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1999 06 29 CCiu" . Y� P.O. Box 1504 i...,:1982 1 78-495 CALLS TAMPICO LA QuINFA, CALIFORNIA 92253 NOTICE OF SPECIAL MEETING OF THE LA QUINTA CITY COUNCIL AND LA QUINTA FINANCING AUTHORITY TUESDAY, JUNE 29, 1999 1:30 PM (760) 7 7 7 - 7 0 0 0 (TDD) (760) 777-] 227 NOTICE IS HEREBY GIVEN THAT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 54956, I, JOHN J. PENA, MAYOR OF THE CITY OF LA QUINTA, DO HEREBY CALL A SPECIAL MEETING OF THE LA QUINTA CITY COUNCIL FOR 1 :30 PM ON TUESDAY, JUNE 29, 1999. SAID MEETING WILL BE CALLED TO ORDER AND HELD IN THE CITY COUNCIL CHAMBER, 78-495 CALLE TAMPICO, LA QUINTA, CALIFORNIA. Dated: June 25, 1999 n JOHN J. VENA, M Y R City of La Quinta, California DECLARATION OF POSTING I, Saundra L. Juhola, City Clerk of the City of La Quinta, California, do hereby declare that the foregoing notice for the Special Meeting of the La Quinta City Council of June 29, 1999 was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and faxed to the news media on Friday, June 25, 1999, Datled: June 25, 1999 VAUNDRA L. JUHOLK, City Clerk City of La Quinta, California 9J / ►ram �a�� •c9 Tdy QuMM U GF OF La Quinta City Council SPECIAL MEETING Agenda City Council Chamber 78-495 Calle Tampico La Quinta, California 92253 June 29, 1999 1:30 PM CALL TO ORDER a. Pledge of Allegiance b. Roll Call PUBLIC COMMENT CONFIRMATION OF AGENDA CLOSED SESSION Beginning Reso. No. 99-82 EVALUATION OF COUNCIL -APPOINTED POSITION - CITY MANAGER, PURSUANT TO GOVERNMENT CODE SECTION 54956.6. 2. CONFERENCE WITH CITY'S REAL PROPERTY NEGOTIATOR, MARK WEISS, CONCERNING PROPERTY LOCATED CITY-WIDE, AND TERMS OF TRANSFER OF CABLE TELEVISION FRANCHISE RELATING THERETO PURSUANT TO GOVERNMENT CODE SECTION 54956.8. PROPERTY OWNER/NEGOTIATOR: MEDIAONE/TIME WARNER. 0C.)4 CONSENT CALENDAR - None BUSINESS SESSION 1 . CONSIDERATION OF ADOPTION OF THE INVESTMENT POLICY FOR FISCAL YEAR 1999/2000. A) RESOLUTION ACTION. 2. CONSIDERATION OF AWARD OF CONTRACT FOR CONSTRUCTION OF JEFFERSON STREET IMPROVEMENTS FROM AVENUE 54 TO HIGHWAY 1 1 1 - PROJECT NO. 99-05. A) MINUTE ORDER ACTION. 3. CONSIDERATION OF A REPORT ON CABLE TELEVISION FRANCHISE TRANSFER AGREEMENT. A) MINUTE ORDER ACTION. 4. CONSIDERATION OF APPOINTMENTS TO THE ARCHITECTURAL AND LANDSCAPING REVIEW COMMITTEE; COMMUNITY SERVICES COMMISSION, CULTURAL ARTS COMMISSION, AND PLANNING COMMISSION. A) MINUTE ORDER ACTION. STUDY SESSION DISCUSSION REGARDING THE CIVIC CENTER MASTER PLAN CONCEPTS. MAYOR AND COUNCIL MEMBER ITEMS ADJOURNMENT 003 �T a, U rF, ems, OF AGENDA CATEGORY: BUSINESS SESSION: T COUNCIL/RDA MEETING DATE: June 29, 1999 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Consideration of a Resolution of the City PUBLIC HEARING: Council of the City of La Quinta, California Adopting the Investment Policy of the City of La Quinta for Fiscal Year 1999/2000 RECOMMENDATION: Approve a Resolution of the City Council of the City of La Quinta, California adopting the Investment Policy of the City of La Quinta for Fiscal Year 1999/2000. FISCAL IMPLICATIONS: None BACKGROUND AND OVERVIEW: SB564 imposes certain reporting requirements on state and local agencies. Specifically, the bill requires, in part, that the treasurer of a local agency submit an annual statement of investment policy to the legislative body. As a result of this reporting requirement, in March of 1999, the Investment Advisory Board (IAB) began the process of updating the City's Investment Policy to conform with this legislative requirement. On June 16, 1999, the Investment Advisory Board met with the City Manager, City Attorney (via telephone) and City Treasurer to review the proposed Investment Policy. The proposed Investment Policy redline form is included as Attachment 1. At their June 16th meeting, the IAB voted, by a 4-1-1 vote (Ayes: Board Members Lewis, Mahfoud, Osborne and Chairman Irwin, Noes: Board Member Moulin, Absent: Board Member Bulgrin), to submit the proposed Investment Policy to the City Council for consideration. The Investment Advisory Board has spent the last four months working on the City Investment Policy. MY The general purpose of the City's Investment Policy is to provide the rules and standards the City must follow when investing the City of La Quinta's public funds. It is the policy of the City of La Quinta to invest all public funds in a manner which will provide a diversified portfolio with maximum security while meeting daily cash flow demands and the highest investment return in conformity with all State and local statutes. This Policy applies to all cash and investments of the City of La Quinta, La Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter referred to as the "City". The primary objectives, in order of priority, of the City of La Quinta's investment activity shall be: • Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. • The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. • The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. • Within the constraints of safety, liquidity and yield, the City will endeavor to maintain a diversified portfolio by allocating assets between different types of investments within policy limitations. It is understood that all investments shall be made with judgment and care, under circumstances then prevailing, by persons with prudence, discretion, and intelligence acting as they would in the management of their own affairs, not for speculation, but for investment, as well as considering the probable safety of their capital and the probable income to be derived. As noted in the policy, authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The Treasurer is required to establish and implement a system of internal controls to maintain the safety of the portfolio. The internal control system will also insure the timely preparation and accurate reporting of the portfolio financial information. As part of the annual audit of the City of La Quinta's financial statements, the independent auditor reviews the adequacy of those controls and advises the City if weaknesses are found. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1 Approve the Resolution of the City Council of the City of La Quinta adopting the Investment Policy for Fiscal Year 1999/2000; or 2. Approve the Resolution of the City Council of the City of La Quinta with changes adopting the Investment Policy for Fiscal Year 1999/2000; or 3. Do not approve the Resolution of the City Council of the City of La Quinta adopting the Investment Policy for Fiscal Year 1999/2000; or 4. Provide staff with alternative direction. Respectfully submitted, John M. Falconer Finance Director/Treasurer Approved for Submission by: ,f C� i G Z,—� L,c_ Thomas P. Genovese City Manager Attachments: 1. Redline Copy of Proposed Investment Policy 0 RESOLUTION NO. 99 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA APPROVING AND ADOPTING THE AMENDED INVESTMENT POLICY FOR FISCAL YEAR 1999/2000 WHEREAS, the general purpose of the Investment Policy is to provide the rules and standards users must follow in investing funds of the City of La Quinta; and WHEREAS, the primary objectives, in order of priority, of the City of La Quinta's investment activity shall be: Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The investment portfolio shall remain sufficiently li uid to meet all operating requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. WHEREAS, authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy; and WHEREAS, the Investment Policy will be adopted before the end of June of each year and amended as considered necessary; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta to adopt the 1999/2000 Fiscal Year Investment Policy (Exhibit A). PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council, held on this day of 1999 by the following vote, to wit: AYES: NOES: ABSTAIN: ABSENT: JOHN J. PENA, Mayor City of La Quinta, California ATTEST: SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: DAWN HONEYWELL, City Attorney City of La Quinta, California CITY OF LA QUINTA Investment Policy Table of Contents Section Topic Pale Executive Summary 2 1 General Purpose 5 II Investment Policy 5 III Scope 5 IV Objectives 6 ► Safety ► Liquidity ► Yield ► Diversified Portfolio V Prudence 7 VI Delegation of Authority 7 VII Conflict of Interest 8 Vill Authorized Financial Dealers and Institutions 8 ► Broker/Dealers ► Financial Institutions IX Authorized Investments and Limitations 10 Investment Pools 14 XI Safekeeping and Custody 14 XII Interest Earning Distribution Policy 15 XIII Internal Controls and Independent Auditors 15 XIV Benchmark 17 XV Reporting Standards 17 XVI Investment of Bond Proceeds 18 XVII Investment Advisory Board - City of La Quinta 18 XVIII Investment Policy Adoption 19 Appendices: A. Summary of Authorized Investments and Limitations 20 B. Municipal Code Ordinance 2.70 - Investment Advisory Board 21 C. Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 22 D. Segregation of Major Investment Responsibilities 24 E. Listing of Approved Financial Institutions 25 F. Broker/Dealer Questionnaire and Certification 26 G. Investment Pool Questionnaire 27 H. Glossary 35 City of La Quinta Investment Policy Executive Summary The general purpose of this Investment Policy is to provide the rules and standards users must follow in investing funds of the City of La Quinta. It is the policy of the City of La Quinta to invest all public funds in a manner which will provide a diversified portfolio with maximum security while meeting daily cash flow demands and the highest investment return in conformity to all state and local statutes. This Policy applies to all cash and investments of the City of La Quinta, La Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter referred in this document as the "City". The primary objectives, in order of priority, of the City of La Quinta's investment activity shall be: Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Within the constraints of safety, liquidity and yield, the City will endeavor to maintain a diversified portfolio by allocating assets between different types of investments within policy limitations. Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The Treasurer shall establish and implement a system of internal controls to maintain the 2 safety of the portfolio. In addition, the internal control system will also insure the timely preparation and accurate reporting of the portfolio financial information. As part of the annual audit of the City of La Quinta's financial statements the independent auditor reviews the adequacy of those controls and comments if weaknesses are found. Investment responsibilities carry added duties of insuring that investments are made without improper influence or the appearance to a reasonable person of questionable or improper influence. The City of La Quinta Investment Policy maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions selected by the Treasurer to provide investment services will be approved by the City Manager subject to City Council approval. The Treasurer will be permitted to invest only in City approved investments up to the maximum allowable percentages and, where applicable, through the bid process requirements. Authorized investment vehicles and related maximum portfolio positions are listed in Appendix A - Summary of Authorized Investments and Limitations At least two bids will be required of investments in the authorized investment vehicles. Collateral ization will be required for Certificates of Deposits in excess of $100,000. Collateral will always be held by an independent third party from the institution that sells the Certificates of Deposit to the City. Evidence of compliance with State Collateralization policies must be supplied to the City and retained by the City Treasurer. The City of La Quinta Investment Policy shall require that each individual investment have a maximum maturity of two years unless specific approval is authorized by the City Council. In addition, the City's investment in the State Local Agency Investment Fund (LAIF) is allowable as long as the average maturity does not exceed two years, unless specific approval is authorized by the City Council. The City's investment in Money Market Mutual funds is allowable as long as the average maturity does not exceed 60 days. The City of La Quinta Investment Policy will use the six month U.S. Treasury Bill as a benchmark when measuring the performance of the investment portfolio. The Investment Policies shall be adopted by resolution of the La Quinta City Council on an annual basis, The Investment Policies will be adopted before the end of June of each year. This Executive Summary is an overall review of the City of La Quinta Investment Policies. Reading this summary does not constitute a complete review which can only be accomplished by reviewing all the pages. 4 0L2 P.O. Box 1504 78-495 CALLS TAMPICO LA QUINTA, CALIFORNIA 92253 City of La Quinta Statement of Investment Policy July 1, 1999 through June 30, 2000 Adopted by the City Council on June 29, 1999 GENERAL PURPOSE (760) 7 7 7 - 7 0 0 0 (TDD) (760) 777-1227 The general purpose of this document is to provide the rules and standards users must follow in administering the City of La Quinta cash investments. II INVESTMENT POLICY It is the policy of the City of La Quinta to invest public funds in a manner which will provide a diversified portfolio with safety of principal as the primary objective while meeting daily cash flow demands with the highest investment return. In addition, the Investment Policy will conform to all State and local statutes governing the investment of public funds. III SCOPE This Investment Policy applies to all cash and investments of the City of La Quinta, City of La Quinta Redevelopment Agency and the City of La Quinta Financing Authority, hereafter referred in this document as the "City". These funds are reported in the City of La Quinta Comprehensive Annual financial Report (CAFR) and include: All funds within the following fund types: ► General ► Special Revenue ► Capital Projects ► Debt Service ► Internal Service ► Trust and Agency 5 IV OBJECTIVES The primary objective, in order of priority, of the City of La Quinta's investment activity shall be: 1. Safety Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio in accordance with the permitted investments. The objective will be to mitigate credit risk and interest rate risk. A. Credit Risk Credit Risk - is the risk of loss due to the failure of the security issuer or backer. Credit risk may be mitigated by: ► Limiting investments to the safest types of securities; ► Pre -qualifying the financial institutions, and broker/dealers, which the City of La Quinta will do business; and ► Diversifying the investment portfolio so that potential losses on individual securities will be minimized. B. Interest Rate Risk Interest Rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may be mitigated by: ► Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and ► By investing operating funds primarily in shorter -term securities. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore since all possible cash demands cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. 6 a 1 14 3. Yield The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: ► A declining credit security could be sold early to minimize loss of principal; ► Liquidity needs of the portfolio require that the security be sold. 4. Diversified Portfolio Within the constraints of safety, liquidity and yield, the City will endeavor to maintain a diversified portfolio by allocating assets between different types of investments within policy limitations. V PRUDENCE The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate Code Sections 16045 through 16054.. Section 16053 sets forth the terms of a prudent person which are as follows: Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence excerise in the professional management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. VI DELEGATION OF AUTHORITY Authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of 7 authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager or Assistant City Manager shall approve in writing all purchases and sales of investments prior to their execution by the City Treasurer. VII CONFLICT OF INTEREST Investment responsibilities carry added duties of insuring that investments are made without improper influence or the appearance of improper influence. Therefore, the City Manager, Assistant City Manager, and the City Treasurer shall adhere to the State of California Code of Economic Interest and to the following: ► The City Manager, Assistant City Manager, and the City Treasurer shall not personally or through a close relative maintain any accounts, interest, or private dealings with any firm with which the City places investments, with the exception of regular savings, checking and money market accounts, or other similar transactions that are offered on a non-negotiable basis to the general public. Such accounts shall be disclosed annually to the City Clerk in conjunction with annual disclosure statements of economic interest. ► All persons authorized to place or approve investments shall report to the City Clerk kinship relations with principal employees of firms with which the City places investments. VIII AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City of La Quinta Investment Policy maintains a listing of financial institutions which are approved for investment purposes. In addition a list will also be maintained of approved broker/dealers selected by credit worthiness, who maintain an office in the State of California. 1 . Broker/Dealers who desire to become bidders for investment transactions must supply the City of La Quinta with the following: ► Current audited financial statements ► Proof of National Association of Security Dealers Certification ► Trading resolution ► Proof of California registration 016 ► Resume of Financial broker ► Completion of the City of La Quinta Broker/Dealer questionnaire which contains a certification of having read the City of La Quinta Investment Policy The City Treasurer shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and individual conducting investment related business. The City Treasurer will also contact the following agencies during the verification process: ► National Association of Security Dealer's Public Disclosure Report File - 1-800-289-9999 ► State of California Department of Corporations 1-916-445-3062 All Broker/Dealers selected by the City Treasurer to provide investment services will be approved by the City Manager subject to City Council approval. The City Attorney will perform a legal review of the trading resolution/investment contract submitted by each Broker/Dealer. Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment: A. Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC) B. Collateral - The amount of City of La Quinta deposits or investments not insured by the FDIC -shall be 1 10% collateralized by securities' or 150% mortgages' market values of that amount of invested funds plus unpaid interest earnings. C. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Annual Call Report. 9 The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateral ization in public monies. IX AUTHORIZED INVESTMENTS AND LIMITATIONS The City Treasurer will be permitted to invest in the investments summarized in the Appendix A. STATE OF CALIFORNIA AND CITY OF LA QUINTA LIMITATIONS As provided in Sections 16429.1, 53601, 53601 .1, and 53649 of the Government Code, the State of California limits the investment vehicles available to local agencies as summarized in the following paragraphs. Section 53601, as now amended, provides that unless Section 53601 specifies a limitation on an investment's maturity, no investments with maturities exceeding five years shall be made. The City of La Quinta Investment Policy has specified that no investment may exceed two years. State Treasurer's Local Agency Investment Fund (LAIF - As authorized in Government Code Section 16429.1 and by LAIF procedures, local government agencies are each authorized to invest a maximum of $30 million per account in this investment program administered by the California State Treasurer. The City's investment in the State Local Agency Investment Fund (LAIF) is allowable as long as the average maturity of its investment portfolio does not exceed two years, unless specific approval is authorized by the City Council. The City of La Quinta has two accounts with LAIF. The City of La Quinta Investment Policy has a limitation of 35% of the portfolio. U.S. Government and Related Issues - As authorized in Government Code Sections 53601 (a) through (n) as they pertain to surplus funds, this category includes a wide variety of government securities which include the following: • Local government bonds or other indebtedness and State bonds or other indebtedness. The City of La Quinta Investment Policy does not allow investments in local and state indebtedness • U.S. Treasury bills, notes and bonds directly issued and backed by the full faith and credit of the U.S. Government. The City of La Quinta Investment Policy limits investments in U.S. Treasury issues to 75% of the portfolio. 10 JfQ • U.S. Government agencies issuing securities backed as to principal and interest by the full faith and credit of the U.S. Government. Government National Mortgage Association (GNMA) is such an agency. The City of La Quinta Investment Policy has a limitation of 75% of the portfolio with a single issuer limit of 25% of the portfolio. • U.S. Government instrumentalities and agencies issuing securities not backed as to principal and interest by the full faith and credit of the U.S. Government. The Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit Bank (FICB) are such issuers. The City of La Quinta Investment Policy has a limitation of 75% of the portfolio with a single issuer limit of 25% of the portfolio. • Federal government sponsored enterprises (GSEs) issuing securities not backed as to principal and interest by the full faith and credit of the U.S. Government. These GSEs include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHMC) and Student Loan Marketing Association (SLMA) which are publicly owned. The City of La Quinta Investment Policy has a limitation of 75% of the portfolio with a single issuer limit of 25% of the portfolio. Bankers' Acceptances - As authorized in Government Code Section 53601 (f), 40% of the portfolio may be invested in Bankers' Acceptances, although no more than 30% of the portfolio may be invested in Bankers' Acceptances with any one commercial bank. Additionally, the maturity period cannot exceed 270 days; however, Bankers' Acceptances are seldom marketed with maturities in excess of 180 days. The City of La Quinta Investment Policy does not allow investment in Bankers' Acceptances. Commercial Paper - As authorized in Government Code Section 53601 (g), 15% of the portfolio may be invested in commercial paper of the highest rating (A-1 or P-1) as rated by Moody's or Standard and Poor's, with maturities not to exceed 180 days. This percentage may be increased to 30% if the dollar weighted average maturity does not exceed 31 days. The City of La Quinta Investment Policy only allows investments in commercial paper to 30% of the portfolio with a maximum maturity of 30 days per issue. There are a number of other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of the investment. The City of La Quinta Investment Policy also limits Commercial Paper to no more than $1 million dollars in any one entity at any time for no more than 30 days. Negotiable Certificates of Deposit - As authorized in Government Code Section 53601 (h), 30% of the portfolio may be invested in negotiable certificates of deposit issued by commercial banks and savings and loan associations. The City of La Quinta Investment Policy does not allow investment in Negotiable Certificates of Deposit. Repurchase and Reverse Repurchase Agreements - As authorized in Government Code Section 53601 (i), these investment vehicles are agreements between the local agency and seller for the purchase of government securities to be resold at a specific date and for a specific amount. Repurchase agreements are generally used for short term investments varying from one day to two weeks. There is no legal limitation on the amount of the repurchase agreement. However, the maturity period cannot exceed one year. The market value of securities underlying a repurchase agreement shall a at least 102% of the funds invested and shall be valued at least quarterly. The City of La Quinta Investment Policy does not allow investment in Repurchase Agreements. The term "reverse repurchase agreement" means the sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase such securities on or before a specific date and for a specific amount. As provided in Government Code Section 53635, reverse repurchase agreements require the prior approval of the City Council. The City of La Quinta Investment Policy does not allow investment in Reverse Repurchase Agreements. Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies may invest in corporate notes for a maximum period of five years in an amount not to exceed 30% of the agency's portfolio. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City of La Quinta Investment Policy does not allow investment in corporate notes. Diversified Management Companies - As authorized in Government Code Section 53601 (k►, local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the 12 ,. Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). The City of La Quinta Investment Policy only allows investments in mutual funds that are money market funds maintaining a par value of $1 per share that invests in direct issues of the U. S. Treasury with an average maturity of their portfolio not exceeding 60 days and the City limits such investments to 20% of the portfolio. Mortgage -Backed Securities - As authorized in Government code Section 53601(n), local agencies may invest in mortgage -backed securities such as mortgage pass -through securities and collateralized mortgage obligations for a maximum period of five years in an amount not to exceed 20% of the agency's portfolio. Securities eligible for investment shall have a "A" or higher rating. The City of La Quinta Investment Policy does not allow investment in Mortgage - Backed Securities. Financial Futures and Financial Option Contracts - As authorized in Government Code Section 53601 .1 , local agencies may invest in financial futures or option contracts in any of the above investment categories subject to the same overall portfolio limitations. The City of La Quinta Investment Policy does not allow investments in financial futures and financial option contracts. Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of Deposit are fixed term investments which are required to be collateralized from 1 10% to 150% depending on the specific security pledged as collateral in accordance with Government Code Section 53652. There are no portfolio limits on the amount or maturity for this investment vehicle. Collateral ization will be required for Certificates of Deposits in excess of the FDIC insured amount. The type of collateral is limited to City authorized investments. Collateral will always be held by an independent third party from the institution that sells the Certificates of Deposit to the City. Evidence of compliance with State Collateral ization policies must be supplied to the City and retained by the City Treasurer as follows: 1 . Certificates of Deposits Insured by the FDIC. The City Treasurer may waive collateral ization of a deposit that is federally insured. 13 2. Certificates of Deposit in excess of FDIC Limits The amount not federally insured shall be 110% collateralized by securities or 150% mortgages market value of that amount of invested funds plus unpaid interest earnings. The City of La Quinta Investment Policy limits the percentage of Certificates of Deposit to 60% of the portfolio. Sweep Accounts - As authorized by the City Council, a U.S. Treasury Money Market Sweep Account with a $50,000 target balance may be maintained in conjunction with the checking account. Derivatives - The City of La Quinta Investment Policy does not allow investment in derivatives. X INVESTMENT POOLS There are three (3) types of investment pools: 1) state -run pools, 2) pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee i.e. County Pool; and 3) pools that are operated for profit by third parties. The City of La Quinta Investment Policy has authorized investment with the State of California's Treasurers Office Local Agency Investment Fund commonly referred to as LAIF. LAIF was organized in 1977 through State Legislation Section 16429.1, 2 and 3. Each LAIF account is restricted to a maximum investable limit of $30 million. In addition, LAIF will provide quarterly market value information to the City of La Quinta. On an annual basis the City Treasurer will submit the Investment Pool Questionnaire to LAIF. Also, prior to opening any new Investment Pool account, which would require City Council approval, the City Treasurer will require the completion of the Investment Pool Questionnaire. The City does not allow investments with any other Investment Pool - County Pools or Third Party Pools. XI SAFEKEEPING AND CUSTODY All security transactions of the City of La Quinta Investment Policy shall be conducted on a delivery - versus - payment (DVP) basis. Securities will be held by a third party custodian designated by the City Treasurer and evidenced by safekeeping receipts. Deposits and withdrawals of money market mutual funds and LAIF shall be made 14 directly to the entity and not to an investment advisor, broker or dealer, Money market mutual funds and LAIF shall also operate on a DVP basis to be considered for investment. XII INTEREST EARNING DISTRIBUTION POLICY Interest earnings is generated from pooled investments and specific investments. 1 . Pooled Investments - It is the general policy of the City to pool all available operating cash of the City of La Quinta, La Quinta Redevelopment Agency and La Quinta Financing Authority and allocate interest earnings, in the following order, as follows: A. Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. B. Payment to the General Fund of a management fee equal to 5 % of the annual pooled cash fund investment earnings. C. Payment to each fund of an amount based on the average computerized daily cash balance included in the common portfolio for the earning period. 2. Specific Investments - Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIII INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► The orderly and efficient conduct of its business, including adherence to management policies; ► Prevention or detection of errors and fraud; ► The accuracy and completeness of accounting records; and, ► Timely preparation of reliable financial information. 15 r.i � While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: a. Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. b. Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. C. Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. d. Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. e. Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. f. Written confirmation or telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up. 16 g. Development of a wire transfer agreement with the City's bank and third panty - custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The System of Internal Controls developed by the City, shall be reviewed annually by the independent auditor in connection with the annual audit of the City of La Quinta's Financial Statements. The independent auditor's management letter comments pertaining to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The management letter comments pertaining to cash and investment activities and the City Treasurer's response shall be provided to the City's Investment Advisory Board for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Investment Advisory Board and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. XIV BENCHMARK The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles commensurate with the investment risk constraints and the cash flow needs of the City. Return on investment is of least importance compared to safety and liquidity objectives. The City of La Quinta Investment Policy will use the six month U.S. Treasury Bill as a benchmark when measuring the performance of the investment portfolio. XV REPORTING STANDARDS SB564 section 3 requires a quarterly report to the Legislative Body of Investment activities. The City of La Quinta Investment Advisory Board has elected to report the investment activities to the City Council on a monthly basis through the Treasurers Report. The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment Advisory Board that includes all cash and investments under the authority of the Treasurer. 17 02 The Treasurers Report shall summarize cash and investment activity and changes in balances and include the following: ► A certification by City Treasurer; ► A listing of Purchases and sales/maturities of investments; ► Cash and Investments categorized by authorized investments, except for LAIF which will be provided quarterly and show yield and maturity; ► Comparison of month end actual holdings to Investment Policy limitations; ► Current year and prior year monthly history of cash and investments for trend analysis; ► Balance Sheet; ► Distribution of cash and investment balances by fund; ► A comparison of actual and surplus funds; ► A year to date historical cash flow analysis and projection for the next six months. XVI INVESTMENT OF BOND PROCEEDS The City's Investment Policy shall govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's Investment Policy. Arbitrage Requirement The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. This arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the new arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. XVII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA The Investment Advisory Board (IAB) consists of seven members of the community that have been appointed by and report to the City Council. The IAB usually meets on a monthly basis, but at least quarterly to 1) review account statements and verifications to ensure accurate reporting as they relate to an investment activity, 2) monitor compliance with existing Investment Policy and Procedures, and 3) review 18}% and make recommendations concerning Investment Policy and procedures, investment contracts and investment consultants. The appendices include City of La Quinta Ordinance 2.70 entitled Investment Advisory Board Provisions. XVIII INVESTMENT POLICY ADOPTION On an annual basis, the Investment policies will be initially reviewed by the Investment Advisory Board and the City Treasurer. The Investment Advisory Board will forward the Investment policies, with any revisions, to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City Treasurer to review the Investment policies and comments, prior to submission to the City Council for their consideration. The Investment Policies shall be adopted by resolution of the City of La Quinta City Council on an annual basis. The Investment Policies will be adopted before the end of June of each year. 017 19 Appendix A E oN mo� 0 o� a0 m c 0 - N O Q U 'ifn. C N N J N N fl_fl_ a' ,O _ OC E O O O O 0 0 o m O H3 3 of � 2 y_O, - x LL r o O r' o'�. O r o ° r o O a O c o a O m 0. 0 o LL ml- o ',o io o o 'o a _R o o to o o c.. _. E 'o o '.c. r r r o w CL 0 o c J p U � N N 0 6 o 6 L o m > JU) U O N_ E O, C N O N 4' a o U C p. 0 U' 0 o m V C s 5 N LJ E w O N a c O C C Q m U N m J Q J T ❑. i� � c LL LF N C �OpLL CO d O � o o N`oo LLm'. d a m o -H a m m U o 0 o - Q ° m o LL 00 3 ca 'Q U o '- E "� O'. >• C L 4l O O 0 S ° m Y _y ca m c m m m m m m 0 0 U. i C O N N. N U a m L N N (n O(.�www LL U-LL o E c D N N Q E o c m w m coi U-OZDc o � � U O C (0 J Y �mLLma��m0rt m c E H c 0 m E N N N O O oN" m oom� Q m � � O J Po N N N C O N 0 .^J Y p a Dj E« dN O � N U > C j C N C.o C N O O - o t0 NO «� L LQN O 3 c N 0 0> E� m.o E.�aoQ y �Loc� h U En N O Qo. EmC�m O all Appendix B Chapter 2.70 INVESTMENT ADVISORY BOARD PROVISIONS Sections: 2.70.010 General Rules Regarding Appointment. 2.70.020 Board meetings. 2.70.030 Board functions. 2.70.010 General rules regarding appointment A. Except as set out below, see Chapter 2.06 for General Provisions. B. The Investment Advisory Board (the "board") is a standing board composed of seven (7) members from the public that are appointed by city council. La Quinta residency is preferred, but not a requirement for board members. Recruitment for members may be advertised outside of the city". C. Background in the investment field and/or related experience is preferred. Background information will be required and potential candidates must agree to a background check and verification. D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the board. Such matters may include, but are not limited to, changes in employment, changes in residence, or changes in clients. 2.70.020 Board meetings. Initially, the Board should meet once a month, but this schedule may be extended to quarterly meetings upon the concurrence of the Board and the City Council. The specific meeting dates will be determined by the Board members and meetings may be called for on an as needed basis. 2.70.030 Board functions. A. The following are functions of the Board that are to be addressed at each meeting: (1) review account statements and verifications to ensure accurate reporting as they relate to an investment activity; (2) monitor compliance with existing Investment Policy and procedures; and (3) review and make recommendations concerning Investment Policy and procedures, investment contracts, and investment consultants. B. The Board will report to City Council after each meeting either in person or through correspondence at a regular City Council meeting. 21 Appendix C Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS Sections: 3.08.010 Investment of city moneys and deposit of securities. 3.08.020 Authorized investments. 3.08.030 Sales of securities. 3.08.040 City bonds. 3.08.050 Reports. 3.08.060 Deposits of securities. 3.08.070 Trust fund administration. 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607 and 53608 of the Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under any provision of state law relating to the investing of general city funds, including but not limited to Sections 53601 and 53635 of the Government Code, as said sections now read or may hereafter be amended, from moneys in his custody which are not required for the immediate necessities of the city and as he may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part), 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord. 2 § I (part), 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be canceled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 22 3.08.050 Reports. The city treasurer shall make a monthly report to the city council of all investments made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982) 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the terms of any state law, including but not limited to Section 53608 of the Government Code as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 2 § 1 (part), 1982 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 26524 of the Government code and any other applicable provisions of law. (Ord. 2 § 1 (part), 1982) 23 t Appendix D SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Responsibilities Develop formal Investment Policy City Treasurer Recommend modifications to Investment Policy Investment Advisory Board Review formal Investment Policy and recommend City Manager and City Council action City Attorney Adopt formal Investment Policy City Council Review Financial Institutions & Select Investments City Treasurer Approve investments City Manager or Assistant City Manager Execute investment transactions City Treasurer Confirm wires, if applicable City Manager or Accounting Manager Record investment transactions in City's accounting records Accounting Manager Investment verification - match broker confirmation to City investment records Account Technician Reconcile investment records - to accounting records and bank statements - to Treasurers Report of investments Account Technician Security of investments at City Vault Security of investments Outside City Third Party Custodian Review internal control procedures External Auditor 24 �_ Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1 . Banking Services - Wells Fargo Bank, Government Services, Ontario, California 2. Custodian Services - Bank of New York, Los Angeles, California 3. Deferred Compensation - International City/County Management Association Retirement Corporation 4. Broker/Dealer Services - Merrill Lynch, Indian Wells, CA Morgan Stanley Dean Witter, San Francisco, California Salomon Smith Barney, Newport Beach, CA 5. Government Pool - State of California Local Agency Investment Fund City of La Quinta Account La Quinta Redevelopment Agency 6. Bond Trustees - 1991 City Hall Revenue Bonds - US Bank 1991 RDA Project Area 1 - US Bank 1992 RDA Project Area 2 - US Bank 1994 RDA Project Area 1 - US Bank 1995 RDA Project Area 1 & 2 - US Bank Assessment Districts - US Bank No Changes to this listing may be made without City Council approval. �d 25 Appendix F BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1 . Name of Firm: 2. Address: 3. Telephone: ( ) ( ) 4. Broker's Representative to the City (attach resume): Name: Title: Telephone: ( ) 5. Manager/Partner-in-charge (attach resume): Name: Title: Telephone: 6. List all personnel who will be trading with or quoting securities to City employees (attach resume) Name: Title: Telephone: ( ) ( ) 7. Which of the above personnel have read the City's Investment Policy? 8. Which instruments are offered regularly by your local office? (Must equal 100%) % U.S. Treasuries % BA's % Commercial Paper % CD's % Mutual Funds % Agencies (specify): 26 • Repos • Reverse Repos % CMO's % Derivatives % Stocks/Equities % Other (specify): 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Contact Telephone Client Since Entity Contact Telephone Client Since 10. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. 1 1 . Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. 12. Has a client ever claimed in writing that you were responsible for an investment loss? Yes No If yes, please provide action taken Has a client ever claimed in writing that your firm was responsible for an investment loss? Yes No If yes, please provide action taken 27 ; Do you have any current, or pending complaints that are unreported to the NASD? Yes No If yes, please provide action taken Does your firm have any current, or pending complaints that are unreported to the NASD? Yes No If yes, please provide action taken 13. Explain your clearing and safekeeping procedures, custody and delivery process. Who audits these fiduciary responsibilities? Latest Audit Report Date 14. How many and what percentage of your transactions failed. Last month? % $ Last year? % $ 15. Describe the method your firm would use to establish capital trading limits for the City of La Quinta. 16. Is your firm a member in the S.I.P.C. insurance program. Yes No If yes, explain primary and excess coverage and carriers. 17. What portfolio information, if any, do you require from your clients? ------------ ---------- ------------ ---------------------------------- 2 8 Q� 18. What reports and transaction confirmations or any other research publications will the City receive? 19. Does your firm offer investment training to your clients? Yes No 20. Does your firm have professional liability insurance. Yes No If yes, please provide the insurance carrier, limits and expiration date. 21. Please list your NASD Registration Number 22. Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department 23. Do you maintain an office in California. Yes No 24. Do you maintain an office in La Quinta or Riverside County? Yes No 25. Please enclose the following: • Latest audited financial statements. • Samples of reports, transaction confirmations and any other research/publications the City will receive. • Samples of research reports and/or publications that your firm regularly provides to clients. • Complete schedule of fees and charges for various transactions. 'CERTIFICATION' *CERTIFICATION I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document the City of La Quinta is authorized to conduct any and all background checks. 29 u37. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Broker Representative Date Title Sales Manager and/or Managing Partner* Date Title 30 Appendix G INVESTMENT POOL QUESTIONNAIRE Note: This Investment Pool Questionnaire was developed by the Government Finance Officers Association (GFOA). Prior to entering a pool, the following questions and issues should be considered. SECURITIES Government pools may invest in a broader range of securities than your entity invests in. It is important that you are aware of, and are comfortable with, the securities the pool buys. 1 . Does the pool provide a written statement of Investment Policy and objectives? 2. Does the statement contain: a. A description of eligible investment instruments? b. The credit standards for investments? c. The allowable maturity range of investments? d. The maximum allowable dollar weighted average portfolio maturity? e. The limits of portfolio concentration permitted for each type of security? f. The policy on reverse repurchase agreements, options, short sales and futures? 3. Are changes in the policies communicated to the pool participants? 4. Does the pool contain only the types of securities that are permitted by your Investment Policy? INTEREST Interest is not reported in a standard format, so it is important that you know how interest is quoted, calculated and distributed so that you can make comparisons with other investment alternatives. Interest Calculations 1 . Does the pool disclose the following about yield calculations: a. The methodology used to calculate interest? (Simple maturity, yield to maturity, etc.) b. The frequency of interest payments? 31 VII,,_3-q c. How interest is paid? (Credited to principal at the end of the month, each quarter; mailed?) d. How are gains/losses reported? Factored monthly or only when realized? REPORTING 1 . Is the yield reported to participants of the pool monthly? (If not, how often?) 2. Are expenses of the pool deducted before quoting the yield? 3. Is the yield generally in line with the market yields for securities in which you usually invest? 4. How often does the pool report, and does that report include the market value of securities? SECURITY The following questions are designed to help you safeguard your funds from loss of principal and loss of market value. 1 . Does the pool disclose safekeeping practices? 2. Is the pool subject to audit by an independent auditor? 3. Is a copy of the audit report available to participants? 4. Who makes the portfolio decisions? 5. How does the manager monitor the credit risk of the securities in the pool? 6. Is the pool monitored by someone on the board of a separate neutral party external to the investment function to ensure compliance with written policies? 7. Does the pool have specific policies with regards to the various investment vehicles? a. What are the different investment alternatives? b. What are the policies for each type of investment? 8. Does the pool mark the portfolio to its market value? 32 9. Does the pool disclose the following about how portfolio securities are valued: a. The frequency with which the portfolio securities are valued? b. The method used to value the portfolio (cost, current value, or some other method)? OPERA TIONS The answers to these questions will help you determine whether this pool meets your operational requirements: 1 . Does the pool limit eligible participants? 2. What entities are permitted to invest in the pool? 3. Does the pool allow multiple accounts and sub -accounts? 4. Is there a minimum or maximum account size? 5. Does the pool limit the number of transactions each month? What is the number of transactions permitted each month? 6. Is there a limit on transaction amounts for withdrawals and deposits? a. What is the minimum and maximum withdrawal amount permitted? b. What is the minimum and maximum deposit amount permitted? 7. How much notice is required for withdrawals/deposits? 8. What is the cutoff time for deposits and withdrawals? 9. Can withdrawals be denied? 10. Are the funds 100% withdrawable at anytime? 1 1 . What are the procedures for making deposits and withdrawals? a. What is the paperwork required, if any? b. What is the wiring process? 12. Can an account remain open with a zero balance? `1 ,L 33 1 3. Are confirmations sent following each transaction? STA TEMENTS It is important for you and the agency's trustee (when applicable), to receive statements monthly so the pool's records of your activity and holding are reconciled by you and your trustee. 1 . Are statements for each account sent to participants? a. What are the fees? b. How often are they passed? c. How are they paid? d. Are there additional fees for wiring funds (what is the fee)? 2. Are expenses deducted before quoting the yield? QUESTIONS TO CONSIDER FOR BOND PROCEEDS It is important to know (1) whether the pool accepts bond proceeds and (2) whether the pool qualifies with the U.S. Department of the Treasury as an acceptable commingled fund for arbitrage purposes. 1 . Does the pool accept bond proceeds subject to arbitrage rebate? 2. Does the pool provide accounting and investment records suitable for proceeds of bond issuance subject to arbitrage rebate? 3. Will the yield calculation reported by the pool be acceptable to the IRS or will it have to be recalculated? 4. Will the pool accept transaction instructions from a trustee? 5. Are you allowed to have separate accounts for each bond issue so that you do not commingle the interest earnings of funds subject to rebate with funds not subject to regulations? 34 Appendix H GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government -sponsored enterprises. ASKED: The price at which securities are offered BANKERS' ACCEPTANCE (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large -denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. 35 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling 3. below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non -interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. 1. FNMAs (Federal National Mortgage Association) - Used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued in various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. 2. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage -lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes 36 are issued with maturities of less than one year and interest is paid at maturity. The bonds are issued with various maturities and carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis. FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360-day, 30 day month basis. 4. FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. 5. FICBs (Federal Intermediate Credit bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine -month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis. 6. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBAs), Government National Mortgage Association notes (GNMAs), Tennessee Valley Authority notes (TVAs), and Student Loan Association notes (SALLIE-MAEs). FEDERAL DEPOSITOR INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open -market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: the central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "passthroughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $30,000,000 for any agency. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one -quarter of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. 37 4,) MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase --reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the vent of default by the seller -borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable MONEY MARKET: The market in which short- term debt instruments (bills, commercial paper, banders' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity an depositions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -registered securities broker -dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A repurchase agreement is a short-term investment transaction. Banks buy temporarily idle funds from a customer by selling U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date. Repurchase agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal funds and the maturity of the repo. Some banks will execute repurchase agreements for a minimum of $100,000 to $500,000, but most banks have a minimum of $1,000,000. REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo) - A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RRP extensively to finance their positions. Exception: When the Fed is said to be doing RRP, it is lending money, that is, increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. 38 d4 � SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMAS, SLMA, etc.) And Corporations which have imbedded options (e.g., call features, step- up coupons, floating rate coupons, derivative - based returns) into their debt structure, Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the Shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non -interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium -term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par of plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 39 �i f ATTACHMENT NO. 1 CITY OF LA QUINTA Investment Policy Table of Contents Section Tom Executive Summary I General Purpose II Investment Policy III Scope IV Objectives ► Safety ► Liquidity ► Yield Diversified Portfolio V Prudence VI Delegation of Authority VII Conflict of Interest Vill Authorized Financial Dealers and Institutions ► Broker/Dealers ► Financial Institutions IX Authorized Investments and Devesofica Limitations X Investment Pools Ozation Xi X-H I Collateral Safekeeping and Custody X+ffXII Interest Earning Distribution Policy XfVX1114 Maxomum Maturities XV III Internal Controls and I depen ent Auditors X-VfXIV Benchmark X ixv Reporting Standards Xviii ` Investment of Bond Proceeds X1-XXVII Investment Advisory Board - City of La Quinta XXXVIIII Investment Policy Adoption Appendices: k Cti Summary of Authorized Investments and Diveisificati Limitations Municipal Code Ordinance 2.70 - Investment Advisory Board Municipal Code Ordinance 3.08 - Investment of Moneys and Funds Segregation of Major Investment Responsibilities Listing of Approved Financial Institutions Broker/Dealer Questionnaire and Certification Investment Pool Questionnaire Glossary 1 City of La Quinta Investment Policy Executive Summary The general purpose of this Investment Policy is to provide the rules and standards users must follow in investing funds of the City of La Quinta. It is the policy of the City of La Quinta to invest all public funds in a manner which will provide a diversified portfolio with maximum security while meeting daily cash flow demands and the highest investment return in conformity to all state and local statutes. This Policy applies to all cash and investments of the City of La Quinta, La Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter referred in this document as the "City". The primary objectives, in order of priority, of the City of La Quinta's investment activity shall be: Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Within the constraints of stifetyi liquidity and yield, the City will endeavor to maintain b diversified portfolio by allocating assets between different types of investments within policy limitations, Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written 2 procedures for the operation of the City's investment program consistent with the Investment Policy. The Treasurer shall establish and implement a system of internal controls to maintain the safety of the portfolio. In addition, the internal control system will also insure the timely preparation and accurate reporting of the portfolio financial information. The adequacy of these controls will be reviewed and reported on annually by an independent auditor. s part of the annual audit of the City of La QUI(lita'S finAh ial StAltMentt the independent auditor reviews the adequacy of those controls and oomm#nt$ if weakntttet are found. Investment responsibilities carry added duties of insuring that investments are made without improper influence or the appearance to a reasonable person of questionable or improper influence. The City of La Quinta Investment Policy maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions selected by the Treasurer to provide investment services will be approved by the City Manager subject to City Council approval. The Treasurer will be permitted to invest only in City approved investments up to the maximum allowable percentages and, where applicable, through the bid process requirements. Authorized investment vehicles and related maximum portfolio positions are listed in Appendix A - umffiary of Authorized Investments and Dmveisufacatian L.-im-litotion tments in the authorized investment vehicles. Collateral ization will be required for Certificates of Deposits in excess of $100,000. Collateral will always be held by an independent third party from the institution that sells the Certificates of Deposit to the City. Evidence of compliance with State Collateralization policies must be supplied to the City and retained by the City Treasurer. The City of La Quinta Investment Policy shall require that each individual investment have a maximum maturity of two years unless specific approval is authorized by the City Council. In addition, the City's investment in the State Local Agency Investment Fund (LAIF) is allowable as long as the average maturity does not exceed two years, unless specific approval is authorized by the City Council. The City's investment in Money Market Mutual funds is allowable as long as the average maturity does not exceed 60 days. The City of La Quinta Investment Policy will use the six month U.S. Treasury Bill as a benchmark when measuring the performance of the investment portfolio. The Investment Policies shall be adopted by resolution of the La Quinta City Council on an annual basis, The Investment Policies will be adopted before the end of June of each year. !91 This Executive Summary is an overall review of the City of La Quinta Investment Policies. Reading this summary does not constitute a complete review which can only be accomplished by reviewing all the pages. M City of La Quinta Statement of Investment Policy July 1, 1999 through June 30, 2000 Adopted by the City Council on GENERAL PURPOSE The general purpose of this document is to provide the rules and standards users must follow in administering the City of La Quinta cash investments. II INVESTMENT POLICY It is the policy of the City of La Quinta to invest public funds in a manner which will provide a diversified portfolio with safety of principal h primary bb,16etive while meeting daily cash flow demands with the highest investment return. In addition, the Investment Policy will conform to all State and local statutes governing the investment of public funds. III SCOPE This Investment Policy applies to all cash and investments of the City of La Quinta, City of La Quinta Redevelopment Agency and the City of La Quinta Financing Authority, hereafter referred in this document as the "City". These funds are reported in the City of La Quinta Comprehensive Annual financial Report (CAFR) and include: All funds within the following fund types: ► General ► Special Revenue ► Capital Projects ► Debt Service ► Internal Service ► Trust and Agency ► Any new fund types and fund(s) that may be created. 9 IV OBJECTIVES The primary objective, in order of priority, of the City of La Quinta's investment activity shall be: 1. Safety Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio in accordance with the permitted investments. The objective will be to mitigate credit risk and interest rate risk. A. Credit Risk Credit Risk - is the risk of loss due to the failure of the security issuer or backer. Credit risk may be mitigated by: ► Limiting investments to the safest types of securities; ► Pre -qualifying the financial institutions, and broker/dealers, which the City of La Quinta will do business; and ► Diversifying the investment portfolio so that potential losses on individual securities will be minimized. B. Interest Rate Risk Interest Rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may be mitigated by: ► Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and ► By investing operating funds primarily in shorter -term securities. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore since all possible cash demands cannot be anticipated the portfolio should be diversified said consist of securities with active secondary or resale markets. Con 3. Yield The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: ► A declining credit security could be sold early to minimize loss of principal; ► Liquidity needs of the portfolio require that the security be sold. Within the tonstfaffift, of mafoty, liquidity and yiol&, the City will end'einvot to divottified portfolib by eatses between different typosof investmonu within policy r V PRUDENCE The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate Code Sections 16045 through 16054.. Section 16053 sets forth the terms of a prudent person which are as follows: Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence excerise in the professional management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. VI DELEGATION OF AUTHORITY Authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls v to regulate the activities of subordinate officials. The City Manager or Assistant City Manager shall approve in writing all purchases and sales of investments prior to their execution by the City Treasurer. VII CONFLICT OF INTEREST Investment responsibilities carry added duties of insuring that investments are made without improper influence or the appearance of improper influence. Therefore, the City Manager, Assistant City Manager, and the City Treasurer shall adhere to the State of California Code of Economic Interest and to the following: ► The City Manager, Assistant City Manager, and the City Treasurer shall not personally or through a close relative maintain any accounts, interest, or private dealings with any firm with which the City places investments, with the exception of regular savings, checking and money market accounts, or other similar transactions that are offered on a non-negotiable basis to the general public. Such accounts shall be disclosed annually to the City Clerk in conjunction with annual disclosure statements of economic interest. ► All persons authorized to place or approve investments shall report to the City Clerk kinship relations with principal employees of firms with which the City places investments. VIII AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City of La Quinta Investment Policy maintains a listing of financial institutions which are approved for investment purposes. In addition a list will also be maintained of approved broker/dealers selected by credit worthiness, who maintain an office in the State of California. 1 . Broker/Dealers who desire to become bidders for investment transactions must supply the City of La Quinta with the following: ► Current audited financial statements ► Proof of National Association of Security Dealers Certification ► Trading resolution ► Proof of California registration ► Resume of Financial broker ► Completion of the City of La Quinta Broker/Dealer questionnaire which contains a certification of having read the City of La Quinta Investment Policy .J The City Treasurer shall evaluate the documentation submitted by the NO broker/dealer and independently verify existing reports on file for any firm and individual conducting investment related business. The City Treasurer will also contact the following agencies during the verification process: ► National Association of Security Dealer's Public Disclosure Report File - 1-800-289-9999 ► State of California Department of Corporations 1-916-445-3062 All Broker/Dealers selected by the City Treasurer to provide investment services will be approved by the City Manager subject to City Council approval. The City Attorney will perform a legal review of the trading resolution/investment contract submitted by each Broker/Dealer. Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for &potlit of investment: A. Insurance - Public Funds shall be deposited only in financial institutions having accouhts insured by the Federal Deposit Insurance Corporation (i) B. Collateral - The amount of City of La Quinta deposits or investments not insured by the FDIC governmera shall be 110% collateralized by securities' or 150% mortgages' market values of that amount of invested funds plus unpaid interest earnings. 6. Size - The amount of City of La Quinta deposits oi investments must be co atera 'zed oi insured by an agency of me federai i $. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC in utred amount $100,000 shall furnish corporate authorities tide City a copy of the most recent Annual Call Report. of a" statements of resources and liabilities which s required to fuinish to the State banking o, savings and lo Financial C The City shall not invest in excess of $100,000 the FDIC insu 01 o�� Amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. IX IINVC[�T EERRMI-FS, ND DIVERSIFIC A TIAI►I UTf"l�}I' I /� NIYy vv Ln.�u �.h � �VIV 1 't v_ VTVMNVTMNLWI! ` 4 The City Treasurer will be permitted to invest in the investments fisted tumentriled in the Appendix A, entitled - Authmized investments and DgversifiCC-1-HU-1-1 I. STATE OF CALIFORNIA AND CITY OF LA QUINTA LIMITATIONS As provided in Sections 16429.1, 53601, 53601 .1, and 53649 of the Government Code, the State of California limits the investment vehicles available to local agencies as summarized in the following paragraphs. Section 53601, as now amended, provides that unless Section 53601 specifies a limitation on an investment's maturity, no investments with maturities exceeding five years shall be made. The City of La Quinta Investment Policy has specified that no investment may exceed two years. State Treasurer's Local Agency Investment Fund (LAIR - As authorized in Government Code Section 16429.1 and by LAIF procedures, local government agencies are each authorized to invest a maximum of -$- 9 30 Million per account in this investment program administered by the California State Treasurer. The City`t investment in the State Local Agency In -vestment Fund tLAl ) is allowable As long At the Average maturity'of itt investment portfolio duet not exceed two y6trt, unlett tpecific apptovel it Authorized by the City Council, The City of La Quinta has two accounts with LAIF. The City of La Quinta Investment Policy has a limitation of 35% of the portfolio. U.S, Government and Reid Amy Issues - As authorized in Government Code Sections 53601 (a) through (n) as they pertain to surplus funds, this category includes a wide variety of government securities which include the following: • Local government bonds or other indebtedness and State bonds or other indebtedness. The City of La Quinta Investment Policy does not allow investments in local and state indebtedness • U.S. Treasury bills, notes and bands directly issued and backed or other by the full faith and credit of the federal U, z Government. The City of La Quinta Investment Policy limits investments in U.S. Treasury issues to 75% of the portfolio. 10 ncy, The City NationalMortgbgiieAtsotiationan r'' La Quinta Investment Policy has 4§ limittition of 76% of the portfolio with o singleof ° of the Portfolio, � ' ! " is ! • s � ! '!. „ ! !M !' m ! r !: ! `. WWWIWI ENIONL7.151MLIn to i is i = - i i =i' i •' i is i = • _ _ • i NOW • _ _' •• i =00 i i i i Bankers' Acceptances - As authorized in Government Code Section 53601 (f), 40% of the pbrtfo io may be invested in Bankers' Acceptances, although no more than 30% of the portfolio may be invested in Bankers' Acceptances with any one commercial bank. Additionally, the maturity period cannot exceed 270 days; however, Bankers' Acceptances are seldom marketed with maturities in excess of 180 days. The City of La Quinta Investment Policy does not allow investment in Bankers' Acceptances. Commercial Paper - As authorized in Government Code Section 53601 (g), 15% of the portfolio may be invested in commercial paper of the highest rating (A-1 or P-1) as rated by Moody's or Standard and Poor's, with maturities not to exceed 180 days. This percentage may be increased to 30% if the dollar weighted average maturity does not exceed 31 days. The City of La Quinta Investment Policy only allows investments in commercial paper to 30% of the portfolio with a maximum maturity of 30 dayt per i suo, the dollar weighted average maturity does not exceed 31 . Them These are a number of other qualifications regarding investments in commercial paper based on the financial 11 strength of the corporation and the size of the investment. The City of La Quinta InIVOM pie t Policy has also required limits Commercial Paper to that no more than $1 million dollars may be invested in any one entity at any time for o mote than 30 days. Negotiable Certificates of Deposit - As authorized in Government Code Section 53601 (h), 30% of the portfolio may be invested in negotiable certificates of deposit issued by commercial banks and savings and loan associations. The City of La Quinta Investment Policy does not allow investment in Negotiable Certificates of Deposit. Repurchase and Reverse Repurchase Agreements - As authorized in Government Code Section 53601(i), these investment vehicles are agreements between the local agency and seller for the purchase of government securities to be resold at a specific date and for a specific amount. Repurchase agreements are generally used for short term investments varying from one day to two weeks. There is no legal limitation on the amount of the repurchase agreement. However, the maturity period cannot exceed one year. The market value of securities underlying a repurchase agreement shall a at least 102% of the funds invested and shall be valued at least quarterly. The City of La Quinta Investment Policy does not allow investment in Repurchase Agreements. The term "reverse repurchase agreement" means the sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase such securities on or before a specific date and for a specific amount. As provided in Government Code Section 53635, reverse repurchase agreements require the prior approval of the City Council. The City of La Quinta Investment Policy does not allow investment in Reverse Repurchase Agreements. Corporate Notes - As authorized in Government Code Section 53601 (1), local agencies may invest in corporate notes for a maximum period of five years in an amount not to exceed 30% of the agency's portfolio. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City of La Quinta Investment Policy does not allow IAVOMMit t in corporate notes. Diversified Management oanies - As authorized in Government Code Section 53601 (k), local agencies are atso authorized to i-n invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which 12 a 11 L#19 Ill art&.%; Mortgage -Backed Securities - As authorized in Government code Section 53601 (n), local agencies may invest in mortgage -backed securities such as mortgage pass -through securities and collateralized mortgage obligations for a maximum period of five years in an amount not to exceed 20% of the agency's portfolio. Securities eligible for investment shall have a "A" or higher rating. The City of La Quinta Investment Policy does not allow investment in Mortgage - Backed Securities. Financial Futures and Financial Option Contracts - As authorized in Government Code Section 53601.1, local agencies may invest in financial futures or option contracts in any of the above investment categories subject to the same overall portfolio limitations. The City of La Quinta Investment Policy does not allow investments in financial futures and financial option contracts. Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of Deposit are fixed term investments which are required to be collateralized from 1 10% to 150% depending on the specific security pledged as collateral in accordance with Government Code Section 53652. There are no portfolio limits on the amount or maturity for this investment vehicle. � m- - � � s-sa •- • es e ,• 4.'.., • 4 .. �. .. i . �:. roainfad #.....the City TroAtutor atffi llowc C tificate n _D pn its In".d by the 01. --, `ihio City Treo urtr may waive collatrualization of a deposit that Is tiod#rblly rtstire 4 13' , Certificates of Debosit in excess of IDlC Limits, The amount hot federally insured shall lie I10% callmeralit#d by seourlties or 160% mortgages market value of that amount of Invested funds plus unpaid interest i6brnings, The City of La Quinta Investment Policy limits the percentage of Certificates of Deposit to 60% of the portfolio. Sweep Accounts - As authorized by the City Council, a U.S. Treasury Money Market Sweep Account with a $50,000 target balance may be maintained in conjunction with the checking account. derivatives.'Derivati'vols, -- The City of LA Who Investment Polity does hot tillow investment in X INVESTMENT POOLS There are three (3) types of investment pools: 1) state -run pools, 2) pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee i.e. County Pool; and 3) pools that are operated for profit by third parties. The City of La Quinta Investment Policy has an authorized investment with the State of California's Treasurers Office Local Agency Investment Fund commonly referred to as LAIF. LAIF was organized in 1977 through State Legislation Section 16429.1, 2 and 3. Each LAIF account is restricted to a maximum investable limit of -$� 0 million. In addition, LAIF will provide quarterly market value information to the City of La Quinta. On an annual basis the City Treasurer will submit the Investment Pool Questionnaire to LAIF. Also, prior to opening any new Investment Pool account, which would require City Council approval, the City Treasurer will require the completion of the Investment Pool Questionnaire. The City sloes not allow does not have an investments with any other Investment Pool - County Pools or Third Party Pools. 14 Owns WHOM Xf[ SAFEKEEPING AND CUSTODY All security transactions of the City of La Quinta Investment Policy shall be conducted on a delivery - versus - payment (DVP) basis. Securities will be held by a third party custodian designated by the City Treasurer and evidenced by safekeeping receipts. Deposits and withdrawals of money market mutual funds and LAIF shall be made directly to the entity and not to an investment advisor, broktr or dealer. Money market mutual funds and LAIF shall also operate on a DVP basis to be considered for investment. XIXWINTEREST EARNING DISTRIBUTION POLICY Interest earnings is generated from pooled investments and specific investments. 1 . Pooled Investments - It is the general policy of the City to pool all available operating cash of the City of La Quinta, La Quinta Redevelopment Agency and La Quinta Financing Authority and allocate interest earnings, in the following order, as follows: A. Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. B. Payment to the General Fund of a management fee equal to 5% of the annual pooled cash fund investment earnings. C. Payment to each fund of an amount based on the average computerized daily cash balance included in the common portfolio for the earning period. 2. Specific Investments - Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. LAUVAKIMLIJU 15 The City Treasurer shall establish a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► The orderly and efficient conduct of its business, including adherence to management policies; ► Prevention or detection of errors and fraud; ► The accuracy and completeness of accounting records; and, ► Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: a. Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. b. Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. C. Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. d. Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. e. Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities 16 �.S to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. f. Written confirmation or telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up. g. Development of a wire transfer agreement with the City's bank and third party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. In addition to The System of Internal Controls developed by the City, the Internal shall be mviowed annually by the independent auditor in connection with the annual audit of the City o LA Quinta*s financial Stataniantaz The independent auditor's management letter comments pertaining to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. Ttvis The management letter cbmi,cittitt ptrtoining to cash and investment activit'lot wd the independentCity Ttvasut*r*s response shall bt provided to the City*s Investment Advisory Board tot their consideration, Following the complotioh of each annual audit, th&� auditw shall MeetBoard and d4mg thel auditing e r perform -M and the review of .' elbWbig f0f.nil investment Attivitlet, XIVX-W BENCHMARK The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles commensurate with the investment risk constraints and the cash flow needs of the City. Return on investment is of least importance compared to safety and liquidity objectives. The City of La Quinta Investment Policy will use the six month U.S. Treasury Bill as a benchmark when measuring the performance of the investment portfolio. XVH REPORTING STANDARDS 17 SB564 section 3 requires a quarterly report to the Legislative Body of Investment activities. The City of La Quinta Investment Advisory Boa Policy has elected to report the investment activities to the City Council on a monthly basis through the Treasurers Report. The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment Advisory Board that includes all Cash and investments under the authority of the Treasurer. The Treasurers Report shall consist of , narrative of significant changes in cash balances and the following aummat°ie cash and inrreatMent activity and chanoet in balances and Include the follovvin t, ' , ► A certification statement fiorn the by City Treasurer; ► A listing of Purchases and sales/maturities of investments; ► Cash and Investments Categorized 6ost to market value M--Gf aii by authorized investments, except for LAIF which will be provided quarterly and show yield and maturity; ► Comparison of month end actual holdings to Investment Policy r a'zir�am-s limitation ► Current year and prior year monthly history of cash and investments for trend analysis; ► Balance Sheet; ► Distribution of cash and investment balances by fund; holding of Cash and investments; Comparing cost to market except for LAIF which will be provided quarteily and show yield and matuiity; A Comparison of actual and surplus funds*, ► A year to date historical cash flow analysis and pirojeotion for the next six months. 1XV111 INVESTMENT OF BOND PROCEEDS The City's Investment Policy shall govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's Investment Policy. Arbitrage Requirement The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. This arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate 18 the calculations. The City's investment position relative to the new arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. V1IX4X INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA The Investment Advisory Board (IAB) consists of seven members of the community that have been appointed by and report to the City Council. The IAB usually meets on a monthly basis, but at lLatt quart jrly do 1) review account statements and verifications to ensure accurate reporting as they relate to an investment activity, 2) monitor compliance with existing Investment Policy and Procedures, and 3) review and make recommendations concerning Investment Policy and procedures, investment contracts and investment consultants. The appendices include City of La Quinta Ordinance 2.70 entitled Investment Advisory Board Provisions. XVIIIXX INVESTMENT POLICY ADOPTION On an annual basis, the Investment policies will be initially reviewed by the Investment Advisory Board and the City Treasurer. The Investment Advisory Board will forward the Investment policies, with any revisions, to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City Treasurer to review the Investment policies and comments, prior to submission to the City Council for their consideration. The Investment Policies shall be adopted by resolution of the City of La Quinta City Council on an annual basis. The Investment Policies will be adopted before the end of June of each year. O l� �'] Appendix A E E F- U I o� J J h C° a)d c =i ° a `o W U 0l. ILL. o I LLI I I� _ m � � C m ° ¢ N O o m wo n r �p 0 °W E J ao h Y vi a?o `. d j c �.d o N E O o Ct NC.. O Obi N c� m m 0 o� w mm 6E o 'o 0 Lo 'o 'o 0 `o 1 o to I� of E n Jv to o mILL i3O a a� a a 0 a a ° a �aI sQ - - 01 O. O O -2 o oov0o c. 0 a a aa I z U m I I I d c ami c J III c 8� cg' I, Em IU m m o U 4l N d E y I i cN m c ' i j m I II x E W E c c m J c C o m N c 8¢ j I a m U .- N E : c E m C 2J Ia al I E- z ELc�¢� LLx LL I w N `o O C to > m c z ° O� LL m 0 m L � III MC m D m m': N d 0 0 L N 0 L' .N N N IDml U Q O m mJ a jo (° v o 12 N N I C o c y O) N 1 m¢ LL LL m N m N J C IIm ° � 'NCO or-z— o 0 a m`o om l0 l c Il o hh' O U U om im�=O�c�U m m= m a Ecm m oo" _ CO do E m00JoEZ2 LLm �c'o = E mE E 04In ,lE ¢ > Uo' o�oavavo� 0 m rn ¢ Erm m r L U I m = rI o C9 ii j E . ii LL a . . . LL LL is .E I o t o m al o m N z Z W f W z 2 O N K O H Q z O 5 E Q E c m E ° c ro O � u m N W ¢ « nro�U��S U v Z c o o w��yDDc'�o: m LL m d� m N d .omo m05o2m'm'a>i m z i CL6 � a E d D o J V c N .a m E o 'm m C m Vi m E U m N E5 o o.� U 0 0 w ow- nwd Nm O �W ao°'� _ p�U JE ~moE m E m T c E m c u Owt a N m 0 U E a E. 0 C O O� 02 m U c jCtOc � cowo ° 0 t'n ° N U M �� - ID w m cc c m ° cm E c > ° M aui « mm c E oc�mm E. o m m m as CO m ° as c.-d O Y 40`1 Q � 0 H 4 N umi T l0 - S U E a!0 a> a> m� C U LL TO N a Uo o « C D Q m N C 0 .>. E U �c O a.gc>w o � u m m vm c JmJm- ari ` E 0 m U E td m�aEaci y a m 6,0 m e Q d « a 3 .3 c a,7u) a' m m N o. o d .cw _ N Y 0 _ m m C Q « E °Ndc ° Eo- a o n � c c wa2mw dNm cm m �C c m c m wH Jm E. mwC�w W uco - « o a = E 0o O vi C L ayy-- t °¢ 3 c m E Z m m e 'E 'T 0 cc m'0 m m e 0 m� mL E �,E o-g o°. - o 9 m m a a E o L) m_ v a d F c J Q 0 a Lm 2I- f ¢ c01i s r.�EVJ..c N N N u O m � c !is Appendix B Chapter 2.70 INVESTMENT ADVISORY BOARD PROVISIONS Sections: 2.70.010 General Rules Regarding Appointment and Terms.- 2.70.020 Board meetings and compensation. 2.70.030 Board functions. 2.70.010 General rules regarding appointment and terms. A. Except as set out below, see Chapter 2.06 for General Provisions. -. The Investment Advisory Board (the "board") is a standing board composed of seven (7) members from the public that are appointed by city council. La Quinta residency is preferred, but not a requirement for board members. Recruitment for members may be advertised outside of the city". , Background in the investment field and/or related experience is preferred. Background information will be required and potential candidates must agree to a background check and verification. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a beating on the c priatene of that ffiombiLi*r*s service on the board. Such matters may include, but are not limited to, changes in employment, changes in residence, or changes in clients. 2.70.020 Board meetings and compensation. Initially, the Board should meet once a month, but this schedule may be extended to quarterly meetings upon the concurrence of the Board and the City Council. The specific meeting dates will be determined by the Board members and meetings may be called for on an as needed basis. 2.70.030 Board functions. A. The following are functions of the Board that are to be addressed at each meeting: (1) review account statements and verifications to ensure accurate reporting as they relate to an investment activity; (2 tt) monitor compliance with existing Investment Policy and procedures; and ( 1ri) review and make recommendations concerning Investment Policy and procedures, investment contracts, and investment consultants. B. The Board will report to City Council after each meeting either in person or through correspondence at a regular City Council meeting. v0 21 6 Appendix C Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS Sections: 3.08.010 Investment of city moneys and deposit of securities. 3.08.020 Authorized investments. 3.08.030 Sales of securities. 3.08.040 City bonds. 3.08.050 Reports. 3.08.060 Deposits of securities. 3.08.070 Trust fund administration. 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607 and 53608 of the Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1 982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under any provision of state law relating to the investing of general city funds, including but not limited to Sections 53601 and 53635 of the Government Code, as said sections now read or may hereafter be amended, from moneys in his custody which are not required for the immediate necessities of the city and as he may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part), 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord. 2 § I (part), 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be canceled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) V to 22 F 3.08.050 Reports. The city treasurer shall make a monthly report to the city council of all investments made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982) 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the terms of any state law, including but not limited to Section 53608 of the Government Code as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 2 § 1 (part), 1982 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 26524 of the Government code and any other applicable provisions of law. (Ord. 2 § 1 (part), 1982) 23 - • t l Appendix D SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Responsibilities Develop formal Investment Policy City Treasurer Recommend modifications to Investment Policy Investment Advisory Board Review formal Investment Policy and recommend City Manager and City Council action City Attorney Adopt formal Investment Policy City Council Review Financial Institutions & Select Investments City Treasurer Approve investments City Manager or Assistant City Manager Execute investment transactions City Treasurer Confirm wires, if applicable City Manager or Accounting Manager Record investment transactions in City's accounting records Accounting Manager Investment verification - match broker confirmation to City investment records Account Technician Reconcile investment records - to accounting records and bank statements - to Treasurers Report of investments Account Technician Security of investments at City Vault Security of investments Outside City Third Party Custodian Review internal control procedures External Auditor 24 �' A- Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1 . Banking Services - Wells Fargo Bank, Government Servitts, otiodco, C iifblrnii 2. Custodian Services - Bank of New York, Lot, Angeles, Califamia 3. Deferred Compensation - International City/County Management Association Retirement Corporation 4. Broker/Dealer Services - Merrill Lynch, Indian Wells, CA otg n Stan!" Dean Witter, Newport Beach, CA San Francisco, C iil'otniA Salomon Smith Barney, Newport Beach, CA 5. Government Pool - State of California Local Agency Investment Fund City of La Quinta Account La Quinta Redevelopment Agency 6. Bond Trustees - 1991 City Hall Revenue Bonds - US Bank 1991 RDA Project Area 1 - US Bank 1992 RDA Project Area 2 - US Bank 1994 RDA Project Area 1 - US Bank 1995 RDA Project Area 1 & 2 - US Bank Assessment Districts - US Bank No Changes to this listing may be made without City Council approval. 25 Appendix F BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1 . Name of Firm: 2. Address: 3. Telephone: ( ) ( 1 4. Broker's Representative to the City (attach resume): Name: Title: Telephone: ( ) 5. Manager/Partner-in-charge (attach resume): Name: Title: Telephone: 6. List all personnel who will be trading with or quoting securities to City employees (attach resume) Name: Title: Telephone:) 1 ( l 7. Which of the above personnel have read the City's Investment Policy? 8. Which instruments are offered regularly by your local office? (Must equal 100%) % U.S. Treasuries % Repos % BA's % Reverse Repos % Commercial Paper % CMO's % CD's % Derivatives % Mutual Funds % Stocks/Equities % Agencies (specify): % Other (specify): 26 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Contact Telephone Client Since Entity Contact Telephone Client Since 10. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. 1 1 . Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. 12. Has a client ever claimed in writing that you were responsible for an investment loss? Yes No If yes, please provide action taken Has a client ever claimed in writing that your firm was responsible for an investment loss? Yes No If yes, please provide action taken 27 Do yDu have any current, or pending complaints that are unreported to the NASD? Yes No If yes, please provide action taken Does your firm have any current, or pending complaints that are unreported to the NASD? Yes No If yes, please provide action taken 13. Explain your clearing and safekeeping procedures, custody and delivery process. Who audits these fiduciary responsibilities? Latest Audit Report Date 14. How many and what percentage of your transactions failed. Last month? % $ Last year? % $ 15. Describe the method your firm would use to establish capital trading limits for the City of La Quinta. 16 Is your firm a member in the S.I.P.C. insurance program. Yes If yes, explain primary and excess coverage and carriers. 17. What portfolio information, if any, do you require from your clients? No 18. What reports and transaction confirmations or any other research publications will the City receive? 28 19. Does your firm offer investment training to your clients? Yes No 20. Does your firm have professional liability insurance. Yes No If yes, please provide the insurance carrier, limits and expiration date. 21. Please list your NASD Registration Number 22 Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department 23. Do you maintain an office in California. Yes No 24. Do you maintain an office in La Quinta or Riverside County? Yes No 25. Please enclose the following: • Latest audited financial statements. • Samples of reports, transaction confirmations and any other research/publications the City will receive. • Samples of research reports and/or publications that your firm regularly provides to clients. • Complete schedule of fees and charges for various transactions. 'CERTIFICATION' I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document the City of La Quinta is authorized to conduct any and all background checks. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Broker Representative Date Title Sales Manager and/or Managing Partner* Date Title 29 Appendix G INVESTMENT POOL QUESTIONNAIRE Note: This Investment Pool Questionnaire was developed by the Government Finance Officers Association (GFOA). Prior to entering a pool, the following questions and issues should be considered. SECURITIES Government pools may invest in a broader range of securities than your entity invests in. It is important that you are aware of, and are comfortable with, the securities the pool buys. 1 . Does the pool provide a written statement of Investment Policy and objectives? 2. Does the statement contain: a. A description of eligible investment instruments? b. The credit standards for investments? c. The allowable maturity range of investments? d. The maximum allowable dollar weighted average portfolio maturity? e. The limits of portfolio concentration permitted for each type of security? f. The policy on reverse repurchase agreements, options, short sales and futures? 3. Are changes in the policies communicated to the pool participants? 4. Does the pool contain only the types of securities that are permitted by your Investment Policy? INTEREST Interest is not reported in a standard format, so it is important that you know how interest is quoted, calculated and distributed so that you can make comparisons with other investment alternatives. Interest Calculations 1 . Does the pool disclose the following about yield calculations: a. The methodology used to calculate interest? (Simple maturity, yield to maturity, etc.) b. The frequency of interest payments? 30 c. How interest is paid? (Credited to principal at the end of the month, each quarter; mailed?) d. How are gains/losses reported? Factored monthly or only when realized? REPORTING 1 . Is the yield reported to participants of the pool monthly? (If not, how often?) 2. Are expenses of the pool deducted before quoting the yield? 3. Is the yield generally in line with the market yields for securities in which you usually invest? 4. How often does the pool report, and does that report include the market value of securities? SECURITY The following questions are designed to help you safeguard your funds from loss of principal and loss of market value. 1 . Does the pool disclose safekeeping practices? 2. Is the pool subject to audit by an independent auditor? 3. Is a copy of the audit report available to participants? 4. Who makes the portfolio decisions? 5. How does the manager monitor the credit risk of the securities in the pool? 6. Is the pool monitored by someone on the board of a separate neutral party external to the investment function to ensure compliance with written policies? 7. Does the pool have specific policies with regards to the various investment vehicles? a. What are the different investment alternatives? b. What are the policies for each type of investment? 8. Does the pool mark the portfolio to its market value? 9. Does the pool disclose the following about how portfolio securities are valued: a. The frequency with which the portfolio securities are valued? 31 b. The method used to value the portfolio (cost, current value, or some other method)? OPERA TIONS The answers to these questions will help you determine whether this pool meets your operational requirements: 1 . Does the pool limit eligible participants? 2. What entities are permitted to invest in the pool? 3. Does the pool allow multiple accounts and sub -accounts? 4. Is there a minimum or maximum account size? 5. Does the pool limit the number of transactions each month? What is the number of transactions permitted each month? 6. Is there a limit on transaction amounts for withdrawals and deposits? a. What is the minimum and maximum withdrawal amount permitted? b. What is the minimum and maximum deposit amount permitted? 7. How much notice is required for withdrawals/deposits? 8. What is the cutoff time for deposits and withdrawals? 9. Can withdrawals be denied? 10. Are the funds 100% withdrawable at anytime? 1 1 . What are the procedures for making deposits and withdrawals? a. What is the paperwork required, if any? b. What is the wiring process? 12. Can an account remain open with a zero balance? 13. Are confirmations sent following each transaction? STA TEMENTS It is important for you and the agency's trustee (when applicable), to receive 32 h'N statements monthly so the pool's records of your activity and holding are reconciled by you and your trustee. 1 . Are statements for each account sent to participants? a. What are the fees? b. How often are they passed? c. How are they paid? d. Are there additional fees for wiring funds (what is the fee)? 2. Are expenses deducted before quoting the yield? QUESTIONS TO CONSIDER FOR BOND PROCEEDS It is important to know (1) whether the pool accepts bond proceeds and (2) whether the pool qualifies with the U.S. Department of the Treasury as an acceptable commingled fund for arbitrage purposes. 1 . Does the pool accept bond proceeds subject to arbitrage rebate? 2. Does the pool provide accounting and investment records suitable for proceeds of bond issuance subject to arbitrage rebate? 3. Will the yield calculation reported by the pool be acceptable to the IRS or will it have to be recalculated? 4. Will the pool accept transaction instructions from a trustee? 5. Are you allowed to have separate accounts for each bond issue so that you do not commingle the interest earnings of funds subject to rebate with funds not subject to regulations? 33 Appendix H GLOSSARY . s: ., from the Munkipal Tmasurers Attoclat']Oh) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities andlor Govonm t spore ur d 4 it rpri , ASKED: The price at which securities are offered. BANKERS' . drAft or bill bf exchbngeo accepted by a bank or truo icomptiny,s Ingtitution guArtnteot payment of bill, Short-term;_ _ - - - - - -- -- - -- -- - -- - __ ----------- BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a tpecifiu maturity evidenced by +certifi t , Urp-=d6nomin tibn CO's Are &A S Uffilw w ---------- -- --- -- a 9 w L I R� elm I awl or. WIQU 1 A�Tlrwl d 161i ; = ; - ; ., wo!mom ;; COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: S h o r t- t e r m unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A 34 -% -i certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount DISCOUNT bt full faco Vbluo, cgeAsury DIVERSIFICATION: Dividing investment 35 funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. 1. FNMAs (Federal National Mortgage Association) - Used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued in various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. 2. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage - lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. The bonds are issued with various maturities and carry semi-annual coupons. Interest is calculated on a 360- day, 30-day month basis. u �: 3 0 5 FLBs (Federal Land Bank Bonds). - Long- term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1 ,000. They carry semi-annual coupons. Interest is calculated on a 360- day, 30 day month basis. FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six- month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. FICBs (Federal Intermediate Credit bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine - month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis. 6. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBAs), Government National Mortgage Association notes (GNMAs), Tennessee Valley Authority notes (TVAs), and Student Loan Association notes (SALLIE- MAEs). FEDERAL DEPOSITOR INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open -market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: the central bank of the United States created by Congress and consisting of a seven member Board of 36 03 Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "passthroughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $30,000,000 for any agency. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one -quarter of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase --reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the vent of default by the seller - borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable MONEY MARKET: The market in which short- term debt instruments (bills, commercial paper, banders' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy 37 r.; tool PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity an depositions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) - registered securities broker -dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES" A financial Institution which does not claim tkemption from the Payment of any sales or compensating use or ad valorem taxes -under the laws of this state, which has segregated for the benefit lot the commission eligible toitotorol having a value of not less than its maximum liability and which has been opptoved by the Public Deposit Protection Commission to hold public deposits, RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A repurchase agreement is a short-term investment transaction. Banks buy temporarily idle funds from a customer by selling U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date. Repurchase agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal funds and the maturity of the repo. Some banks will execute repurchase NWO agreements for a minimum of $100,000 to $500,000, but most banks have a minimum of $1,000,000. REVERSE REPURCHASE AGREEMENTS MML ot A#AtpA holder of securities stlit thost tecutititt to �§h invottor with an ,on a fixed datt, The ttturity 'buytt" in effect Iondt the 'VOIlet"' MOh6y for the period Of the Ogteefh#ht, thd the terms of the agreement Art structured to tomptntme him for this, Dealers uto RAP extensively to finthco their potitiohs, Exteption" When tho Fed !*Is talid to be doing RAP, it It lending money, that it, increasing bank rosierveg, A re-v rse repurchase agreeme, , L is L, ie upposs te of a iepuichase agreement. The City loans a sa,�vrWI—L9, CT-SCIFIN H-f-CAUTICIF&V 119if Claz)II.- I [DV I SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMAS, SLMA, etc.) And Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, U J derivative -based returns) into their debt structure, Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the Shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A oOt14ot#r#st bearing discount toturlity Issued by the US, Tmatury &bt, Ott bills ittuied to matur,6 in thuto motithc Ot Ont ytar, Issued ..__ .. _ .. . _ _ i■aa�=�i�.�i��a�iia�is�i��i�irv�ir:�:�e:�r►Ra.r�i TREASURY BONDS: Long-term coupon - bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium -term coupon - bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker - dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 39 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par of plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. T4tvl 4 e(P Q" AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: June 29,1999 CONSENT CALENDAR: ITEM TITLE: Consideration to Award a Contract for Construction of Jefferson Street Improvements from Avenue 54 to Highway 1 1 1, Project No. 99-05 RECOMMENDATION: As deemed appropriate by the City Council. FISCAL IMPLICATIONS: STUDY SESSION: PUBLIC HEARING: Based on a construction award amount of $6,876,876.00, the following represents the project budget: Construction: Inspection/Testing: Administration: Contingency: TOTAL: $6,876,876.00 $532,957.89 $343,843.80 $775,367.77 $8,529,045.46 The Engineer's estimated cost for this project is $8,731,709. In accordance with the proposed "Amendment Number Two to the City of La Quinta - City of Indio - County of Riverside - CVAG Reimbursement Agreement and Memorandum of Understanding" (Attachment 1), the following represents the estimated funding contributions by each Agency: Agency CVAG (75%) Preliminary Design $450,000 Final Design/ Construction $11,296,245 Total $11,746,245 City of La Quinta $90,000 $2,472,145 $2,562,145 City of Indio $57,000 $1,293,270 $1,350,270 County of Riverside $3,000 $0 $3,000 TOTAL: $600,000 $15,061,660 $15,661,660 0 T:\PWDEPT\C0UNC1L\1 999\990629a.wpd The following revenue will be available to cover the City of La Quinta's funding share upon adoption of the City's Fiscal Year 1 999-2000 Operating Budget: Infrastructure $ 2,882,008 SLTPP $1,299,992 TOTAL: $4,182,000 The Cities of La Quinta and Indio have obtained State Local Transportation Partnership Program (SLTPP) Cycle 9 funding for these improvements. The City of La Quinta's maximum share of SLTPP funding is $1,299,992.57 for Jefferson Street between Avenue 48 and Avenue 54. The City of Indio's maximum share of SLTPP funding is $298,620.00 for the bridge improvements south of Highway 111 . It is imperative that the project be awarded on or before June 30, 1999 in order to maintain the City's SLTPP reimbursement commitment. BACKGROUND AND OVERVIEW: On March 18, 1997, the City Council approved the original Reimbursement Agreement and Memorandum of Understanding (MOU) between CVAG, La Quinta, Indio, and the County of Riverside for Jefferson Street Ultimate Improvements from Indio Boulevard to Avenue 54. The MOU identifies the City of La Quinta as the lead agency and the City of Indio and County of Riverside as the cooperating agencies. On April 29, 1997, the CVAG Executive Committee approved the original Reimbursement Agreement and MOU between the City of La Quinta, City of Indio, County of Riverside, and CVAG. On March 16, 1999, the City Council approved Amendment No. 1 to the CVAG MOU. Amendment No. 1 provides a 75% (CVAG) and 25% (Local) split between CVAG and the affected jurisdictions for the funding of this project. This amendment was approved by the CVAG Executive Committee on February 22, 1999. The proposed Jefferson Street Improvements will be constructed in two phases. Phase I improvements begin at Highway 111 and end at Avenue 54. Phase II improvements begin at Indio Boulevard and end at Highway 111 . This project has been on an accelerated pace in order to capture nearly $1.6 million of additional SLTPP funding. On April 28, 1999, the City of La Quinta formally requested that CVAG issue Amendment No. 2 to the CVAG MOU. Amendment No. 2 addresses reimbursement for final engineering ($665,178) and City administration costs ($33,259), totaling $698,437. The amendment also includes reimbursement for estimated construction costs for Phase 1 Jefferson Street Improvements from Avenue 54 to Highway 111 . TAPW DEPT\COUNCIL\1999\990629a.wpd On May 14, 1999, the CVAG Technical Advisory Committee (TAC) approved Amendment No. 2 to the CVAG MOU, and Amendment No. 1 to the consultant contract for final design. On May 18, 1999, the City Council took the following actions in relation to this project: 1. Adopted a Resolution certifying a Mitigated Negative Declaration of Environmental Impact for Environmental Assessment 99-378; 2. Approved Amendment No. 2 in concept and authorized the City Manager to execute the amendment to the CVAG Reimbursement Agreement and Memorandum of Understanding (MOU) for project final design and construction of Jefferson Street from Avenue 54 to Highway 1 1 1 when it becomes available from CVAG to the City of La Quinta, City of Indio, and County of Riverside; 3. Approved Amendment No. 1 amending the Robert Bein, William Frost and Associates (RBF) contract in the Amount of $665,178 to prepare Plans, Specifications and Engineer's Estimate (PS&E) for Project 99-05, Jefferson Street Improvements, Avenue 54 to Highway 1 1 1; and 4. Approved the PS&E and authorized staff to advertise and receive bids for Project 99-05, Jefferson Street Improvements, Avenue 54 to Highway 111 . The PS&E approval stipulated that the potential roundabout proposed for the intersection of Jefferson Street at Avenue 52 be bid as an additive alternate and that a traditional signalized intersection be designed and included within the base bid project. On June 1, 1999, City Council Members discussed the advantages and disadvantages of constructing a roundabout in -lieu of a signalized intersection and were provided additional information regarding the possibility of landscaping the median islands. On June 7, 1999, the CVAG Executive Committee approved Amendment No. 2 to the Reimbursement Agreement and MOU for project final design and construction of Jefferson Street from Avenue 54 to Highway 1 1 1 between the City of La Quinta, City of Indio, County of Riverside, and CVAG. Although the Executive Committee approved Amendment No. 2 in concept, they directed CVAG staff to complete the details of the amendment. During the Executive Committee meeting, CVAG staff stated their concerns regarding the design and funding for the construction of a roundabout at the intersection of Avenue 52 and Jefferson Street. The Executive Committee deferred any action regarding a roundabout at Avenue 52 and Jefferson Street until its June 28, 1999 meeting. The matter was forwarded to the CVAG TAC and Transportation Committee for their discussions and recommendations. O03 T:\PWDEPT\C0UNC1L\1 999\990629a. wpd On June 9, 1999, the City's Attorney informed City staff that the details of Amendment No. 2 had been negotiated with CVAG. Amendment No. 2 now ensures that the City of La Quinta will continue to have a positive cash flow throughout the duration of this project. It is anticipated that all parties to the MOU will have approved Amendment No. 2 to the original MOU and Reimbursement Agreement by June 28, 1999. On June 11, 1999, CVAG's TAC addressed the issue of intersection control devices, as these devices may relate to reimbursement from CVAG's Regional Arterial Program. After discussion, the CVAG TAC recommended to the Executive Committee that the Regional Arterial Program provide funding up to the amount of a traditional signalized intersection for the proposed roundabout and that any costs over and above that amount be funded by the local jurisdiction. On June 14, 1999, CVAG's Transportation Committee supported the TAC's recommendation. On June 11, 1999, sealed bids were received for construction of this project. The following table illustrates the results of the bids received (a detailed Bid Summary is provided as Attachment 2). Please note that the construction of a roundabout at the intersection of Avenue 52 and Jefferson Street is $10,310.00 less than the costs associated with the construction of a traditional signalized intersection at this location. Therefore, if the City Council selects installation of the roundabout, there would not be any additional cost to the City above the agreed level of participation, except for right-of-way and landscaping. BIDDER Granite Construction Company E.L. Yeager Construction Company Matich Corporation Riverside Construction Company Engineer's Estimate TOTAL AMOUNT (All Bid Areas) $6,876,876.00 $8,638,583.50 $9,169,702.00 $9,327,327.00 $8,731,709.00 Assuming project award on June 29, 1999, the following represents a tentative schedule: Award of Contract June 29, 1999 Notice to Proceed December 1999 Construction (10 Months) December 1999 to October 2000 6910 Project Acceptance November 2000 004 T:\PWDEPT\C0UNC1L\1 999\990629a. wpd On June 15, 1999, the City Council continued its decision regarding the award of the construction contract until a June 29, 1999 Special Meeting of the City Council. The City Council also directed staff to complete a presentation of the "Roundabout" concept at Jefferson Street and Avenue 52 to the Planning Commission and the City's Technical Traffic Committee for their comments. The CVAG Executive Committee will render their decision regarding their support of a roundabout at Avenue 52 and Jefferson Street on June 28, 1999, based on input provided by CVAG staff and the recommendations of the TAC and Transportation Committees. With this information, the City Council will be able to make a more informed decision regarding the intersection control at Avenue 52 and Jefferson Street prior to awarding the Jefferson Street contract. On June 22, 1999, the County of Riverside Board of Supervisors approved Amendment No. 2 to the MOU. The City of Indio has scheduled the consideration of Amendment No. 2 to the MOU for their June 29, 1999 City Council Meeting. On June 22, 1999, the City's Planning Commission reviewed the roundabout concept; and, recommended that the City Council award the Jefferson Street contract, including the installation of a modern roundabout at the intersection of Avenue 52 and Jefferson Street. On June 23, 1999, the City's Technical Traffic Committee reviewed the roundabout concept; and, recommended approval of the installation of a modern roundabout at the intersection of Avenue 52 and Jefferson Street. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Award a contract in the amount of $6,876,876 to Granite Construction Company for construction of Jefferson Street Improvements from Avenue 54 to Highway 1 1 1 with a signalized intersection at Avenue 52, Project No. 99-05; or 2. Award a contract in the amount of $6,866,566 to Granite Construction Company for construction of Jefferson Street Improvements from Avenue 54 to Highway 1 1 1 with a roundabout at Avenue 52, Project No. 99-05; or 3. Provide staff with alternative direction. 005 T:\PW DEPT\COUNCIL\1999\990629a.wpd Respectfully submitted, Chris A. Vogt s;' Public Works Director/City Engineer Approved for Submission by: Thomas P. Genovese City Manager Attachments: 1 . CVAG MOU, Amendment No. 2 2. Bid Comparison Summary 00 T:\PW DEPT\COUNCIL\1999\990629a.wpd ATTACHMENT 1 AMENDMENT NUMBER TWO CITY OF LA QUINTA - CITY OF INDIO - COUNTY OF RIVERSIDE CVAG REIMBURSEMENT AGREEMENT AND MEMORANDUM OF UNDERSTANDING PROJECT FINAL DESIGN ENGINEERING SERVICES, RIGHT-OF-WAY ACQUISITION AND CONSTRUCTION "JEFFERSON STREET FROM AVENUE 54 TO HIGHWAY I I I " THIS AMENDMENT NUMBER TWO is made and entered into this day of , 1999, by and between the City of La Quinta ("La Quinta"), the City of Indio ("Indio"), the County of Riverside ("County"), and the Coachella Valley Association of Governments, a California joint powers agency ("CVAG"). This amendment provides for the funding and reimbursement of expenditures in addition to those previously authorized under the terms of the existing Reimbursement Agreement and Memorandum of Understanding, executed April 29, 1997 ("MOU"). All other provisions in the MOU and Amendment Number One thereto shall remain in force. Under the terms of the MOU, $600,000 was authorized for Preliminary Engineering of "Jefferson Street, from Avenue 54 to Indio Boulevard". This amendment amends the prior authorization for funding and reimbursement to include the final engineering, right-of-way acquisition and construction project cost for "Jefferson Street_ from Avenue 54 to Highway 111", which is currently estimated to cost $15,061,660 ($698,437 for Final Design Engineering Services and $14,363,223 for Construction). The revised Scope of Services, Estimate of Cost, and updated Project Schedule are attached hereto as Exhibits "A", "B" and "C", which are incorporated into herein by this reference. The parties recognize that the estimated costs outlined on Exhibit "A" are estimates only, and that the actual costs may exceed those costs. The parties agree that the reimbursement formula outlined below applies to the total allowable project costs for the final engineering, right-of-way acquisition and construction project cost for "Jefferson Street, from Avenue 54 to Highway 111". CVAG agrees to pay 75% of allowable project costs for the La Quinta portion of the project. La Quinta agrees to pay the balance of the project costs for the La Quinta portion of the project as costs are incurred. CVAG agrees to pay 100% of all allowable project costs for the Indio portion of the project. Indio agrees to pay any disallowed project costs for the Indio portion of the project costs. If La 119/015610-0008/3267995.3 a06/08/99 1 v 3 • Quinta has incurred the disallowed project costs for the Indio portion of the project, Indio shall pay the disallowed amount to La Quinta within ten (10) business days of receipt of La Quinta's written request for payment of said amount. Indio agrees to repay up to 25 % of any funds advanced by CVAG over five (5) years beginning with an initial payment on July 1st, 2000. This estimated first year repayment is $270,054, which is 20% of the Preliminary Engineering and Final Design, Construction of Jefferson Street (Avenue 54 to Hwy 111) cost. A CVAG-City of Indio repayment agreement is attached hereto as Exhibit "D" and incorporated herein by this reference. CVAG agrees to process the requests for payment or reimbursement of La Quinta and Indio within seven (7) days of receipt. CVAG agrees to make all required payments of allowable project costs within twenty-one (21) days of receiving the requests. It is the responsibility of La Quinta and Indio to take all actions necessary to acquire the right-of-way needed for the project within their respective jurisdictions. Nothing herein constitutes a commitment by any party hereto to exercise or utilize any powers of eminent domain for any acquisition of any property or property interest necessary or appropriate for implementation of the construction project, or for any purpose. All parties hereto understand and acknowledge that the exercise of eminent domain is dependent upon a consideration and passage of a resolution of necessity, which constitutes a legislative determination by the governing body of the condemning agency, and such determination cannot be made prior to the conduct of a noticed hearing at which affected property owners have an opportunity to appear and be heard regarding the findings required to initiate eminent domain proceedings. All such findings lie within the legislative discretion of the governing body of the agency considering condemnation. Neither agency hereto has by any representation or agreement herein, nor by any action undertaken pursuant hereto regarding preliminary project planning, investigation of potential right of way acquisition, appraisal, or extension of offers to purchase any property or property interest, acquisition of such interests committed herein to proceed with eminent domain proceedings regarding any particular property, or at all. In the event acquisition of all property interests necessary or appropriate for construction of the project as currently contemplated is impossible or otherwise does not go forward, the parties agree to cooperate reasonably in any redesign, modification, or termination of the project, as the parties may at that time deem appropriate. The parties agree that all costs associated with the acquisition of right-of-way related to the final approved project design, including, but not limited to, filing fees, service of process, attorneys' fees, deposits of just compensation, appraisal fees, expert witness fees, escrow costs, costs of clearing title, deposition costs, exhibit costs, jury fees, litigation costs, and funds for settlements and just compensation aw-:rds and judgments shall be allowable project costs subject to payment or reimbursement as set forth above. The other allowable project costs are as outlined in Attachment 1 to the MOU, CVAG's Regional Arterial Program, Project Cost Determination and Expense Eligibility. La Quinta agrees to defend and indemnify Indio and CVAG for any claim or action arising out of or relating to La Quinta's failure to timely acquire the necessary right-of-way for the project. 119/015610-0008/3267995.3 a06/08/99 2 v 1 009 Indio agrees to defend and indemnify La Quinta and CVAG for any claim or action arising out of or relating to Indio's failure to timely acquire the necessary right-of-way for the project. CVAG agrees to defend and indemnify La Quinta and Indio for any claim or action arising out of or relating to CVAG's failure to timely provide the funding of any allowable project cost as set forth in this amendment. Inasmuch as this phase of the project is not located in the unincorporated portion of the County, the County has no financial obligation with regard to the additional work authorized in this amendment. The parties hereto have caused this Amendment number two to be executed by their duly authorized representatives on this date. ATTEST: By: Saundra Juhola, City Clerk APPROVED AS TO FORM: By: Dawn C. Honeywell, City Attorney ATTEST: By: City Clerk APPROVED AS TO FORM: By: City Attorney 119/015610-0008/3267995.3 a06/08/99 3 CITY OF LA QUINTA By: John J. Pena, Mayor CITY OF INDIO By: Chris Silva, Mayor 010 ATTEST: By: By Gerald A. Maloney, Clerk Board of Supervisors County of Riverside APPROVED AS TO FORM: Riverside County Counsel CVAG By: Patricia A. Larson, Executive Director APPROVED AS TO FORM: I0 Toni Eggebraaten, General Counsel 119/015610-0008/3267995.3 a06/08/99 5 COUNTY OF RIVERSIDE LIM By Supervisor John Tavaglione Chairmain, Board of Supervisors By: Marilyn Glassman, Chair 0 1 61- EXHIBIT "A" - AMENDMENT TWO SCOPE OF SERVICES PROJECT FINAL DESIGN ENGINEERING SERVICES AND CONSTRUCTION "JEFFERSON STREET FROM AVENUE 54 TO HIGHWAY I I V FINAL ENGINEERING SERVICES - PHASE I The City of La Quinta shall serve as "Lead Agency" for the Final Engineering Services. Based on the Preliminary Engineering Report, prepare roadway plans, specifications, and estimates (PS&E) for Jefferson Street from Avenue 54 to Highway 111. Professional Engineering services include all necessary survey, legal description, and associated right-of-way maps and plats to undertake right-of-way acquisition. RIGHT-OF-WAY ACQUISITION Subject to the limitations set forth in the Second Amendment to the MOU, the City of La Quinta and the City of Indio shall each be the "Lead Agency" as to the acquisition of the necessary right-of-way within their respective jurisdictions. • •e The City of La Quinta shall continue to serve as "Lead Agency" with regard to the construction of Jefferson Street from Avenue 54 to Highway 111. 119/015610-0008/3267995.3 a06/08/99 6 013 EXHIBIT "B" - AMENDMENT TWO ESTIMATE OF COST PROJECT FINAL DESIGN ENGINEERING SERVICES AND CONSTRUCTION "JEFFERSON STREET FROM AVENUE 54 TO HIGHWAY I I I" Design Engineering and Construction estimates, for the Jefferson Street from Avenue 54 to Hwy 111, are provided by the City of La Quinta as follows: ITEM BUDGET ($1 Final Engineering Services% Design Engineering Services 665,178 Administration (5 %) 33,259 Final Engineering Subtotal 698,437 Construction: City of La Quinta Jefferson Street (Ave 54 to Ave 52) 3,665,000 Jefferson Street (Ave 52 to Ave 50) 2,712,000 Jefferson Street (Ave 50 to Ave 48) 1,459,000 Jefferson Street (Ave 48 to Hwy 111) 528,000 City of La Quinta Total $8,364,000 City of Indio Jefferson Street (Ave 50 to Ave 48) 1,645,000 Jefferson Street (Ave 48 to Hwy 111) 2,730,000 City of Indio Total $4,375,000 Administration (@5 %) 636,950 Construction Engineering (@8%) 987-273 Construction Subtotal $14,363,223 TOTAL $15,061,660 CVAG share = 75 % of eligible total cost. Any excess property purchased to secure the necessary Right -of -Way will be deemed to belong to the regional Arterial Program. Excess Property will be disposed of in the best interests of the Regional Arterial Program, in order to recapture funds expended. 119/015610-0008/3267995.3 a06/08/99 7 014 JURISDICTIONAL REIMBURSEMENT SCHEDULE - AMENDMENT TWO PROJECT FINAL DESIGN ENGINEERING SERVICES AND CONSTRUCTION "JEFFERSON STREET FROM AVENUE 54 TO HIGHWAY I I I " (AGENCIES SHALL HAVE A FUNDING POLICY ACCEPTABLE TO CVAG IN PLACE PRIOR TO CONSTRUCTION) Below is the estimated reimbursement amounts for the following Phases: - Preliminary Design Cost (Original Agreement): $ 600,000 - Final Design Engineering and Construction Cost: $15,061,660 (This Amendment number 2) JURISDICTION ESTIMATED REIMBURSEMENT TOTAL REPAYMENT AMOUNT ( % Proj Cost)* SCHEDULE Preliminary Final Design/ Design Construction City of La Quinta $ 90,000 City of Indio $ 57,000 $2,472,145 $2,562,145 ** $1,293,270 $1,350,270 *** Total Agencies Share $150,000 3,765,415 $3,912,415 * This estimated reimbursement amount is for the Preliminary Engineering of Jefferson Street from Avenue 54 to Indio Boulevard, and for the Final Design and Construction of Jefferson Street from Avenue 54 to Hwy 111. The County of Riverside is not part of this amendment, therefore, their reimbursement share of preliminary engineering will appear in the Final Design and Construction of Jefferson Street from hwy I I I to Indio Boulevard agreement. ** CVAG agrees to pay up to 75% of allowable project costs for the La Quinta portion of the project. La Quinta agrees to pay the balance of al' droject costs for the La Quinta portion of the project. *** CVAG agrees to pay 100% of allowable project costs for the Indio portion of the project. The City of Indio agrees to pay any disallowed project costs for the Indio portion of the project cost. The City of Indio agrees to repay up to 25% of any funds so advanced by CVAG over five (5) years beginning with an initial payment on July 1st, 2000. The estimated first year repayment is $270,054, which is 20% of the Preliminary Engineering and Final Design, Construction of 119/015610-0008/3267995.3 a06/08/99 E3 01 Jefferson Street (Avenue 54 to Hwy I11) cost. A CVAG - City of Indio repayment agreement is attached as Exhibit "D" - Amendment Two. .ti 119/015610-0008/3267995.3 a06/08/99 9 EXHIBIT "C" - AMENDMENT TWO UPDATED PROJECT SCHEDULE PROJECT FINAL DESIGN ENGINEERING SERVICES AND CONSTRUCTION "JEFFERSON STREET FROM AVENUE 54 TO HIGHWAY 111" (FROM INFORMATION PROVIDED BY CITY OF LA QUINTA) Final Plans, Specifications and Estimates Bid Period Contract Award Notice to Proceed Project Completion 119/015610-0008/3267995.3 a06/08/99 10 May 14, 1999 May 19, 1999 - June 11, 1999 June 15, 1999 December 1999 October 31, 2000 017 EXHIBIT "D" - AMENDMENT TWO CITY OF INDIO - CVAG REPAYMENT SCHEDULE The following is the estimated five (5) year City of Indio repayment to CVAG. The repayment amounts below are 20% of the total cost of the Preliminary Engineering and Final Design, Construction of Jefferson Street for the segment from "Avenue 54 to Hwy 111 " only. The Final Design, Construction of Jefferson Street (from Hwy 111 to Indio Boulevard) will be administered at a future agreement. City of Indio Repayment Amount* City of Indio Repayment Schedule $ 270,054 FY 2000/2001 $ 270,054 FY 2001/2002 $ 270,054 FY 2002/2003 $ 270,054 FY 2003/2004 $ 270,054 FY 2004/2005 Total $1,350,270 * These amounts are for the Preliminary Engineering and Final Design, Construction of Jefferson Street (Avenue 54 to Hwy 111) cost. 119/015610-0008/3267995.3 a06/08/99 11 018 IJJN-14-98 09:32 FROW T-037 PAWS F-nAA � a r N $�$S.8g888oE8S.a 8$8S 3 $SE888 T N � D 8 asses$ss$.sas.ss$.ssgsssasssssasss sssssY � 5 e N s $ 8 ^o s s 8 8 s 8p 8 a 8 Ss a $ 8s $ 88 98 $ �fi5 b H pO G H essassEss$ssasssssas$sssssgsYss asssa4$ e M5 a�] {Yf�,j RG 11iiN ,n N N YI` N �W/fl' Q G M N s ssssasasa48sssssgasgssssss?s s a.a4g � • g _� g S r: ���� M N N N N N N N N N M g.s$gsss��s4ssss.sRsassgye�s£aasQsQag2ssapssssa � asa8 Es�883pgg8g8888$e"8.ssEEa8.E 8 sasses 4 S 8 a 8 a $ a E$ 8. 8 1%, � e�1� VQRf Ca AI W r�l ry � .� � ac � � � X � O � : � CS G � ❑ q fS O � P G GS G7 � � � O 0. � a :t _ .+ �n v n iv .'". .v. A VENT 2 u 0. 01- J'UN-14-99 09:33 T-037 P.03/05 F-066 pp ppFROM- p p n A p Y p ` $' S � v 'P S ow } � o � � � i i� 8♦ n�' � �t 1�� Oa $ a O N a e N N M Ct w s n N M N„ M N f M Y N N ti R g En+ $ S 8 y, N w N � s .�sf5 s a s s s oa ds per$+ s Qs s e e � �8a{ ,qs{ s hs s s aQ sg � sa s s Msq cas s s �Y h a s YI yCk H N a u R$ 8 Q s 8 8 8 S tea${ 8 8 8 QQ Y 8 8g Sp ppp 8 E S 8 8 v 8 8= sassai$Rssag.ass�ssa.a 4sassgs�s.a =gs$ g $s e s sus d� iif N �w N M �e �� N M M • N T � yyy777 � N M �j N �l M M e r �n5 d r �W � O w � � � � H �+1 b N S � A � � � Q h M � � �♦1 M � � � � F � � � ' ` � S� O oG, N( LI F �j e G $ p QQ QQQ 1 b w M � g ssssszssss�aass �;sssgaYsas.sag � sQQa � a s,sjag 0 e r t ry r ry C � ciI�i � L � ■ Pr bEl �c 3AS g .r 0"oV c!UN-14-99 09:34 FROM- $ $ $ $ 8 8 g 8 S 3 o a o T-037 P.04/05 F-066 fig$ Rq : �{ppf. Yqp� •Y� � pQQ � � (� �vy�aa RR N' 1ryV ad .�1 �f ♦NY O (K��1 f eV eFi d Q N N �w E M N VI A � e s R sR 2 - ` p �f MM F 7 u a IIa s ssass s A s s $ a$ g a s a s$ a a n a n s s H T a � � Y R F h F ~ F n n e 4 m ^ m q a m W M JINN-14-99 09:34 FROM- T-037 P.05/05 F-066 R■IF o w r ca x— •, m .4 TW�t 4 stP Q" AGENDA CATEGORY: BUSINESS SESSION: COUNCILIRDA MEETING DATE: June 29, 1999 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Consideration of a Report on Cable TV PUBLIC HEARING: Franchise Transfer Agreement RECOMMENDATION: As deemed appropriate by the City Council. FISCAL IMPLICATIONS: To be determined. Staff has asked that MediaOne reimburse the City for expenses related to reviewing and responding to the transfer request. In addition, some cities have asked for compliance or damages relating to non-compliance of existing franchise terms. A review of the City of La Quinta's franchise agreement with MediaOne suggests that such is probably not an issue in La Quinta with this transfer. Finally, the terms of the transfer agreement may impact user rates. Staff has been attempting to negotiate terms that will minimize or negate the impact of this agreement on consumer rates. BACKGROUND AND OVERVIEW: City staff received notification from Time Warner Cable that it had entered into an Asset Exchange Agreement with MediaOne on March 2, 1999. Federal law provides for a 120 day review period during which time the City must act on the transfer request. The review period for the pending request expires on June 28, 1999. Staff forwarded the transfer request to Mr. Bill Marticorena, special legal counsel with Rutan and Tucker, upon receipt. Mr. Marticorena has subsequently advised staff and negotiated legal points specific to the proposed agreement on the City's behalf. The City Council adopted a Resolution on May 18, 1999 which, in effect, authorized the City Manager to reject the transfer without prejudice for specific reasons. On June 7, 1999, City staff and special legal counsel met with [61. representatives from Time Warner and MediaOne in an effort to resolve key issues. At that meeting, staff asked the cable representatives to grant a time extension through July 21, 1999 to allow adequate time to complete negotiations, draft an agreement and schedule the matter for City Council consideration. The meeting concluded with each of the parties pledging to research or address certain issues in an effort to resolve outstanding matters. Subsequent to the June 7, 1999 meeting, staff, special legal counsel and the cable representatives have continued discussion on pertinent issues. However, not all matters have been resolved as of this writing. Outstanding issues include matters relating to the following: • Assignment of the Franchise to Summit Cable Services of Georgia, Inc. (apparently a Georgia corporation and subsidiary of Time Warner); • Recovery of acquisition costs as a basis for increasing regulated Basic Service Tier rates; • Transfer Agreement procedural and substantive legal protections; • Programming; • Selection of the MediaOne or Time Warner "Social Contract", and identification of differences therein; • Staff time and out-of-pocket expense reimbursement; and • Refund Plan for possessory interest refunds from the County of Riverside. A draft agreement has been forwarded to the cable representatives for their review (Attachment 1). MediaOne and Time Warner have granted an extension only until July 7, 1999 and have pledged to provide additional information "within the next couple of days" (see Attachment 2). FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Authorize staff to continue current negotiations with Time Warner and MediaOne and forward any mutually acceptable agreement to the City Council for consideration at the earliest opportunity. If no agreement is reached within the extended deadline timeframe, the City Manager shall deny the transfer agreement as authorized previously by the City Council on May 18; or 2. Continue this matter until the July 6, 1999 meeting to allow the City's special legal counsel to address any questions and/or respond to any new proposals submitted by Time Warner and MediaOne; or 3. Review the materials provided with this report and provide staff with policy direction as deemed appropriate; or 4. Provide staff with alternative direction. Respectfully submitted, Mark Weiss Assistant City Manager Approved for submission by: G Thomas P. Genovese City Manager Attachments: 1 . Draft Transfer Agreement transmitted June 24,1999 2. MediaOne time extension dated June 22, 1999 003 Jun-24-99 05:15pm From-RUTAN & TUCKER LLP T-1 ATTACHMENT i R►_.1TAN & TU CKF=:R, LLP ATTQRNEYS -T L.4w A Y°•K7h�it5n{T+ INCLU��rvV Y{2u FEu519 MILL GG RPa RHT,L h� G„ ,°.NTGry BOu:. c'v.aR G_ �uiTE ,wD:] ni[OrvnRG n -PCB n mwL G MRd�n nVT9n �Onn Y n.. R.,G..i ,fir w,P nw w vJ`n G.n G,RECT Ti?F O R,: q6 �� -.aR- w. Cp[Cr. CCSTM. mLyA. LML, Ft7n N,-`+ V^.\ini n ,e}CPa D tnwn HTn ...Cn.4C^r •TC[n TF.tit F'YSU rvG i+,-l; 6n.-3,G0 R,CnnRD � i�•� TnpnnC � ,awn RS a J-N[,.. RJae<T c • nnnn . rhw.Lc� R- - [n-cn - IAG7e,.+�Cfi !7+41 �4c•�J�;: Tne..ni • an.•ncc R• n�....Tnc�,ncR,. �NTekhET wWW rucan.com nLC nni� D MOH n n en11n [R ,nn v. n•��n• cRracoT .. ..nc , RvTnn 6T�w wJ�tOTTr .w G Tndr RODn ,�fORD nv Pam•_- }R ,viG•.DBq, O\Yhr 'F ROwLR rv.CCR n ku il�LR nvw�.. ,e++�--tea. v.p � n.R[ ...•P rycG3JRov[ - T,CakC�w +wn ii~H-nOr.jj •-'• nnTTniw M1 Nu3C W n41aM � GRuan +CLf1iGv wCRTn[,-ten n.GnA•.T nDnhwK RJ•CRT G Jr�h June 24, 1999 Via Facsimile and U.S. Mail Jim Fellhauer President San Diego Division Time Warner Cable 810 Noah Farrell Drive Palm Springs, CA 92262 K. James Petro Acting vice President/ Corporate and Legal Affairs Mediaone 41725 Cook Street Palm Desert, CA 92211 L, 'C n T }Canna Ln ARC �n -Ckv TT? RnTry �Cn nv!•;OF -�- Rnv 3,CvLRb n T!'4Ch<!. ' Gn.vaGn�n. - .rvTTin• Di•Rn DvMM1 LTCF.n -uyC (.7 C nC GC�n w nCq,w.Twwr .nn.Pn e..0 [nr+lLn - �Dii1'n ♦ -�4w �n~.3Jn AiyT3nJ -•Khh,f;k n,�C3•Cwi.w9 rv, [w � 4C rCR<' M[�Rn � BilGq Oh•w ❑d..aw � p[n. ron - rRLa ,� nD[nq n.tn�P A wknc- TODDO.if•� rwRnq nw�p vJ: •+ rro.T�o..� cc.nh.w.Tw-.n cPn�nc mcs�rCinr, „- Re: City of La Quinta, California (the "City"); FCC Form 394, dated March 1, 1999 (the "Application") Relating to Assignment of Cable Television Franchise (the "Franchise") from Mediadne Enterprises, Inc. (the "Transferor") to Summit Cable Services of Georgia, Inc. (the "Transferee") (the "Transfer") Gentlemen: Please find enclosed a draft of a Transfer AgreemenT for your review and comment. This draft Transfer Agreement incorporates same, but not 41, of the handwritten comments which 224/015610-(k V3'-Y739j5 a%,2A.199 005 06-24-99 17:15 RECEIVED FROM:+ P•02 Jun-24-99 05:16Pm From-RUTAN & TUCKER LLP, + T-963 P 03/14 F-507 RUTAN & TuCKF-R, L-1-F ATTOF2NF-Y5 / T 'AV P..nTrv�.-.--P n �_�.o,nJ r-Ra�L3iJn..44i+ G T.anG Jim Fellhauer K. James Petro June 24, 1999 Page 2 were provided by you in relation to the Indian Wells Transfer Agreement. Very truly yours, RUTAN & TUCKER, LLP iltiam M. Mardcorena WMM:vjb Enclosure cc: Tom Genovese, City Manager Marls Weiss, Assistant City Manager Britt Wilson, Assistant to the City Manager Dawn Honeywell, Esq., City Attorney Bob Rubery, General Manager, MediaOne 124'Ul-)6164 )3273815_ 06PZ4199 06 06-24-99 17:16 RECEIVED FROM:+ P.03 Jun-24-99 05:16pm From-RUTAN & TUCKER LLP, + T-963 P.04/14 F-507 AGRRSG:NT RELATING TO THE CONSENT OF TZEE CITY OF LA QUINTA, CALIFORNIA TO THE TRANSFER OF THE FRANCRISE AGREMU= ULD BY MEDIA ONE ENTERPRISES, INC. This Agreement (the "Transfer Agreement") is entered into this day of _ 1999, between and among the City of La QuinLa, California (the "City"), and Media One Enterprises, Inc., (the "Transferor-"), Summit Cable Services of Georgia, Inc., (the "Transferee"), and Time Warner Cable (the "Guarantor")_ WHEREAS, City Council entered into a Franchise Agreement (the „Franchise") with a predecessor -in -interest of the Transferor pursuant to the provisions of the La Ouinca Municipal Code (the „Ordinance") to operate a cable television system within the City (the "System"') ; and WHEREAS, the Transferor has filed a written application to the City, (the "Application") wherein it has requested the consent of the City to the assignment of the Franchise to the Transferor (the "Transfer"); and' WHEREAS, it is the intent of the City to approve the transaction whereby ownership and control of the Franchise and the cable system (the "System") shall be held by the Transferee and guaranteed by the Guarantor; and WHEREAS, -the City Council of the City has reviewed the Transfer as well as all relevant documents, Staff Reports and recommendations; and WHEREAS, pursuant to the Ordinance, the Transfer is Subject to written consent of the City Council; and 17.a�O1S61i}OD04l3273i211 at7D1Zq�94 007 06-24-99 17:16 RECEIVED FROM:+ P.04 WHEREAS, based upon the evidence presented to the City Council, it has determined that it would be in the public interest to conditionally approve the Transfer. NOW, THEREFORE, it is agreed by and between the parties as f o l l ows 1. The Cir-y Council of the City hereby gives its consent and approval to the Transfer as described herein. 2. The granting of this consent to the Transfer does not render or waive the right of the City to approve any subsequent change irs the ownership of the Franchise or the ownership or legal or operating control of the Transferee where required by the Ordinance and there shall be no further material change, amendment, or modification of the ownership or equity composition of the Transferee which requires advance consent of the City pursuant to the Ordinance without further written consent of the City Council. 3. By executing this Transfer Agreement, the Transferee agrees and acknowledges 'that (1) this Transfer Agreement and the approving resolution is not a new franchise agreement, the granting of a franchise, or the renewal of the existing franchise, but rather is exclusively an agreement to transfer control of the franchise and said Transfer Agreement neither affects nor prejudices in any way the City's or Transteree's rights under the Franchise; (2) under Section 625 of the Gable Act, the term "commercially impracticable" means, with respect to a cable operator, that it is commercially impracticable for the operator to comply with such requirement as a result of a change in conditions which is beyond the control of the operator and the nonoccurrence of which was a basic assumption on which the requirement was based. Transferee agrees that in judging whether particular obligations are commercially impracticable, the parties will not consider the 124s01501040DW3273421 ) a0 Z4M - 2 - 06-24-99 17:16 RECEIVED FROM:+ P•05 008 Jun-24-99 05:16pm From-RUTA.N & TUCKER LLP, + T-963 P 06/14 F-507 economic burden of debt service and equity requirements incurred directly or indirectly to fund the Transfer no the extent such debt service and equity exceeds the debt service and equity requirements of the Transferor as they existed prior to the Transfer. 4. By executing this Transfer Agreement, the Transferee hereby accepts all the Germs and conditions of the Franchise, the Ordinance, that "Agreement relating to the Consent of the City of La Quinta, California to the Transfer of Control of the Pranchise Agreement Granted to Providence Journal Company", dated as of , 1995, (the "1995 Transfer Agreement"), that "Agreement Relating no the Consent of the City of Ira Quinta, California to the Transfer of Control of the Franchise Agreement Granted to Continental Cablevision, Inc., to U-s_ West, Inc_", dated as of , 1996 (the "1996 Transfer Agreement"), any lawful orders or directives of any administrative agency relating to the Franchise or the system including, but not limited to, the Federal Communications Commission (the "Commission") and this Transfer Agreement (collectively, the 'TFranehise pOCUMents") and Transferee represents and warrants that it has examined -the requirements of the Franchise Documents as well as the applicable federal, state, or local laws or regulations, and agrees to abide by all the terms and conditions thereof_ The 'Transferee agrees and acknowledges that it has found the Franchise Documents apeci.fied herein to be legally sufficient, enforceable, valid, and binding and accept the same without condition or reservation. Transferee shall assume all rate refund obligations and possessory interest tax refund liability, if any, both actual and conCingent, of the Transferor. The Transferor agrees to cooperate and furnish relevant information in relation ro any audit and/or investigation relative to any audit and/or investigation relative to breaches and/or defaults accruing subsequent to the Transfer. 1:3rQ3S6lR P( 137737Z1-1 406124/99 - 3 - 009 06-24-99 17:17 RECEIVED FROM:+ P•06 JUII-44—UU U�:IiPIn rFUlll—KUTAll 4 I04KCK LLr 7 I`,Ju.7 r.Uii 4 r-JUI To the extent that the Transferee or Guarantor, or any related person or entity, challenges tte validity cr iat-erpretation of the Franchise Documents in the future in any administrative proceeding or court of law, such a challenge shall be Subject to all defenses which would have been available to the City had the Transferor, or any related person or entity, brought said challenges) including, but not limited to, waiver, estoppel, convent, unclean hands and accord and satisfaction, as well as any and all defenses independently available to the Transferee or Guarantor. 5, The parties expressly agree and acknowledge that Paragraph _ of the 1996 Transfer Agreement, and the terms and conditions thereof, are applicable and binding upon, the Transferee ir, relation to this Transfer for the period from the Effective Date of this Transfer Agreement until the earlier of a substantive modification of the Federal Communications Commission's existing Cost -of -Service Regulations so that Transfer Goodwill, or a portion thereof, is expressly provided as being includable in the calculation of any Regulated Rate or the Fifth ATmiversary of the Effective pate of this Transfer Agreement- 6- on or before the Effective Date, the Transferor, or its designee, shall pay to the City the slam of Dollars ($ ) which amount is paid in, and only in, complete satisfaction and reimbursement of all third -party and Staff costa incurred by the City in relation to the Transfer (the "Payment"). Tn regard to said Payment, the parties expressly agree and covenant as follows: A. The Payment is within the exclusions from the term "franchise fee" set torch in Section 622 (g) (2) of the Cable Act (4? U-S.C. §542 (g) (2) and 1:gr01S4]0-�90M3�73g2I.1 x061:�199 — i — a 06-24-99 17:17 RECEIVED FROM:+ mom (i1,0 B. The Payment shall not be deemed to be in the nature of a tax, and shall be in addition to any and all taxes of general applicability or other lees or charges which the Transferor, the Transferee, or the Guarantor- shall be required to pay to the City or to any state or federal agency or authority; and C. Neither the Transferor, the Transferee nor the Guarantor shall have or make any claim or any deduction or other credit of all or any part of the amount of the Paymentt to be made pursuant to the franchise from or against any City or other governmental taxes of general applicability (including any such tax, fee, or assessment imposed on both utilities and cable operators or their services but not including a tax, fee, or assessment which is duly discriminatory against cable operators or cable subscribers or income taxes) or other fees or charges which the Transteror, the Transferee, or the Guarantor is required co pay to the City or other governmental agency; and D. Neither the Transferor, the Transferee, nor the Guarantor shall apply or seek to apply all or any part of the amount of the- Payment to be made pursuant to this Transfer Agreement as a deduction or ocher credit from or against any City or other government raxea of general applicability (other than income taxes) or other fees or charges; and E. Neither the Transfer, the Transferee nor the Guarantor shall apply or seek to apply all or any part of the amount of any City or ocher government taxes or other fees or charges of general applica-bility (including any such tax, fee, or assessment imposed on both utilities and cable operators or their services) as a deduction or other credit -from or against the payment to be made pursuant zo this Transfer Agreement.; and Iz4 fl�seio-oL70at3z73a2i.i .0bi24r53 - 5 - 06-24-99 17:17 RECEIVED FROM + P•08 (At Jun-24-99 05:13pm From-RUTAN & TUCKER LLP, + T-963 P 09114 F-507 7_ Tn regard to the Payment made to the City pursuant to this Transfer Agreemenz, the Transferor, Transferee, Guarantor, or any affiliate party will nor pass through, externalize, or otherwise attempt to add the costs of the Payment pursuanL to Paragraph 6 hereof, to any regulated rate. 8. Transferee represents that the letter of credit, insurance and banding required by the Franchise Documents have been obrained, and uha1~ there will be no gaps in required coverages or liabilities. Transferee will continue to wintain the letter of credit and bonds that it was required to maintain under the Franchise notwithstanding the Transfer. 9 _ Transferor and Transferee agree to defend, indemnify and hold the City harmless against any loss, claim, damage, liability or expense (including, without limitation, reasonable attorney's fees) arising out of this Transfer Agreement and/or incurred as a result of any representation or warranty made by Transferor or Transferee herein or in the application or in connection with the City's Review of the Transfer which proves rr) be untrue or inaccurate in any material respect. In the event the City receives any such notice of a loss, claim, damage, liability or expense, the City shall promptly notify Transferor and Transferee which shall, at the sole discretion of the City assume sole and direct responsibility for defending against any such loss, claim, damage, liability or expense_ 10. This consenL is not an affirmation that Transferor is currently in compliance with the Franchise Agreement. Any consent given by the City in this Transfer Agreement and any resolution approVing this Transfer Agreement is not a finding that, after the Transfer, Transferor or Transferee will be financially, Technically or legally qualified, and no inference will be drawn, positively or negatively, as a result of the absence of a finding on this issue_ 124M5b10-0003i3273421.1 aWi24i99 - 6- q ? 1 06-24-99 17:18 RECEIVED FROM:+ P-09 Jun-24-99 05:18pm From-RUTAN & TUCKER LLP, + T-963 P 10114 P-507 Any consent is therefore made without prejudice to, or waiver Of, the City's right to fully investigate and consider Transferor or Transferee's financial, technical and legal qualifications and any other relevant considerations during any proceeding including by way of example and not limitation, any future transfer or renewal proceeding. Without limiting the foregoing, any approval of the Transfer is not a finding or representation that the franchise will be renewed or extended (and approval Shall not create an obligation to renew or extend the Franchise); that Transferor or Transferee is "financially, technically or legally" qualified to hold a franchise; or that any other renewal issue that may arise with respect to past performance or future cable -related needs and interests will Oe resolved in a manner favorable to Transferor or Transferee. Unless provided for within this Transfer Agreement, nothing in this Transfer Agreement shall constitute a waiver of any of Transferor's, Transferee's, Guarantor's, or City's rights or remedies under federal, state or local law_ IT. The Transferee aad Guarantor expressly agree that any litigation arisin!Gj from or relating to the Franchise Documents shall be filed -and liniganed exclusively in the Superior Court, County of Riverside, State of California or, if jurisdictional requirements are otherwise met, the Federal District Court for the Central District, California_ Transferee and Guarantor hereby jointly accept service of process by way of service upon the General Manager of the local oftice of the Transferee. 12, Guarantor hereby guarantees all of the obligations of the Franchise Documents as a joint and several primary liable party. Guarantor hereby waives any obligation which the City might possess to exhaust its remedies against the Transferee as a condition of enforcing obligations against the Guarantor pursuara.c to the Franchise Documents. 1?41415010-OM4132734%-1 uOhJU199 - 7 - 013 06-24-99 17:18 RECEIVED FROM:+ P.10 Jun-24-99 05:19pm From-RUTAN & TUCKER LLP, T-963 P 11114 F-507 13. Any violation of this Transfer Agreement or any of the terms contained in the Franchise Documents shall be deemed to be a violation of the Franchise and the Ordinance. 14. Transferee shall maintain a local office, staffed by live personnel which are employees of the Transferee, at which, at a minimum, subscribers can pay bills, receive or exchange equipment, and receive information with a six (6) mile radius of the intersection of Washington Street and Highway 111. 15_ In addition to the Payment, and any other payment required by this Transfer Agreement., Transferor shall reimburse the City the actual costs of an independent franchise fee audit for Fiscal Years 1995-1996 through 1998-1999 within thirty (30) days of the submission of a City invoice if, and only if, the audit concludes that the City has been underpaid franchise fees by two percent (2t) or more. 'Transferor and Transferee shall cooperate with the City's audit of franchise fees_ The City shall reasonably attempt to complete a final audit report (tile "Audit Report°) of franchise fees owed by Transferor within one hundred eighty (180) days of the Effective Bate of this Agreement. 1f the Audit Report finds that Transferor owes the City underpaid franchise fees under the Franchise, and the difference between the amount paid and the amount determined by the City's audit is less than five percent (5!�) of the amount paid to the City, or if Transferor does not dispute the results of the City's audit, then Transferor shall pay the City the difference in the amount determined to be owed by the Audit Report_ This obligation is guaranteed by the Transferee. Sf the Audit Report determines that the amount due and owing is more than five percent (5%) greater than the amount paid to the City and Transferor disputes the audit results, the di:gpute shall be submirned to a mutually agreed upon, independent certified public accountant ("CPA") whose determination of amount of franchise fees due shall be final and binding on the parties. The costs of hiring 124:015510-0004i3273421.1 sGW24jW - 8 - 014 06-24-99 17:19 RECEIVED FROM:+ P•11 Jun-24-99 05:19pm From-RUTA.N & TUCKER LLP + T-963 P 12/14 F-507 the CPA shall be borne by Transferor. Any amounts determined by the independent CPA to be owed no the City shall be paid to the City within thirty (30) days of such determination. 16_ Based upon its investigation and analysis, Transferor represents and warrants that: A. Neither the Transferor nor any party related thereto has received any possessory interest tax refunds from the county of Riverside, California. [Will modify based upon state of facts.] 8. No possessory interest taxes were included in any FCC Form rate filing subsequent to 1995 and that 110 amount of refunds received for possessory tax overpayments are due to customers_ Transferee agrees that, in the event the foregoing statements prove to be untrue or inaccurate in any material respect, Transferee shall guarantee full payment by Transferor of any subscriber refund liability which is established by a final order of the Commission or a court of competent jurisdicnioia. 17. Transferee will provide interactive high speed cable modem se"ices to buildings owned or controlled by the City at most favorable commercial or governmental rate offered anywhere in its San Diego Division Systems by the Transferee, the Guarantor, or any Affiliate thereof. 18. The City hereby gives the Transferee notice that the Grant or transfer of the Franchise may create a taxable possessory interest upon which the Transferee may be liable for the payment of certain property taxes. The Transferee hereby acknowledges that it has receilred actual notice as provided by Revenue and Taxation Code Sectlon 107.6 11.41015615-00U4132734:1.1 4OW24 99 - 9 - 015 O6-24-99 17:19 RECEIVED FROM:+ P.12 Jun-24-99 05:19pm From-RUTAN & TUCKER LLP, + T-963 P 13/14 F-507 19, This Transfer Agreement shall be deemed effective upon Lhe closing of the Transfer (the "Sff ective Date"). 20_ This Transfer Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constiruce one instrument. The parties agree that this Transfer Agreement will be considered signed when the signature of a party if delivered by facsimile transmission. Such facsimile signature shall be treated in all respects as having the same effect as an original signature, 21. Within ten (10) days of the approval- of this Transfer Agreement by the City, the Guarantor 01411 provide its uncoadilrional corporate guarantee of the Franchise Documents in a farm acceptable to the City Ancorney. 124101561Q-D004M73421.j aD6iNj 9 06-24-99 17:19 [ S IONATURE BLOCK NEXT PAGP ] +rj1� RECEIVED FROM:+ P.13 Jun-24-99 05:20pm From-RUTAN & TUCKER LLP, + T-963 P 14/14 F-507 ATTEST: City Clerk APPROVED; Rutan & Tucker, LLP Special Coun;3el CITY OF LA QAINTA, CALIFORNIA. (the "City") By: Its: =DIA ONE M=RPILISES, INC. (the nTransferor" ) By: Tts: SKIT CABLU SERVICES OF GEORGIA, INC. (Ghe "Trarnsferee") By, _ Its: TIME WARNER CABLE (the "Guaramor" ) By; _ Tzs: 13.31415010-000i�3273g27.1 a46f24199 017 06-24-99 17:20 RECEIVED FROM:+ P.14 06i22=99 13:42 FAX 760 340 23$I MEDIA ONE -- LA QUINTA ATTACHMENT 2 Med1*a01j1'C This WN ir- t ie wavy FAX COVER SHEET DATE: June 22, 1999 TO: Mr. Thomas Genovese FROM: Bob Rubery NUMBER OF PAGES INCLUDING THIS COVER SHEET Fax only ❑ Hard copy to follow For your review and comment E For your information only ❑ Per your request 41-725 Cook Street Palm Desert, California 92211 Phone: (760) 340-1312 Fax: (760) 340-2384 2 FAX #: 777--7101 PLEASE DELIVER IMMEDIATELY Mr. Genovese: Please be advised that Time Warner will respond to your question regarding "cost of service" within the next couple of days. PLEASE CALL (760) 340-1312, EXT. 200 IF THERE IS A PROBLEM WITH THIS TRANSMISSION. 06-22-99 14:43 RECEIVED FROM:76O 340 2284 P.01 06'22,,99 13:42 FAX 760 340 2384 MEDIA ONE --- LA QUINTA z 0o2:one MediaOne- This is Broadband. This is the way. Via Fax June 22, 1999 Tom Genovese City Manager City of La Quinta 78-1195 Cabe Tampico La Quinta, California 92253 Dear City Manager Genovese: Following up on our discussion this morning, MediaOne and Summit Cable (Time Warner) agree to extend the time period necessary for review of the FCC Form 394 until July 7, 1999. We do so under the provisions of 47 U.5_C. 537 (Section 617 of the Cable Act). We do this based on our recent discussions, in which we made significant progress towards resolution of the outstanding issues, and to allow ample time to agree on appropriate legal language which represents our agreement. Further, we agree to this extension with the hope that we are nearing final resolution of all outstanding issues. Sincerely, K_ James Petro lim Fellhauer Acting Vice President, Corporate & Legal Affairs President, San Diego Division MediaOne Time Warner 4I72S Cook Street Palm Desert, CA 9221 I tel ,' 760142-112 fax 1 i'64-340-2384 rl 06-22-99 14:43 RECEIVED FROM:760 340 2364 P•(92 T4tyl 4 s4� Q" June 29, 1999 COUNCIL/RDA MEETING DATE: ITEM TITLE: Consideration of Appointments to the Architectural & Landscaping Review Committee, Community Services Commission, Cultural Arts Commission and Planning Commission RECOMMENDATION: Conduct interviews and make the various appointments. FISCAL IMPLICATIONS: None BACKGROUND AND OVERVIEW: Community Services Commission: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: This is a seven -member commission, each serving two-year terms. There are three vacancies on this commission due to the terms of Olga Betancourt, Gilbert Lopez and Kay Wolff expiring. Two applications have been received from the following: Deborah D. Bechard Michelle Henson Cultural Arts Commission: This is a seven -member commission, each serving two-year terms. There are three vacancies on this commission due to the terms of Charrie Chappie, Elaine Reynolds and Patrick Welch expiring. Four applications have been received from the following: Jan Blakley Leslie McMillan Jackie Rasmussen Elaine Reynolds t2_5 Planning Commission: This is a five -member commission, each serving two-year terms. There are currently two vacancies due to the terms of Richard Butler and Steve Robbins expiring. Five applications have been received from the following: Richard Butler Frank Ceja James Donnelly Steve Robbins Stewart Woodard Architectural and Landscape Reviewing Committee: This is a three -member committee, each serving two-year terms. There is currently one vacancy and there are eight applications from the following: Elizabeth Barbarossa John Monahan Thomas Devlin A. J. Pittock Kevin Leonhard Frank Reynolds Kahnema Melkesian Tracy Smith All applicants have been advised of this meeting. FINDINGS AND ALTERNATIVES 1 . Conduct interviews and make the various appointments; or 24AUNDrRA Povide staff with further direction. L. JUH LA, City Clerk City of La Quinta, California COMMUNITY SERVICES COMMISSION OLGA S. BETANCOURT Appointed: 7-01-98 P.O. Box 3301 Term: 1 Year Rancho Mirage, Calif. 92270 Expires: 6-30-99 52-880 Avenida Mendoza La Quinta, Calif. 92253 771-0521 (Res) 564-5272 (Bus) MIKE DAVIS Appointed: 7-01-98 54-290 Avenida Montezuma Term: 2 Years La Quinta, Calif. 92253 Expires: 6-30-2000 564-1712 (Bus) GILBERT LOPEZ Appointed: 7-01-98 P.O. Box 94 Term: 1 Year 52-190 Avenida Herrera Expires: 6-30-99 La Quinta, Calif. 92253 564-0623 (Res) 771-1984 (Bus) KATHRYN PEDERSEN-NADLER Appointed: 7-01-98 79-325 Desert Wind Court Term: 2 Years La Quinta, Calif. 92253 Expires: 6-30-2000 360-3360 (Res) 772-4150 (Bus) JOAN REBICH Appointed: 7-01-98 53-810 Avenida Cortez Term: 2 Years La Quinta, California 92253 Expires: 6-30-2000 564-0161 (Res) 863-7325 (Bus) VICTORIA ST. JOHNS Appointed: 7-01-98 53-200 Avenida Montezuma Term: 2 Years La Quinta, California 92253 Expires: 6-30-2000 564-3411 (Res) 773-0669 (Bus) KAY WOLFF Appointed: 7-01-98 77-227 Calle Ensenada Term: 1 Year La Quinta, California 92253 Expires: 6-30-99 564-4070 (Res) Updated: 6-24-98 Date -7 J `. JUN 9 P� 12 30 CITY OF LA QUINTA C" APPLICATION TO SERVE CITY R �' } ry A CLERK ON LA QUINTA COMMUNITY SERVICES COMMISSION NAME:-�)7ktCt ►M� HOME ADDRESS: � �{ -C��TJ �� h r (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: TELEPHONE: (HOME) '15 q - v) 3 3 -1 (BUSINESS) c 4 - ; 'S J IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: BowS 6'I r S' club o Cacj e a lCO -P-- La u r * u�� ylc(uo+-e�� �oordcna4�'r- - Y, ��c'�- nr� Cam ►�- �. Ar-�SL1i�r0 LENGTH OF RESIDENCE IN LA QUINTA: Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. C� Deborah D. Bechard I have always participated in and actively supported a wide variety of community activities and events which have included: *Neighborhood Association President. Duties included taking bids for landscaping, grass cutting & weed spraying for "common' areas in neighborhood. Encourage new members to attend monthly meetings, plan neighborhood picnic & kids bike parade sponsored by the local police.. *Religious Education Teacher. I taught R.E. for many years, from 2nd grade to 8th grade. Our class visited nursing homes, senior centers & childrens hospitals on a regular basis. I was also instrumental in starting the parish "Moms Day Out". *Parent Teacher Organization. I have held various positions through the years. *Served on Basketball & Football Booster Club, which meant lots of fund raising! *Participated in the chambers Y.E.M.P. *Helped conduct the United Way Community Needs survey. VI1 Deborah D. Bechard 54-065 Avenida Herrera La Quinta, CA. 92253 Employment Record: October 1995 to Present Employer: Boys & Girls Club of Coachella Valley 42-600 Cook St., Suite 120 Palm Desert, CA. 92253 La Quinta Address: 49-995 Park Ave., La Quinta, CA. 92253 Victor Brown - Program Director Position: Volunteer Coordinator Job Description: Responsible for recruiting, interviewing and enrolling volunteers, monitor volunteers activities, scheduling and confirming volunteer activities. In addition, research, develop & implement new volunteer opportunities and programs. Invite & coordinate guest speakers from various agencies. Work with Soroptimist International who sponsors "Girls Time" at the La Quinta Club. Oversee Art, Computer and Education department, as well as answer phones, filing, typing & data entry. June 1993 to May 1995 Employer: S.A. Healy Contractors Dallas, TX. Heavy Civil Construction Company Mr. David Rogstad - Project Mgr. Position: Receptionist/Time Keeper Job Description: Handling the telephone, typing, filing, time keeping, calculating man hours, making travel arrangements and various duties assisting the business manager. September 1990 to May 1992 Employer: Ebasco/Losinger a Joint Venture New Waddell Dam, Lake Pleasant, AZ. Heavy Civil Construction Company Mr. Jay Carlson - Project Mgr. Position: Purchasing & data entry clerk Job Description: Responsible for computerized input of all purchase orders. September 1988 to November 1989 Employer: Ebasco/Losinger a Joint Venture Bradley Lake Hydroelectric Project Homer, AK. Heavy Civil Construction Company Mr. Jay Carlson - Project Mgr. Position: Receptionist Job Description: Answer phones, filing, data entry, make travel arrangements and various duties assisting the business manager. Education: Attended 1 year Community College Graduated: 1970 Adlai Stevenson High School Livonia, MI. References will be provided upon request APPLICATION, COMMUNITY SERVICES COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Community Services Commission. ��. C'- q �✓� (,� i �CC' i'f � l�`1 l,� h � �'l,; _ � � ✓ U 1 � 5 � /�� /i'1 15 � lOY � it � � � � �� Co l n rn t,� �� � i ► l � Ci S � S t�CtCl l , %1,i 1 / c��Y�.j t-k 17 �- � � ►�UIC�� , 1�0 -ir rec-coi)a(z '-1[)e C-w)a')u/�t4q Qs tL)6-11 Q.5 lncre-ase Qcod �ti�r1J �Y Qwcnq 1�;5 rs('den4S Th ��C�C �-hri quIde -the Csl���7? C�C�l C� ��''C��1 -670�' 1 w��! What specific issues or problems face the La Quinta Community Services Commission and do you have any suggestions to address those issues or problems?J �1 {'/6 15'�V e Corn ! V / a en e u Pre 7 r in 0 ly")C �l1 Y ; %70I^rGl_C� r c Y i!o C ie"S' 4", 2 / s e S bo 'eS fJ I The 1� Gcr. U� . r i c otl der c STree�" F� I r a nr� rn� �� � c �-c� P/ What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Community Services Commission? a j 0 C7� I lw1 ai--11),roUe?v r hr ry a d -ky EX ll�ilc� . C��o%�. �Z��a,S� ��?c� .begun �cSe -VZ1e a Al1k> ) C_or��7�1,11��ca �__�����' with 4zz� i2 6L 061 CU lofts X (-(- led 61 e dire c7�Z-)-t 14 4u,�I ch -rh e, Cl /-y is Aegde PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 2 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Date P8 CITY OF LA QUINTA CITY �EgG'iiY APPLICATION TO SERVE14 ON LA QUINTA COMMUNITY SERVICES COMMISSION NAME: HOME ADDRESS: r, (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: TELEPHONE: (HOME) 4 (BUSINESS) -7 IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: LENGTH OF RESIDENCE IN LA QUINTA: Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. r JCJ I +C , t 4�joi't' I allr APPLICATION, COMMUNITY SERVICES COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Community Services Commission. What specific issues or problems face the La Quinta Community Services Commission and do you have any suggestions to address those issues or problems? 1and/or ex ertise do you think you have which would enhance the What specific attitudes, skills y PP work of the La Quinta Community Services Commission? -C. r -r ,( r, �' �tl�l�, i(;C4, PLEASE RETURN THIS APPLICATION NO LATER THAN JUKE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 _ 134 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. CULTURAL ARTS COMMISSION SUSAN BENAY 53-686 Avenida Velasco P.O. Box 1366 La Quinta, Calif. 92253 (760) 564-6405 (Res) CHARRIE CHAPPIE 77-701 Los Arboles La Quinta, Calif. 92253 (760) 564-2968 (Res) KATHRYN HULL 77-260 Calle Chillon P.O. Box 947 La Quinta, Calif. 92253 (760) 771-1041 (Res) ELAINE REYNOLDS 49-294 Avenida Vista Bonita La Quinta, Calif. 92253 (760) 564-1880 (Res) ROSITA SHAMIS 78-955 Del Monte Ct. La Quinta, Calif. 92253 (760) 564-1236 (Res) VACANT La Quinta, Cal. 92253 PATRICK WELCH 53-686 Avenida Velasco La Quinta, Cal. 92253 (760) 564-6405 (Res) (760) 564-7150 (Bus) Updated: 2-2-99 Appointed: 7-01-98 Term: 2 Years Expires: 6-30-2000 Appointed: 7-01-98 Term: 1 Year Expires: 6-30-99 Appointed: 7-01-98 Term: 2 Years Expires: 6-30-2000 Appointed: 7-01-98 Term: 1 Year Expires: 6-30-99 Appointed: 7-01-98 Term: 2 Years Expires: 6-30-2000 Appointed: 7-01-98 Term: 2 Years Expires: 6-30-2000 Appointed: 7-01-98 Term: 1 Year Expires: 6-30-99 s Date 2 r,CCF D CITY OF LA QUINTA J L 1 ; ;'l i 3 APPLICATION TO SERVE ON LA QUINTA CULTURAL ARTS COMMISSIOI�i' NAME: IJIZ HOME ADDRESS: ZLS (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: d, Zl� TELEPHONE: (HOME) �� Q- ��—� �� (BUSINESS) /I/D f a,c,r0 '/�g�Ze IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: . . LENGTH OF RESIDENCE IN LA QUINTA: eG YS Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. Seek a position on the Cultural Arts Commission Biographical Sketch I have over 19 years experience in libraries, research and art; 12 of those years overlap into municipal related experience, 10 + years in journalism, and seven years in law related fields. I hold a Bachelor of Arts in Journalism and English, and have completed graduate courses in Education and Psychology. I am also a certified Legal Assistant. • Acted as liaison between City of Berkeley Library System and its City Council. • Directed 75 permanent/ 40 part time employees during a Berkeley economic crisis. • Interfaced with Berkeley's multi -ethnic and socioeconomic community. • Possess extensive experience in art education (K-adults). • Taught Art History to Gifted children (GATE) in Northern California. • Presented workshops, seminars in art. • Coordinated with the local community, county and school board regarding art educational curriculum. • Taught on San Francisco Foundation and Ford Foundation educational grants. • Performed as Researcher for over 15 years at public and legal libraries. • Wrote as Journalist for newspaper, radio, magazines and university brochures. • Created advertising for national consumer products and university courses. • Managed 28 attorney -writers as Editor for a national legal assistant magazine. • Participated in committee -board related duties; Cultural Arts Board from the Orinda Arts Council to Orinda and school system; Library Board to City Council of Berkeley, California State University, Hayward's Advisory Board to the American Bar Association Accreditation Committee. • Performed fund raising for Orinda Art Council, City of Berkeley Symphony and the Contra Costa County Chorale. • Provided career counseling and introductory courses to legal assistants in both the California State University system and private legal institutes. APPLICATION, CULTURAL ARTS COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Cultural Arts Commission. S� - Z/ Pcl What specific issues or problems face the La Quinta Cultural Arts Commission and do you have any suggestions to address those issues or problems? �7 4-fc1,e What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Cultural Arts Commission? Se—, 60 cf PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 15, 1998 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 _ THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Describe your knowledge of functions, regulations and procedures of the La Quinta Cultural Arts Commission: I have read the May 5th, 1998 Cultural Plan, the Master Art Plan of 1995 and reviewed City Ordinance #317. The Cultural Arts Commission consists of seven members who meet monthly at 7:00 p.m. at City Hall. The Brown Act has been referred to me as the source for regulating the Commission. The Cultural Arts Commission's functions are primarily to: a) advise the City Council, other City Boards and appropriate committees in the fields of culture, on matters relating to civic arts programs. b) encourage and develop public cultural awareness and involvement c) implement the Art in Public Places Plan, which includes suggesting sites for public art and art works. d) research and solicit grants. e) encourage private and public partnerships. What specific issues or problems face the La Quinta Cultural Arts Commission and do you have any suggestions to address those issues or problems: The Cultural Arts Commission has excellent ideas as drafted in the "Cultural Plan". It needs to prioritize, focus and to implement these goals. Specific issues that face the Commission and that interest me are: 1) Bear Creek Path- Create a temporary citizen watchdog committee regarding potential artwork defacement. 2) Conceptual development of the Village -needs a community update and then implementation. 3) Community role of La Quinta Library -should be a major player in development of cultural awareness. 4) Planning Commission Information Exchange with the Cultural Arts Commission via a liaison person is logical to consider. 5) Improve media coverage of Pending cultural events. Utilize writers on the Commission to draft the releases in "ready to print" condition. What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Cultural Arts Commission? 1 am an educator, it lrnalist and artist who has a history of enthusiastic involvement with her community. I bring to the Cultural Arts Commission the ability to analyze problems accurately and to effectively implement solutions. I am an exuberant visionary along with being a team player. I have worked many years with municipal, advisory, legal, educational and art committees_ As 4th head of a major municipal library system during an economic crisis, I demonstrated astute management, communication skills, and the ability to work under stress. Throughout my working career I have successfully interfaced with the community and look forward to repeating that experience with La Quinta. RECE!4'E� Date:_ LjI�_ i ' 99 JUPq 9 Pn 1 32 CITY OF LA QUINTA CITY CF LA QUi )ITA CITY CLERK APPLICATION TO SERVE ON LA QUINTA CULTURAL ARTS COMMISSION NAME: ICJ) HOME ADDRESS: (Must be a La Quinta resident and eligible to vote in the City.) l BUSINESS ADDRESS: TELEPHONE: (HOME) % 3 "J 3 (BUSINESS) IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: LENGTH OF RESIDENCE IN LA QUINTA:.' C_ 'C1►—S a �Q� Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. Id Lij "o I -'s l i� t r )i S ficte III S% 1 , APPLICATION, CULTURAL ARTS COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Cultural Arts Commission. What specific issues or problems face the La Quinta Cultural Arts Commission and do you have any suggestions to address those issues or problems? LA''iLl OLD What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Cultural Arts Commission? Li PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Date 7- REC`' ED CITY OF LA QUINTA U9 JUN 8 Afl 9 18 APPLICATION TO SERVE C i f Y O r LA Q U l ?; TA ON CITY CLERK LA QUINTA CULTURAL ARTS COMMISSION NAME: /*;'/�.51'f'IG'�SCN HOME ADDRESS: 75�-Zg t i///I L'41,'X6-L. (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: TELEPHONE: (HOME) S& V - 7'-Z / Ca (BUSINESS) IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: LENGTH OF RESIDENCE IN LA QUINTA: c,2 Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. r 'e,/'li U C"13 /Z-- Chi= C'/9L_ 1QEKE-LG f /V9 L= j l'.� 1,'E" L Lc-D FX 7-7-A,-S-i ✓G L.Y / /V AlCS 7- /�'I/� ✓ ti % til L'SEU�'JS /�� � �Xyi�i T/n�/S hN,d APPLICATION, CULTURAL ARTS COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Cultural Arts Commission. Y G N1� -/'�S r79/V�i n/ L' ill k-1SAS- Ct/% Y 67,0i-WC-14- 41eli7751 z(Sf22E-(97" .TZ) 7-/51t 77�,E'A/ A,�7-S11 o�" �GT/��L k/E/V T,Y 13 N/, d ,17- 7-1 L-1/ T/Aa-. 1 /N C�/C /� E�c� 72� /C7-/-i What specific issues or problems face the La Quinta Cultural Arts Commission and do you have any suggestions to address those issues or problems? ele-i»/i /S Si�,A/ ,���C�t/ - Ze'/;7 /-�-Z e-T.�iZ C�c ll y17�i_S .YF-SZ,�C/r 7-1eAl S n r-A v� � C 0IVZ)iIV A?/`El� -Tn z��//V 66 FiN�9NC!i4Z- What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Cultural Arts Commission? !4'G'e /1// PLEASE RETURN THIS APPLICATION NO LATER THAN JUKE 9, 1999 TO: CITY CLERK P. O. BOX 1504 r LA QUINTA, CA 92253 `= •'� THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Date ' 9 9 MY 27 PM 3 0 0 CITY OF LA QUINTA CITY 0 A LA Q U I N I A APPLICATION TO SERVE CITY MA4r�AR' � ON "LA bff] TA CULTURAL ARTS COMMISSION NAME:` - HOME ADDRESS: �iT r N i �1�!� 10;�1A C N ; N (Must be a La Quinta resident and eligible to vote in the 6ty.) BUSINESS ADDRESS: TELEPHONE: (HOME %� �� (, U 1' (BUSINESS)' IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: C- M i' l .rL ) r r A-� 11 I2 h U % %V C' i r G `I La A LENGTH OF RESIDENCE IN LA OUINTA: Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. T LI" l� � C 1 7 1 �r l 11� t- t) ! %ice I 1 �r n 1�i APPLICATION, CULTURAL ARTS COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quints Cultural Arts Commission. CST Jt t 1; f- Lj [:&j 1l" t What specific issues or problems face the La Quints Cultural Arts Commission and do you have any suggestions to address those issues or problems?, 1- / / 7` / / 1 ��7 2LI What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Cultural Arts Commission? /V-1,`L 4-7 Y4i sfS2� 2EGL,;er=- kl:" D���1�y T�� Fa 1VrRE l�s 12-:-NGhy L '� f��f ��f � �c-S_ r �rt i mac, ��� � F��i i� �';��7�cs�N �� � h,� ►��'S, PLEASE RETURN THIS APPLICATION NO LATER THAN JUKE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YO U FOR YO UR WILLINGNESS TO SERVE YO UR LOCAL GOVERNMENT. PLANNING COMMISSION JACQUES ABELS Appointed: 7-01-98 P.O. Box 1416 Term: 2 years La Quinta, Cal. 92253 Expires: 6-30-2000 49-990 Avenida Montero (760) 564-4368 (Res) (760) 771-3433 (Bus) (760) 771-3435 (Fax) ROBERT TYLER Appointed: 7-01-98 44-215 Villeta Drive Term: 2 years La Quinta, Cal. 92253 Expires: 6-30-2000 (760) 345-2116 (Res) RICHARD BUTLER Appointed: 7-01-98 44-180 Ocotillo Dr. Term: 1 Year La Quinta, Cal. 92253 Expires: 6-30-1999 (760) 360-6801 (Res) TOM KIRK Appointed: 7-01-98 78-150 Calle Cadiz Term: 2 Years La Quinta, Cal. 92253 Expires: 6-30-2000 (760) 564-1452 (Res) (760) 564-4888 (Bus) (760) 564-5288 (Fax) STEVE ROBBINS Appointed: 7-01-98 78-365 Via Caliente Term: 1 Year La Quinta, Cal. 92253 Expires: 6-30-1999 (760) 360-7381 (Res) (760) 398-2651 (Bus) Updated: 2/ 12/99 f�� Date 6 / 7 / 9 9 rREGE`/ED 99 JUN 7 Pal 12UITY OF LA QUINTA vi i � Or LN am' QUID'-^ LICATION TO SERVE CITY CLERK ON LA QUINTA PLANNING CO.NSHSSION i NAME: RICHARD BUTLER HOME ADDRESS: 44180 OCOTILLO DRIVE, LA QUINTA, CA 92253 (Must he a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: SAME AS ABOVE TELEPHONE: (HOME) (7 6 0) 3 6 0- 6 8 01 (BUSINESS) (7 6 0) 3 4 5 -16 2 6 IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: S O N R I S A DEVELOPMENT/SALES MANAGER LENGTH OF RESIDENCE IN LA QUINTA: 9 YEARS HAVE YOU EVER ATTENDED A MEETING OF THIS COMMISSION? YE S Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. BORN IN SAN FRANCISCO, RAISED IN SAN DIEGO. GRADUATED FROM SAN DIEGO STATE UNIVERSITY /B.A. IN BUSINESS ADMINISTRATION. I HAVE BEEN A SELF-EMPLOYED INSURANCE AGENT FOR 32 YEARS WITH EMPHASIS IN COMMERCIAL PROPERTY AND CASUALTY INSURANCE. I AM ALSO A LICENSED REAL ESTATE AGENT. HAVE SERVED ON THE BOARD OF DIRECTORS FOR THE YMCA, PALM DESERT, BOYS & GIRLS CLUB, LA QUINTA, BUILDING HORIZONS. PAST PRESIDENT SAN DIEGO LEUKEMIA SOCIETY; CITY OF LA QUINTA PLANNING COMMISSION (5 YEARS); CHAIRMAN, LA QUINTA ROTARY ). APPLICATION, PLANNING COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Planning Commission. I HAVE BEEN A MEMBER FOR 5 YEARS, CHAIRMAN FOR 1 YEAR. LEAGUE OF CALIFORNIA CITIES SEMINARS FOR THE LAST 5 YEARS IN GENERAL PLANS, ZONING, SUBDIVISION MAP ACT, LEGAL UPDATES, & CEQA. What specific issues or problems face the La Quinta Planning Commission and do you have any suggestions to address those issues or problems? A) VILLAGE OF LA QUINTA B) HIGHWAY 111 C) ANNEXATION - EASTERN & NORTHERN PARTS OF LA QUINTA �l WASHINGTON STREET DEVELOPMENT E) BALANCE THE RESIDENTIAL & --(-MMERCIAL GROWTH What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Planning Commission? WITH A BFCi{GROUND IN B1JSTNFSS ANT) TCrAT, DZ7r)j,�ZZM= -j]pA S'TT2QM 1)F..cTRF. Tn WORK FOR THE PLANNING COMMISSION TO COMPLETE MY VISION FnR T�TP r12*y C1F LA gLJINTA. PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Date. 'Y -' � f RECE!'JE ' ���.,, �!! N 8 flfl 11 `t5 CITY OF LA QIAT� APPLICATION TO SERVI .) F L A Q U i N T A ON CITY CLERK LA QUINTA PLANNING CO MISSION NAME: ��� (ZIJ HOME ADDRESS: L (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: * �y 7-'71 --rd�w ag= zLZ--� TELEPHONE: (HOME) 3z—�Al 2� (BUSINESS)%Sf3� k IF EMPLOYED, WHERE OU WORK AND POSITION YOU HOLD: S� LENGTH OF RESIDENCE IN LA QUIN A: HAVE YOU EVER ATTENDED A MEETING OF THIS COMMISSION? Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. brM 43l L?�1 4]E6WLt,47 OMWAXWM�� �Yg - �LAJ kt ���� ,fir-r,��r►r��l S �A�yVt��'�' . OmAlvkl -ice tJ�QA457 ,1�-�7 _ 3GflLS • ��L:G{.t�- l/la.El4 li1✓rC� �!� �u%p�YLI� APPLICATION, PLANNING COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Planning Commission. ,4,b4�S La xlA% ��sxrntis5l/ 2I 'r'i✓�r• iT' �„l �✓1�1 G1T�� S rl7lltf-I�S /t!i ��� Ta G-N ✓,�c.,h2l3�F ,0l vL&Vk- AW 64;WM5 ✓l �i/ yra✓l �r � rl�✓s ,ice>�.,4� , What specific issues or problems face the La Quinta Planning Commission and do you have any suggestions to address those issues or problems? Y�* f'EI,L AM 1 A) f1J5' 1111AJ %O �4L1 Wl ��lfi 1551%r;`S Pr�i O M What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Planning Commission? A. Veod !nsu= VV- 7UPE * 4gT:nA) A—oq I-- J�EL -7AT i% 1A)N PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 9, 1999 TO: CITY CLERK P. 0. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Date ! q� ED i $ 3 CITY OF LA QUINTA APPLICATION TO SERVE CITY CLERK ON LA QUINTA PLANNING COMMISSION NAME: �.+-= •\ �� ��—� 77/ HOME ADDRESS: r- (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: TELEPHONE: (HOME) ' i '7 ( - (I3U`FS) IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: LENGTH OF RESIDENCE IN LA QUINTA: l yE�-LS HAVE YOU EVER ATTENDED A MEETING OF THIS COMMISSION? ti Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. rt L� C`i tz.►� i �1 E7 C,;= �L� i lv�L` S I `� S — (1(c I T" tctL-�Z— E7'�) oS C-N>'►-1, �t F_=kEc� ; i�. L � &Ef `f qrl- C')U ql%L —TT- 0' :y LL I S. H%fiC F= fEns � k'ukS APPLICATION, PLANNING COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Planning Commission. I B C t>I 1 i4 l SSI E► C, kt � 1 E i _i EU c 1 T 66r 7 wF F?�- 4� 1 � �--rc--tz - �e t� � EP ��r s� � c ► � o e A-�r c> ►�=�v r ►.T tr. i c -{�- l.� Fci. I hfui t: 1* - What specific issues or problems face the La Quinta Planning Commission and do you have any suggestions to address those issues or problems? i-A n;t ►s i iFE (� h f- rL T �c;ii�(� c��>/-it(UtJ ;Ty c ekk 1 �— . �- s f} DES �'T C-fl- L-� � s i 8 a -T [,L- !WI I G S�,- & E ► S I rH Kf Pt- N� i ig L �r- c—t I\('S c e L,)A-T t u b PWP P t ,4-Cx-{ -To What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Planning Commission? U, S `T`T L, �,i y Ec k' � t� / 1�(� lS id R�i ' D LElb E K I ti�E-K1 C-c ES I ifr L),) i-v l tij R i L.LI n V-s- C—ILN =- o LL B c , I �.l G i� ,�1►v t tic ;t= ) lv Uc. i�i:, i N ��� 1-1 i NL (L? -PG L) �} � � ` 5 S � � L c �i �� � n,'s s E PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Date .5-25-9 CITY OF LA QUINTA '99 R 28 Pal 1 21 APPLICATION TO SERVE ON CITY OF LA QUINTA LA QUINTA PLANNING COMM�InTA N A G E R'S O F F I C E NAME:C'�� HOME ADDRESS: ) -3LS Q�P\ (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: P �? IOS C0AcN E i—(J, C-k 9 TELEPHONE: (HOME) � 6C) - -7 3E ( (BUSINESS) IF EMPLOYED, WHERE YOUI WORK AND POSITION YOU HOLD: lLGk1CLl.1� V �I�LE`( W ATr �- `/' LENGTH OF RESIDENCE IN LA QUINTA: HAVE YOU EVER ATTENDED A MEETING OF THIS COMMISSION? cS Biographical sketch, including education, work experience, civic involvement and other background. Please be sure `to\ include experiences relevant to duties of the position you seek. (=' -v-- t C C-w L !J C-, I ".7 UE--1 I Q E�!' ����\UL'�7 �\,�`��-1�-� 1,-'►��\1J��.\1�1� �ct.bTEC� ��91�G"��oUS EC APPLICATION, PLANNING COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Planning Commission. 11� VA ti EST (fo�F-©�t��;c,c ��TN �els��.;t� � �QDI ��•u�� �Tc.r A1� b M �.�-� t ����►�����- ����� ��\������s \ors b.R� ��� ��►.s�r_ c-��.� L3 �izo� ASS What specific issues or problems face the La Quinta Planning Commission and do you have any suggestions to address those issues or problems? TM-c LA-P- T `9�� "K-'PGlti9C3 7"1E Vl_AQV3\tjL'(2-8MV-J,\SSlbQ �t � X kG7 10 t�— U6 G fie) Wz kA ti�e'EDE �T�� Ll�S1Mp.�c��c..��hM��T IS ��.� �� �49i��1�(g'G✓�719� �� vy Try F � �. � � � E� � TEE fix' � �� � ►.� �-- C,. \-r' i What specific attitudes, skills and/or expertise do you thitc you ave which would enhance the work of the La Quints Planning Commission? Nay ����� G�C�'��Ztt1�L�--��-�t�� �;�,�►�1° C—t 'M fa. 1 U S � 013 PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Date R E C =IV D JUN 14 AN 9 54CITY OF LA QUINTA C I T Y O F L A Q U 1 id T AAPPLICATION TO SERVE CITY CLERK ON LA QUINTA PLANNING COMMISSION NAME: 4-31 wli — �U(o --�> k\,4 . HOME ADDRESS: '( -I -4,ttKT ' (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: 'r2(-3Zc:> ky*µ676 �Idt7 TELEPHONE: (HOME) 'xp (BUSINESS) `ZC,d—S7.4-�Q�18 IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: LENGTH OF RESIDENCE IN LA QUINTA: t2 HAVE YOU EVER ATTENDED A MEETING OF T4 COMMISSION? er Biographical sketch, including education, work experience, civic involvement r=you background. Please be sure to include experiences relevant to duties of the poseek. APPLICATION, PLANNING COMMISSION PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the La Quinta Planning Commission. What specific issues or problems face the La Quinta Planning Commission and do you have any suggestions to address those issues or problems? U' tr v 11(.0 { ix> m • T�� i >t cdngg� Am �o What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the La Quinta Planning Commission? ' - _ CCD cw- N� r1 PLEASE RETURN THIS APPLICATION NO LATER THAN JUKE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. as., ARCHITECTURE & LANDSCAPING REVIEW COMMITTEE BILL BOBBITT Appointed: 7-01-98 78-785 West Harland Term: 2 Years P.O. Box 1060 Expires: 6-30-2000 La Quinta, Calif. 92253 772-7522 (Res) 771-1234 (Bus) DENNIS CUNNINGHAM Appointed: 7-01-98 45-540 Desert Fox Dr. Term: 2 Years La Quinta, Calif. 92253 Expires: 6-30-2000 360-5194 (Res) 360-5194 (Bus) VACANT Appointed: Term: 2 Years Expires: 6-30-2001 Updated: June 24, 1998 Date / RECEIVED CITY OF LkQdRTA PM 3 19 APPLICATION TP-SWRVE Q U N T A ON CITY CLERK LA QUINTA ARCHITECTURAL AND LANDSCAPE REVIEW COMMITTEE NAME:q) HOME ADDRESS:'- (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: `— TELEPHONE: (HOME) (9 7 7/ - yc c (BUSINESS) IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: LENGTH OF RESIDENCE IN LA QUINTA: Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. Al61�=siL�� T �� ,LiF�rr.✓�� -off Du�TL G1/G/(�E'ED G�ii` C i�Ci/'�N n�i�3 •�u Tilf= if �✓ �f41 uS �JO�'Din�i?C � �y2 ,� a ,./� ; r/ ,��.,i�-- � !emu �.�Ti � •c% � ��/,�> �T. / c /07/ rr cc n/ jtE 49`T�/+G IA' �S Hu APPLICATION, ARCHITECTURAL & LANDSCAPE REVIEW COMMITTEE PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the Architectural and Landscape Review Committee. 6, IV, P �>,�1L � wi is c r/��i� �� What specific issues or problems face the Architectural & Landscape Review Committee and do you have any suggestions to address those issues or problems? 4 7 z �Tv a-;s 7,- wc,- Fc To Tiff-"= /U' A- What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the Architectural and Landscape Review Committee? /? iy1 /-� %,:�/' / �f /`lam /1 Zi4T/� % �%5 U.i � .T 'tti�`�✓ r%/" .�-�I �G !il> o<' �t 7�fG �I/<'W ry .��/�✓7iSC�i/�E 41��u/��ir✓G .� �T % /�/�i✓lii�a��r� 1- /awl 6' 7— r T C PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 _ THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. / ^4 -.f f4 /}�— SC; C' 1'I-Tc: F_ L 0 c-- ' Z/= T/f . 1- 5 i i4',C--- T/ -16:- ci A -/v r ELIZABETH A. (LISA) BARBAROSSA 48-270 Paso Tiempo Lane La Quinta, CA 92253 Phone (H): 760 771-4650 OBJECTIVE: An opportunity to use the experience and abilities which have been developed through many years of challenging situations. A position which will allow me to use my full range of skills in managing people and budgets, making decisions, choosing priorities, planning schedules, and coordiating events, while still maintaining my ability to change gears to adjust to different work loads. A position which will advance my personal and professional growth while allowing me to contribute to the community where I live. EXPERIENCE: Administration California Lutheran University, Thousand Oaks, California, 8-5-90 to 2-28-97 (6-1-94 to 2-28-97) Coordinator for Office of Continuing Education. Provided delivery of programs within a predominately self-support environment to students within a one hundred mile radius who are adult professionals, educators and businesspeople. Enrollment for all programs averaged 1500 - 1800 students per year. Consistently increased revenue and net profit to the University by reorganizing to computerized methods, reducing staff and expenses, and increasing programs. Responsible for overall management of the University's Continuing Education programs including program development, marketing, fiscal planning and management, hiring and evaluating faculty and staff, negotiating and paying faculty contracts, and program evaluation. Resigned effective 2-28-97 to relocate to La Quinta. Continued to act as paid consultant to the department through October, 1997. (10-1-92 to 5-31-94) Administrative Assistant to Director for Office of Continuing Education. Responsible for calendaring events, registrations, preparing invoices and processing revenue for deposit. Responsible for compiling, publishing and distribution of semester schedules. Maintained a variety of records, logs and and files in accordance with the standards established by the WASC (Western Association of Schools and Colleges). Monitored Student Assistants' and Volunteers' activities and assigned duties as appropriate. Scheduled facilities and classrooms, housing and food services as required. Maintained computerized student records, issued grade rosters and grade reports. Maintained confidentiality and integrity of information and records. .-1-92 to 9-30-92) Administrative Secretary to Director of the Office of Continuing Education. Assisted in, compiling and distributing semester schedules. Prepared faculty contracts under direction of Director, maintained faculty files, established and maintained class files, registerd classes, compiled monthly revenue reports, worked on special projects, assisted with coordinating classrooms, housing, and other records for institutes, answered inquiries and provided information on programs in our department to interested parties, exercised Rood computer skills and any other general secretarial duties as needed. (8-5-90 to 1-31-92) Office of the Registrar -Records: Responsible for preparing Official Transcripts, verifying degrees, verifying enrollment for students and student lenders, handling calls from students and faculty regarding academic requirements, class schedules, changes in programs, etc. Assisting the Registrar, Associate Registrar and other staff preparing semester schedules, class rosters, report cards, registering students for new terms, and handling walk-in traffic for appointments, problems and requests. Marketing, Management, and Training Better Homes & Gardens, Simi Valley, California, 1984-1990 Real Estate - Relocation Director (1984-1986). Coordinated with 3rd party relocation companies, the transferee and realtors. Responsible for appraising properties to be purchased by relocation companies. Assigned and supervised agents to manage sales of properties owned by relocation companies. Primary emphasis on residential re -sale market. Consistently achieved multi -million dollar sales club status. Gallery of Homes Simi Valley, California, 1976-1984 Real Estate - Started in Residential re -sale. Taught in-house training classes in contracts, sales strategy, sales logic and time management. Promoted to Manager of branch office with 23 sales associates in 1980. Through training, motivation and supervision was able to dramatically increase productivity and profitability of that office which had previously shown losses. Office Administration Riker Labs/31NI, Northridge, California, 1971-1976 Marketing Department - Assisted national outside sales force with supply requisitions, scheduled trade shows, coordinated trade show materials shipments and supervised prescription sample inventory control. Liaison between Marketing Department Management and outside advertising agency for routing of product literature design and content approval. Personnel Records Pacific Telephone Company, Los Angeles, California, 1963-1967 Personnel Secretary - Maintained confidential personnel records, scheduled employee's union wage increases, maintained management review files, processed employee benefit claims, discretionary approval and payment of small (installation) damage claims. General secretarial duties for District Manager. TRAINING & California Lutheran University EDUCATION: Moorpark College George C. Wallace Trade School, Dothan, Alabama, 1 year - Business Administration Houston County High School, Alabama (Graduated 1963) Numerous professional seminars and Time Management courses National Relocation Training, four 1-week courses, 1984-85 Graduate Realtors Institute (Professional Designation, 1978 & 1981 Train the Trainer (Gallery of Homes National Training), 1978 Lumbleau Real Estate School, 1976 HOBBIES: Home decorating projects, gardening, sewing, golf, tennis and reading VOLUNTEER Las Manitas Auxiliary: A fiend raising organization for Children's Home Society of ACTIVITIES: California. Associate member 5 years. Vice President, 2 years; Secretary, 1 year. City Board Seat: Sign Review Board (1978). City of Simi Valley - Appointed by City Council, chosen from 12 candidates. Grievance Committee: Simi Valley Board of Realtors (5 years). (Hears, investigates and dismisses or forwards to Professional Standards Committee complaints against member Realtors.) Professional Standards Committee: A self policing agency of the Simi Valley Board of Realtors (2 years). (Holds hearings and makes decisions on guilt and penalties.for professional standards violations) "Can Tree" Committee: Food collection for Care and Share. Solely responsible for obtaining donations to purchase Ford Astro Van for Care and Share Director (1985). Political Fund Raising: Actively campaigned and worked in fund raising for Mayor Greg Stratton and several city councilmen. PERSONAL: Married to Raymond, Son -Chris and Daughter -Cindy REFERENCES: Dr. Pamela Jolicoeur, Provost California Lutheran University 60 W. Olsen Road Thousand Oaks, CA 91360 (805) 493-3145 Dr. and Mrs. Lawrence Eimn 3043 Choctaw Simi Valley, California 93063 (805) 527-2444 Mayor and Mrs. Gregory Stratton 254 Goldenwood Circle Simi Valley, California 93065 (805) 527-0323 Dr. and Mrs. Carl Aeliozzo 79-030 Via San Clara La Quinta, CA 92253 (760) 564-2725 t 67- F � "`p Date RECE.`:" '33 Jim 9 Fi►'l 11 33 CITY OF LA QUINTA G1 T ; OF LA G i �, G L ` APPLICATION TO SERVE ON LA QUINTA ARCHITECTURAL AND LANDSCAPE REVIEW COMMITTEE NAME: TV( t wis Le; v�V- HOME ADDRESS: 90�- (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: d ii'1 a Q TELEPHONE: (HOME) 1-7 (BUSINESS) -) F)- IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: _ �J yu,Lt !' x: Acti LENGTH OF RESIDENCE IN LA QUINTA: rnE� Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. AL � � � � �� i � � t �i C ILI A l l lq U 4, (-I 1114 #eel. ,_ v ,► APPLICATION, ARCHITECTURAL & LANDSCAPE REVIEW COMMITTEE PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the Architectural and Landscape Review Committee. am � i i -) � ) "21� L �� t �, � �# ti. ILL,, l ' k,'t U L-ktA-k What specific issues or problems face the Architectural & Landscape Review Committee and do you have any suggestions to address those issues or problems? a 6tt K, a i r C- u L 12L �u 6,C) nL� I tt L',- 1� ty 6t-u'q f7�- 'c tL & LL ' Al t 1 t &L( It " Llj -C-C ' k 1: e I �w 0L?ttt( iL f 11l162&it1 `fZ�-f s,/kiu.F What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the Architectural and Landscape Review Committee? 0, t , � l,�G� �4 r � � � �� f - �1 � � G( �U �'�.�-� 5 ��• � � � i l� `'i �i 7Z-/ � !•�'�'f' lL- 0 0 C)611icc�T? G�� C) I l U Gll PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Date M A�-f �i j � qaq h�C= =D CITY OF LA QUINTA APPLICATION TO SERVE i L i�; -- . ON CITY L �A QtflNTA ARCHITECTURAL AND LANDSCAPE REVIEW COMMITTEE NAME: HOME ADDRESS: '4�0 ' 7 ���/�Sf- Ev`fiD^� S'rt"• (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS:-7 3' 3 50 EL SASE 5u t fie 20-7 , V�NC/o\ C—� TELEPHONE: (HOME) 355 tj (BUSINESS) 776P — t4Zel;:D5� IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: LENGTH OF RESIDENCE IN LA QUINTA: �E-S Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. (_..( CC- AL CED 5 --t c(E:- (4--� (a-P= ter/ S. LA , 1c' f65 APPLICATION, ARCHITECTURAL & LANDSCAPE REVIEW COMMITTEE PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the Architectural and Landscape Review Committee. �b r E1n� C IN5 rfi To ffAM(^ fit) SCpLjE: What specific issues or problems face the Architectural & Landscape Review Committee and do you have any suggestions to address those issues or problems? C:oM s,ni� ra►•t�. 1 �c.�c.� �� � �c.�c t��- -�' N-C' 1�K� 'I�V�C.o�J��tt-+y N.� �� f�� � �-f�v+�• �c���c.trt'y, What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the Architectural and Landscape Review Committee? fps ►4� �� l�iG`fi(-- OfC..._-� V��(9(� \64�L k)F of=-r� PLEASE RETURN THIS APPLICATION NO LATER THAN DUNE 15, 1998 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. ..T Date%ll/ �' RECE'`:!ED u NA U 10 P n 12 25 CITY OF LA QUINTA �4. QUilvin APPLICATION TO SERVE CITY CLERK ON LA QUINTA ARCHITECTURAL AND LANDSCAPE REVIEW COMMITTEE NAME: HOME ADDRESS: (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: TELEPHONE: (HOME) J. "f—'' % (BUSINESS) IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: LENGTH OF RESIDENCE IN LA QUINTA: " S Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. "I r' ,1 '/ /1!1 i 7 APPLICATION, ARCHITECTURAL & LANDSCAPE REVIEW COMMITTEE PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the Architectural and What specific issues or problems face the Architectural & Landscape Review Committee and do you have any suggestions to address those issues or problems? / hSf 11rAfl' r L�YI� What specific attitudes, skills and/or expertise do you think you have which would e ance de work of the Architectural and Landscape Review Committee? L i 'L .-j PLEASE RETURN THIS APPLICATION NO LATER THAN O: CITY CLERK P. 0. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. W1 Y- i r ro q RECEIVED Date 99 JJN 9 PN 3 52 C I T Y G F LA C U ;v' TCITY OF LA QUINTA CITY CLERK APPLICATION TO SERVE ON LA QUINTA ARCHITECTURAL AND LANDSCAPE REVIEW COMMITTEE NAME: HOME ADDRESS: (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: TELEPHONE: (HOME) 36t) `7 cl 36 (BUSINESS) S6 q5 IF EMPLOYED, WHERE YOUWORK AND POSITION YOU HOLD: C l? LENGTH OF RESIDENCE IN LA QUINTA: Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. J IN w� 'A + CIO �G ��c ` (GC en �j En•�j V \e�nq � P w �,� 0 � (.at, 6- L ScPSz (0 n. � V.)o 5: s �S +d e��; o� 1��S5c,Ca rk ,o-, yL�SGc v 170 APPLICATION, ARCHITECTURAL & LANDSCAPE REVIEW COMMITTEE PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the Architectural and Landscape Review Committee. \ I y� I1r �]l [\c \ M•'\Fd �T,CI..,\zttS'z \L2 �V�S`�cl�< S�y� \.0 C: s What specific issues or problems face the Architectural & Landscape Review Committee and do you have any suggestions to address those issues or problems? What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the Architectural and Landscape Review Committee? k •Nvc' F(�ScC ` 'l PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. RECF: /ED HT 13 53 ur + ,r L' CU -A CITY OF LA QUINTA Date / 3 OC T 9g CITY C APPLICATION TO SERVE LERK ON LA QUINTA ARCHITECTURAL AND LANDSCAPE REVIEW COMMITTEE NAME: 4, .T, p{ T T OCK HOME ADDRESS: 5 114 " 95"0 0 A i< T2 r E (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: 6, 13,ax 10 9 3 U lAi 7-A C6 TELEPHONE: (HOME) (76 6) 77I - 3 �f 7 l (BUSINESS) (7G 6) 7 7 / - 31,4 7 IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: / 7-R4 t/FL d eAi .5 U G % �1 A7- LENGTH OF RESIDENCE IN LA QUINTA: Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. I received decrees of BS Engineering (Ohio University), MB.A fgf-AnfnrHI PWT) Rngi neari ng Pcy rhnl ncrxir, worked in aerospace business as engineer, project manager and program manager. Performed evaluation & analysis of proposals to meet established requirements. Punned and scheduled projects for cost effective results. Managed the development. design, fabrication, assembly, checkout and test of Command & Control Systems. I was on the Board of Directors of a Homeowner Association for five years and served as the President. T was involved in the compliance to the CC&R's of that association. When I was President, I was involved (two vears) with the City of Cupertino's Planning Commission; because of property being developed next to the association property. This experience gave me an appreciation for working of local government and a desire to be involved in the future of communities like La Quinta. L1 APPLICATION, ARCHITECTURAL & LANDSCAPE REVIEW COMMITTEE PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the Architectural and Landscape Review Committee. Review proposed a structure or landscape design to meet the City of Las Quinta Master Plan, environmental impact, and city codes. Provide to the Planning Commission recommendations on proposed structure or landscape designs. Provide to the Planning Commission those recommendations in Staff Report. What specific issues or problems face the Architectural & Landscape Review Committee and do you have any suggestions to address those issues or problems? What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the Architectural and Landscape Review Committee? Because of mT analytical experience; I have been trained to review designs with their data and evaluate them keeping in mind that there is codes, regulations and plans that must be held in compliance. I have managed project that review designs, their schedules and cost. PLEASE RETURN THIS APPLICATION NO LATER THAN JUNE 15, 1998 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. 1- 7 3 Date 2� RECEIVED CITY OF LA QUINTA 38 JUL 27 PA 12 `f APPLICATION TO SERVE r L !, C l' I t� TA ON u;TY CLERK LA QUINTA ARCHITECTURAL AND LANDSCAPE REVIEW COMMITTEE NAME: HOME ADDRESS:--," 9 -2 g4 AVC. (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: e TELEPHONE: (HOME) f741o-) ,7'e�1¢ - /BBD (BUSINESS) .mac /IFS EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: ,S�f,!_G„„l y=a/ LENGTH OF RESIDENCE IN LA QUINTA: Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. ZEc k C . f P �/Y��, fo, ..9� 6�iSfi�lc7; C�IL/YI�a���,. /`�/m ��/'4a��7 e Zldeyl� .Qo�a�/i C�U6 -m1< <c- C41 n�i �1I APPLICATION, ARCHITECTURAL & LANDSCAPE REVIEW COMMITTEE PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the Architectural and Landscape Review Committee. -&e-- Gzi4 7�e: 7441 re iC.Gl /9 41170�; ad�gad Ako/70ir 9 di 'fn 46-; � /YI��Cd�S QT L�.f�/'�!� i'Y�t fti 5"�0 /41 � �� C��� ��J✓! Gt.N�S 1 l< / // y� /J'J i of rp�ys � � / lE 9 l�h � ��l/'/2�Ui]�/� /f1 e What specific issues or problems face the Architectural & Landscape Review Committee and do you have any suggestions to address those issues or problems? Gt7`G c a L ,1Qh �hi'•_I' �'P� 1��� lLio/�_ r6�r�.� if3 �t �'%��e✓' �1'��AiCyC 7L/'ie L.WI�v,-I.LTI��' i3 21,Aa �onS 4,:5 (ui�d�r�a '74c'�zo� hcs YL��cf�af �."Z`hJl�.r� What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the Architectural and Landscape Review Committee? 2 Zf& <T �'O�,[?�llrr,L•sc ���"� LE2p %12���, 7�o C� �// a.�-ic�Ylze %Y10eq-24 ik-Itl a- -A PLEASE RETURN THIS APPLICATION NO LATER THAN JMMEt5,1998 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. Ce r Date `� (� 15c, CITY OF LA QUINTA APPLICATION TO SERVE ON LA QUINTA ARCHITECTURAL AND LANDSCAPE REVIEW COMMITTEE NAME: HOME ADDRESS: t AV c" 1 c, L 4 (Must be a La Quinta resident and eligible to vote in the City.) BUSINESS ADDRESS: 7S `� [ 1 �� h kZ, 4) � e�k" nPSP e TELEPHONE: (HOME) -7 2 (BUSINESS) Z S L-1 2 IF EMPLOYED, WHERE YOU WORK AND POSITION YOU HOLD: 0`4 r1--) �DeLlert- Lrckcz�?Pjt LENGTH OF RESIDENCE IN LA QUINTA: � C'n-5 % r� ti� a� I Biographical sketch, including education, work experience, civic involvement and other background. Please be sure to include experiences relevant to duties of the position you seek. r �oc -TeY Tact, 0 1 V Ic1`i qg0 - 1 lea �I 0 � e[ �tti C S ?' (f c.c -1 F ire APPLICATION, ARCHITECTURAL & LANDSCAPE REVIEW COMMITTEE PAGE 2 Describe your knowledge of the functions, regulations, and procedures of the Architectural and Landscape Review Committee. r h CIJc' Lv, E tMG���� i�?)ri—C ���� }PUi&AALC_ !Y-\ 121" icv- C' What specific issues or problems face the Architectural & Landscape Review Committee and do you have any suggestions to address those issues or problems? '!�Nct,k iLC�Ltl j' 6: vVe u(1y. L,iivic D,,oac Lf�� 1'eyI-ftt <1t1. �tiy l�' L (t`�+y4-( Ih� 1 iv What specific attitudes, skills and/or expertise do you think you have which would enhance the work of the Architectural and Landscape Review Committee? E'C ✓�j e, C t' W /q a L0 VO cle I /�-} j 1 0\ ' ` d c'o PLEASE RETURN THIS APPLICATION NO LATER THAN JUKE 9, 1999 TO: CITY CLERK P. O. BOX 1504 LA QUINTA, CA 92253 THANK YOU FOR YOUR WILLINGNESS TO SERVE YOUR LOCAL GOVERNMENT. of Ti4 4 (P QdArcv COUNCIL/RDA MEETING DATE: June 29, 1999 ITEM TITLE: Discussion of the Civic Center Master Plan RECOMMENDATION: As deemed appropriate by the City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: There are no direct fiscal implications at this time. The funding remaining for this project is $656,660. BACKGROUND AND OVERVIEW: During Fiscal Year 1990/91, TKD Associates completed an overall site plan as part of the Civic Center Facility Design. During this design, only conceptual ideas were reviewed for the purpose of developing a fine grading plan for the overall campus site. During the Fiscal Year 1992/93, the Civic Center was constructed, and the Civic Center Campus site was graded. The original intent for the Civic Center Campus was to develop it for future multiple uses as a plaza that would accommodate the La Quinta Arts Foundation's annual Arts Festival event. In addition to the development of the plaza, parking lot expansion would be required to support the plaza development. The future plan identified expansion of the existing parking lot along Calle Tampico and completion of the parking lot south of the Civic Center along Avenida La Fonda. During the City Council meeting of March 18, 1997, the Council acknowledged the need for professional design services, and authorized staff to seek proposals from qualified consultants to prepare a master plan and construction documents for the development of the Civic Center Campus. On April 7, 1998, the City Council awarded a contract to the firm of TKD Associates, Inc. (TKD) of Palm Springs, to prepare an updated master plan for the Civic Center Campus. T:\PWDEPT\C0UNC1L\1 999\990629b.wpd On June 17, 1998, staff met with TKD Associates' representatives to review potential improvements and amenities appropriate for the Civic Center Campus. As a result of the comments generated at the June 17th meeting, another meeting with the City Manager, Assistant City Manager, City Clerk, and the Department Directors was conducted on September 23, 1998, to review overall project concepts. During the Study Session of November 17, 1998, the City Council reviewed potential conceptual ideas, and provided staff and the Consultant (TKD) with comments to be incorporated into the master plan. Based upon these comments from the City Council, TKD presented proposed conceptual plans, and received additional comments and direction from staff at two staff meetings which were attended by the City Manager, Assistant City Manager, the City Clerk and the Department Directors on February 4, 1999 and April 16, 1999. Staff is now seeking final direction from the City Council in order to finalize the master plan for the Civic Center Campus. Two design concepts are proposed for the City Council's consideration. Each concept has been prepared with an effort to address all of the comments made during the City Council Study Session on November 17, 1998 and subsequent staff meetings on February 4, 1999 and April 16, 1999. In selecting one of the two master plan concepts, the City Council will be establishing the building pad and amenity locations. Phase 1 can then be completed, which will provide grading, irrigation, and landscaping as well as walkways, a sculpture, and a history plaza with the funding that was budgeted during the Fiscal Year 1997/98 CIP. This will provide improvements in the near future that will improve the aesthetics of the campus, provide a walkway connection between the City Hall and the Senior Center and provide landscaping for dust control. In the future, when other funding sources are identified, Phases 2 and 3 may proceed with minimal impacts to the improvements that are completed during Phase 1 . Concept I and Concept II provide the exact same amenities. Concept I provides a lake which is located in the approximate center of the Civic Center Campus site, a future library pad location on the northwest corner of the Civic Center Campus, parking lot expansion on the west side of the Civic Center Campus, a future pad for a golf museum on the west side of the existing public parking lot fronting Calle Tampico, and a future expansion of City Hall from the west side of the existing building (City Manager and City Council's office) westwardly into the Civic Center site. ,J T:\PW DEPT\COUNCIL\1999\990629b.wpd U 0 t_' Concept II provides a lake which is located in the approximate center of the Civic Center Campus site, a future pad for a proposed golf museum on the northwest corner of the Civic Center Campus, expansion of the parking lot on the west side of the Civic Center Campus, a future pad for a library directly west of the existing public parking lot fronting Calle Tampico, the construction of a library parking lot fronting Calle Tampico west of the existing public parking lot for the Civic Center, the proposed expansion of City Hall from the west side of the existing building (City Manager and City Council's office) westwardly towards the Civic Center Campus site, and the construction of a future parking lot west of the existing employee parking lot, south of City Hall. Upon receiving comments from the City Council, City staff will work with the consultant in order to finalize the master plan and prepare Plans and Specifications for the construction of Phase 1 which will include the installation of irrigation, grading, landscaping, walkways, and a sculpture to be identified by the City Council in the near future. Respectfully submitted, Chris A. Vogt Public Works Director/City Engineer Approved for Submission by: P Thomas P. Genovese City Manager Attachment: 1 . Design Concepts I & II for Civic Center Campus (Booklet) 003 T:\PWDEPT\COUNCIL\I 999\990629b. 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