1" = 4' Vertical F. Off-Site Signing & Striping Plan 1” = 40’ Horizontal The Off-Site street improvement plans shall have separate plan sheet(s) (drawn at 20 scale) that show the meandering sidewalk, mounding, and berming design in the combined parkway and landscape setback area. G. On-Site Street Improvements/Signing & Striping/Storm Drain Plan 1" = 40' Horizontal, 1"= 4' Vertical NOTE: D through G to be submitted concurrently. (Separate Storm Drain Plans if applicable) H. Off-Site Median Landscaping Plans 1" = 40' Horizontal Other engineered improvement plans prepared for City approval that are not listed above shall be prepared in formats approved by the City Engineer prior to commencing plan preparation. All Off-Site Plan & Profile Street Plans and Signing & Striping Plans shall show all existing improvements for a distance of at least 200-feet beyond the project limits, or a distance sufficient to show any required design transitions. All On-Site Signing & Striping Plans shall show, at a minimum; Stop Signs, Limit Lines and Legends, No Parking Signs, Raised Pavement Markers (including Blue RPMs at fire hydrants) and Street Name Signs per Public Works Standard Plans and/or as approved by the Engineering Department. 667 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 14 of 27 “Rough Grading” plans shall normally include perimeter walls with Top Of Wall & Top Of Footing elevations shown. All footings shall have a minimum of 1-foot of cover, or sufficient cover to clear any adjacent obstructions. The applicant shall prepare an accessibility assessment on a marked up print of the building floor plan identifying every building egress and notes the 2010 California Building Code accessibility requirements associated with each door. The assessment must comply with submittal requirements of the Building & Safety Department. A copy of the reviewed assessment shall be submitted to the Public Works Department in conjunction with the Site Development Plan when it is submitted for plan checking. “On-Site Precise Grading” plans shall normally include all on-site surface improvements including but not limited to finish grades for curbs & gutters, building floor elevations, wall elevations, parking lot improvements and ADA requirements. 35. The City maintains standard plans, detail sheets and/or construction notes for elements of construction which can be accessed via the “Plans, Notes and Design Guidance” section of the Public Works Department at the City website (www.la- quinta.org). Please navigate to the Public Works Department home page and look for the Standard Drawings hyperlink. 36. The applicant shall furnish a complete set of all approved improvement plans on a storage media acceptable to the City Engineer (currently mylars). 37. Upon completion of construction, and prior to final acceptance of the improvements by the City, the applicant shall furnish the City with reproducible record drawings of all improvement plans which were approved by the City. Each sheet shall be clearly marked "Record Drawing" and shall be stamped and signed by the engineer or surveyor certifying to the accuracy and completeness of the drawings. The applicant shall have all approved mylars previously submitted to the City, revised to reflect the as-built conditions. The applicant shall employ or retain the Engineer Of Record during the construction phase of the project so that the EOR can make site visits in support of preparing "Record Drawing". However, if subsequent approved revisions have been approved by the City Engineer and reflect said "Record Drawing" conditions, the Engineer Of Record may submit a letter attesting to said fact to the City Engineer in lieu of mylar submittal. IMPROVEMENT SECURITY AGREEMENTS 38. Prior to constructing any off-site improvements on Washington Street and Avenue 668 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 15 of 27 50, the applicant deposit securities equivalent to both a Performance and labor & Material Bonds each valued at 100% of the cost of the off-site improvements required on Washington Street and Avenue 50. 39. In the event the applicant fails to construct the improvements for the development, or fails to satisfy its obligations for the development in a timely manner, pursuant to the approved phasing plan, the City shall have the right to halt issuance of all permits, and/or final inspections, withhold other approvals related to the development of the project, or call upon the surety to complete the improvements. 40. Depending on the timing of the development of this Site Development Permit, and the status of the off-site improvements at the time, the applicant may be required to: A. Construct certain off-site improvements. B. Construct additional off-site improvements, subject to the reimbursement of its costs by others. C. Reimburse others for those improvements previously constructed that are considered to be an obligation of this tentative tract map. D. Secure the costs for future improvements that are to be made by others. E. To agree to any combination of these actions, as the City may require. Off-Site Improvements should be completed on a first priority basis. The applicant shall complete Off-Site Improvements in the first phase of construction. In the event that any of the improvements required for this development are constructed by the City, the applicant shall, prior to the approval of the Final Map, or the issuance of any permit related thereto, reimburse the City for the costs of such improvements. 41. If the applicant elects to utilize the secured agreement alternative, the applicant shall submit detailed construction cost estimates for all proposed on-site and off- site improvements, including an estimate for the final survey monumentation, for checking and approval by the City Engineer. Such estimates shall conform to the unit cost schedule adopted by City resolution, or ordinance. 669 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 16 of 27 For items not listed in the City's unit cost schedule, the proposed unit costs shall be approved by the City Engineer. Estimates for improvements under the jurisdiction of other agencies shall be approved by those agencies and submitted to the City along with the applicant’s detailed cost estimates. Security will not be required for telephone, natural gas, or Cable T.V. improvements. GRADING 42. The applicant shall comply with the provisions of LQMC Section 13.24.050 (Grading Improvements). 43. Prior to occupancy of the project site for any construction, or other purposes, the applicant shall obtain a grading permit approved by the City Engineer. 44. To obtain an approved grading permit, the applicant shall submit and obtain approval of all of the following: A. A grading plan prepared by a civil engineer registered in the State of California, B. A preliminary geotechnical (“soils”) report prepared by an engineer registered in the State of California, C. A Fugitive Dust Control Plan prepared in accordance with LQMC Chapter 6.16, (Fugitive Dust Control), and D. A Best Management Practices report prepared in accordance with LQMC Sections 8.70.010 and 13.24.170 (NPDES Stormwater Discharge Permit and Storm Management and Discharge Controls). E. WQMP prepared by an engineer registered in the State of California. All grading shall conform with the recommendations contained in the Preliminary Soils Report, and shall be certified as being adequate by soils engineer, or engineering geologist registered in the State of California. The applicant shall furnish security, in a form acceptable to the City, and in an amount sufficient to guarantee compliance with the approved Fugitive Dust Control Plan provisions as submitted with its application for a grading permit. 670 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 17 of 27 Additionally, the applicant shall replenish said security if expended by the City of La Quinta to comply with the Plan as required by the City Engineer. 45. The applicant shall maintain all open graded, undeveloped land in order to prevent wind and/or water erosion of such land. All open graded, undeveloped land shall either be planted with interim landscaping, or stabilized with such other erosion control measures, as were approved in the Fugitive Dust Control Plan. 46. Grading within the perimeter setback and parkway areas shall have undulating terrain and shall conform with the requirements of LQMC Section 9.60.240(F) except as otherwise modified by this condition requirement. The maximum slope shall not exceed 3:1 anywhere in the landscape setback area, except for the backslope (i.e. the slope at the back of the landscape lot) which shall not exceed 2:1 if fully planted with ground cover. The maximum slope in the first six (6) feet adjacent to the curb shall not exceed 4:1 when the nearest edge of sidewalk is within six feet (6’) of the curb, otherwise the maximum slope within the right of way shall not exceed 3:1. All unpaved parkway areas adjacent to the curb shall be depressed one and one-half inches (1.5") in the first eighteen inches (18") behind the curb. 47. Building pad elevations on the rough grading plan submitted for City Engineer’s approval shall conform with pad elevations shown on the preliminary grading plan, unless the pad elevations have other requirements imposed elsewhere in these Conditions of Approval. Pursuant to the aforementioned, the applicant is advised of the Coachella Valley Water District letter dated May 24, 2011 to the Design and Development Department stating the development may set the finish floor elevations at a minimum of 47 feet MSL with the condition that the development be protected by means of a flood wall along the La Quinta Evacuation Channel. The flood wall shall be certified by a geotechnical engineer with the top of the wall at a minimum elevation of 52 feet AMSL as required by CVWD. 48. Building pad elevations of perimeter lots shall not differ by more that one foot higher from the building pads in adjacent developments. 49. The applicant shall minimize the differences in elevation between the adjoining properties and the lots within this development. 50. Prior to any site grading or regrading that will raise or lower any portion of the site by more than plus or minus half of a foot (0.5’) from the elevations shown on the approved Site Development Permit Site Plan, the applicant shall submit the proposed grading changes to the City Engineer for a substantial conformance 671 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 18 of 27 finding review. 51. Prior to the issuance of a building permit for any building lot, the applicant shall provide a lot pad certification stamped and signed by a qualified engineer or surveyor with applicable compaction tests and over excavation documentation. Each pad certification shall list the pad elevation as shown on the approved grading plan, the actual pad elevation and the difference between the two, if any. Such pad certification shall also list the relative compaction of the pad soil. The data shall be organized by lot number, and listed cumulatively if submitted at different times. DRAINAGE 52. If permitted by CVWD and the City Engineer, when an applicant proposes discharge of storm water directly, or indirectly, into the La Quinta Evacuation Channel, the applicant shall execute an indemnification instrument as approved by the City Engineer and City Attorney. Additionally, the applicant shall pay for all costs of sampling and testing associated with the development’s drainage discharge which may be required under the City’s NPDES Permit or other City or area-wide pollution prevention program, and for any other obligations and/or expenses which may arise from such discharge. The applicant is required to construct required discharge treatment Best Management Practice facilities per the NPDES Permit Supplement A but at a minimum shall install a CDS Unit or equal system as approved by the City Engineer. The indemnification shall be executed and furnished to the City prior to the issuance of any grading, construction or building permit, and shall be binding on all heirs, executors, administrators, assigns, and successors in interest in the land within this tentative parcel map excepting therefrom those portions required to be dedicated or deeded for public use. If such discharge is approved for this development, the applicant shall make provisions for meeting these obligations. The 100-year storm water hydraulic grade line shall be at elevation 48 feet or as determined by CVWD and the City Engineer. Additionally, the applicant shall submit verification to the City of CVWD acceptance of the proposed discharge of storm water directly, or indirectly, into the La Quinta Evacuation Channel with the initial submittal of storm drain improvement plans. 53. Since the preliminary rough grading plans previously submitted to the Public Works Department did not demonstrate how storm water would be adequately discharged into the La Quinta Evacuation Channel during major storm events 672 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 19 of 27 resulting in possible flooding of the site, the applicant is hereby notified that future site modifications may be necessary including, but not limited to building and street reconfiguration and additional improvements to the existing drainage facilities. Verification of the proposed storm water retention system is subject to review and approval by the Coachella Valley Water District and the City Engineer. If in the event, the proposed retention capacity or pass through storm water flow is found to be inadequate during final design, the Applicant shall revise what is currently proposed in the preliminary hydrology study and make adjustments to the site layout as needed to accommodate the increased retention/detention or pass through capacity required to satisfy safety issues of the Public Works Department and CVWD. Pursuant to the aforementioned, the applicant may be required to construct additional underground and above ground drainage facilities to convey on site and off site stormwater as well as stormwater from adjacent terrain by the La Quinta Evacuation Channel that historically flows onto and/or through the project site. Any proposed channels that convey stormwater shall be lined to protect against erosion as required by the Public Works Department and CVWD. 54. If the development is not able to discharge storm or nuisance water from the project into the La Quinta Evacuation Channel, the applicant shall comply with the provisions of LQMC Section 13.24.120 (Drainage), Retention Basin Design Criteria, Engineering Bulletin No. 06-16 – Hydrology Report with Preliminary Hydraulic Report Criteria for Storm Drain Systems and Engineering Bulletin No. 06-015 - Underground Retention Basin Design Requirements. More specifically, stormwater falling on site during the 100 year storm shall be retained within the development, unless otherwise approved by the City Engineer. The design storm shall be either the 1 hour, 3 hour, 6 hour or 24 hour event producing the greatest total run off. 55. Nuisance water shall be retained on site. Nuisance water shall be disposed of per approved methods contained in Engineering Bulletin No. 06-16 – Hydrology Report with Preliminary Hydraulic Report Criteria for Storm Drain Systems and Engineering Bulletin No. 06-015 - Underground Retention Basin Design Requirements. 56. In design of retention facilities, the maximum percolation rate shall be two inches per hour. The percolation rate will be considered to be zero unless the applicant provides site specific data indicating otherwise and as approved by the City Engineer. 57. The project shall be designed to accommodate purging and blowoff water (through underground piping and/or retention facilities) from any on-site or 673 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 20 of 27 adjacent well sites granted or dedicated to the local water utility authority as a requirement for development of this property. 58. No fence or wall shall be constructed around any retention basin unless approved by the Design and Development Director. 59. For on-site above ground common retention basins, retention depth shall be according to Engineering Bulletin No. 06-16 – Hydrology Report with Preliminary Hydraulic Report Criteria for Storm Drain Systems. Side slopes shall not exceed 3:1 and shall be planted with maintenance free ground cover. Additionally, retention basin widths shall be not less than 20 feet at the bottom of the basin. 60. Stormwater may not be retained in landscaped parkways or landscaped setback lots. Only incidental storm water (precipitation which directly falls onto the setback) will be permitted to be retained in the landscape setback areas. The perimeter setback and parkway areas in the street right-of-way shall be shaped with berms and mounds, pursuant to LQMC Section 9.100.040(B)(7). 61. The design of the development shall not cause any increase in flood boundaries and levels in any area outside the development. 62. The development shall be graded to permit storm flow in excess of retention capacity to flow out of the development through a designated overflow and into the historic drainage relief route. 63. Storm drainage historically received from adjoining property shall be received and retained or passed through into the historic downstream drainage relief route. 64. The applicant shall comply with applicable provisions for post construction runoff per the City’s NPDES stormwater discharge permit, LQMC Sections 8.70.010 et seq. (Stormwater Management and Discharge Controls), and 13.24.170 (Clean Air/Clean Water); Riverside County Ordinance No. 457; and the California Regional Water Quality Control Board – Colorado River Basin (CRWQCB-CRB) Region Board Order No. R7-2013-0011. A. For post-construction urban runoff from New Development and Redevelopments Projects, the applicant shall implement requirements of the NPDES permit for the design, construction and perpetual operation and maintenance of BMPs per the approved Water Quality Management Plan (WQMP) for the project as required by the California Regional Water Quality Control Board – Colorado River Basin (CRWQCB-CRB) Region Board Order No. R7-2013-0011. 674 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 21 of 27 B. The applicant shall implement the WQMP Design Standards per (CRWQCB- CRB) Region Board Order No. R7-2013-0011 utilizing BMPs approved by the City Engineer. A project specific WQMP shall be provided which incorporates Site Design and Treatment BMPs utilizing first flush infiltration as a preferred method of NPDES Permit Compliance for Whitewater River receiving water, as applicable. C. The developer shall execute and record a Stormwater Management/BMP Facilities Agreement that provides for the perpetual maintenance and operation of stormwater BMPs. 65. The applicant shall install suitable facilities along the easterly boundary of the project to preserve CVWD access and prohibit access to the right-of-way of the La Quinta Evacuation Channel. Additionally, the applicant shall work with CVWD to construct a perpetual maintenance access to the La Quinta Evacuation Channel as required by CVWD and approved by the City Engineer. UTILITIES 66. The applicant shall comply with the provisions of LQMC Section 13.24.110 (Utilities). 67. The applicant shall obtain the approval of the City Engineer for the location of all utility lines within any right-of-way, and all above-ground utility structures including, but not limited to, traffic signal cabinets, electric vaults, water valves, and telephone stands, to ensure optimum placement for practical and aesthetic purposes. 68. Existing overhead utility lines within, or adjacent to the proposed development, and all proposed utilities shall be installed underground. All existing utility lines attached to joint use 92 KV transmission power poles are exempt from the requirement to be placed underground. 69. Underground utilities shall be installed prior to overlying hardscape. For installation of utilities in existing improved streets, the applicant shall comply with trench restoration requirements maintained, or required by the City Engineer. The applicant shall provide certified reports of all utility trench compaction for approval by the City Engineer. Additionally, grease traps and the maintenance thereof shall be located as to not conflict with access aisles/entrances. 675 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 22 of 27 70. Utility easements in favor of CVWD shall be clear of any obstructions including overhead obstructions. CONSTRUCTION 71. The City will conduct final inspections of habitable buildings only when the buildings have improved street and (if required) sidewalk access to publicly- maintained streets. The improvements shall include required traffic control devices, pavement markings and street name signs. If on-site streets in residential developments are initially constructed with partial pavement thickness, the applicant shall complete the pavement prior to final inspections of the last ten percent of homes within the development or when directed by the City, whichever comes first. LANDSCAPE AND IRRIGATION 72. The applicant shall comply with LQMC Sections 13.24.130 (Landscaping Setbacks) & 13.24.140 (Landscaping Plans). 73. Landscape and irrigation plans for landscaped lots and setbacks, medians, retention basins, and parks shall be signed and stamped by a licensed landscape architect. 74. All new and modified landscape areas shall have landscaping and permanent irrigation improvements in compliance with the City’s Water Efficient Landscape regulations contained in LQMC Section 8.13 (Water Efficient Landscape). 75. Lighting plans shall be submitted with the final landscaping plans for a recommendation to the Design and Development Director for his approval. Exterior lighting shall be consistent with LQMC Section 9.100.150 (Outdoor Lighting). All freestanding lighting shall not exceed 18 feet in height, and shall be fitted with a visor if deemed necessary by staff to minimize trespass of light off the property. The illuminated carports shall be included in the photometric study as part of the final lighting plan submittal. 76. All water features shall be designed to minimize “splash”, and use high efficiency pumps and lighting to the satisfaction of the Design and Development Director. They shall be included in the landscape plan water efficiency calculations per Municipal Code Chapter 8.13. 77. All rooftop mechanical equipment shall be completely screened from view behind the parapet. Utility transformers or other ground mounted mechanical equipment 676 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 23 of 27 shall be fully screened with a screening wall or landscaping and painted to match the adjacent buildings. 78. The applicant shall submit the final landscape plans for review, processing and approval to the Design and Development Department, in accordance with the Final Landscape Plan application process. Design and Development Director approval of the final landscape plans is required prior to issuance of the first building permit unless the Design and Development Director determines extenuating circumstances exist which justifies an alternative processing schedule. Landscape plans for landscaped medians on public streets shall be approved by both the Design and Development Director. NOTE: Plans are not approved for construction until signed by the Design and Development Director. 79. The applicant or his agent has the responsibility for proper sight distance requirements per guidelines in the American Association of State Highway and Transportation Officials (AASHTO) “A Policy on Geometric Design of Highways and Streets, 5th Edition” or latest, in the design and/or installation of all landscaping and appurtenances abutting and within the private and public street right-of-way. 80. All trees located within the project site shall have a minimum trunk caliper of 2.5 inches. 81. Final field inspection of all landscaping materials, including all vegetation, hardscape and irrigation systems is required by the Design and Development Department prior to final project sign-off by the Design and Development Department. Prior to such field inspection, written verification by the project’s landscape architect of record stating that all vegetation, hardscape and irrigation systems have been installed in accordance with the approved final landscape plans shall be submitted to the Design and Development Department. 82. Landscape areas shall have permanent irrigation improvements meeting the requirements of the Design and Development Director. Use of lawn areas as identified in the conceptual landscape plan shall be removed from the Final Landscape Plan submittal in perimeter landscape areas along public streets. PUBLIC SERVICES 83. The applicant shall provide public transit improvements as required by SunLine Transit Agency and approved by the City Engineer. 677 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 24 of 27 MAINTENANCE 84. The applicant shall comply with the provisions of LQMC Section 13.24.160 (Maintenance). 85. The applicant shall make provisions for the continuous and perpetual maintenance of perimeter landscaping up to the curb, access drives, sidewalks, and stormwater BMPs. FEES AND DEPOSITS 86. The applicant shall comply with the provisions of LQMC Section 13.24.180 (Fees and Deposits). These fees include all deposits and fees required by the City for plan checking and construction inspection. Deposits and fee amounts shall be those in effect when the applicant makes application for plan check and permits. 87. Permits issued under this approval shall be subject to the Coachella Valley Multi- Species Habitat Conservation Plan/Natural Community Habitat Conservation Plan Mitigation Fee, in accordance with LQMC Chapter 3.34. FIRE DEPARTMENT 88. Provide or show there exists a water system capable of delivering a fire flow 4000GPM per minute for four hours duration at 20 psi residual operating pressure, which must be available before any combustible material is placed on the construction site. 89. Approved accessible on-site super fire hydrants shall be located not to exceed 200 feet apart in any direction. Any portion of the facility or of an exterior wall of the first story of the building shall not be located more than 150 feet from fire apparatus access roads as measured by an approved route around the complex, exterior of the facility or building. 90. The minimum dimension for gates is 20 feet clear and unobstructed width and a minimum vertical clearance of 13 feet 6 inches in height. Any gate providing access from a road shall be located at least 35 feet setback from the roadway and shall open to allow a vehicle to stop without obstructing traffic on the road. Where a one-way road with a single traffic lane provides access to a gate entrance, a 38-foot turning radius shall be used. 91. Prior to building plan approval and construction, applicant/developer shall furnish two copies of the water system fire hydrant plans to Fire Department for review 678 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 25 of 27 and approval. Plans shall be signed by a registered civil engineer, and shall confirm hydrant type, location, spacing, and minimum fire flow. Once plans are signed and approved by the local water authority, the originals shall be presented to the Fire Department for review and approval. 92. Prior to issuance of building permits, the water system for fire protection must be provided as approved by the Fire Department and the local water authority. 93. Blue dot retro-reflectors pavement markers on private streets, public streets and driveways to indicated location of the fire hydrant. 06-05 (located at www.rvcfire.org) 94. Fire Apparatus access road shall be in compliance with the Riverside County Fire Department Standard number 06-05 (located at www.rvcfire.org). Access lanes will not have an up, or downgrade of more than 15%. Access roads shall have an unobstructed vertical clearance not less than 13 feet and 6 inches. Access lanes will be designed to withstand the weight of 60 thousand pounds over 2 axles. Access will have a turning radius capable of accommodating fire apparatus. Access lane shall be constructed with a surface so as to provide all weather driving capabilities. 95. Dead-end fire apparatus access roads in excess of 150 feet in length shall be provided with approved provision for the turnaround capabilities of fire apparatus 96. Driveway loops, fire apparatus access lanes and entrance curb radius should be designed to adequately allow access of emergency fire vehicles. The applicant or developer shall include in the building plans the required fire lanes and include the appropriate lane printing and/or signs. 97. An approved Fire Department access key lock box shall be installed next to the approved Fire Department access door to the building. Required order forms and installation standards may be obtained at the Fire Department. 98. Display street numbers in a prominent location on the address side of building(s) and/or rear access if applicable. Numbers and letters shall be a minimum of 12” in height for building(s) up to 25’ in height. In complexes with alpha designations, letter size must match numbers. All addressing must be legible, of a contrasting color, and adequately illuminated to be visible from street at all hours. 99. Should any portion of the building be deemed “mixed occupancy” the sprinkler system shall be designed per referenced standard NFPA13R 7.2.4.1 through 7.2.4.2 per the CBC. 679 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 26 of 27 100. The PIV and FCD shall be located to the front of building and a minimum of 25 feet from the building(s). Sprinkler riser room must have indicating exterior and/or interior door signs. A C-16 licensed contractor must submit plans, along with current permit fees, to the Fire Department for review and approval prior to installation. 101. Install an alarm monitoring system for fire sprinkler system(s) with 20 or more heads, along with current permit fees, to the Fire Department for review and approval prior to installation. 102. Install a portable fire extinguisher, with a minimum rating of 2A-10BC, for every 3,000 sq. ft. and/or 75 feet of travel distance. Fire extinguishers shall be mounted 3.5 to 5 ft above finished floor, measured to the top of the extinguisher. Where not readily visible, signs shall be posted above all extinguishers to indicate their locations. Extinguishers must have current CSFM service tags affixed. 103. No hazardous materials shall be stored and/or used within the building, which exceeds quantities listed in 2010 CBC. No class I, II or IIIA of combustible/flammable liquid shall be used in any amount in the building. 104. Exit designs, exit signs, door hardware, exit markers, exit doors, and exit path marking shall be installed per the 2010 California Building Code. 105. Electrical room doors if applicable shall be posted “ELECTRICAL ROOM” on outside of door. 106. Fire Alarm Control Panel room doors if applicable shall be posted “FACP” on outside of door. 107. Fire Riser Sprinkler room doors if applicable shall be posted “Fire Riser” on outside of door. 108. Roof Access room door if applicable shall be posted “Roof Access” on outside of door. 109. Access shall be provided to all mechanical equipment located on the roof as required by the Mechanical Code. 110. Air handling systems supplying air in excess of 2000 cubic feet per minute to enclosed spaces within buildings shall be equipped with an automatic shutoff. 2010 CMC 680 CITY COUNCIL RESOLUTION 2017- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 2016-0008 (SDP 2003-762 EXTENSION 7) LA PALOMA (WSL LA QUINTA R/E, LLC) June 6, 2017 Page 27 of 27 111. Gate(s) shall be automatic or manual operated. Install Knox key operated switches, with dust cover, mounted per recommended standard of the Knox Company. Building plans shall include mounting location/position and operating standards for Fire Department approval. 112. Nothing in our review shall be construed as encompassing structural integrity. Review of this plan does not authorize or approve any omission or deviation from all applicable regulations. Final approval is subject to plan review and field inspection. All questions regarding the meaning of the code requirements should be referred to Fire Department at 760-863-8886. DESIGN AND DEVELOPMENT DEPARTMENT 113. Approved Cultural Resource Monitor(s) be present during all ground disturbing activities. Experience has shown that there is always a possibility of encountering buried cultural resources during construction related excavations, or archaeological testing/data recovery. Should buried cultural deposits be encountered, the Monitor may request that destructive construction halt and the Monitor shall notify a Qualified (Secretary of the Interior’s Standards and Guidelines) Archaeologist to investigate and, if necessary, prepare a mitigation plan for submission to the City and the Agua Caliente THPO. 114. Additionally, in accordance with State law, the County Coroner should be contacted if any human remains are found during earthmoving activities. If the remains are determined to be of Native American origin, the Native American Heritage Commission (NAHC) shall be contacted. The NAHC will make a determination of the Most Likely Descendent (MLD). The City will work with the designated MLD to determine the final disposition of the remains. 115. A sign permit shall be submitted for staff approval for proposed monument signs specified in Specific Plan 2004-071 Amendment 1. 116. As part of the Final Landscape Plan review process, the applicant shall submit a revised plan for the main entrance vehicular courtyard depicting either the removal of the water feature within the drive aisle or redesign of the water feature with an enhanced interactive design. As part of the Final Landscape Plan review process, the applicant shall submit a revised plant palette that reflects an increased use of Colorado Desert native type species of plants and shrubs. 681 682 ATTACHMENT 1 683 684 ATTACHMENT 2 A T T A C H M E N T 2 685 686 687 688 689 690 691 692 693 694 695 696 697 698 699 700 701 702 703 704 705 706 707 708 709 710 711 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 1 of 28 GENERAL 1.The applicant agrees to defend, indemnify and hold harmless the City of La Quinta (“City”), its agents, officers and employees from any claim, action or proceeding to attack, set aside, void, or annul the approval of this Site Development Permit. The City shall have sole discretion in selecting its defense counsel. The City shall promptly notify the applicant of any claim, action or proceeding and shall cooperate fully in the defense. 2.This Site Development Permit shall comply with the requirements and standards of Government Code §§ 66410 through 66499.58 (the “Subdivision Map Act”), and Chapter 13 of the La Quinta Municipal Code (“LQMC”). The City of La Quinta’s Municipal Code can be accessed on the City’s Web Site at www.la-quinta.org. 3.The Site Development Permit shall expire on November December 63, 20176 and shall become null and void in accordance with La Quinta Municipal Code Section 9.200.080, unless a building permit has been issued. No further time extensions will be considered, unless the applicant is able to demonstrate progress towards issuance of a building permit such as submittal of a revised preliminary grading plan to the Development Services Division and permit applications to the U.S Army Corps of Engineers and California Fish and Wildlife for project-related clearances.. . 4.Prior to the issuance of any grading, construction, or building permit by the City, the applicant shall obtain any necessary clearances and/or permits from the following agencies, if required: •Riverside County Fire Marshal •Public Works Department (Grading Permit, Green Sheet (Public Works Clearance) for Building Permits, Water Quality Management Plan (WQMP) Exemption Form – Whitewater River Region, Improvement Permit) •Community Design and Development Department •Riverside Co. Environmental Health Department •Desert Sands Unified School District (DSUSD) •Coachella Valley Water District (CVWD) •Imperial Irrigation District (IID) •California Regional Water Quality Control Board (CRWQCB) ATTACHMENT 3 727 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 2 of 28 • State Water Resources Control Board • SunLine Transit Agency (SUNLINE) • South Coast Air Quality Management District Coachella Valley (SCAQMD) The applicant is responsible for all requirements of the permits and/or clearances from the above listed agencies. When these requirements include approval of improvement plans, the applicant shall furnish proof of such approvals when submitting those improvements plans for City approval. 5. Coverage under the State of California Construction General Permit must be obtained by the applicant; who then shall submit a copy of the Regional Water Quality Control Board’s (“RWQCB”) acknowledgment of the applicant’s Notice of Intent (“NOI”) and Waste Discharger Identification (WDID) number to the City prior to the issuance of a grading or building permit. 6. The applicant shall comply with applicable provisions of the City’s NPDES r discharge permit, LQMC Sections 8.70.010 et seq. (Stormwater Management and Discharge Controls), and 13.24.170 (Clean Air/Clean Water); Riverside County Ordinance No. 457; the California Regional Water Quality Control Board – Colorado River Basin Region Board Order No. R7-2013-0011 and the State Water Resources Control Board’s Order No. 2009-0009-DWQ and Order No. 2010-0014-DWQ. A. For construction activities including clearing, grading or excavation of land that disturbs one (1) acre or more of land, or that disturbs less than one (1) acre of land, but which is a part of a construction project that encompasses more than one (1) acre of land, the Permitee shall be required to submit a Storm Water Pollution Protection Plan (“SWPPP”) to the State Water Resources Control Board. The applicant or design professional can obtain the California Stormwater Quality Association SWPPP template at www.cabmphandbooks.com for use in their SWPPP preparation. B. The applicant shall ensure that the required SWPPP is available for inspection at the project site at all times through and including acceptance of all improvements by the City. C. The applicant’s SWPPP shall include provisions for all of the following Best Management Practices (“BMPs”) (LQMC Section 8.70.020 (Definitions)): 1) Temporary Soil Stabilization (erosion control). 728 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 3 of 28 2) Temporary Sediment Control. 3) Wind Erosion Control. 4) Tracking Control. 5) Non-Storm Water Management. 6) Waste Management and Materials Pollution Control. D. The SWPPP and BMPs shall remain in effect for the entire duration of project construction until all improvements are completed and accepted by the City Council. 7. Permits issued under this approval shall be subject to the provisions of the Development Impact Fee and Transportation Uniform Mitigation Fee programs in effect at the time of issuance of building permit(s). 8. Approval of this Site Development Permit shall not be construed as approval for any horizontal dimensions implied by any site plans or exhibits unless specifically identified in the following conditions of approval. 9. Developer shall reimburse the City, within thirty (30) days of presentment of the invoice, all costs and actual attorney’s fees incurred by the City Attorney to review, negotiate and/or modify any documents or instruments required by these conditions, if Developer requests that the City modify or revise any documents or instruments prepared initially by the City to effect these conditions. This obligation shall be paid in the time noted above without deduction or offset and Developer’s failure to make such payment shall be a material breach of the Conditions of Approval. 10. Developer shall reimburse the City, within thirty (30) days of presentment of the invoice, all costs and actual consultant’s fees incurred by the City for engineering and/or surveying consultants to review and/or modify any documents or instruments required by this project. This obligation shall be paid in the time noted above without deduction or offset and Developer’s failure to make such payment shall be a material breach of the Conditions of Approval. PROPERTY RIGHTS 11. Prior to issuance of any permit(s), the applicant shall acquire or confer easements and other property rights necessary for the construction or proper functioning of 729 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 4 of 28 the proposed development. Conferred rights shall include irrevocable offers to dedicate or grant access easements to the City for emergency services and for maintenance, construction and reconstruction of essential improvements. 12. Pursuant to the aforementioned condition, conferred rights shall include approvals from the master developer or the HOA over easements and other property rights necessary for construction and proper functioning of the proposed development not limited to access rights over proposed and/or existing private streets that access public streets and open space/drainage facilities of the master development. 13. The applicant shall offer for dedication all public street rights-of-way in conformance with the City's General Plan, Municipal Code, applicable specific plans, site development permit, and/or as required by the City Engineer. 14. The public street right-of-way offers for dedication required for this development include: A. PUBLIC STREETS 1) Washington Street (Major Arterial, 120' ROW) – The standard 60 feet from the centerline of Washington Street for a total 120-foot ultimate developed right of way except for: Additional right-of-way is required on Washington Street north of Avenue 50 to provide for the realignment of Washington Street to accommodate the dual left turn lanes for southbound Washington Street to eastbound Avenue 50 as approved by the City Engineer. a) An additional variable right of way dedication for a deceleration/right turn only lane and bus turnout at the proposed primary project entry measured seventy-six feet (76’) east of the centerline of Washington Street and length as conditioned under STREET AND TRAFFIC IMPROVEMENTS (Condition of Approval No. 23A(1)(b)). 2) Avenue 50 (Primary Arterial, Option B 100' ROW) – The standard 50 feet from the centerline of Avenue 50 for a total 100-foot ultimate developed right of way except for: a) An additional right of way dedication of 10 feet for a right turn 730 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 5 of 28 only lane at the Avenue 50 intersection with Washington Street (a total of sixty feet (60’) north of the centerline of Avenue 50) and length as conditioned under STREET AND TRAFFIC IMPROVEMENTS (Condition of Approval No. 23A(2)(a)). 15. Dedications shall include additional widths as necessary for dedicated right and left turn lanes, bus turnouts, and other features contained in the approved construction plans. Pursuant to this requirement, the Applicant shall include in the submittal packet containing the rough grading plans submitted for plan checking, an offsite street geometric layout, drawn at 1” equals 40 feet, detailing the following design aspects: median curb line, outside curb line, lane line alignment including lane widths, left turn lanes, deceleration lane(s) and bus stop turnout(s). The geometric layout shall be accompanied with sufficient professional engineering studies to confirm the appropriate length of all proposed turn pockets and auxiliary lanes that may impact the right of way dedication required of the project and the associated landscape setback requirement. 16. When the City Engineer determines that access rights to the proposed street right- of-way shown on the approved Site Development Permit are necessary prior to approval of the improvements dedicating such right-of-way, the applicant shall grant the necessary right-of-way within 60 days of a written request by the City. 17. The applicant shall create perimeter landscaping setbacks along all public rights- of-way as follows: A. Washington Street (Major Arterial) - 20-foot from the R/W-P/L. B. Avenue 50 (Primary Arterial) – A minimum 20-foot from the R/W-P/L. The listed setback depth shall be the average depth where a meandering wall design is approved. The setback requirements shall apply to all frontages including, but not limited to, remainder parcels and sites dedicated for utility purposes. Where public facilities (e.g., sidewalks) are placed on privately-owned setbacks, the applicant shall offer for dedication blanket easements for those purposes on the Final Map. 731 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 6 of 28 18. At locations where the onsite finished grade adjacent to the landscaped setback lot has an elevation differential with respect to the arterial street top of curb exceeding 11.0 feet, the applicant shall comply with, and accommodate, the maximum slope gradients in the parkway/setback area and meandering sidewalk requirements by either: 1) increasing the landscape setback size as needed, or 2) installing retaining walls between the sidewalk and the back of the landscaped area as needed. 19. The applicant shall offer for dedication those easements necessary for the placement of, and access to, utility lines and structures, drainage basins, mailbox clusters, park lands, and common areas. 20. Direct vehicular access to Washington Street and Avenue 50 from lots with frontage along Washington Street and Avenue 50 is restricted, except for those access points identified on the Site Development Permit, or as otherwise conditioned in these conditions of approval. 21. The applicant shall furnish proof of easements, or written permission, as appropriate, from those owners of all abutting properties on which grading, retaining wall construction, permanent slopes, or other encroachments will occur. 22. The applicant shall cause no easement to be granted, or recorded, over any portion of the subject property after the date of approval of the Site Development Permit unless such easement is approved by the City Engineer. STREET AND TRAFFIC IMPROVEMENTS 23. The applicant shall comply with the provisions of LQMC Sections 13.24.060 (Street Improvements), 13.24.070 (Street Design - Generally) & 13.24.100 (Access for Individual Properties and Development) for public streets; and Section 13.24.080 (Street Design - Private Streets), where private streets are proposed. 24. Streets shall have vertical curbs or other approved curb configurations that will convey water without ponding, and provide lateral containment of dust and residue during street sweeping operations. If a wedge or rolled curb design is approved, the lip at the flowline shall be near vertical with a 1/8" batter and a minimum height of 0.1'. Unused curb cuts on any lot shall be restored to standard curb height prior to final inspection of permanent building(s) on the lot. 25. The applicant shall construct the following street improvements to conform with the General Plan (street type noted in parentheses.) 732 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 7 of 28 A. OFF-SITE STREETS 1) Washington Street (Major Arterial; 120' R/W): Widen the east side of the street along all frontage adjacent to the project boundary to its ultimate width on the east side as specified in the General Plan and the requirements of these conditions. Rehabilitate and/or reconstruct existing roadway pavement as necessary to augment and convert it from a rural county-road design standard to La Quinta’s urban arterial design standard. The east curb face shall be located fifty-one feet (51’) east of the centerline, except at locations where additional street width is needed to accommodate: a) The applicant shall construct a concrete bus stop pad equipped with night lighting, bench, and trash receptacle north of the primary entry drive on Washington Street as approved by the Community Design and Development Director and the City Engineer. Bus turnout shall be provided if required by SunLine Transit for the bus stop. b) A deceleration/right turn only lane with bus turnout incorporated as part of the lane (if approved by SunLine Transit and the City Engineer) shall be provided at the Washington Street Primary Entry. The east curb face shall be located sixty four feet (64’) east of the centerline and length to be determined by a traffic study prepared for the applicant by a licensed traffic engineer per Engineering Bulletin # 06-13 or as determined by the City Engineer. c) The east curb face shall be located fifty-six (56’) east from the centerline of Washington Street to accommodate the dual left turn lane on southbound Washington Street at the Avenue 50 intersection. Other required improvements in the Washington Street right-of-way and/or adjacent landscape setback area include: d) All appurtenant components such as, but not limited to: curb, gutter, traffic control striping, legends, and signs. e) 8-foot wide meandering sidewalk. The meandering sidewalk 733 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 8 of 28 shall have an arrhythmic horizontal layout that utilizes concave and convex curves with respect to the curb line that either touches the back of curb or approaches within five feet of the curb at intervals not to exceed 250 feet. The sidewalk curvature radii should vary between 50 and 300 feet and at each point of reverse curvature, the radius should change to assist in creating the arrhythmic layout. The sidewalk shall meander into the landscape setback lot and approach within 5 feet of the perimeter wall at intervals not to exceed 250 feet. f) Extend the existing raised median on Washington Street north of Avenue 50 to line up with the curb face on the south side of the primary entrance to prevent southbound Washington Street traffic from making illegal left turns into the project entrance on Washington Street as approved by the City Engineer. g) Establish a Class II Level II benchmark in the Washington Street right of way and file a record of the benchmark with the County of Riverside. 2) Avenue 50 (Primary Arterial – Option B; 100’ R/W): Widen the north side of the street along all frontage adjacent to the project boundary to its ultimate width on the east side as specified in the General Plan and the requirements of these conditions. Rehabilitate and/or reconstruct existing roadway pavement as necessary to augment and convert it from a rural county-road design standard to La Quinta’s urban arterial design standard. The north curb face shall be located thirty-eight feet (38’) north of the centerline, except at locations where additional street width is needed to accommodate: a) Dual left turn lanes, two through lanes and a right turn only lane on Avenue 50 at the Avenue 50/Washington Street intersection as called for in the City General Plan traffic study. The deceleration length to be determined by a traffic study prepared for the applicant by a licensed traffic engineer per Engineering Bulletin # 06-13 or as determined by the City Engineer. A right turn only lane on Avenue 50 at the Avenue 50/Washington Street intersection. The north curb face shall Formatted: Indent: Left: 1.5", Tab stops: 2", List tab + Not at 1.88" 734 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 9 of 28 be located forty eight feet (48’) north of the centerline of Avenue 50 and deceleration length to be determined by a traffic study prepared for the applicant by a licensed traffic engineer per Engineering Bulletin # 06-13 or as determined by the City Engineer. a) Other required improvements in the Avenue 50 right-of-way and/or adjacent landscape setback area include: b) All appurtenant components such as, but not limited to: curb, gutter, traffic control striping, legends, and signs. c) 6-foot wide meandering sidewalk. The meandering sidewalk shall have an arrhythmic horizontal layout that utilizes concave and convex curves with respect to the curb line that either touches the back of curb or approaches within five feet of the curb at intervals not to exceed 250 feet. The sidewalk curvature radii should vary between 50 and 300 feet and at each point of reverse curvature, the radius should change to assist in creating the arrhythmic layout. The sidewalk shall meander into the landscape setback lot and approach within 5 feet of the perimeter wall at intervals not to exceed 250 feet. d) A 12-foot wide raised landscaped median plus variable width as needed along the entire project boundary to accommodate a left turn lane for the eastbound Avenue 50 traffic into the project entry on the north side and for dual left turn lanes for westbound Avenue 50 traffic at the intersection of Washington Street and Avenue 50. Interim and ultimate improvements shall be as approved by the City Engineer. The applicant shall be responsible for 50% of the cost to design and construct said raised landscaped median. The landscaped median improvements are eligible for reimbursement from the City’s Development Impact Fee fund in accordance with policies established for that program. e) In the event the left turn pocket for eastbound Avenue 50 traffic into the project entry is constructed prior to the construction of the off-site improvements associated with the Formatted: Indent: Left: 1.5", Numbered + Level: 1 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 1.38" + Tab after: 1.88" + Indent at: 1.88", Tab stops: 2", List tab + Not at 1.88" 735 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 10 of 28 development on other side of the street, the applicant shall widen the south side of Avenue 50 along the project boundary to its existing southerly right-of-way to maintain the currently existing two eastbound through lanes on Avenue 50 (minimum 24 feet) as approved by the City Engineer. The applicant shall extend improvements beyond the project boundaries to ensure they safely integrate with existing improvements (e.g., grading; traffic control devices and transitions in alignment, elevation or dimensions of streets and sidewalks). Entry drives, main interior circulation routes, standard knuckles, corner cutbacks, bus turnouts, dedicated turn lanes and other features shown on the approved construction plans, may require additional street widths as may be determined by the City Engineer. The applicant is responsible for construction of all improvements mentioned above. B. INTERNAL STREETS 1) Construct internal streets per the approved Site Development Permit Preliminary Grading Exhibit and as approved by the City Engineer. Minimum street width shall be 26 feet except at the entry accessway. On-street parking shall be prohibited except in designated parking stall areas. The applicant shall make provisions for perpetual enforcement of the No Parking restrictions. 2) The location of driveways shall not be located within the curb return when possible. C. KNUCKLE 1) Construct the knuckle to conform to the lay-out shown in the Site Development Permit, except for minor revisions as may be required by the City Engineer. 26. The applicant shall design street pavement sections using CalTrans' design procedure for 20-year life pavement, and the site-specific data for soil strength and anticipated traffic loading (including construction traffic). Minimum structural sections shall be as follows: 736 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 11 of 28 Residential/ Parking Lot & Aisles (Low Traffic) 3.0" a.c./4.5" c.a.b. Parking Lot & Aisles (High Traffic) 4.5” a.c./5.5” c.a.b. Primary Arterial 4.5" a.c./6.0" c.a.b. Major Arterial 5.5" a.c./6.5" c.a.b. or the approved equivalents of alternate materials. 27. The applicant shall submit current mix designs (less than two years old at the time of construction) for base, asphalt concrete and Portland cement concrete. The submittal shall include test results for all specimens used in the mix design procedure. For mix designs over six months old, the submittal shall include recent (less than six months old at the time of construction) aggregate gradation test results confirming that design gradations can be achieved in current production. The applicant shall not schedule construction operations until mix designs are approved. 28. General access points and turning movements of traffic are limited to the following: A. Primary Entry (Washington Street): Right turn movements in and out are allowed. Left turn movements in and out are prohibited. All right-turn-out only driveways shall have a splitter median island located in the driveway throat that adequately channelizes the exiting right-turn vehicles turning onto the arterial street to eliminate illegal left turns. The splitter island shall be designed in conformance with design concepts approved by the City Engineer. B. Primary Entry (Avenue 50): Right turn in and out and left turn in movements are allowed. Left turn movements out are prohibited. All right- turn-out only driveways shall have a splitter median island located in the driveway throat that adequately channelizes the exiting right-turn vehicles turning onto the arterial street to eliminate illegal left turns. The splitter island shall be designed in conformance with design concepts approved by the City Engineer. 29. Improvements shall include appurtenances such as traffic control signs, markings and other devices, raised medians if required, street name signs and sidewalks. Mid-block street lighting is not required. 737 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 12 of 28 30. Improvements shall be designed and constructed in accordance with City adopted standards, supplemental drawings and specifications, or as approved by the City Engineer. Improvement plans for streets, access gates and parking areas shall be stamped and signed by qualified engineers. 31. Standard knuckles and corner cut-backs shall conform to Riverside County Standard Drawings #801 and #805, respectively, unless otherwise approved by the City Engineer. PARKING LOTS and ACCESS POINTS 32. The design of parking facilities shall conform to LQMC Chapter 9.150 and in particular the following: A. The parking stall and aisle widths and the double hairpin stripe parking stall design shall conform to LQMC Chapter 9.150. B. Cross slopes should be a maximum of 2% where ADA accessibility is required including accessibility routes between buildings. C. Building access points shall be shown on the Precise Grading Plans to evaluate ADA accessibility issues. D. Accessibility routes to public streets and adjacent development shall be shown on the Precise Grading Plan. E. Parking stall lengths shall be according to LQMC Chapter 9.150 and be a minimum of 17 feet in length with a 2-foot overhang for standard parking stalls and 18 feet with a 2-foot overhang for handicapped parking stall or as approved by the City Engineer. One van accessible handicapped parking stall is required per 8 handicapped parking stalls. Entry drives, main interior circulation routes, corner cutbacks, bus turnouts, dedicated turn lanes, ADA accessibility route to public streets and other features shown on the approved construction plans, may require additional street widths and other improvements as may be determined by the City Engineer. IMPROVEMENT PLANS 738 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 13 of 28 As used throughout these Conditions of Approval, professional titles such as “engineer,” “surveyor,” and “architect,” refer to persons currently certified or licensed to practice their respective professions in the State of California. 33. Improvement plans shall be prepared by or under the direct supervision of qualified engineers and/or architects, as appropriate, and shall comply with the provisions of LQMC Section 13.24.040 (Improvement Plans). 34. The following improvement plans shall be prepared and submitted for review and approval by the Public Works Department. A separate set of plans for each line item specified below shall be prepared. The plans shall utilize the minimum scale specified, unless otherwise authorized by the City Engineer in writing. Plans may be prepared at a larger scale if additional detail or plan clarity is desired. Note, the applicant may be required to prepare other improvement plans not listed here pursuant to improvements required by other agencies and utility purveyors. A. On-Site Rough Grading Plan 1" = 40' Horizontal B. PM10 Plan 1” = 40’ Horizontal C. WQMP (Plan submitted in Report Form) NOTE: A through C to be submitted concurrently. D. On-Site Precise Grading Plan 1” = 30’ Horizontal E. Off-Site Street Improvement/Storm Drain Plan 1" = 40' Horizontal, 1" = 4' Vertical F. Off-Site Signing & Striping Plan 1” = 40’ Horizontal The Off-Site street improvement plans shall have separate plan sheet(s) (drawn at 20 scale) that show the meandering sidewalk, mounding, and berming design in the combined parkway and landscape setback area. G. On-Site Street Improvements/Signing & Striping/Storm Drain Plan 1" = 40' Horizontal, 1"= 4' Vertical NOTE: D through G to be submitted concurrently. 739 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 14 of 28 (Separate Storm Drain Plans if applicable) H. Off-Site Median Landscaping Plans 1" = 40' Horizontal Other engineered improvement plans prepared for City approval that are not listed above shall be prepared in formats approved by the City Engineer prior to commencing plan preparation. All Off-Site Plan & Profile Street Plans and Signing & Striping Plans shall show all existing improvements for a distance of at least 200-feet beyond the project limits, or a distance sufficient to show any required design transitions. All On-Site Signing & Striping Plans shall show, at a minimum; Stop Signs, Limit Lines and Legends, No Parking Signs, Raised Pavement Markers (including Blue RPMs at fire hydrants) and Street Name Signs per Public Works Standard Plans and/or as approved by the Engineering Department. “Rough Grading” plans shall normally include perimeter walls with Top Of Wall & Top Of Footing elevations shown. All footings shall have a minimum of 1-foot of cover, or sufficient cover to clear any adjacent obstructions. The applicant shall prepare an accessibility assessment on a marked up print of the building floor plan identifying every building egress and notes the 2010 California Building Code accessibility requirements associated with each door. The assessment must comply with submittal requirements of the Building & Safety Department. A copy of the reviewed assessment shall be submitted to the Public Works Department in conjunction with the Site Development Plan when it is submitted for plan checking. “On-Site Precise Grading” plans shall normally include all on-site surface improvements including but not limited to finish grades for curbs & gutters, building floor elevations, wall elevations, parking lot improvements and ADA requirements. 35. The City maintains standard plans, detail sheets and/or construction notes for elements of construction which can be accessed via the “Plans, Notes and Design Guidance” section of the Public Works Department at the City website (www.la- quinta.org). Please navigate to the Public Works Department home page and look for the Standard Drawings hyperlink. 740 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 15 of 28 36. The applicant shall furnish a complete set of all approved improvement plans on a storage media acceptable to the City Engineer (currently mylars). 37. Upon completion of construction, and prior to final acceptance of the improvements by the City, the applicant shall furnish the City with reproducible record drawings of all improvement plans which were approved by the City. Each sheet shall be clearly marked "Record Drawing" and shall be stamped and signed by the engineer or surveyor certifying to the accuracy and completeness of the drawings. The applicant shall have all approved mylars previously submitted to the City, revised to reflect the as-built conditions. The applicant shall employ or retain the Engineer Of Record during the construction phase of the project so that the EOR can make site visits in support of preparing "Record Drawing". However, if subsequent approved revisions have been approved by the City Engineer and reflect said "Record Drawing" conditions, the Engineer Of Record may submit a letter attesting to said fact to the City Engineer in lieu of mylar submittal. IMPROVEMENT SECURITY AGREEMENTS 38. Prior to constructing any off-site improvements on Washington Street and Avenue 50, the applicant deposit securities equivalent to both a Performance and labor & Material Bonds each valued at 100% of the cost of the off-site improvements required on Washington Street and Avenue 50. 39. In the event the applicant fails to construct the improvements for the development, or fails to satisfy its obligations for the development in a timely manner, pursuant to the approved phasing plan, the City shall have the right to halt issuance of all permits, and/or final inspections, withhold other approvals related to the development of the project, or call upon the surety to complete the improvements. 40. Depending on the timing of the development of this Site Development Permit, and the status of the off-site improvements at the time, the applicant may be required to: A. Construct certain off-site improvements. B. Construct additional off-site improvements, subject to the reimbursement of its costs by others. C. Reimburse others for those improvements previously constructed that are considered to be an obligation of this tentative tract map. 741 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 16 of 28 D. Secure the costs for future improvements that are to be made by others. E. To agree to any combination of these actions, as the City may require. Off-Site Improvements should be completed on a first priority basis. The applicant shall complete Off-Site Improvements in the first phase of construction. In the event that any of the improvements required for this development are constructed by the City, the applicant shall, prior to the approval of the Final Map, or the issuance of any permit related thereto, reimburse the City for the costs of such improvements. 41. If the applicant elects to utilize the secured agreement alternative, the applicant shall submit detailed construction cost estimates for all proposed on-site and off- site improvements, including an estimate for the final survey monumentation, for checking and approval by the City Engineer. Such estimates shall conform to the unit cost schedule adopted by City resolution, or ordinance. For items not listed in the City's unit cost schedule, the proposed unit costs shall be approved by the City Engineer. Estimates for improvements under the jurisdiction of other agencies shall be approved by those agencies and submitted to the City along with the applicant’s detailed cost estimates. Security will not be required for telephone, natural gas, or Cable T.V. improvements. GRADING 42. The applicant shall comply with the provisions of LQMC Section 13.24.050 (Grading Improvements). 43. Prior to occupancy of the project site for any construction, or other purposes, the applicant shall obtain a grading permit approved by the City Engineer. 44. To obtain an approved grading permit, the applicant shall submit and obtain approval of all of the following: A. A grading plan prepared by a civil engineer registered in the State of California, 742 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 17 of 28 B. A preliminary geotechnical (“soils”) report prepared by an engineer registered in the State of California, C. A Fugitive Dust Control Plan prepared in accordance with LQMC Chapter 6.16, (Fugitive Dust Control), and D. A Best Management Practices report prepared in accordance with LQMC Sections 8.70.010 and 13.24.170 (NPDES Stormwater Discharge Permit and Storm Management and Discharge Controls). E. WQMP prepared by an engineer registered in the State of California. All grading shall conform with the recommendations contained in the Preliminary Soils Report, and shall be certified as being adequate by soils engineer, or engineering geologist registered in the State of California. The applicant shall furnish security, in a form acceptable to the City, and in an amount sufficient to guarantee compliance with the approved Fugitive Dust Control Plan provisions as submitted with its application for a grading permit. Additionally, the applicant shall replenish said security if expended by the City of La Quinta to comply with the Plan as required by the City Engineer. 45. The applicant shall maintain all open graded, undeveloped land in order to prevent wind and/or water erosion of such land. All open graded, undeveloped land shall either be planted with interim landscaping, or stabilized with such other erosion control measures, as were approved in the Fugitive Dust Control Plan. 46. Grading within the perimeter setback and parkway areas shall have undulating terrain and shall conform with the requirements of LQMC Section 9.60.240(F) except as otherwise modified by this condition requirement. The maximum slope shall not exceed 3:1 anywhere in the landscape setback area, except for the backslope (i.e. the slope at the back of the landscape lot) which shall not exceed 2:1 if fully planted with ground cover. The maximum slope in the first six (6) feet adjacent to the curb shall not exceed 4:1 when the nearest edge of sidewalk is within six feet (6’) of the curb, otherwise the maximum slope within the right of way shall not exceed 3:1. All unpaved parkway areas adjacent to the curb shall be depressed one and one-half inches (1.5") in the first eighteen inches (18") behind the curb. 47. Building pad elevations on the rough grading plan submitted for City Engineer’s approval shall conform with pad elevations shown on the preliminary grading 743 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 18 of 28 plan, unless the pad elevations have other requirements imposed elsewhere in these Conditions of Approval. Pursuant to the aforementioned, the applicant is advised of the Coachella Valley Water District letter dated May 24, 2011 to the Community DevelopmenDesign and Developmentt Department stating the development may set the finish floor elevations at a minimum of 47 feet MSL with the condition that the development be protected by means of a flood wall along the La Quinta Evacuation Channel. The flood wall shall be certified by a geotechnical engineer with the top of the wall at a minimum elevation of 52 feet AMSL as required by CVWD. 48. Building pad elevations of perimeter lots shall not differ by more that one foot higher from the building pads in adjacent developments. 49. The applicant shall minimize the differences in elevation between the adjoining properties and the lots within this development. 50. Prior to any site grading or regrading that will raise or lower any portion of the site by more than plus or minus half of a foot (0.5’) from the elevations shown on the approved Site Development Permit Site Plan, the applicant shall submit the proposed grading changes to the City Engineer for a substantial conformance finding review. 51. Prior to the issuance of a building permit for any building lot, the applicant shall provide a lot pad certification stamped and signed by a qualified engineer or surveyor with applicable compaction tests and over excavation documentation. Each pad certification shall list the pad elevation as shown on the approved grading plan, the actual pad elevation and the difference between the two, if any. Such pad certification shall also list the relative compaction of the pad soil. The data shall be organized by lot number, and listed cumulatively if submitted at different times. DRAINAGE 52. If permitted by CVWD and the City Engineer, when an applicant proposes discharge of storm water directly, or indirectly, into the La Quinta Evacuation Channel, the applicant shall execute an indemnification instrument as approved by the City Engineer and City Attorney. Additionally, the applicant shall pay for all costs of sampling and testing associated with the development’s drainage discharge which may be required under the City’s NPDES Permit or other City or area-wide pollution prevention program, and for any other obligations and/or 744 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 19 of 28 expenses which may arise from such discharge. The applicant is required to construct required discharge treatment Best Management Practice facilities per the NPDES Permit Supplement A but at a minimum shall install a CDS Unit or equal system as approved by the City Engineer. The indemnification shall be executed and furnished to the City prior to the issuance of any grading, construction or building permit, and shall be binding on all heirs, executors, administrators, assigns, and successors in interest in the land within this tentative parcel map excepting therefrom those portions required to be dedicated or deeded for public use. If such discharge is approved for this development, the applicant shall make provisions for meeting these obligations. The 100-year storm water hydraulic grade line shall be at elevation 48 feet or as determined by CVWD and the City Engineer. Additionally, the applicant shall submit verification to the City of CVWD acceptance of the proposed discharge of storm water directly, or indirectly, into the La Quinta Evacuation Channel with the initial submittal of storm drain improvement plans. 53. Since the preliminary rough grading plans previously submitted to the Public Works Department did not demonstrate how storm water would be adequately discharged into the La Quinta Evacuation Channel during major storm events resulting in possible flooding of the site, the applicant is hereby notified that future site modifications may be necessary including, but not limited to building and street reconfiguration and additional improvements to the existing drainage facilities. Verification of the proposed storm water retention system is subject to review and approval by the Coachella Valley Water District and the City Engineer. If in the event, the proposed retention capacity or pass through storm water flow is found to be inadequate during final design, the Applicant shall revise what is currently proposed in the preliminary hydrology study and make adjustments to the site layout as needed to accommodate the increased retention/detention or pass through capacity required to satisfy safety issues of the Public Works Department and CVWD. Pursuant to the aforementioned, the applicant may be required to construct additional underground and above ground drainage facilities to convey on site and off site stormwater as well as stormwater from adjacent terrain by the La Quinta Evacuation Channel that historically flows onto and/or through the project site. Any proposed channels that convey stormwater shall be lined to protect against erosion as required by the Public Works Department and CVWD. 54. If the development is not able to discharge storm or nuisance water from the 745 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 20 of 28 project into the La Quinta Evacuation Channel, the applicant shall comply with the provisions of LQMC Section 13.24.120 (Drainage), Retention Basin Design Criteria, Engineering Bulletin No. 06-16 – Hydrology Report with Preliminary Hydraulic Report Criteria for Storm Drain Systems and Engineering Bulletin No. 06-015 - Underground Retention Basin Design Requirements. More specifically, stormwater falling on site during the 100 year storm shall be retained within the development, unless otherwise approved by the City Engineer. The design storm shall be either the 1 hour, 3 hour, 6 hour or 24 hour event producing the greatest total run off. 55. Nuisance water shall be retained on site. Nuisance water shall be disposed of per approved methods contained in Engineering Bulletin No. 06-16 – Hydrology Report with Preliminary Hydraulic Report Criteria for Storm Drain Systems and Engineering Bulletin No. 06-015 - Underground Retention Basin Design Requirements. 56. In design of retention facilities, the maximum percolation rate shall be two inches per hour. The percolation rate will be considered to be zero unless the applicant provides site specific data indicating otherwise and as approved by the City Engineer. 57. The project shall be designed to accommodate purging and blowoff water (through underground piping and/or retention facilities) from any on-site or adjacent well sites granted or dedicated to the local water utility authority as a requirement for development of this property. 58. No fence or wall shall be constructed around any retention basin unless approved by the Community DevelopmentDesign and Development Director and the City Engineer.. 59. For on-site above ground common retention basins, retention depth shall be according to Engineering Bulletin No. 06-16 – Hydrology Report with Preliminary Hydraulic Report Criteria for Storm Drain Systems. Side slopes shall not exceed 3:1 and shall be planted with maintenance free ground cover. Additionally, retention basin widths shall be not less than 20 feet at the bottom of the basin. 60. Stormwater may not be retained in landscaped parkways or landscaped setback lots. Only incidental storm water (precipitation which directly falls onto the setback) will be permitted to be retained in the landscape setback areas. The perimeter setback and parkway areas in the street right-of-way shall be shaped with berms and mounds, pursuant to LQMC Section 9.100.040(B)(7). 746 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 21 of 28 61. The design of the development shall not cause any increase in flood boundaries and levels in any area outside the development. 62. The development shall be graded to permit storm flow in excess of retention capacity to flow out of the development through a designated overflow and into the historic drainage relief route. 63. Storm drainage historically received from adjoining property shall be received and retained or passed through into the historic downstream drainage relief route. 64. The applicant shall comply with applicable provisions for post construction runoff per the City’s NPDES stormwater discharge permit, LQMC Sections 8.70.010 et seq. (Stormwater Management and Discharge Controls), and 13.24.170 (Clean Air/Clean Water); Riverside County Ordinance No. 457; and the California Regional Water Quality Control Board – Colorado River Basin (CRWQCB-CRB) Region Board Order No. R7-2013-0011. A. For post-construction urban runoff from New Development and Redevelopments Projects, the applicant shall implement requirements of the NPDES permit for the design, construction and perpetual operation and maintenance of BMPs per the approved Water Quality Management Plan (WQMP) for the project as required by the California Regional Water Quality Control Board – Colorado River Basin (CRWQCB-CRB) Region Board Order No. R7-2013-0011. B. The applicant shall implement the WQMP Design Standards per (CRWQCB- CRB) Region Board Order No. R7-2013-0011 utilizing BMPs approved by the City Engineer. A project specific WQMP shall be provided which incorporates Site Design and Treatment BMPs utilizing first flush infiltration as a preferred method of NPDES Permit Compliance for Whitewater River receiving water, as applicable. C. The developer shall execute and record a Stormwater Management/BMP Facilities Agreement that provides for the perpetual maintenance and operation of stormwater BMPs. 65. The applicant shall install suitable facilities along the easterly boundary of the project to preserve CVWD access and prohibit access to the right-of-way of the La Quinta Evacuation Channel. Additionally, the applicant shall work with CVWD to construct a perpetual maintenance access to the La Quinta Evacuation Channel as required by CVWD and approved by the City Engineer. 747 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 22 of 28 UTILITIES 66. The applicant shall comply with the provisions of LQMC Section 13.24.110 (Utilities). 67. The applicant shall obtain the approval of the City Engineer for the location of all utility lines within any right-of-way, and all above-ground utility structures including, but not limited to, traffic signal cabinets, electric vaults, water valves, and telephone stands, to ensure optimum placement for practical and aesthetic purposes. 68. Existing overhead utility lines within, or adjacent to the proposed development, and all proposed utilities shall be installed underground. All existing utility lines attached to joint use 92 KV transmission power poles are exempt from the requirement to be placed underground. 69. Underground utilities shall be installed prior to overlying hardscape. For installation of utilities in existing improved streets, the applicant shall comply with trench restoration requirements maintained, or required by the City Engineer. The applicant shall provide certified reports of all utility trench compaction for approval by the City Engineer. Additionally, grease traps and the maintenance thereof shall be located as to not conflict with access aisles/entrances. 70. Utility easements in favor of CVWD shall be clear of any obstructions including overhead obstructions. CONSTRUCTION 71. The City will conduct final inspections of habitable buildings only when the buildings have improved street and (if required) sidewalk access to publicly- maintained streets. The improvements shall include required traffic control devices, pavement markings and street name signs. If on-site streets in residential developments are initially constructed with partial pavement thickness, the applicant shall complete the pavement prior to final inspections of the last ten percent of homes within the development or when directed by the City, whichever comes first. LANDSCAPE AND IRRIGATION 72. The applicant shall comply with LQMC Sections 13.24.130 (Landscaping Setbacks) 748 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 23 of 28 & 13.24.140 (Landscaping Plans). 73. Landscape and irrigation plans for landscaped lots and setbacks, medians, retention basins, and parks shall be signed and stamped by a licensed landscape architect. 74. All new and modified landscape areas shall have landscaping and permanent irrigation improvements in compliance with the City’s Water Efficient Landscape regulations contained in LQMC Section 8.13 (Water Efficient Landscape). 75. Lighting plans shall be submitted with the final landscaping plans for a recommendation to the Community DevelopmentDesign and Development Director for his approval. Exterior lighting shall be consistent with LQMC Section 9.100.150 (Outdoor Lighting). All freestanding lighting shall not exceed 18 feet in height, and shall be fitted with a visor if deemed necessary by staff to minimize trespass of light off the property. The illuminated carports shall be included in the photometric study as part of the final lighting plan submittal. 76. All water features shall be designed to minimize “splash”, and use high efficiency pumps and lighting to the satisfaction of the Community Design and Development Director. They shall be included in the landscape plan water efficiency calculations per Municipal Code Chapter 8.13. 77. All rooftop mechanical equipment shall be completely screened from view behind the parapet. Utility transformers or other ground mounted mechanical equipment shall be fully screened with a screening wall or landscaping and painted to match the adjacent buildings. 78. The applicant shall submit the final landscape plans for review, processing and approval to the Community Design and Development Department, in accordance with the Final Landscape Plan application process. Community Design and Development Director approval of the final landscape plans is required prior to issuance of the first building permit unless the Community Design and Development Director determines extenuating circumstances exist which justifies an alternative processing schedule. Landscape plans for landscaped medians on public streets shall be approved by both the Community Design and Development Director and the City Engineer. NOTE: Plans are not approved for construction until signed by both the Community Design and Development Director and/or City Engineer. 749 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 24 of 28 79. The applicant or his agent has the responsibility for proper sight distance requirements per guidelines in the American Association of State Highway and Transportation Officials (AASHTO) “A Policy on Geometric Design of Highways and Streets, 5th Edition” or latest, in the design and/or installation of all landscaping and appurtenances abutting and within the private and public street right-of-way. 80. All trees located within the project site shall have a minimum trunk caliper of 2.5 inches. 81. Final field inspection of all landscaping materials, including all vegetation, hardscape and irrigation systems is required by the Community Design and Development Department prior to final project sign-off by the Community Design and Development Department. Prior to such field inspection, written verification by the project’s landscape architect of record stating that all vegetation, hardscape and irrigation systems have been installed in accordance with the approved final landscape plans shall be submitted to the Community Design and Development Department. 82. Landscape areas shall have permanent irrigation improvements meeting the requirements of the Community Design and Development Director. Use of lawn areas shall beas identified in the conceptual landscape plan shall be minimized removed from the Final Landscape Plan submittal with no lawn, or spray irrigation, being placed within 24 inches of curbs in perimeter landscape areas along public streets. PUBLIC SERVICES 83. The applicant shall provide public transit improvements as required by SunLine Transit Agency and approved by the City Engineer. MAINTENANCE 84. The applicant shall comply with the provisions of LQMC Section 13.24.160 (Maintenance). 85. The applicant shall make provisions for the continuous and perpetual maintenance of perimeter landscaping up to the curb, access drives, sidewalks, and stormwater BMPs. FEES AND DEPOSITS 750 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 25 of 28 86. The applicant shall comply with the provisions of LQMC Section 13.24.180 (Fees and Deposits). These fees include all deposits and fees required by the City for plan checking and construction inspection. Deposits and fee amounts shall be those in effect when the applicant makes application for plan check and permits. 87. Permits issued under this approval shall be subject to the Coachella Valley Multi- Species Habitat Conservation Plan/Natural Community Habitat Conservation Plan Mitigation Fee, in accordance with LQMC Chapter 3.34. FIRE DEPARTMENT 88. Provide or show there exists a water system capable of delivering a fire flow 4000GPM per minute for four hours duration at 20 psi residual operating pressure, which must be available before any combustible material is placed on the construction site. 89. Approved accessible on-site super fire hydrants shall be located not to exceed 200 feet apart in any direction. Any portion of the facility or of an exterior wall of the first story of the building shall not be located more than 150 feet from fire apparatus access roads as measured by an approved route around the complex, exterior of the facility or building. 90. The minimum dimension for gates is 20 feet clear and unobstructed width and a minimum vertical clearance of 13 feet 6 inches in height. Any gate providing access from a road shall be located at least 35 feet setback from the roadway and shall open to allow a vehicle to stop without obstructing traffic on the road. Where a one-way road with a single traffic lane provides access to a gate entrance, a 38-foot turning radius shall be used. 91. Prior to building plan approval and construction, applicant/developer shall furnish two copies of the water system fire hydrant plans to Fire Department for review and approval. Plans shall be signed by a registered civil engineer, and shall confirm hydrant type, location, spacing, and minimum fire flow. Once plans are signed and approved by the local water authority, the originals shall be presented to the Fire Department for review and approval. 92. Prior to issuance of building permits, the water system for fire protection must be provided as approved by the Fire Department and the local water authority. 93. Blue dot retro-reflectors pavement markers on private streets, public streets and driveways to indicated location of the fire hydrant. 06-05 (located at 751 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 26 of 28 www.rvcfire.org) 94. Fire Apparatus access road shall be in compliance with the Riverside County Fire Department Standard number 06-05 (located at www.rvcfire.org). Access lanes will not have an up, or downgrade of more than 15%. Access roads shall have an unobstructed vertical clearance not less than 13 feet and 6 inches. Access lanes will be designed to withstand the weight of 60 thousand pounds over 2 axles. Access will have a turning radius capable of accommodating fire apparatus. Access lane shall be constructed with a surface so as to provide all weather driving capabilities. 95. Dead-end fire apparatus access roads in excess of 150 feet in length shall be provided with approved provision for the turnaround capabilities of fire apparatus 96. Driveway loops, fire apparatus access lanes and entrance curb radius should be designed to adequately allow access of emergency fire vehicles. The applicant or developer shall include in the building plans the required fire lanes and include the appropriate lane printing and/or signs. 97. An approved Fire Department access key lock box shall be installed next to the approved Fire Department access door to the building. Required order forms and installation standards may be obtained at the Fire Department. 98. Display street numbers in a prominent location on the address side of building(s) and/or rear access if applicable. Numbers and letters shall be a minimum of 12” in height for building(s) up to 25’ in height. In complexes with alpha designations, letter size must match numbers. All addressing must be legible, of a contrasting color, and adequately illuminated to be visible from street at all hours. 99. Should any portion of the building be deemed “mixed occupancy” the sprinkler system shall be designed per referenced standard NFPA13R 7.2.4.1 through 7.2.4.2 per the CBC. 100. The PIV and FCD shall be located to the front of building and a minimum of 25 feet from the building(s). Sprinkler riser room must have indicating exterior and/or interior door signs. A C-16 licensed contractor must submit plans, along with current permit fees, to the Fire Department for review and approval prior to installation. 101. Install an alarm monitoring system for fire sprinkler system(s) with 20 or more heads, along with current permit fees, to the Fire Department for review and 752 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 27 of 28 approval prior to installation. 102. Install a portable fire extinguisher, with a minimum rating of 2A-10BC, for every 3,000 sq. ft. and/or 75 feet of travel distance. Fire extinguishers shall be mounted 3.5 to 5 ft above finished floor, measured to the top of the extinguisher. Where not readily visible, signs shall be posted above all extinguishers to indicate their locations. Extinguishers must have current CSFM service tags affixed. 103. No hazardous materials shall be stored and/or used within the building, which exceeds quantities listed in 2010 CBC. No class I, II or IIIA of combustible/flammable liquid shall be used in any amount in the building. 104. Exit designs, exit signs, door hardware, exit markers, exit doors, and exit path marking shall be installed per the 2010 California Building Code. 105. Electrical room doors if applicable shall be posted “ELECTRICAL ROOM” on outside of door. 106. Fire Alarm Control Panel room doors if applicable shall be posted “FACP” on outside of door. 107. Fire Riser Sprinkler room doors if applicable shall be posted “Fire Riser” on outside of door. 108. Roof Access room door if applicable shall be posted “Roof Access” on outside of door. 109. Access shall be provided to all mechanical equipment located on the roof as required by the Mechanical Code. 110. Air handling systems supplying air in excess of 2000 cubic feet per minute to enclosed spaces within buildings shall be equipped with an automatic shutoff. 2010 CMC 111. Gate(s) shall be automatic or manual operated. Install Knox key operated switches, with dust cover, mounted per recommended standard of the Knox Company. Building plans shall include mounting location/position and operating standards for Fire Department approval. 112. Nothing in our review shall be construed as encompassing structural integrity. Review of this plan does not authorize or approve any omission or deviation from all applicable regulations. Final approval is subject to plan review and field 753 CITY COUNCIL RESOLUTION 2015-0527- CONDITIONS OF APPROVAL SITE DEVELOPMENT PERMIT 20165-00084 (SDP 2003-762 EXTENSION 76) LA PALOMA (WSL LA QUINTA R/E, LLC) NOVEMBER 3, 2015June 6, 2017 Page 28 of 28 inspection. All questions regarding the meaning of the code requirements should be referred to Fire Department at 760-863-8886. COMMUNITY DESIGN AND DEVELOPMENT DEPARTMENT 113. Approved Cultural Resource Monitor(s) be present during all ground disturbing activities. Experience has shown that there is always a possibility of encountering buried cultural resources during construction related excavations, or archaeological testing/data recovery. Should buried cultural deposits be encountered, the Monitor may request that destructive construction halt and the Monitor shall notify a Qualified (Secretary of the Interior’s Standards and Guidelines) Archaeologist to investigate and, if necessary, prepare a mitigation plan for submission to the City and the Agua Caliente THPO. 114. Additionally, in accordance with State law, the County Coroner should be contacted if any human remains are found during earthmoving activities. If the remains are determined to be of Native American origin, the Native American Heritage Commission (NAHC) shall be contacted. The NAHC will make a determination of the Most Likely Descendent (MLD). The City will work with the designated MLD to determine the final disposition of the remains. 115. A sign permit shall be submitted for staff approval for proposed monument signs specified in Specific Plan 2004-071 Amendment 1. 116. As part of the Final Landscape Plan review process, the applicant shall submit a revised plan for the main entrance vehicular courtyard depicting either the removal of the water feature within the drive aisle or redesign of the water feature with an enhanced interactive design. As part of the Final Landscape Plan review process, the applicant shall submit a revised plant palette that reflects an increased use of Colorado Desert native type species of plants and shrubs. 754 WESTliving, LLC l 5796 Armada Drive, Suite 300 l Carlsbad, CA 92008 l (760) 602-5850 l www.westliving.net May 22, 2017 Mr. Gabriel Perez Planning Manager City of La Quinta, Planning Department 78-495 Calle Tampico La Quinta, California 92253 RE: Time Extension Request for Site Development Permit 2017-0008; 14 acre parcel located at the northeast corner of Washington Street and Avenue 50 (APN 646-070-016) Dear Mr. Perez, WSL La Quinta R/E, LLC (the “Applicant”) has requested a two-year extension of the SDP permit for the above referenced project. Fulfillment of Condition #3, as currently defined, requires Applicant to secure a building permit before the SDP expires. Due to the complexity and time needed to obtain approvals imposed by CVWD with respect to the La Quinta Evacuation Channel improvements, Applicant respectfully requests modification to Condition #3 as detailed below. Proposed Condition Site Development Permit 2017-0008 shall receive a two-year extension, conditioned on the City of La Quinta receiving a revised preliminary grading plan within six months of the approval date. Should Applicant fail to submit a revised preliminary grading plan within this six-month period, SDP extension shall automatically expire. Upon delivery of the revised preliminary grading plan within the six-month period, Applicant shall submit an application for building permit within the two-year extension period and will be deemed to have satisfied this revised Condition #3. Without hydrology analysis provided, or a hydraulic grade line detailed, CVWD has imposed a floodwall at elevation 54.5 to protect the project and undefined improvement within the La Quinta Evacuation Channel, which will require US Army Corp and CA Fish & Wildlife Agency approvals. The current project, as approved, provides flood protection to an elevation of 50.0. An increase in the floodwall height cannot be achieved without significantly altering the site and project plan. The initial six-month period of the SDP extension is to allow Applicant time to: 1) secure CVWD approval of the 50.0 floodwall elevation, which leaves the currently approved site plan essentially unchanged; or 2) revise the grading and project plan in an attempt to conform to the stated CVWD 54.5 floodwall elevation. We look forward to hearing back from you on the proposed modification and if any questions arise during your review of this request, please let me know. Thank you, WSL La Quinta R/E, LLC John Rimbach President & CEO WESTliving, LLC ATTACHMENT 4 755 756 ATTACHMENT 5 757 758 Date JUNE June 6 CITY COUNCIL MEETING June 7 HOUSING COMMISSION June 12 COMMUNITY SERVICES COMISSION June 13 PLANNING COMMISSION June 20 CITY COUNCIL MEETING June 27 PLANNING COMMISSION Date JULY July 4 INDEPENDENCE DAY - CITY HALL CLOSED July 5 CITY COUNCIL MEETING July 10 COMMUNITY SERVICES COMMISSION July 11 PLANNING COMMISSION July 18 CITY COUNCIL AND HOUSING AUTHORITY MEETING July 18 SPECIAL JOINT COUNCIL AND BOARD & COMMISSIONS MEETING July 25 PLANNING COMMISSION Date AUGUST Aug 1 CITY COUNCIL MEETING Aug 8 PLANNING COMMISSION Aug 9 FINANCIAL ADVISORY COMMISSION Aug 14 COMMUNITY SERVICES COMMISSION Aug 15 CITY COUNCIL MEETING - CANCELLED Aug 22 PLANNING COMMISSION CITY COUNCIL BOARDS, COMMISSION AND OUTSIDE AGENCY MEETINGS JUNE - AUGUST 2017 DEPARTMENTAL REPPORT ITEM NO. 1-A 759 Day 5 4:30 a.m.CVAG EXECUTIVE COMMITTEE 8 11:00 a.m. 8 12:00 p.m. 14 4:00 p.m. 15 8:00 a.m. 23 8:00 a.m. 26 4:30 p.m. 28 4:00 p.m. No Meeting 26 5:30 p.m.CVAG GENERAL ASSEMBLY TBD No Meeting 12 9:00 a.m. 21 10:00 a.m. 26 5:30 p.m.CVAG GENERAL ASSEMBLY No Meeting TBD 5 9:00 a.m. 14 9:30 a.m. 14 4:00 p.m. 26 5:30 p.m.CVAG GENERAL ASSEMBLY 28 11:00 a.m. 28 4:00 p.m.ECONOMIC-DEVELOPMENT SUB COMMITTEE TBD 5 6:00 p.m. 26 5:30 p.m.CVAG GENERAL ASSEMBLY No Meeting TBD TBD CHAMBER OF COMMERCE INFORMATION EXCHANGE OUTSIDE AGENCY UPCOMING MEETING DATES JUNE 2017 Time LINDA EVANS, MAYOR CVAG COACHELLA VALLEY CONSERVATION COMMISSION CVAG EXECUTIVE COMMITTEE AND GENERAL ASSEMBLY KATHLEEN FITZPATRICK, COUNCILMEMBER ECONOMIC-DEVELOPMENT SUB COMMITTEE COACHELLA VALLEY MOUNTAINS CONSERVANCY COACHELLA VALLEY SCHOOL DISTRICT COMMITTEE JOHN PEÑA, , COUNCILMEMBER JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY CVAG SAFETY COMMITTEE CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE ECONOMIC-DEVELOPMENT SUB COMMITTEE EAST VALLEY COALITION GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU IID ENERGY CONSUMERS' ADVISORY COMMITTEE ANIMAL CAMPUS COMMISSION COACHELLA VALLEY WATER DISTRICT POLICY COMMITTEE SUNLINE TRANSIT AGENCY DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE DESERT SANDS UNIFIED DISTRICT COMMITTEE COACHELLA VALLEY SCHOOL DISTRICT COMMITTEE CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE STEVE SANCHEZ, COUNCILMEMBER ROBERT RADI, COUNCILMEMBER CVAG TRANSPORTATION COMMITTEE RIVERSIDE COUNTY TRANPORTATION COMMISSION (RCTC) ECONOMIC-DEVELOPMENT SUB COMMITTEE 760 Day 12 4:00 p.m. 19 8 a.m. - 4 p.m.EAST VALLEY COALITION STRATEGIC PLANNING SESSION 20 8:00 a.m. 26 4:00 p.m. No Meeting CVAG EXECUTIVE COMMITTEE No Meeting No Meeting No Meeting No Meeting 10 3:00 p.m. 19 TBD CALIFORNIA JOINT POWERS INSURANCE AUTHORITY TBD TBD DESERT RECREATION DISTRICT 19 9:00 a.m. 19 8 a.m. - 4 p.m.EAST VALLEY COALITION STRATEGIC PLANNING SESSION No Meeting No Meeting TBD 12 9:30 a.m. 12 4:00 p.m. 26 11:00 a.m. 26 4:00 p.m.ECONOMIC-DEVELOPMENT SUB COMMITTEE No Meeting CVAG TRANSPORTATION COMMITTEE TBD TBD DESERT RECREATION DISTRICT 3 6:00 p.m. 13 9:30 a.m. TBD TBD CHAMBER OF COMMERCE INFORMATION EXCHANGE STEVE SANCHEZ, COUNCILMEMBER IID ENERGY CONSUMERS' ADVISORY COMMITTEE ANIMAL CAMPUS COMMISSION DESERT SANDS UNIFIED DISTRICT COMMITTEE RIVERSIDE COUNTY TRANPORTATION COMMISSION (RCTC) ECONOMIC-DEVELOPMENT SUB COMMITTEE SUNLINE TRANSIT AGENCY DESERT SANDS UNIFIED SCHOOL DISTRICT COMMITTEE COACHELLA VALLEY SCHOOL DISTRICT COMMITTEE ROBERT RADI, COUNCILMEMBER JOHN PEÑA, COUNCILMEMBER CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY CVAG SAFETY COMMITTEE EAST VALLEY COALITION COACHELLA VALLEY WATER DISTRICT POLICY COMMITTEE GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU ECONOMIC-DEVELOPMENT SUB COMMITTEE ECONOMIC-DEVELOPMENT SUB COMMITTEE KATHLEEN FITZPATRICK, COUNCILMEMBER COACHELLA VALLEY MOUNTAINS CONSERVANCY COACHELLA VALLEY SCHOOL DISTRICT COMMITTEE CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE OUTSIDE AGENCY UPCOMING MEETING DATES JULY 2017 Time LINDA EVANS, MAYOR CVAG COACHELLA VALLEY CONSERVATION COMMISSION 761 Day 9 4:00 p.m. 17 8:00 a.m. 23 No Meeting ECONOMIC-DEVELOPMENT SUB COMMITTEE No Meeting CVAG COACHELLA VALLEY CONSERVATION COMMISSION No Meeting CVAG ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE No Meeting No Meeting No Meeting No Meeting TBD No Meeting No Meeting TBD No Meeting 9 9:30 a.m. 9 4:00 p.m. 23 No Meeting ECONOMIC-DEVELOPMENT SUB COMMITTEE No Meeting CVAG TRANSPORTATION COMMITTEE No Meeting 7 6:00 p.m. No Meeting TBD TBD CHAMBER OF COMMERCE INFORMATION EXCHANGE DESERT SANDS UNIFIED DISTRICT COMMITTEE STEVE SANCHEZ, COUNCILMEMBER IID ENERGY CONSUMERS' ADVISORY COMMITTEE ANIMAL CAMPUS COMMISSION RIVERSIDE COUNTY TRANPORTATION COMMISSION (RCTC) ECONOMIC-DEVELOPMENT SUB COMMITTEE SUNLINE TRANSIT AGENCY COACHELLA VALLEY SCHOOL DISTRICT COMMITTEE JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY ROBERT RADI, COUNCILMEMBER COACHELLA VALLEY SCHOOL DISTRICT COMMITTEE JOHN PEÑA, , COUNCILMEMBER CVAG PUBLIC SAFETY COMMITTEE CVAG VALLEY-WIDE HOMELESSNESS COMMITTEE EAST VALLEY COALITION ECONOMIC-DEVELOPMENT SUB COMMITTEE OUTSIDE AGENCY UPCOMING MEETING DATES AUGUST 2017 Time LINDA EVANS, MAYOR KATHLEEN FITZPATRICK, COUNCILMEMBER COACHELLA VALLEY MOUNTAINS CONSERVANCY GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU CVAG EXECUTIVE COMMITTEE COACHELLA VALLEY WATER DISTRICT POLICY COMMITTEE 762 City of La Quinta CITY COUNCIL MEETING DEPARTMENT REPORT TO: Madam Mayor and Members of the City Council FROM: Frank J. Spevacek, City Manager DATE: June 6, 2017 SUBJECT: ANNUAL CITY MANAGER PERFORMANCE EVALUATION During the past four years the Council has scheduled the City Manager’s annual performance review at the first meeting in June. This corresponded with my hire date of June 4, 2012. In past years, however, the City Manager’s annual review was continued to either the second meeting in June or the first meeting in July due to the number of pressing items on these agendas. Given the number of items on the June 6 agenda combined with the need to conduct Board and Commission interviews, I have moved my annual performance review to the June 20, 2017 meeting. DEPARTMENTAL REPORT ITEM NO. 1-B 763 764 City of La Quinta CITY COUNCIL MEETING DEPARTMENT REPORT TO: Madam Mayor and Members of the City Council FROM: Timothy R. Jonasson, PE, Director of Design and Development/City Engineer DATE: June 6, 2017 SUBJECT: WASHINGTON STREET AND EISENHOWER DRIVE ENHANCED DRAINAGE IMPROVEMENTS The Focused Area Drainage Study of March 2016 evaluated select areas of the City and identified the scope and approximate cost of improvements to augment the City’s existing flood control and drainage systems, and increase capacity to accommodate up to a 500-year storm event. Washington Street Enhanced Drainage Improvements Dudek recently finished the refined analysis (250-year storm event) to maintain one “dry lane” in each direction on Washington Street from Highway 111 to the Evacuation Channel. The report recommends improvements in 2 subareas. Avenue 50 subarea: improve existing drainage inlets increase capacity of storm drains that run under Avenue 50 allow large flows to discharge to the vacant lot at the southeastern corner of Avenue 50 and Washington Street Lake La Quinta subarea: increase existing inlet capacities increase sizes of existing storm drain facilities add a water quality treatment facility for discharges to Lake La Quinta Staff is meeting with the Lake La Quinta Homeowner’s Association (HOA) Board on June 1 about these proposed Washington Street improvements. Once an agreement is reached with the HOA, staff will be bringing an item forward to Council to engage an engineering consultant to prepare plans, specifications and cost estimates to install these improvements. Council has already appropriated funds in the CIP to design and construct these improvements. DEPARTMENTAL REPORT ITEM NO. 5 765 Eisenhower Drive Enhanced Drainage Improvements On May 16, 2017, Council engaged Michael Baker International to prepare plans, specifications and cost estimates for a retention basin and storm drain for recently acquired property at Coachella Drive. This basin will serve Eisenhower Drive between Avenida Fernando and Washington Street (Attachment 1). To improve drainage of Eisenhower Drive south of the entrance to The La Quinta Resort, staff met with the General Manager of the La Quinta Country Club to request access to their driving range; the range is at a lower elevation than the intersection of Eisenhower Drive and Avenue 50 and would therefore provide positive drainage. Because of concern of additional liability and maintenance of a proposed retention basin, La Quinta Country Club’s board of directors denied staff’s request. Staff and Michael Baker International will attempt to find an alternative location for the basin as part of the Preliminary Design Technical Memorandum (150-year storm event) for Eisenhower Drive. Attachment: 1. Vicinity Map 766 Basin6.3 Acres8 Feet Deep 18" RCP 18" RCP 36" RCP48" RCP 24" R C P 48" RCP LA QUINTA FOCUSED DRAINAGE STUDYAlternative 1 Proposed Facilities°0 100 20050Feet 3/ 3 / 2 0 1 7 J N H : \ p d a t a \ 1 5 5 5 5 5 \ G I S \ M X D \ P r o p o s e d \ A t l a s M a p _ A l t 1 . m x d < U S E R N A M E > Source: Legend Proposed Storm Drain Proposed Basin Existing Storm Drain Parcel BoundaryKEY MAP ATTACHMENT 1 767 768 Report to La Quinta City Council Palm Springs International Airport Commission Meeting May 17, 2017 Budget: The Commission worked out the final issues for the coming budget, and agreed to present it to the City Council immediately. The major issue was the $740,000 increase in security costs – to accommodate the hiring of 4 new police officers. In order to fund this increased cost, we recommend the following: 1) Increase the airline facility leases by 9%. (This still leaves us extremely competitive with other airports.); 2) increase parking fees by $3/day; and 3) Delay the improvements on the pavement of Kirk Douglas Drive. The new budget allows for a 2% COLA increase and a 5-6% Health and Welfare increase. We will continue retiring existing bonds, and will fund new ones through the $4.50 Passenger Facility Charge. . Passenger Activity: April was another record month, up 7.4% from last year. Year-to- date activity is up 4.4%. General: Due to our increased passenger activity, we expect the FAA to require that we have a nursing station next year. We are reviewing budget and facility impacts. The Aviation Expo Parade of Planes will not be returning this year due to the costs. We are continuing discussions with them and AOPA to have a jointly sponsored event. There is a chance that they will return in 2018. Next Meeting: The next meeting is scheduled for June 21 at 8:00 am. This will be the last meeting of my second term. . Submitted: _________________________ Robert G. Teal, Commissioner Palm Springs International Airport Email: bob@teal.us.com Phone: 760-899-4171 REPORTS AND INFORMATIONAL ITEM NO. 25 769 770 PLANNING COMMISSION MINUTES 1 APRIL 11, 2017 PLANNING COMMISSION MINUTES TUESDAY, APRIL 11, 2017 CALL TO ORDER A regular meeting of the La Quinta Planning Commission was called to order at 6:00 p.m. by Chairperson Bettencourt. PRESENT: Commissioners Blum, Caldwell, Hansen, McCune, Quill, Wright and Chairperson Bettencourt ABSENT: None STAFF PRESENT: Assistant City Attorney Morgan Gallagher, Planning Manager Gabriel Perez, Principal Engineer Bryan McKinney, Associate Planner Carlos Flores, Executive Assistant Wanda Wise-Latta and Office Assistant Carley Votaw Commissioner McCune led the Commission in the Pledge of Allegiance. PUBLIC COMMENT – None CONFIRMATION OF AGENDA – Confirmed APPROVAL OF MINUTES Motion – A motion was made and seconded by Commissioners Blum/Quill to approve the Planning Commission Minutes of March 28, 2017, with the following correction: Page 2, paragraph 5: The spelling of the word track to be changed to tract. AYES: Commissioners Blum, Caldwell, Hansen, McCune, Quill, Wright, and Chairperson Bettencourt. NOES: None. ABSENT: None. ABSTAIN: None. Motion passed unanimously. PUBLIC HEARING 1.Specific Plan 2016-0004 (SP 2001-052 Amendment 1) and Conditional Use Permit 2016-0005, submitted by Wash St. Urology Property, LLC requesting a specific plan amendment and conditional use permit to convert an existing building to medical offices. CEQA: exempt pursuant to Section 15301 in that REPORTS AND INFORMATIONAL ITEM NO. 26 771 PLANNING COMMISSION MINUTES 2 APRIL 11, 2017 the proposed project can be characterized as an existing facility. Location: 47474 Washington Street. Associate Planner Carlos Flores presented the information contained in the staff report, which is on file in the Design and Development Department. It was previously noted by Planning Manager Gabriel Perez that correspondence was received from Dr. Lance Walsh and distributed to the Commission prior to the beginning of the meeting. Commission discussion followed clarifying the address and name of the facility; and parking analysis to which staff stated that there was sufficient parking on site for the proposed two-story medical office use. PUBLIC SPEAKER: Maggie Montez, Lee & Associates, Palm Desert, CA – introduced herself. PUBLIC SPEAKER: Craig Pearson, Pearson Architects, Inc., Palm Desert, CA - introduced himself. Commission discussion continued regarding the landscaping on the site and staff stated the final landscape plan will address concerns including the landscaping and the silt build up in the retention areas along Washington Street. Chairperson Bettencourt declared the PUBLIC HEARING OPEN at 6:40 p.m. PUBLIC SPEAKER: None. Chairperson Bettencourt declared the PUBLIC HEARING CLOSED at 6:40 p.m. Motion – A motion was made and seconded by Commissioners Wright/Quill to adopt Resolution No. 2017-006 of the Planning Commission of the City of La Quinta, California recommending that the City Council approve a Specific Plan Amendment 2016-0004 (Specific Plan 2001-052, Amendment 1) and Conditional Use Permit 2016-0005 to convert an existing building to medical offices and add a condition of approval of the Conditional Use Permit requiring Planning Commission review of exterior and landscape improvements, and find the project exempt from the California Environmental Quality Act. AYES: Commissioners Caldwell, Hansen, McCune, Quill, Wright and Chairperson Bettencourt. NOES: Commissioner Blum. ABSENT: None. ABSTAIN: None. Motion passed. CORRESPONDENCE AND WRITTEN MATERIAL - None 772 PLANNING COMMISSION MINUTES 3 APRIL 11, 2017 COMMISSIONER ITEMS Commissioner Wright provided an update regarding the Salton Sea Tour held earlier in the day. Chairman Bettencourt shared his observations regarding the Home Depot site. Commissioner Blum expressed his observations of the condition of the former Sam’s Club site. STAFF ITEMS 1. Planning Manager Perez provided a verbal update regarding the temporary fence at SilverRock stating that it was completed on March 30, 2017 and staff is conducting post-construction monitoring. 2. Planning Manager Perez provided a verbal update regarding the Wireless Telecommunication Facilities Inventory. 3. Planning Manager Perez provided an update regarding the March 29, 2017 Vista Santa Rosa Community Council meeting. 4. Assistant City Attorney Gallagher provided an update on the subject of chickens permitted on residential properties of a certain size. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Blum/Wright to adjourn this meeting at 6:59 p.m. Motion passed unanimously. Respectfully submitted, WANDA WISE-LATTA, Executive Assistant City of La Quinta, California 773 774 HOUSING COMMISSION MINUTES 1 APRIL 12, 2017 HOUSING COMMISSION MINUTES WEDNESDAY, APRIL 12, 2017 A regular meeting of the Housing Commission was called to order at 6:00 p.m. by Chairperson Rogers. PRESENT: Commission Members Johnson, Long and Chair Rogers ABSENT:None PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON AGENDA – None CONFIRMATION OF AGENDA - Confirmed CONSENT CALENDAR 1. APPROVE MINUTES OF MARCH 22, 2017 Motion – A motion was made and seconded by Commissioners Long/Johnson to approve the Consent Calendar as recommended. Motion passed unanimously. BUSINESS SESSION 1.REVIEW AND RECOMMEND AMENDMENT NO. 3 TO THE AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE LA QUINTA HOUSING AUTHORITY AND HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC. Management Specialist Villalpando presented the staff, which is on file in the Clerk’s Office. Motion – A motion was made and seconded by Commissioners Long/Johnson to approve Amendment No. 3 to the Affordable Housing Agreement as recommended. Motion passed unanimously. 2.REVIEW LA QUINTA HOUSING AUTHORITY ANNUAL REPORT FOR FISCAL YEAR 2015/16 PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34328. Management Specialist Villapando presented the staff report, which is on file in the Clerk’s Office. REPORTS AND INFORMATIONAL ITEM NO. 27 775 HOUSING COMMISSION MINUTES 2 APRIL 12, 2017 Motion – A motion was made and seconded by Commissioners Long/Johnson to approve the Fiscal Year 2015-16 Housing Authority Annual Report as recommended. Motion passed unanimously. STUDY SESSION – None DEPARTMENT REPORTS 1. VERBAL REPORT FROM STAFF ON DISPOSITION AND DEVELOPMENT AGREEMENT FOR WASHINGTON STREET APARTMENTS Development Consultant McMillen provided a verbal update on the project. PUBLIC SPEAKER: Ms. Linda Gunnett, La Quinta – requested clarification on the cost of the development. Staff explained the funding of the project. REPORTS AND INFORMATIONAL ITEMS – None COMMISSIONER ITEMS – None DIRECTOR ITEMS – None ADJOURNMENT A motion was made and seconded by Commission Members Long/Johnson to adjourn the meeting at 6:47 p.m. Motion passed unanimously. Respectfully submitted, Marilyn Monreal, Management Assistant 776 POWER POINTS JOINT CITY COUNCIL / HOUSING AUTHORITY MEETING JUNE 6, 2017 6/7/2017 1 Joint City Council/Housing Authority Meeting June 6, 2017 City Council Meeting June 6, 2017 B1 – CS Grant Requests 2016-17 6/7/2017 2 Applicant Requested Committee Recommendation Certified Farmers Market La Quinta $5,000 $500 Children’s Discovery Museum of the Desert $5,000 $3,240 Coachella Valley Autism Society of America $5,000 $500 Coachella Valley Symphony $2,000 $500 Martha’s Village and Kitchen, Inc. $5,000 $2,760 Graceful Passages $5,000 $0 Total $27,000 $7,500 Joint City Council/Housing Authority Meeting June 6, 2017 B3- Approve Washington Street Apartments Relocation Plan 6/7/2017 3 BACKGROUND •February 7, 2017- Housing Authority Review of draft Plan •Resident, public and Housing Commission review and comment –30 Day review period –Weekly resident meetings COMMENTS – (PLAN ADDENDUM) •Voluntary mediation for grievances •Monthly newsletter and meeting for residents •Suggestion box for residents •Opportunity to preview unit prior to move 6/7/2017 4 COMMENTS – (PLAN ADDENDUM) •Extra recycling containers and dumpsters •Assisted community garage sales •Focused education (3 months prior) –Moving process –Expectations and preparedness FISCAL IMPACT •Relocation benefits estimate: $229,680 –Housing Authority Budget 6/7/2017 5 RECOMMENDATION •March 22, 2017 – Housing Commission recommendation of Plan with Addendum ACTION •City Council to approve Plan •Authorize Plan to be submitted to State Department of Housing and Community Development 6/7/2017 6 City Council Meeting June 6, 2017 SS1 – Matrix Study 2017 6/7/2017 7 Update to the Police Services Review La Quinta, California Scope of Work for Project Update Obtain and analyze the current 135 hour Patrol staffing deployment and evaluate any service level issues Evaluate the 2016 community generated workload to determine the level of committed and proactive time and compare the results for the last three years Evaluate RCSD’s methodology in determining the number of Detective positions and allocation of the costs between La Quinta and the other two entities served by the Thermal Substation Recommendations to improve policing services and reasonable opportunities to reduce the cost of law enforcement services 6/7/2017 8 La Quinta PD in 2017 Chief & Asst. Chief (Captain & Lieutenant) Admin/Traffic Sergeant (1) Motor Officers (4) CSOs (2) Patrol Lieutenant (.7) Sergeants (5) Officers Officers (27.7) or 135 Hours / Day CSOs (4) Special Enf. Team Sergeant (1) Officers (5, will be 4) Business District Officers (2) Business District Officers (2) Investigations Lt. (.6) Sgt. (1) Detectives (4.6) Investigations Lt. (.6) Sgt. (1) Detectives (4.6) Task Force Detectives (2) Task Force Detectives (2) Summary of Personnel Changes Change from 150 daily patrol hours in 2014 to 135 hours beginning July 2016 resulted in an overall reduction of 3 Patrol Officers. The Special Enforcement Team will operate with 1 Sergeant and 4 Officers rather than 5 Officers due to a vacancy that may not be filled this year. School Resource Officers – currently 3 SROs with costs split between La Quinta and the School District; La Quinta is reducing funding from 1.5 SRO to .5 SRO which will result in only 1 SRO at the schools. 6/7/2017 9 Patrol Calls for Service in 2016 LQPD responded to 17,572 community generated calls for service (48 per day); sworn staff handled 16,915 calls. 0 200 400 600 800 1,000 1,200 1,400 123456789 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 Nu m b e r  of  Ca l l s Hour of the Day (1 = Midnight –1 : 0 0 AM) Calls for Service by Hour Call Distribution and Comparison 2016 Calls for Service 16% of calls occur from midnight to 8 AM 44% of calls occur during the day from 8 AM to 4 PM 40% of calls occur in the evening from 4 PM to midnight The Number of Calls Has Not Varied Significantly in the last Three Years: 2014: 16,641 handled by Officers; 782 handled by CSOs 2015: 16,986 handled by Officers; 893 handled by CSOs 2016: 16,915 handled by Officers; 657 handled by CSOs 6/7/2017 10 Most Frequent Calls for Service Type of Call 2014 2015 2016 Audible Burglar Alarm 3,609 3,588 3,497 911 Call From Cell Phone 1,531 1,843 1,741 Disturbance 480 526 577 Disturbance (Noise) 480 469 538 911 Call From Business 758 607 523 Assist Other Department 437 494 509 Suspicious Circumstance 358 490 509 Total of All Calls 16,641 16,986 16,915 Response Times for 2016 Response times to high priority calls for service is very good to the highest priority incidents. Priority 1 and 1A are emergency calls, Priority 2 are urgent calls. Call Priority # of Calls Call Processing Travel Response Time Priority 1 22 1.1 4.0 5.1 Priority 1A 187 0.7 4.7 5.4 Priority 2 7,354 3.0 9.1 12.1 All Calls 16,915 4.9 10.5 15.4 6/7/2017 11 Response Times 2014 - 2016 The Patrol Officer response times for the highest priority calls have only varied slightly in the last three years. Call Priority 2014 2015 2016 Priority 1 6.5 5.2 5.2 Priority 1A 5.0 5.1 5.4 Priority 2 12.1 12.8 12.1 All Calls 14.9 17.2 15.4 Proactive Time Guidelines “Committed time” is the time required to handle community generated calls for service, writing reports and booking prisoners (the work a community ‘demands’ or calls on the PD to do) “Proactive time” is the amount of time remaining. Accomplished during “proactive time”: briefing, administrative tasks, personal breaks, meetings, neighborhood patrols, traffic and pedestrian contacts, beat projects, etc. An optimal level of proactive time for many law enforcement agencies is between 40% and 50% 6/7/2017 12 Proactive Time Guidelines (2) Proactive time levels below 40% do not provide sufficient time for a Patrol Officer, after accomplishing administrative tasks, to have regular blocks of time during a shift to provide proactive neighborhood patrol, conduct traffic enforcement and also address beat problems and issues. A 40% - 50% proactive time level is sufficient to provide blocks of time during most shifts to conduct targeted patrol and identified beat projects to address community issues. Proactive time levels above 50% often provide to much available time and can be a challenge for supervisors to keep Officers busy with meaningful work and engaged in the job. The project team has recommended La Quinta target an overall “proactive” time level of 45% for the community. Proactive Time in 2016 140 and 135 daily patrol hours (6 months each) resulted in an overall average proactive time of 52%. 135 daily hours all year would have equaled 51% proactive time. 0-4 AM 4-8 AM 8 AM -12 PM 12-4 PM 4-8 PM 8-Midnt. Avg. Committed 35.5% 19.8% 65.8% 52.2% 83.4% 41.3%48.1% Proactive 64.5% 80.2% 34.2% 47.8% 16.6% 58.7%51.9% 0-4 AM 4-8 AM 8 AM -12 PM 12-4 PM 4-8 PM 8-Midnt. Avg. Committed 36.2% 20.2% 67.1% 53.2% 85.0%42.1%49.1% Proactive 63.8% 79.8% 32.9% 46.8% 15.0%57.9%50.9% 6/7/2017 13 Proactive Time at 130 Daily Patrol Hours 135 daily patrol hours (all 12 months) results in an overall average proactive time level of 51% at the 2016 workload level. Adding a 2% increase in Patrol workload for 2017 and reducing to 130 daily patrol hours will result in an overall “proactive time” level of approximately 48% as shown below (with a starting time of 0700 for dayshift). 0-4 AM 4-8 AM 8-12 12-4 PM 4-8 PM 8-Midnt. Avg. Committed 38.5% 26.6% 71.4% 56.6% 71.0% 44.7%52.2% Proactive 61.5% 73.4% 28.6% 43.4% 29.0% 55.3%47.8% Changes that Will Impact Patrol Operations There are several items that have occurred may impact Patrol Officers’ workload: False Alarm Ordinance – implementation of this ordinance will reduce the number of responses to these calls (3,497 in 2016); there has been a 4% reduction in the first 5 months of 2017. Implementation of Racial and Identity Profiling Act (AB 953) that will require documentation by Officers of stops. Body Worn Cameras – will require additional administrative time of Officers (a minimum of 5 minutes per Officer per shift). SROs – reduction of 2 SROs will result in more calls for Patrol. 6/7/2017 14 Contract and Cost Items La Quinta contracts for 135 patrol hours daily but there are exigent circumstances (e.g. an Officer calls in sick on short notice) where OT is required to meet the 135 hours. On days when full staffing cannot be met the RCSD will credit La Quinta for the hours and not overstaff on a subsequent day. Officers working out of the Thermal Substation appropriately share field resources to handle emergencies, to ensure Officer safety and other exigent circumstances. The entity is charged when receiving extra services. Contract and Cost Items (2) When LQPD Officers respond to Coachella or to an unincorporated area the Officers track their time out of the City and the RCSD credits La Quinta when it is more than 60 minutes per Officer per shift (a reasonable change from the previous 30 minutes per call). The call for service and self-initiated workload of the CSOs is low but may not be captured entirely by the CAD system. La Quinta should work with the RCSD to ensure the field CSOs are effectively and fully utilized. 6/7/2017 15 Contract and Cost Items (3) Detective staffing is a fixed ratio of 6.06 Detectives per ‘supported’ LQPD position (27.7 supported positions). Formula results in 4.6 Detectives and La Quinta only needs 3 This formula is arbitrary and should be based on workload level A change in methodology can only be made at the upper levels of the Sheriff’s Department There are currently 10 Detectives at the Thermal Substation and La Quinta is currently paying for 4.6 (46%) while only generating 20% of the cases assigned (2015 study). The allocation of costs should be equitable between La Quinta, Coachella and the County. Recommendations Continue to target an overall 45% proactive time level for Patrol Officers. Reduce the daily patrol staffing to 130 hours to move closer to a 45% proactive time target. La Quinta should work with the RCSD upper management to establish an equitable cost sharing plan. La Quinta should work with the RCSD upper management to determine the number of Detectives needed based on workload rather than an arbitrary staffing formula. 6/7/2017 16 Joint City Council/Housing Authority Meeting June 6, 2017 SS2 – 2017/18 Budget Forecast 6/7/2017 17 Third Budget Study Session Goals •Housing Authority Update •General Fund Update •Unappropriated Measure G  Funds Housing Authority Budget  •3 funding sources for  2017/18 •Proposed Washington  Street Apartment’s  –Construction  –Rehabilitation  –Resident Relocation  Plan 6/7/2017 18 Housing Revenue & Expenses •HA Fund balance is  $10.6 million •One‐time expenses  total $115,000 –Legal Services –Building Improvements Housing Authority Fund 919,000$ Revenue (1,192,100)$ Expenses (273,100)$ Shortfall Housing Bond Proceeds 2004 1,704,900$ 2011 9,400,000$ 11,104,900$ General Fund  Summary Update GeneralFundFY2017/18 Revenue $ 48,551,600 Less Measure G (5,700,000) Operating Revenue 42,851,600 Less Operating Expenses (42,891,200) Budget Surplus/(Deficit)$ (39,600) 6/7/2017 19 General Fund Budget Updates Total  of Considerations •Police contract adjustments totaled $687,000 Operating Deficit May 2nd Deficit ($196,500) SilverRock Increase ($34,000) May 16th Deficit ($230,500) Brew in LQ  Adjustment $ 5,000 Police Contract Adjustment $ 687,000 Staffing Adjustments ($214,200) Marketing ($150,000) Community Programs ($100,000) Brew in LQ  Event ($20,000) Payroll  Update from recruitments ($16,900) June 6th Deficit ($39,600) 6/7/2017 20 Unappropriated Measure G Funds 2016/17 1,000,000$ 2017/18 730,500$ 1,730,500$ 6-6-17 Budget Deficit 36,900$ Budget Surplus 63,100$ Measure G Allocation 100,000$ Law Enforcement Fund 1,630,500$ Discussion & Direction 6/7/2017 21 Joint City Council/Housing Authority June 6, 2017 PH1 - Adopt a Resolution Approving AHPDA and Summary Report 6/7/2017 22 PROPOSED DEVELOPMENT •Former Redevelopment Agency •2007 & 2008 Purchase USDA/RD conditions –Reconstruct existing 72 new units –Americans with Disabilities Act (ADA) Compliant PROPOSED DEVELOPMENT •Entitlements –72 re-constructed & 68 new units –2 new commons –New utility infrastructure –Extended sound wall/ gated community –Covered parking and new hardscape 6/7/2017 23 PROPOSED DEVELOPMENT AFFORDABILITY MIX Income Category Number of Persons 12 24 Extremely Low $14,100 $16,100 110 Very Low 23,450 26,800 4 Low 37,550 42,900 2 Moderate 54,600 62,400 6/7/2017 24 AGENCY LOAN DETAIL (A) Existing Apartments 73 Units $3,325,252 Reserves from Existing Apartments 1,073,036 Adjacent Vacant Land Parcel 1,260,000 2016 Housing Bonds 9,400,000 TOTAL LOAN (A) $15,058,288 AGENCY LOAN  DETAIL (B) Authority work completed $1,366,722 2014 Housing Bonds 1,000,000 TOTAL “PLAN LOAN” (B) $2,366,722 6/7/2017 25 TOTAL  AGENCY LOAN  DETAIL Total Loan (A) $15,058,288 Total “Plan Loan” (B)$2,366,722 TOTAL AUTHORITY LOAN (A+B) $17,425,010 AGENCY COSTS Apartments/ Vacant Land (acquisition costs) $8,783,738 Planning, Design, Engineering, Management, Relocation, Disposition 2,362,057 2014 and 2016 Bond Proceeds 10,400,000 Interest 2014 and 2016 Bonds 9,417,123 TOTAL COST $30,962,918 6/7/2017 26 SOURCES Existing USDA 515 Loan $628,640 Plan Loan 2,366,722 Property and Construction Loan 15,058,288 Tax Credit Equity 28,908,896 Deferred Developer Fee/ GP Equity $7,526 TOTAL SOURCES $46,970,072 USE OF FUNDSAcquisition Cost $6,785,000 Rehabilitation Costs 12,601,042 New Construction Costs 15,244,823 Architectural Costs 628,925 Survey/Engineering including Testing 340,000 Construction Interest and Fees 1,879,263 Permanent Financing Costs 30,000 Attorney Costs 75,000 Reserve Costs 1,073,036 Appraisal Costs 10,000 Construction Contingency Costs 4,044,691 Permits, Fees, Relocation Costs 2,768,292 Developer Fee 1,400,000 Syndication Costs $90,000 TOTAL SOURCES $46,970,072 6/7/2017 27 City Council Meeting June 6, 2017 PH2 – La Paloma Time Extension 6/7/2017 28 Background •Approved in 2004 •208-unit senior community •May 16, 2017 Council requested 6 month extension •Applicant requests 7th time extension to expire November 3, 2018 Site 6/7/2017 29 Project Site Plan Project Site Plan 6/7/2017 30 Conditions of Approval •Revisions: –additional westbound through-lane at Washington Street/Avenue 50 and dual left turn lanes –Eliminate perimeter landscape turf –Allow for a time extension to December 6, 2017